Naiketing Nix Stuuy

ICICI Piuuential (Seivice baseu company)

12/2/2011






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Marketing Mix: ICICI Prudential

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one oI the Ioremost
Iinancial services companies oI India and Prudential plc, one oI the leading international Iinancial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the Iirst private
sector liIe insurance companies to begin operations in December 2000 aIter receiving approval Irom
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential LiIe's capital stands at Rs. 4,780 crores (as oI September 30, 2010) with ICICI Bank and
Prudential plc holding 74 and 26 stake respectively. For the period April 1, 2010 to September 30,
2010, the company garnered Rs 7,267 crores oI total premiums and has underwritten over 10 million
policies since inception. The company has a network oI over 1,500 oIIices and over 1, 60,000 advisors, as
on September 30, 2010. The company has assets held over Rs. 65,000 crores as on September 30, 2010.
For the past nine years, ICICI Prudential LiIe has maintained a wide range oI LiIe Insurance products that
meet the needs oI the Indian customer at every step in liIe.
ICICI Prudential LiIe recently completed 10 years on the Indian Insurance scape on 12th December 2010.

Since the liberalization oI Indian Insurance sector, ICICI Prudential LiIe Insurance has been one oI the
earliest private players. Since the time, ICICI Pru LiIe has been the leader in terms oI market share as
indicated by the IRDA (Insurance Regulatory and Development Authority, the regulator Ior Indian
Insurance Industry) at its website.
The company has 6 banc assurance partners having tie-ups with ICICI Bank, Jalgaon Peoples Co-op
Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka Nagrik
Sahakari Bank, Bhandara Urban Co-operative Bank.
7 P`s of marketing mix are as following.
Product and services: ICICI Prudential's liIe insurance products may be loosely categorized under Iour
Iorms- LiIe Plans (Iurther categorized into Term Plans and Wealth Plans), Child Plans, Retirement Plans
and Health Plans. But in recently Ior expansion ICICI prudential is also concentrating on rural plans.
Initially planes oIIered by ICICI prudential were as Iollowing
Life planes: - LiIe planes are Iurther classiIied in two categories.
Term Planes: - Term insurance is the simplest and most Iundamental insurance product. Term insurance
plans are designed to ensure that in the event oI the policyholder`s death, the Iamily gets the sum assured
(the cover amount).
Wealth planes: - Wealth insurance ensures that you receive a lumpsum amount oI money at the maturity
oI the Policy. In the unIortunate event oI death during the term oI the policy, your Iamily receives lump
sum amount, called the Sum Assured. Thus it combines the beneIits oI protection and saving in a single
instrument.

Term planes Of ICICI prudential: -
1. ICICI pru icare
2. ICICI pru pure protect
3. ICICI pru liIe guard
4. ICICI pru home assure
Wealth planes of ICICI prudential: - Initially ICICI was not operating in ULIP wealth planes but aIter
seeing the demand in this sector company spread its wing in this particular Iield.
1. ICICI Pru LiIeStage Wealth II
2. ICICI Pru LiIeTime Premier
3. ICICI Pru LiIeLink Wealth SP
4. ICICI Pru Pinnacle Super
5. ICICI Pru Elite LiIe
6. ICICI Pru Elite Wealth
Traditional wealth planes oI ICICI are as Iollowed
1. ICICI Pru Future Secure
2. ICICI Pru Guaranteed Savings Insurance Plan
3. ICICI Pru iAssure Single Premium
4. ICICI Pru Whole LiIe
5. ICICI Pru Save'n'Protect
6. ICICI Pru CashBak
ducation Insurance Plans:
1. SmartKid Regular Premium: It is a tradional plan where Iunds are provided Ior the needs oI the child
in the Iuture.
2. SmartKid New Unit-linked Regular & Single Premium: The policy is made in such a way that the
child receives money at a stage, Ior his educational needs.
In this particular sector ICICI Pru didn`t introduced any new oIIering Irom some long time.
Health Insurance Plans:
Diabetes Plans: It is a long term insurance policy created Ior individuals with Type II diabetes and pre-
diabetes. It oIIers long term (upto 20 years) control over diabetes through a specially designed Wellness
Programme including regular health checkups and a Diabetes Coach to Iacilitate diabetes management. It
also provides you coverage against seven major critical illnesses.
Cancer Plans: It provide a regular premium plan that helps you with a cash beneIit on the diagnosis as
well as at diIIerent stages in the treatment oI various cancer conditions.
1. Comprehensive Health coverage: provides comprehensive hospitalization cover and
reimburses all other medical expenses by building a health Iund.
2. Critical Illness Plan: It is a 360-degree product that will provide long-term coverage against 35
critical illnesses, total and permanent disability, and death.
. Hospitalization Plan: A health insurance policy that provides assured insurability till age 75
years, assured coverage Ior accepted pre-existing illnesses aIter 2 years and an assured price Ior
3 years. Also there is another hospital care plan where there is a Iixed beneIit plan covering
various stages oI treatment hospitalisation, ICU, procedures & recuperating allowance. It covers
a range oI medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20
years.

Retirement Plans:
1. Forever Life: A traditional retirement product that oIIers guaranteed returns Ior the Iirst 4
years.
2. Immediate Annuity: A single premium annuity product that assures an income Ior liIe at the
time oI your retirement. It has the beneIit oI 5 payout options.
. LifeStage Pension: A regular premium unit linked pension plan that provides you with a
unique liIecycle-based strategy that continuously re-distributes your money across various asset
classes based on your age and risk proIile.
4. Premier Life Pension: It is a unit-linked pension policy with a limited premium paying
option Ior preIerred customers.
5. Lifetime Super Pension: It is a regular premium unit linked pension plan that helps one
accumulate over the long term and oIIers 5 annuity options (liIe annuity, liIe annuity with return
oI purchase price, joint liIe last survivor annuity with return oI purchase price, liIe annuity
guaranteed Ior 5, 10 and 15 years & Ior liIe thereaIter, joint liIe, last survivor annuity without
return oI purchase pric5. at the time oI retirement.
6. LifeLink Super Pension: A single premium unit linked pension plan.

Rural Plans: In this particular sector ICICI prudential`s entry is comparative new. Rural sector
oI Indian market consist a very potential population Ior insurance sector and hence ICICI
prudential changed its promotion strategy according to that also.
Suraksha & Suraksha Kavach: It is a rural plans which oIIer beneIits like liIe Cover, low and
aIIordable premium
Micro Insurance Sarv 1ana Suraksha: Sarv Jana Suraksha is a plan to provide protection and
security to rural population at a very aIIordable cost. The Iamily members are protected in this
plan in case oI death oI the policyholder.
The new products launched by ICICI prudential are as Iollowed
1. Anmol Nivesh: For tea tribes in Assam.
2. Health saver



2. Price:
Pricing is very important in liIe insurance as policyholders are attracted towards it more oIten.
ICICI Prudential has some unique policies which is diIIerent Irom other companies.
.g. ICICI Pru Pinnacle Super at a glance

Modes oI Premium
Payment
Yearly
Premium Payment Term
(PPT)
Premium payment option Premium payment term
One pay 1 year
Five pay 5 years
Policy Term 10 years (Iixed)
Minimum Sum Assured
Ior age at entry 45 years
(125 oI premium Ior one pay) and (10 annual premium Ior
Iive pay)
Minimum Sum Assured
Ior age at entry ~ 45
years
(125 oI premium Ior one pay) and (7 annual premium Ior
Iive pay)
Maximum Sum Assured
Ior age at entry 60 years
(500 oI premium Ior one pay) and (As per maximum Sum
Assured multiples)
Maximum Sum Assured
Ior age at entry ~ 60
years
(125 oI premium Ior one pay) and (As per maximum Sum
Assured multiples)
Minimum age at entry 8 years
Maximum age at entry
(70 years in case oI one pay) and (65 years in case oI Iive
pay)
Minimum age at maturity 18 years
Maximum age at maturity
(80 years in case oI one pay) and (75 years in case oI Iive
pay)
Tax BeneIits
Premium and any beneIit amount received under this policy
will be eligible Ior the tax beneIit as per the prevailing
Income Tax laws



. Place:
Mostly LiIe Insurance companies have oIIices at main locations in cities and towns. But most oI
the customers buy insurance policies with the help oI agents. ThereIore place is important but
other than place what is more important is wide distribution oI policies through banks directly. It
is known as Banc assurance. Banc assurance is the term used to describe the partnership or
relationship between a bank and an insurance company whereby the insurance company uses the
bank sales channel in order to sell insurance products. Bank staII and tellers, rather than an
insurance salesperson, become the point oI sale/point oI contact Ior the customer. Bank staII are
advised and supported by the insurance company through product inIormation, marketing
campaigns and sales training. Both the bank and insurance company share the commission.
Insurance policies are processed and administered by the insurance company. By selling
insurance policies bank earns a revenue stream apart Irom interest. It is called as Iee-based
income. This income is purely risk Iree Ior the bank since the bank simply plays the role oI an
intermediary Ior sourcing business to the insurance company.So, ICICI Bank uses bancassurance
to distribute policies to its customers. ICICI Prudential LiIe has one oI the largest distribution
networks amongst private liIe insurers in India. It has a strong presence across India with 1,960
branches (including 1,096 micro-oIIices) and an advisor base oI over 230,000 (as on December
31, 2009).
ICICI Prudential has 6 banc assurance partners having tie-ups with ICICI Bank, Jalgaon Peoples
Co-op Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank,
Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank.
Mostly all private liIe insurance companies are using bancassurance model. Other than this all
ICICI Prudential LiIe Insurance oIIices are at signiIicant locations.

4.Promotion:
Over the last Iew months, ICICI Prudential has been advertising in outdoor, TV and press. The
company launched a corporate television campaign ' Saat Phere ' which took the emotions and
thoughts oI initial Sindoor corporate Iilm a Iew steps Iurther.
The Iilm highlights the strength oI promises that a husband makes to his wiIe, through the
depiction oI everyday situations, and then goes on to emphasise that ICICI Prudential will stand
by the husband to help him IulIill all these promises. The TV campaign has also been extended to
outdoor.
The company has also undertaken press and internet campaigns to inIorm customers about
beneIits oI some oI its products, particularly retirement solutions, through the Chintamani
campaign.
AIter the hugely successIul Chintamani (retirement) and Saat Phere (corporate) campaigns, ICICI
Prudential LiIe Insurance also introduced some innovations in the category, such as: having a tax
planner by the name oI Chintamani on radio, who would answer consumers queries about the role
oI insurance in Iinancial planning.
Other initiatives included tie-up with the Dabbawalla Organisation in Mumbai Ior a direct
marketing exercise, to talk to the customer through a non-cluttered route, and thereby have a
higher impact. The direct mailer was about ICICI Prudentials retirement solutions and the tax
beneIits that one can avail oI by investing in any oI these. About 100,000 direct mailers were
attached to the dabbas, in areas such as Churchgate, Bandra and Andheri where there are mostly
oIIice-goers.
For targeting rural market although ICICI did not promote its advertisement only speciIic to rural
people. But it hired Amitabh Bacchan as its brand ambassador. Amitabh bacchan is a well known
Iace in rural sector as well. So by doing this actually they targeted nation as a whole.
In addition to advertising, the company has also initiated several activities to raise consumer
awareness about liIe insurance and ICICI Prudential. It includes seminars ICICI Prudential
regularly holds consumer awareness meets on the need Ior retirement planning in diIIerent cities
such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore. These are very well
attended and have contributed signiIicantly towards increasing awareness about the category and
the company. Apart Irom this, it also entered into alliances with telecom companies, as well as
companies like BPCL and Dominos
5.People:
People are the main assets in any organization. They are very precious in the service sector.
ThereIore, ICICI Prudential has good number oI talented people in their organization. The people
strategy oI ICICI Prudential is To build a committed team with a culture oI innovation, learning
and growth. The Human Resource Function at ICICI Prudential drives the people strategy oI the
business. With its initial Iocus on operational excellence to deliver beneIits and services to staII
members, HR is now committed to building capability through state oI the art processes. A robust
perIormance management system, compensation system and a segmented training architecture
enable it to deliver value to the organization. The company provides an enabling environment to
Ioster growth and learning Ior their employees.
Every member oI the ICICI Prudential team is committed to 5 core values:
Integrity
Customer First
Boundary less
Ownership
Passion
These values shine Iorth in all we do, and have become the keystones oI our success.
6. Process:
The client approaches the insurer (ICICI Prudential) through an agent with a proposal containing
his personal details, income details, medical history, products (the product describes the Ieatures
provided by the insurer like maturity bonus, claims allowed etc. These Ieatures vary Irom product
to product), sum assured (the amount Ior which the client is covered), term (number oI years Ior
which the client is to be covered) and premium amount (installment amount to be paid by the
client to the insurer). The agent who brings this proposal is termed as a base/servicing agent Ior
the proposal.
The proposal will go through various stages oI approval and risk evaluation by the Central
Processing Centre oI the ICICI Prudential. Upon Iinal approval, a legal agreement, termed as
policy, between the insurer and the client is prepared whereby the insurer covers the client Ior the
sum assured. The client is also entitled Ior some additional beneIits, iI any, depending on the
Ieatures oI the product taken in the policy. The base agent gets a commission Ior the policy.
The client pays a premium at regular intervals. These subsequent premiums are termed as renewal
premiums. The base agent gets a commission on the renewal premium also.
The client may come back with some alterations to the policy viz. increase/decrease in sum
assured, increase/decrease oI the term oI policy etc. The insurer will make the relevant changes to
the policy and will issue endorsements stating the alterations made and their eIIect on the policy.
During the term oI the policy, the client can submit claims. The insurer makes payment against
the claim aIter veriIication. Depending on the type oI claim the policy is either terminated or is
kept in Iorce.
At the end oI the term oI the policy, the client gets the sum assured as part oI the maturity beneIit
under liIe insurance policies. In addition to this the client will get the maturity bonus and any
other beneIits depending on the product Ieature.
7. Physical Evidence:
Physical evidence includes Iacility design, equipment signage, employee dress, tangibles, reports
and statements.
Signage:
Signage personiIies the insurance company. It gives an identity by which users recognize the
company. A signage depicts the company`s philosophy and policy. Following are some oI the
examples
Tangibles:
Insurance companies give their customers and agents various tangible items like pen, letter pad,
calendars. Such things try to reduce the intangibility characteristics oI this industry. Example: Pen
oI ICICI Prudential
Statements:
The statements are punch line which brieIly depicts the vision and attitude oI a insurance
company towards its users/potentials. It also indicates their business motive. Example: ICICI
Prudential have a punch line called 'We cover you at every step oI LiIe and also the
advertisement oI Jeete Rahowas hit among the TV viewers.

References:-
www.icicipruliIe.com
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