Marketing Strategies Used By Lic Commerce Essay

Marketing Strategies Used By Lic Commerce Essay manner Insurance Corporation of India was established in 1956. It comprises of 8 zonal offices and 101 divisional offices. LIC is fully government-owned. It provides individual indemnity, gathering damages and pension plans. The subsidiaries of life insurance policy corporation of India are LIC International, LIC Nepal, LIC Lanka, LIC Housing Finance.MARKETING STRATEGIES USED BY LICLIC followed these strategiesIt got the original mover advantage.There was intense product differentiation.Market segmentation was d ace intensely to include people of almost all ages.LIC took help of advertisements to promote its brand value.They have used creative slogans so that they back end hit the customers mindset.Attacked customers emotionally with these slogans.It avoids either interference w.r.t communication to the customers and reduces the number of advertisement agencies so that the correct message reaches all the customers so that the mai n objectives are fulfilled.SWOT ANALYSIS OF LICStrengthIt ranks first amongst the insurance companies.After sales service, long term plans hold the most importance.Provides employment to 1,15,000 peopleHas around 2000 branches across India and 10,00,000 agents.Weaknesssince it is government-owned, in that locationfore ther is very fiddling innovation.gets affected by bureaucracy and red tape.it becomes difficult to manage the huge workforce in the times of economic crises.OpportunityEffective service can be provided to the urban sector with more use of technology.It can involve good brand proportion.There has to be proper implementation of the government schemes.ThreatsIt poses curse since the government policies keep changing.The entry of insurance sector.BCG MATRIX OF LICMarketGrowthhighStarJeevan anandMoney plus form _or_ system of governmentPension plusQuestion mark untested Bima NiveshNew Jeevan ShreelowCash cowGroup SchemeHealth PlansDogAmulya Jeevanl o wh i g hR e l a t i v e M a r k e t S h a r eDOG- it means low share of low market growth with no cash generation at all. It might even authorise to break-even.Eg- Amulya JeevanCASH COW- it means high share of low market growth, there is economic profit and even funds former(a) brands.Eg- Group schemes and health schemes. query MARK- it means low share of high market growth and it consume resources.Eg- New bima nivesh and new jeevan shree.STAR-there is high market share and high market growth, there is high cost and low profit and it generates high profit.Eg- Jeevan anand, pension plans and money plus policy.PORTERS FIVE FORCES OF LICBARGAINING source OF CUSTOMERSTHREAT OF SUBSTITUTE PRODUCTSBARGAINING POWER OF SUPPLIERSCOMPETITIVE RIVALRY WITHIN AN INDUSTRYTHREAT OF NEW ENTRANTSCUSTOMER SATISFACTIONCustomer satisfaction refers to the phenomenon which shows how much the customers are satisfied the product or the services provided by the agencies.CUSTOMER SATISFACTION OF LIC It encourage face-to-face dealing with the customers.It includes responding to the messages promptly and keeping all the clients well-informed.It is readily approachable and amicable in this clod competition with the different insurance pseuds.The customer service policy must be clearly stated and well-defined.MARKETING ENVIRONMENTMacro-environment The company and all the other actors operate in a large macro environment that shapes the opportunities and pose threat to the company. Major forces are Demographic-since literacy and education increases employability, higher earning jobs also lick the change in perception about the need for insurance.Economic-Inflation rate High inflation reduces the insurance business particularly life insurance quota, because the really value of money decreases with with increase in inflation rate.Technological more innovative channels like bank, post office, ATMs should be introduced.political and legal-IRDA act, 1999 bloom allowed for 26% for an equity participation in the insurance sector.cultural-The work culture in the organisation was sloppy and strong trade union do it difficult for managers so that the job is done.Micro-environment It consist of five componentsOrganising Internal Environment Its several departments and management levelsMarketing Channel Firm Supplier and marketing intermediaries inwardly itIt consists of 5 types of markets in which organization can sell consumer, producer, reseller, government and the international marketCompetitors Basically the other insurance companies like, Tata AIG, Bajaj Alliance, etc.All types of publics that have an material interest in the organization ability to achieve its goal.CONSUMER BUYING BEHAVIORFirst, let us know what influences consumer purchase behaviour.They are-Cultural factors societal Factors, andpersonal factorsCultural factors-LIC is a trusted brand in India and is totally owned by the government.-There can be unnatural events like death, sudden crisis, etc.Social Factors-LIC focuses on both the reference group and family status of the people.-In joint families, there is less stress on buying behaviour.Personal factors-LIC has different insurance plans fit in to the needs of the people concerning their age, lifestyle, values, personality and wealth.Key psychological process-LIC has always motivated the customers by its influential insurance plans and its offers. People has a perception of buying LIC because it is government-owned and is considered number one in paying claims.SEGMENTATION, POSITIONING AND TARGETTINGSegmentationLIC in India was divided into 2 basic segments individuals and corporate people. The first segment comprised of individual customers. It is go on divided into four sub-segments protection, enthronisation, savings and pension.Protection products gives only protection to the different customers from risk. These dont provide any savings facility to the policyholder.Investment products offer long-term investment growth and insurance cover.Savings products like endowment and money back policies provide both protection and investment benefits.Pension policies are products offered to the customers as income during their historic period of retirement after they quit their respective jobs.The corporate segment was divided into three sub-segments protection, statutory savings and pension.Down the line, LIC catered to both individual and corporate segments. single insurance policies include Endowment Policies, Money Back Policies, Term Assurance Plans, Periodic Money Back Plans and Joint Life Plans. The corporate policies include group insurance schemes such as group gratuity schemes, group term insurance schemes, group savings linked insurance scheme and group top encashment schemes.TargettingTargeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy.LIC mainly targets children who are basi cally into schooling, people in earning periods and senior citizens who have got retired from their respective services. It not only targets the urban people but also the hoidenish people.PositioningPositioning is a marketing strategy so that people can form a mental image of the product in their minds (relative to other products).LIC positions itself as the most sort after insurance company providing financial solutions to the people. It is very popular among the people because it is government owned.BRAND EQUITYLIC has done a good job in reinforcing its brand image of the folded hands to the people. It is readily trusted by the people as it is one of the most oldest insurance player in the country. Its tagline ZINDAGI KE SAATH BHI ZINDAGI KI BAAD BHI has gained popularism not only in urban but also in rural areas.The slogan of LIC is Yogakshemam Vahamyaham which translates from Sanskrit to Your welfare is our responsibility. The literal translation from Sanskrit to face is I car ry what you require. The slogan, written in Devanagiri script, is found below the hands holding the lamp.PRODUCT LIFE CYCLEQUESTIONNAIREMARKETING SURVEYPERSONAL cultivationNAME ..ADDRESS ..CITY ..STATE PINCODE ..GENDER MOBILE NO. MAIL ID ..Please tick () in the boxes, as relevantWhat is your major reason for opting LIC as an investment policy?InvestmentInsuranceInvestment and insuranceIf others, interest specifyDoes anyone else in your family have any kind of policy?YesNoIf yes, please provide the details of the LIC policy your family is currently using.TermMaturity year.PremiumInsurance coverage amountWhy did you opt for this particular LIC policy?Have you ever been hospitalized in the last 3 years?YesNoIf yes, what was the reason for getting hospitalized? Also, please state the expenses that you incurred during the hospitalization.What is the current amount of premium per month that you are paying in this policy?less(prenominal) than Rs 500Rs 500 Rs 1000Rs 1001 Rs 2000Rs 20 01 Rs 4000More than Rs 4000Have you ever bought an insurance policy from any one of the following companies?TATA AIG life insuranceLIC of IndiaMetlifeBirla Sunlife InsuranceIf yes, then please mention the type of policy that you boughtDo you currently own a life insurance policy?YesNoIf yes, which of the following policy is it?Term insurancePermanent life insuranceWhole life insuranceUniversal life insuranceLimited pay life insuranceEndowmentsAccidental deathOthersHave you made a claim on your existing insurance policy? If yes, please mention the type and amount of claim?YesNoType of claim.Amount of claim..How much is your current insurance cover per month?Less than Rs 10000Rs 10001 Rs 25000Rs 25001 Rs 50000More than Rs 50000Are you satisfied with your insurance policy?YesNoAre you looking for a better LIC policy?YesNoTHANK YOU FOR YOUR semiprecious TIME AND PATIENCE.