Life Insurance Marketing in India –A The Changing Advertising & Promotion
Norms
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IMPLICATIONS OF THE ‘NEW-AGE'MARKETING INITIATIVES Contd..
Some analysts pointed out that such development was merely an indicator of
the difficulties foreign firms could face in India. Most of LIC's sales came
from the small and rural sectors, which actually constitute the largest
untapped insurance market in India. However, the private insurers failed to
tap the rural markets due to their limited reach. They focused their
marketing efforts only in limited metropolitan areas. With LIC's brand being
very firmly etched in the minds of the Indians, private insurers definitely
seemed to have a tough battle ahead.
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However, it is true that the market share of private
players has increased from 0.5% in 2001 to 7% in October 2002, which has
reduced LIC's market share to 93%. As marketing and technical
superiority were expected to be the decisive factors for success in the
Indian insurance sector in the future, the new players stood a good
chance. With product-specific advertisement beginning to catch up in
mid-2002, private insurers who planned to launch innovative products
were hoping for the best. |
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QUESTIONS FOR DISCUSSION:
1. Analyze the growth of the Indian insurance industry since
Independence, and discuss whether LIC had not tapped the enormous potential of
the Indian market adequately before the entry of private players.
2. Critically comment on the advertising and promotional strategies adopted by
the private insurance companies in India. With most of the companies focusing on
‘emotions and trust'as the bottomline point of their campaigns, do you think
they would be able to make a strong influence on the Indian consumers and gain
their confidence and trust? Justify your stand.
3. As part of a team responsible for marketing life insurance products in the
newly opened Indian insurance industry, what kind of advertising and promotional
strategies would you follow to increase market share and stand out of the crowd?
EXHIBIT I ADVERTISMENT CODE BY IRDA
ADDITIONAL READINGS & REFERENCES
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