PEST Analysis, SWOT Analysis, STP, 4 Ps,

1. PREPARED BY TEAM 1
Aarav Rastogi PGFA1601
Abhijeet Singh PGFA1602
Aseem Bansal PGFA1631
Ayushi Pathak PGFA1636
Diksha PGFA1645

2. 2

3. 3
 Out of 53 insurance companies
• 24 are in life insurance
• 29 are in non life insurance
 LIC - sole public sector company
 Recorded new premium income of RS. 1.38 trillion during April 2015 to March 2016
 Growth rate – 22.5%
 Biggest in the world with about 360 million policies
 Expected to increase at a COMPOUND ANNUAL GROWTH RATE of 12-15% over the
next 5 years
LIFE INSURANCE INDUSTRY

4. SPONSORS OF THE COMPANY
48%
26%
26%
Share
IDBI Bank
Federal Bank
Ageas
4

5.  Commenced it’s operations in 2008
 Achieved breakeven in 2013
 Offers a diverse range of
• Wealth Management
• Protection solutions
• Retirement solutions
COMPANY DESCRIPTION
5

6. 17-Dec-16 6

7. 7
MARKET SHARE

8. 8
• Government policies
• Monetary Policies
• FDI limits
POLITICAL
FACTORS
• Inflation Rate
• Interest Rate
• Rising Living Standards
ECONOMIC
FACTORS
PEST ANALYSIS

9. 9
• Large population
• Change in Lifestyle
• Literacy Rate
SOCIO-CULTURAL
FACTORS
• Process Automation
• Maintenance of Databases
• Internet Driven Information Era
• E-Banking
TECHNOLOGICAL
FACTORS
PEST ANALYSIS

10. 10
TARGETED SEGMENT CUSTOMER NEEDS CORRESPONDING FEATURES
TIER 1 AND TIER 2 CITIES Get in touch fast
Within customer reach
NUMBER OF AGENTS- 10000+
NUMBER OF OFFICIES- 2000+
FAMILY Policies for everyone in the
family
CHILDSURANCE
LIFESURANCE
SOCIAL CLASS Yearly premium for insurance
policies
PREMIUM STARTS AT RS.
25000/YEAR
USER STATUS Instant renewal at the time of
maturity
POLICY RENEWAL –
OFFLINE/ONLINE
PRODUCT REVIEW

11. 11
COMPETITOR
NAME
FEATURES PRICES
LIC MATURITY AGE UPTO 75 YEARS
MONTHLY PREMIUM ACCEPTED
RS. 250/ MONTH (70 YEARS)
ICICI MATURITY AGE 75 YEARS
ANNUAL PREMIUM ACCEPTED
RS. 2000/ YEAR = POLICY
TERM( 10 TO 30 YEARS)
MAX LIFE MATURITY AGE 70 YEARS
PREMIUM DEPENDS ON POLICY TERM
RS. 8050/ YEAR = POLICY
TERM( 10 TO 35 YEARS)
BAJAJ ALLIANZ MATURITY AGE 70 YEARS
ANNUAL/HALF
YEARLY/QUARTERLY/MONTHLY PREMIUM
ACCEPTED
RS. 3000/YEAR
( 10 TO 30 YEARS)
COMPETITIVE REVIEW

12. SWOT ANALYSIS
STRENGTHS
1. Products( Incomesureance plan)
2. Existing distribution and sales networks
3. Skilled manpower with in depth
knowledge
4. Will open 100 more branches
WEAKNESS
1. Brand awareness
2. Promotions
OPPORTUNITIES
1. Insurable population
2. Fast track development
3. International companies help in building
world class expertise in local market
THREATS
1. Trust on big public sector insurance
company. Example: LIC
2. Very high competition
3. Increasing costs
4. Government regulations
12

13.  To continually strive to enhance customer experience through innovative product
offerings, dedicated relationship management and superior service delivery
while striving to interact with our customers in the most convenient and cost effective
manner
 To be transparent in the way we deal with our customers and to act with integrity
 To invest in and build quality human capital in order to achieve our mission
MISSION OF THE COMPANY
13

14. 14
 Equip itself with necessary tools to deliver increased operational and cost efficiency
through IT development
 Increase transparency through crystal clear communication to our partners and
stakeholders
 Provide value to customers
 Balance the interest of the customers, partners, employees, shareholders and the
community at large
 Be financially strong, operationally robust and having clarity in claims
OBJECTIVES OF THE COMPANY

15. 15
 Updating the existing Life Insurance Products as per current market situation
 Building Trust among the customers by providing them efficient services
 Feedback and Reviews to be continuously monitored and worked upon if needed
HOW WILL THEY REACH THEIR GOALS?

16. ANSOFF’S
MATRIX
Secured
Incomesurance
Insurance Plan

17. 17
 Market penetration –
o Childsurance
o Lifesurance Plan
 Product Development –
o Secured Incomesureance Plan 6 Pay
ANSOFF’S MATRIX

18. 18
STP ANALYSIS OF CHILDSURANCE
PLAN

19. 19
SEGMENTATION OF CHILDSURANCE
GEOGRAPHIC
• Region- North India
• Population Size-50,00,00,000+
• City Size- Tier 1 major cities,
Tier 2 major cities
• Density- Urban and Sub urban
DEMOGRAPHIC
• Parents with Age of less than
50 years
• Children less than 17 Years
• People of Income Group-
Rs.30,000-100,000 per month

20. 20
SEGMENTATION OF CHILDSURANCE
PSYCHOGRAPHI
C
• Social Class- Working Class,
Middle Class, Upper Class
• Parents concerned about their
children
BEHAVIORAL
• Protection, Investment seeker
• First time and regular user

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TARGETING

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“At 18, Your Angry Child
won’t look this cute…Buy
Childsurance the Right Child
Plan”
POSITIONING

23. 23
 Both Male and Females are Respondent
 Age Group of 18-30 years were more aware and interested in this plan
 Awareness about the product was More by Friends and Family members
 Tax benefits, Good Returns, Hassle-free policy are benefits of this plan
 Most of the people were prompted to buy this policy due to-
• Brand Image
• Convinced by Marketing Guys
• Past record of performance
CONSUMER BEHAVIOUR

24. 24
PRODUCT MIX

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 BRAND NAME: -
• IDBI FEDERAL LIFE INSURANCE COMPANY LIMITED
• Joint Venture of IDBI Bank, Federal Bank and Ageas
 FEATURES:-
• Bonus to boost your savings
• Future Premiums waived off
• Plan continues till maturity even after death
• Paid off Value
• Free Lookup Period of 30 days
ACTUAL PRODUCT

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 DESIGN:-
• Different Needs –Different Products
• Different Customers – Different Payment Plans
 PACKAGING:-
• No physical or outer packing
• Various benefits offered at different prices as a package
 QUALITY LEVEL:-
• License taken from IRDA to operate in India
ACTUAL PRODUCT

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 AFTER SALE SERVICES:-
• Maturity amount – Received within 2-3 days
• Amount after surrendering the policy – Received within a week after proper
verification
• Amount at the time of Death – Received within a week after applying for claim
 WARRANTY:-
• No products offered
• Guarantee given for bonus in some products
AUGMENTED PRODUCT

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 PRODUCT SUPPORT:-
• Toll Free Number Provided : 1800 209 0502
• Complaints can be registered on www.idbifederal.com
• Nearest IDBI Federal Life Insurance Office can be reached for personal interaction
 DELIVERY AND CREDIT:-
• Product or Policy is issued within a week after verification
AUGMENTED PRODUCT

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Types of Products
ENDOWNMENT
PLAN
Childsurance Savings
Insurance Plan
Lifesurance Savings
Insurance Plan
Secured
Incomesureance Plan
Incomesureance
Guaranteed Money back
Insurance Plan - 6th pay
ULIP PLAN
Wealthsurance Growth
Insurance Plan
Wealthsurance Future
Star Plan

30. PRODUCTS DECISIONS
Whole
Lifesurance
Plan
Incomesureance
Guaranteed Moneyback
Plan 6th pay
Discontinued
Introduced
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Incomesurance Guaranteed Money Back Insurance Plan(6 pay) –
INTRODUCTION STAGE
Childsurance Saving Protection Plan – GROWTH STAGE
Lifesurance Saving Insurance Plan – MATURITY STAGE
Whole Lifesurance Saving Insurance Plan – DECLINING STAGE
PRODUCT LIFE CYCLE-

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 Incomesureance Guaranteed Money Back Insurance Plan(6 pay) – Rs.35,000/YEAR
TO Rs.20,00,000/YEAR
 Childsurance Saving Protection Plan – RS.25000/YEAR
 Lifesurance Saving Insurance Plan – RS.25000/YEAR
PRODUCT LINE PRICING

34. PRICING STRATEGIES
Skimming
Geographical
Pricing
Rs 25,000 -zonal
office(Delhi-C.P)
Rs 20,000 -metro cities
Below Rs 20,000- other cities
Rs 25,000 p.a
minimum
premium
Value Based
Pricing
Rs 35,000 p.a
premium for
Incomesurance
product
34

35. 35
IDBI
FEDERAL
INSURANCE
AGENTS
CUSTOMER
IDBI DISTRIBUTION CHANNELS
IDBI CUSTOMER ONLINE
OFFLIN
E

36. 36
CHANNEL BEHAVIOUR-
• No channel conflict
VERTICAL MARKETING SYSTEMS-
• Head office, Insurance agents act as unified system
• Corporate VMS is followed
CHANNEL BEHAVIOUR AND
ORGANISATION

37. CORPORATE VMS
ZONAL
HEAD
REGIONAL HEAD
AREA HEAD
SALES HEAD

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 ANALYSING CUSTOMER NEEDS
• Insurance agents – Over 10,000
• Policy Purchase – Online and Offline
• Policy delivery – Within 3 days with verification
• Amount reimbursed – Within a week
• Query handling – Toll Free Number, Branch Office, Insurance Agents
• Product options – More than 6 products at disposal
• Product Pricing – Premium stating at Rs. 25000/-
• Returns on Policy – More than its competitors
CHANNEL DESIGN DECISIONS

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 SETTING CHANNEL OBJECTIVES
• Same channel for all products
 IDENTIFYING MAJOR ALTERNATIVES
• Type of Intermediary – Agents
• Number of intermediaries – One
• Responsibility of Channel Members :–
 Company – Provide information and back end support
 Insurance Agents – Provide company with clients
CHANNEL DESIGN
DECISIONS

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 EVALUATING CHANNEL ALTERNATIVES
• No channel alternatives
CHANNEL DESIGN DECISIONS

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 SELECTING CHANNEL MEMBERS
• Hiring marketing fresher from colleges
• Trained sales people
 MANAGING AND MOTIVATING CHANNEL MEMBERS
• Bonus
• Rewards & Certifications
 EVALUATING CHANNEL MEMBERS
• Monthly performance checking
• Comparison among members in a region
CHANNEL MANAGEMENT DECISIONS

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 Advertising – Hoardings, Newspapers, Television Advertisements, Canopies
 Personal Selling – Insurance Agents
 Public Relations – Contests and Competitions in schools
 Direct Marketing – Email, Telephone, Internet
PROMOTION MIX

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PROMOTION
BY
CELEBRITIE
S

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DESIGNING A MESSAGE

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Facebook page

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 Awareness – Advertisements
 Knowledge – Internet and Insurance Agents
 Liking – What policy offers
 Preference – How policy is better than other company offering
 Conviction – Believing in IDBI Federal Life Insurance
 Purchase – Policy is purchased
BUYER READINESS STAGE

48. 48
Word of Mouth Influence – Referral system
Buzz Marketing - The features offered by the company helps in creating
buzz
PERSONAL COMMUNICATION CHANNELS

49. 49
 Advertising and Marketing Budget is around Rs. 20 crores
Expected sales – Rs. 1200 crores
 Points considered while making Advertisement Budget:-
• Current market conditions
• Flow of customer demand
• Payments to brand ambassadors
PROMOTION BUDGET

50. 50
CHALLENGES WHILE IMPLEMENTATION
URBAN CUSTOMERS
• Competitors like LIC, ICICI
Prudential, etc.
RURAL CUSTOMERS
• Unaware and disinterested

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 Annual Plan Control
o Monitor and take corrective action whether planned sales results are being achieved
o Responsibility lies with Marketing Department
 Profitability Control
o Periodic research to determine the actual profitability of their products, territories, etc.
 Efficiency Control
o More efficient ways to manage the sales force, advertising, sales promotion, etc.
 Strategy Control
o Examine critically their policies, objectives, marketing strategy and competitive advantages and
growth opportunities
MARKETING CONTROL

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