2. Presented By
Arti Kumari
Debarati Sen Gupta
Monalisa Ghosh
Maneet Kumar
Mani Shankar Sonkushre
Man Mohan Anand
M.S.Ramaiah Management Institute, Bangalore | MBA PRIST (A)
3. Abstract
The case deals with the strategy reformation of LIC to compete with new
entrants in the field of insurance in India.
Till year 2000, LIC was the only company providing insurance services to
Indian customer. After year 2000 many new companies enters into the
field of insurance such as ICICI–Prudential and Max New York etc.
To compete with the new players LIC totally reformed its strategy to
maintain its market leader position in insurance sector of Indian economy
4. Coverage of Area
In Its new strategy to compete the new entrants , LIC focused
majorly on following areas
• Training and development of sales force
• Technological Edge
• Business Process Re-engineering
• Promotional Strategy
5. Training and development of sales force
Sales force locates prospects, develop them into customers, and grow the
business. Sales personal serve as the company’s personal link to the
customer hence training and development of sales force become an
important aspect. Various methods adopted by LIC in this regards are :
• Program they recruit many more agents to increase their network.
• Agents were given professional training mandatory under regulatory &
Development and authority rules
• A tie up was done with IIM to impart IT skills to the sales force
• Laptops were sold to development officers at concession price.
6. Technological Edge
Technology plays a vital role in business. Over the years businesses have
become dependent on technology so much so that if we were to take
away that technology virtually all business operations around the globe
would come to a grinding halt. this case LIC has used various technologies
to improve the effectiveness of business.
• LIC used WAN (wide Area Network) to interconnect its branches which
facilitate the customers to pay their premium at any branch.
• LIC used IVRS (Interactive Voice Responsive System) that enables the customer
to get their query resolved in real time and obtain information on their policy.
7. Business Process Reengineering
Business Process Reengineering is a “structured approach to define
the current state of processes, identifying gaps and opportunities,
designing a future process that meets the business needs and
planning for implementation.”
In the case, LIC has reengineered their service processes to clear the
outstanding claims. They improved their services in such a manner
that it takes less time to process the customer request. In this way
they were able to send a message to customer that LIC delivers its
services on its promise.
8. Promotional Strategy
Promotion is defined as the coordination of all seller-initiated efforts to set
up channels of information and persuasion in order to sell goods and
services or promote an idea.
Advertising is defined as any paid form of non personal communication
about any product, organization, services or idea by an identified sponsor.
Objective of promotion and advertisement is create brand identity and
brand equity. A Brand is defined as “a name, term, sign, symbol or design or
a combination of them, intended to identify the goods or services of one
seller or group of sellers and to differentiate them from those of
competitors.”
9. Promotional Strategy
In the case LIC has taken help of advertising agencies to promote the Brand LIC.
They used creative slogans which affects the customer’s mindset and able to
attract their attention.
Those slogans helped LIC to make the customer emotionally attached to services
provided by them.
They spend huge amount of money in advertising and sales promotions to build
their brand equity and identity.
To avoid the interference in communication to customer, they reduced the
number of ad agencies and worked with limited number of those agencies so that
the message reached to customer, doesn’t lose the main objective.
