Life Insurance Corporation of India

Staying Ahead in the Game

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Life Insurance Corporation of India

NORTH SOUTH UNIVERSITY

Case Study on Life Insurance Corporation of India Staying Ahead in the Game

Brand Management (MKT465)

Section: ??

FACULTY MEMBER: Zarjina Tarana Khalil (Ztk) Submitted By:

Safwan Dawood Shams Sohidul Hoque

093-0670-530 093-0385-030

Submission Date: 31st August, 2013

Staying Ahead in the Game

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Life Insurance Corporation of India

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 ICICIPrudential 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

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

Staying Ahead in the Game

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Life Insurance Corporation of India

01. What have been key successes factors that have helped LIC tide over competition? Training and development of sales force Sales force locates prospects, develop them into customers, and grow the business. Sales personal serve as the companys 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.

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. They are:

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.

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Life Insurance Corporation of India

02. How did life insurance company manage to gain foothold in rural India

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. Through its high level of accessibility and availability, LIC have been able to increase proximity with the target group, irrespective of their location and status. Private insurance companies focused more on affluent class while LIC targeted more poor and remotest customers. LIC not only hired agents in rural areas but also set up satellite offices to cater customers. They came up with different schemes that able to gain peoples attention and created awareness among people specially children. Moreover premiums have been structured keeping in mind the uncertainty of income of those people. To accomplish this LIC tied up with self-help groups and NGOs.

03. What role has LICs promotion strategy played in brand building? Promotional Strategy Objective of promotion and advertisement is creating 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.

In the case LIC has taken help of advertising agencies to promote the Brand LIC. They used creative slogans which affects the customers 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.
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Staying Ahead in the Game

Life Insurance Corporation of India

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, doesnt lose the main objective.

Conclusion: Growth of Indian Economy is not a consumption driven but it is an investment driven growth, and opens a wide variety of Investment Avenue. Competition means to compete, fight with other business in the insurance industry to get maximum market share or profits, income, sales etc. The entry of private sector insurance companies into the Indian insurance sector triggered off a series of changes in the industry. Even with the stiff competition in the market place, it is evident from the study that the public sector giant LIC dominates the Indian insurance industry.LIC is competing with 16 other companies in the insurance sector and has successfully managed not only to beat the competition but also has taken advantage of the competition to increase its market share and premium income. Thus, LIC has taken the competition positively as a means to innovate, develop and re-engineer itself to the market. In this project, an attempt is made to determine the present competition in the Insurance and effective strategies to overcome the competition.

Staying Ahead in the Game

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