7 Pâ€™s of Marketing Mix of ICICI Prudential
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank – one of India’s foremost financial services companies-and Prudential plc – a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.
It began its operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, their nation -wideÂ reachÂ includes 1,960 branches (inclusive of 1,096 micro-offices), over 237,000 advisors; andÂ 6 bancassurance partners.
For three years in a row, ICICI Prudential has been voted as India’s Most Trusted Private Life Insurer, by The Economic Times – AC Nielsen ORG MARG survey of ‘Most Trusted Brands’. As they grow their distribution, product range and customer base, they continue to tirelessly uphold their commitment to deliver world-class financial solutions to customers all over India.
For theÂ past nine years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life.
ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with 1,960 branches (including 1,096 micro-offices) and an advisor base of over 230,000 (as on December 31, 2009).
The company has 6 bancassurance partners having tie-ups with ICICI Bank, Jalgaon Peoples Co-op Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank.
7 Pâ€™s of Marketing ofÂ ICICI Prudential :
1. ProductsÂ andÂ Services:
Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers several novel, customer-centric products for customers at every stage of life. The products and services offered by the organization are in various fields, such as:
1. Save ‘n’ Protect : Itâ€™s a perfect plan to collect funds as savings and be protected by the insurance policy.
2. Cashback : Itâ€™s a policy with a combination of three benefits periodic liquidity, protection & savings.
3. Home Assure : It is a policy where you can cover your home loan which is a term assurance plan.
4. Pure Protect : It secures your life and your familyâ€™s in case of any unforeseen situation. It is a term plan which is a flexible and inexpensive product.
5. Life Guard : It is a cover which is available at a low cost. This plan comes with 2 options â€“level term assurance with return of premium & single premium.
Premium Guarantee Plans:
1. InvestShield CashBack : It provides a premium guarantee and also balancing the returns, safety & liquidity. It is a unit linked plan.
2. InvestShield Life New : A plan where the customer is guaranteed that he will at least get back his premiums. It is a unit linked plan which also provides premium guarantee and the customer gets the benefits of high returns. The policy also offers a protection to the family with a life insurance cover.
Education Insurance Plans:
1. SmartKid Regular Premium : It is a tradional plan where funds are provided for the needs of the child in the future.
2. SmartKid New Unit-linked Regular & Single Premium : The policy is made in such a way that the child receives money at a stage, for his educational needs.
Wealth Creation Plans:
1. PremierLife Gold : Premier Life Gold helps with long-term wealth creation .It is a limited premium paying plan. And from the second year onwards it also provides flexibility of premium reduction.
2. LifeStage RP : The LifeStage RP is unit linked plan that provides you with a portfolio strategy and keeps distributing your funds across the different asset classes depending on your profile.
3. Wealth Advantage : Its an exclusive whole life single premium unit linked plan that provides long term coverage up to the age of 70 years. And you have the option of withdrawing your funds systematically.
4. Lifetime Gold : This plan is a unit linked plan from which you can get high returns over a long term with easy investment options. It offers 8 fund options – Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth.
5. LifeStage Assure : A unit linked insurance plan that provides Guaranteed Maturity Addition of 100%- 450% of first year premium based on the term and number of premiums paid. Also your funds are allocated across several asset class based on your profile.
6. LifeLink Super : Itâ€™s a single premium unit linked insurance which offers premium allocation along with a chance to get high returns over the long term, and your family is also protected by this plan.
1. Group Term Insurance Plan : Itâ€™s a flexible group term plan which provides an inexpensive cover to members of a group. The cover is either given based on uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.
2. Group Gratuity Plan : The plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds.
3. Group Super Annuation Plan : This plan offers a flexible market linked scheme that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefit (DB) schemes are offered to optimize returns for members of the trust and rationalize cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.
4. Annuity Solutions : This plan has annuity products which give you income and help you realize your needs. In addition to the annuities offered to existing superannuation customers, the plan also offers immediate annuities to superannuation funds managed by the team.
Health Insurance Plans:
1. Diabetes Plans : It is a long term insurance policy created for individuals with Type II diabetes and pre-diabetes. It offers long term (upto 20 years) control over diabetes through a specially designed Wellness Programme including regular health checkups and a Diabetes Coach to facilitate diabetes management. It also provides you coverage against seven major critical illnesses.
2. Cancer Plans : It provide a regular premium plan that helps you with a cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.
3. Comprehensive Health coverage : provides comprehensive hospitalization cover and reimburses all other medical expenses by building a health fund.
4. Critical Illness Plan : It is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death.
5. Hospitalisation Plan : A health insurance policy that provides assured insurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years. Also there is another hospital care plan where thereÂ is a fixed benefit plan covering various stages of treatment â€“ hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years.
1. Forever Life : A traditional retirement product that offers guaranteed returns for the first 4 years.
2. Immediate Annuity : A single premium annuity product that assures an income for life at the time of your retirement. It has the benefit of 5 payout options.
3. LifeStage Pension : A regular premium unit linked pension plan that provides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your age and risk profile.
4. Premier Life Pension : It is a unit-linked pension policy with a limited premium paying option for preferred customers.
5. Lifetime Super Pension : It is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase pric5. at the time of retirement.
6. LifeLink Super Pension : A single premium unit linked pension plan.
Rural Plans :
Suraksha & Suraksha Kavach : Itâ€™s a rural plans which offer benefits like life Cover, low and Affordable Premiums and Hassle Free Procedure.
Micro Insurance Sarv Jana Suraksha : Sarv Jana Suraksha is a plan to provide protection and security to rural population at a very affordable cost. The family members are protected in this plan incase of death of the policyholder.
The New Product Launched by ICICI Prudential is as follows-
1. â€˜Anmol Niveshâ€™ for tea tribes in Assam in January 2009
2. Health Saver in January 2009
Pricing is very important in life insurance as policyholders are attracted towards it more often. ICICI Prudential has some unique policies which is different from other companies.
Example: ICICI Prudential- Pure Protect
Below is the table that shows premium for various age-term combinations for a Sum Assured of Rs.50 lakhs.
|Age||10 years||15 years||20 years||25 years|
Features of Pure Protect :
1. Entry Age
|Policy||Pure Protect Classic||Pure Protect Elite|
2. Policy Term:
|Policy||Pure Protect Classic||Pure Protect Elite|
Mostly Life Insurance companies have offices at main locations in cities and towns. But most of the customers buy insurance policies with the help ofÂ agents. Therefore place is important but other than place what is more important is wide distribution ofÂ policies through banks directly. It is known as Bancassurance. Bancassurance is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products. Bank staff and tellers, rather than an insurance salesperson, become the point of sale/point of contact for the customer. Bank staff are advised and supported by the insurance company through product information, marketing campaigns and sales training. Both the bank and insurance company share the commission. Insurance policies are processed and administered by the insurance company.Â By selling insurance policies bank earns a revenue stream apart from interest. It is called as fee-based income. This income is purely risk free for the bank since the bank simply plays the role of an intermediary for sourcing business to the insurance company.So, ICICI Bank uses bancassurance to distribute policies to its customers. ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with 1,960 branches (including 1,096 micro-offices) and an advisor base of over 230,000 (as on December 31, 2009).
ICICI Prudential has 6 bancassurance partners having tie-ups with ICICI Bank, Jalgaon Peoples Co-op Bank, Ratanagiri District Central Co-op Bank, Ballia Kshetriya Co-operative Bank, Renuka Nagrik Sahakari Bank, Bhandara Urban Co-operative Bank.
Mostly all private life insurance companies are using bancassurance model. Other than this all ICICI Prudential Life Insurance offices are at significant locations.
Over the last few months, ICICI Prudential has been advertising in outdoor, TV and press. The company launched a corporate television campaign â€“ Saat Phere â€“ which took the emotions and thoughts of initial Sindoor corporate film a few steps further.
The film highlights the strength of promises that a husband makes to his wife, through the depiction of everyday situations, and then goes on to emphasise that ICICI Prudential will stand by the husband to help him fulfill all these promises. The TV campaign has also been extended to outdoor.
â€œThe company has also undertaken press and internet campaigns to inform customers about benefits of some of its products, particularly retirement solutions, through the Chintamani campaign.â€
After the hugely successful Chintamani (retirement) and Saat Phere (corporate) campaigns, ICICI Prudential Life Insurance also introduced some innovations in the category, such as: having a tax planner by the name of Chintamani on radio, who would answer consumerâ€™s queries about the role of insurance in financial planning.
â€œOther initiatives included tie-up with the Dabbawalla Organisation in Mumbai for a direct marketing exercise, to talk to the customer through a non-cluttered route, and thereby have a higher impact. The direct mailer was about ICICI Prudentialâ€™s retirement solutions and the tax benefits that one can avail ofÂ by investing in any of these. About 100,000 direct mailers were attached to the â€˜dabbasâ€™, in areas such as Churchgate, Bandra and Andheri where there are mostly office-goersâ€ .
In addition to advertising, the company has also initiated several activities to raise consumer awareness about life insurance and ICICI Prudential. â€œIt includes seminars – ICICI Prudential regularly holds consumer awareness meets on â€˜the need for retirement planningâ€™ in different cities such as Pune, Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore. These are very well attended and have contributed significantly towards increasing awareness about the category and the company. Apart from this, it also entered into alliances with telecom companies, as well as companies like BPCL and Dominosâ€
People are the main assets in any organization . They are very precious in the service sector. Therefore, ICICI Prudential has good number of talented people in their organization . The people strategy of ICICI Prudential is â€œTo build a committed team with a culture of innovation, learning and growth. The Human Resource Function at ICICI Prudential drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization. The company provides an enabling environment to foster growth and learning for their employees.
Every member of the ICICI Prudential team is committed to 5 core values:
- Customer First
These values shine forth in all we do, and have become the keystones of our success.
The client approaches the insurer (ICICIÂ Prudential) through an agent with a proposal containing his personal details, income details, medical history, products ( the product describes the features provided by the insurer like maturity bonus, claims allowed etc. These features vary from product to product), sum assured (the amount for which the client is covered), term (number of years for which the client is to be covered) and premium amount (installment amount to be paid by the client to the insurer). The agent who brings this proposal is termed as a base/servicing agent for the proposal.
The proposal will go through various stages of approval and risk evaluation by the â€œCentral Processing Centreâ€ of the ICICI Prudential. Upon final approval, a legal agreement, termed as policy, between the insurer and the client is prepared whereby the insurer covers the client for the sum assured. The client is also entitled for some additional benefits, if any, depending on the features of the product taken in the policy. The base agent gets a commission for the policy.
The client pays a premium at regular intervals. These subsequent premiums are termed as renewal premiums. The base agent gets a commission on the renewal premium also.
The client may come back with some alterations to the policy viz. increase/decrease in sum assured, increase/decrease of the term of policy etc. The insurer will make the relevant changes to the policy and will issue endorsements stating the alterations made and their effect on the policy.
During the term of the policy, the client can submit claims. The insurer makes payment against the claim after verification. Depending on the type of claim the policy is either terminated or is kept in force.
At the end of the term of the policy, the client gets the sum assured as part of the maturity benefit under life insurance policies. In addition to this the client will get the maturity bonus and any other benefits depending on the product feature.
7. Physical Evidence:
Physical evidence includes facility design, equipment signage, employee dress, tangibles, reports and statements.
Signage personifies the insurance company. It gives a identity by which users recognize the company. A signage depicts the companyâ€™s philosophy and policy. Following are some of the examples
Insurance companies give their customers and agents various tangible items like pen, letter pad, calendars. Such things try to reduce the intangibility characteristics of this industry. Example: Pen of ICICI Prudential
The statements are punch line which briefly depicts the vision and attitude of a insurance company towards its users/potentials. It also indicates their business motive. Example: ICICI Prudential have a punch line called â€œ We cover you at every step of Lifeâ€ and also the advertisement of â€œJeete Rahoâ€ was hit among the TV viewers.
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