IDBI Federal Life Insurance Advertising Strategies Project

IDBI federal Life Insurance Co. Ltd. 2015
Chanchal Sharma Page 1
(Session 2015-2017)
Project work
on
Advertising Strategies
of
Submitted by- Submitted to-
Chanchal sharma Mr. Manas Das

CONTENTS
Headings Page no.
Overview of insuranceIndustry 3
Introduction of IDBI federal 11
Details of the company 12
Nature of the business 20
Mission, Vision & Values 23
ProductRange of IDBI 24
Size of the company 40
Market share& Position 41
OrganizationalStructure 43
Objectives of the study 44
Sources of Data Collection 45
SWOTAnalysis 46
Questionnaire 47
Promotionalactivities adopted by
IDBI FederalLife Insurance
69
Balance Sheet of the company 76
Cash Flow Statement 77
P & L Statement 78
Marketing Mix 79
Finding & Recommendation 86
Weblography 93

Overview of Insurance Industry
The insuranceindustry of India consists of 51 insurancecompanies of which 24
are in life insurancebusiness and 27 are non-life insurers. Among the life insurers,
Life InsuranceCorporation (LIC) is thesole public sector company. Apart from
that, among the non-life Insurers, thereare six public sector insurers. In addition
to these, there is sole national reinsurer, namely, General InsuranceCorporation
of India. Other stakeholders in Indian InsurancemarketincludeAgents (Individual
and Corporate), Brokers, Surveyorsand Third Party Administrators servicing
Health Insuranceclaims.
Out of 27 non-life insurancecompanies, 4 private sector insurers areregistered to
underwritepolicies exclusively in Health, PersonalAccident and Travel insurance
segments. They are Star Health and Allied InsuranceCompany Ltd, Apollo Munich
Health InsuranceCompany Ltd, Max Bupa Health InsuranceCompany Ltd and
Religare Health InsuranceCompany Ltd. There are two more specialized insurers
belonging to public sector, namely, Export Credit Guarantee Corporation of India
for Credit Insuranceand AgricultureInsuranceCompany Ltd for Crop Insurance.
Market Size
During April 2015 to February 2016 period, the life insuranceindustry recorded a
new premiumincome of Rs 1.072 trillion (US$ 15.75 billion), indicating a growth
rate of 18.3 per cent. The general insuranceindustry recorded a 14.1 per cent
growth in Gross DirectPremium underwritten in FY2016 up to the month of
February 2016 atRs 864.2 billion (US$ 12.7 billion).
India's life insurancesector is the biggestin the world with about 360 million
policies which are expected to increaseat a Compound Annual Growth Rate
(CAGR) of 12-15 per cent over the next five years. Theinsuranceindustry plans to
hike penetration levels to five per cent by 2020.

The country’s insurancemarketis expected to quadruplein size over the next 10
years fromits currentsize of US$ 60 billion. During this period, the life insurance
market is slated to cross US$ 160 billion.
The general insurancebusiness in India is currently at Rs 78,000 crore(US$ 11.44
billion) premiumper annum industry and is growing at a healthy rate of 17 per
cent.
The Indian insurancemarket is a hugebusiness opportunity waiting to be
harnessed. India currently accounts for less than 1.5 per cent of the world’s total
insurancepremiums and about 2 per cent of the world’s life insurancepremiums
despite being the second most populous nation. The country is the fifteenth
largest insurancemarketin the world in terms of premiumvolume, and has the
potential to grow exponentially in the coming years.
Growth
The Indian life insuranceindustry has begun to recover and is likely to report12-
15% growth in financial year (FY) 2016-17, according to an ICRA paper analyzing
the performanceof nine life insurancecompanies in India, onein the public
sector and eight in the privatesector. Together, they represent over 87% of the
total annualized premium equivalent (APE) of the life insuranceindustry during
firstnine months (April-December) of FY16.
The companies analyzed are: Life InsuranceCorporation of India (LIC), ICICI
Prudential Life InsuranceCorp. Ltd, Bajaj Allianz Life InsuranceCo. Ltd, SBI Life
InsuranceCo. Ltd, Birla Sunlife InsuranceCo. Ltd, Max Life InsuranceCo. Ltd,
Reliance Life InsuranceCo. Ltd, Kotak Mahindra Old Mutual Life InsuranceLtd,
and HDFCStandard Life InsuranceCo. Ltd.
During the period, the industry APEgrew 6% year-on-year (y-o-y), as againsta
contraction of 9% y-o-y in FY15 to stand at Rs.37,300crore(itwas Rs.35,000crore
in the firstnine months of FY15). Thegrowth for private companies was 13% y-o-y

during the period. LICwitnessed an improvement to 1% y-o-y during April-
December FY16 froma contraction of 24% in FY15.
During the last few quarters, LICreported poor APE performancefollowing the
contraction in its regular premium collections and the weakness in its unit-linked
insuranceplan (Ulip) portfolio againstthe backdrop of an upbeat domestic stock
market. In FY15, the regular segmentcontracted by 27% y-o-y and reported
volumes of Rs.23,000crore. However, in firstnine months of FY16, contraction in
the regular premium segment reduced to 4% y-o-y.

LIC’s regular premiumsegment contracted 4% y-o-y during the reported period,
while that for the privatecompanies analyzed grew by 12% y-o-y during this
period. Industry APEdrew adequate supportfromdeclining LICcontraction rates
and marginal improvementin the regular premium growth rate for private
companies (29% y-o-y in first nine months of FY16, as against25% in FY15).
In line with the trend witnessed during the pastfew years, especially since the
regulatory changes of September 2011, theproportion of single premiumin the
total new business premia generated by the industry continued to risein the first
nine months of FY16. Itroseto 63% during the stated period from58% both in
FY15 and April-December FY15.
But contrary to the trend of maintaining the single-premium proportion stable at
around 30% during the past few years, private companies reported an increase in
the proportion to 34% in the said period of FY16, as against 31% in the year-ago
period. The increasefollowed the sharper focus thatthey brought to the single-
premium segment. LIC, on the other hand, continues with its historical trend of
growing its new business mix in favor of single-premiumproducts. As of
December 2015, singlepremiumaccounted for 75% of LIC’s totalnew business,
versus 70% in December 2014.

Private insurers, who till last year had not paid much attention to the single-
premium segment, have turned more aggressive.
Single-premium collections for them grew at a faster pace (29% y-o-y), compared
with LIC (24% y-o-y), enabling industry collections in the segment to rise25% y-o-
y in this period.
The regular-premiumsegment has remained on a marginally lower growth
trajectory. For privateinsurers, this segment grew 12% y-o-y during the period,
while for LICit contracted 4% y-o-y (contraction of 27% in FY15). Consequently,
for the overall industry, thegrowth rate in the regular premium remained at the
sub-5% levels in 9M FY16 (as againsta contraction of 10% y-o-y in FY15).
Investments
The following are someof the major investments and developments in the Indian
insurancesector.
 The Insurancesector in India is expected to attract over Rs 12,000 crore(US$
1.76 billion) in 2016!as many foreign companies are expected to raise their
stake in private sector insurancejoint ventures.
 QuESTGlobal, a pure-play engineering and Research and Development (R&D)
services provider, has raised investmentof around Rs 2,396 crore(US$ 351.54
million) fromleading global investors Bain Capital, GICand Advent
Internationalfor a minority stake in the company.
 Foreign Direct Investmentin the insurancesector stood at US$ 341 million in
March-September, 2015, showing a growth of 152 per cent compared to the
same period last year.
 InsurancefirmAIA Group Ltd has decided to increaseits stake in Tata AIA Life
InsuranceCo Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from
26 per cent to 49 per cent.
 Canada-based Sun Life Financial Inc plans to increaseits stake from26 per cent
to 49 per cent in Birla Sun Life InsuranceCo Ltd, a joint venturewith Aditya

Birla Nuvo Ltd, through buying of shares worth Rs 1,664 crore(US$ 244.14
million).
 Nippon Life Insurance, Japan’s second largestlifeinsurancecompany, has
signed definitive agreements to invest Rs 2,265 crore(US$ 332.32 million) in
order to increaseits stake in Reliance Life Insurancefrom26 per cent to 49 per
cent.
 The Central Governmentis planning to launch an all-in-one insurancescheme
for farmers called the Unified Package InsuranceScheme(Bhartiya KrishiBima
Yojana). The proposed schemewill havevarious features like crop insurance,
health cover, personalaccident insurance, live stock insurance, insurance
cover for agriculture implements like tractors and pump sets, student safety
insuranceand life insurance.
 Governmentlaunched a special enrolment drive, Suraksha Bandhan Drive
comprising of sale of gift cheques and launch of deposit schemes in bank
branches, to facilitate enrolment under Pradhan MantriSuraksha Bima Yojana
(PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY).
Government Initiatives
The Government of India has taken a number of initiatives to boost the insurance
industry. Someof them are as follow:
 Foreign investment will be allowed through automatic route for up to 49 per
cent subject to the guidelines on Indian managementand control, to be
verified by the regulators.
 Service tax on single premium annuity policies has been reduced from3.5 per
cent to 1.4 per cent of the premium paid in certain cases.
 Governmentinsurancecompanies to be listed on the exchanges
 Service tax on serviceof life insurancebusiness provided by way of annuity
under the National Pension Systemregulated by Pension Fund Regulatory and
Development Authority (PFRDA) being exempted, with effect from1 April
2016.

 The InsuranceRegulatory and Development Authority (IRDA) of India has
formed two committees to explore and suggest ways to promote e-commerce
in the sector in order to increase insurancepenetration and bring financial
inclusion.
 IRDA has formulated a draft regulation, IRDAI (Obligations of Insures to Rural
and Social Sectors) Regulations, 2015, in pursuanceof the amendments
broughtabout under section 32 B of the InsuranceLaws (Amendment) Act,
2015. Theseregulations impose obligations on insurers towards providing
insurancecover to the ruraland economically weaker sections of the
population.
 The Government of India has launched two insuranceschemes as announced
in Union Budget 2015-16. Thefirstis Pradhan MantriSuraksha Bima Yojana
(PMSBY), which is a PersonalAccident InsuranceScheme. The second is
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which is the government’s
Life InsuranceScheme. Both the schemes offer basic insuranceat minimal
rates and can be easily availed of through various governmentagencies and
private sector outlets.
 The Uttar Pradesh governmenthas launched a firstof its kind banking and
insuranceservices helpline for farmers whereindividuals can lodge their
complaints on a toll free number.
 The select committee of the Rajya Sabha gave its approvalto increasestake of
foreign investors to 49 per cent equity investment in insurance companies.
 Governmentof India has launched an insurancepool to the tune of Rs 1,500
crore(US$ 220.08 million) which is mandatory under the Civil Liability for
Nuclear Damage Act (CLND) in a bid to offsetfinancial burden of foreign
nuclear suppliers.
Industry outlook
As of the firsthalf (April-September) of FY16, domestic life insurancecompanies
remained well capitalized, partly because of the low growth in gross premium
collections. The capitalization levels are comfortable, despite deteriorating

profitability matrices largely on account of the large cushion of capital available—
over and above the minimum regulatory requirement.
After the passageof the InsuranceLaws (Amendment) Bill, 2015, which sets a
higher cap on foreign investment in insurancejoint ventures (JVs), nearly all
foreign JV partners have shown interestin increasing the equity stake in their
respective JVs.
The announcements made so far suggestRs.10,000-croredeals havebeen
executed or are in their final stages of execution in the life insuranceindustry. But
a significant part of the capital may go to the Indian JV partners concerned as they
look to monetise their investments. In mostof these deals, the post-money
valuation of the JV stands between 1.0 times and 4.0 times their FY15 Gross
Premium Written. If onewere to use another multiple, such as Price/Net Worth,
the rangewould stand substantially wider between 6.0 and 7.0 times.
Road Ahead
India's insurablepopulation is anticipated to touch 750 million in 2020, with life
expectancy reaching 74 years. Furthermore, lifeinsuranceis projected to
comprise35 per cent of total savings by the end of this decade, as against26 per
cent in 2009-10.
The future looks promising for the life insuranceindustry with severalchanges in
regulatory framework which will lead to further changein the way the industry
conducts its business and engages with its customers.
Demographic factors such as growing middle class, young insurablepopulation
and growing awareness of the need for protection and retirement planning will
supportthe growth of Indian life insurance.

Introduction of IDBI Federal Life insurance Co. Ltd.
Company’s Profile
Name of the company IDBI Federal Life Insurance Co. Ltd.
Address 907-908, 9th
Floor, Kanchanjunga Building,
Barakhamba road, Cannaught Place, New Delhi-
110001
Telephone No. 1800 209 0502 (Toll Free)
Email id Kanika.chadha@idbifederal.com
Website www.idbifederal.com
Type of the organization Insurance
Corporate office address 1st
Floor Trade View, OASIS Complex, Kamala city,
PB Marg, Lower Parel (w) Mumbai - 400013
Areas of operation All over the India
Specific Function area Bank & Insurance

Details of the Company
IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s
premier development and commercial bank, Federal Bank, one of India’s
leading private sector banks and Ageas, a multinational insurance giant based
out of Purpose. In this venture, IDBI Bank owns 48% equity while Federal Bank
and Ageas own 26% equity each. . Having started in March 2008, in just five
months of inception, IDBI Federal became one of the fastest growing new
insurance companies to garner Rs 100 Cr in premiums. Through a continuous
process of innovation in product and service delivery IDBI Federal aims to
deliver world-class wealth management, protection and retirement solutions
that provide value and convenience to the Indian customer. The company
offers its services through a vast nationwide network of 3014 partner bank
branches of IDBI Bank and Federal Bank in addition to a sizeable network of
advisors and partners. As on 31st March 2015, the company has issued over
8.35 lakh policies with a sum assured of over Rs. 53,918Cr. IDBI Federal Life
Insurance has total assets under management of 4,893 crore and a robust
capital base of over 800 crores, as on March 31, 2016.
IDBI Federal today is recognized as a customer-centric brand, with an array of
awards to their credit. They havebeen awarded the PMAA Awards (2009) for best
Dealer/Sales force Activity, EFFIE Award (2011) for effective advertising, and
conferred with the status of ‘Master Brand 2012-13’ by the CMO Council USA and
CMO Asia.

IDBI Bank
IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core
Banking IT platform. The Bank offers personalized banking and financial solutions
to its clients in the retail and corporatebanking arena through its large network of
Branches and ATMs, spread across length and breadth of India. We have also set
up an overseas branch at Dubai and have plans to open representative offices in
various other parts of the Globe, for encasing emerging global opportunities.
As on March 31, 2011, the Bank had a network of 816 Branches and 1372 ATMs.
The Bank's total business, during Fey 2010-11, reached Rs. 3,37,584 Crore,
Balance sheet reached Rs. 2,53,377 Crore while it earned a net profit of Rs. 1650
Crore (up by 60%).
IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years,
IDBI Bank has essayed a key nation-building role, first as the apex Development
Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of
industry and thereafter as a full-service commercial Bank (October 1, 2004
onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere project
financing to cover an array of services that contributed towards balanced
geographical spread of industries, development of identified backward areas,
emergence of a new spirit of enterprise and evolution of a deep and vibrant
capital market. On October 1, 2004, the erstwhile IDBI Bank converted into a
Banking company (as Industrial Development Bank of India Limited) to undertake
the entire gamut of Banking activities while continuing to play its secular DFI role.
Postthe mergers of the erstwhile IDBI Bank with its parentcompany (IDBI Ltd.) on
April 2, 2005 (appointed date: October 1, 2004) and the subsequentmerger of the
erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-
savvy, new generation Bank with majority Government shareholding today
touches the lives of millions of Indians through an array of corporate, retail, SME
and Agri products and services.
Headquartered in Mumbai, IDBI Bank today rides on the back of a robustbusiness
strategy, a highly competent and dedicated workforce and a state-of-the-art
information technology platform, to structure and deliver personalized and

innovative Banking services and customized financial solutions to its clients across
various delivery channels.
As on March 31, 2013 IDBI Bank has a balance sheet of Rs. 3,22,769 Crore and
business size (deposits plus advances) of Rs 4,23,423 Crore. As a Universal Bank,
IDBI Bank, besides its core banking and projectfinance domain, has an established
presence in associated financial sector businesses like Capital Market, Investment
Banking and Mutual Fund Business. Going forward, IDBI Bank is strongly
committed to work towards emerging as the 'Bank of choice' and 'the most
valued financial conglomerate', besides generating wealth and value to all its
stakeholders.
Industrial Development Bank of India
Industrial Development bank of India (IDBI) was constituted under Industrial
Development bank of India Act, 1964 as a Development Financial Institution and
came into being as on July 01, 1964 vide Go I notification dated June 22, 1964. It
was regarded as a Public Financial Institution in terms of the provisions of Section
4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years till the
year 2004 when it was transformed into a Bank.
Industrial Development Bank of India Limited
In response to the felt need and on commercial prudence, it was decided to
transform IDBI into a Bank. For the purpose, Industrial Development bank
(transfer of undertaking and Repeal) Act, 2003 [Repeal Act] was passed repealing
the Industrial Development Bank of India Act, 1964. In terms of the provisions of
the Repeal Act, a new company under the name of Industrial Development Bank
of India Limited (IDBI Ltd.) was incorporated as a Govt. Company under the
Companies Act, 1956 on September 27, 2004. Thereafter, the undertaking of IDBI
was transferred to and vested in IDBI Ltd. with effect from the effective date of
October 01, 2004. In terms of the provisions of the Repeal Act, IDBI Ltd. has been
functioning as a Bank in addition to its earlier role of a Financial Institution.

Federal Bank
Federal Bank Ltd is engaged in the banking business. The Bank operates in four
segments: treasury operations, wholesale banking, retail banking and other
banking operations. Treasury operations include investment and trading in
securities, shares and debentures. The Bank's products and services include
working capital, term finance, trade finance, specialized corporate finance
products, structured finance, foreign exchange, syndication services and
electronic banking requirements. Federal Bank Ltd was incorporated on April 28,
1931 with the name Travancore Federal Bank Ltd. The company was established
with an authorized capital of rupees five thousand at Nedumpuram, a place near
Tiruvalla in Central Travancore under the Travancore Company's Act. The Bank
was founded by K.P.Hormis. They started business of auction -chitty and other
banking transactions connected with agriculture and industry. In May 18, 1945,
the registered office of the Bank was shifted to Aluva. They opened their first
branch at Aluva and commenced operations. In the year 1946, they opened their
second branch at Angamally. In March 24, 1947, the name of the Bank was
changed to Federal Bank Ltd. In April 1947, they opened their third branch of the
Bank was at Perumbavoor. In July 11, 1959, the Bank was licensed under Sec.22
of the Banking Companies Act, 1949. The Bank floated several kuries one after
another. They also introduced several new deposit schemes during the same
period. In the year 1964, the Bank took over the assets and liabilities of the
Chalakudy Public Bank Ltd, The Cochin Union Bank Ltd and The Alleppey Bank
Ltd. In the year 1965, the St.George Union Bank Ltd was amalgamated merged
with the Bank. In the year 1968, The Marthandom Commercial Bank Ltd was

amalgamated with the Bank. In the year 1970, the Bank became a Scheduled
Commercial Bank. In the year 1973, the Bank became an Authorized Dealer in
Foreign Exchange and the International Banking Department of the bank was
started functioning from Mumbai. In the year 1975, the Bank opened 53
branches. In the year 1976, they opened 42 branches. In the year 1982, the Bank
shifted the International Banking Department to Cochin as part of consolidation
and centralization of activities.
As part of the organization redesigning recommended by National Institute of
Bank Management (NIBM), the Agricultural Finance Department was set up in
head office in November 1984. In July 1985, the Bank set up Personnel and
Industrial Relations Department. Also, they installed the first Advanced Ledger
Posting Machine (ALPM-a Wipro banker) at Br.Aluva-Bank Junction branch. In
the year 1987, they inaugurated the administrative building complex. In the year
1989, the Bank entered into the Merchant Banking Operations. In March 1994,
the Bank came out with the public issue. In February 17, 1997, the bank
inaugurated their first ATM at Ernakulum North. In the year 2000, the Bank
started their Any Where Banking (ABB) at Bangalore connecting all branches
located in the Bangalore metro. They launched Depository Services in
association with NSDL. Also, they commenced Internet Banking under the name
of 'Fed Net' with software support from Infosys Technologies Ltd. They entered
into marketing pacts with some commercial agencies for their E-commerce
business. In the year 2001, the bank made a tie up with Escortel
Communications to launch mobile banking services using SMS technology. Also,
they launched a new deposit schemechristened as 'Suraksha' for senior citizens.
The bank became a member of INFINET, thefinancial network supported by RBI.
In February 2002, they set up full-fledged systems for the RBI's Negotiated
Dealing Systems (NDS) at the Funds & Investment Branch in Mumbai, enabling
online trading in securities. In the year 2003, the Bank unveiled the Anywhere
Banking that provided the convenience of doing transactions from 300-plus
interconnected branches.
In the year 2004, the Bank obtained the level of 100% interconnectivity among

all their branches. Also, they launched an Equity Subscription Scheme, a new
retail product for financing the IPOs and public issue applications of their own
customers. The Bank joined hands with ICICI Prudential Life Insurance Company
Ltd for premium collection through their branches and introduced new Fed e-
Pay services. In the year 2005, JRG Securities Ltd forged an alliance with the
Bank for providing loans for subscribing to initial public offers (IPOs). The bank
emerged as the first bank in India to offer Real Time Gross Settlement (RTGS)
across all of their branches. In September 2, 2006, Ganesh Bank was
amalgamated with the Bank and the 32 branches of erstwhile Ganesh Bank of
Kurundwad Ltd were successfully integrated to bank's network. During the
period of 2006-07, the Bank entered into a joint venture agreement with IDBI
Ltd & Fortis Insurance International N V for incorporating a Life Insurance
Company under the name of IDBI Fortis Life Insurance Company Ltd. During the
year 2007-08, the Bank opened their Representative office at Abu Dhabi, Capital
of UAE for the gateway of the bank to the whole of Middle East and also as an
interface between their existing customers of GCC countries and its Branches
/Offices in India. In March 2008, theBank's joint venture life insurancecompany,
IDBI Fortis Life Insurance Company Ltd commenced their operation. During the
year 2009-10, the Bank opened 60 new branches and 115 new ATM centres.
During the year 2010-11, they opened 71 new branches and 73 new ATMs. As on
March 31, 2011, the total number of branches and ATMs of the Bank increased
to 743 and 805 respectively, as against 672 and 732 in the last financial year. As
of March 31, 2011, the Bank had two A category branches and 78 branches
designated as B category for handling the foreign exchange business.

Ageas
Ageas is an international insurancegroup with a heritage spanning more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has
chosen to concentrate its business activities in Europe and Asia, which together
make up the largest share of the global insurance market.
These are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned subsidiaries
and partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy,
Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in
France, Hong Kong and UK.
Ageas is the market leader in Belgium for individual life and employee benefits, as
well as a leading non-life player through AG Insurance. In the UK, Ageas has a
strong presence as the fourth largest player in private car insurance and the over
50’s market. Ageas employs more than 13,000 people in the consolidated entities
and over 20,000 in the non-consolidated partnerships and has annual inflows of
more than EUR 21 billion.
Ageas is an international insurancegroup with a heritage spanning more than 180
years. Ranked among the top 20 insurance companies in Europe, Ageas has
chosen to concentrate its business activities in Europe and Asia, which together
make up the largest share of the global insurance market.

These are grouped around four segments: Belgium, United Kingdom, Continental
Europe and Asia and served through a combination of wholly owned subsidiaries
and partnerships with strong financial institutions and key distributors around the
world. Ageas operates successful partnerships in Belgium, UK, Luxembourg, Italy,
Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in
France, Hong Kong and UK.
Ageas is the market leader in Belgium for individual life and employee benefits, as
well as a leading non-life player through AG Insurance. In the UK, Ageas has a
strong presence as the fourth largest player in private car insurance and the over
50’s market. Ageas employs more than 13,000 people in the consolidated entities
and over 20,000 in the non-consolidated partnerships and has annual inflows of
more than EUR 21 billion.

Nature of Business
 Channel Agency
 Bankassurance
 Direct Marketing
Milestones
 2006:-
o IDBI signs MoU with Fortis
o IDBI - Tripartite MOU with Federal Bank & Forties Insurance
o International
o IDBI, Federal Bank and Fortis Sign Joint Venture Agreement To
o Establish A New Life Insurance Company In India
 2009:-
o IDBI Federal Life launches new plan for senior citizens.
o IDBI Fortis redefines endowment & money back with Incomesurance™
o IDBI Fortis launches Termsurance™ Protection Plan
o IDBI Fortis bags bronze Dragon at 'PMAA 2009'
o IDBI Fortis Life Insurance uses an interactive application to help users easily calculate
their taxes
o IDBI Fortis launches Incomesurance™ Immediate Annuity
o IDBI Fortis launches Retiresurance™ Pension Plan
o 'IDBI Fortis' Boss-Ka-Boss bags PRCI Award
o IDBI Fortis announces Rs 250cr capital infusion

 2010:-
o IDBI Federal launches brand new campaigns!
o IDBI Federal introduces a cover for loans, Loansurance®
o IDBI Federal launches Wealthsurance Milestone Plan
o IDBI Fortis Life Insurance is now IDBI Federal Life Insurance
 2011:-
o IDBI Federal heralds the New Year with Childsurance
o IDBI Federal unveils 3-in-1 Lifesurance Savings Plan
o IDBI Federal launches insured wealth plan
o IDBI Federal pioneers Medical Test-free Term Plan for Seniors
o IDBI Federal launches unit linked Pension Plan
o IDBI Federal targets HNIs with Wealthsurance Premier
o IDBI Federal launches Retiresurance Guaranteed Pension Plan
o IDBI Federal-Samhita financial literacy drive a big hit in MP
 2012:-
o IDBI Federal launches a plan with double life cover and no medicals
o IDBI Federal makes its online debut
o IDBI Federal Bondsurance™ plan offers attractive guaranteed Tax-Free Returns, Life
Cover
o IDBI Federal and IDBI Bank reaches out to Surli through Termsurance Grameen
Suraksha
 2013:-
o IDBI Federal breaks-even in Five years; posts maiden profit of Rs 9.24 crore
o IDBI Federal in association with Phoenix Foundation organises a trek for the physically
challenged

 2014:-
o IDBI Federal launches 7 new plans
o IDBI Federal backs home grown talent; elevates Vighnesh Shahane as CEO

Mission, Vision & Values
VISION
To be the leading provider of wealth management, protection and
retirement solutions that meets the needs of our customers and adds value
to their lives.
MISSION
To continually striveto enhance customer experience through innovative
productofferings, dedicated relationship management and superior service
delivery while striving to interact with our customers in the most
convenient and costeffective manner.
To be transparentin 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.
VALUES
o Transparency:
Crystalclear communication to our partners and stakeholders.
o Value to Customers:
A productand serviceoffering in which customers perceivevalue.
o Rock Solidand Delivery onPromise:
This translates into being financially strong, operationally robustand
having clarity in claims.
o Customer-friendly:
Advice and supportin working with customers and partners.
o Profit to Stakeholders:
Balance the interests of customers, partners, employees, shareholders
and the community at large.

Products of IDBI Federal Life Insurance Co. Ltd.:
IDBI Federal provides many products which cater to the needs of the Indian
customers. IDBI Federal products:-
 WEALTHSURANCE
 INCOMESURANCE
 CHILDSURANCE
 LIFESURANCE
Wealthsurance:
is a simple unit linked plan that helps you take your first step towards wealth
creation and that too, with ease. What’s more, the life cover with this plan
provides financial protection to your loved ones.
Eligibility
Criteria
Minimum/
Maximum
Age at entry Minimum • 1 month (subjectto minimum maturity
age)
Maximum • 65 years (subjectto maximum maturity
age)
Maturity age Minimum • 18 years
Maximum • 75 years
Policy term Fixed options • 10 years, 15 years and 20 years

Premium
payment
term
Fixed options • 10 years and in multiples of 5 thereafter
Premium Minimum • Rs. 15,000 p.a.
Maximum • Rs. 25,000 p.a.
Premium
payment
mode
Fixed • Annual
Sum assured Fixed 10 times the annual premium
1. Choose your premium amount: You can select any amount, from as low as
Rs.15,000 to Rs.25,000 as your annual premium.
2. Choose how you would like to manage your investments : You can benefit
by opting for the Systematic Allocator or you can choose to manage your
investments by yourself. Please refer to the graph below for working of
Systematic Allocator.
3. Choose your policy term (PT): Choose the duration for which you would
like to stay invested in the plan as per the available options.
4. Choose your premiumpayment term (PPT): Choose the duration for which
you would like to pay premiums. There are 6 combinations of PPT and PT
available in this plan as below.
LimitedPay Regular Pay
PT PPT PT PPT
15 10 10 10
20 10 15 15
20 15 20 20

How does systematic allocator works?
Systematic Allocator helps you achieve a balance between growth and safety on
your investments. As your policy comes closer to maturity, Systematic Allocator
automatically rebalances your investment to reduce the level of your investment
risk. At the commencement of your policy, a significant portion of your funds is
invested in the Equity Growth Fund (high risk fund) in order to increase the
probability of higher returns. When your policy approaches maturity, Systematic
Allocator gradually reduces the exposure to Equity Growth Fund and shifts funds
to Income Fund (low risk fund). This helps reduce your investment risk related to
equities. The graph below represents the change in proportion of investment in
Equity Growth Fund and Income Fund with respect to the residual time to
maturity.

Main Features:
 Systematic Allocatorto help you build wealth with ease
You have two options of managing funds in Wealthsurance Suvidha. You
can either managethe funds yourself or opt for Systematic Allocator. If you
opt for Systematic Allocator, you will enjoy a balance between growth and
safety. In the early policy years, your investment will have a higher
exposure to equity. This will help your investments have the potential to
earn you higher returns. As the policy approaches maturity, your
investment will be automatically rebalanced to reduce the exposure to
equity. This ensures that your investment is protected from the ups and
downs of the equity markets.
 Option to choose how long you want to stay invested
With Wealthsurance® Suvidha, you can choose the policy term (PT) which is
the duration for which you want to stay invested. In addition, you can also
choosehow long you wantto pay your premiums by choosing the premium
payment term (PPT) most suited to your needs. Please refer to the product
brochure for combinations of PT and PPT available.
 Guaranteed loyalty additionsto boost your wealth*
At the end of the 10th policy year and every 5 years thereafter, you get
guaranteed loyalty additions to boost your wealth.
 Financial protection against uncertainty
In case of an unfortunate death during the policy term, your nominee gets
the death benefit which is the sum assured or the fund value at that time,
whichever is higher. At any time during the policy term, the death benefit
will be more than 105% of all premiums paid.
 Partial withdrawalsfor emergency fund requirements
In case of a financial emergency, you can make partial withdrawals from
your funds any time after the 5th policy year. For more information on

partial withdrawals, please refer to the product brochure.
 Two tax benefits
The premiums you pay under Wealthsurance® Suvidha are eligible for tax
benefit under Sec 80C of the Income Tax Act, 1961. The maturity benefit
and death benefit are also tax free under Sec 10(10D).
 Flexibility to switch fundsand investment options
You can switch your investment option between Systematic Allocator and
managing your funds by yourself. Also, if you are managing your funds
yourself, you can also switch from one fund to the other.
 Option to surrender
Wealthsurance® Suvidha also provides the feature of surrendering the
policy free of charge after the 5th policy year. A surrender amount equal to
the fund value as on date will be paid out. Discontinuance charge will be
applicable for policies surrendered within the first 5 years of the term.
 Exclusivefunds for loved ones
By endorsing your Wealthsurance® Suvidha policy under the Married
Women’s Property Act, 1874, you can create an exclusive fund for your
loved ones which is legally protected from creditors and claimants.
Incomesurance:
is a money-back plan that gives you the confidence of guaranteed income. You
pay for 7 years and start reaping the benefits from the 8th
year onwards with the
annual payouts ranging from126.66%to 143.23%of premiums paid. Additionally,
you can also guarantee a secure future for your family even when you are not

around.
Criteria Minimum Maximum
Age at Entry (as on last
birthday)
10 years* 50 years
Age at Maturity (as on last
birthday)
24 years 64 years
Premium Amount Rs 35,000 annually Rs. 20,00,000 annually
Policy term Fixed – 14 years
Premium paymentTerm Fixed – 7 years
Premium PaymentMode Annual
To help you understand this better, let us take the example of Mr. Mohit aged 20
years. Mr. Mohit decides to invest Rs. 2,00,000 per annum in his Incomesurance
plan. He invests this amount every year for the first 7 years of his policy. From the
end of the 8th policy year, he starts receiving his Guaranteed Annual Payouts of
Rs. 2,86,000 every year till the 14th
year of his policy.

Premiums are payable at the beginning of the year and payouts at the end of the
year.
The premium mentioned here is excluding service tax and for a healthy individual.
Guaranteed annual payouts are a defined percentage of your premium, based on
your age at entry and premium amount. The table given below shows the rates
corresponding to age:
Age at
Entry(Last
Birthday)
Premium <
Rs.
1,00,000
Premium ≥
Rs. 1,00,000
& <2,00,000
Premium ≥
Rs.
2,00,000
Age at
Entry (Last
Birthday)
Premium <
Rs.
1,00,000
Premium ≥
Rs. 1,00,000
& <2,00,000
Premium ≥
Rs.
2,00,000
10 139.26% 142.31% 143.23% 31 138.06% 141.28% 142.15%
11 139.26% 142.31% 143.23% 32 137.71% 140.94% 141.81%
12 139.26% 142.31% 143.23% 33 137.71% 140.94% 141.81%
13 139.26% 142.31% 143.23% 34 137.25% 140.48% 141.35%
14 139.26% 142.31% 143.23% 35 136.98% 140.21% 141.08%
15 139.02% 142.31% 143.23% 36 136.66% 139.89% 140.77%
16 139.02% 142.31% 143.23% 37 136.31% 139.54% 140.42%
17 139.02% 142.31% 143.00% 38 135.91% 139.15% 140.03%
18 139.02% 142.31% 143.00% 39 135.48% 138.72% 139.60%
19 139.02% 142.05% 143.00% 40 134.99% 138.24% 139.12%
20 138.80% 142.05% 143.00% 41 134.46% 137.72% 138.59%
21 138.80% 142.05% 143.00% 42 133.88% 137.14% 138.01%
22 138.80% 142.05% 143.00% 43 133.23% 136.50% 137.38%
23 138.80% 142.05% 142.75% 44 132.52% 135.79% 136.67%
24 138.80% 141.83% 142.75% 45 131.73% 135.01% 135.90%
25 138.56% 141.83% 142.75% 46 130.88% 134.17% 135.05%
26 138.56% 141.83% 142.75% 47 129.95% 133.24% 134.13%
27 138.56% 141.83% 142.49% 48 128.93% 132.23% 133.12%

28 138.31% 141.53% 142.49% 49 127.64% 131.15% 132.04%
29 138.31% 141.53% 142.49% 50 126.66% 129.83% 130.72%
30 138.06% 141.28% 142.15%
Main features:
 Enjoy GuaranteedIncome:
You get Guaranteed Annual Payouts ranging from 126.66% to 143.23% of
your annual premium irrespective of market conditions.
 Limitedpremiumpayment term:
With Incomesuranceyou pay premiums only for the first 7 policy years and
enjoy Guaranteed Annual Payouts from the 8th
to the 14th
policy year.
 Protectionof Critical Illness Benefit:
In an era of growing health concerns and uncertainties, this benefit offers
you a financial cushion against a pre-defined list of illnesses.
 Life Cover:
You get a life cover for the complete policy term of 14 years. In the
unfortunate case of an eventuality during this period, your family will get a
lump sum amount regardless of any guaranteed annual payouts or Critical
Illness Benefit received earlier.
 Tax Benefits:
You can avail tax deduction under Section 80C on the premiums you pay
towards your Incomesurance 7 pay plan. Also the benefits you receive
under this plan attract tax benefits under Section 10(10D) of the Income
Tax Act, 1961.
 Flexibility tochoose your premiumamount:
You can decide your annual premium amount basis the Guaranteed Annual

Payouts desired, and the quantum of financial protection you want for your
family.
Childsurance:
Whether your child wants to be a doctor, an engineer, an MBA, a sportsman, a
performing artist, or dreams of being an entrepreneur, the IDBI Federal
ChildsuranceDreambuilder InsurancePlan will keep you future-ready against
both, changing dreams and life’s twists. Itallows you to create build and manage
wealth by providing severalchoices and great flexibility so that your plan meets
your specific needs. However, whatmakes Childsurancea must-havefor any
parent who is looking to make their child’s future shock-proof is its powerful
insurancebenefits.
This plan ensures your child’s future financial needs are fulfilled. Childsurance, is
designed to give you guaranteed annual payouts and aid the important
milestones in your child’s life. What’s more, in the unfortunate event of you not
being around, the policy will continue exactly as you had planned it, without any
further premiums being paid. .In other words, this plan ensures that your child
gets to live his/her dream exactly as you have planned, whether or not you are
around.
Age at entry - Insured
Person(Parent)
Minimum 18 years
Maximum Regular payment option: 40 years
Limited payment option: 50 years
Age at entry -
Nominee (Child)
Greater than one month and less than 18 years
of age
Maturity age (Insured Minimum 28 years

Person) Maximum Regular payment option: 65 Years
Limited payment option: 75 years
Policy term Minimum 10 years
Maximum 25 years
Premiumpayment term Regular payment option: Equal to
policy term
Limited payment option: 5 years less
than the policy term
Premiumpayment
frequency
Yearly, and monthly by ECS, standing
instructions or direct debit only
Premium
(exclusive of service tax and
education cess)
Minimum Yearly: Rs.16,000, Monthly: Rs.1,000
Loading factor of 0.09 is applicable
for monthly premium payment
frequency
Maximum No limit (subjectto underwriting)
Maturity SumAssured Minimum Subjectto aboveminimum premium
Maximum No limit, subjectto underwriting
the steps given below while buying Childsurance Savings:
1. Decide the amount of guaranteed annual payouts you would need. This will
depend on your plans for your child’s future.
2. Basis the amount of payouts, you should choose the Maturity Sum Assured
(MSA). Guaranteed annual payouts are percentages of MSA such that sum
of all guaranteed annual payouts equal to the MSA.
3. Next, choose when and for how long you would need the payouts – the
difference between your child’s current age and the age at which the
guaranteed annual payouts should end, will be the policy term. Accordingly,
you will know whether you will get 3 or 5 guaranteed annual payouts. This

can help you plan your child’s future better.
If you choose a Policy Termof 15 to25 years, youwill receive 5 Guaranteed
annual payouts in the last 5 years of your policy with20% of Maturity Sum
Assuredeachyear.
 Guaranteedannual payouts for important milestones
Childsurance® gives you guaranteed annual payouts either in the last 3 or
last 5 years of the policy, depending on the policy term you choose.
 Bonuses toadd to your savings
Right from the 1st year, you get reversionary bonus. Along with

reversionary bonus, interim and terminal bonuses (if any) would also be
paid out at maturity.
 Immediate payout of lump sum incase of your unfortunate death
In case of an unfortunate event, the death sum assured will provide for
your child’s immediate needs.
 Waiver of future premiums
In case of an unfortunate event of you not being around, all future
premiums of the policy will be waived off.
 Plan continues and benefits are paidas planned
Even in the unfortunateevent of death, the guaranteed annual payouts and
bonuses will be paid on their respective due dates.
 Two tax benefits
Childsurance® allows you to enjoy deductions under Section 80C of the
Income Tax Act, 1961 on the premiums you pay. It also gives you maturity
amount that is tax-free under section 10(10D). Childsurance offers you tax
benefits for all the payouts.
 Flexibility toplanfor your needs
With Childsurance®, you have the option of choosing the maturity sum
assured, policy term, premium payment term, and payment mode as per
your child’s future needs.
 Exclusive fundfor your lovedones
By endorsing your Childsurance® policy under the Married Women’s
Property Act, 1874, you can create an exclusive fund for your loved ones
which is legally protected from creditors and claimants.
 Loan facility
In case of an emergency, you can avail of the loan facility on your policy.

Loan is available once the policy attains surrender value.
Lifesurance:
is a fixed term non-linked participating plan that provides you the twin benefits of
long-term savings and life cover. With Lifesurance Savings, your small savings will
help you realise the big dreams that you have for yourself and your family. This
plan also offers you the benefit of life cover that will provide financial security to
your family in your absence.
Age at entry (last
birthday)
Min 18 years
Max 55 years
Age at maturity (last
birthday)
75 years
Policy terms and premium
payment terms available
Policy
term(s)
Premiumpayment term(s)
available
10 years Only 5 years premiumpayment
term is allowed
15 , 20, 25
years
Min: 5 years
Max: Equal to policy term
Premiumpayment
frequency
Yearly, half yearly, quarterly and monthly
Premium Min Yearly Rs. 10,000, Half Yearly Rs. 5,000,

Quarterly Rs. 2,500 and Monthly - Rs. 1,000
Max No limit (subjectto underwriting
Maturity sum
Insured
Min Depends on age, premium paymentand policy
term
Max No limit (subjectto underwriting)
MainFeatures:
 Lump sum payout at Maturity
At maturity, you receive maturity sum insured (guaranteed from the day of
commencement of the policy), plus vested guaranteed additions, plus
vested reversionary bonuses, plus interim bonus and terminal bonus (if
any).*
 Guaranteed Additions to safeguard your savings**
Lifesurance gives you the benefit of guaranteed additions that safeguards

your investment. In the first 5 years of the policy, you get guaranteed
additions at the rate of Rs. 50 per Rs. 1,000 of maturity sum insured, for
each full annual premium paid when due.
 Bonuses to boost your savings
From the 6th policy year, your Lifesurance policy will receive reversionary
bonus which will be accrued to your policy at the end of each policy year. If
your policy has any terminal bonus, it will be paid out at maturity or on
death.
 Flexibility to plan for your needs
You have the freedom to choose the right combination of policy term and
premium payment term as per your needs.
 Double Protection – Accidental Death Benefit#
Your nominee will get an additional payout in the unfortunate event of an
accidental death during the premium payment term.
 High Sum Insured Rebate
Lifesurance offers attractive premium discounts, if you opt for a maturity
sum insured of Rs. 10 lac and above.
 Advantage Women
Lifesurance offers an additional premium discount for female lives. The
premium payable for a female policyholder will be equivalent to the
premium for a corresponding 3 year younger male policyholder.
 Exclusive funds for loved ones
By endorsing your LIfesurancepolicy under Married Women’s Property Act,
1874, you can create an exclusive fund for your loved ones which is legally
protected from creditors and claimants.
 Loans

The policy has loan provision of upto 85% on the policy’s surrender value.
 Tax Benefits
Lifesurance allows you to enjoy deductions under section 80C(of the
Income Tax Act,1961) on all premiums paid. The maturity benefit and the
death benefit are also tax-free under section 10(10D).(of the Income Tax
Act,1961)

Size of the company
In terms of manpower
 The Company has a strong and committed team of 2,283 employees as
of March 31, 2015 and over 10,000 agents who areworking for the
company.
In terms of Turnover
 The size of the company in terms of turnover is approximate 1000 crore.
 The achieved its break even in just5 years and is making huge profits.

Market Share & Position of the company
Market Share of all life insurancecompanies in India end of march 2012:

Market Position
 8th ranking for single premium against14th recorded last year (13-14).
 13th rank in new business (individuallife)

Organizational Structure

Objective of the study
 To find out whether the current Advertising strategies are effective in
attracting people.
 To find out what type of ads the customers like with respect to insurance
products.
 To find why company doesn’tadvertiseaggressively throughoutthe year.
 To suggesta new way of advertising for the company based on people’s
awareness aboutthe brand IDBI Federallife insuranceco ltd.
 To suggestthe company to advertiseregularly in order to increase market
share.
 Also to suggestthat company should advertiseon platform wheremost
audience are
 To make an effective advertising strategy for the company.

Source of Data collection
Primary Data
I’llbe collecting the primary data by collecting information fromthe customers
through structured Questionnaire and also through faceto face & by sharethe
questionnaireonline with customers.
Secondary Data
I’llbe collecting secondary data through internet, company’s website, articles,
blogs, newspaper, magazines etc.

SWOT Analysis
Strength
o Products
o 9.24 croreB.E.P. in 5 years
o 2nd company to achieve such success
o Brand name
Weakness
o National level advertisement
o Low frequented promotional activities.
o Low awareness among ruralpeople
Opportunity
o Market expansion.
o Still around only 6 percent of the marketis insured
o To track the uncovered ruralareas
Threat
o Tough competition from marketleader LIC
o IRDAI intervention
o FDI limit increased to 49%.

Data collection in field of marketing
Questionnaire:
1. What is your gender ?
( ) Male
( ) Female
Findings
The same size is almost equally balance among the two genders.
2. What is your age ?
( ) 20-25
( ) 26-30
( ) 31-35
( ) 36-40
( ) 40 & above

Findings
Most of the respondentis between the age of 20-25
3. What is your profession ?
( ) Professional–Doctor, Lawyer, CA, CS etc
( ) Businessman
( ) Employee
( ) Student
Findings
Most of the respondentare students and few are employees

4. You belong to which income group?
( ) Below 1 lac
( ) 1 lac-2.5 lac
( ) 2.51 lac-4 lac
( ) 4.01 lac-6 lac
( ) 6.01 lac & above
Findings
A huge size of respondents belongs to below 1 lac income group also
16% of respondentbelongs to income group more than 6 lac.
5. Do you have any insurance?
( ) Yes
( ) No

Findings
56% of people are insureamong all the respondents butstill 44% of
aren’t that shows that there is huge potential in market.
6. Do you plan to invest in any insurancepolicy in the near future?
( ) Yes
( ) No
Findings
48% of respondents are planning to investreal soon again a sign of
potential in market.
7. If yes, whatoptions do you havein your mind?
( ) Life Plan
( ) ULIP Plan
( ) Child Plan
( ) Retirement Plan

Findings
Most the respondents are planning to investin LIFEPLAN which is 64%.
8. Fromwhich insurancecompany you would like to buy?
( ) IDBI federal
( ) LIC
( ) SBI life insurance
( ) HDFClife insurance
( ) ICICI prudential
( ) Max insurance
Findings

As expected most of the respondents wantto invest in LIC but also 36%
of people have shown interest in IDBI as wellwhich is again a positive
sign.
9. How did you secureyour firstinsurancepolicy?
( ) By Force(Influenced by others)
( ) Own Choice
Findings
75% of the people buys insuranceby the own choice rather than being
forced
10.Have you heard of IDBI federallife insurancecompany ?
( ) Yes
( ) No

Findings
75% of people knows aboutthe IDBI Federallife insurancecompany.
11.If yes, then mention the sourcefromwhere you have heard?
( ) TV ad
( ) Newspaper/Magazine
( ) Internet
( ) PersonalE-mail/ SMS
( ) Word of mouth
( ) FromIDBI Federal’s salesperson
( ) Others
Findings
Mostly its from the IDBI federal’s salesperson fromwhom customer
came to know aboutthe company and then its the TV.

12.Which of the following IDBI Federalproducthave you heard of?
( ) Incomesurance
( ) Lifesurance
( ) Wealthsurance
( ) Childsurance
Findings
Lifesuranceis the most product known among the customers.
13.Do you know any of the following unique features and benefit of IDBI
federal life insurance?
( ) tax reduction
( ) guaranteed annual payout
( ) endowmentor money back
( ) flexible payoutoption
( ) premium paymentoption
( ) lump sumcover option

( ) none of them
Findings
IDBI is know among the customers for its Tax reduction feature mostly
but also a big part of respondents doesn’tknow any of the features that
shows lack of awareness aboutthe IDBI products among thecustomers.
14.If you are not interested to buy IDBI FEDERAL insurancepolicy, can you
please write the reason?
___________________________________________________
Findings
The common reasons of not going for IDBI is the most has the Trust
issues with IDBI and Low returns.
15.On which media you spend mostof your time?
( ) Television
( ) Internet

( ) Radio
Findings
Mind bogglingly 88% of the people spends their time on Internet.
16.On which social media you spend mostof your time?
( ) Facebook
( ) Twitter
( ) Youtube
( ) Instagram
( ) Snapchat
Findings
Facebook is the most used social media and YouTube and Instagram
comes after it.

17.Which mode of advertisementattracts you most?
( ) Newspaper
( ) Television59
( ) magazine
( ) Online advertisements
( ) Hoardings/posters
( ) Others
Findings
One moretimes it proves thatONLINEmode advertisement attracts the
most.
18.What type of magazinedo you read often? (Please tick one or more)
( ) Sports
( ) Business
( ) Fashion
( ) Education
( ) Entertainment and Film
( ) Automobiles
( ) Others

Findings
Most of the people likes to read Sports and Fashion magazines.
19.Which newspaper do you read often? (Pleasetick one or more)
( ) The Hindu
( ) The Times of India
( ) The Statesman
( ) The Economic Times
( ) The Telegraph
( ) Deccan Herald
( ) Others
Findings
Most of the people prefer to read The Times of India then The Hindu
and The Economic Times.

20.You spend maximum time on which channel while watching television?
( ) News Channels
( ) Sports Channels
( ) Music Channels
( ) Movie Channels
( ) Entertainment & lifestyle Channels
( ) Science & discovery related Channels
( ) Other Channels
Findings
Most of the respondents spend their time on Music and Sports channel
when they watch tv.
21.Which type of advertisement attracts you most?
( ) Animation
( ) Originality
( ) Humor0
( ) Humor
( ) Storyline/ concept
( ) Celebrity endorsement

Findings
Audience wants to see story/concepts typeads not randomtypes plus
another favouritetype of ads which customer wants to see Animation
ones.
22.In which way would you wantto receive information related to Insurance?
( ) Print Ad
( ) MagazineAd
( ) Hoardings
( ) TV Ad
( ) Online Ad
( ) Agents
Findings

Another big finding is that people wants the advertisementon online
platformand why don’t they that’s where people spend mostof their
time.
23.On which channel you saw Insurancead mostly?
( ) News Channels
( ) Sports Channels
( ) Music Channels
( ) Movie Channels
( ) Entertainment & lifestyle Channels
( ) Science & discovery related Channels
( ) Other Channels
Findings
According to this News channel and Entertainment channels are most
used by insurancecompanies for advertising their products.
24.Which company Ad you find mostly in the media?
( ) LIC.
( ) Bajaj Allianz.
( ) ICICI Prudential.
( ) IDBI Federal.
( ) Birla Sun life.
( ) SBI Life.

( ) Max insurance
( ) Others, Pleasespecify _________________________________
Findings
LIC’s ads arethe mostspotted and then ICICI whileon the other hand
IDBI ads areharldy being spotted as IDBI doesn’tadvertisemuch
throughoutthe year.
25.The Insuranceads messageis relevant to you ?
( ) Yes
( ) No
Findings
Most of the people finds the messages of ads relevant to them.
26.How often did you see IDBI Federaladvertisementin Television in last
month?
( ) 0
( ) 1-3

( ) 4-7
( ) More than 7
Findings
Another eyebrow raising finding is that 60% of respondents has notseen
the advertisements of IDBI atall which is a big worry.
27.How did you describethe advertisement? (If you haveseen any
advertisement of IDBI Federal, then only answer this question)
( ) Convincing
( ) Justfor the purposeof sale
( ) Building relationship between company & consumer
( ) satisfying your needs
Findings
One positivething has come out that mostof the respondents finds
advertisement of IDBI arerelationship building, which is a positive thing.

28.Do you feel you need to see more advertisements to know about the
products of IDBI Federal?
( ) Yes
( ) No
Findings
More than 70% respondents wants to see more advertisementto know
more about the product.
29.Rate on the scale of 1 – 5, Brand Name influences you to take decision on
buying the policy? (1 being least influential and 5 being mostinfluential)

Findings
In the above graph we can notice that Brand Name is another big factor
that influences the customer and IDBI havealready that advantage
30.Rate on the scale of 1 – 5 Advertisementinfluences you to take decision on
Findings
Another big factor that influences the mostof consumer’s buying
decision is Advertising.
31.Rate on the scale of 1 – 5, Policy features influences you to take decision on
Findings
Policy feature are another factor that highly influence the customer’s
buying decision .

32.Rate on the scale of 1 – 5, Agent’s persuasion influences you to take
decision on buying the policy? (1 being least influential and 5 being most
influential)
Findings
As we can see in graph wecan notice people to feel like that agent’s
persuasion is what makes them buy the policy.
33.Do you think IDBI Federal advertisemorein order to keep its high presence
in the market?
( ) Yes
( ) No
( ) No need
Findings
In abovepie chart wecan see that 40% respondents wasn’tIDBI to
advertisemore rather than justadvertising FED – MAR.

34.Do you think IDBI federalneeds to have more presencein Facebook and
Twitter?
( ) Yes
( ) No
( ) Maybe
Findings
Respondents do feel like that IDBI should havemorepresencein
Facebook and Twitter, as most of the competition is at the both
platforms.
35.Do you think IDBI federalneeds to have a mobile app?
( ) Yes

( ) No
Findings
The 80% respondents feels that IDBI should haveits own mobile app
fromwhere they can gain knowledgeabout company’s product and etc

Promotional activities adopted by IDBI Federal
Theoretical background
Promotion it is an action taken by a company's marketing staff with the intention
of encouraging the sale of a good or service to their target market. For example,
productpromotion performed by a typical business might take the form of
advertising the productin question via printor Internetads, direct mail or e-mail
letters, trade shows, telephone and personalsales calls, TV and radio ads,
billboards, posters and flyers. Promotion is one of the market mix elements, and a
term used frequently in marketing. These elements are: Personalselling,
Advertising, Sales promotion, Direct marketing and Publicity
A promotional mix specifies how much attention to pay to each of the five
subcategories, and how much money to budget for each. A promotional plan can
have a wide rangeof objectives, including: sales increases, new product
acceptance, creation of brand equity, positioning, competitive retaliations, or
creation of a corporateimage. Fundamentally, however there are three basic
objectives of promotion. These are:
1. To presentinformation to consumers as well as others.
2. To increasedemand.
3. To differentiate a product
Introduction:
Promotion is one of the four elements of marketing mix (product, price,
promotion, and place). Itis the communication link between sellers and buyers
for the purposeof influencing, informing, or persuading a potential buyer's
purchasing decision.
The following are the three types of promotion:
1. Above the Line (ATL) Promotion: Refers to promotional activities done at
macro level. Itis done at national, regional or at bigger territory level and mass

audience is covered in this type of promotion. A brand image is created about the
company and its product. Media such as television, cinema, radio, newspapers,
and magazines are used to create an impact about the company and its product.
ATL communication is moreof conventional in nature.
2. Below the Line (BTL) Promotion: Itis unconventionalin nature, done at micro
level and forms partof non-media communication. Measures include direct
mailing, distribution of flyers, brochures, and usageof sponsorships, public
relations, telemarketing, point of sale and conducting activities and campaigns for
a specific audience. Today, ATL is used for branding effect, to generate mind share
while BTL is used to generate loyalty and repeat sales. ATL is tailored for mass
audience while BTL promotions are targeted at individual level according to their
needs and preferences. ATL promotions are difficult to measure while BTL are
measurablein terms of sales and feedback and it gives marketers valuable
insights on their return on investment (ROI). SinceBTL focus is targeted and
customer centric, it is efficient and cost effective, apt for start-ups. Social
networking sites such as face book, twitter, my space, you tube help generate
leads and enable companies to develop eCRM and use data in a varieties of ways.
Though, social media is an integral partof BTL activity today, but it beats even
television, audio, magazines in creating brand value in terms of numbers and is
way more rewarding.
3. Through the Line (TTL) Promotion: “Through the line” refers to an advertising
strategy involving both above and below the line communications. This strategic
approach allows brands to engage with a customer at multiple points (for
example, the customer will see the television commercial, hear the radio advert
and be handed a flyer on the street corner). This enables an integrated
communications approach whereconsistent messaging across multiple media
create a customer perception. The advent of social media has blurred the ‘line’
segregating the marketing techniques.
These days, companies usean integrated approach involving both ATL and BTL
and it is called Through The Line (TTL) approach. This approach allows brands to

engage with their customers at multiple points and thus generate a solid
perception regarding the company and the product, the main aim of Marketing.
Promotional strategiesof IDBI Federal life insurance Co.
 The last time when IDBI FederalLifeInsuranceadvertised on print and
outdoor, it was known as IDBI Fortis. Amish Tripathi, national head marketing
and productmanagement, explained, "Earlier, the shareholding was 48 per
cent IDBI, 26 per cent Federal Bank and 26 per cent Fortis. The shareholding
remains the same, but due to a restructuring sixmonths ago, Fortis has
become Ageas .Now the team thought they had to rebrand in any case[from
IDBI Fortis to IDBI Federal], this was a good opportunity to give the Indian
brand a lot of prominence, since Federal is a known brand."
 There has been no shiftin the positioning as such, but there is a changein the
treatment seen in the new campaign, which has been created by Ogilvy &
Mather. The strategy has always been to focus on the products. IDBI federal
believes its products are their differentiator and they add tremendous value to
the consumer. Thecompany has tried to communicate the benefits of its
products in a humorous manner, whereit’s a little more lighthearted.
Otherwise, insurancefilms can be a little heavy.
 In January, 2011 IDBI Federallife insurancelaunched its wealthsuranceplan. In
the firstone, a thief catches hold of an IDBI agentin a dark alley. And while the
camera pans out, you expect the worstto happen to the poor agent. But later
we discover, like a true salesman, the dude not only survives, hemanages to
sell the 'Wealthsurance'Plan to the thief.
 Punch line: 'IDBI Federalka Wealthsurance- Jisne bhi suna, kharid liya'. In the
second advertisement a wealthy businessman decides to forsakeall his
material possessionsto embark on a spiritual journey, much to the dismay of
his near and dear ones. Just as he's leaving, however, an IDBI Federal
representative arrives for his appointment with the man and proceeds to tell
him all about the WealthsuranceMilestone Plan. The man changes his mind

about leaving and asks his assistantfor his cheque book instead. The voiceover
then says, "Jisnebhi suna, khareed liya [Whoever heard of it, boughtit]."
 'A Suitable Boy', a young man is grilled about his future plans for the girl he
wants to marry, by her protective father and brother. He responds with
specific things he will gift her on the exact dates it will happen in the coming
years. The voiceover reveals it's because he has "Guaranteed income ki exact
bhavishyawani" with IDBI FederalIncomesurance. When asked whether
humor in selling financial products is a trend that would continue in 2011,
Abhijeet Avasthi, national creative director of Ogilvy & Mather, said, "There’s
no one way of doing it. Some insuranceplayers work in the warm, emotional
area, there are some who play in the realistic, borrowed fromlife insightarea,
and somewho play more on doing stuff which brings a smile and breaks
clutter. Different players havedifferent objectives. In this case, IDBI Federal
knew they wanted to dramatize the product benefit, give enough importance
to the nomenclature, and do it in a clutter breaking way."
 The plan is positioned as "the child plan that does not fail" with the tagline,
'Plan Jo Fail Na ho'. The ads showcasepeople who missed their calling in life
when they wereunable to get admission for higher education due to lack of
funds and this is told through two ads with IDBI Federal's trademark humorous
storyline. The campaign is conceptualized by Ogilvy & Mather and executed by
Curious Films, and aims to differentiate Childsurancefrom other methods of
planning for children's education which may fail if they fall shortat the last
minute.
 IDBI FederalLife’s television commercials focused on its frontline products –
Wealthsuranceand Incomesurance. Thecampaign taglines are “Jisne bhi suna
khareed liya” and “Guaranteed IncomekiBhavishavani…” Whereas the first
advertisement reflects that the product is so great that whoever hears about
it, buys it instantly, the second advertisementpromises to be clear and
transparenton the issueof returns in the investment product. IDBI Federalhas

also introduced two animation characters by the name of Happy and Lucky to
promote the brand.
PROMOTIONS STATS ATIDBI FEDERAL LIFEINSURANCECOMPANY LIMITED
Following are the main ways in which IDBI Federallife Insurancecompany ltd
promotes its products/services and creates awareness in the market.
 PRINTMEDIA:The main ways of advertising via printmedia are as follows:
 Newspaper
PAPER PAGE COST (IN Rs.)
Economic times 3rd 320 per sq. cm
TOI 3rd 320 per sq. cm
Hindu 1st 400 per sq. cm
 Hoardings
As of now, the total number of hoardings which areput up in Hyderabad
region counts to a good 17 number.
COST (IN Rs.) TIME LEASE
4,00,000 3 months
 Pamphlets
Pamphlets are distributed across India atleast 5 times in a month without
any cost. It’s doneto create maximum awareness aboutthe
products/services.
 Magazines
There is no specific magazinein which advertisement is given. Its given in
magazines depending upon their sales and reputed magazines like Outlook,
Money etc. The advertisement is given every month at least once in any
magazine.
 TELEVISION
Mainly, the advertisement is shown on cricket channels, Star channels. The
main promotions were done during FEB & MARCH to:
 Highlight Tax benefits.

 To combat competition as all the Insurancecompanies would advertise
during this time at a great frequency.
Also the company started displaying their advertisements on Satellite TV like SUN
network, etc.
 CREATING TV COMMERCIAL: Thecomplete cost of making a commercial
which includes all the equipments, actors, etc is approximately Rs.20 lacs.
The company has tie-up with Ogilvy and Mather as its advertising agency
along with Equinox (TLG) as its media partner. The life of usage of a single
television commercial is 2 years.
 RUNNING THETVC: Following are the costs associated with running the
TVC:
REGION/CHANNEL COST (IN Rs.) DURATION/SLOT
Tamil Nadu 45,000 10 seconds
Local channels 6,000-8,000 10 seconds
Cricket channels 60,000 Onwards 10 seconds
Mainly the ads are shown in between TV soaps and Cricket matches to gain
attention of the consumers.
 DISTRIBUTORS: A strong network of distributors and parent advisors also
helps a lot in promoting products/services of IDBI Federalby WORD OF
MOUTH. A Viral campaign is also run on the Internetby wherein flash
videos of working of products is explained in a very humorous manner. The
same is shown on www.bosskaboss.com
 LOCAL EVENTS: Some great events are also conducted in and out the city to
create more awareness aboutthe IDBI Federaland free gifts are given
wherein local marketing people interact with the prospects and try to
gauge their financial needs and respectively pitch the products. The overall
costs associated with such events totals to Rs.2,00,000per annumsuch
events are mainly conducted in Apartments, Schools, etc.

Balance Sheet of the Company

Cash flow statement

P & L Statement

Marketing mix
The term insurance marketing refers to the marketing of Insurance services with
the aim to create customer and generate profit through customer satisfaction.
The InsuranceMarketing focuses on the formulation of an ideal mix for Insurance
business so that the Insurance organization survives and thrives in the right
perspective.
The marketing mix is the combination of marketing activities that an organization
engages in so as to best meet the needs of its targeted market. The Insurance
business deals in selling services and therefore due weight age in the formation of
marketing mix for the Insurance business is needed.
The marketing mix includes sub-mixes of the 7 P’s of marketing i.e. the product,
its price, place, promotion, people, process & physical attraction. The above
mentioned 7 P’s can be used for marketing of Insuranceproducts, in the following
manner:

PRODUCT:
A product means what we produce. If we produce goods, it means tangible
product and when we produce or generate services, it means intangible service
product. A product is both what a seller has to sell and a buyer has to buy. Thus,
an Insurance company sells services and therefore services are their product.
When a person or an organization buys an Insurance policy from the insurance
company, he not only buys a policy, but along with it the assistance and advice of
the agent, the prestige of the insurance company and the facilities of claims and
compensation. It is natural that the users expect a reasonable return for
their investment and the insurance companies want to maximize their
profitability. Hence, while deciding the product portfolio or the product-mix,
the services or the schemes should be motivational. IDBI Federal provides many
products which cater to the needs of the Indian customers. IDBI Federal
products:-
 Wealthsurance
 Childsurance
 Incomesurance
 Lifesurance
PRICING:
In the insurance business the pricing decisions are concerned with:
i) The premium charged against the policies
ii) Interest charged for defaulting the payment of premium and credit facility, and
iii) Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of
pricing strategy becomes significant. In a developing country like India where the
disposable income in the hands of prospects is low, the pricing decision also
governs the transformation of potential policyholders into actual
policyholders. The strategies may be high or low pricing keeping in view the level
or standard of customers or the policyholders. The pricing in insurance is in the
form of premium rates.
The three main factors used for determining the premium rates under a life
insuranceplan are mortality, expense and interest. The premium rates are revised
if there are any significant changes in any of these factors.
 Mortality (deaths in a particular area): When deciding upon the pricing
strategy the average rate of mortality is one of the main considerations. In a
country like South Africa the threat to life is very important as it is played by
host of diseases.
 Expenses: The cost of processing, commission to agents, reinsurance
companies as well as registration are all incorporated into the cost
of instalments and premium sum and forms the integral part of the pricing
strategy.
 Interest: The rate of interest is one of the major factors which determine
people’s willingness to invest in insurance. People would not be willing to put
their funds to invest in insurance business if the interest rates provided by
the banks or other financial instruments are much greater than the perceived
returns from the insurance premiums.

PLACE:
This component of the marketing mix is related to two important facets
i) Managing the insurance personnel, and
ii) Locating a branch.
The management of agents and insurance personnel is found significant with the
viewpoint of maintaining the norms for offering the services. This is also
to process the services to the end user in such a way that a gap between the
services- promised and services offered is bridged over. In a majority of the
service generating organizations, such a gap is found existent which has been
instrumental in making worsethe image problem. The transformation of potential
policyholders to the actual policyholders is a difficult task that depends upon the
professional excellence of the personnel.
The agents and the rural career agents acting as a link, lack professionalism. The
front-line staff and the branch managers also are found not assigning due weight
age to the degeneration process. The insurance personnel if not managed
properly would make all efforts insensitive. Even if the policy makers make
provision for the quality up gradation, the promised services hardly reach to
the end users.
It is also essential that they have rural orientation and are well aware of the
lifestyles of the prospects or users. They are required to be given adequate
incentives to show their excellence. While recruiting agents, the branch managers
need to prefer local persons and provide them training and conduct seminars. In
addition to the agents, the front-line staff also needs an intensive training
programmed to focus mainly on behavioral management. Another important
dimension to the Place Mix is related to the location of the insurance branches.

While locating branches, the branch manager needs to consider a number
of factors, such as smooth accessibility, availability of infrastructural facilities and
the management of branch offices and premises. In addition it is also significant
to provide safety measures and also factors like office furnishing, civic amenities
and facilities, parking facilities and interior office decoration should be given
proper attention.
Thus the place management of insurance branch offices needs a new vision,
distinct approach and an innovative style. This is essential to make the work place
conducive, attractive and proactive for the generation of efficiency among
employees. The branch managers need professional excellence to make place
decisions productive. IDBI Federal has around thousands and thousands of
insurance agents all over India to manage their regional customers effectively.
Also, IDBI Federal has over 796 branches all over India which help in increasing
their customer base.
PEOPLE:
Understanding the customer better allows in designing appropriate products.
Being a service industry which involves a high level of people interaction, it is very
important to use this resource efficiently in order to satisfy customers. Training,
development and strong relationships with intermediaries are the key areas to be
kept under consideration. Training the employees, use of IT for efficiency, both
at the staff and agent level, is one of the important areas to look into. IDBI
Federal has created various financial products which have been tailored according
to the needs of the customers. They have over thousands of sales personnel who
are trained efficiently to bridge in the gap between the customers and the
company.
PROCESS:

The process should be customer friendly in insurance industry. The speed and
accuracy of payment is of great importance. The processing method should be
easy and convenient to the customers. Instalmentschemes should be streamlined
to cater to the ever grow.
Promotion:
The insurance services depend on effective promotional measures. In a country
like India, the rate of illiteracy is very high and the rural economy has dominance
in the national economy. It is essential to have both personal and impersonal
promotion strategies.
In promoting insurance business, the agents and the rural career agents play an
important role. Due attention should be given in selecting the promotional tools
for agents and rural career agents and even for the branch managers and front
line staff. They also have to be given proper training in order to create impulse
buying. Advertising and Publicity, organization of conferences and seminars,
incentive to policyholders are impersonal communication. Arranging Kirtans,
exhibitions, participation in fairs and festivals, rural wall paintings and publicity
drive through the mobile publicity van units would be effective in creating the
impulse buying and the rural prospects would be easily transformed into actual
policyholders.
IDBI Federal has also adopted various promotional strategies like:
 Commercial Ads
 Print Ads
 Events
 Personnel selling
 Word of mouth
 viral marketing

FINDINGS and RECOMMENDATION
Findings
 Company still lacks in creating awareness among the customers.
 Customer knows aboutthe brand IDBI FederalLifeinsurancebut hardly
about its productand their features.
 Though brand name plays an important role in influencing the customer
but also advertisementplay even bigger role.
 There is hardly any presenceof company on online platform wherethe
huge portion of population spends their most of time, also they find online
advertisement moreattractive than TV.
 60% of people do insurancefor tax saving and other 40% to cover risks and
uncertainties and this shows that the company’s strategy to only
advertising in the month of FEB & MAR becausethat’s time people go for
tax savings and all is not so fully good enough.
Recommendations
The suggestions havebeen classified into two categories.
 Action oriented suggestions
 People oriented suggestions
ACTIONORIENTED SUGGESTIONS

 An intense AIDA model needs to be adopted the AIDA model (Awareness,
Internet, Desireand Action). As it helps in creating awareness of majority of
products of IDBI FEDERAL LifeInsuranceCo. Ltd. to the customers.
 Print & Electronic Media Advertisementshould be done (as we can see
intense ad campaign of HDFCStandard Life & Bajaj Allianz.)
 Hoardings at prime areas should be used.
 Company should try to make their customers satisfied through their
advertisements about their product.
 Company should go for Online campaigns and show their presenceon
facebook and twitter.
 Company should advertisethroughoutthe year as a reminder and
aggressively in the months of FEB & MAR.
 In order to increase marketshare advertising on all the platforms
throughoutthe year is very important, company should aim to increase it
market share0.3% every year and this can only be achieved through
consistentadvertising.
PEOPLEORIENTED SUGGESTIONS
 Creating offers like lucky draws for the users of internet.
 Giving free gifts for the customer.
SuggestedMarketing Mix
1. Product Insurancepolicy is a customer resistantproduct. The Indian economic
environmenthave changed a lot after 1999. The GDP growth rate of India in the
last decade was very high and hence the consequenceof which, we saw

substantialgrowth in inflation rate. Hence, now even a common man thinks about
investment which will give him better return to cope with inflation. So, nowadays
customer thinks a lot about the rate of return on his investment. If we made a
productwhich justgives customer life cover but not the return of investment
then this producthave a very little chances of being liked by customers. Mostof
the LIC life insurancepolicies are very poor in terms of rate of return. Hence after
liberalization like the other privatecompanies, IDBI should also create policies
which will give a higher rate of return.
The Incomesurancepolicy has a higher rate of return as compared to the other
non-linked LICpolicies. But there are few private insurancecompanies who offer
products which gives better return of investment than Incomesurance. Now, SBI
life insuranceis also coming up with products who had advantage over
Incomesurancein terms of rate of return as well as life cover. In future SBI life
insurancecan be a tough competitor for IDBI federallife insurance. Mostof the
clients whom I met were interested to buy Incomesurancebecauseof
 Higher rate of return as compared with LIC
 Additional features specially waiver of premium and flexible pat-out option
 And a policy which is backed by a governmentowned bank i.e. IDBI bank
2. Place IDBI federalis blessed with the promoters like IDBI bank and Federal
bank which together have one of the largest banking network in India. IDBI bank,
being a government owned bank, has presence in many rural areas. IDBI Federal
should capitalise on the infrastructurethat can be provided by IDBI bank. I have
visited three IDBI banks in ruralareas, but I havenot seen any advertisement in
the formof pamphlets or posters or anything related to IDBI insurance. I suggest
that we should have one small cabin or at least a table reserved for IDBI
insurance. Hence, we can increase company’s presencein rural areas and that too
in a cost effective way. The ruralareas in India is a big untapped market for
private sector insurancecompanies with presence of only one or two competitors

like LIC. IDBI Federalshould startextending its presenceover rural areas before
SBI insurancedoes it.
3. Price The price factors acts differently in case of urban and rural customers. As
shown in my research only 20% of ruralpeople are ready to pay more than
Rs.10000 as annualpremiumfor a single policy. And around 60% of urban people
are ready to pay more than Rs.10000 as annualpremiumfor a single policy.
Hence there is a hugedifference between urban and rural buying behavior
considering price as a factor. I suggestthat there should be different minimum
premium amount allocated to an urban and ruralcustomer. This can be decided
on the basis of the address of the customer. One more suggestion is that wecan
give more benefits for ruralcustomers if they are willing to pay higher annual
premium.
Many customers fromruralarea liked Incomesurancebutwere asking for annual
premium less than Rs.10000
4. Promotion IDBI Federalis quite lagging behind its competitors in terms of
promotions. Being a new company in the market, there should be aggressive
promotion done. Most of the clients whom I met didn’t know about the IDBI
federal life insurance. But mostof them knew about IDBI bank, so it was easy for
me to introduce While talking to people, I found that brand equity of LICwas far
better than any other insurancecompanies in India. People areready to pay more
to buy LICpolicy. When I tried to find out the reason behind that, I found only one
major factor - LICis a governmentowned company The main reason behind
people buying LICpolicy is the assuranceof the money they haveinvested. They
believe that being a governmentowned company, LICwill never cheat them. They
feel there money is secure. Mostof them also believe that LICgives the best rate
of return in the industry are reluctant to know about policies offered by other
private companies. This buying behaviour is morecommon in ruralareas. The fact
that, market shareof LICin 2011 -12 is 72 % is enough to provethe point. So, the
best thing IDBI Federalcan do is to focus on one of their promoters i.e. IDBI bank
which is a government owned bank. 75 % of the people whomI interviewed from

the ruralareas don’t know that IDBI bank is a government owned bank. If we
want to pull people toward IDBI federalthen IDBI bank should befirstpromoted
as a governmentbank And the tag of IDBI bank itself will attract a lot of people. I
persuaded my clients by informing them that IDBI bank is a governmentowned
bank and it worked really well. People know SBI is a governmentbank, and hence
SBI insuranceis capitalizing on that factor. IDBI bank should also be promoted as
“Government’s New Age Bank” which will not only benefit the bank but IDBI
Federal Life InsuranceCo. Ltd.
General Suggestions andStrategies
 The Company can promote its products through socialnetworking sites such as
Facebook, Twitter and LinkedIn or other popular sites where potential
customers visitfrequently like news channel sites. Customers who prefer to
read news online will be able to notice the ads if the ads areput in such sites.
 The best television marketing opportunities would be during programs
specifically aimed at the target prospects. The company can aim those
channels which potential customers seeregularly such as news channels or
sports channels. An important promotional strategy would be to roll out
advertisements during cricket matches such as IPL or one day series which will
gain a lot of popularity for the products as well as the company.
 Online E-mail newsletters should be sent to customers on a regular basis so as
to attract potential customers and retain existing clients. The newsletters will
constantly remind the clients about the products and they will re-think over
their decisions while investing in insuranceproducts and will keep IDBI federal
in mind.
 The company can host seminars aboutfinancial planning, understanding
insurance, saving money on insuranceetc.
 One morepromotional strategy is advertising through hoardings and
billboards in important public places like railway stations, airports, bus stands,
restaurants, etc.
 The company can also go for celebrity endorsements as customers go for
celebrity endorsed brands as they attach some value to the productwhen it is
endorsed by any celebrity.

 Since there are only three branch of IDBI bank and only 1 atm in Mysore, so it
is necessary for IDBI bank to open more branches and install moreatms to
servethe vastmarketof Mysore especially.
 As Government is the majority shareholder in the shares of IDBI bank, which
makes this bank more reliable than other private banks, this thing can be used
in the favor of IDBI bank by making people aware about this fact and winning
their faith.
 If welook at the promotional strategies followed in IDBI Federal, wecannot
see the portfolio of their ad investment in online advertising. The world has
been changing froma decade or so. Things are getting done easier than they
used to. Most of the people are going online over good old traditional
methods. So it’s highly important change according to the surroundings and to
invest money on online advertisements.
 IDBI should introducevariablemonthly premium, the rationale behind
introducing variable monthly premiumis non-availability of excess money.
There are some periods in the year which are highly non-productive. Say for
example the employees have an off season. After fulfilling the daily needs, it’s
extremely difficult to invest in insuranceor pay their monthly premium.
Therefore company can think of introducing the variable paymentof monthly
premium which would be flexible.
 One point the company always haveto keep in mind is that ruralmarket is
financed by government aided co-operativesocieties. All the farmers would be
the members of these societies. If weconsider the rate of returns these
societies offer, very hard to compete. 11% on the fixed deposit is way too high
to compete with.
 So apartfrom the ruralmarket, the urban and the metropolitan people are
expecting returns which is on an averagemore than the rate of returns which
the commercial banks give. So it is better if the company gives a return say 9.5-
10%. Idbishould startwith CSRactivities in the ruralareas.
 In many the cases people are ready to investon their auditor’s advice. So it
would be really better if the company collaborates with ICAI (Instituteof
Chartered Accountants of India) or some leading auditors to give ads on their
websites. Importantthing here to note is that, the websites which facilitates

the income tax payments are owned by Chartered Accountants. Thereforea
seal fromthe auditor on the company’s logo, which says recommended for
investment, can really make the company sustain. So the company heads can
startthinking about investing in online portfolio.
 Apart fromPromotion and Distribution Strategies, IDBI should keenly follow
the developments in Social Media, FDI, and Ruralsector, Global Trends,
Competitors, New Entrants, Challenges and Opportunities, Regulatory
Differences. Keeping an eye on these factors are very pivotal for Success.

Weblography:
www.google.com
www.wikipedia.org
www.yahoo.com/question-answer/
www.idbifederal.com
www.ageas.com
www.federal.com
www.irda.org
http://www.swissre.com/media/news_releases/Swiss_Re_sigma_study_on_world_insurance_in_2012_
shows_premium_growth__resumed.html
http://www.idbifederal.com/Products/Healthsurance/Pages/What-is-Healthsurance.aspx#
http://www.studymode.com/essays/Market-Segmentation-40523.html
http://en.wikipedia.org/wiki/Q_methodology

IDBI Federal Life Insurance Advertising Strategies Project

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