Project report 1

HYDERABAD Summer project on A Study on Brand Identity of LIC of India Carried out at:

Project Report-1 Submitted to: Prof. D. Surekha Thakur Wadhawan Submitted by: Ch. Jeevan Kumar Raju enrolment no. 50 BBA 2 Section A AGBS HYDERABAD

Chapter-1 PROJECT SYNOPSIS

Working Title: Brand Identity of Life Insurance Company with reference to LIC of India

Carried out at:

Prepared by: Ch.Jeevan Kumar Raju BBA 2 Section A Enrolment No: 50 AGBS Hyderabad

Working Title: Brand Identity of Life Insurance Company with reference to LIC of India Introduction to the study: Brand identity with an organization is responsible for creating a disguise brand and a product with unique characteristics. In brand identity there are questions like, what the company is about? , Core messages? , Targeted messages? , Look and Feel of the Organization? , LOGO? The concept of brand identity in marketing is unique because of the contributing elements that are: 1. Brand vision, 2. Brand culture, 3. Positioning, 4. Personality, 5. Relationship, 6. Presentations. All the above concepts are seen within the reference organization LIC of India.

Problem Statement: The main problem within the Insurance Industry with respect to the reference organizations are posing the actual problem present within the industry. The organization is not able to drive the core message which is present within the organization are because of the Brand Culture, Positioning and Relationship and the organizations goodwill is at stake. Hence forth it is important that the organizations working with in the industry should take measures with respect to brand identity. So that it’s a win-win situation for both the client and the company.

Objectives of the study as follows: The primary objective is to understand the concept of brand identity within the marketing polio. The secondary objectives are as follows: 1. To understand the concept of brand identity with respect to LIC of India. 2. To understand the procedure, culture, relationship, and presentation done by LIC of India to enhance brand identity all over India. 3. To give recommendations at the end of the study.

Significance of the Study: The study of brand identity is significant because it gives a complete clarity of the core messages, the official LOGO, Management team and services of the selected organization within the Insurance Industry.

Limitation of the study: Scope of the study is not only limited to understand the factors and the other information pertaining to the company but also would give a complete clarity on the marketing purview of the Insurance organization. The study is limited only towards understanding the purview of marketing.

Literature Review: Brand identity of any organization is known through its official LOGO, the culture of the organization, the presentation and the relationship with its clients. As on today brand identity is a big marketing concept as it is making inroads with respective to the positioning and services of an organization. The organization time and again seeing the condition of the market and relevant industry would enhance the brand identity of the organization.

Conclusion: Brand identity of an organization is important as it establishes a good rapport with the client and the Company. The client would surely refer another client as the brand identity enhanced the goodwill of the organization etc..,

Chapter-2 Introduction of Study – Marketing

Market: The term ―market‖ originates from the Latin word ―Marcatus‖ which means ―a place where business is conducted.‖ A layman regards market as a place where buyers and sellers personally interact and finalise deals. According to Perreault and McCarthy, market is defined as a group of potential customers with similar needs or wants who are willing to exchange something of value with sellers offering various goods and/or services to satisfy those needs or wants. Of course, some negotiation will be needed. This can be done face-toface at some physical location (for example, a farmer’s market). Or it can be done indirectly through a complex network that links middlemen, buyers and sellers living far apart. Depending upon what is involved, there are different types of markets which deals with products and/or services such as : (1) Consumer Market: In this market the consumers obtain what they need or want for their personal or family consumption. This market can be subdivided into two parts—fast moving consumer goods market from where the consumers buy the products like toothpaste, biscuits, facial cream etc. and services like internet, transportation etc. Another is durables market from where, the consumers buy the products of longer life like motorcycles, cars, washing machines etc. and services like insurance cover, fixed deposits in the banks and non-banking financial companies etc. (2) Industrial/Business Market: In this market, the industrial or business buyers purchase products like raw materials (iron ore, coke, crude oil etc.), components (wind-screen, tyres, picture tubes, micro-processors etc.), finished products (packaging machine, generators etc.), office supplies (computers, pens, paper etc.) and maintenance and repair items (grease, lubricating oil, broom etc.). Apart from products, now-a-days due to outsourcing the industrial buyers also require a number of services like accounting services, security services, advertising, legal services etc. from the providers of these services. (3) Government Market: In most of the countries central/federal, state or local governing bodies are the largest buyers requiring and number of products and services. Government is also the biggest provider of services to the people, especially in a developing country like India where army, railways, post and telegraph etc. services are provided by the Central Government and State Govt. and local municipality provides services like roadways and police and sewage and disposal and water supply respectively.

(4) Global Market: The world is rapidly moving towards borderless society thanks to information revolution and the efforts of WTO to lower the tariff and nontariff barriers. The product manufacturers and service providers are moving in different countries to sustain and increase their sales and profits. (5) Non-profit Market: On one hand the society is making progress in every field, on the other hand the number of problems that it is facing are also increasing. Most of the people don’t care for these problems due to variety of reasons such as—lack of awareness, lack of time, selfish nature etc. So in order to fill the void, the non-profit organisations came into being. These organisations support a particular issue or a charity and create awareness among the general public towards these issues and try to obtain financial and non-financial support. For example there are NGOs who are working towards the conservation of flora and fauna, Narmada Bachao Andolan, Chipko Andolan (to conserve the trees in Himalayan region) etc. These non-profit organisations basically need monetary support from the individuals, institutions and governments to promote a cause or a charity like old age home, free dispensary, free education, home for destitute etc. these are the major markets which exist in country. These can also be different markets which deals in a particular product or service such as Grain market (anaj mandi), vegetable and fruit market (Subzi Mandi), fish market, political market (comprising of political parties and voters) etc. which serve a specific need or want of the consumers and marketers. Marketing Numerous definitions were offered for marketing by different authors. Some of the definitions are as follows: 1. Creation and delivery of a higher standard of living. 2. Marketing is the process that seeks to influence voluntary exchange transactions between a customer and a marketer. —William G. Zikmund and Michael D’Amico 3. Marketing is the process of discovering and translating consumer needs and wants into products and services, creating demand for these products and services and then in turn expanding this demand. —H.L. Hansen. 4. Marketing is the business process by which products are matched with markets and through which transfer of ownership are affected. —Edward W. Cundiff 5. Marketing consists of the performance of business activities that direct the flow of goods and services from producers or suppliers to consumers or end-users. —American Marketing Association 6. Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others. —PhilipKotler

Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities. Globalization has led firms to market beyond the borders of their home countries, making international marketing highly significant and an integral part of a firm's marketing strategy. Marketing managers are often responsible for influencing the level, timing, and composition of customer demand accepted definition of the term. In part, this is because the role of a marketing manager can vary significantly based on a business's size, corporate culture, and industry context. For example, in a large consumer products company, the marketing manager may act as the overall general manager of his or her assigned product. To create an effective, cost-efficient marketing management strategy, firms must possess a detailed, objective understanding of their own business and the market in which they operate. In analyzing these issues, the discipline of marketing management often overlaps with the related discipline of strategic planning. Marketing management employs various tools from economics and competitive strategy to analyse the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others. Depending on the industry, the regulatory context may also be important to examine in detail. In competitor analysis, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors. Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. As such, they often conduct market research (alternately marketing research) to obtain this information. Marketers employ a variety of techniques to conduct market research, but some of the more common include: 

Qualitative marketing research, such as focus groups and various types of interviews

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Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic (on-site) observation

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Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis. A brand audit is a thorough examination of a brand’s current position in an industry compared to its competitors and the examination of its effectiveness. When it comes to brand

auditing, five questions should be carefully examined and assessed. These five questions are how well the business’ current brand strategy is working, what are the company’s established resource strengths and weaknesses, what are its external opportunities and threats, how competitive are the business’ prices and costs, how strong is the business’ competitive position in comparison to its competitors, and what strategic issues are facing the business. Generally, when a business is conducting a brand audit, the main goal is to uncover business’ resource strengths, deficiencies, best market opportunities, outside threats, future profitability, and its competitive standing in comparison to existing competitors. A brand audit establishes the strategic elements needed to improve brand position and competitive capabilities within the industry. Once a brand is audited, any business that ends up with a strong financial performance and market position is more likely than not to have a properly conceived and effectively executed brand strategy. A brand audit examines whether a business’ share of the market is increasing, decreasing, or stable. It determines if the company’s margin of profit is improving, decreasing, and how much it is in comparison to the profit margin of established competitors. Additionally, a brand audit investigates trends in a business’ net profits, the return on existing investments, and its established economic value. It determines whether or not the business’ entire financial strength and credit rating is improving or getting worse. This kind of audit also assesses a business’ image and reputation with its customers. Furthermore, a brand audit seeks to determine whether or not a business is perceived as an industry leader in technology, offering product or service innovations, along with exceptional customer service, among other relevant issues that customers use to decide on a brand of preference. A brand audit usually focuses on a business’ strengths and resource capabilities because these are the elements that enhance its competitiveness. A business’ competitive strengths can exist in several forms. Some of these forms include skilled or pertinent expertise, valuable physical assets, valuable human assets, valuable organizational assets, valuable intangible assets, competitive capabilities, achievements and attributes that position the business into a competitive advantage, and alliances or cooperative ventures. The basic concept of a brand audit is to determine whether a business’ resource strengths are competitive assets or competitive liabilities. This type of audit seeks to ensure that a business maintains a distinctive competence that allows it to build and reinforce its competitive advantage. What’s more, a successful brand audit seeks to establish what a business capitalizes on best, its level of expertise, resource strengths, and strongest competitive capabilities, while aiming to identify a business’ position and future performance. To Customer segments are often selected as targets because they score highly on two dimensions: 1) The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors; and 2) The company has the resources and capabilities to compete for the segment's business, can meet their needs better than the competition, and can do so profitably. In fact, a commonly cited definition of marketing is simply "meeting needs profitably."

The implication of selecting target segments is that the business will subsequently allocate more resources to acquire and retain customers in the target segment(s) than it will for other, non-targeted customers. In some cases, the firm may go so far as to turn away customers who are not in its target segment. The doorman at a swanky nightclub, for example, may deny entry to unfashionably dressed individuals because the business has made a strategic decision to target the "high fashion" segment of nightclub patrons. In conjunction with targeting decisions, marketing managers will identify the desired positioning they want the company, product, or brand to occupy in the target customer's mind. This positioning is often an encapsulation of a key benefit the company's product or service offers that is differentiated and superior to the benefits offered by competitive products. For example, Volvo has traditionally positioned its products in the automobile market in North America in order to be perceived as the leader in "safety", whereas BMW has traditionally positioned its brand to be perceived as the leader in "performance". Ideally, a firm's positioning can be maintained over a long period of time because the company possesses, or can develop, some form of sustainable competitive advantage. The positioning should also be sufficiently relevant to the target segment such that it will drive the purchasing behavior of target customers. To sum up the marketing branch of a company is to deal with the selling and popularity of its products among people and its customers as the central and eventual goal of a company is customer satisfaction and the return of revenue. If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a marketing strategy designed to maximize the revenues and profits of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth, market share, long-term profitability, or other goals. After the firm's strategic objectives have been identified, the target market selected, and the desired positioning for the company, product or brand has been determined, marketing managers’ focus on how to best implement the chosen strategy. Traditionally, this has involved implementation planning across the "4 Ps" of : product management, pricing (at what price slot does a producer position a product, e.g. low, medium or high price), place (the place or area where the products are going to be sold, which could be local, regional, countrywide or international) (i.e. sales and distribution channels), and Promotion. Now a new P has been added making it a total of five P's. The fifth P is politics, which affects marketing in a significant way. Taken together, the company's implementation choices across the 4(5) Ps are often described as the marketing mix, meaning the mix of elements the business will employ to "go to market" and execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver a compelling value proposition that reinforces the firm's chosen positioning, builds customer loyalty and brand equity among target customers, and achieves the firm's marketing and financial objectives.

In many cases, marketing management will develop a marketing plan to specify how the company will execute the chosen strategy and achieve the business' objectives. The content of marketing plans varies from firm to firm, but commonly includes: 

An executive summary

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Situation analysis to summarize facts and insights gained from market research and marketing analysis The company's mission statement or long-term strategic vision A statement of the company's key objectives, often subdivided into marketing objectives and financial objectives The marketing strategy the business has chosen, specifying the target segments to be pursued and the competitive positioning to be achieved

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Implementation choices for each element of the marketing mix (the 4(5)Ps)

More broadly, marketing managers work to design and improve the effectiveness of core marketing processes, such as new product development, brand management, marketing communications, and pricing. Marketers may employ the tools of business process reengineering to ensure these processes are properly designed, and use a variety of process management techniques to keep them operating smoothly. Effective execution may require management of both internal resources and a variety of external vendors and service providers, such as the firm's advertising agency. Marketers may therefore coordinate with the company's Purchasing department on the procurement of these services. Under the area of marketing agency management (i.e. working with external marketing agencies and suppliers) are techniques such as agency performance evaluation, scope of work, incentive compensation, RFx's and storage of agency information in a supplier database. Database is a critical thing to manage, but easy to allocate. While vendor allocation having complications to resolve but easy to handle. Marketing management employs a variety of metrics to measure progress against objectives. It is the responsibility of marketing managers – in the marketing department or elsewhere – to ensure that the execution of marketing programs achieves the desired objectives and does so in a cost-efficient manner. Marketing management therefore often makes use of various organizational control systems, such as sales forecasts, sales force and reseller incentive programs, sales force management systems, and customer relationship management tools (CRM). Recently, some software vendors have begun using the term "marketing operations management" or "marketing resource management" to describe systems that facilitate an integrated approach for controlling marketing resources. In some cases, these efforts may be linked to various supply chain management systems, such as enterprise resource planning (ERP), material requirements planning (MRP), efficient consumer response (ECR), and inventory management systems.

STRATEGIC MARKETING MANAGEMENT

To thrive in a highly competitive marketplace, companies must develop marketing plans that align them with their customers and differentiate them from their competitors. Without integrated and innovative strategies, corporate leaders will struggle to create value and generate growth. This program explores the principal concepts and tools of contemporary marketing management, from market segmentation and product positioning to the design of distribution channels and communications strategy. As you examine marketing from a value-creation perspective, you will learn to evaluate the competitive advantage and potential of the unique goods and services your organization offers. Participating in classroom presentations, discussions, team problem solving, and in-depth case-study analysis, you will strengthen your capacity to: 

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Analyse and understand customer needs and buying behaviour Understand competitor strengths and weaknesses Identify shifts in the technological, regulatory, and cultural context of business Partner with collaborators to build go-to-market power Understand marketing program development and implementation

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Comprehend your role in a fully integrated, strategic marketing plan

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Marketing is a business function that identifies consumer needs, determines target markets and applies products and services to serve these markets. It also involves promoting such products and services within the marketplace. Marketing is integral to the success of a business, large or small, with its primary focus on quality, consumer value and customer satisfaction. A strategy commonly utilized is the "Marketing Mix". This tool is made up of four variables known as the "Four P's" of marketing. The marketing mix blends these variables together to produce the results it wants to achieve in its specific target market.

Product Products are the goods and services that your business provides for sale to your target market. When developing a product you should consider quality, design, features, packaging, customer service and any subsequent after-sales service. Place Place is in regards to distribution, location and methods of getting the product to the customer. This includes the location of your business, shop front, distributors, logistics and the potential use of the internet to sell products directly to consumers.

Price Price concerns the amount of money that customers must pay in order to purchase your products. There are a number of considerations in relation to price including price setting, discounting, credit and cash purchases as well as credit collection. Promotion Promotion refers to the act of communicating the benefits and value of your product to consumers. It then involves persuading general consumers to become customers of your business using methods such as advertising, direct marketing, personal selling and sales promotion. When it comes to determining a price for your products, it is important to ensure that you are able to cover all of the costs involved in bringing the product to the market whilst also leaving a margin from which to make a profit. It is also important to consider what your target market is and what they are prepared to spend. In general, there are three types of costs you need to consider; Fixed Costs The expenditures that do not change regardless of the business's volume of sales. These must be covered no matter what sales you achieve. Examples include rent, license fees and interest to be paid on business debts. These depend on the operational activities of the business. That is, as the volume of sales and production activities change, so does the level of costs. Examples include material costs that are inputs to the production process. These depend on the operational activities of the business. That is, as the volume of sales and production activities change, so does the level of costs. Examples include material costs that are inputs to the production process. Variable Costs These depend on the operational activities of the business. That is, as the volume of sales and production activities change, so does the level of costs. Examples include material costs that are inputs to the production process.

Semi Fixed Costs Are costs that have a fixed component and a variable component such as infrastructure expenses (telephone line rental and usage, electricity, water). Your pricing should reflect the levels of these costs and cover your expenses at the very least. In the initial stages of developing a business, profit levels may be low; however you should aim to increase the level of profit as your business grows. It is important to have a pricing strategy that is tailored to your target market. There are various ways of setting prices as outlined in the following:

Mark-up pricing Mark-up is the difference between the costs of producing and selling a product (fixed costs plus variable costs) and the market selling price of the product. It is the difference between what you spend to produce the product and what the customer spends to purchase it. It is calculated as follows: Fixed Cost per unit = Total Fixed Cost / Units Produced Variable Cost per unit = Total Variable Costs / Units Produced Selling Price = Fixed Cost per unit Variable Cost per unit Desired Profit Margin Desired profit margin is the amount of profit you would like your business to make above your production costs. It can be expressed as a percentage of the total costs. Value-based pricing Value-based pricing sells the product at the price based on the customer's perceived value of the product. A good example where such a pricing system is used is on luxury items where the actual value is quite different from the perceived value. For example, a luxury item may not actually cost nearly as much to make as what people are prepared to pay for it. It is important to note that this method of pricing is based on a sound understanding of how customers judge value and may only be possible after a product has a strong reputation. Target return pricing Using this strategy, a business first determines what level of demand there is for the product and then identifies the desired profit the business would like to make from the product. The price is calculated by dividing the total desired profit by the expected level of sales. Therefore, by meeting the level of expected sales, a certain amount of profit will be received. Going-rate pricing In the situation where the business is in a competitive market, the business charges the average price of what its competitors are charging for a similar or the same product. This may be the case where there is only a small amount of competition and the product is a necessity. It is sometimes in a business's best interest to not compete by undercutting their competition.

MARKETING OF LIFE INSURANCE – GLOBAL SCENARIO Most life insurance contracts put the agent on pure commission compensation. That means if you're not selling, you're not feeding your family or sleeping indoors. With fierce competition and tough financial times, successful agents’ use every strategy they can to find new leads and turns those leads into customers.

Prospecting selling anything begins with prospecting -- finding people who are interested enough in your product to listen long enough for you to make a sale. Any good agent is constantly finding prospects through as many tactics as possible. Many rely on general prospect generators like business card collection, print and online advertising and word-of-mouth. Some techniques that work particularly well for life insurance is forming partnerships with financial planners, blogging or writing guest posts giving financial advice, and attending community meetings like PTA and the Chamber of Commerce.

Buying Lists Several hundred lead lists are operated by companies that sell contact information for prospects to life insurance companies. Insurance sales manager Courtney Rogers advises against spending money on them. According to Rogers, the lists are typically very low in quality, and there's no guarantee you're the first agency to buy them.

Niche Marketing If you're a life insurance agent, you're one of thousands in your region. If you're the only life insurance agent in your local bowling league, you're have the potential to write a lot of policies for people who like to bowl. Your life insurance niche could be a specific kind of policy, a population or region, or simply being the insurance guy in an interest club. This increases your visibility within your niche and makes your marketing efforts within it more effective.

Finding Value when selling to a new prospect, don't talk about the policy itself. Insurance is boring and death is scary. Instead, focus the conversation on what the policy represents. Talk about taking care of family members left behind, paying off the family mortgage to decrease cost of living, or about covering the costs of higher education. Smart insurance agents chat at the beginning of any sales meeting to gauge what a prospect's values are, to better weave them into his pitch.