LIC Life Insurance

Features: Life insurance corporation of India (LIC) is the biggest life insurance player in India Insurance Industry.its strong brand backed by long experience and well established network has helped it to remain on the peak. LIC offers a very vast and huhge range of diversified products catering to needs of various sections of people in India. It offers individual solutions considering their specific financial requirement and risk profiles. They have a whole list of traditional plans, ULIP`s , Policies for children`s future needs and various policies which an individual requires for financial planning like pension plans.They also offer special products designed for physically disabled people, for women and for rural areas. Bonus Loan Plan Min Premium NAV Declared? Tax benefit? Declared? Available?
Jeevan Anand Jeevan Mitra (Double Cover Plan) Jeevan Mitra (Triple Cover Plan) New Janaraksha Plan Endowment Assurance - (R.P) Jeevan NidhiI - RP New Jeevan Suraksha-I New Jeevan Dhara-I Jeevan Nidhi - SP Jeevan Anurag RP Marriage Endowment Or Educational Annuity Plan Children's Deferred Endowment Assurance Plan 21 Jeevan Anurag SP Children's Deferred Endowment Assurance Plan 18 Komal Jeevan Child Career Plan Child Future Plan Jeevan Chhaya Jeevan Kishore Child Fortune Plus RP Jeevan Akshay VI Pension Plus Endowment Plus 1500 1600

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1. Life Insurance Corporation of India A Case Study 2. Presented By Arti Kumari Debarati Sen Gupta Monalisa Ghosh Maneet Kumar Mani Shankar Sonkushre Man Mohan Anand M.S.Ramaiah Management Institute, Bangalore | MBA PRIST (A)

3. Abstract The case deals with the strategy reformation of LIC to compete with new entrants in the field of insurance in India. Till year 2000, LIC was the only company providing insurance services to Indian customer. After year 2000 many new companies enters into the field of insurance such as ICICIPrudential and Max New York etc. To compete with the new players LIC totally reformed its strategy to maintain its market leader position in insurance sector of Indian economy

4. Coverage of Area In Its new strategy to compete the new entrants , LIC focused majorly on following areas Training and development of sales force Technological Edge Business Process Re-engineering Promotional Strategy

5. Training and development of sales force Sales force locates prospects, develop them into customers, and grow the business. Sales personal serve as the companys personal link to the customer hence training and development of sales force become an important aspect. Various methods adopted by LIC in this regards are : Program they recruit many more agents to increase their network. Agents were given professional training mandatory under regulatory & Development and authority rules A tie up was done with IIM to impart IT skills to the sales force Laptops were sold to development officers at concession price.

6. Technological Edge Technology plays a vital role in business. Over the years businesses have become dependent on technology so much so that if we were to take away that technology virtually all business operations around the globe would come to a grinding halt. this case LIC has used various technologies to improve the effectiveness of business. LIC used WAN (wide Area Network) to interconnect its

branches which facilitate the customers to pay their premium at any branch. LIC used IVRS (Interactive Voice Responsive System) that enables the customer to get their query resolved in real time and obtain information on their policy. 7. Business Process Reengineering Business Process Reengineering is a structured approach to define the current state of processes, identifying gaps and opportunities, designing a future process that meets the business needs and planning for implementation. In the case, LIC has reengineered their service processes to clear the outstanding claims. They improved their services in such a manner that it takes less time to process the customer request. In this way they were able to send a message to customer that LIC delivers its services on its promise. 8. Promotional Strategy Promotion is defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. Advertising is defined as any paid form of non personal communication about any product, organization, services or idea by an identified sponsor. Objective of promotion and advertisement is create brand identity and brand equity. A Brand is defined as a name, term, sign, sym bol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. 9. Promotional Strategy In the case LIC has taken help of advertising agencies to promote the Brand LIC. They used creative slogans which affects the customers mindset and able to attract their attention. Those slogans helped LIC to make the customer emotionally attached to services provided by them. They spend huge amount of money in advertising and sales promotions to build their brand equity and identity. To avoid the interference in communication to customer, they reduced the number of ad agencies and worked with limited number of those agencies so that the message reached to customer, doesnt lose the main objective.

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