A

Project Report
On
AN IMPACT OF CELEBRITY
ENDORSEMENT IN INSURANCE

Submitted in Partial Fulfillment for the Degree of

Bachelor of Business Administration

S.S. JAIN SUBODH P.G. (AUTONOMOUS) COLLEGE, JAIPUR

(2017-18)

SUBMITTED BY SUBMITTED TO
Aman Jain Dr. Rita Jain
B.B.A. IV Sem. H.O.D (BBA)
 CERTIFICATE

This is to certify that the Project Report entitled “AN IMPACT OF

CELEBRITY ENDORSEMENT IN INSURANCE” is a record of project
work done independently by Mr. AMAN JAIN under my guidance and
supervision and that it has not previously formed the basis for the award of
any degree, fellowship or associate ship.

Dr. Rita Jain

H.O.D (BBA)

S.S. Jain Subodh P.G. (Autonomous) College

Jaipur

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 DECLARATION

I, AMAN JAIN student of BBA Sem IV hereby declare that the project work
presented in this report is my own work and has been carried out under the
supervision of Dr. RITA JAIN of S.S Jain Subodh P.G. (Autonomous)
College.

This work has not been previously submitted to any other university for any
examination.

Aman Jain

S.S. Jain Subodh P.G. (Autonomous) College

Jaipur

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 ACKNOWLEDGEMENT

It is not often in life that you get a chance of appreciating and expressing your
feelings in black and white to thank the people who have been a crucial part of
your successes, your accomplishments, and your being what you are today. I
take this opportunity to first of all thank the Faculty at S.S. Jain Subodh P.G.
(Autonomous) College, especially Dr. K.B.Sharma, Principal, and Dr. Rita
Jain, Head, Department of BBA for inculcating and instilling me the
knowledge, learning, will-power, values and the competitiveness and
professionalism required by me as a management student.

I would like to give special thanks to Dr. Rita Jain or educating me silver
lining in every dark cloud. Her enduring efforts, guidance, patience and
enthusiasm have given a sense of direction and purposefulness to this project
and ultimately made it a success.

I express my sincere and heartiest thanks to everyone who has contributed

towards the successful completion of the Project.

Last but not the least; I would like to thank my family: my parents for
supporting me spiritually throughout my life.

The errors and inconsistencies remain my own.

Aman Jain

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 CHAPTER–1
Introduction of topic
1.1 INTRODUCTION

Celebrities are people who enjoy public recognition by a large share of a certain
group of people. Whereas attributes like attractiveness, extraordinary lifestyle or
special skills are just examples and specific common characteristics that are
observed and celebrities generally differ from the social norm and enjoy a high
degree of public awareness. The term Celebrity refers to an individual who is
known to the public (Actor, sports figure, entertainer, etc.) for his or her
achievements in areas other than that of the product class endorsed (Friedman and
Friedman. 1979).
Endorsement is a charnel of brand communication in which a celebrity acts as the
brand's spokesperson and certifies the brand's claim and position by extending
his/her personality. Popularity stature in the society or expertise in the held to the
brand. In a market with a very high proliferation of local, regional and international
brands, celebrity endorsement was thought to provide a distinct differentiation
(Marlin Roll. 2006).
Mc Cracken's (1989) definition of a celebrity endorser is. ”Any individual who enjoys
public recognition and who uses this recognition on behalf of a consumer good by
appearing with it in an advertisement, is useful, because when celebrities are
depicted in advertisement. They bring their own culturally related meanings.
Thereto, irrespective of the required promotional role” Ohanian stresses that to be
truly effective, celebrities chosen as endorsers should be knowledgeable.
Experienced and qualified in order to be perceived as an expert in the category.
Two models were original, identified to explain the process of celebrity

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endorsement. As an endorser, one has to fulfill all the FRED objectives (Rajesh
Lalwani. 2006), namely. Familiarity (target market is aware of him. finds him
friendly. likeable and trustworthy): Relevance (which says that there should be a
link between the endorser and the product as well as between the Endorser and
the audience): Esteem (credibility to the mass); Differentiation (in all his projections,
he is seen to be one among the masses, and yet he towers above them. He is
different).

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1.2 IMPORTANCE

1. Influence Consumer Purchases

The affinity consumers have for certain celebrities can greatly influence their
purchases. People may have the attitude, "If the service is good enough for her/his,
it's good enough for me." This philosophy is often the impetus behind advertisements
for insurance, makeup, skin creams, hair products and attire. Consumers may also
desire the same company’s insurance as their celebrity.

2. Celebrity Culture
Social media stardom is on the rise; many celebrities have strongly established themselves
as a valuable brand, just through the simple use of platforms such as Snapchat or Instagram.
In today’s completely connected world, it is hard for us to not be continually made aware of
what they are doing in their everyday lives – and fans take note of this. We can harness this
power of celebrities on social media, to create an effective bond with our target market.

3. Position a Brand
Some small companies use celebrities in advertising to position their brands. Service
positioning is placing a company's products in the best possible light in the minds of a target
group.

4. Attract New Users

One challenge Companies face is finding new users for their services. Celebrities in
advertising appeal to customers as well as those who have never tried the service. The latter
may be users of competitive brands. However, those who continually see the local celebrity
in a commercial for a certain service may be convinced to try the service.

5. Brand Positioning
Using a celebrity can help position the brand or product in the mind of the target market
become a positive connection. This can increase the brand position over other brands

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6. Personality Transfer
Using celebrity branding, can create a personality transfer where the brand inherits the
personality of the celebrity. This can be an advantage if the celebrity has a positive
reputation as the brand gains the attributes of the celebrity.

7. Define and refresh brand image

The celebrity's attributes help to create the brands attributes, and can also refresh a brands
image so that people know exactly what the brand stands for. Some brands also use it to re
brand as their image as before it might not have had a strong brand image that saw it in a
positive light

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1.3 FEATURES

1. People like to see a familiar face on a product

Celebrities are known to majority of the world’s population. Like Shahrukh khan,
Amitabh Bachchan, Salman khan etc.
It, catches viewers’ attention when they see Amitabh Bachchan in “ICICI prudential
insurance” commercial or their print ad.

2. People want to be like the celebrities.

The stars’ fame and success stories are inspirations to majority of their fans. Therefore,
some attempt to live their lifestyles or even attempt to alter their physical looks just to
appear even remotely close to the star.

Generally, celebrities would post a product they’re promoting on their social media
pages and therefore if fans truly want to look like them, they will buy whatever
products they use.

3. They open up new demographic

Stars with great reputation are prone to reaching more followers than stars that have
terrible reputation. Some of their fans range from 12–64 years old, or even younger.
These celebrities have fans of all ages, which benefit brands.

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4. The belief of getting high quality product

Companies spend millions on celebrity endorsements. Big brands such as LIC, Aditya
Birla sun life insurance, Nike, Puma, Coca Cola, Pepsi, McDonald’s, Vitamin Water, and
etc. are worth billions themselves.

Since by now we know that consumers are prone to buying a product when they see a
familiar face in the ads, most also assume that it must be a high quality service
because they see some credentials. Most fans would believe that if their favorite stars
think the service is favorable, then they would most likely buy the service.

5. People remember the ads after seeing it.

When we scroll through magazines or watching TV or You tube and see a celebrity in
some of the ads, the emotions are going through your mind are Surprised, amazed,
happy, or even sad. These advertisements certainly will leave some sort of emotions,
therefore it would make us remember the ads we saw throughout the whole day.

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Chapter-2

Profile of the
company

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 2.1 Overview of industry as whole

• ICICI Prudential Life Insurance Company Ltd. (ICICI Prudential Life) is a joint venture
between ICICI Bank Ltd., one of India's largest private sector banks, and Prudential
Corporation Holdings Limited.

• ICICI Prudential Life began its operations in fiscal year 2001 and has consistently been the
market leader* amongst private players in the Indian life insurance sector. Their Assets
under Management (AUM) as on 31st March 2017 were `1,229.19 billion.

• At ICICI Prudential Life, They operate on the core philosophy of customer centricity. They
offer long term savings and protection products to meet different life stage requirements
of their customers. They have developed and implemented various initiatives to provide
cost-effective products, superior quality services, consistent fund performance and a
hassle-free claim settlement experience to their customers.

• In FY2015 ICICI Prudential Life became the first private life insurer to attain assets under
management of `1 trillion. ICICI Prudential Life is also the first insurance company in India
to be listed on NSE and BSE.

Fiscal Particulars

2001 Company started operations

2002 Crossed the mark of 100,000 policies

2005 Crossed the mark of 1 million policies

Crossed the mark of 5 million policies

2008 Crossed receipt of `100 billion of total premium

Crossed `250 billion of assets under management

Established Subsidiary for the purposes of undertaking pension funds related business

2010 Company turned profitable - registered profit of `2.58 billion

Crossed `500 billion of assets under management

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 2012 Started paying dividends

2015 Crossed `1 trillion of assets under management

2017 First insurance company in India to list on NSE and BSE

Values

The success of the company will be founded in its unflinching commitment to 5 core
values - Integrity, Customer First, Boundary less, Humility and Passion. Each of the
values describes what the company stands for, the qualities of our people and the
way we work. Every member of the ICICI Prudential team is committed to the 5 core
values and these values shine forth in all that we do.

 Boundary less: I will treat organization agenda as paramount

 Integrity: What I do when nobody is watching me
 Humility: Openness to change and learn
 Customer First: Service excellence towards Internal and External Customers
 Passion: Demonstrates infectious energy and enthusiasm

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 2.2 PROFILE OF THE COMPANY

Established on 12dec 2000

First policy floated on December 2000

A joint venture of ICICI bank and prudential plc.

ICICI is the leading private bank in India, headquartered in Mumbai

No. of branches 4850

Prudential plc.is a leading international financial service group headquartered in

United Kingdom

Also won “most trusted brand & most trusted private life insurer” by The Economic
times- AC nielson org

India’s most customer responsive insurance company

First life insurance Company to receive national insurer financial strength rating of
“AAA” (Ind) from Fitch ratings

Total assets of ₹100,000 crore (US$15 billion) (2014)

Website= www.iciciprulife.com

Board of directors

Chairperson

 MS CHANDA D. KOCHHAR

Director

 Mr. n. S. Kannan
 Mr. Raghunath Rariharan

Independent Director

 Mr. Vinod Kumar Dhall

 Mr. V. Sridar

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  Mr. M.s. Ramachandran
 Mr. Dilip Karnik
 Mr. R.k. Nair
 Mr. Dileep Choksi

MANAGING DIRECTIOR AND CEO

 Mr. Sandeep Bakhshi

Executive Director

 Mr. Puneet Nanda

 Mr. Sandeep Batra

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2.4 Competitors

 SBI Life insurance

 HDFC life insurance
 Life insurance corporation of India
 Bajaj Allianz Life Insurance
 IDBI federal life insurance co ltd.
 PNB MetLife insurance
 Birla sun life insurance
 India first life insurance

SBI Life Insurance:-

It is a joint venture life insurance company between state bank of India (SBI), the
largest state-owned banking and financial services company in India, and BNP
Paribas Cardiff. BNP Paribas is a French multinational bank and financial services company
with global headquarters in Paris. SBI owns 70.1% of the total capital and BNP Paribas
Cardiff 26% of the capital. Other investors are Value Line Pvt Ltd. and Mac Ritchie
Investments Pvt Ltd., holding 1.95% of the total capital each. SBI Life Insurance has an
authorized capital of ₹20 billion (US$310 million) and a paid up capital of ₹10
billion (US$150 million). SBI Life Insurance also features in the Fortune Global 500 list of the
world’s biggest corporations.

In 2007, CRISIL Ltd, a subsidiary of global rating agency Standard & Poor's, gave company a
AAA/Stable/P1+ rating.

HDFC LIFE INSURANCE:-

HDFC Standard Life Insurance Company Limited ('HDFC Life' / ‘Company’) is a joint venture
between Housing Development Finance Corporation Limited, one of India’s leading housing
finance institutions and Standard Life Aberdeen plc. (one of the world’s largest investment
companies), initially through its wholly owned subsidiary The Standard Life Assurance
Company and now through its wholly owned subsidiary, Standard Life (Mauritius Holdings)
2006 Limited.

Established in 2000, HDFC Life is positioned as a leading life insurer in India, offering a range
of individual and group insurance solutions. Its portfolio comprises various insurance and
investment products such as Protection, Pension, Savings, Income and Health.
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Life Insurance Corporation of India (LIC):-
It is an Indian state-owned insurance group and investment company headquartered
in Mumbai. It is the largest insurance company in India with an estimated asset value
of ₹1,560,482 crore (US$240 billion).As of 2013 it had total life fund of Rs.1433103.14 crore
with total value of policies sold of 367.82 lakh that year.

The Life Insurance Corporation of India was founded in 1956 when the Parliament of
India passed the Life Insurance of India Act that nationalised the private insurance industry
in India. Over 245 insurance companies and provident societies were merged to create the
state owned Life Insurance Corporation.

Bajaj Allianz Life Insurance:-

It is a joint venture between Bajaj Fiserv Limited (formerly part of Bajaj Auto Limited) owned
by the Bajaj Group of India and Allianz SE, a European financial services company. Being one
of the private insurance companies in India, it offers insurance products for financial
planning and security.

It is led by Tarun Chugh who is the Managing director and Chief Executive Office of the
company.

Bajaj Allianz Life Insurance began operations on 12 March 2001 and today has a pan-
India presence of 759 branches. It is headquartered in Pune, India. Bajaj Allianz Life
Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate
of Registration on 3 August 2001 to conduct Life Insurance business in India.

It is a three way joint-venture of IDBI Bank, an Indian development and commercial

bank; Federal Bank, one of India’s leading private sector banks and Ageas, a multinational
insurance giant based out of Europe.

IDBI Federal Life Insurance Co Ltd.:-

IDBI Federal distributes its products through a multi-channel network consisting
of Insurance agents, Banc assurance partners (IDBI Bank, Federal Bank) Direct channel,
and Insurance Broker. In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch
insurance major Fortis Insurance International NV signed a MOU to start a life insurance
company in India. The company received its license from Insurance Regulatory and

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Development Authority of India(IRDAI) (j.Arul jegadeesh one of the trainee in the IDBI
federal life insurance company in madurai) in December 2007.

PNB MetLife insurance:-

Punjab National Bank is a well-known nationalised bank in India and MetLife is a global brand when it
comes to insurance products. PNB provides exclusive MetLife insurance plans to give us the benefit of the
MetLife brand as well as their age-old trust. Since, Jammu and Kashmir Bank is also a part of this venture,
in terms of being a shareholder. Being such a well-known contender in the industry PNB MetLife
insurance was launched in India in 2001.

This insurance company has grown very quickly and currently provides protection to people across a
whopping 7,000 locations in the country. At the moment they have an agency sales team of over 10,000
financial advisors, to provide over 1,200 corporate companies with Employee Benefit plans as well. Being
one of the leading insurance providers in India, this company has been reporting profits for the last 5
years, as of mid2016.

Aditya Birla Sun Life Insurance Company Limited (ABSLI):-

It is a joint venture between the Aditya Birla Group, a well-known Indian conglomerate and
Sun Life Financial Inc., one of the leading international financial services organizations from
Canada. With an experience of over a decade, ABSLI has contributed to the growth and
development of the Indian life insurance industry and currently is one of the leading life
insurance companies in the country.

Formerly known as Birla Sun Life Insurance Company Limited, ABSLI is one of India's leading
life insurance companies offering a range of products across the customer's life cycle,
including children future plans, wealth protection plans, retirement and pension solutions,
health plans, traditional term plans and Unit Linked Insurance Plans ("ULIPs").

IndiaFirst Life Insurance Company:-

It is a life insurance company in India. It is a joint venture between two of India's public
sector banks – Bank of Baroda (44%) and Andhra Bank (30%), and UK's financial and
investment company Legal & General 26%). It was incorporated in November, 2009. It has
its headquarters in Mumbai. IndiaFirst Life made more than Rs2 billion in turnover in just
four and half months since the insurance company became operational. IndiaFirst Life

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insurance company is headquartered in Mumbai. The company is headed by the MD & CEO
Ms.R.M.Vishakha.

One of the fastest growing life insurance company in the country. Moved from 23rd
position to 8th position amongst private life insurers within 3 years

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2.5 S.W.O.T. analysis

Strengths
 ICICI prudential is no1 private life partner in India
 Innovative insurance policies with rider benefits
 Motivation factors provided by the company
 India’s One of the largest financial institution
 Second largest bank with network of 4850 and 14164 atms across India
 TRAINING provided to all people associating with ICICI prudential
 Highest paid up capital deposited in irda(Insurance Regulatory and Development
Authority of India), in comparison of all players
 Brand image
 Money power
 Large network branches
 Low upfront charge

Weakness
 Little product differentiation
 Most of plans too complicated to understand
 Very huge premiums of policies
 Mainly Target upper class only
 Policies charges are very high

Opportunity
 Insurance coverage both to the parent and children in one plan
 Rural market
 Tie up with broker also
 Numbers of adopting new technology
 Strong brand of company helps to boost sales in market
 Attract more people of providing customer centric products

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Threats
 Competitors may offer same plan with low premium
 New entrance
 Treat to substitute product
 Change in the policy of irda(Insurance Regulatory and Development Authority of
India)
 People may not be aware of different distribution channel

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Chapter-3
Research
Methodology

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1
Chapter-5

Findings

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 Findings

 After the findings, out of 10-10 people of different company’s agents have assisted 3
people of SBI LIFE, 6 people of ICICI prudential life and 5 people of LIC.

 40% of the SBI Life agents, 50% of ICICI Prudential Life agents and 30% of LIC agents
have always intimated about the bonus added every year to their policyholders.
 The majority of 60% of SBI Life agents, 40% of ICICI Prudential Life agents and 70% of
LIC agents never had the intention of switching over to any other company
 In SBI life, 30% of the respondents have very high level of awareness about life
insurance companies, while in ICICI Prudential Life, 20% of them have medium level
of awareness and in LIC of India, and 40% of them have medium level of awareness.
 In SBI Life, 40% of the respondents have taken policies for a period of 5-10 years,
while in ICICI Prudential Life, 50% of them have taken policies for 5-10 years and in
LIC of India, 30% of them have taken policies for above 15 years.
 In SBI Life, 30% of the respondents’ preferred yearly mode, while in ICICI Prudential
Life, 50% of them preferred quarterly mode and in LIC of India, 40% of them paid the
premium annually.

 In SBI Life, 30% of the respondents have paid a premium of below Rs.10,000, while
in ICICI Prudential Life, 50% of them have paid a premium of Rs.10,001 – Rs.15,000
and in LIC of India, 30% of them have paid a premium of below Rs.10,000 per
annum.

 In SBI Life, 40% of the respondents have 5-10 years of experience whereas in ICICI
Prudential Life 60% of them have 5-10 years of experience and in LIC of India 45% of
them have 5-10 years of experience.

 Out of 10 agents of SBI Life, 50% of the respondents have approached the business
people more. Out of 15 agents of ICICI Prudential Life, 40% of them paid more

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 attention towards professionals. It is observed that among 10 LIC agents, 30% of
them approached the business people more.
 40% of the SBI Life agents stated that they very well know about various types of life
insurance policies while 50% of the ICICI Prudential Life agents and 40% of LIC agents
mentioned that they know about various types of life insurance policies.

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 Suggestions

 As per the study majority of the agents concentrates more on business people,
professionals and used to contact the old clients. But the agents must concentrate
on all categories of people and try to attract the attention of more people
 They must focus on the existing policyholders and encourage them to take more
than one life insurance policy & also invite their friends to do the same
 The agents act as a chain between policyholders and insurance company they must
take efforts to popularize the insurance policies among the people and create
awareness about insurance.
 The agents, acting on behalf of the life insurance companies should avoid making
false promises and misleading information to the policyholders
 Some agents concentrate on the policies for which they will get more commission
not on the requirement of the prospects. Such a practice is to be avoided.
 Policies with lesser maturity period will also attract many policyholders
 Conclusion

The competitive climate in the life insurance market has changed over the last few
years due to regulations of IRDA and the expectations of the policyholders are also
changing. Insurance companies are targeting upon the policyholders by giving them
returns with the mission to make them satisfied. The life insurance companies must
take care to ensure that every policyholder must be totally satisfied, as a result their
customer base will grow. While designing the marketing strategy, life the insurance
companies have to consider the marketing strategies, promotional methods and
policy innovations of competitors. They have to frame the strategies in two
aspects i.e., to win over the hearts of the policyholders and to tackle the
competition. This is possible only through agents and employees in life
insurance companies. A lot is to be done by the life insurance companies to
maximize the satisfaction of the policyholders and improve the quality of
service.

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Bibliography

Internet:

https://medium.com/strategic-content-marketing/5-reasons-why-celebrity-
endorsements-work-47de8515b072

https://www.ukessays.com/essays/marketing/two-sided-effect-of-celebrity-
endorsements-marketing-essay.php