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Marketing –PLI/RPLI

Marketing –PLI/RPLI

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Marketing –PLI/RPLI

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  1. Marketing –PLI/RPLI

  2. What is Insurance ? • Insurance is a contract between two parties whereby one party called the insurer undertakes in exchange for a fixed sum called premium to pay to the other party called insured a fixed amount of money on the happening of a certain event

  3. Why Life Insurance? • Social security is a big challenge for human beings. • Life today is uncertain. • To secure our future we have to think of financial security. • We have many options available in the market to invest money but life insurance is the most profitable amongst these.(Why?)

  4. Need for marketing PLI/RPLI • To achieve the vision of India Post • To improve our market share • To achieve the desired goals • To establish as the market leader • Economic Compulsions

  5. Benefits of Postal Life Insurance • Life Insurance has triple benefits. • Insurance (Covers life risk) • Investment (Gives you good return) • Income Tax (You get tax rebate) • Lower the age higher the benefits. • So one must get insured as early as possible.

  6. Postal Life insurance as a service • Typical characteristics of Life Insurance • Customer Relations spread over a long duration • The performance of the service is assessed till the policy matures and the claim is allowed • The after sales service is crucial and the sales personnel will act as a link between the policy holder and the organization. • Delay irritates the customers

  7. Strategy • Create a true marketing plan • Create a bio sheet • Identify the customers • Establish and understand your market area • Make yourself referable • Be active

  8. Pick up the phone • Be creative • Plan to prospect • Be persistent • Have a follow up sequence

  9. Professional Selling Of PLI • The marketing executive should have full understanding and thorough knowledge of the product. • He should be a keen market watcher and must be aware of the insurance business. • Full knowledge about competitor’s products • Knowledge of other similar products is also essential . • He should be a good ambassador of the Department

  10. Continued… • Must have a professional approach to selling • Must have the right sales attitude and confidence to convert the NO to YES • Develop the ability to ask questions • Listen carefully and answer to the queries • Link features to the benefits of the customer

  11. SWOT- Insurance • Group Activity on SWOT Analysis of PLI/RPLI

  12. Strengths Low rate of premium High rate of bonus Guaranteed by Government of India. Loan facility from any financial institution Wide coverage RPLI-Exclusively for people in rural areas Latest technology being adapted through FSI-Mccamish

  13. Weaknesses Lack of marketing skill Inadequate product knowledge Improper planning Lack of knowledge about competitors and insurance sector Limited clientele Poor after sale service Maximum sum assured limit is 20 lakh-PLI & 5 lakh -RPLI

  14. Opportunities Among top insurance markets- India is ranked 10th among 156 countries in the life insurance business with share of 2.3 percent during FY 12. Life Insurance Premium Market expanded at a CAGR OF 20.1 per cent from USD 11.5 billion in FY 03 to USD 59.9 billion in FY 12. Penetration - Sources-IRDA,McKinsey,DelloitRepor t

  15. Opportunities The annual income growth rate in rural area expected to increase to 3.6 percent over 2010-30 from 2.8 per cent during 1990-2010. About 5 million people currently have microinsurance,while the entire market is expected to be in the range of 140-130 million. Increase in FDI limit to 49 percent from 26 percent as proposed in 2012,will further fuel investments. Source from IRDA,McKinsey

  16. Opportunities Source from IRDA,McKinsey Growing interest in insurance among the people the insurance market size USD 72 billion FYE 12 to USD 139 billion in FYE 15.

  17. Threats Changing expectations of the customer Stiff competition from other insurance providers

  18. Incentive-PLI/RPLI PLI Incentive For officials other than Development Officers Incentive amount is Rs 25 per Rs. Ten thousand of sum assured upto Rs. 2 crores of sum assured and Rs. 20/- per Rs. 10000 sum assured beyon Rs. 2 crores For Development Officers

  19. Incentive-PLI/RPLI RPLI Incentive Incentive against RPLI business procured is to be paid monthly by the divisional head • @ 10 % of the first year premium income • @ 2.5 % of subsequent years premium income for policies procured after 1.10.2009 • @ 1% of subsequent years premium income for policies procured before 1.10.2009

  20. Need for a marketing strategy • Low penetration of PLI/RPLI in the respective customer segments • The next slide indicates the penetration level of PLI/RPLI

  21. Low penetration of PLI and RPLI in respective customer segments demands a focussed marketing strategy Penetration in PLI (number of policies as % of total PSU employees) Target market size for PLI Total Number of Employees: 2.86 crore Source: India Stat, India Post MIS reports on customer category wise data Target market size and Penetration in RPLI (number of policies as % of rural population) Total Rural Population: ~80 crores Source: Provisional Census 2011, India Post MIS reports on RPLI state wise data

  22. Comparison of premium collections • Premium collection in DOP in 2012-13 • PLI premium Rs. 4557.29 crores • RPLI premium Rs. 1703.16 crores • Total Rs. 6260.45 crores • Premium collection by LIC in 2012- 13 was Rs.2.87 lakhcrores • Look at where we stand and the gap we need to fill to improve our market share!!!

  23. A structured framework would assist PLI and RPLI in developing a focussed marketing strategy Marketing Framework 1 Marketing Organization Govern Reach out to prospective and current customers Communicate the message to customers Monitor the performance to make suitable changes Conversion into sales 2 3 4 5 Marketing initiative Marketing communication Sales integration Feedback and monitoring Provide Support 6 Tools and Technologies 7 Brand management

  24. Following key strategic initiatives have been identified for PLI and RPLI based on ‘As-is’ assessment 1 Establish a dedicated marketing team to plan, implement and administer marketing initiatives 2 Develop tailored marketing initiatives to reach out to prospective PLI and RPLI customers 3 Develop a Tailored marketing strategy and initiatives to increase penetration of PLI in Army Postal Services Develop orchestrated communication plan to create awareness about life insurance, publicize PLI and RPLI offerings and stimulate sales 4 5 Develop tailored marketing initiatives and communication plan for targeting migrant population 6 Align sales channels with PLI and RPLI customer segments for pre-sales and sales conversion 7 Integrate marketing activities with call center for lead generation and lead servicing Develop effective mechanism to monitor marketing initiatives and gather feedback from marketing staff and channel staff to modify marketing initiatives 8 9 Leverage customer relationship management (CRM) system to develop targeted marketing initiatives Strengthen PLI and RPLI brands by establishing a brand identity, communicating brand promise and ensuring brand delivery 10

  25. PLI specific marketing initiatives and communication strategy

  26. Developed location based marketing initiatives to reach out to prospective PLI customers 2

  27. Summary of location based marketing initiatives 1 Marketing in townships • Central and state PSUs have setup townships with necessary facilities such as housing, schools, shopping complex, banks, hospital, playgrounds, club houses etc. • Residents of such large townships spend most of their time within township and have limited interaction with outside areas • PLI can carry out focused marketing campaigns in such townships to effectively reach out to large number of government employees 2 Marketing at training centers • Training centers of PSUs, nationalized banks, police, railway, post and armed forces provide induction training to new employees as well as refresher courses to existing employees on a regular basis • PLI can conduct awareness and publicity campaigns at these institutes especially to target new joining employees 3 Marketing at office clusters • Metro and urban areas have central business districts with clusters of Government and PSU offices. Examples include Churchgate in Mumbai, Dalhousie in Kolkata, Chanakyapuri in Delhi etc. • PLI should conduct marketing activities in such areas to improve brand awareness and visibility to government employees working in such office clusters

  28. Usage of various marketing mediums in location based marketing initiatives                • Outdoor marketing includes marketing using posters, banners, hoardings and kiosks • Print marketing includes marketing using leaflets, pamphlets, brochures and newspapers • Internet marketing includes marketing using emails, web banners, social media marketing and marketing on internal websites

  29. 1. Marketing in townships Central PSUs have set-up large scale townships in various parts of India • Central PSUs have set-up large scale townships across India for its employees. The townships usually are established by PSU organization with plant operations in far flung areas • These townships are build near a plant and are self-sufficient with facilities such as residential units, hospitals, recreation areas, shops, schools, banks and post office. Some of them also have higher education institutes and cinema halls • Some of the biggest townships in India Include Bhilai, Bokaro, Rourkela, Durgapur, Bailadila and Neyveli. A few of these township are built jointly by multiple PSUs Key observations Some of the largest townships in India Bokaro Durgapur Rourkela Bhilai • Township residents are highly influenced by peer level marketing • Currently, insurance policies are being sold by individual agents of other insurance companies residing in these townships • Currently, PLI undertakes limited marketing activities in these townships Bachili-Bailadila Neyveli Source: Company websites, secondary research

  30. 1. Marketing in townships Residents of large PSU townships spend most of the time in the township Office & Plant Area Visit daily/weekly for social gatherings and fitness activities • Spend 50 hrs. per week at office • Access intranet and emails • Interact with other employees at canteens School Club House Elevator Computer Visit everyday/alternate day to buy everyday goods Playground Canteen Shopping Complex Spend 5-10 minutes per day for wait time and security check Visit once in a week to withdrawals, deposits and to keep track of accounts Plant Entrance Bank 25-30 hours a week spent with family and neighbors Visit once in 1-2 weeks for postal services and postal savings bank Visit once in 2-3 months for medical checkup or illness Post Office Residential Hospital • PSU employees residing in townships spend most of their time within the township. Typically, the township community members have a high degree of interaction among themselves and depend each other for advise on financial products • The most common places visited by employees and their families are shown above. Post office is just one of the visited places by the customer to avail a variety of postal services • Currently post office works in isolation and undertakes limited marketing initiatives in the township areas for PLI products Note: based on interaction with residents of large PSU townships

  31. 1. Marketing in townships Post office can undertake a 360 degree marketing approach in PSU townships to ensure extensive coverage Organize painting or essay competitions for children Office & Plant Area keep posters and hoardings Internet based marketing Posters inside elevators and on canteen tables School Elevator Playground Computer PLI awareness posters Canteen Club House Banners at entrance gates Post Office Plant Entrance Poster and banner marketing and kiosk marketing at shopping complexes Shopping Complex Health and wellness awareness posters at hospital Hospital Kiosks marketing at banks Bank Residential Newspaper/pamphlet based marketing, TV marketing for residential complexes • A 360 degree marketing approach would involve engaging in marketing initiatives to target township residents at frequently visited locations using variety of marketing mediums such as print marketing, TV marketing, poster marketing, kiosk marketing and email marketing • A similar approach can be undertaken for smaller colonies (e.g. colonies in metro areas which have only residential units) to market PLI products

  32. 1. Marketing in townships Description of select marketing initiatives in townships

  33. 2. Marketing at training centers 1 PSUs have set up training institutes to provide training to its new as well as existing employees 3 4 5 2 Training at Indian Railway Details of training centers • All major PSU organizations have training centers scattered all over India to provide induction to new recruits as well as refresher courses to existing employees • Details of training centers if Indian Railways is provided below: Marketing approach 6 T 7 • Indian Railways carries out massive training exercises for its ~14 Lakh employees • It has around 291 training centers located across India which provide specialized training to its employees • It has a total capacity to provide refresher training to nearly 4.5 Lakh employees every year • Every year, ~1 Lakh employees (~7% of the total workforce) are provided with refresher training in addition to induction to new recruits • The training provided consists of classroom training, technical as well as railway working rules, on-job training and independent working training in come cases • Most of the training programs are resident training programs that last for 3 days – 7 days. Training centers are well equipped with all kind of facilities such as classrooms, technical labs, computer labs, library, hostels, playgrounds, gym / yoga rooms etc. • Typically, these training centers are categorized as per the cadres of the employees to whom training is provided (e.g. Group A employees training center, Supervisor training center etc.) • Employees assembled in large numbers provides opportunity to market PLI products to a focussed group. Further, marketing initiatives at each of the training center can be tailored as per the profile of the employees (Group A, Group B, Group C, Group D) Source: Secondary Research

  34. 2. Marketing at training centers PLI can target training centers with various marketing initiatives to educate PSU employees about PLI offerings Distribute PLI pamphlets • Organize talks to create life insurance awareness and market PLI products • Showcase PLI films between the lectures Distribute PLI pamphlets in hostel rooms Central office Hostels Classroom Put banners at playgrounds Distribute pamphlets and leaflets Grounds Mess Post Office Distribute health and wellness awareness leaflets Gym and Yoga Center Computer Lab Distribute pamphlets and leaflets Library Distribute pamphlets Put PLI brochures with elaborate information • Marketing mediums can be tailored depending upon location and level of interaction. One of the best ways to market PLI products would be to showcase small 4-5 minute films between the classes or conduct a short guest lecture • Marketing at training centers could be an effective way to educate government sector employees about PLI offerings; Sales may not take place at training centers considering most of the employees would be residing at locations elsewhere in the country

  35. 3. Marketing at office clusters 1 Government offices in the metro/urban locations is an attractive catchment area for PLI to market its products 3 4 5 2 Sample case study: South Mumbai central business district 6 Government offices T 7 State PWD Bus Stops Reserve Bank of India Major roads High Court • Typically urban areas have one or more central business districts with cluster of government offices • PLI can undertake several marketing initiatives such as • Put posters and banners on bus stops, railway stations and major roads • Put customized posters (e.g. ‘Insurance for employees of Reserve Bank of India’) within organization premises • Distribute pamphlets and brochures within the organizations • Put stalls/kiosks in front of the entrance or within the premises of the offices • Deploy marketing managers to go and meet senior officials of respective organizations for group sales • Organize events such as ‘marathon competition for government employees’ Mumbai University New Admin building Inst. Of sciences New India Insurance Maharashtra Police Mukhyalaya

  36. Develop orchestred communication plan to create awareness about life insurance, publicize PLI and RPLI offerings and stimulate sales 4

  37. Communication plan should be tailored depending upon the customer segment that marketing initiative wishes to target *Note: Grade Pay and Percentages are only for central government employees Source: Census of Central Government Employees data, June 2011

  38. Communication plan must include product proposition to respective customer segments                 Indicates most suitable. Other products can also be sold 

  39. 1 Communication plan for marketing PLI products (1/3) 2 3 4 5 Increase awareness about insurance need Publicize PLI products and services Stimulate sales 6 T 7 • May not be effective to increase awareness about life insurance • Insert running banner advertisements during the movies and popular programs on the local cable channels • Put advertisements in local languages • Insert satisfied customer’s videos from local community • Provide contact details (local post office number, toll free number, website details) TV marketing Advertisements in local cable channels for PSU staff colonies • Only provide information on benefits on insurance not specific to PLI. Ensure PLI logo and tagline • Product specific posters (e.g. children policy, group policy) to educate customers • Focus on service (e.g. policy within 7 days) • Details of toll free number and website should be provided • Details of promotional campaigns such as referral programs, loyalty programs Outdoor marketing Posters, Banners and Hoardings Stalls and kiosks • Only provide information on benefits on insurance not specific to PLI. Ensure PLI logo and tagline • Understand customer requirements and provide tailored information about PLI products • Obtain name and contact details for lead generation • Provide information on who else from the organization has bought the policy

  40. Communication plan for marketing PLI products (2/3) Increase awareness about insurance need Publicize PLI products and services Stimulate sales • May not be effective to increase awareness about life insurance • PLI products overview and benefits overview • Focus on service (e.g. policy within 7 days) • Catchy headlines to grab attention • Details of toll free number, agent contact and website should be provided • Details of promotional campaigns such as referral programs, loyalty programs should be described Advertisements in internal magazines Print marketing Distribution of pamphlets in colonies/canteens • Only provide information on benefits on insurance not specific to PLI. Ensure PLI logo and tagline • Brief description of PLI, schemes, investments, benefits, terms & conditions, scenario explanations, frequently asked questions could be included Internet Marketing • Provide informative content about insurance on website • Premium calculator on website • Post videos on website /intranet to educate PSU employees about insurance products • Send e-brochures covering benefits and need of insurance • Send product brochures through emails • Insert PLI banners on website intranets • Send update emails (introduction of new products such as group insurance) through emails • Provide toll free number details • Provide contact number of nearest post office through emails • Provide links for policy registration to generate leads Internet marketing

  41. Communication plan for marketing PLI products (3/3) Increase awareness about insurance need Publicize PLI products and services Stimulate sales • May not be effective in creating awareness about life insurance • Develop ringtones/jingles to create awareness about PLI • Send PLI promotional SMS directly to customer mobile numbers • Provide toll free number through SMS • Provide message such as ‘SMS xx to a specified number’ to generate instant response • Provide information such as ‘e.g. 10 people in your organization have bought PLI policies’ to stimulate sales Mobile Marketing Mobile marketing

  42. Activity Trainees to be grouped in to as many groups as possible on the following lines • Trainees from same division/region in one group • If sufficient trainees are not available from the same division/region, trainees from the same circle to be grouped together

  43. Continued • The trainees to brain storm and identify the target group for PLI . • If possible trainees to identify the organisation/township within their division/region • Based on the above the communication plan for each group has to be prepared

  44. RPLI rural customers specific marketing initiatives and communication strategy

  45. Developed tailored marketing initiatives to reach out to prospective RPLI customers 2

  46. While RPLI has seen significant growth in the past few years, it covers <3% of India’s rural population Business growth in RPLI CAGR 21% Channel wise contribution to number of policies sold in FY 12 ( in %) RPLI penetration in different states * Others includes Anganwadi workers, mail guard, ex life advisors, direct agents, ex servicemen, retired teachers, ASPO’S, IM’S

  47. Summary of marketing initiatives 1 Marketing in villages • In rural areas, people spend their time at locations such as tea shop, primary health centers, gram panchayat, village choupals and post offices • RPLI should tailor its marketing initiatives (e.g. pamphlet distribution at tea shops, awareness campaign at village choupals) to target people residing in rural areas 2 Marketing at yatras and Melas • Yatras and Melas in rural India provide a great opportunity for marketing RPLI as people congregate in large numbers from nearby as well as far flung villages • Large scale marketing campaigns at these Yatras and Melas would provide with better visibility and increase brand awareness of RPLI among rural population 3 Marketing through industry initiatives • Corporates (ITC e-choupal, Tata Group’ Kisaan Kendras, DCM Sriram’s Hariyali Bazaar) have established a strong presence in villages by providing products and services such as agricultural advisory, retail stores, financial services and public welfare • Leveraging these institutions would allow RPLI to leverage trust and infrastructure built by these institutions in rural areas 4 Marketing through Co-operative societies • Local level co-operative societies fulfill the financial services requirements of farmers. Primary agricultural credit societies are important channel in providing short term and medium term credit to farmers. Apart from PACS, co-operative societies have been formed to fulfill farmer needs such as buying fertilizers, selling agri/dairy outputs etc. • RPLI can target rural populace in particular farmer community by marketing through co-operative societies 5 • Government initiatives such as NeGP and MGNREGA have been launched to provide social infrastructure and employment in rural areas • These are typically managed and monitored by the educated people in the village. RPLI should target these initiatives to market RPLI products Marketing through government development programs 6 Marketing through NGOs, SHGs and MFIs • NGOs, SHGs and MFIs have strong connection with communities staying in rural areas. This can be used as nodal agencies to issue group policies to community members

  48. Usage of marketing mediums in marketing initiatives                                          

  49. 1. Marketing in villages RPLI would be required to tailor marketing initiatives suited to rural ecosystem…. Long free time while waiting for bus Rural houses • Mobile has reached every third rural household* • Rural people listen to radio in their leisure time • Television are also present in household with higher income Bus Stand Respected people of the village visit here every day Gram Panchayat House Television Visit during illness with average visit time of 1 hour Primary Healthcare Center School Radio Mobile People visit weekly bazaars to buy grocery Visit regularly for savings, postal, remittance needs Bazaar Branch Office Temple Daily visit tea shop to socialize with other villagers Tea Shop • Rural areas are characterized by dispersed population, low penetration of technology and low awareness about financial services in particular insurance • Currently, branch post office undertakes limited marketing activities for RPLI. Some of the existing marketing initiatives by RPLI include conducting rural melas, putting wall paintings and putting posters near post office *Source: TRAI press release. Data as on 31st January 2013

  50. 1. Marketing in villages … to effectively market itself to rural populace Wall painting for RPLI Rural houses Posters and banners at bus stands SMS based marketing in regional languages Wall Paint House Television Bus Stand Publicize RPLI products over local radio stations PLI awareness posters and camps Gram Panchayat Mobile RPLI advertisements on TV Health and wellness awareness posters Branch Office PHC Radio Painting and essay competitions in rural government schools Pamphlets at tea shops to explaining RPLI products School Tea Shop Temple Bazaar Kiosks at weekly bazaar for insurance literacy • Marketing at locations such as local taparis (tea shops), weekly bazaars, bus stands, primary healthcare centers would be extremely effective since marketing at such places encourages discussion among villagers • Key points to make rural marketing effective is marketing in local language and use of local influencers (doctors, teachers, credit society members etc.) to create awareness among villagers