APROJECT REPORT ON

“BRAND EQUITY ANALYSIS OF ICICI PRUDENTIAL LIFE INSURANCE PRODUCTS WITHIN THE CONTEMPRORY

INSURANCE PRODUCT MARKET”

(A study conducted at Patna with special reference to ICICI Prudential life insurance)

CONTENTS

S.No. Unit Description Pg. No.

1 Profile of the studya) Hypothesisb) Objectivec) Methodology

d) Limitations

2 ICICI Prudential – An Overview

Organizational structure

Commercial parameter

3 Brand Equity

4 Analysis and Interpretation of the study

5 Major Findings of the study

6 Learning Experiences from the study

Bibliography

Annexure

CHAPTER 01:PROFILE OF THE STUDY

HYPOTHESIS OBJECTIVE METHODOLOGY LIMITATIONS

CASE STUDY

The whole project report is the compilation of the necessary data and information collected in reference to our course i.e. Advertising, Sales Promotion and Sales management’. The idea was to collect and gather response of the customers about the “Brand Equity of ICICI Prudential life insurance “.

HYPOTHESIS

A hypothesis is a proposition, condition or principle which is assumed perhaps without belief in order to draw logical consequences, by this method of test it accords with facts which are known or may be determined.

The hypotheses in this case are as follows:-Insurance policies preferred by the individuals differ or varies from individuals to individuals. Services rendered are looked for in an insurance company.

OBJECTIVES

Apart from attaining the practical exposure on the basis of theoretical knowledge there are certain other objectives behind the compilation of this project report. Some of the main objectives of the entire study are as follow:

To understand and procure a detailed range of information about the “Brand Equity of ICICI Prudential life insurance”

To make people aware about the importance of insurance in life.

To gather information about different insurance policies those are pre-ferred most.

To assess and analyze the factors that the customer keep in mind while making decision regarding opting the benefits or services.

To analyze the customer level of expectations toward the services pro-vided.

To assess whether the customers are satisfied with the services they are getting or not.

METHODOLOGY

The entire study has been conducted on the basis of primary and secondary data collection and analysis. The data collection has been done on the basis of structured schedule. Instrument use for the purpose of data collection was the questionnaire. The sample unit of the survey was customers and the sample size was 150. Method of sampling used was simple random sampling.

Questionnaire was prepared in order to gather information. The question-naire consists of open and close ended questions.Various methods were used for preparing this project report. Information was gathered by making a visit to various peoples and making them filled the questionnaire related to the project.

Secondary data was also gathered through internet and various books to get information about the changing market scenario and changing attitude and behaviour of the people towards insurance.

LIMITATIONS

Every project compilation has certain degree of limitations and it becomes important and evident to access and identify the different limitations. In the process of gathering information from our respondent we also confirm certain problems which obstructed our research for the study to an extent but it also enable us to cite their solutions respectively. Some of the limitations factors are as follow:

One of the biggest limitations of this project report was limited area.

Some of the respondent were not comfortable with some of the ques-tions and were not ready to give information to these questions.For example: respondent address, contact number and income profile.

Some of the respondents were hesitating to provide information be-cause they were afraid that information that they are giving can be mis-used.

Some of the respondents were rude and some of them have communica-tion problem as they were not able to understand what we were asking.

CHAPTER 2:ICICI PRUDENTIAL LIFE INSURANCE:

AN OVERVIEW

COMPANY OVERVIEW

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide reach includes 1,900 branches (inclusive of 1,074 micro-offices), over 210,000 advisors; and 6 banc assurance partners.For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

COMPANY VISION:

To be the dominant Life, Health and Pensions player built on trust by world-class people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service

Leveraging technology to service customers quickly, efficiently and conve-niently

Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders

Providing an enabling environment to foster growth and learning for our em-ployees 

And above all, building transparency in all our dealings

COMPANY VALUES:

Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

DISTRIBUTION:

ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with around 1,400 branches and an advisor base of over 1,70,000 (as on March 31, 2011). The company has bancassurance partners having tie-ups with ICICI Bank and Proddatur Co-Op Town Bank Ltd.

OUR GROWTH:

ICICI Prudential Life has retained its leadership position over the past nine years, in the Indian private life insurance sector.Some of the factors that distinguish us from other players in the market are:

o Assets held are over 57,000 crores as on March 31, 2010.

o Total capital stands at Rs. 4,780 crores (as of March 31, 2010) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively.

o Posted a growth of 8% (April 1, 2009 to March 31, 2010) for garnering total received premium (new business + renewal) of Rs 16,532 crores as against Rs 15,356 crores in FY2009.

o Underwritten over 10 million policies since inception.

The ICICI Prudential Edge:

The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders.

o Our products have been developed after a clear and thorough under-standing of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded dis-ease.

o Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products .

o Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable cost-ing of risks, and thereby ensure a smooth and hassle-free claims process.

o Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted re-turns over the long-term.

o  Last but definitely not the least, our team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.

Grade hierarchy in ICICI Prudential Life Insurance System

 

Grade Designation

I Unit / Development Manager

II Agency Manager

III Sales Manager

IV Area Manager

IVA Branch Manager

V Sr Manager/Associate Regional Man-ager

VI Sr Manager/Regional Manager

VIA Chief Manager/Zonal Manager

VII Associate Vice President

VII B Associate Vice President

VIII Vice President

VIII B Vice President

IX Sr Vice President

IX B Sr Vice President

X Functional Head

 

CHAPTER-3

BRAND EQUITY

BRAND EQUITY

“Brand equity” is the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Fact of the well-known brand name is that, the company can sometimes charge premium prices from the consumer And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers and advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand.MeasurementThere are many ways to measure a brand. Some measurements approaches are at the: A. Firm levelB. product level C. consumer level

A.)Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalization - and then subtract tangible assets and "measurable" intangible assets- the residual would be the brand equity.[7] One high profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand.

B.)Product Level:

The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded

product. The difference in price, assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated.

C.)Consumer Level:

This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Positive brand equity vs. negative brand equity

Brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received.There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example).Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no-name or private label product.

Family branding vs. individual branding strategies:The greater a companies brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity includes: brand loyalty, awareness, association and perception of quality.

CHAPTER 4:ANALYSIS AND INTERPRETATION

OF THE STUDY

OCCUPATIONAL PROFILE:

OCCUPATION NO OF RESPONDENTS PERCENTAGE

Employed 50 34%

Self-employed 25 17%

Social activist 20 13%

Engineer 20 13%

Doctor 15 10%

others 20 13%

Interpretation: The above tabulation shows that Out of 150 respondents 34% are employed, 17% are self-employed, 13% are social activist, engineer, others and 10% are doctors.

INCOME PROFILE:

INCOME NO.OF RESPONDENTS PERCENTAGEUpto Rs.15,000 per month 45 30%Rs.15,000-30,000 per month 42 28%Rs.30000-45,000 per month 35 23%Rs.45,000 per month 28 19%

Interpretation:The above tabulation shows that out of 150 respondents 30 % are paid upto Rs.15,000 per month, 28% Rs.15,000-30000 per month,23% are paid upto Rs.30,000-45,000,19% are paid up to Rs.45,000per month.

INSURANCE POLICY RECENTLY PURCHASED

OPTIONS NO OF RESPONDENTS PERCENTAGEYes 85 56%No 25 17%Planning 40 27%

Interpretation:

The above tabulation shows that out of 150 respondents 56%have purchased insurance policy recently, 17% have not purchased yet, while 27% are planning to purchase.

COMPANY PROFILE

OPTIONS NO. OF RESPONDENTS PERCENTAGELIC 50 33%HDFC 25 17%ICICI 55 37%OTHERS 20 13%

Interpretation:

The above tabulation shows that Out of 150 respondents 33% have purchased policies from LIC, while 17% from HDFC, 37% from ICICI, and 13% from others.

SOURCE OF INFORMATION ABOUT ICICI PRUDENTIAL

SOURCE NO.OF RESPONDENTS PERCENTAGEadvertisements 45 30%Electronic media 20 13%Print media 25 17%Family friends 35 23%internet 25 17%

Interpretation:

The above tabulation shows that out of 150 respondents 30%came to know about ICICI prudential through advertisements, while 13% from electronic media, 17% from print media,23%8 from family friends&17% from internet.

ASSOCIATION WITH ICICI PRUDENTIAL LIFE INSURANCE

OPTIONS NO OF RESPONDENTS PERCENTAGE

Yes 75 50%

No 25 17%

May be 50 33%

Interpretation: The above tabulation shows that Out of 150 respondents 50%wants to associate with ICICI prudential, 17% do not want to associate with ICICI prudential, while 33% says may be.

INSURANCE PLOICIES PREFERRED MOST

Insurance policies No of respondents Percentage

Smart kid 50 33%

Pension plan 25 17%

Health plan 30 20%

Endowment plan 20 13%

others 25 17%

Interpretation: The above tabulation shows that Out of 150respondents 33% prefer smart kid, 17% pension plan& others, 20% prefer health plan, 13%prefer endowment plan.

RATING OF THE SERVICES RENDERED BY ICICI PRUDENTIAL

RATING NO OF RESPONDENTS PERCENTAGE

Excellent 45 30%

Very good 25 17%

Good 20 13%

average 25 17%

Below average 25 17%

satisfactory 10 6%

Interpretation:

The above tabulation shows that Out of 150respondents 30% rate as excellent for the services rendered by ICICI Prudential, 17%as very good, average and below average while 13% as good and 6%as satisfactory.

DIFFERENTIATION OF ICICI PRUDENTIAL FROM OTHER INSURANCE COMPANIES .

OPTIONS NO OF RESPONDENTS PERCENTAGE

image 45 30%

Brand value 35 23%

Affordable capacity 10 7%

Identification 15 10%

Customer base 20 13%

Services rendered 15 10%

Others 10 7%

Interpretation:

The above tabulation shows that Out of 150 respondents 30% differentiate ICICI prudential from other insurance companies in terms of image ,23%in terms of brand value, 7%in terms of affordable capacity and others, 10% in terms of identification and services rendered, 13%in terms of customer base.

RECCOMENDATIONS:

Recommendations No. of respondents PercentageYes 105 70%No 45 30%

Interpretation:

The above tabulation shows that Out of 150 respondents 70% wants to recommend or suggest some changes in ICICI Prudential for better results while 30% do not want to recommend or suggest any changes in ICICI prudential .

CHAPTER 5:

MAJOR FINDINGS AND INTERPRETATION OF THESTUDY

The Data analyses and interpretations helped us to take out the various findings. Thus the findings of this project is the result of all the data collected analysed and interpreted. Following are the various findings of the study:

Majority of the customers prefer smart kid & health plan. About 33% & 20%of the respondents respectively prefer smart kid and health plan.

Advertising plays a very important role as a source of information for ICICI Prudential

Almost 30% of the respondents rate the services rendered by ICICI Prudential as excellent.

ICICI prudential is the most preferred life insurance company in India

About 50% of the respondents wants to associate themselves with ICICI Prudential.

BIBLIOGRAPHY

Kotler Philip Kotler K.L. ,Koshy A, Jha “Marketing Management- A south Asian perspective” 13th edition pearson education publication,2007

WEBLIOGRAPHY

WWW. iciciprulife .com 30th Jan ,2012 WWW.google.com

ANNEXURES

Questionnaire:

1. Name and address:

2. Phone no.:

3. Age: 4. Gender: male female 5. Occupational profile:a) Employed b)self-employed c) social activist d) engineer e) doctorf) others

6. Income profile:

a) Up to Rs.15, 000 per month b) Rs.15000- 30000 per monthc) Rs.30000-45000 per month d) Rs.45000 & above

7. Education profile:

a) Graduate b) under graduate c) MBA d) Doctor e) others

8. Have you purchased any insurance policy recently?

a) Yes b)No c) planning

9. From which company you purchase all your policies?

a) LIC b)HDFC c) ICICI d) others

10. Do you know ICICI Prudential is a dominant private life insurance company in India?a) yes b) no c) may be 11. If yes then what is your source of information about ICICI Prudential?

a) Advertisement b) electronic media (radio, T.v) c) print media (newspaper, magazine) d) family &friends

12. Do you want to associate with ICICI prudential life insurance?

a) yes b) no c) may be

13. Which of the ICICI Prudential life insurance schemes you prefer the most?

a) Smart kid b)Pension plan c)Health plan d) Endowment plan

e) Traditional plan f) others

14. Do you like the services rendered by ICICI prudential life insurance?

a) Yes b) No c)Cant say

15. How would you rate the services rendered by ICICI prudential life insurance?

a) Excellent b)Very good c)Good d)Average e) Below av-erage f)Satisfactory

16. How do you differentiate ICICI prudential from other insurance companies?

a) Image b) Brand value c) Affordable capacity d)) identification e) Customer base f) Services rendered g) others

17. Do you want to recommend or suggest any changes In ICICI Prudential for better results? If yes then could you please spell some of your suggestion?

a) Yesb) No

Please specify_______________

Place: Date: signature: