LIC (Life Insurance Corporation of India) Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of LIC (Life Insurance Corporation of India) through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
LIC (Life Insurance Corporation of India) Product Strategy:
LIC or Life Insurance Corporation of India is the leading insurance company in India. LIC provides various schemes for its customers. It’s on the customers paying capability and prerogative which basically becomes the decision-making factor for LIC agents while providing or suggesting their client to go for a scheme. The product width of LIC includes Aam Aadmi Bima Yojna, Insurance Plan, Special Plans, Pension Plan, Unit Plans, Micro Insurance Plans, Withdraw Plans and Health Plans. All these are the product strategy in the marketing mix of LIC. Aam Aadmi Bima Yojna provides a cover of ₹30000 for its customer. LIC provides a wide gamut of insurance plans, they are further categorised by Endowment Plan, Money Back Plans and Term Assurance Plans. These are further sub divided into various other plans all varied in interest rate, premium to be paid and term of insurance. Special plans are updated from time to time, basically launched during auspicious moments like festivals. LIC’s Jeevan Akshay and Jeevan Nidhi are the pension plans provided by LIC for support of individual after retirement. Micro Insurance Plans are a mixture of insurance and investment. Life Insurance Corporation has insurance plans not only for individuals and families, but also for enterprises.
Image: company website
This concludes the product strategy in LIC (Life Insurance Corporation of India) marketing mix & strategy.
LIC (Life Insurance Corporation of India) Price/Pricing Strategy:
Below is the pricing strategy in LIC (Life Insurance Corporation of India) marketing mix strategy:
LIC has got several products and hence a diverse price range as well. Initially in the insurance sector there was only one large player, but now there is tough competition specially from private players; so, price plays an important factor for dominance in this sector for Life Insurance Corporation.
Premium for LIC Aam Aadmi Bima Yojna starts from as low as ₹200 per annum. Price of the insurance schemes depend on the term of scheme and return that it gives. In the pension schemes the price of LIC Jeevan Akshay scheme requires a minimum purchase of ₹100000 or ₹150000 and a minimum age of 30 to up to 85 years. Service Tax is levied under pension scheme; this increases to price amount to a very less extend. In the endowment schemes premium is paid on monthly, quarterly, half yearly or annually; thus, making it convenient for customers to avail such schemes. For the Health insurance schemes from LIC, the premium starts form as low as ₹1400, price depends on the age of the insurer and the gender of the insurer. This gives an overview on the pricing policies in its marketing mix.
LIC (Life Insurance Corporation of India) Place & Distribution Strategy:
Following is the distribution strategy in the LIC (Life Insurance Corporation of India) marketing mix:
Life Insurance Corporation has got an exceptional geographic reach across India. With headquarters based in Mumbai, LIC has an extensive network in India. LIC has 11000+ branch offices spread across India. With 8 zonal offices, 110+ divisional offices, 2000+ branch offices, 1400+ satellite offices, and 1200+ mini offices; LIC has the largest insurance network in the country. Life Insurance Corporation of India also has many of the foreign offices. Foreign branches are present in Port Louis in Mauritius, Suva and Lautoka in Fiji Islands and Wembley in United Kingdom. Also, it has got joint ventures with various other insurance companies in many other countries, in a way increasing their wide outreach. LIC is also present in the online channel, its website provides its customers all required information for any scheme in a very precise manner.
LIC has got an app in all platforms; this helps customers to easily access them anytime and anywhere.
LIC (Life Insurance Corporation of India) Promotion & Advertising Strategy:
The promotional and advertising strategy in the LIC (Life Insurance Corporation of India) marketing mix is as follows:
LIC undertakes various promotional activities in its marketing mix strategy. Its primary mode of promotion is via Television Advertisement. Other modes of advertisements include print media and distribution of Pamphlets. LIC undertakes various CSR activities, a famous one includes awarding meritorious students of 12th standard with sum amount of money so as to continue their future studies comfortably. Social media, electronic and bill boards are also incorporated into their promotional activities. LIC also sponsors in various sports activities like basketball and football. LIC sponsors in cricket; which is hugely popular and is followed by the large part of Indian population.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of LIC.
Process:
LIC has got several business processes in place for its customers and business activities. Insurance is a type of service sector where customers do not come by itself to avail it, companies need to reach out to the customers in order to sell it. So, quality of service should be at the outmost level in case of insurance sellers. Life Insurance Corporation keeps this in mind and thus maintained a seamless process which they cater for the public. It needs to follow strict IRDA rules and guidelines in order to provide quality service. From buying of any policy or scheme till the delivery of the sum amount, LIC follows a meticulous process such that customers and LIC are on the same page at any point of time.
People:
Life Insurance Corporation focuses on people management very meticulously. In order to be consistent market leader in the insurance sector, it is very important to have a team of people to be able to constantly deliver the products and services. LIC boasts in having a strong agent network across India. LIC has a total of 2016565 number of agents on the field reaching out to potential customers every day. Total number of white collar officers working for LIC is 247541. This level can be reached only by qualifying competitive examinations specially designed for LIC. The LIC AAO entrance examination serves this purpose. It helps in recruiting direct recruit officers and trains them further before posting them to their respective branches.
Physical Evidence:
LIC has got extensive physical presence across all parts of India. This is due to the fact that customer trust plays the most important part in order to sell any insurance. The huge amount of offices present in every district in India remains a testimonial to this fact. The physical presence of LIC can also be felt by the wide distribution of pens, calendars, pamphlets and diaries, such things are tangible evidence to its physical presence. The thousands of offices of Life Insurance Corporation are also the physical evidence of the brand along with the website. Hence, this concludes the marketing mix of LIC (Life Insurance Corporation of India).
About Life Insurance Corporation of India:
Life Insurance Corporation of India or LIC is the largest insurance and investment company in India. It is owned by the government of India. Though the concept of life insurance existed in India for a long time, LIC came into existence of its current form in the year 1956 after the Life Insurance Corporation Act was passed by the parliament of India. It is headquartered in Mumbai, the commercial capital of India.
Present in every nook and corner of India, LIC is one of the largest functioning insurance companies in the world. Headed by V K Sharma, with revenues of ₹2247000+ crores, LIC is a dominant force driving the growing economy of India.
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