LIC Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of LIC through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
LIC Product Strategy:
LIC or Life Insurance Corporation of India, is the biggest insurance company in India. LIC offers a range of financial and investment products in its marketing mix like insurance, special, unit, pension, Micro investment, withdrawn and health plans. LIC also offers participation in the government scheme of Aam Admi Bima Yojana. Insurance plans include different types of plans like Endowment plan (Jeevan Utkarsh, Jeevan Rakshak), Whole life plan (Jeevan Umang), Money Back plans (New Bima Bachat, Jeevan Tarun), Term assurance plan (Anmol Jeevan I & II) and Riders like New Critical Illness Benefit Rider. The special plans are combinations of insurance, investment and the security because of it. Pension plans are more suited for senior citizens for secure future. Through pension plan, LIC also gives access to government plan of Pradhan Mantri Vaya Vandana Yojana. Unit plans are the schemes for people with inconsistent income and has benefits of rich returns and tax savings. It also offers group schemes for employers, families, societies or associations. Life Insurance Corporation has different subsidiaries for specialized services. These are; LIC Housing Finance, LIC Pension Fund Ltd, LIC International, LIC Cards Services and LIC Mutual Fund.
Image: Wikimedia
This concludes the product strategy in LIC marketing mix & strategy.
LIC Price/Pricing Strategy:
Below is the pricing strategy in LIC marketing mix strategy:
The main objective of LIC is to offer adequate financial cover to all insurable persons at reasonable and affordable cost. In 2017, LIC's market share for number of policies was 76.09% and sold 20 million new policies.
The product range of LIC is varied and so is the price range. The website is equipped with a 'Premium Calculator ' service wherein the premium for each scheme of Life Insurance Corporation can be calculated. It depends on variables like age, term and sum assured. The payment of the premium can be paid by cash, cheque or DD at cash counter of any LIC branch. Apart from this for ease of customers, premium can also be paid through Alternate channels as described on website. Keeping up with the implementation of GST by Government of India, LIC has replaced the service tax from earlier transaction with GST. The Tax rate will be different for different schemes. It will also be charged on interest of delayed payments.
LIC Place & Distribution Strategy:
Following is the distribution strategy in the LIC marketing mix:
LIC of India operates on the principle of providing life insurance on wider scale and urban and rural areas so all the insurable individuals have access to it. When Life Insurance Corporation was established, it had 5 zonal offices, 33 divisional offices and 212 branch offices governed by corporate office. To maintain long term accessibility for the consumers and build up the trust with them, LIC expanded their operations and opened the branches in each district. Due to this lot of organizational changes were initiated and branches got more functionality and acted as accounting units. Presently, LIC headquarter is located in financial capital of India, Mumbai with 2048 computerized branch offices, 113 divisional offices 8 zonal offices, 1381 satellite offices. In tier 1 and 2 cities like Mumbai, Banglore, Ahmedabad, Chennai, New Delhi, Pune on line kiosks and IVRS info centers have been specially made. The new initiative called 'Satellite Sampark' offices have been opened for easy access to policy holders. Thus, LIC has thoroughly penetrated the Indian market with reach in all the segments. Outside India, LIC operated in 13 countries through joint ventures or subsidiaries.
These countries include Baharin, Qatar, Nepal, Singapore etc.
LIC Promotion & Advertising Strategy:
The promotional and advertising strategy in the LIC marketing mix is as follows:
The product of LIC is intangible in nature involving customer involvement and loyalty in highly competitive market. Life Insurance Corporation has strong market share. With the emergence of new insurance organizations, LIC has to maintain its dominant position. LIC has used print and broadcast media exclusively. LIC advertisements feature in many national as well as local news papers and magazines. It shows returns on the product and tax benefits from it. The television commercials for LIC appeal to emotions of consumer by depicting importance of life insurance for the family when the earner of the faminy is no more. It ends with the tagline of 'Zindagi Ke Sath Bhi, Zindagi Ke Baad Bhi' (With you during and after your life). LIC also involved in co promotion at various exhibitions, seminars for other products like real estate, medical services. The communication with customer is maintained through multiple channels like IVRS, Call centers, Customer zone, SMS, e-mail, website and social networking sites.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of LiC (Life Insurance Corporation of India).
People:
LIC believes in insurance for all, i.e. all the insurable persons from rural and economically backward class should receive financial security of insurance. It has the objective of involving all their employees to their fullest capacity to serve the customers better. They also believe in integrating the corporate objective of organization with personal objective of employees leading to job satisfaction and pride. Life Insurance Corporation has a separate portal for its customers to submit their grievances. The grievance officers at respective Grievance Redressed Office, attend the customer without prior appointment. LIC insurances can be availed through the authorized LIC agents. The agents undergo exclusive training by LIC and have access to the infrastructure access in the branch offices and sales-marketing support. Domestic as well as NRI customers have information portal on the website providing guidance on services like premium calculation, bonus information, policy status etc.
Process:
LIC is a pioneer in the insurance industry. It is highly respected and trusted organization. The website of Life Insurance Corporation is very informative and starts the customer education right from the need for insurance, enlists its benefits and describes detailed information regarding all aspects of insurance and other related financial services. It also gives detailed information about all the products and allows calculation of cost and benefits of each. The form for the policy can be procured from the website or the agent or the nearest branch of LIC. Application for policy requires the documents from the applicant. There are multiple ways for payment of the premium making the process easy for consumer. The claim for the policy can also be made by submission of formal request through form and producing necessary documentation. Thus, over the years LIC has improved and adjusted its operations as per the changing times, keeping them customer centric.
Physical Evidence:
The offices of Life Insurance Corporation are in every district. The contracts for infrastructure developments of the offices are invited through the Tender Notices. These notices are circulated in the newspapers and website and bids are invited. The infrastructure is congenial to the requirements of customer having spacious building with proper layout, adequate seating and waiting arrangements, pleasing ambiance, clear sign boards for assistance, availability of the informative material and literature, telephone and basic restroom and drinking water facilities. The physical proofs of all the necessary documents are required for the application and availing of the policy. After the policy is acquired, it can be procured in the physical form and for some of the official purposes, it is considered as a proof of address and date of birth. LIC logo consists of joined hands holding a lamp.
Hence this completes the marketing mix of Life Insurance Corporation (LIC).
About LIC (Life Insurance Corporation of India):
Life Insurance Corporation of India is the market leader in the Indian Insurance market. It is a Government owned organization formed in 1956.
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