Department of Management Study

A Project Report

on

“CREATING ADVERTISING CAMPAIGN AND STRATEGIES FOR

SUSTAINABLE GROWTH OF KOTAK LIFE”

Submitted in Partial Fulfilment of the Requirement for the Degree of

Master’s of Business Administration

Submitted by:
Student Name: Sarthak Chandel

Enrolment Number:

Semester: II
 AUTHORISATION

This is to certify that the report title “CREATING ADVERTISING CAMPAIGN AND
STRATEGIES FOR SUSTAINABLE GROWTH OF KOTAK LIFE” submitted by “Sarthak
Chandel” in partial fulfilment of the requirement of MBA program of “ GRAPHIC ERA
DEEMED TO BE UNIVERSITY ’’ is an original work and carried out under our supervision.

Place: Dehradun Signature of Guide

Date: (Mr. Bhanu Sharma)

 ACKNOWLEDGEMENT

This report would not have been possible without guidance and help of many individuals.

I would like to acknowledge the management of Kotak Life Insurance Company Ltd., for
providing me with this wonderful opportunity to pursue my Summer Internship Program (SIP)
and get exposure to working environment in growing Marketing world.

I thank Mr. Saurav Srivastav, my Company guide, for his continuous guidance, help, and
motivation. His experience and confidence meant a lot in this project. I would also like to thank
kotak Life Marketing Team, especially Mr. Saurav Srivastav for his continuous guidance about
ad making, market research techniques and his insights about the insurance market.

I gratefully acknowledge my college Faculty guide, Mr. Bhanu Sharma for giving me the
opportunity to work in a professional environment and guiding me through the journey and
constantly encouraging me, throughout.

I would like to express my gratitude towards my Parents for giving me moral and financial
support to complete the work.
 TABLE OF CONTENT

Sr no. TITLE PAGE

AUTHORISATION
ACKNOWLEDGEMENT
TABLE OF CONTENT
1 INTRODUCTION
1.1 HISTORY OF LIFE INSURANCE
1.2 CURRENT SCENERIO OF LIFE INSURANCE
1.3 Review of Literature
1.4 ABOUT KOTAK LIFE
2 Marketing Concepts
2.1 Marketing Communications
2.2 Target GROUP
2.3 Consumer Behavior
3 Reframing of Adds
3.1 Advertising & Process of reframing of Advertisement

3.2 Advertising Example

4 Market Research
4.1 Primary Research
4.2 Secondary Research
4.3 Campaigns on IOI
4.4 Campaigns on Expectations
5 Distribution channels
5.1 DEFNITION OF DISTRIBUTION CHANNEL
5.2 Types of distribution channels.
5.3 What is agency channel?
5.4 DEVELOPMENT OF DISTRIBUTION CHANNEL

5.5 Recommendation for Kotak Life

6 Competitive Analysis
6.2 CONCLUSION FOR THE CAMPAIGNS DONE BY THE
COMPITITORS ON DIFFERENT PLATFORMS AND ON
DIFFERENT USP’s

6.3 Conclusion for kotak life

6.4 Recommendations for kotak life
7 References
 ABSTRACT
“Integrated marketing communications is a way of looking at the whole marketing process from
the view point of the customer.” - Philip Kotler

The Internship report will help in understanding what is meant by Marketing Communication
and how is it implemented by setting a target group and conducting marketing research on the
basis of primary and secondary data.

Current Scenario of Life Insurance Sector in India has been discussed in detail.

Different marketing concepts like Marketing Communication, Target Groups, Consumer

Behavior will be discussed. Also, different advertisements will be reframed to understand these
marketing concepts in a practical manner.

Target group will be based on the demographics, interests and behavior of the consumers. There
will be brief comparison of primary and secondary research.

2 Market Research projects were conducted. Factor analysis will be done on the market research
data and then will be analyzed through SPSS Software. Consumer behavior was observed
through factors derived from the market research. Ad campaigns were based on these derived
factors, target group and consumer behavior

Competitive Analysis was done on 5 major competitors of kotak life in A Private Insurance
Sector in India.

The concept of Brand Equity has been covered in this report.

 1. INTRODUCTION

1.1 HISTORY OF LIFE INSURANCE

Life insurance is a product that was born out of necessity—long before P.T. Barnum existed. In
fact, long before the word “scam” existed. Even long before the English language existed!

Life insurance existed back in Roman times—at least a full century BC.

If you’ve ever seen people on street corners at a busy intersection, holding up signs asking for
money to help bury a recently-deceased loved one, you know exactly the problem the ancient
Romans faced.

Funerals were expensive then, just as they are now. And, like then, they’re often unexpected.
And when they are expected, they often come after a long illness with medical expenses that
have drained a family’s resources.

Someone in ancient Rome figured out (using Roman numerals, no doubt), that if everyone in a
group put a few coppers in the kitty every week, there would be enough cash to cover the cost of
a casket when needed.

It wasn’t too long before someone else realized that if everyone would cough up just a little extra
each week, there would be something for the widows and children, as well. And thus, life
insurance was born—more than 2,000 years ago.

The first recorded life insurance policy—more of a wager than a policy, actually—dates back to
June 18, 1583. Place: London, England. Insured: William Gybbons, a salter (he preserved meat
and fish). Policy owner: Richard Martin, a citizen and alderman of London. Insurance company
(if you can call it that): Thirteen merchants of London.
1.2 CURRENT SCENERIO OF LIFE INSURANCE

The life insurance market in India was valued at INR 4,185 Bn in FY 2017 and is likely to
expand at a compound annual growth rate (CAGR) of ~11.6% during FY 2018 to FY 2023. In
2016, India's share in the global life insurance market was ~2.36% and ranked 10 among 88
countries. The Indian life insurance sector offers around 360 million policies, which is the largest
number of policies offered by any insurance sector globally. In this sector, 49% foreign direct
investment (FDI) through automatic route is allowed, letting overseas companies buy 49% stake
at the domestic insurance companies without prior approval from the government.

Impact of goods and services tax

Implementation of the goods and services tax (GST) is expected to make both banking and
insurance products expensive in the country. As of June 01, 2017, service tax has been replaced
by 18% GST in premium receipts and other related documents. Life insurance schemes offered
by the government, exempted from GST, include the Janashree Bima Yojana (JBY), Aam Aadmi
Bima Yojana (AABY), Varishtha Pension Bima Yojana (VPBY), Pradhan Mantri Jeevan Jyoti
Bima Yojana (PMJJBY), Pradhan Mantri Jan Dhan Yogana (PMJDY), and Pradhan Mantri Vaya
Vandana Yojana (PMVVY).

Insurance penetration overview

Insurance penetration, which is measured as the ratio of premium underwritten in a given year to
the gross domestic product (GDP) of the country, stood at ~3.49% in FY 2017. Life insurance
penetration in India was ~2.72% in the same year.

Market segment insights - player-wise

During FY 2017, life insurance companies issued 264.56 lakh new policies out of which LIC
issued 201.32 lakh policies, while private insurance issued the remaining 63.24 lakh policies. In
FY 2018, the Life Insurance Corporation of India (LIC) reported a growth of ~8% in its new
business premium as compared to FY 2017. They continued to be the market leader by grabbing
69.40% of the market share in the total first-year premium, and 75.67% in new policies.

Key growth drivers of the market:

 · Currently, Indian insurance companies such as LIC, ICICI Prudential Life Insurance, and
SBI Life Insurance Company, among others, are introducing comprehensive custom-
made micro-insurance products for the rural sector, which covers not just health but
accidents as well. Increasing rural income and improving infrastructure are expected to
drive the growth of the Indian life insurance market.

· Factors such as better management of claims and regulatory trends, coupled with
increasing income and the working-class population of the country are expected to drive
the growth of the market.

Key deterrents to the growth of the market

Although there has been a rise in the number of insurers in the country, financial literacy, and
awareness regarding understanding the products and services offered by the insurance companies
act as a significant challenge to the growth of the life insurance market in India.

1.2 Review of literature

Rangachary N. (1999) mentioned, opening of insurance sector to competition and the entry
foreign players will improve the service standards, generate funds for long term investments
(particularly infrastructure sector, which requires investments of $ 50 billion annually), utilize
vast potential of life and general insurance and create more employment opportunities. With
competition comes the urge to innovate and with competition also comes the urge to move
forward. Both these urges combine themselves to takes services to higher levels resulting in the
consumer getting service at reasonably competitive price. The paper has given elaborate
description about the likely improvements of addition of players in the insurance sector.
"International experience with liberalization of insurance sector indicates a tremendous
possibility of spurt in business. Liberalization has invariably resulted in higher premium income
as a percentage of GDP and thereby expanding market". 10 In addition to this, the new players
will lead to increased pension coverage, increased consumer focus, increased employment,
improved intermediation services, best global management practices and technology, long term
capital investment and long-term savings for the economy.

With regards to the impact on the existing players Rangachary mentioned that they will become
more efficient in terms of operational costs. It will make them more efficient from customer's
perspective, in terms of products and customer service. Competition is necessary to encourage
the LIC to make the changes, which are necessary for the market of the new millennium.
Weng D. (2000) in the dissertation titled 'China's Life Insurance Industry: Opportunities and
Challenges for Foreign Companies', mentioned that foreign insurers entering China since the
opening up of the insurance sector have contributed to the development of the industry by
introducing new products, marketing systems, operating techniques and management skills.

Baur, Esther et al. (2001) in the paper 'The Economic Importance of Insurance in Central and
Eastern Europe and the Impact of Globalization and E-Business', outline in detail the pros and
cons of foreign insurers in the emerging markets. It gives an elaborate presentation on the
benefits and challenges of market access liberalization. On the positive side, it highlights various
benefits of liberalization of insurance sector such as mobilization of domestic savings,
improvement in financial stability, improvement in customer service, improvement in the
efficiency of insurance market etc. and on negative side; it mentions national autonomy as a
major concern. There are worries that selective marketing by foreign insurers could result in the
neglect of some customer groups. Foreign insurers, which are generally more focused on high-
value clients, could fail to provide insurance covers to certain customer sectors, particularly to
lower-income groups.

Manoj Kumar (2002) highlights the importance of insurance sector as a mobiliser of savings
and generator of funds for long term investment in infrastructure. Quoting the experience of
Malaysia, Indonesia, Thailand, China and Philippines, it states that there is room for more not
only for existing companies but also for any number of competitors. Its further states opening up
of the sector will certainly mean new products, better packaging and improved customer service.

Stichele M. V. (2003) mentioned that a gradual and considered approach to the deregulation of
financial services is needed to make financial liberalization beneficial to a country. The presence
of foreign insurance companies carries with it some risks of financial instability.

Vijayakumar A. (2004) in his article argued that opening of the insurance sector in India,
fostered competition, innovation and product variation. He adds further in this context that one
must consider aspects such as demand for pension plan, the role of information technology, the
role of regulator, and the role of post office network in sale of insurance.

Krishnamurthy S. (2005) is of the opinion that with liberalization and the entry of private
players' Indian life insurance sector is showing significant changes. It has shown extremely
satisfactory results in terms of premium income and new policies sold, but a huge potential
remains untapped. The opening up has seen improved efforts on educating the customer
regarding insurance needs.

McKinsey & Company (2007) in its report titled 'Indian Life Insurance Sector 2012: Fortune
Favors the Bold', stated that the impressive growth of the sector has been driven by liberalization
that enabled the entry of new players with significant growth aspirations and capital
commitments. These players have contributed to the development of the sector by enhancing
product awareness, promoting consumer education and creating more organized distribution
channels.
CII and Ernst and Young (2008) Report titled 'Indian Insurance Industry: The Task ahead',
stated that the effect of insurance reforms has been positive on insurance industry. There has
been growth in all the segments. Reforms have helped to achieve rapid growth.

White Paper by American Council of Life Insurers (2009), states that the Indian insurance sector
has grown tremendously since it was opened to private investors, including foreign companies in
1999. Private players have made vitally important contributions to overall competitiveness of the
industry. The sector has blossomed since then. However, the life insurance industry is still in its
early stages of evolution as indicated by relatively lower insurance density and penetration.

Micro insurance has emerged in the post liberalization period as an important financial
arrangement to protect low income people from specific risks.

Kutty S. (2010) in an article 'Indian Life Insurance: The Millennial Decade', mentioned that the
liberalization and the opening of the industry to competition has provided a powerful stimulus to
business growth. The key drivers of growth have been high growth rate of the economy coupled
with high savings rate. There is a marked rise in the proportion of insurance funds in the
household financial savings. Much of the growth can be linked to the rapid expansion of reach
and the spread of life insurance services. The expansion and reach has not been confined to just
metros as can be seen from the regional distribution of life insurance offices.

Tiwari A. and Yadav B. (2012) in an article 'Analytical Study On Indian Life Insurance
Industry Post Liberalisation', on the basis of analysis secondary data of the life insurance sector
for a period 2001 to 2010 about total premium, numbers of policies, total income conclude that
the private insurers are giving tough fight to LIC of India.

lain Y. (2013) in an article 'Economic Reforms and World Economic Crisis: Changing Indian
Life Insurance Market Place', stated that in the post liberalization period the life insurance
industry experienced a marvelous growth but this growth has declined in the post-world
economic crisis (2008). The challenges for life insurance industry are product innovation,
distribution, customer service and investments.

Padhi B. (2013) in an article 'Role and Performance of Private Insurance Companies in India in
the Post Liberalisation Era' observes that the overall performance of all the private insurance
companies is found to be very satisfactory.

Yamawathi K. T. H., (2013) in an article 'Performance Evaluation of Indian Life Insurance

Industry in Post liberalization' states the achievements of life insurance sector post liberalization
are laudable. However, sustained growth will require efficient and effective service to policy
holders. In spite of increase in the life insurance business, there is large uninsured population.

Gupta P. and Aggarwal V. (2014) in their working paper for the Centre for WTO Studies, 'An
Analysis of Insurance Sector Penetration Perspective in India' conclude that the increased
penetration with the opening up of the sector gives a clear indication that the private and foreign
players have an ability to enhance the size, and participation in the insurance market worldwide.
1.3 ABOUT KOTAK LIFE

Kotak Mahindra Life Insurance Company Limited is a private Life Insurance company in
India. The company was founded in 2001. It caters to 15 million customers. With 232 branches
in around 167 cities and towns in India with 99,275 agents. Under the umbrella, the company
offers various protection plans, savings and investment plans, child plans and retirement plans.

Kotak Life Insurance's products include rural plans, term plans, savings, children, retirement and
investment plans. The company currently has 32 products including 9 group products, 10 ULIPs
& 18 r As of March 2019, market share of Kotak life insurance increased by 1.6%. The company
garnered a total premium of Rs. 8132 crores. The company has net worth of Rs. multi thousand
crores and assets under management of Rs. 25,936 crores as on 31 March 2019.Rider options (as
on 4 July 2016).

2 . Marketing Concepts

2.1 Marketing Communications

Marketing communication is derived from consumer behavior and market trend associated

with tension line (objectives).

Marketing communication offer solutions to the following questions:

· Why shall the product be used?

· How can the product be used?
· Who can use the product?
· Where can the product be used? And
· When can the product be used?

Marketing communication includes Advertising, Sales Promotion, Events and Experiences

(sponsorship), Public Relations and Publicity, Direct Marketing, Interactive Marketing, Word-of-
Mouth Marketing, Personal Selling. These tools of communication are collectively called as
Marketing Communication Mix.

2.2 The Target Group

A target market is a group of consumers or organizations most likely to buy a company’s

products or services. Because those buyers are likely to want or need a company’s offerings, it
makes the most sense for the company to focus its marketing efforts on reaching them.

Marketing to these buyers is the most effective and efficient approach.

In our internship, we learnt about detailed targeting under Facebook ads manager. It is the way
target specific group of audience whom we need to sell our products or who would require our
products. It includes Demographics, Interests, Behaviors.
I. Demographics: This includes information on employment, wages, life events, parents,
relationship status, individual job.
II. Interests: This includes the areas in which the user is involved, forms of entertainment
he / she likes, such as movies, sports, life activities, music, reading, TV programmers.
Styles of food that a person likes, his / her hobbies, kinds of shopping and fashion that
he / she is interested in, sports / outdoor games that he / she likes to play or the kind of
technology that attracts them.
III. Behaviors: It involves a consumer's purchasing behavior, or the type of smartphone user
they are, their digital habits, travel history, anniversaries, etc.

2.3 Consumer Behavior

Consumer behaviour is the study of how individuals, groups and organizations select, buy, use
and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.

Studying consumers provides clues for improving or introducing products or services, setting
prices, devising channels, crafting messages, and developing other marketing activities (Kotler,
et al., 2008).

3. Reframing of Adds
3.1 Advertising & Process of reframing of Advertisement

Advertising

Advertising is defined as a form of marketing communication that is used by companies to

promote or sell products and services. Advertising is, basically, one of the marketing elements or
subsets. In other words, if you think that marketing is a pie then advertisement is going to be an
important part of the pie.

The primary purpose of advertising is to influence the consumer behaviour by promoting a

product, service, or company. Advertising relies on innovative marketing and advertising to
achieve its goal. In doing so, advertisement spreads knowledge of what you will be selling.

Reframing Ads

It is a process in which we have to select an advertisement that was published by a company and
then figure out the original objective of it and then reframe it with a newer objective, a different
target group, new marketing communication and a new/modified storyline. We also need to
come up with a social media poster for it. It is a long process but it helped us to understand the
motive of making an advertisement. Target group holds an importance as it helps us to figure out
for whom the advertisement has to be made. Consumer Behavior helps us to figure out the what
the consumer perceives about the product. Marketing Communication helps in serving the
purpose of the advertisement, it is also known as Brand.
3.2 Advertising Examples

COMPANY TARGET GROUP USP CONSUMER BEHAVIOR

Saffola Goldd Health conscious "Healthy oil for The brand positions the oil as a
people who care about Healthy defensive wall against heart
fitness and wellness People" diseases. Consumer make purchases
in order to adopt better, healthier
practices.
Male above 45 years "Dil rakho Dil This vegetable oil promotes healthy
of age ka khayal bhi" lifestyle
Middle Aged People Free of Trans Within the price range of a
with children at home Fat consumer

Income group 20-25% LoSorb

Technology Premium health oil

WIPRO People who prefer "Control your Wipro provides smart lighting
High value Goods lights from solutions to it's customers in which
anywhere" they have full power to manage the
lights even when they're at holiday
or work for better security.

Married People Smart Lighting Consumers can transform their

solutions house with all kind of themes for a
luxury experience
People falling in the
age group of 30- Helps in creating Mood lighting for
40years every occasion
Income group 25-50%
 "Ghar ki
Suraksha yani
Nerolac Urban and Semi Urban Izzat ki
Suraksha Households Suraksha" it adds colors to the life

Middle and Upper Gives beauty and standards to a

Middle class People How to make person to enjoy their lifestyle
an Impression
of your premise
Married People with Cost effective
Children
it fascinates that exterior of
Income group- 15-25% thehouse can enhance ijjat where
education fails to do that

Reframing Adds with Storyline

COMPANY NEW CONSUMER BEHAVIOR OF NEW SEGMENT

POSSIBLE
SEGMENT
Saffola Gold Younger Age 40 is the milestone when risk of many health conditions
potential increases. Therefore if consumers try to maintain a healthy lifestyle
sufferers since the beginning, they could enjoy health benefits later.
(below 40
years)
Restaurant Restaurants could use this oil for daily cooking, salad dressing etc
owners as people these days love to eat outside so this could promote
healthy habits.
Educated Saffola gold could create awareness in youth towards implications
 youth of cooking oil of how to manage cholesterol because our young
educated youth are more health conscious than previous
one(Millennials in particular are leading the charge by making
health promoting diet and lifestyle choices)

WIPRO old age with smart and effective lighting solutions accidents can be
minimized or even prevented which would result in the wellbeing
and security of elderly.Furthermore it could save cost and provide
convenience enabling them to live independently at home

People of age These are the people who are very experimentative.
group 30-40
years
Technology Smart lighting tech is making a huge place in the world. People
Driven people demand something which is more energy efficient, customizable
and programmable

Nerolac contactors for contractors nerolac suraksha will be perfect as they have to do
Suraksha their work with full perfection , they must needed nerolac as it
saves prestige
builders for builders nerolac will be the perfect paint as to engage attention
of lot of people who are looking for well maintained house

families House is a necessity with stays with you for a longer period of time
therefore people demand royal colors to experience authenticity

wall artists these master painters add creativity and texture to the house so that
it could stand out from all others therefore they need good paint to
showcase their talent and give beautiful decoration to the wall
 4. Market Research

4.1 Primary Research

Primary research is defined as a methodology used by researchers to collect data directly,

rather than depending on data collected from previously done research. Technically, they “own”
the data. Primary research is solely carried out to address a certain problem, which requires in-
depth analysis.

Businesses or organizations can themselves conduct primary research or can employ a third party
to conduct research on their behalf. One major advantage of primary research is, this type of
research is “pinpointed”, research is carried around only a specific issue or problem and all the
focus is directed to obtain related solutions.

For example, a brand is about to launch a new model of mobile phone and wants to conduct a
research about the looks and features mobile phone they are soon going to introduce.

Organizations can select a qualified sample of respondents that closely resembles population and
conduct primary research with them, to know their opinions. Based on this research, the brand
can now think of probable solutions to make necessary changes in looks and features of mobile
phone.

4.2 Secondary Research

Secondary research is a type of research that has already been compiled, collected, organized
and published by others. This includes reports and studies by government agencies, trade
associations or other companies in your industry. For small enterprises with limited budgets,
most research is typically secondary, because it can be made faster and more affordable than

primary research.

A lot of secondary research is available on the Web, simply by entering key words and phrases
for the type of information you're looking for. You can also obtain secondary research by reading
articles in magazines, trade journals and industry publications, by visiting a reference library, and
by contacting industry associations or trade organizations.

4.3 Campaigns for IOI

1. Questionnaire used in the study.

What are the Expectations of Customers from an Insurance Company? *

Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree

1. To Pledge their Data Accuracy & Privacy

2. Expert Advice & Counselling
3. High claim settlement ratio
4. To ensure Trust and Empathy
5. Goodwill & Service Quality of the Company
6. To create effortless Transactions (Usage of Omni-channels)
7. Ease of Procedures
8. To Provide a Customer Connected Journey
9. Provide with different Choices to Buy
10. Focus on service-Not selling
11. Clarity of policy/pricing before purchase
12. Fast Processing of claims
13. To Pledge their Data Accuracy & Privacy
14. Expert Advice & Counselling
15. High claim settlement ratio
16. To ensure Trust and Empathy
17. Goodwill & Service Quality of the Company
18. To create effortless Transactions(Usage of omni-channels)
19. Ease of Procedures
20. To Provide a Customer Connected Journey
21. Provide with different Choices to Buy
22. Focus on service-Not selling
23. Clarity of policy/pricing before purchase
 24. Fast Processing of claim

Why do we need Insurance? *

Strongly Disagree
Disagree
Neither Agree nor Disagree
Agree
Strongly Agree
1. To Buy Safety and Protection in Advance
2. Tax Benefits
3. To Encourage savings
4. To Secure Future Goals
5. A legacy to leave Behind
6. For Unforeseen Situations
7. Insurance is Cheaper when you're young
8. To deal with Debts
9. Some Insurance are Compulsory
10. Insurance Ensures Family & Business Stability
11. To Secure Income & Assets
12. Additional Benefits
13. To Buy Safety and Protection in Advance
14. Tax Benefits
15. To Encourage savings
16. To Secure Future Goals
17. A legacy to leave Behind
18. For Unforeseen Situations
19. Insurance is Cheaper when you're young
20. To deal with Debts
21. Some Insurance are Compulsory
22. Insurance Ensures Family & Business Stability
23. To Secure Income & Assets
 24. Additional Benefits

2. Analysis

Based on the factor analysis we identified that following are the factors that should be used in the
campaign as the USP.

Importance of Insurance

· Tax benefits
· To secure future goals

Customer Expectations

· High claim settlement ratio

· Service quality of the company.

Possible Campaigns on Importance of Insurance

Tax Benefits:

· Target Segment:
· Working professionals, Parents.

Consumer Behavior:

· People who just stated working want to save more money and invest it somewhere useful.
Paying tax is something they think is useless
 · Parents or new parents have a vision to secure there their family for future. Insurance is
one of the best options for this. They are good earners and hence they must pay back
good amounts in tax. To avoid wastage of money they buy insurance.

Possible Campaign

There can be a consumer interaction activity as well as an educational campaign where people
are approached and they are given a portal in which they can calculate by themselves how much
they are earning and how much they are giving it back as TAX. And after they calculate that they
can be explained that the tax that they pay can be saved by buying an insurance cover as it can
both work as a saving as well as a cover for future uncertainties. Further it can also be explained
to them that the benefit that they get is also exempted from tax benefits.

1. To Secure future goals:

Target Segment:

· Parents.

Consumer Behavior

· Securing the goals of their children is always the priority of the parents.

Possible storyline

An advertisement can be created on this topic to motivate people to buy insurance.

The advertisement can go as follows.

“There is a boy who is being expelled from his house as a child by his step father and didn’t get
enough education and good upbringing. He was brought up by an NGO and later found a
construction laborers job. He has a child now. He wants to give his child good education and
everything else he couldn’t get. But he is also aware that the job he does is very risky and if he
dies someday, his family would be left as he was left. So he was approached by kotak life and
with the help of the staff and agents he was able to buy a term life insurance. After some years
the unwanted happened and he dies in an accident. But because of the insurance his child and
wife could lead a great life and later his son becomes the owner of a construction firm himself.

Possible Campaigns on Customer Expectations

1. High claim settlement ratio.

· Target Segment:

➢ Family

· Consumer Behavior:

➢ Everyone needs a fast and hassle free claim settlement at the time of need.

Possible storyline
There is a guy who is carefree in everything in life. At the age of 10 a ball hits him in the

face instead of going for first aid he says “bhagwan tik krdega” and starts playing again.

Then at the age of 18 he fails his exams but says “ bhagwan tik krdega”. Then at the age
of

25 he carelessly forgets to fill the form for his job and end up losing a job opportunity

When his father scolds he says “ bhagwan tik krdega”. Similar careless activities happen

and one day the guy dies. His wife and children went to claim insurance amount but they

find out that the guy forgot to do some formalities so they didn’t get the claim. Everyone
 in the branch says “bhagwan tik krdega”.

“KOTAK life provide the god level claim settlements”

2. Service quality of the company

· Target Segment:

➢ Working professionals, Parents, Old people, basically everyone

· Consumer Behavior:

➢ People want to have a good experience while they want to avail the services
from some company., they want proper assistance from the company side and
want easy and comfortable interactions and service experience

Possible storyline

A dwarf person visits a branch of Kotak to know about the products and offerings. He
struggles with many things like opening the doors, reaching the help desks and windows
etc. . The manager notices all this from his cabin. The guy is then a bit frustrated and
moves towards the restroom. When he comes back he is surprised to see a door knob on
the lower side of the door, then he is again surprised to see smaller chairs installed in the
waiting area, lower cabins containing the brochures. A higher climbable platform on
helpdesks and also a climbable chair that helps the guy to reach to the head level of the
manager himself. He gets his work done with ease and comfort.
 5. Distribution channels

5.1 DEFNITION OF DISTRIBUTION CHANNEL

A distribution channel is a chain of businesses or intermediaries through which a good or service

passes until it reaches the final buyer or the end consumer. Distribution channels can
include wholesalers, retailers, distributors, and even the Internet.

Distribution channels are part of the downstream process, answering the question "How do we
get our product to the consumer?" This is in contrast to the upstream process, also known as the
supply chain, which answers the question "Who are our suppliers?"
A

distribution channel is a path by which all goods and services must travel to arrive at the
intended consumer. Conversely, it also describes the pathway payments make from the end
consumer to the original vendor. Distribution channels can be short or long, and depend on the
number of intermediaries required to deliver a product or service.

Goods and services sometimes make their way to consumers through multiple channels—a
combination of short and long. Increasing the number of ways a consumer is able to find a good
can increase sales. But it can also create a complex system that sometimes makes distribution
management difficult. Longer distribution channels can also mean less profit each intermediary
charges a manufacturer for its service.

5.2 Types of distribution channels.

While a distribution channel may seem endless at times, there are three main types of channels,
all of which include the combination of a producer, wholesaler, retailer, and end consumer.

I. The first channel is the longest because it includes all four: producer, wholesaler, retailer,
and consumer. The wine and adult beverage industry is a perfect example of this long
distribution channel. In this industry—thanks to laws born out of prohibition—a winery
cannot sell directly to a retailer. It operates in the three-tier system, meaning the law
 requires the winery to first sell its product to a wholesaler who then sells to a retailer. The
retailer then sells the product to the end consumer.

II. The second channel cuts out the wholesaler—where the producer sells directly to a
retailer who sells the product to the end consumer. This means the second channel
contains only one intermediary. Dell, for example, is large enough to sell its products
directly to reputable retailers such as Best Buy.

III. The third and final channel is a direct-to-consumer model where the producer sells its
product directly to the end consumer. Amazon, which uses its own platform to sell
Kindles to its customers, is an example of a direct model. This is the shortest distribution
channel possible, cutting out both the wholesaler and the retailer.

5.3 What is agency channel

Agency is the largest distribution channel of almost all life insurance companies, comprising a
large advisor force that targets various customer segments. The strength of agency channels lies
in an aggressive strategy of expanding and procuring quality business. With focus on sales &
people development, tied agency has emerged as a robust, predictable and sustainable business
model. All life insurance companies have an agency-building distribution strategy under which
they recruit, train, finance, and supervise their agent/advisers. For decades, agency was the only
distribution channel for life insurance in India. Even today more than 70% of business is carried
through insurance agents. Through agency channel, personal contact and relationship can be
established with the customer. The system of agents is a major source of both presales and post
sales services to customers, since it has the direct relationship with customers. Due to personal
contact, it can provide valuable feedback about the need and expectation of consumers.
However, it is nowadays considered as an old fashioned channel and not fully updated with latest
technologies.

Today’s insurance agents has to know which product will appeal to the customer, and also know
his competitor’s products in the same space to be an effective salesman who can sell his
company, the product and himself to the customer. To the average customer, every new company
is the same.

The new companies are looking for educated, aware individuals with marketing flair, an elite
group who can be attracted only with high remuneration, all of which may not be possible in this
business with its price pressures and the complexity of selling insurance. Unable to attract this
segment, they have started easing recruitment conditions as against the stringent norms they had
earlier, thereby diluting the process. While the public sector insurer LIC is able to attract agents,
it continues to suffer from high attrition rates due to indiscriminate agent appointment. The
challenge here is the lack of knowledge of the competitive market and the inability to do
intelligent comparisons with the competitor’s products. Education and training of these agents is
a serious challenge for the insurance company. Another social feature in the market is the
considerable respect for age in Indian society and a belief that an older person knows better. A
very young up- market agent who is typical salesman may not appeal to a large segment of the
middle class, which is looking for a solid trustworthy person from whom they can buy insurance.
Gender of agents is another relevant feature in the rural context that makes a difference,
especially for the female population. Women to whom the customers can relate e.g. nurses, gram
sevikas can target the female segment of the population more effectively. What is applicable for
the rural women and children health programs and population control programs is equally
applicable for insurance selling also. Max Life has adopted a version of this strategy by
appointing gram sahayaks to sell and service the rural customers. With this kind of segmentation
of intermediaries the challenge for the insurance company lies in training and education these
people to become effective sales persons.

5.4 DEVELOPMENT OF DISTRIBUTION CHANNEL

Before developing a distribution channel strategy, it's important to revisit what a distribution

channel is. Put simply, a distribution channel is the path that a product or service takes to reach
the consumer. A "direct" channel allows consumers to buy directly from the manufacturer, while
an "indirect" channel allows consumers to buy from a wholesaler or retailer (who buys from the
manufacturer of the product). Distribution channels can be simple or incredibly complex
depending on the type and number of intermediaries involved. In many instances, manufacturers
leverage multiple distribution channels to maximize revenue.

No of branches of competitor’s vs Kotak Life.

In tier 1 cites.
 Bangalor Delh Chenna Mumba Kolkat Ahmedaba Hyderaba
e i i Pune i a d d

KOTAK
LIFE 7 6 9 3 5 8 2 1
ICICI
prudentia
l 5 16 3 4 9 5 3 4

TATA
AIA 4 2 2 6 7 1 5 2
Aditya
Birla sun
life 5 5 5 5 9 10 3 7

Bajaj
Allianz 6 6 6 4 7 6 2 4

Aditya birla ICICI

    Kotak life sunlife prudential TATA AIA

1 Dehradun 1 1 1 1

2 Chandigarh 1 1 1 2
 3 Gaziabad 1 2 2 1
4 Gurgaon 1 2 2 1
5 Jaipur 2 2 2 2
6 ludhiana 1 1 2 2
7 Goa 2 1 1 1

8 Lucknow 2 2 2 1
9 Noida 2 1 2 1
10 Vellore 1 1 1 1
11 kochi 1 1 4 2
12 mysore 1 1 1 2
13 merrut 1 1 1 1
In some tier 2 cities

5.5 Recommendation for Kotak Life.

It is seen for the table that the branches of kotak life on an average are less than the competitors
in tier 1 cities. In tier 2 cities kotak life is competing well with the competitors. Branches should
be increased in Hyderabad, Hyderabad, Pune and Ahmedabad.

Increasing number of agents

We know that the most number of agents in any company in India is in LIC. They have many
agents. So we took LIC as the benchmark and tried to analyse why people give preference to LIC
and become agents with LIC. For that we surveyed LIC agents and asked them some questions to
identify what are the perks of becoming the agent of LIC so that we can implement them in
KOTAK life which can in return help in increasing the number of agents of the company.

The questionnaire used in the study is as follows.

Why are agents associating with LIC? *

Choose only one option in each row
Strongly Disagree

Disagree

Neither Agree nor Disagree

Agree

Strongly Agree

1. LIC is an Old Player

2. Good Retaining Strategies
3. High Market Share
4. Follows Direct Distribution Channel
5. Provides High Remuneration
6. Rewarding Careers
7. Agents receive bonuses & Advances of Festive Seasons
8. Provides World Class Training
9. Gives Full Independence to work
10. Helps in Building a Successful Team
11. Provides Financial Strength
12. Offers Full Range of Products & Services
13. LIC is an Old Player
14. Good Retaining Strategies
15. High Market Share
16. Follows Direct Distribution Channel
17. Provides High Remuneration
18. Rewarding Careers
19. Agents receive bonuses & Advances of Festive Seasons
20. Provides World Class Training
 21. Gives Full Independence to work
22. Helps in Building a Successful Team
23. Provides Financial Strength
24. Offers Full Range of Products & Services

The responses were collected from agents on these questions

180 agents were contacted to collect the responses.

➢ Analysis of the questionnaire: based on the factor

analysis following are the USP’s why people prefer more LIC

✓ Easy and higher claim settlement

✓ Trust issues/ brand trust: return of money is more
important than return on money.

USP: Claim Settlement.

Target segment

1. Middle class individuals.

2. Businessmen
3. Working professionals.
4. People from all walks of life.

Consumer behavior:

1. Middle class individuals: As

these people always want to have the settlement ration of the fund ASAP, as they are low
on resources.
 2. Businessmen: Business class
people always want to have the fast claim settlement so that they can easily pay off their
loans on time without any delay. If some miss happening takes place with the business
man who is having a life insurance, that life insurance helps his family to settle after his
death and also helps them to secure their business and explore it with faster claim
settlement service.

3. Working professionals:
working people always have risk regarding their life or family, in case of loss or risk they
want settlement claims.

4. People from all walks of life:

There has been a set mindset of people that the money is safe only when it is in the hands
of a government owned company or an agency. And the reason behind this psychology is
that government has entered into Insurance business years before private companies
started working. Till then Insurance companies such as LIC was able to build a huge
customer base.

Possible storylines based on different segments:

1. Middle class individuals:

There is a man who has life insurance, he is in depression, driving a car met an
accident then his wife got anxious who's gonna pay off the loans he has taken for his
business. So here the company come and resolve their problem by providing them
fast claim settlement.
 2. Businessmen: A businessman
had to go to meet a client on urgent basis. So, he asks his pilot to get his jet ready.
While on the way Some technical fault in the jet occurred and they had to make and
emergency landing on a flat plain somewhere in the unknown place. No signals,
network nothing, the jet's radio is not working too. They knew they were in serious
trouble. Back in their houses the news reaches that the plane had crashed and since no
connection could be stablished again, the businessman and the pilot are considered
dead. Search operations couldn’t find the plane because the plane was out of radar for
around 100 miles. The businessman and the pilot start walking alone. They struggled
a lot to reach a village in 10 days. When they both reach their place, they find out that
the pilot’s family has received a claim form Kotak life. But the businessman’s family
has already started to struggle because the creditors had already started to force them
to pay back and they are also being troubled by other liabilities. All this because the
businessman’s insurers are not giving the claim because of some hidden terms and
conditions. Then on the screen the message flashes " Buy Kotak You still have time
because your plane may not find a flat plain"

3. Working professionals: A
man who is always busy in their work ,he has no time for his family and himself also,
one day he fell ill because of work load and now he doesn't have job and he need
money then he can take advantage of claim settlement.

4. People from all walks of life:

o The advertisement is based

on raw reality wherein an individual is going through a lot of problems while settling a
 claim from an insurance company such as - standing in a long queue or giving extra
money under the table for fast processing etc. Whereas another person visits kotak and is
very happy from it's services. (so a comparison video could be shown side by side to
make people aware that private companies are taking care of their customers)

o Like Father, Like Son they

say. And here in this ad too, we see a father-son duo, wherein the Father's action of
dressing up for an office presentation inspires the Child to do the same. The child trusts
that what his father does is right and is inspired by him, even for simple things like
dressing up for work from home during this pandemic caused by Covid 19. Just the way
your family puts their trust in you, our improved Claims Paid Ratio shows our continuous
efforts to honor the trust that countless Indian families place on us, specifically now of
truth – when a life insurance claim is made.

USP: Brand trust

Target segments

1. Silent generation
2. Middle class individuals
3. Family
4. People from rural areas.

Consumer behaviors
 1. Silent generation: As these
peoples are old age person & individuals, so they always want an insurance on which
they can rely, and these people wanted a brand on which they can have trust. As Brand
trust is major concern for these people.

2. Middle class individuals: As

these people belongs to the middle class they think more about their future so they want
that their insurer provide them good services so they can trust on the company.

3. Family: When the things like

trust occurs between customer and the company then it becomes hard for other company
to break it. Not only company but customer also wants the brand to provide the product
which is trustworthy. When this expectation of customer matches with experience then it
attracts the customer towards the company and makes him loyal also

4. People from rural areas: It is

seen in rural areas people prefer branded products more then a local product as they think
local may run with their money or can be worthless while a Brand name is a big name
and they will not run with it

Possible story lines:

1. Silent generation: Add start

like this there was a family of old age couples who both are living alone at there home
 and their children are abroad. As both are old age and have some health issue also ,so one
day women tell her husband that if someday if any of us may be face some type of
problem or faced any issue then who is there on which we can rely, then men said that
don’t be tense darling, as we both are insured with LIC & i have full trust on them that if
anything happen to us they will help us and stable the situation so keep calm and enjoy.

2. Middle class individuals:

There was a father in a family who was the only earner and suddenly something
mishappen and he got died then the children of that person went to the kotak life and they
quickly provided them their claim so they started trusting more on the kotak life and took
one more policy for their future.

3. Family: The ad shows the

story of father and daughter living in village where father is taking her Daughter to the
market. In between there is a river which they must cross. It was a small river Which
people crosses without any help, through their foots as well. The father asks his daughter
to hold his finger while crossing the river, the daughter refuses to hold his father’s finger
and ask her father to hold her Hand. The father says it’s a same thing my girl. The girl
replied no papa when I hold your hand I Can leave it but when you hold my hand you’ll
never leave it. Thus as father don’t leave his daughter's Hand Similarly the insurance
company will also never leave their customers as well as their agents hands.

People from rural areas: The add shows some rural people talking about investment as they want
to save money for future ,for their children .Suddenly a guy shows up saying I have invested my
money in xyz corporation in the form of shares and is getting good return . Then a elder among
them who has the knowledge of shares and insurance explains the difference i.e.. between the
guaranteed income and unguaranteed income the people understands the difference and decides
to invests in kotak life insurance as it has a good brand equity and good will.

6 Competitive analysis
Competitors of KOTAK LIFE

➢ HDFC Life
➢ ICICI Prudential
➢ TATA AIA life
➢ Aditya Birla Sun life
➢ Bajaj Allianz

6.1 CONCLUSION FOR THE CAMPAIGNS DONE BY THE

COMPITITORS ON DIFFERENT PLATFORMS AND ON DIFFERENT
USP’s

· Bajaj Allianz

Most focused target segments

1. Parents
2. Old aged
3. Working professions
4. Youngsters

Most focused heroes.

· For Importance of insurance campaigns

1. Family security
2. Retirement planning
3. Securing future goals

· For expectations

1. High claim settlement ratio

 2. 23x7 services available

Some important findings

1. Bajaj focuses on Informative content the most in Facebook and twitter.

2. It focuses the least on social causes.
3. Social media occasions are highlighted on every platform almost equally.
4. Engagement or interacting with customer is the most on Facebook. In twitter,
LinkedIn and YouTube it’s similar.
5. Bajaj focuses on customer expectations the least on Facebook but equal in
twitter, LinkedIn and YouTube.

2019 Facebo Twitter Linkedi Youtub

ok n e
IOI 1 2 0 1
Expectatio 0 2 2 2
n
SMC 6 7 4 6
SC 0 0 0 0
Informativ 16 32 8 2
e
Engageme 6 3 3 2
nt

2020 Facebook Twitter Linkedin Youtube

IOI 0 2 2 0
Expectation 6 12 0 6
SMC 2 11 7 3
SC 0 1 1 0
Informative 13 25 31 6
Engagement 2 15 15 4

· ICICI Prudential

Most focused target segment

1. Salaried individual
2. Old aged
3. Working professions
4. Family

Most focused heroes.

· For Importance of insurance campaigns

1. Grow money and save tax

2. Insure liabilities
3. Securing future goals
Some important findings

1. ICICI focuses on Informative content the most in Facebook and twitter.

2. It focuses the least on social causes.
3. Social media occasions are highlighted the most on Facebook and the least on
YouTube.
4. Engagement or interacting with customer is the most on Facebook. In twitter,
LinkedIn and YouTube it’s similar.
5. ICICI focuses on customer expectations the least on Twitter but equal in twitter,
LinkedIn and YouTube.

2019
Twitter LinkedIn YouTube Facebook
IOI 8 9 5 19
Expectations 6 3 3 3
SMC 4 8 4 15
SC 0 0 1 9
Engagement 1 4 2 6
Informative 11 10 22 22

2020
Youtube Twitter Facebook Linkdin
SC 5 6 1 8
SMC 1 5 9 12
IOI 14 1 6 7
informative 25 1 4 4
Engagement 16 16 19 21
Expectations 17 4 6 8

· HDFC Life

Most focused target segment

1. Middle income
2. Young achievers
3. Investors
4. Parents with school going kids

Most focused heroes.

· For Importance of insurance campaigns

1. Long term investments

2. Securing future goals

· TATA AIA

Most focused target segment

1. Parents
2. Old aged
3. Working professions
 Most focused heroes.

· For Importance of insurance campaigns

· Family security
· Future security
· Retirement planning

· For expectation campaigns

· High claim settlement

· Expert advice

Some important findings

1. TATA focuses on Informative content the most in Facebook and twitter.

2. It focuses the least on social causes.
3. Social media occasions are highlighted the most on Facebook and twitter
4. Engagement or interacting with customer is the most on Facebook. In twitter,
LinkedIn and YouTube it’s similar.
5. TATA focuses on customer expectations the least on LinkedIn and most on
twitter.

2019 Facebook Twitter Linkedin Youtube

IOI 9 10 9 1
Expectation 6 3 2 1
SMC 26 19 8 1
SC 4 3 6 2
Informative 22 25 4 2
Engagement 10 3 8 2

2020 Facebook Twitter Linkedin Youtube

IOI 0 0 4 5
Expectation 1 0 4 1
SMC 2 3 6 2
SC 2 2 3 1
Informative 10 8 6 0
Engagement 7 9 5 1

· Aditya Birla Sunlife

Most focused target segment

1. Middle class people

2. Old aged

Most focused heroes.

· For Importance of insurance campaigns

· Healthcare
· Secure future goals
 · For expectation campaigns

· Tax benefits
· Providing claim during pandemic

Some important findings

➢ Aditya Birla focuses on Informative content the most in twitter and least in
YouTube
➢ It focuses the least on social causes.
➢ Social media occasions are highlighted the most on Facebook and least on
YouTube
➢ Engagement or interacting with customer is the most on Facebook and least on
LinkedIn
➢ Aditya Birla focuses on customer expectations the least on LinkedIn and most
on twitter.

Facebook Twitter Linkedin Youtube

Category
SMC 20 16 6 3
SC 2 1 0 0
IOI 6 5 0 5

Informative
33 57 11 5

Engagement
18 5 3 6

Expectation
11 14 5 8
6.2 Conclusion for kotak life

Most focused target segment

1. 25-45 Aged people

2. Sec A Category
3. Parents with early school children
4. Household
5. Working class

Most focused heroes.

· For Importance of insurance campaigns

· Life Insurance
· Term plans
· Retirement planning

· For expectation campaigns

· High claim settlement

· Expert advice
· Timely assistance
· Resolving payment issues

Some important findings

1. KOTAK focuses on Informative content the most in Twitter and LinkedIn

 2. It focuses the least on social causes.
3. Social media occasions are highlighted the most on Facebook and twitter
4. Engagement or interacting with customer is the most on twitter and LinkedIn
Kotak focuses on customer expectations the least on Facebook and most on LinkedIn.

Facebook Twitter Linkedin Youtube

Category
SMC 13 16 6 1
SC 1 2 1 0
IOI 9 36 3 19
Informative 4 92 43 30
Engagement 10 74 26 0
Expectation 0 3 10 0

6.3 Recommendations for company

1. It is seen in the analysis that competitors are focusing more on the most
socially used platforms like Facebook and YouTube. But Kotak like is more
active on professional platforms like twitter and LinkedIn.
2. Kotak life should increase its interactions on social causes because
competitors are not focusing on it and Kotak can experience benefits form
this.
 3. It should start focusing more on Importance of Insurance.
4. It should start focusing more on Expectation.
5. The target segment that is used by the company is already enough.
6. Competitors are also focusing on SMC’s and SC’s Kotak life can also focus
on them

1. References
https://insurance.kotak.com/why-kotak-life

https://www.iii.org/publications/insurance-handbook/brief-history

https://www.loma.org/Posts/Spotlight/A_brief_history_of_life_insurance.aspx