A Study

On
Effectiveness of various advertisement strategies
followed by Reliance Life Insurance in Nellore City

Submitted by
M.SRIDHAR
IV SEM-MBA
7NBNL005
(2007-2009)
 A Study

On

Effectiveness of various advertisement strategies followed by

Reliance Life Insurance in Nellore City

Submitted To:
Mr. SUNDEEP KUMAR
FACULTY SUPERVISOR
INC- NELLORE

A Synopsis Submitted by:

M.SRIDHASR
IV SEM-MBA
7NBNL005
(2007-2009)
 CONTENTS

S. no Particular Page no

1. Introduction ……………………………………………….

2. Company Profile ………………………………………….

3. Industry Profile ………....................................................

4. Objectives ………………………………………………….

5. Methodology ……………………………………………….

6. Schedule…………………………………………………….

7. References ………………………………………………….
 INTRODUCTION

An advertising strategy is a campaign developed to communicate ideas about products

and services to potential consumers in the hopes of convincing them to buy those
products and services. This strategy, when built in a rational and intelligent manner, will
reflect other business considerations (overall budget, brand recognition efforts) and
objectives (public image enhancement, market share growth) as well. As Portable MBA in
Marketing authors Alexander Hiam and Charles D. Schewe stated, a business's
advertising strategy "determines the character of the company's public face." Even
though a small business has limited capital and is unable to devote as much money to
advertising as a large corporation, it can still develop a highly effective advertising
campaign. The key is creative and flexible planning, based on an indepth knowledge of
the target consumer and the avenues that can be utilized to reach that consumer.

Today, most advertising strategies focus on achieving three general goals, as the Small
Business Administration indicated in Advertising Your Business: 1) promote awareness of
a business and its product or services; 2) stimulate sales directly and "attract
competitors' customers"; and 3) establish or modify a business' image. In other words,
advertising seeks to inform, persuade, and remind the consumer. With these aims in
mind, most businesses follow a general process which ties advertising into the other
promotional efforts and overall marketing objectives of the business.

Today so many companies are entered in to the Insurance field. Some companies are
not followed and not give them any advertisement, that companies are only followed the
references and achieve the business. How to follow the advertisement strategies these
reason I would select this topic “A Study on Effectiveness of various advertisement
strategies followed by Reliance Life Insurance in Nellore City
 COMPANY PROFILE

About Reliance Life Insurance

Reliance Life Insurance offers you products that fulfill your savings and protection
needs. Our aim is to emerge as a transnational Life Insurer of global scale and standard.

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of

Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private
sector financial services companies, and ranks among the top 3 private sector financial
services and banking companies, in terms of net worth. Reliance Capital has interests in
asset management and mutual funds, stock broking, life and general insurance,
proprietary investments, private equity and other activities in financial services.

Reliance - Anil Dhirubhai Ambani Group also has presence in Communications,

Energy, Natural Resources, Media, Entertainment, Healthcare and Infrastructure.

Vision & Mission

Vision

Empowering everyone live their dreams.

Mission

Create unmatched value for everyone through dependable, effective, transparent and
profitable life insurance and pension plans.

Our Goal

Reliance Life Insurance would strive hard to achieve the 3 goals mentioned below:

• Emerge as transnational Life Insurer of global scale and standard

• Create best value for Customers, Shareholders and all Stake holders

• Achieve impeccable reputation and credentials through best business practices

Our Founder

Few men in history have made as dramatic a contribution to their country’s economic
fortunes as did the founder of Reliance, Shri. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of India’s capital markets, the champion of shareholder
interest.

But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest
private sector enterprise.

When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into a Rs 60,000 crore colossus—an achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.

Dhirubhai is widely regarded as the father of India’s capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a place
patronized by a small club of elite investors which dabbled in a handful of stocks.

Undaunted, Dhirubhai managed to convince a large number of first-time retail investors

to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.

Under Dhirubhai’s extraordinary vision and leadership, Reliance scripted one of the
greatest growth stories in corporate history anywhere in the world, and went on to
become India’s largest private sector enterprise.

Through out this amazing journey, Dhirubhai always kept the interests of the ordinary
shareholder uppermost in mind, in the process making millionaires out of many of the
initial investors in the Reliance stock, and creating one of the world’s largest shareholder
families.

Achievements

• RLIC has been one of the fast gainers in market share in new business premium
amongst the private players with an incremental market share of 4.1% in the
Financial Year 2007-08 – from 3.9% in April 07 to 8% in Feb 08. ( Source: IRDA)

• Also continues to be amongst the fast growing Private Life Insurance

Companies with a YOY growth of 195% in new business premium as of
Mar’08.

• A Company that has crossed 1.7 Million policies in just 2 years of operation,
post take over of AMP Sanmar business.

• Initiated Express Life – an Unique ’Over the Counter’ sales process for Unit
Linked Insurance Policies in the Industry.
 • Accomplished a large distribution ramp-up in the Industry in a short span of time
by opening 600 branches in 10 months taking the overall branch network above
740.

• RLIC continues to be one of the two Life Insurance companies in India to be

certified ISO 9001:2000 for all the processes.

• Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007- Ceritificate of

Merit in the Financial Services category by Council for Fair Business Practices
(CFBP).

Leadership Team

Gautam Doshi, Director

Satya Pal Talwar, Director

Saumen Ghosh, Group President

P Nandagopal, Chief Executive Officer

Malay Ghosh – Deputy Chief Executive Officer

Maneesha Thakur, Chief Human Resources Officer

Rajesh Bahl, Chief Financial Officer

Pournima Gupte, Appointed Actuary

C Mohan, Chief Technology Officer

R Rangarajan, Chief Investment Officer

S V Sunder Krishnan, Chief Risk Officer

Saroj K Panigrahi, Head – Legal, Compliance & Company Secretary

 INDUSTRY PROFILE

Brief History of the Insurance Sector in India

Insurance sector in India is one of the booming sectors of the economy and is growing at
the rate of 15-20 per cent annum. Together with banking services, it contributes to about 7
per cent to the country's GDP. Insurance is a federal subject in India and Insurance
industry in India is governed by Insurance Act, 1938, the Life Insurance Corporation Act,
1956 and General Insurance Business (Nationalization) Act, 1972, Insurance Regulatory
and Development Authority (IRDA) Act, 1999 and other related Acts.

The origin of life insurance in India can be traced back to 1818 with the establishment of
the Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide
for English Widows. In those days a higher premium was charged for Indian lives than the
non-Indian lives as Indian lives were considered riskier for coverage. The Bombay
Mutual Life Insurance Society that started its business in 1870 was the first company to
charge same premium for both Indian and non-Indian lives. In 1912, insurance regulation
formally began with the passing of Life Insurance Companies Act and the Provident Fund
Act.

By 1938, there were 176 insurance companies in India. But a number of frauds during
1920s and 1930s tainted the image of insurance industry in India. In 1938, the first
comprehensive legislation regarding insurance was introduced with the passing of
Insurance Act of 1938 that provided strict State Control over insurance business.

Insurance sector in India grew at a faster pace after independence. In 1956, Government
of India brought together 245 Indian and foreign insurers and provident societies under
one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by
an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore.

The (non-life) insurance business/general insurance remained with the private sector till
1972. There were 107 private companies involved in the business of general operations
and their operations were restricted to organized trade and industry in large cities. The
General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from January 1, 1973. The 107 private insurance
companies were amalgamated and grouped into four companies: National Insurance
Company, New India Assurance Company, Oriental Insurance Company and United India
Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

In 1993, the first step towards insurance sector reforms was initiated with the formation of
Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.
Malhotra. The committee was formed to evaluate the Indian insurance industry and
recommend its future direction with the objective of complementing the reforms initiated
in the financial sector.

Key Recommendations of Malhotra Committee

Structure

• Government stake in the insurance Companies to be brought down to 50%.

• Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
• All the insurance companies should be given greater freedom to operate.

Competition

• Private Companies with a minimum paid up capital of Rs.1billion should be allowed to

enter the industry.
• No Company should deal in both Life and General Insurance through a single Entity.
• Foreign companies may be allowed to enter the industry in collaboration with the
domestic companies.
• Postal Life Insurance should be allowed to operate in the rural market.
• Only one State Level Life Insurance Company should be allowed to operate in each
state.

Regulatory Body

• The Insurance Act should be changed.

• An Insurance Regulatory body should be set up.
• Controller of Insurance should be made independent.

Investments

• Mandatory Investments of LIC Life Fund in government securities to be reduced from

75% to 50%.
• GIC and its subsidiaries are not to hold more than 5% in any company.

Customer Service

• LIC should pay interest on delays in payments beyond 30 days

• Insurance companies must be encouraged to set up unit linked pension plans.
• Computerization of operations and updating of technology to be carried out in the
insurance industry.

Malhotra Committee also proposed setting up an independent regulatory body - The Insurance
Regulatory and Development Authority (IRDA) to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent
companies with economic motives.

Insurance sector in India was liberalized in March 2000 with the passage of the Insurance
Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private
players and allowing foreign players to enter the market with some limits on direct foreign
ownership. There is a 26 percent equity cap for foreign partners in an insurance company. There is
a proposal to increase this limit to 49 percent. The opening up of the insurance sector has led to
rapid growth of the sector. Presently, there are 16 life insurance companies and 15 non-life
insurance companies in the market. The potential for growth of insurance industry in India is
immense as nearly 80 per cent of Indian population is without life insurance cover while health
insurance and non-life insurance continues to be well below international standards.
Details of the company person:

Name : Mr. K. Sai Manoj

Designation : Area Development Officer

Company : Reliance Life Insurance

Branch : Nellore

Contact No : 91-9393569393
 OBJECTIVES

Primary Objective:-

• To know the effectiveness of various advertising strategies followed by Reliance

Life Insurance in Nellore City

Secondary objective:

• To know the various advertising strategies of Reliance Life Insurance.

• To know the effectiveness of advertisement among the customer

• To know the benefit of implementing the advertising strategies

METHODOLOGY

Sources of data: The data is collected mainly from primary and secondary data.

Primary data:

• Questionnaire method.

• Direct interview method

Secondary data:

Text Books:
 1. Philip Kotler – Marketing Management – 10th Edition

ICFA Derivative Books: and websites

SCHEDULE

S.No Week No Duration Details

1. 1st Week 17-11-2008 to 22-11-2008 Selecting the Management thesis-1
title by discussing with the faculty
supervisor
2. 2nd Week 24-11-2008 to 29-11-2008 Submit the synopsis

3. 3rd Week 1-12-2008 to 6-12-2008 Preparation of the questionnaire

4. 4th Week 8-12-2008 to 13-12-2008 Collecting the data on the basis of

questionnaire and Analyzing the data
and framing the report
5. 5th Week 15-12-2008 to 20-12-2008 Submission of the interim thesis

6. 6th Week 22-12-2008 to 27-12-2008 Interim thesis presentation

7. 7th Week 29-12-2008 to 3-01-2009 Gathering information from the

various secondary sources
8. 8th Week 5-01-2009 to 10-01-2009 Gathering information from the
various secondary sources
9. 9th Week 12-01-2009 to 17-01-2009 Conducting interviews with the
middle class customers and other
customers
10. 10th Week 19-01-2009 to 24-01-2009 Gathering information from the
various secondary sources
11. 11thWeek 26-01-2009 to 31-02-2009 Tabulation of the collecting raw data

12. 12th Week 02-02-2009 to 07-02-2009 Analyzing the data and framing the
 report
13. 13the Week 09-02-2009 to 14-02-2009 Preparation of the final thesis

14. 14th week 16-02-2009 to 21-02-2009 Final thesis presentation, Submission

of the report

REFERENCES

In order to obtain more information regarding the present study and to

substantiate it with theoretical proof, the following references were

made:-

· Library of College

· Insurance chronicle

Websites visited:

 www.google.com

 www.reliancelife.co.in

 www.insuranceinindia.org