Contemporary Concerns Study – Term 4

A Marketing Case on Life Insurance Corporation Of India

By- Under the guidance of –
Gaurav Singh – 1811208 Prof. Avinash Mulky
Souvik Roy – 1811127

PROJECT DETAILS

1. REASON FOR INTEREST IN THE PROJECT

Life Insurance Corporation of India is the largest insurance and investment company in India with
assets estimated at $350 billion. It operates a number of linked subsidiaries like LIC Housing
Finance, LIC Pension Funds, LIC International, LIC Card Services, LIC Mutual Fund and IDBI Bank.
As a state-owned company it is a crucial pillar of Indian economy which, in 2016, invested back more
than $200 billion. Our interest in the organisation from a sales and marketing perspective is due to the
fact that organisation is considered to be the pioneer of agent based insurance sales in India and has
set the standards in policy sales in India which has been adopted by many other insurance companies.
LIC has also had innovative marketing campaigns like Zindagi Ke Saath Bhi – Zindagi Ke Baad Bhi.

2. OBJECTIVES OF THE STUDY

LIC enjoys a market share of 70% in the Indian insurance sector and has robust sales & marketing
operations. The Objective of this case will be to analyse and present the how LIC sees itself moving
forwards henceforth and what marketing challenges it anticipates to face in the near future from a
marketing perspective.

3. SOURCES OF DATA

The sources of data would be primary data from interviews of company’s executives throughout its
hierarchy. We shall be having discussions with top executives like former chairman, Zonal and
regional managers and sales executives. Apart from this we shall be analysing financial statements,
marketing campaigns and secondary data to present the case regarding our issue.

4. STRUCTURE OF THE CASE

The case will be structured around the experiences of a recently outgoing top-executive of the
company. Explaining the initiatives he took as a leader and how he sees the future initiatives of LIC
from a marketing perspective.
 DECISION SITUATION FOR THE ORGANISATION

INDUSTRY OVERVIEW:
Robust Demand: The insurance industry is expected to reach about $280 million in India by 2020,
driven by increasing awareness, innovative products and more distribution channels.

Attractive Opportunities: Insurance reach is still low in India. Overall insurance penetration is only
3.69% in India (as of 2017).
Policy support: National health protection scheme under Ayushman Bharat launched in 2018 gives
support to 100 million vulnerable families in India
Increasing Investments: Insurance sector companies in India raised around 434.3 billion Rs. through
public issues in 2017.

LIC OVERVIEW:

Central Office 1
Zonal office 8
Divisional office 113
Branch office 2048
Mini offices 1227
Satellite offices 1430
(as on 31.03.2018)

MARKETING CHALLENGES:

We analyse the marketing strategies and structure of the LIC’s marketing organisation. This will
broadly comprise highlighting LIC’s strengths in the Marketing Mix. Has it experienced failures ? and
if it has then What went wrong ?

WAY FORWARD:

The Case shall put in perspective LIC’s marketing activities and provide the reader an opportunity to
reflect on the future of LIC’s initiatives and analyse its prospects.

5. TIMELINE OF DELIVERABLES: 10 WEEK - PROJECT

2 weeks: Study of published data

4 weeks: Primary data collection and interviews (LIC executives, employees and customers)

2 weeks: Analysis of data

2 weeks: Final report preparation