Life Insurance Corporation of India sustaining a brand through generations

Abstract

This is a case – study on the marketing operations of the Life Insurance Corporation of India. It revolves around the hopes and aspirations of Mr. V.K. Sharma who presided over the organisation from 2016 to 2019. Life Insurance Corporation Of India has an overwhelming edge in the insurance market in India. This is has to seen in context with the monopoly it enjoyed for decades before India liberalised the insurance sector and opened it up for private investment. As Mr. Sharma was retiring he confided to us the opportunities and threats that he felt the organisation might encounter into the future. He was particularly concerned about whether LIC will be able to capitalize on the opportunities presented by the low penetration of insurance in India and its demographic dividend. This was because LIC’s perception as an “Old, Legacy” brand among the youth. The case traces the evolution of life insurance business in India after independence till present day. It examines the current market scenario of life insurance market in India. It presents the marketing mix of LIC as a company for its insurance services. It presents the product portfolio of LIC which reflects its stated goal of casting the widest net when it comes to providing life insurance cover to Indians. The pricing strategies of LIC are also presented along with the dynamics that govern it. We interacted with many employees of LIC who have worked in the company in various capacities. Therefore, to understand the sales and distribution operations of the company we interacted with Sourav Sen, a Development officer in Burdwan Branch and Jayasri Roy, an Assistant in sales dept. of Burdwan branch. The case presents the inferences of our interactions with them. To analyse the promotional activities of LIC, we interacted with Mr. Vinay Kumar, a Senior Marketing manager in the company who has worked for almost 3 decades. He elaborates the finer details that he feels are missing in the promotions of the company and gives his opinions going forward. He echos the central concern of the ex – Chairman of LIC Mr. V.K Sharma about LIC having a problem with its brand perception as being an old brand among the youth that are to be the primary customers for the company going into the future. Finally the case analyses the promotional activities of the competitors of LIC and how they are positioning themselves in contrast with LIC. It is made evident by the end of the case that apprehensions of Mr. Sharma as the competitors of LIC have consistently been gaining market share over the years. The problem of brand image of the LIC is further validated by presenting study conducted on Brand awareness and preferences among various life insurance brands. The study finds that the huge gulf in market share is not reflection in terms of awareness and perceptions regarding the various brands. It leaves the reader to think about the possible marketing initiatives that the Life Insurance Corporation Of India might undertake to address this concer