Professional Documents
Culture Documents
Presented By
Arti Kumari Debarati Sen Gupta Monalisa Ghosh Maneet Kumar Mani Shankar Sonkushre Man Mohan Anand
Abstract
The case deals with the strategy reformation of LIC to compete with new entrants in the field of insurance in India. Till year 2000, LIC was the only company providing insurance services to Indian customer. After year 2000 many new companies enters into the field of insurance such as ICICIPrudential and Max New York etc. To compete with the new players LIC totally reformed its strategy to maintain its market leader position in insurance sector of Indian economy
Coverage of Area
In Its new strategy to compete the new entrants , LIC focused majorly on following areas Training and development of sales force Technological Edge Business Process Re-engineering Promotional Strategy
Technological Edge
Technology plays a vital role in business. Over the years businesses have become dependent on technology so much so that if we were to take away that technology virtually all business operations around the globe would come to a grinding halt. this case LIC has used various technologies to improve the effectiveness of business.
LIC used WAN (wide Area Network) to interconnect its branches which facilitate the customers to pay their premium at any branch. LIC used IVRS (Interactive Voice Responsive System) that enables the customer to get their query resolved in real time and obtain information on their policy.
Promotional Strategy
Promotion is defined as the coordination of all seller-initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. Advertising is defined as any paid form of non personal communication about any product, organization, services or idea by an identified sponsor. Objective of promotion and advertisement is create brand identity and brand equity. A Brand is defined as a name, term, sign, symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.
Promotional Strategy
In the case LIC has taken help of advertising agencies to promote the Brand LIC. They used creative slogans which affects the customers mindset and able to attract their attention. Those slogans helped LIC to make the customer emotionally attached to services provided by them. They spend huge amount of money in advertising and sales promotions to build their brand equity and identity. To avoid the interference in communication to customer, they reduced the number of ad agencies and worked with limited number of those agencies so that the message reached to customer, doesnt lose the main objective.
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