MARKETING MANAGEMENT

(MKT201)
Term Group Assignment
On

“Segmentation Targeting & Positioning Analysis”

(Insurance Industry, Religare Health Insurance)

POST GRADUATE DIPLOMA IN MANAGEMENT

PGDM(M); Term-II; Batch 2019-21

Under the Supervision of

Dr. Deepak Singh
Associate Professor- Marketing & Strategy

Submitted by: Group 1

1) Aastha Singh PGMA 1901

2) Abdullah Khan PGMA 1902
3) Akhil Kr.Thakur PGMA 1908
4) Ankita Verma PGMA 1911
5) Utkarsh Singhal PGMA 1942

JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)
November 14th, 2019

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 TABLE OF CONTENTS

S.No. Topic Name Page No

Industry Brief 3-6

Competitors 7
Aastha Singh

Company Description 8-11

Segmentation 12-13

Targeting Uttkarsh 13-14

Singh
Positioning 14-17

Breaking Down the 5 Stages of Health Insurance

18-19
Product Development & Management
Akhil Kumar
Thakur
Product Line Decisions 20-22

Marketing –Mix For Insurance 23-25

Companies

Product Lifecycles Stages of Religare Insurance 26-27

Abdullah
Khan
Product Lifecycles Strategies of Religare Insurance 28-29

Ankita
Place & Promotion 30-33
Verma

References 33

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Industry Brief

Introduction

The Indian Insurance industry is made up of 571insurance1companies,among which124

companiesdeal in1life1insurance1business and133 in non1life-insurance. Among1lifeinsurance
companies, Life0Insurance Corporation (LIC) stands as the only PSU. In the non0life-insurance
companies, 6 PSUs are present and a single national player, General Insurance Corporation of
India (GIC). Additionalplayers are 3rd party administrators, surveyors, brokers providing health
insurance services, agents (individual and corporate).

Growth Rate

Because of government's effortto insure general public,insurance penetration has been

pushed in our country. The gross premiums in the country scaled up to(US$ 94.48 billion) Rs
5.53 trillion in Financial Year 18, with Rs.4.58 trillion(US$ 71.1 billion) from the life insurers
&Rs 1.51 trillion(US$ 23.38 billion) from non life insurers. Net premiums as percent of GDP
reached 3.69 % in 2017 compared to 2.71% in 2001.

During FY19 (October 2018),new life-insurance business premiumjumped up to 3.66 percent

YOY to (US$ 15.46 billion) Rs 1.09 trillion.In the same period, premiums of non1life insurers
reached (US$ 13.71 billion) Rs 962.05 billion, showing a YOY growing rate of 12.40 %.

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Latest Developments

Below are a few of the latest trends in the Indian insurance market.

Government Interventions
Below are a few of the steps by the government of India to ramp up IndianInsurance sector:

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Future Aspects
Future seems bright for the life insurance industry. The fashion of the industry in which it
conducts its business will change due to certain changes in framework.
The insurance industry is expected to be US$ 280 billion by financial year 2020.The Life
insurance sector is expected to grow up by 12-15 percent annually for the upcoming 3-5 years.
Demographic factors such as increasing middle-class, increasing population& increasing
awareness about protection along with retirement-planning is supporting the growth of the
Indian life insurance industry.

The Exchange Rate Used in above data is INR 1 = US$ 0.0159 (March 31, 2019)

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Page | 6
Competitors

Thiswas the1st in the list of standalone health-insurance players in the country and has sculpted
a niche in health insurance. The company has an enormous network of 7000+ hospitals in India.
It also boasts of an in-house claim1settlement team and has a 90% rate of cashless health
insurance claims.

It is the leading insurance company and has a variety of health insurance services. Max India Ltd
and Bupa Finance PLC have a joint participation in it. This company has piled upimmense
knowledge in field of insurance industry. The company offers exclusive benefits in medi-claim
policy like coverage of room-rent devoid ofany sublimits along with life-long renewal option.

Thiswas formed after the merger ofMunich Health and Apollo Hospitals Group and is one of the
best health insurancesas it offers health policies with comprehensive coverage. It has a wide
range of offerings for customersof all income groups.The company has a record settlement
time of 15 days for 95% of claims on health insurance plans.

This is a joint participation between TTK group and Cigna. It was set up in 2014 and immediately
became one of the best health-insurance players in our country.It has a collection of a mix of
products for the individual and its family. It provides medical expenses coverage of 90 days
after hospitalization and60 days before.

This is a distinguished name in the health-insurance market in India. It provides coverage of

cost in any medical treatment. Itprovides a range of network hospitals andprovides cashless
treatment benefits in about 3200 hospitals throughoutthe country. Moreover, ittakes only
about 14 days to approve reimbursement claims.

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Company Description

Religare was founded in 1982 as Religare Securities Ltd (RSL), a stock-brokerage firm called.
Religare1Finvest, a group company was instituted in 2001. It was a private NBFC.(RHIC)Religare
Health Insurance Company Limited was initiated in 2012 after tie up ofUnion Bank and
Corporation Bank of India with Religare Health-Insurance. Today, Religare Enterprises Limited
(REL) is present across three verticals as an enlarged financial group.

Religare serves a diverse segment of market from affluent to mass retail. They serve over 1.1
million clients of about 1200+ locations, having subsidiaries in around 400 cities. Religare Health
Insurance is one of the best andthe fastest growing standalone Health Insurance companies in
India. It caters to both institutions and individuals.The business structure of Religare is as shown
below:

Below are the health insurance plans offered by Religare.

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 TIER-WISE DISTRIBUTION OF OFFICES OF STANDALONE HEALTH INSURERS
st
(as on 31 March 2018)
Insurer Tier-wiseClassification Geo-Classification
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Total Metro Urban Semi Rural Total
Urban
Aditya Birla 60 0 0 0 0 0 60 54 6 0 0 60
Apollo Munich 155 2 1 0 0 0 158 101 54 3 0 158
Cigna TTK 19 0 0 0 0 0 19 17 2 0 0 19
Max Bupa 30 0 0 0 0 0 30 30 0 0 0 30
Religare 73 1 0 0 0 0 74 52 21 1 0 74
Star Health 357 28 45 4 0 0 434 153 204 77 0 434
SAHITotal 694 31 46 4 0 0 775 407 287 81 0 775
Tier -1 Population - 1,00,000&Above.Metro - 10,00,000 and above

Tier -2 Population - 50,000to99,999Urban – 1,00,000-9,99,999

Tier -3 Population - 20,000to49,999 Semi Urban -10,000-99,999

Tier -4 Population - 10,000to19,999 Rural – Population upto 9999

COMPLIANCE OFSTAND-ALONE HEALTH INSURERS WITH RESPECT TO

RURAL SECTOR OBLIGATIONS 2017-18

Insurer Age of the Target Gross Amount of Achievement

Insurer(As at the (as a percent premium premium (percent)
end of gross for the procured in
Of F.Y.2017-18) premium F.Y.(In`lak theRuralsector
written) h) (In`lakh)
Aditya Birla 1 1 24317 351 1.44
Apollo Munich Health 10 3.50 171751 7380 4.30
Cigna TTK 4 2.50 34640 5814 16.78
Max Bupa 8 3.00 75447 3963 5.25
Religare 6 2.50 109161 9913 9.10
Star Health 12 3.50 416111 57471 13.81

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 COMPLIANCE OF STAND ALONE HEALTH INSURERS WITH RESPECT TO
SOCIAL SECTOR OBLIGATIONS 2017-18
Sl. Insurer Age of the Insurer Target Total business Number of Achieved
No. (as at the end of (as a percent Procured in the Lives covered (percent)
F.Y.2017-18) Of lives preceding Under social
covered) Financial year sector
(lives in lakh) (In lakh)
1 Aditya Birla 1 0.50 2 0.59 28.58
2 Apollo Munich 10 5 42 2.50 6.00
3 Cigna TTK 4 1.50 4 0.11 2.68
4 Max Bupa 8 4.00 24 0.98 4.07
5 Religare Health 6 3.00 20 5 25.80
6 Star Health 12 5 92 14 15.78

GROSS DIRECT PREMIUM INCOME IN INDIA: GENERAL AND HEALTH INSURERS INSURER-
WISEStandalone Health Insurers (Rs. In
Crores)

INSURER TOTAL PREMIUM MARKERT SHARE

2016-17 2017-18 2016-17 2017-2018
Aditya Birla 54.04 243.17 0.04% 0.16%
Apollo Munich 1301.93 1717.51 1.02% 1.14%
Cigna TTK 221.8 346.40 0.17% 0.23%
Max Bupa 593.93 754.47 0.46% 0.50%
Religare Health 726.07 1091.61 0.57% 0.72%
Star Health 2960.05 4161.11 2.31% 2.76%

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Page | 11
SEGMENTATION
Insurance Service marketing is called Insurance Marketing in order to achieve increased
customer orientation and profit generation. Insurance marketing concentrate on the
formulation of an ideal mix for the insurance business. It is possible to improve the core and
peripheral services by following a suitable service mix. The marketing concept allows the
insurance business to expand in the best interests of both the company and the insurance
organization.

Business segmentation of Religare health insurance is divided into different consumer segments
within the insurance company Markets. That product or service is tailored to suit the consumer
group's needs.The segmentation helps the insurance organization in dividing the market into
small segments where the customer needs are identical. The following table illustrates market
segmentation.

Market segmentation in Religare Insurance

Household sector Salaried class, Self-employed, Retired employees

Industrial sector Public sector and Private sector

Trade sector Small business and Big business

Institutional sector Universities, Colleges, Schools and Institutes

Region wise Central zone, Eastern zone, Western zone, Northern zone and Southern zone

Rural sector Gender: men / women, age: children, teenagers, youth Grey From the table above,
the insurance market is understood to be divided into segments and sub-segments. The
sections cover the residential, manufacturing, commercial, educational, local, and rural
sectors.The household sector is a segment which is subdivided into

Salaried class,Self-employed; and retired employees.

The industrial sector is subdivided into

Public sector; and Private sector.

Likewise, the other segments are distributed into sub-segments.

Significance of segmentation to the Religare insurance

1. For an insurance company, market segmentation is very necessary. In insurance business, the
prime focus is on the policyholder. Insurance marketing aims at transforming the prospects into

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policyholders. Market segmentation enables the insurance marketer to identify the level of
expectations of the policyholders.

2. Insurance organizations capitalize on the available opportunities in market. We should

continuously increase their market share. Market segmentation in the insurance business
allows the various segments where potential users are eligible to be educated, sensed and
persuaded.

3The insurance professionals can do business in all segments, such as rural and urban, men and
women, agricultural or industrial and so on. Segmentation enables the insurance business to be
extended even to the largely rural-based agricultural sector of the economy.

4. With market segmentation, insurance companies are informed of and form their offerings
according to the changing needs and requirements of the rural sector.

5. For insurance professionals, knowing and understanding the market is considered important
as the segmentation process helps them to scan the changing needs and needs of the rural
sector.

6. A segmentation analysis would assist in formulating a sound marketing strategy for insurance
professionals. The market segmentation-based product mix would be sustainable.

Both prospects would be drawn by increased use of the facilities.

7. The segmentation will make the marketing campaigns innovative for insurance professionals.
Sensitizing the prospects would be instrumental. Professionals in marketing should make
promotional pleas, communications and promotions constructive to target audience's capacity
to receive.

8. The pricing decision can also be rationalized and the weaker sections of the society would get
substantial benefits. In view of the above, it is appropriate to say that segmentation is very
important to insurance professionals. It transforms the prospects into users.

TARGETING
Target marketing is a key component of effectively growing the business in the religare health
insurance industry; even more so when working in niche markets. Program business continues
to outpace the commercial sector in terms of growth, but it is often difficult to determine what
markets to enter and hot to effectively implement a segmentation and communication
strategy. Here are a few steps to help enter into and thrive in a niche market.

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Define Your Audience: The first step to defining your audience is determining what market(s) to
enter. Focusing on a market where you have prior knowledge or expertise is always a good
place to start. For instance, if your family owns a car wash, you may find success in that
industry. Next, you must determine your appetite, and the appetite of the carrier/program
manager, within the selected market. Choosing specific risk characteristics that fit your agency’s
criteria can help you focus your marketing campaigns and spend your time, effort, and finances
on reaching the accounts that are the best fit for you.

Create Specialized Marketing Campaigns: Using cookie-cutter marketing pieces and generalized
campaigns can cost an arm and a leg without delivering the results you’re looking for. Sending
specialized messages to smaller, more refined segments that fit your appetite can increase the
effectiveness of your marketing efforts and offer more “bang for your buck.”

Collect and Analyze Data: Once your marketing campaign is complete, it is essential to compile
the results. Pulling information like responses, opens, clicks, and website traffic can help
categorize your contacts even further and allow you to adjust future marketing efforts based on
the results.

Retarget Marketing Efforts: You’ve compiled all the campaign data; now what? It’s time to
utilize the results and create follow-up efforts to address the behaviors of your contacts.
Retargeting campaigns can help you supply existing and potential customers with the
information they are looking for and guide them through the sales cycle.

Continual Adjustment: Archiving and updating customer information allows you to adjust your
marketing segments and provide the best and most relevant content for your clients and
prospects.

POSITIONING
The Religare promotions showcases common Indian middleclass which shows that they want to
cater to the security and economical needs of the Indian middle class through different
products like Care Senior (for senior citizens), Student explore. Their tagline is Values that Bind.
This touches the core Indian mindset which prioritizes family relations and belief in family
values and customs.

Due to its unique combination of financial strength, distribution network and deep foothold in
healthcare services, Religare is ideally positioned for health insurance.

Financial services- Religare securities limited, ReligareFinvest Limited, Religare Asset

Management, Religare Macquarie wealth management

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Healthcare- Super Religare laboratories, religare wellness limited, fortis healthcare.

Bank Partners- Union Bank of India and Corporation Bank have a significant distribution
network in the country.

There are several overall approaches applied by religare for developing a position based on
factors such as the market, the customer or redefining the appeal of the brand itself. To
implement these three broad approaches, various strategies have been developed.

Positioning by Competitor- In Positioning Strategy Based on Competitors, an implicit or explicit

frame of reference is one or more competitors. In some cases, reference in competitors can be
the dominant aspect of the positioning strategies of the firm, the firm either uses the same of
similar positioning strategies as used by the competitors or the advertiser make a new plan
taking the competitors‟ strategy as the base.

Positioning by Product user- Another positioning approach is to associate the product with its
users or class of users. Makes of casual clothing like jeans have introduced „designer labels‟ to
develop a fashion image. The assumption in this case is that the model or personality will affect
the image of the product by representing the characteristics and appearance of the model or
personality conveyed as a consumer of the product.

Positioning by Price and quality- The Price-Quality approach is important and largely used in
product positioning.Generally because of experience, as most of us believe it will be a quality
product if a product is expensive, whereas a cheap product is lower in value (Hooley et al.,
1998). There are brands that actively try to offer more in terms of service, functionality and
efficiency in many product categories. We pay more, partly to cover higher costs and partly to
allow consumers to assume that the service is of higher quality.

Positioning by Product Class -Positioning by product class entails associating the product with
its users or a class of users. The position sets out to promise customers that they are different
from other competitors and offer for instance better product/service and customer care
consciously differentiated from competition.

Positioning by Use or Application- Positioning strategy based on use or application is useful

when introducing new uses of the product that will automatically expand the brand’s market.
By informing markets of when or how a product can be used, a position can be created in the
minds of buyers.

Positioning by Heritage or cultural symbol- In today’s world many advertisers are using deeply
entrenched cultural symbols to differentiate their brands from that of competitors (Roger,
1994). Positioning Strategy Based on Cultural Symbol’s essential task is to identify something

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that is very meaningful to people that other competitors are not using and associate this brand
with that symbol.

Positioning by using Product Characteristics - Customer Benefits say that product

characteristics or customer benefits as a positioning strategy basically focuses upon the
characteristics of the product or customer benefits.

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Breaking Down the 5 Stages of Health Insurance Product
Development & Management
There are commonly five phases of a medical insurance company experiences when growing
new products, & afterward overseeing them once they're live: product development, product
quoting, product onboarding, product servicing, & product marketing. Every one of the five
stages in the health insurance product improvement & the management lifecycle expects
information to work, yet this information is regularly spread out over numerous frameworks —
a few back up plans even have a different framework for each phase of the lifecycle.

From an efficiency stance, these divergent & incoherent frameworks present a significant issue.
They avoid the workers answerable for each phase of the lifecycle from getting to significant
data from different stages — for instance, they keep item trailblazers from understanding
which items are being quoted, sold, & serviced. So as to enhance health insurance product
development & the management, insurers need to merge their frameworks & separate
information inside a single catalog ideally one with particular abilities for each lifecycle stage.
Before we get too into that, however, how about we investigate the five phases of health
insurance product development & the board, & why information is so significant at each stage.

1. Product Innovation

Every year, during open enlistment, health insurance companies debut new products to existing
health plan members. What members probably won't understanding is that each open
enrollment period is preceded by an innovation cycle, during which their insurers innovation
team attempts to either build new products or reconfigure existing products as per the member
feedback, new products from competitors, or potentially changes in guideline. So as to do this,
health insurers need to gather enormous amounts of information to be analyzed; yet with
different frameworks, the pool of information that an innovation team needs to draw from is
seriously restricted, making it hard to get an exact read on which products performed well,
which ones didn't, etc, & so on.

By increasing a view into different phases of the insurance product improvement & the
management lifecycle, an innovation team can construct new products & redesign existing ones
dependent on a more extensive scope of elements, for example, which products have been
overhauled, that they are so easy to keep up, regardless of whether they're applicable to
members' needs, satisfaction, & that's only the tip of the iceberg. Furthermore, by solidifying
information & afterward bringing AI in with the general mish-mash, health insurers can likewise
empower their innovation team to apply assessment investigation to approaching calls from
the members.

2. Product Quoting

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During the second phase of the health insurance product development & the management
lifecycle, sales teams work to sell products created by the development group to new or
existing members. Despite the fact that this may appear to be straightforward enough, health
insurance sales teams regularly come up short on the perceivability they need into which items
are really available — another reaction of disparate systems — & risk offering drives products
that can't be designed because of guidelines. By executing a product arrangement with an
implicit guidelines engine that can tidy up their present information domain, health insurers
can more readily ensure that their sales team consistently offers the right product to the right
customer at the opportune time.

3. Product Onboarding

When a sales agent has effectively quoted & finalized on a negotiations, it enters the product
onboarding stage. During this stage, health insurers onboarding team will give an ID card to the
part being referred to so they plan a medical checkup, file a claim, etc. Customarily a manual
procedure, statement to card can take as long as about two weeks & regularly includes a great
deal of to &fro between the onboarding group & new members.

By solidifying the whole statement to card process inside a single work process & automating it,
health insurance companies can exp& visibility across departments, improve the exactness of
health plans (they can be fined for errors), & lessen both the length of the procedure & the
number of individuals involved.

4. Product Servicing

At the point when a health plan member is harmed, they'll record a claim & bring in to discover
where they ought to go for treatment, what inclusion they have, how they can find a specialist,
etc. To deal with these cases, call center agents ordinarily need to draw up various frameworks
over multiple screens — product information on one screen, member information on another,
& cost share & product details on another — so as to get a complete picture of the member &
which products & benefits they have as of now.

As one may accept, this methodology is inefficient&all around confounding, which by & by
focuses to the requirement for data consolidation. Keeping the entirety of this data inside a
single framework empowers call center agents to rapidly get a thought of the current issue &
how to determine it, rearranging the product servicing stage of the health insurance product &
the management lifecycle & increasing member satisfaction in the process.

5. Product Marketing

So as to successfully advertise new or redesigned products, an insurer’s product marketing

team needs to approach data from the other four phases of the health insurance product
development & the management lifecycle. With divergent frameworks, advertising groups need
to physically gather & organization this information, burning through significant time

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&exertion; with merged frameworks & mechanization, they can naturally assemble this
information by simply clicking a catch. Certain arrangements will even create a synopsis of
benefits, renewal letters, & more. Health insurers have generally been under-performing with
regards to marketing, so gaining this capacity is significant win & could be a competitive
differentiator.

Product Line Decisions

Travel Insurance Health Insurance Fixed Benefit insurance

Explore Care Secure

Student Explore Super Mediclaim

Domestic Travel Enhance

Joy

Joy Tomorrow

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Initial Product Line
Down Market StretchingUp Market StretchingBoth Way Stretching

Care Freedom Care For HNI Care Global

Care Senior Care Freedom Care For HNI

Care (Heart) Care Senior Care Freedom

Care Care (Heart) Care Senior

Care Smart Select Care Care ( Heart)

Care

Care ( Smart
Select)

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Line Filling

Care Global

Care For HNI

Care Freedom

Care Senior

Care ( Heart)

Care ( Heart)

Care

Care ( With OPD)

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MARKETING –MIX FOR INSURANCE COMPANIES:
The Insurance industry bargains in selling services & consequently due weightage in the
development of marketing blend for the Insurance business is required. The market blend
incorporates the 7 P's of marketing.
1. PRODUCT:
A product implies what we produce. On the off chance that we produce product, it implies
tangible product & when we create or produce service, it implies intangible product. A product
is both what a dealer needs to sell & a purchaser needs to purchase. Hence, an Insurance
company sells services & consequently services are their product.

At the point when an individual or an association purchases an Insurance policy from the
insurance organization, he purchases an assistance, however alongside it the help & counsel of
the agents, the prestige of the insurance company & the facilities of claims & compensation. It
is common that the customers expect a sensible return for their venture & the insurance
companies need to boost their A product means what we produce. If we produce goods, it
means tangible product & when we produce or generate services, it means intangible service
product. A product is both what a seller has to sell & a buyer has to buy. Thus, an Insurance
company sells services & therefore services are their product.

When a person or an organization buys an Insurance policy from the insurance company, he
not only buys a policy, but along with it the assistance & advice of the agent, the prestige of the
insurance company & the facilities of claims & compensation.
It is natural that the users expect a reasonable return for their investment & the insurance
companies want to maximize their profitability. Hence, while deciding the product portfolio or
the product-mix, the services or the schemes should be motivational.

2. PRICING:
In the insurance business the pricing decisions are concerned about:
i) The premium charged against the policies,
ii) Commission charged for underwriting & consultancy activities.

The methods can be high or low estimating keeping in view the level or standard of customers
or the policy holders.

The pricing in insurance is as premium rates. The three principal parts used for choosing the
first rate rates under an actual existence inclusion plan are mortality, cost. The unrivaled rates
are reevaluated if there are any basic changes in any of these factors.

• Mortality (deaths in a specific area):

When choosing the evaluating methodology, the ordinary pace of mortality is one of the
principal contemplation's.

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• Expenses:
The expense of handling, commission to agents, reinsurance organizations just as enlistment
are altogether fused into the expense of instalments & premium total & structures are the
essential piece of the pricing strategy.

3. PLACE:
This component of the marketing mix is identified with two significant aspects –
i) Managing the insurance personnel, &
ii) Locating a branch.
The administration of operators & insurance work force is discovered huge with the perspective
of keeping up the standards for offering the administrations. This is additionally to process the
service to the end client so that a gap between the services guaranteed & benefits – offered is
spanned over. In a majority of the service generating organizations, such a gap is discovered
existent which has been instrumental in exacerbating the image issue.

The change of potential policyholders to the real policyholders is a troublesome err& that relies
on the expert greatness of the personnel. The agents & the rural career agents going about as a
connection need polished skill. The forefront staff & the branch administrators additionally are
found not appointing due weightage to the degeneration procedure. The insurance staff if not
oversaw appropriately would endeavor all endeavors insensitive. Regardless of whether the
policy makers make arrangement for the quality upgradation, the guaranteed services barely
reach to the end customers.

Another significant measurement to the Place Mix is identified with the area of the insurance
branches. While finding branches, the branch manager needs to think about various elements,
for example, smooth accessibility, availability of infrastructural offices & the management of
branch workplaces & premises. What's more it is additionally huge to give wellbeing measures
& furthermore factors like office furnishing, municipal civilities & facilities, stopping offices &
inside office beautification ought to be given legitimate consideration.

Therefore the spot the management of insurance branch offices needs another vision,
particular methodology & an inventive style. This is basic to make the work place helpful,
alluring & proactive for the age of effectiveness among representatives. The branch directors
need professional excellence to make on place designs productive.

4. PROMOTION:
The insurance services rely upon effective promotional measures. In a nation like India, the
pace of absence of education is high & the rural economy has dominance in the national
economy. It is fundamental to have both personal & impersonal promotion strategies.Due
attention should be given in selecting the promotional tools for agents & as well as for the

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branch managers & front line staff. They additionally must be given appropriate training so as
to create impulse buying.
Advertising & Publicity, association of gatherings & workshops, motivator to policyholders are
indifferent correspondence. would be powerful in making the drive purchasing & the country
possibilities would be effectively changed into genuine policyholders.

5. PEOPLE:
Understanding the client better permits to configure appropriate products. Being a service
industry which includes a significant level of individual’s connection, it is essential to utilize this
asset productively so as to fulfill customers. Training, development & strong relationships with
intermediaries are the key regions to be held getting looked at. Training the employees,
utilization of IT for productivity, both at the staff & agent level, is one of the significant areas to
investigate.

6. PROCESS:
The procedure ought to be client well disposed in insurance industry. The speed & exactness of
payment is critical. The processing method ought to be simple & convenient to the customers.
Installment plans ought to be streamlined to take into account the regularly developing
requests of the customers. IT & Data Warehousing will help in the procedure stream.
IT will help in adjusting huge no. of customers productively & cut down overheads. Innovation
can either supplement or enhance the channels of dispersion cost viably. It can likewise
improve client assistance levels. The utilization of data warehousing management & mining will
discover the profitability & capability of different customer’s product segments.

7. PHYSICAL DISTRIBUTION:
Distribution is a key determinant of accomplishment for all insurance companies. Today, the
nationalized insurers have a large reach & presence in India. Building a distribution network is
very expensive & time consuming. If the insurers are willing to take advantage of India’s large
population & reach a profitable mass of customers, then new distribution avenues & alliances
will be necessary.
At first insurance was viewed as a mind boggling product with a high exhortation & service
component. Buyers incline toward an up close & personal connection & they place a high
premium on brand & names & unwavering quality. As the awareness increases, the product
gets easier & they become off-the-shelf commodity products. Today, different mediators, not
really insurance organizations, are selling insurance. For instance, in India, Bank like Union Bank
of India sells insurance products.
The insurance services industries have successfully used remote distribution channels such as
telephone or internet so as to reach more customers, avoid intermediaries, bring down
overheads & increase profitability.

Technology will not replace a distribution network though it will offer advantages like better
customer service. Finance companies & banks can emerge as an attractive distribution channel
for insurance in India.

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In India also, banks hope to maximize expensive existing networks by selling a range of
products. It is anticipated that rather than formal ownership arrangements, a loose network of
alliance between insurers & banks will emerge, popularly known as bancassurance.

PRODUCT LIFE CYCLE STAGES OF RELIGARE INSURANCE

Product Life Cycle (PLC) refers to the different stages that the product has to go through time
these stages are Introduction, Growth, Maturity, and Decline.

Introduction stage: This is the beginning stage of a product when it is introduced in the market.
The size of the market in this stage of the product is small and the cost to launch the product is
high.

Growth stage: This stage comes when demand of the product tends to increase along with its
market size, sales and profits. The producer invests more money in this stage for promotional
strategies in order to increase the market share of the product.

Maturity stage: During this stage the product gets well established in the market and reaches
to its peak in the market, the sales and profits are at maximum in this stage.

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Decline stage: The market starts to shrink in this stage due to the occurrence of saturation in
the market. The shrinkage could also be because of the customer’s preference shifted to
different types of product.

For insurance business, companies require usage of individual data of their target market
customers to generate policies according to the need of their clients. In order to perform these
tasks innovation is required to create services for the customers to fill gaps in the market place.
Such innovations must be followed in proper vigilance throughout the product life cycle to
ensure that needs are getting fulfilled.

Product conception

Like any other company, Religare also comes up with a new idea and its PLC stages and
develops a concept for it. It determines the target market using the data stored to generate the
product and how the product can fulfill the targeted customer’s need. Because of segmentation
of the insurance market company can formulate its policy within specific range. For ex. The
policy formulated for higher education with the ability to cover the cost of education can only
be targeted to the parents of specific age group when they start worrying about their child
education.

Managing Growth

An effective marketing strategy is formulated by the company to increase the sales of their
policies. Religare an elite insurance company takes every measure to ensure the growth in sales
as well as market size. By analyzing the data from the market base the Religare can formulate
the most efficient strategy to promote its policies to the customers. If the company builds up
an affordable insurance policy for the students of college then it might be targeting the major
campuses. In this stage the main strategy for religare is to create the awareness of their policies
efficiently to their target market and persuade more and more customers by educating them
about the need and importance of the insurance policies in their lives.

Reaching maturity

Insurance industry is very competitive because of the limited segment and immense number of
competition. In this industry it is very difficult for the company to keep its product sustainable
in the market because, as soon as competitors get to know about the product they launch the
similar product to reduce the sales and market size of the product. After this the growth of the
product starts to decline because would now focus on the customers to switch their providers
rather than providing them the innovative concept.

Decline Phase

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As the market changes and the suppliers increment, the fame of an arrangement will decay. As
the underlying gathering of clients ages out of the objective market, insurance agencies may
find that the following gathering has various needs and desires that require another item to
serve them. This fills in as a sign for an organization to concentrate on changing the current
items to address these issues or growing new contributions to more readily serve the market.

Client Management

Both life and annuity needs change after some time, and a protection organization must be
aware of staying over the varying needs of its clients to guarantee that their business
relationship doesn't end when the customers' requirement for that specific strategy does. A
youthful couple with two little youngsters, for instance, has diverse extra security needs than a
couple contemplating retirement whose kids are developed. The previous likely will be
progressively worried about the reasonableness and the measure of inclusion, ensuring that the
family is secured if something happens to either part of the couple. The last may rather be
centered around charge favorable circumstances, simplicity of passing the cash down to
beneficiaries or getting to a portion of the assets to help keep up their way of life.

PRODUCT LIFE CYCLE STRATEGIES OF RELIGARE INSURANCE

Religare PLC strategy is like any other company which is customer oriented i.e. it derives the
policies which is focused more on selling and maintaining the growth of its policies, and the
next thing they do is to gain more customer loyalty which requires lots of effort and time to
create and maintain the brand image .

STRATEGIES OF RELIGARE HEALTH INSURANCE

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Market Penetration Strategy
By providing lower prices premium policies and additional benefits to the customers Religare
ensures the persuasion of the customers towards their service. It also lowers down the prices of
their policies to attract more and more customers. They follow effective promotional strategies
to penetrate into the market and increase the awareness.

Product/Service development strategy

Before developing new product and services few things should be considered i.e. customer
needs, brand extensions and technology. Religare can introduce new services in the market
with proper understanding of investors needs, considering their own brand name and use of
technologies like online training, mobile training, personal interaction with the clients, proper
guidance in the services etc.

Market Development Strategy

In this type of strategy Religare try to develop a business strategy where it attempts to attracts
new sets of buyers and potential customers. These customers may already be served by
competitors or may not be served by any of the sellers. This strategy helps the Religare to
expand its segment and generate more and more buyers.
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 Place and Promotion:
Marketing Channel & Delivering Customer Value:

Building of relationships with customers, suppliers and resellers is required to make the
produced product or service available to the buyers. In the marketing channel there are
wholesalers, retailers, distributors which help in building the bridge between the consumers
and the firm.

Producer Consumer
Marketing channel

Religare Health Insurance is a service company and provides insurance to the people through
their brokers or insurance salesman or through insurance agent. They also distribute their
service by collaborating with various banks and corporate offices so that the offices provide
Religare insurance service to their employees.

Producer

Broker/Agent

Office

Consumer

Channel Design Decision: In this the company decides the channel it wants to opt so that it can
provide the services to the consumers. Being in Insurance Industry. Religare goes for brokers,

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office sales, agents, hospitals from where they can distribute their various health insurance
plans. They analyze the customer needs. And a customer opts for insurance plans when he
feels that he should have one. He can go to various agents who deal in insurance business.
Hospital is a good distribution place because when a person goes for regular check up he
consults the agents or insurance officers over there.

Consumers should be communicated about the product as that they feel the urge to buy it. This
is done through PROMOTION. Promotion is marketing communication mix which includes
ADVERTISING, PUBLIC RELATIONS, SALES PROMOTION, DIRECT MARKETING. All these forms
include tools so as to make promotions of a product a success and most consumers buy the
product as per their needs and demand.

Religare provides various plans to their consumers as per their needs and wants, they keep on
promoting their product according to the market needs. Like in todays time Cancer is a disease
which no one wants to suffer from and those who are suffering knows the pain as well as the
amount of money spent on its treatment. So various health plans are promoted accordingly
example Religare provides Cancer Care plan at Rs. 258 p/m., so accordingly Religare promotes it
so that more and more people know about this. Main Promotions are done at hospitals, online,
templates, advertising, hoardings etc.

Promotion should be clear, and should be able to tell the message which the company wants to
convey.

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These are online promotion methods in which Religare has conveyed all the details and the
message is clearly conveyed to the public.

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These are the pictures in which raised awareness and promoted its products through e-channel.

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These are few templates which shows how promotion is done. One template shows the
meaning- AB HEALTH HAMESHA and the other shows various promotional offers which are
given by Religare to attract more customers. In this way Religare does its Place and Promotion.

Reference:

Mr. Anand Pandey – Religare Health Insurance Development Officer (Sales)

https://www.gibl.in/blog/health-insurance/top-10-health-insurance-companies-in-2019

https://www.ibef.org/download/Insurance-September-2019.pdf

https://www.religarehealthinsurance.com/

https://www.religare.com/index.aspx

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