Marketing

1. Marketing PLI RPLI

2. Low penetration of PLI and RPLI in respective customer segments demands a focussed marketing strategy Penetration in PLI (number of policies as % of total PSU employees) Target market size for PLI Total Number of Employees: 2.86 crore Source: India Stat, India Post MIS reports on customer category wise data Target market size and Penetration in RPLI (number of policies as % of rural population) Total Rural Population: ~80 crores Source: Provisional Census 2011, India Post MIS reports on RPLI state wise data

3. A structured framework would assist PLI and RPLI in developing a focussed marketing strategy Marketing Framework 1 Marketing Organization Govern Reach out to prospective and current customers Communicate the message to customers Monitor the performance to make suitable changes Conversion into sales 2 3 4 5 Marketing initiative Marketing communication Sales integration Feedback and monitoring Provide Support 6 Tools and Technologies 7 Brand management

4. Following key strategic initiatives have been identified for PLI and RPLI based on ‘As-is’ assessment 1 Establish a dedicated marketing team to plan, implement and administer marketing initiatives 2 Develop tailored marketing initiatives to reach out to prospective PLI and RPLI customers 3 Develop a Tailored marketing strategy and initiatives to increase penetration of PLI in Army Postal Services Develop orchestrated communication plan to create awareness about life insurance, publicize PLI and RPLI offerings and stimulate sales 4 5 Develop tailored marketing initiatives and communication plan for targeting migrant population 6 Align sales channels with PLI and RPLI customer segments for pre-sales and sales conversion 7 Integrate marketing activities with call center for lead generation and lead servicing Develop effective mechanism to monitor marketing initiatives and gather feedback from marketing staff and channel staff to modify marketing initiatives 8 9 Leverage customer relationship management (CRM) system to develop targeted marketing initiatives Strengthen PLI and RPLI brands by establishing a brand identity, communicating brand promise and ensuring brand delivery 10

5. Summary of location based marketing initiatives 1 Marketing in townships • Central and state PSUs have setup townships with necessary facilities such as housing, schools, shopping complex, banks, hospital, playgrounds, club houses etc. • Residents of such large townships spend most of their time within township and have limited interaction with outside areas • PLI can carry out focused marketing campaigns in such townships to effectively reach out to large number of government employees 2 Marketing at training centers • Training centers of PSUs, nationalized banks, police, railway, post and armed forces provide induction training to new employees as well as refresher courses to existing employees on a regular basis • PLI can conduct awareness and publicity campaigns at these institutes especially to target new joining employees 3 Marketing at office clusters • Metro and urban areas have central business districts with clusters of Government and PSU offices. Examples include Churchgate in Mumbai, Dalhousie in Kolkata, Chanakyapuri in Delhi etc. • PLI should conduct marketing activities in such areas to improve brand awareness and visibility to government employees working in such office clusters

6. Usage of various marketing mediums in location based marketing initiatives                • Outdoor marketing includes marketing using posters, banners, hoardings and kiosks • Print marketing includes marketing using leaflets, pamphlets, brochures and newspapers • Internet marketing includes marketing using emails, web banners, social media marketing and marketing on internal websites

7. 1. Marketing in townships Central PSUs have set-up large scale townships in various parts of India • Central PSUs have set-up large scale townships across India for its employees. The townships usually are established by PSU organization with plant operations in far flung areas • These townships are build near a plant and are self-sufficient with facilities such as residential units, hospitals, recreation areas, shops, schools, banks and post office. Some of them also have higher education institutes and cinema halls • Some of the biggest townships in India Include Bhilai, Bokaro, Rourkela, Durgapur, Bailadila and Neyveli. A few of these township are built jointly by multiple PSUs Key observations Some of the largest townships in India Bokaro Durgapur Rourkela Bhilai • Township residents are highly influenced by peer level marketing • Currently, insurance policies are being sold by individual agents of other insurance companies residing in these townships • Currently, PLI undertakes limited marketing activities in these townships Bachili-Bailadila Neyveli Source: Company websites, secondary research

8. 1. Marketing in townships Residents of large PSU townships spend most of the time in the township Office & Plant Area Visit daily/weekly for social gatherings and fitness activities • Spend 50 hrs. per week at office • Access intranet and emails • Interact with other employees at canteens School Club House Elevator Computer Visit everyday/alternate day to buy everyday goods Playground Canteen Shopping Complex Spend 5-10 minutes per day for wait time and security check Visit once in a week to withdrawals, deposits and to keep track of accounts Plant Entrance Bank 25-30 hours a week spent with family and neighbors Visit once in 1-2 weeks for postal services and postal savings bank Visit once in 2-3 months for medical checkup or illness Post Office Residential Hospital • PSU employees residing in townships spend most of their time within the township. Typically, the township community members have a high degree of interaction among themselves and depend each other for advise on financial products • The most common places visited by employees and their families are shown above. Post office is just one of the visited places by the customer to avail a variety of postal services • Currently post office works in isolation and undertakes limited marketing initiatives in the township areas for PLI products Note: based on interaction with residents of large PSU townships

9. 1. Marketing in townships Post office can undertake a 360 degree marketing approach in PSU townships to ensure extensive coverage Organize painting or essay competitions for children Office & Plant Area keep posters and hoardings Internet based marketing Posters inside elevators and on canteen tables School Elevator Playground Computer PLI awareness posters Canteen Club House Banners at entrance gates Post Office Plant Entrance Poster and banner marketing and kiosk marketing at shopping complexes Shopping Complex Health and wellness awareness posters at hospital Hospital Kiosks marketing at banks Bank Residential Newspaper/pamphlet based marketing, TV marketing for residential complexes • A 360 degree marketing approach would involve engaging in marketing initiatives to target township residents at frequently visited locations using variety of marketing mediums such as print marketing, TV marketing, poster marketing, kiosk marketing and email marketing • A similar approach can be undertaken for smaller colonies (e.g. colonies in metro areas which have only residential units) to market PLI products

10. 1. Marketing in townships Description of select marketing initiatives in townships

11. 2. Marketing at training centers 1 PSUs have set up training institutes to provide training to its new as well as existing employees 3 4 5 2 Training at Indian Railway Details of training centers • All major PSU organizations have training centers scattered all over India to provide induction to new recruits as well as refresher courses to existing employees • Details of training centers if Indian Railways is provided below: Marketing approach 6 T 7 • Indian Railways carries out massive training exercises for its ~14 Lakh employees • It has around 291 training centers located across India which provide specialized training to its employees • It has a total capacity to provide refresher training to nearly 4.5 Lakh employees every year • Every year, ~1 Lakh employees (~7% of the total workforce) are provided with refresher training in addition to induction to new recruits • The training provided consists of classroom training, technical as well as railway working rules, on-job training and independent working training in come cases • Most of the training programs are resident training programs that last for 3 days – 7 days. Training centers are well equipped with all kind of facilities such as classrooms, technical labs, computer labs, library, hostels, playgrounds, gym / yoga rooms etc. • Typically, these training centers are categorized as per the cadres of the employees to whom training is provided (e.g. Group A employees training center, Supervisor training center etc.) • Employees assembled in large numbers provides opportunity to market PLI products to a focussed group. Further, marketing initiatives at each of the training center can be tailored as per the profile of the employees (Group A, Group B, Group C, Group D) Source: Secondary Research

12. 2. Marketing at training centers PLI can target training centers with various marketing initiatives to educate PSU employees about PLI offerings Distribute PLI pamphlets • Organize talks to create life insurance awareness and market PLI products • Showcase PLI films between the lectures Distribute PLI pamphlets in hostel rooms Central office Hostels Classroom Put banners at playgrounds Distribute pamphlets and leaflets Grounds Mess Post Office Distribute health and wellness awareness leaflets Gym and Yoga Center Computer Lab Distribute pamphlets and leaflets Library Distribute pamphlets Put PLI brochures with elaborate information • Marketing mediums can be tailored depending upon location and level of interaction. One of the best ways to market PLI products would be to showcase small 4-5 minute films between the classes or conduct a short guest lecture • Marketing at training centers could be an effective way to educate government sector employees about PLI offerings; Sales may not take place at training centers considering most of the employees would be residing at locations elsewhere in the country

13. 3. Marketing at office clusters 1 Government offices in the metro/urban locations is an attractive catchment area for PLI to market its products 3 4 5 2 Sample case study: South Mumbai central business district 6 Government offices T 7 State PWD Bus Stops Reserve Bank of India Major roads High Court • Typically urban areas have one or more central business districts with cluster of government offices • PLI can undertake several marketing initiatives such as • Put posters and banners on bus stops, railway stations and major roads • Put customized posters (e.g. ‘Insurance for employees of Reserve Bank of India’) within organization premises • Distribute pamphlets and brochures within the organizations • Put stalls/kiosks in front of the entrance or within the premises of the offices • Deploy marketing managers to go and meet senior officials of respective organizations for group sales • Organize events such as ‘marathon competition for government employees’ Mumbai University New Admin building Inst. Of sciences New India Insurance Maharashtra Police Mukhyalaya

14. RPLI rural customers specific marketing initiatives and communication strategy

15. Developed tailored marketing initiatives to reach out to prospective RPLI customers 2

16. While RPLI has seen significant growth in the past few years, it covers <3% of India’s rural population Business growth in RPLI CAGR 21% Channel wise contribution to number of policies sold in FY 12 ( in %) RPLI penetration in different states * Others includes Anganwadi workers, mail guard, ex life advisors, direct agents, ex servicemen, retired teachers, ASPO’S, IM’S

17. Summary of marketing initiatives 1 Marketing in villages • In rural areas, people spend their time at locations such as tea shop, primary health centers, gram panchayat, village choupals and post offices • RPLI should tailor its marketing initiatives (e.g. pamphlet distribution at tea shops, awareness campaign at village choupals) to target people residing in rural areas 2 Marketing at yatras and Melas • Yatras and Melas in rural India provide a great opportunity for marketing RPLI as people congregate in large numbers from nearby as well as far flung villages • Large scale marketing campaigns at these Yatras and Melas would provide with better visibility and increase brand awareness of RPLI among rural population 3 Marketing through industry initiatives • Corporates (ITC e-choupal, Tata Group’ Kisaan Kendras, DCM Sriram’s Hariyali Bazaar) have established a strong presence in villages by providing products and services such as agricultural advisory, retail stores, financial services and public welfare • Leveraging these institutions would allow RPLI to leverage trust and infrastructure built by these institutions in rural areas 4 Marketing through Co-operative societies • Local level co-operative societies fulfill the financial services requirements of farmers. Primary agricultural credit societies are important channel in providing short term and medium term credit to farmers. Apart from PACS, co-operative societies have been formed to fulfill farmer needs such as buying fertilizers, selling agri/dairy outputs etc. • RPLI can target rural populace in particular farmer community by marketing through co-operative societies 5 • Government initiatives such as NeGP and MGNREGA have been launched to provide social infrastructure and employment in rural areas • These are typically managed and monitored by the educated people in the village. RPLI should target these initiatives to market RPLI products Marketing through government development programs 6 Marketing through NGOs, SHGs and MFIs • NGOs, SHGs and MFIs have strong connection with communities staying in rural areas. This can be used as nodal agencies to issue group policies to community members

18. 1. Marketing in villages RPLI would be required to tailor marketing initiatives suited to rural ecosystem…. Long free time while waiting for bus Rural houses • Mobile has reached every third rural household* • Rural people listen to radio in their leisure time • Television are also present in household with higher income Bus Stand Respected people of the village visit here every day Gram Panchayat House Television Visit during illness with average visit time of 1 hour Primary Healthcare Center School Radio Mobile People visit weekly bazaars to buy grocery Visit regularly for savings, postal, remittance needs Bazaar Branch Office Temple Daily visit tea shop to socialize with other villagers Tea Shop • Rural areas are characterized by dispersed population, low penetration of technology and low awareness about financial services in particular insurance • Currently, branch post office undertakes limited marketing activities for RPLI. Some of the existing marketing initiatives by RPLI include conducting rural melas, putting wall paintings and putting posters near post office *Source: TRAI press release. Data as on 31st January 2013

19. 1. Marketing in villages … to effectively market itself to rural populace Wall painting for RPLI Rural houses Posters and banners at bus stands SMS based marketing in regional languages Wall Paint House Television Bus Stand Publicize RPLI products over local radio stations PLI awareness posters and camps Gram Panchayat Mobile RPLI advertisements on TV Health and wellness awareness posters Branch Office PHC Radio Painting and essay competitions in rural government schools Pamphlets at tea shops to explaining RPLI products School Tea Shop Temple Bazaar Kiosks at weekly bazaar for insurance literacy • Marketing at locations such as local taparis (tea shops), weekly bazaars, bus stands, primary healthcare centers would be extremely effective since marketing at such places encourages discussion among villagers • Key points to make rural marketing effective is marketing in local language and use of local influencers (doctors, teachers, credit society members etc.) to create awareness among villagers

20. 2. Marketing in yatras and melas RPLI should leverage melas and yatras to create awareness among rural populace Central mela location Shopping areas Aarti book Puja thali Puja Ghat Shops • Kiosks with loud speakers at shopping premises • RPLI advertisements of puja thalis for sale • RPLI advertisements on aarti books for sale • Banners and hoardings near ghats/places of congregation Travel Others Head Office Entertainment Medical camp Bus Stand Railway Boats • Health awareness posters at medical camp • Street plays to increase awareness about insurance and RPLI • Kiosks / pamphlet distribution at railway stations / bus stand • Posters on boats and at bust stands/railway stations Lodging and Boarding Food Counters Tents • Pamphlet and leaflet distribution in strength • Thalis with imprint of RPLI • Kumbh melas (Ardha Kumbh, Purna Kumbh, Maha Kumbh and Simhasta melas) • Kumbh melas (one of the four mentioned above) take place once in 2-3 years; Locations include Prayag, Nashik, Ujjain and Haridwar • Visitors range from 80 lakh-3 crores • Next melas are planned in 2015 (Nashik) and 2016 (Ujjain) • Some of the other prominent annual yatras include: • Ratha yatra in Orissa (5-6 lakh visitors) • Amarnath yatra in Kashmir in July-August (6-8 lakh visitors) • Pandharpur yatra in Maharashtra in June (5-7 lakh visitors)

21. 3. Marketing through industry initiatives Leveraging industry initiatives – marketing strategy Stimulate sales • For smaller outlets ( such as e-choupals), RPLI can pay referral commission to Sanchalaks • For bigger stores such as HKB and Tata Kisaan Sanasar, RPLI can stations their SDIPs/Direct Agents on specific days for sales • RPLI can also have broker tie-ups with some of these leading stores Publicize products • BPM can put RPLI posters at the outlets to increase brand visibility • SDIP can station an agent at large outlets (HKB outlets) and BPM at smaller outlets (e-choupals) at regular intervals (once a week/once a fortnight) to answer queries of the people interested in buying RPLI policies • SDIP/BPM should educate the local outlet staff (Sanchalaks/advisors) about RPLI benefits to generate word-of-mouth publicity of RPLI Create awareness • SDIP/BPM can conduct talks/workshops at outlets to educate visitors about the need for insurance • Show short films to create insurance awareness • ICICI Prudential has tie-up with Hariyali Insurance Broking Limited for distribution of their policies through HKB outlets: • ICICI Prudential has leveraged strong brand and loyal customer bases of HKB in the regions such as Punjab, Uttar Pradesh, Haryana, Rajasthan, Uttaranchal, Andhra Pradesh and Tamilnadu

22. 4. Marketing through co-operative societies RPLI can use rural presence and influence of co-operative societies • Rural regions have very low penetration of banks and other major financial institutions. This has lead to creation of many local level co-operative societies which fulfill the financial services requirements of farmers. Primary agricultural credit societies are important channel in providing short term and medium term credit to farmers • Apart from financing institutions, co-operative societies have been formed to fulfill farmer needs such as buying fertilizers, selling agri/dairy outputs. These include IFFCO, Sugar co-operatives and dairy co-operatives

23. 4. Marketing through co-operative societies 1 Leveraging co-operatives – marketing strategy 3 4 5 2 Stimulate sales 6 T 7 • Recruit agents from co-operative societies to sell insurance to members of the co-operatives as well as others Publicize products • SDIP should educate governing committee of co-operative societies about benefits of RPLI to encourage word of mouth publicity • Display RPLI posters in offices of the co-operative societies • Put advertisements of RPLI on products provided by these institutions such as fertilizer packets / sacs Create awareness • SDIP can conduct talks/workshops at outlets to educate visitors about the need for insurance • Show short films to create insurance awareness • IRDA is in the process of finalization of the guidelines on Mircoinsurance agencies in rural areas • Currently, only insurance company agents, commercial banks, microfinance institutions, non-governmental organizations and self-help groups are allowed to sell micro-insurance policies • As per the latest guidelines, Regional Rural Banks, District Co-operative Banks and Primary Agricultural Credit Societies (PACS) are likely to be allowed to become micro insurance agents • Also, individuals which include shopkeepers, medical store owners, petrol pump owners and public telephone operators shall be allowed are likely to be allowed to become micro insurance agents

24. 5. Marketing through government development programs RPLI can leverage national initiative such as MGNREGA to market RPLI to non-farm labourers in rural areas Overview Coverage Value Proposition • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was introduced by the Government to provide employment opportunities to the rural population • All house holds which seeks employment approach the local Gram Rozgar Sahayak and obtain guaranteed employment within 15 days of registering • It is organized in the following manner with the apex governing body overseeing its operations at that level: • Village Level – Work site supervisors • Village Level – Gram Rozgar Sahayak (GRS) • Block Level (group of villages) – Programme Officer • District Level – District Programme Coordinator • State Level – State employment guarantee council • National Level – Central employment guarantee council • Key responsibilities of GRS include: • Overseeing the registration for MGNREGA in village • Work assignment and collating attendance records • Updation of job cards • Key responsibilities of work-site supervisors: • Supervise work sites and capture attendance • Help illiterate to calculate wages earned • Create awareness about rights and entitlement under MGNREGA • Provide first aid services to workers • GRS and work-site supervisors are key influencers for MGNREGA workers • The payout of wages is made by MGNREGA into the accounts of these employees which are usually the no-frills accounts opened with any bank or post office • RPLI will have ready customer base with accounts existing with Postal Savings Bank • These households are provided with Job cards which can be used for KYC compliance to issue policies to these customers CAGR of Households = 27%

25. 5. Marketing through government development programs Leveraging MGNREGA – Marketing strategy Stimulate Sales • For policies sold through GRS, worksite supervisors and Block officers, RPLI can pay referral commission • RPLI can tie-up with MGNREGA to provide bundled offering to laborers: • Provide savings accounts with term insurance cover • Deduct premium at the time of disbursement from government Publicize Products • SDIP should explain Block officers, GRS, worksite supervisors regarding the benefits of RPLI over other life insurers • GRS and worksite supervisors should convince the laborers to be part of the group insurance policy Create Awareness • BPM with assistance from SDIP should organize workshops to educate the workers about the need for protection for their family • SDIP/BPM can explain the health hazards associated with their work environment and living conditions

26. 1 Key customer segmentation for RPLI …. 3 4 5 2 6 T 7 ~2.7% of employed population ~15% of employed population ~35% of employed population ~30% of employed population ~17% of employed population Source: ICSSR report, Deloitte research

27. 1 RPLI can segment migrants…. 3 4 5 2 • Total migrant population in India stands at 10 crore of which most of them are cyclic and temporary migrants • Main objective of their migration is to make earn a living before generating savings. These people can be targeted with short duration products 6 T 7 Permanent migrants cannot be sold RPLI policies since RPLI policies can be sold only to permanent residents of villages. India Post may consider relaxing RPLI rules to allow insurance coverage to permanent migrant segment.

28. 1 …and target them with tailored marketing strategy 3 4 5 2 Create Awareness Publicize Products Stimulate Sales 6 T 7 • SDIPs in urban areas can conduct awareness campaigns at construction sites to educate migrants about health hazards, accidental hazards and vulnerability in case of death of earning member • SDIP can educate labour contractors about availability and benefits of RPLI • Posters can be put near worksites • SDIP can give small talks during lunch time or after work hours • Contractors can be paid referral commission to drive sales • SDIPs/ Direct Agents shall coordinate with BOs/SOs to obtain residence proofs from villages Temporary migrants • SDIP can educate labour contractors about availability and benefits of RPLI • Posters can be put near worksites to publicize RPLI products • SDIP can give small talks during lunch time or after work hours • Short term group products are ideal for temporary migrants • SDIP/BPM should sell policies in native location • Contractors can be paid referral commission to drive sales • SDIPs in rural areas can conduct awareness campaigns at farming sites to educate migrants about health hazards due to changing living conditions and vulnerability in case of death of earning member Cyclical migrants Note: In case of permanent migrants, permanent address proof should be of a rural area for the migrant to be eligible for RPLI

29. 1 Product positioning for migrant customer segments needs to be communicated 3 4 5 2 6 T 7       Indicates most suitable. Other products can also be sold 