Marketing Mix of LIC and 7Ps (Updated 2025)

The Marketing mix of LIC analyses the 7Ps of LIC, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of LIC. Life Insurance Corporation of India, known as LIC, is an Indian company that deals in insurance and investments. This largest insurance company is an Indian state-owned company headquartered in Mumbai, India. Life Insurance Corporation was established in 1956 after the Indian parliament passed an act to nationalize the insurance industry from private insurance. Nearly two hundred and forty-five insurance companies merged to create this company, LIC. From that time until 2000, the insurance sector was under the monopoly of LIC. The main objective of the nationalization of LIC- Life Insurance was to remove the risk of loss and to provide the policyholder with protection in terms of money.

About Life Insurance Corporation

• Type: Public sector life insurance company
• Industry: Insurance
• Founded: 1 September 1956
• Founder: Government of India
• Headquarters: Mumbai, India
• Area served: India
• Current CEO: M R Kumar
• Number of employees: Over 200,000
• Major products: Life insurance products, including term insurance, endowment plans, whole life insurance, and pension plans

LIC Product Strategy

LIC- Life Insurance has designed several products according to the requirements of ordinary people. Insurance is mainly taken out to provide for the family members in case of death by natural causes or accidents to the breadwinner of the family. LIC Housing Finance offers reasonable and affordable cost options tailored to the economic and financial condition, catering to both corporate agencies’ and retail services’ related needs. As a market leader, LIC company ensures adequate financial cover for senior citizens through its extensive network of numerous corporate offices. Leveraging LIC’s robust marketing mix, the Insurance Corporation of India provides primary channel members with comprehensive solutions.

The Life Insurance Corporation of India (LIC offers a range of products to cater to its customers’ different insurance, financial security investment, and savings needs.

The product mix of LIC in 2024 is as follows (Source).

1. Life Insurance Plans: Term Insurance Plans: These are pure insurance plans that provide a death benefit. Examples include LIC’s Tech-Term and Jeevan Amar. Endowment Plans: These plans offer a combination of insurance and savings. Examples are LIC’s New Endowment Plan and Jeevan Lakshya. Whole Life Insurance: These policies cover the policyholder’s entire life. An example is LIC’s Jeevan Umang.
2. Health Insurance: Health Plans: LIC offers health insurance plans like Jeevan Arogya, which cover medical expenses.
3. Pension Plans: Immediate Annuity Plans: These plans provide a pension immediately after investing a lump sum amount. An example is the Jeevan Shanti plan. Deferred Annuity Plans: These plans allow you to accumulate a corpus and receive a pension at a future date.
4. Unit-Linked Insurance Plans (ULIPs market-linked plans that offer the dual benefit of investment and insurance. LIC’s New Endowment Plus is an example.
5. Child Plans: Plans like LIC’s New Children’s Money Back Plan are designed to meet children’s educational and other needs.
6. Money-Back Plans: These plans provide periodic payments over the policy term. An example is LIC’s Bima Bachat.
7. Special Plans: LIC offers unique plans like micro-insurance products for lower-income segments.
8. Group Insurance: These are plans meant for groups, such as employer-employee groups, providing insurance at a low cost.
9. Riders: Additional coverages like accidental death and rider safety can be added to the basic policy for enhanced protection.

LIC Pricing Strategy

A suitable pricing policy is a significant factor in the successful running of an insurance or investment company, as it is the pricing policy that affects a company’s sales volume. For any LIC- Life Insurance policy, the policyholder has to pay a premium that is paid annually, half-yearly, quarterly, or, in some cases, monthly. The management decides to fix the premium of every policy relating to a particular period.

LIC’s Pricing Strategy is as follows:

1. Value-Based Pricing: LIC employs a value-based pricing strategy, where the premiums are set based on the perceived value of the policy to the customer. This approach considers factors like the sum assured, the policyholder’s age, health status, and the policy term, ensuring that customers feel they are getting value proportional to their pay.
2. Competitive Pricing: LIC prices its products competitively by understanding the competitive landscape of the insurance sector. It closely monitors the pricing strategies of other players in the insurance market to ensure its offerings are attractive and in line with industry standards.
3. Dynamic Pricing Models: LIC utilizes dynamic pricing models for different products. For instance, younger individuals are typically charged lower premiums in term insurance due to lower risk. In contrast, health and life insurance premiums may vary based on risk factors like lifestyle and medical history.
4. Differential Pricing: The company adopts differential pricing based on customer segments and policy types. This means the cost of a policy might differ for different individuals and other insurance companies, even within the same product category, based on their risk profile and the coverage they opt for.
5. Flexible Payment Options: LIC offers flexible premium payment options, such as monthly, quarterly, semi-annual, or annual payments, catering to the diverse financial capabilities and preferences of its vast customer base. This flexibility in payment not only makes insurance more accessible but also allows for better financial planning for the customers.

In summary, LIC’s pricing strategy combines value perception, competitive analysis, market leadership, dynamic and differential pricing, and customer-centric payment flexibility to maximize market penetration while ensuring sustainability and profitability.

LIC Place Strategy

As LIC- Life Insurance is a service industry, its products and facilities are distributed through various channels – direct and indirect. Numerous routes are taken to reach the potential customers. An essential and primary channel member until this date has been the “Insurance agent.” Taking various innovative routes to reach the corner that is the farthest and remotest is the objective of the LIC Company. Physical distribution of the service products, which in this case is funds and support at the right time, is an essential factor of the marketing policy of LIC- Life Insurance Company.

LIC’s place strategy is as follows:

1. Extensive Branch Network: LIC has a vast network of branches across India, ensuring easy accessibility for customers in both urban and rural areas.
2. Online Presence: LIC offers online services through its website and mobile applications, allowing customers to access services remotely and conveniently.
3. Partnerships with Banks and Financial Institutions: LIC collaborates with various banks and financial institutions, enabling it to reach a broader customer base and offer its products through multiple channels.
4. Agent and Advisor Network: A large base of agents and advisors spread across the country plays a crucial role in LIC’s distribution, providing personalized services to customers.
5. Customer Service Centers and Satellite Offices: LIC operates numerous customer service centers and satellite branch offices to address customer queries and provide support, enhancing the overall customer experience.

LIC Promotion Strategy

The promotional and marketing strategy of LIC- Life Insurance is straightforward. Its main aim is to inform consumers about its various policies and brands. It has taken steps like personal selling, exhibitions, event demonstrations, advertising, and new schemes to fulfill this. Bags, diaries, and calendars are distributed as gifts and incentives to the policyholders. Advertisements are shown on televisions, newspapers, and billboards as promotional activities.

A mobile van for publicity roams across the rural areas, creating awareness about the company. LIC- Life Insurance has its website and webpage where all the detailed information about every possible query is supplied to satisfy the consumers. Most advertising is driven toward insurance, which can be purchased by the commoner to increase the company’s reach and, at the same time, the product’s sales. Thus, service marketing brand name, product introduction, and product retention in the customers’ minds are the primary objectives of promotions by Life insurance corporations.

LIC’s promotion strategy is as follows:

1. Integrated Marketing Communication: LIC uses a marketing mix-up of advertising, public relations, and digital marketing to reach a broad audience and maintain a strong brand presence.
2. Customer-Centric Campaigns: Their campaigns focus on customer service sector trust and reliability, highlighting the security and benefits of investing in LIC policies.
3. Agent-Driven Sales Promotion: LIC relies heavily on its vast network of agents who engage in direct selling and personalized customer interactions to promote its products.

Some Recent Video ads and Print ads of LIC are:

LIC People Strategy

When discussing the “People” aspect of the Service Marketing Mix for Life Insurance Corporation of India (LIC), it’s essential to focus on the employees, agents, and all the stakeholders involved in delivering LIC’s services. Here are some key points to consider:

1. Skilled Workforce: LIC prides itself on a highly trained and skilled workforce that understands the nuances of insurance products and the needs of customers. This includes a vast network of agents, customer service executives, and back-end staff who are well-versed in LIC’s offerings and capable of effectively guiding customers through the buying process.
2. Customer-Centric Agents: LIC’s agents are the backbone of its operations, often serving as customers’ first point of contact. These agents undergo rigorous training to understand the diverse range of products and align these products’ customers’ needs. They are trained in customer service, sales techniques, and product knowledge to ensure they can provide personalized advice.
3. Training and Development: Continuous training and development programs are a staple for LIC employees and agents. These programs are designed to keep them updated on the latest products, regulations, and technologies in the insurance sector. This commitment to training ensures that the quality of service remains high and evolves according to market demands.
4. Diverse Team: The organization boasts a diverse team serving its diverse customer base. This diversity enables LIC to meet customers’ unique needs from different cultural, social, and economic backgrounds.
5. Employee Engagement: It strongly emphasizes employee satisfaction and engagement, recognizing that motivated employees are crucial for delivering exceptional service. Various initiatives are initiated to ensure a positive work environment, including recognition programs, career development opportunities, and work-life balance policies.
6. Performance Recognition: The corporation has a system to recognize and reward the outstanding performance of its agents and employees only to motivate and retain courage, encouraging a culture of excellence.
7. Ethical Practices and Integrity: People associated with LIC, including its agents and employees, are expected to adhere to the highest standards of ethics and integrity. This trustworthiness is crucial in the insurance business, where customers need to feel confident in the advice they are offered.
8. Customer Service Teams: Dedicated customer service teams are essential to LIC’s operations, providing support and resolving issues for existing policyholders. These teams are efficiently trained to handle queries and complaints and efficiently ensure customer satisfaction.
9. Technological Support for Staff: LIC equips its staff with the latest technological tools to enhance productivity and service delivery. This includes customer relationship management (CRM) systems, digital platforms for sales and service, and mobile applications to ensure that employees and agents can serve customers effectively and efficiently.
10. Community Involvement: LIC’s people are often involved in community services and initiatives, reflecting the organization’s commitment to social responsibility. This helps build a positive brand and instills a sense of purpose and fulfillment among employees and agents.

LIC Process Strategy

The “Process” aspect of the Service Marketing Mix refers to the procedures, mechanisms, and flow of activities by which services are consumed. For Life Insurance Corporation of India (LIC), the process involves several key steps that ensure the delivery of their insurance products and services to customers efficiently and satisfactorily. Here are the main points to consider regarding LIC’s process:

1. Customer Onboarding Process: LIC has streamlined the customer onboarding process, making it straightforward for customers to purchase insurance policies. This process typically involves need analysis, filling out application forms, submitting necessary documents, and undergoing a medical examination if required.
2. Underwriting: LIC carries out the underwriting process after the application is submitted. This involves assessing the risk associated with the policy applicant based on their health, lifestyle, and other factors to determine the policy terms and premium rates.
3. Policy Issuance: Once the underwriting process is compolicy is approved, LIC issues the policy document to the customer. This document describes insurance terms, including coverage, premium payment schedule, benefits, and conditions.
4. Premium Payment Process: LIC offers multiple channels for premium payments, including online payments, auto-debit from bank accounts, payment at LIC offices, and through authorized banks and agents. This flexibility ensures convenience for policyholders.
5. Claims Processing: LIC has a structured process for claim settlement, which involves notifying LIC of the claim, submitting required documents (such as a certificate for life insurance claims), and going through verification to ensure that claims are settled promptly to provide financial support to policyholders or beneficiaries when needed.
6. Customer Service and Support: The corporation has established multiple touchpoints for customer service, including a dedicated customer service department, call centers, and online portals. These channels address customer queries, policy servicing requests, and grievances.
7. Grievance Redressal Mechanism: LIC has a well-defined grievance redressal mechanism to handle complaints and issues raised by policyholders. This includes escalation matrices and timelines for resolution, ensuring that customers’ concerns are addressed effectively.
8. Renewal and Policy Servicing: The process also encompasses policy renewal notices and reminders, ensuring policyholders are aware of upcoming premium payments to keep their policies active. Policy servicing also includes adjustments, endorsements, and managing changes in policy details.
9. Technological Integration: LIC utilizes technology to streamline its processes, from online policy applications to electronic policy documentation and mobile apps for managing policies and payments. This digital approach makes the insurance process more efficient and accessible to customers.
10. Agent and Intermediary Training: Agents and intermediaries play a crucial role in LIC’s process. They are trained to guide customers through the insurance process, from initial consultation to policy purchase and servicing, and seamless customer experience.
11. Feedback and Continuous Improvement: LIC incorporates customer feedback into its process improvement initiatives. Regular input feedback and operational performance identify areas for enhancement, ensuring that processes evolve to meet changing customer needs and expectations.

LIC Physical Evidence Strategy

The “Physical Evidence” component of the Service Marketing Mix refers to the environment in which the service is delivered, alongside any tangible elements that facilitate the service process or communicate service quality. For the Life Insurance Corporation of India (LIC), the physical is crucial in shaping perceptions of trustworthiness, reliability, and professionalism. Here are some key points to consider regarding LIC’s physical evidence:

1. Branch Offices: LIC’s widespread network of branch offices across this serves as a crucial physical evidence point. These offices are designed to be welcoming and professional, offering a space where customers can meet with agents, discuss their needs, and get assistance with various services.
2. Policy Documents: The tangible policy documents provided to policyholders are a significant form of physical evidence. These documents depolicy terms policy, including benefits, premium payment schedule, and conditions, as a contract between LIC and the policyholder.
3. Branding and Corporate Identity: LIC’s logo, brand colors, and overall corporate identity are consistently displayed across its offices, documents, and marketing materials. This visual branding helps in building recognition and trust among customers.
4. Marketing Materials: Brochures, flyers, and other promotional materials that provide information about LIC’s products and services also serve as physical evidence. They are designed to be informative and reassuring, helping customers to understand the options available to them.
5. Website and Online Portals: Although part of the digital landscape, LIC’s website and customer portals are tangible elements of the company’s service offering. They offer a user-friendly interface for accessing information, managing policies, and making transactions, contributing to the overall customer experience.
6. Customer Service Counters: Inside LIC branches, customer service counters and waiting areas are set up to ensure comfort and privacy while customers wait for or receive service. The professionalism and layout of these areas reflect LIC’s commitment to customer care.
7. Receipts and Correspondence: Payment receipts, letters, emails, and SMS notifications are physical proof of transactions and interactions with LIC. They are crucial for maintaining transparency and communication with policyholders.
8. Signage and Wayfinding: Within LIC offices, clear signage and wayfinding tools help customers navigate to the proper departments or counters, enhancing the service experience by making it easier for customers to get the help they need.
9. Agent Identification: LIC agents carry official identification; business cards are physical evidence of their authority and affiliation with LIC. This is important for establishing trust and credibility with customers.
10. Awards and RecogThe display: The display of awards and recognitions received by LIC in its offices and on its website sa serves as a testament to its service quality, reliability, and excellence in the insurance sector.
11. Customer Testimonials and Success Stories: Published testimonials and success stories, whether in brochures, on the website, or displayed in offices, provide potential customers with tangible proof of satisfaction and security provided by LIC policies.
12. Technology and Equipment: The use of advanced technology and equipment in LIC offices, like automated queue management systems and interactive kiosks, reflects the company’s commitment to efficient service delivery.

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