Documentos de Académico
Documentos de Profesional
Documentos de Cultura
A
Project Report
On
Competition Analysis
“Poor firms ignore their competitors; average firm copy their competitors; winning firm lead their
competitors.”
-Philip Kotler
By
Deepanshu Gupta
Enrolment No XI09013
PGPMI-2009
INDEX
Content Page
no.
1. Objective of the project 3
3. Introduction 4
5. Recommendations 10
6. Bibliography 11
7. Appendix A : Questionnaire 12
To examine the technologies involved in analyzing business & competitive data &
information including environmental analysis, industry analysis & competitor
analysis.
“Know your enemy, and in 100 battles you will never be defeated.”
-Sun Tsu, from Art of War
The insurance industry is as competitive as any, yet sometimes we are negligent in
the analysis of our competition. Most companies have concluded that they can’t be
“all things to all people”. Every company has certain unavoidable limitations and
obstacles. It is in the assessment of this fact that we all need to evaluate ourselves
relative to our competitors.
Knowing these strengths and weakness enables a company to effectively build its
brand and establish its product. We need to make a conscious effort to ask the key
question: how do we stack up against our competitor? The answer to this will be
constantly changing, so the question should be repeated and discussed often.
For evaluating how we measure up the competition, we use certain tools and
techniques which is used to define the different criteria of competitor analysis like
price, products, policy, customer service, automation etc.
Competitor Analysis
It has two primary activities, 1) obtaining information about competitors, and 2) using
that information to predict competitors behaviour. The goal of competitor analysis is
to understand:
• with which competitor to compete,
• competitor’s strategies and planned actions,
• how competitor might react to a firm’s action,
• how to influence the competitor behaviour to the firm’s own advantage,
• how to increase the market share,
• how to build the brand image,
• how to establish the position of the product in the eyes of the customers etc.
2) Porter’s Five Forces Framework : The five forces come from Michael porter’s
famous framework and are:
The idea is that change in the market is to come on the basis of one of these
five areas. In considering how these “forces” act on your market, we get a
picture of issues such as channel conflict, threats from vertical integration in a
competitive market. We can also take the view as to how we can affect the
competitive situation for our own benefits, rather than statically accepting the
status quo.
5) Media Scanning - Scanning competitor's ads can reveal much about what that
competitor believes about marketing and their target market. Changes in a
competitor's advertising message can reveal new product offerings, new
production processes, a new branding strategy, a new positioning strategy, a
new segmentation strategy, line extensions and contractions, problems with
previous positions, or value migrations within the industry. It might also
indicate a new pricing strategy such as penetration, price discrimination, price
skimming, product bundling, joint product pricing, discounts, or loss leaders. It
might also indicate a new distribution strategy. Little of this intelligence is
definitive : additional information is needed before conclusions should be
drawn.
To study the competition and the environmental and industry factors that affects the
competition between the various players in the insurance industry, I adopted the
following research methodologies and their findings :
VII. What are the things that the people like insurance companies to
provide?
• 100% of the people knew about LIC and about 80%(24 out of 30) of
them were having LIC insurance policies. ICICI Prudential and Bajaj
Allianz were next. About 87% (13 out of 15) in big cities and 60% (9 out
of 15) in small towns knew about ICICI Prudential. Out of these, only
44% (13 out of 30) bought insurance policies of ICICI Prudential. This
percentage was more in big cities than in small towns. Bajaj Allianz
was little behind with about 63% (19 out of 30) awareness level. SBI
Life is another major insurance company about which people are
aware.
• None of the advertisements were very effective. People remembered
ICICI Prudential “Jeete Raho” and HDFC Standard Life Father-
Daughter talk of going to moon advertisement. However, This
percentage was very low. Only 7 out of 30 people, remembered the
ads. People remembered the “Jeete Raho” puchline of icici’s ad.
• People trusted LIC the most. SBI Life and ICICI Prudential followed
next.
• When asked, what is the most important thing people wanted from the
insurance industry – immediate claim settlement, better returns, tax
benefits, added riders and better service – this was the sort that people
wanted in that order.
• The most favoured product were endowment, term, investment, health,
protection and ULIP, in descending order.
• The most important channel for awareness of people by insurance
product was from sales representative/agents. Other important
channels were, friends and colleagues and from TV.
• Number of males buying the policy was more than that of women.
• People who bought or were ready to buy more number of policies were
from the age group 20 to 44 years. About 74%(23 out of 30) were from
this age group.
POTENTIAL SUBSTITUTES
ENTRANTS JEEVAN ASTHA (LIC),
DLF PRAMERICA UNIT PLUS (SBI
LIFE, STAR UNION LIFE),
DAI-CHI LIFE, NEW CAPITAL GAIN
FUTURE GENERALI (BAJAJ ALLIANZ) etc.
LIFE, SRIRAM
INDUSTRY
COMPETITORS
LIC, BAJAJ ALLIANZ,
SBI LIFE, RELIANCE
LIFE, HDFC
STANDARD LIFE,
BIRLA SUN LIFE,
BUYERS SUPPLIERS
SWITCHING TO GROWING POWERS
DIFFERENT BANKS, CA ARE
INVESTMENT IMPORTANT
SECTORS FOR BETTER CHANNELS TO REACH
RETURNS, THE CLIENT. HIGH
UNDIFFERENTIATED
Deepanshu Gupta, XI09013 Page 9 BARGAINING POWER
Findings from the Porter’s Five Force Theory:
Recommendations:
• In terms of awareness, LIC is the leader, the reason being it was established
about five decades ago. Perspective is changing now. People have started
recognizing private companies. Companies should spend more money on
advertisements. Agents play a crucial role here. Agents should be given more
responsibility so that he/she can make more people aware about the
company.
• Advertisement should be more creative and shown very often so that the
people don’t forget the advertisement. It should be more of a reminder and
persuasive advertisement.
• As LIC and SBI are backed up by government so the people trust these
companies more. The private companies should create more trust by
providing better services, better returns and timely claim settlement.
• Companies should come up with more creative products which comes with
protection as well as investment. People still take insurance as investment
option but not a need for their security. This belief has to be changed and the
• People from the middle age group buy the insurance most. Newly married
people should be targeted. This is the segment which is potentially very
strong. This is the segment which will take child education, health care,
pension, investment, protection plans for themselves and their families.
• Agents should be made more reliable in the eyes of the people by giving them
proper training. This is important as they are the first hand contact with the
customers.
• Banks and CA’s which play a major role in providing business to the
companies should be taken well care of by providing them with different
opportunities which will help to increase their as well as the companies profit.
This can be a hike in the commission they receive. Bancassurance should be
started as people trust banks more than the insurance companies..
• Number of women buying the policies is very low. Companies should bring
such products that the women may find useful.
Bibliography:
4) http://en.wikipedia.org/
5) www.netmba.com
7) www.usabilitynet.org
8) www.siliconindia.com
9) www.naukarihub.com
Appendix A: Questionnaire
We are conducting a survey about insurance and would like to know your
views and opinions. Would you mind spending a few minutes helping us by
completing this questionnaire?
Q2. Which brands of insurance are you aware of? (grade from 1 to 6, 6 –
I know very well, 1- I am not aware of)
Q3. Which insurance can you recall having seen or heard advertising
for in the past month? (yes/No)
LIC
ICICI Prudential Life Insurance Co Ltd
HDFC Standard Life Insurance Co Ltd
Reliance Life Insurance Co Ltd
Birla Sun Life Insurance Co Ltd
Bajaj Allianz Life Insurance Co Ltd
SBI Life Insurance Co Ltd
Max New York Life Insurance Co Ltd
Metlife Insurance Co Ltd
Aviva Life Insurance Co Ltd
Kotak Mahindra Old Mutual Life Insurance
Co Ltd
Q5. Which companies policy product would you like to buy (In which
company do you trust)?
LIC
ICICI Prudential Life Insurance Co Ltd
HDFC Standard Life Insurance Co Ltd
Reliance Life Insurance Co Ltd
Birla Sun Life Insurance Co Ltd
Bajaj Allianz Life Insurance Co Ltd
SBI Life Insurance Co Ltd
Max New York Life Insurance Co Ltd
Metlife Insurance Co Ltd
Aviva Life Insurance Co Ltd
Kotak Mahindra Old Mutual Life Insurance
Co Ltd
Q7. Which of the following products would you like to buy for
yourself and your family? (Tick the appropriate box)
Endowment Plan
Pension Plan
Health Plan
Critical care plan
Child Education Plan
Unit linked insurance plan
Term plans
Whole Life Plans
Protection plans
Investments plans
We would like to know a little more about you to help us understand how
different people like different products and services.
Thank you for taking part in this survey. All your answers will be treated
confidentially.