A REPORT ON

SURANCE COMPANY LTD.

(Impact

of Brand Equity on sales in the context of insurance industry)

nd Equity on sales in the context of insur

By:Sandarbh Goswami
13A3HP041
A report submitted in partial fulfillment of the requirements of MBA Program of IMT
Hyderabad
(IDBI FEDRAL LIFE INSURANCE COMPANY LTD.)

Company Guide Details

Faculty Guide Details

Mrs. Shanthi Yagnanath

Dr. Sridhar Vaithianathan

Assistant Manager

Associate Professor

June 25th, 2014

ACKNOWLEDGEMENT
At first , I would like to extend my thanks to Ms Shanthi yagnanatha who
gave me a chance to have the hands on experience of learning the ethos of
corporate culture in an organization like IDBI FEDRAL LIFE INSURANCE
COMPANY Ltd.
I would also like to thank my company guide Mr. Datta Reddy (Assistant
Manager) under whose tutelage and guidance, I have been successful to
execute this undertaking.
I would also like to take the opportunity to thank my faculty guide, Dr.
Sridhar Vaithianathan (Associate Professor, Operations), who has been a
continuous epitome of putting in the correct efforts and as well as how to
improvise over time. He has been a catalyst in bringing this undertaking to the
desired format.
Not to forget, I would also like to thank all other people from IDBI FEDRAL
LIFE INSURANCE. who provided me with constant help and took out time to
listen to my queries and helped me override them in the best possible way.

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TABLE OF CONTENTS
Content

Page No.

Title Page

Acknowledgement

Executive Summary

Introduction

Industrial Analysis

About Company
Methodology

8-14
15-33

Limitations

34

Findings

35

References

36

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Executive Summary
The health of the insurance sector reflects a countrys economy. This
sector not only generates long-term funds for infrastructure
development, but also increases a countrys risk-taking capacity. Indias
economic growth since the turn of the century is viewed as a significant
development in the global economy. This view is helped in no small part
by a booming insurance industry. The future of the Indian insurance
sector looks bright. The sector which stood at a strong US$ 72 billion in
2012 has the potential to grow to US$ 280 billion by 2020. This growth is
driven by Indias favorable regulatory environment which guarantees
stability and fair play. This environment has given rise to an insurance
market which encourages foreign investors to tap into the sectors
massive potential.
This project is about the brand equity of the insurance company, which is
what factors are there which makes the brand equity for this company
and what is their impact in insurance perspective. Thus in the nutshell it
will give the effect which the IDBI Fedral company is having of its brand
equity on its sales.
In this project the focus is on the customer based brand equity model. As
per Kevin Lane Kellar brand equity is the differential effect of knowledge
of brand on customers to the marketing aspects. The factors which are
responsible for the brand equity are past experiences, perception,
information. Brand equity is composed of brand image which is what
image of the brad a customer has based on the past experiences of itself
or of others, second is brand knowledge which is the major part as for
having any perception one should have full knowledge of that particular
subject and that is where brand knowledge comes into play. Third comes
the brand perception it is the thought or hypothesis in the minds of
customers about the working of a product or a company. As this project is
dealing with a service sector company customer relationship with
company is a major factor here which decides the perception a customer
will have about the company. Fourth is the brand substitutability, which is
specially considered for this project it determines the level to which a
customer can substitute its brand with other brand if that brand is
unavailable.
Thus this project will give the current strength and positioning of the
brand and when this brand equity will be combines with the sales data it
will give that what is the impact of different factors of brand equity on
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sales, it will elaborate that which factors hold sales with them with
respect to others.

Industry overview
Insurance in India is the market for insurance in India which covers both
the state and private sector organization . It is listed in the Constitution
of India on the Union list in the Seventh Schedule meaning it can only be
legislated by the central government.
The insurance sector has gone through a number of phases by allowing
private companies to solicit insurance and also allowing foreign direct
investment of up to 26% (as of 2013 there have been proposals to
extend the FDI up to 49% to strengthen the Insurance Market even
further).
The future of the Indian insurance sector looks bright. The sector which
stood at a strong US$ 72 billion in 2012 has the potential to grow to US$
280 billion by 2020. This growth is driven by Indias favorable regulatory
environment which guarantees stability and fair play. This environment
has given rise to an insurance market which encourages foreign investors
to tap into the sectors massive potential.
Ever since the Indian government liberalized the insurance sector in 2000
and opened the doors for private participation, the sector has gone from
strength to strength. The resultant competition has provided the
consumer with a never-before-seen range of products and providers, and
also enhanced service levels markedly.
The health of the insurance sector reflects a countrys economy. This
sector not only generates long-term funds for infrastructure
development, but also increases a countrys risk-taking capacity. Indias
economic growth since the turn of the century is viewed as a significant
development in the global economy. This view is helped in no small part
by a booming insurance industry.

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Road AheadThe insurance business in India is projected to reach Rs 4 trillion (US$

63.01 billion) in FY 201314, according to Mr. TS Vijayan, Chairman, IRDA.
Total premiums collected by the general and the life insurance industry in
FY 20122013 amounted to Rs 3.75 trillion (US$ 59.07 billion). The
chairman believes that insurance penetration in India has the potential to
rise to 56 per cent from the current 3.86 per cent.
Life Insurance Council, the industry body of life insurers in the country,
has projected a compounded annual growth rate (CAGR) of 1215 per
cent over the next five years for the segment. Indias insurable
population is expected to grow to 750 million by 2020, with life
expectancy projected to reach 74 years around the same period. The
council believes that this favorable Indian demography would result in
more people seeking out life insurance. Also, the council predicts life
insurance penetration percentage of insurance premium to GDP to
reach 5 per cent by 2020 from its current 3.2 per cent.
Confederation of Indian Industry (CII) projects the growth rate for Indias
insurance industry in FY 201314 to be around 5 per cent. It also
anticipates 60 per cent of non-life insurance companies to record an
average growth of more than 10 per cent. The raising of the foreign
direct investment (FDI) limit from 26 per cent to 49 per cent in the sector
is viewed as a key element to promote the insurance industry in India.

Life insurance companies in India (Public Sector)

Life Insurance Corporation of India

Private Sector
AEGON Religare Life Insurance
Edelweiss Tokio Life Insurance Co. Ltd
Aviva India
Shriram Life Insurance
Bajaj Allianz Life Insurance
Bharti AXA Life Insurance Co Ltd
Birla Sun Life Insurance
Canara HSBC Oriental Bank of Commerce Life Insurance
Star Union Dai-ichi Life Insurance
DHFL Pramerica Life Insurance

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Future Generali Life Insurance Co Ltd

HDFC Standard Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited
IDBI Federal Life Insurance
IndiaFirst Life Insurance Company
ING Life Insurance
Kotak Life Insurance
Max Life Insurance
PNB MetLife India Life Insurance
Reliance Life Insurance Company Limited
SBILife Insurance Ltd.

IDBI FEDRAL LIFE INSURANCE COMPANY LTD

IDBI Federal Life Insurance Co. Ltd.,(formerly IDBI Fortis Life Insurance) is
a joint venture between three financial companies development and
commercial bank, IDBI Bank, Indias private sector bank, Federal Bank
and European insurer Ageas (formerly Fortis), which was formed on
March 2008. In this venture, IDBI Bank owns 48% equity while Federal
Bank and Ageas own 26% equity each. Having started in March 2008, in
just five months of inception, IDBI Federal became one of the fastest
growing new insurance companies by garnering Rs.100 Cr in premiums.
Through a continuous process of innovation in product and service
delivery IDBI Federal aims to deliver world-class wealth management,
protection and retirement solutions that provide value and convenience
to the Indian customer. The company offers its services through a vast
nationwide network 2,308 partner bank branches of IDBI Bank and
Federal Bank in addition to a sizeable network of advisors and partners.
As on 31st December 2013, the company has issued nearly 5.5 lakh
policies with a sum assured of over Rs. 32,110.48 crores.

Current market share of insurance companies in India-

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Market share

4% 3%

2% 1%

5%
5%
9%

LIC

ICICI PRUDENTIAL

SBI LIFE

HDFC STANDARD

BAJAJ ALLIANZ

MAX LIFE

BIRLA SUN LIFE

IDBI FEDRAL LIFE

INSURANCE

72%

About my Project

The title of my project is IMPACT OF BRAND EQUITY ON SALES IN

CONTEXT OF INSURANCE SECTOR .
In simple terms, brand equity is a construct that is designed to reflect
the real value that a brand name holds for the products and services that
it accompanies. Brand equity is considered important because brands
are believed to be strong influencers of critical business outcomes, such
as sales and market share. For example, Inc. Magazine notes that
branded products invariably command a higher price than so-called
"generic" or "store brands"even when the product is itself a commodity
like sugar. In such cases the higher price is due almost entirely to the
power of the brand.
This project is about the brand equity of the insurance company, which is
what factors are there which makes the brand equity for this company
and what is their impact in insurance perspective. Thus in the nutshell it
will give the effect which the IDBI Fedral company is having of its brand
equity on its sales.

8 | Page

In this project the focus is on the customer based brand equity model. As
per Kevin Lane Kellar brand equity is the differential effect of knowledge
of brand on customers to the marketing aspects. The factors which are
responsible for the brand equity are past experiences, perception,
information. Brand equity is composed of brand image which is what
image of the brad a customer has based on the past experiences of itself
or of others, second is brand knowledge which is the major part as for
having any perception one should have full knowledge of that particular
subject and that is where brand knowledge comes into play. Third comes
the brand perception it is the thought or hypothesis in the minds of
customers about the working of a product or a company. As this project is
dealing with a service sector company customer relationship with
company is a major factor here which decides the perception a customer
will have about the company. Fourth is the brand substitutability, which is
specially considered for this project it determines the level to which a
customer can substitute its brand with other brand if that brand is
unavailable.
For this project a set factor are designed based on the Aakers and Kevin
Kellers brand equity model and the research result from Brad Aukens
The blake Project. The factors which are taken are brand loyalty, brand
awareness, brand image perceived brand quality, brand association,
post purchase decision, brand response and brand substitutability.

BRAND AWARENESS
Keller (2003) stated that Brand awareness can be referred to as the ability of a consumer to
distinguish a brand under various conditions.
Brand awareness is built and increased by familiarity with the brand as a result of repeated
exposure of the brand through various marketing strategies which eventually leads to
consumers experience with the brand.
Consumers experience of a particular brand could either be by hearing, seeing, or thinking
about it and this will help the brand to create a certain degree of perception in the minds of
consumers.
There are three levels of brand awareness namely:
Brand recognition: It is the ability of consumers to identify a certain brand amongst
other i.e. aided recall. Aided recall is a situation whereby a person is asked to
identify a recognized brand name from a list of brands from the same product
class.

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 Brand

recall: This is a situation whereby a consumer is expected to name a brand in

a product class. It is also referred to as unaided recall as they are not given any
clue from the product class.
Top of mind: This is referred to as the first brand that a consumer can recall amongst
a given class of product.
Brand awareness plays a major role and has the most powerful influence on consumers
purchase decision. Brand awareness is an important way of promoting commodity-related
products. This is because for these products, there are very few factors that differentiate one
product from its competitors. Therefore, the product that maintains the highest brand
awareness compared to its competitors will usually get the most sales.
For example, in the soft drink industry, very little separates a generic soda from a brandname soda, in terms of taste. However, consumers are very aware of the brands Pepsi and
Coca Cola, in terms of their images and names. This higher rate of brand awareness equates
to higher sales and also serves as an economic moat that prevents competitors from gaining
more market share.
BRAND LOYALITYAaker defined Brand loyalty as the attachment that a customer has to a brand. It can also
be seen as consumers preference to purchase a particular brand in a product class and this
could be as a result of the consumer awareness about that particular brand.
Aaker classified loyalty as follows:
Non- customer: these are people who buy the brands of competitors.
Price switcher: these are the once that are sensitive to price.
Passive loyal: these once are purchase brand/product as a result of habit rather that
reason.
Fence sitters: are those that are indifferent between several brands.
Committed: are those who are honestly loyal to the brand.

BRAND IMAGEBrand image is referred to as the consumer perception about the brand or how they view it.
According to Keller (1993), brand image is also seen as a symbolic construct created
within the minds of people and consist of all the information and expectation associated
with product or service .
Brand image is the current view of the customers about a brand. It can be defined as a
unique bundle of associations within the minds of target customers. It signifies what the
brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is
nothing but the consumers perception about the product. It is the manner in which a specific
brand is positioned in the market. Brand image conveys emotional value and not just a
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mental image. Brand image is nothing but an organizations character. It is an accumulation

of contact and observation by people external to an organization. It should highlight an
organizations mission and vision to all. The main elements of positive brand image areunique logo reflecting organizations image, slogan describing organizations business in
brief and brand identifier supporting the key values.
Brand image is the overall impression in consumers mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they
form brand image. An image is formed about the brand on the basis of subjective
perceptions of associations bundle that the consumers have about the brand. Volvo is
associated with safety. Toyota is associated with reliability.
The idea behind brand image is that the consumer is not purchasing just the product/service
but also the image associated with that product/service. Brand images should be positive,
unique and instant. Brand images can be strengthened using brand communications like
advertising, packaging, word of mouth publicity, other promotional tools, etc.
Brand image develops and conveys the products character in a unique manner different
from its competitors image. The brand image consists of various associations in consumers
mind - attributes, benefits and attributes. Brand attributes are the functional and mental
connections with the brand that the customers have. They can be specific or conceptual.
Benefits are the rationale for the purchase decision. There are three types of benefits:
Functional benefits - what do you do better (than others ),emotional benefits - how do you
make me feel better (than others), and rational benefits/support - why do I believe you(more
than others). Brand attributes are consumers overall assessment of a brand.
Brand image has not to be created, but is automatically formed. The brand image includes
products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing its
image. Brand image is the objective and mental feedback of the consumers when they
purchase a product. Positive brand image is exceeding the customers expectations. Positive
brand image enhances the goodwill and brand value of an organization.
PERCIEVED BRAND QUALITYPerceived quality can be defined as the customers perception of the overall quality or
superiority of a product or service with respect to its intended purpose, relative to
alternatives(Valarie A.Zeithaml 1988). Perceived quality is, first a perception by customers.
Perceived quality is defined relative to an intended purpose and a set of alternatives.
Perceived quality is an intangible, overall feeling about a brand. However, it usually will be
based on underlying dimensions which included characteristics of the products to which the
brand is attached such as reliability and performance.
Perceived quality can be defined as the customer's perception of the overall quality or
superiority of a product or service with respect to its intended purpose, relative to
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alternatives. Perceived quality is, first, a perception by customers. It thus differs from
several related concepts, such as:
a) Actual or objective quality: the extent to which the product or service delivers superior
service
b) Product-based quality: the nature and quantity of ingredients, features, or services
included
c) Manufacturing quality: conformance to specification, the "zero defect" goal
Perceived quality cannot necessarily be objectively determined, in part because it is a
perception and also because judgments about what is important to customers are involved.
An evaluation of washing machines by a Consumer Report expert may be competent and
unbiased, but it must make judgments about the relative importance of features, cleaning
action, types of clothes to be washed, and so on that may not match those of all customers.
After all, customers differ sharply in their personalities, needs, and preferences.
Perceived quality is an intangible, overall feeling about a brand. How-ever, it usually will be
based on underlying dimensions which include characteristics of the products to which the
brand is attached such as reliability and performance. To understand perceived quality, the
identification and measurement of the underlying dimensions will be useful, but the
perceived quality itself is a summary, global construct.
Perceived quality is a major determinant of brand strength. Quality helps to increase market
share, which results in lower unit costs through scale economies. So it provides a
competitive edge over the rivals in securing potential market area by inspiring the
customers.
BRAND ASSOCIATIONTo create brand equity, it is important that the brand have some strong, favorable and unique
brand association. Creating strong, favorable and unique associations is a real challenge to
marketers, but essential in terms of building customer-based brand equity.
The favorable brand associations are created by convincing consumers that the brand
possesses relevant attributes and benefits that satisfy their needs and wants such that they
from positive overall brand judgments. Basically brand associations can be classified into
three major categories that is, attributes, benefits and attitudes. Attributes are those
descriptive features that characterize a product or service.
Attributes are further sub divided into product related and non-product related. Benefits are
the personal value consumers attach to the product or service attributes can be further
distinguished into three categories i.e. functional benefits, experimental benefits and
symbolic benefits. Brand attitudes are consumers overall evaluations of a brand, which is
most important one because it is directly associated with the consumers buying behavior.
POST PURCHASE BEHAVIORAfter purchasing the product, the consumer will experience some level of satisfaction or
dissatisfaction. The consumer will also engage in post purchase action and product uses of
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interest to the marketer. The consumers satisfaction or dissatisfaction with the product will
influence subsequent behaviour, if the consumer is satisfied, then he/she will exhibit a
higher probability of purchasing the product on the next occasion.
The satisfied consumer will also tend to say good thighs about the product and the company
to others. The post purchase behaviour is depending upon the extent of consumers set of
experience stored in memory, how well they select products and stores and the type of
feedback they received.
The post purchase evaluation involves comparison between the expectations and actual
performance of the product or brand. There are three possibilities at this stage. First, there is
no discrepancy between expectations and actual performance. It leaves the consumer with
neutral feelings. Second, performance exceeds expectations, in this situation consumer feels
satisfied. Third, performance falls below expectations, this leaves the consumer dissatisfied.
Post purchase behaviour indicates to what extent these purpose have been met and motives
achieved. Post purchase activity gives an indication as to whether the customers are going to
again patronize a firm in future, and also whether they will be in a mood to recommend a
product to potential customers.
Simply defined, Post-Purchase Behavior is the stage of the Buyer Decision Process when a
consumer will take additional action, based purely on their satisfaction or dissatisfaction.
The consumer's level of satisfaction or dissatisfaction is directly related to the varying
relationship between their initial expectations of the product (pre-purchase), and their
perception of the actual performance of the product (post-purchase) in their hands.
If after the purchase the consumer perceives the product's performance as matching their
expectations, or even exceeding them, they will be "satisfied". If their perception of the
product's performance is less than their expectations, then the consumer will feel
"dissatisfied". The larger the gap between their expectations and the product's performance,
the more dissatisfaction. This dissatisfaction leads to Cognitive Dissonance.
Cognitive Dissonance is buyer discomfort caused by post-purchase conflict resulting from
dissatisfaction. The reality is that all purchases, big and small, will result in some degree of
Cognitive Dissonance. This is always the case, because every purchase a consumer makes
involves some sort of compromise, however small or minute. Since consumers form beliefs
and attitudes early in the Buyer Decision Process, at some point they will be concerned
about having a negative experience with the product they may chose, or potentially missing
the perceived benefits of other competing brands.
The issue of Cognitive Dissonance raises an important question: Why is it so important to
satisfy the consumer? It all comes back to our basic definition of marketing: Managing
profitable customer relationships. The goal is to attract new customers through superior
value, and to keep growing customers by delivering customer satisfaction. If we are doing
these things, then we will be able to capture value from customers to create profits and build
customer equity. So, if our customers are satisfied they will begin to develop brand loyalty.
This brand loyalty will help us develop profitable relationships. Our satisfied customers
will buy from us again. They will become influencers in their cultural and social groups.
They will pay less attention to competitors, and buy more of our products.
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Dissatisfaction breeds the opposite. Consumers that perceive poor product performance will
not create profits and will erode customer equity. They will not be loyal, and they will
become negative influencers in their cultural and social groups, leading others away from
our brands. What should we do with dissatisfied customers? We should pursue them. Even
if they do not want to buy our products, we can still target them with dedicated messaging.
We can directly reach out to them, and we can figure out ways to repair the relationship.
These consumers can provide us with a wealth of primary data that can be used to improve
our offerings and create focused marketing campaigns. Dissatisfied consumers are just as
valuable as satisfied ones.
The conclusion is clear: Our job is not done once the consumer buys our product. Once a
consumer buys a product they will enter some degree of post-purchase behavior. These
behaviors, based on their satisfaction or dissatisfaction, will either build customer equity and
brand loyalty, or lead to eroding sales and brand image issues. This all is related to their
relationship between their expectations and the perceivced performance of the products in
their hands. As marketers, we must have messaging ready for this specific part of the Buyer
Decision Process. It is our job to encourage happy consumers to share their experiences and
dive deeper into brand offerings. It is also our job to be brand advocates by reaching out to
dissatisfied consumers and transforming their experience into one that leads to a profitable
relationship.
BRAND SUBSTITUTABILITYSubstitution refers to the degree of likelihood that the customer will purchase another brand
if their preferred brand is not available. When the substitution is low or nonexistent, a
customer would leave the store without making the purchase if there preferred brand is not
available. A high substitution rate can mean the category is commoditized, and/or the brand
isn't differentiable from competing brands.
For the interest of this project the Longman Moran model of measuring brand substitution
has been used in which the measure is based on the scale that by asking the two questions.
1) Which brand did you buy last time ?
2) If the brand had not been available, what would you have done ( in insurance sector this
will be that if a person again wants to take insurance products will he be going for the same
coming or if he finds the better deal or relevance in some other companies policies , will he
switch to that company or not?
This project is designed such that it will give the outcomes in the perspective of present as
well potential customers. This project will quantify the level of brand equity with the
perspective of present customers of insurance company with future customers. Then this
quantified brand equity value for given insurance companies will be compared against the
last year sales data which will give the level and quantified value of the brand equity impact
on sales.

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Thus this project will give the current strength and positioning of the brand and when this
brand equity will be combines with the sales data it will give that what is the impact of
different factors of brand equity on sales, it will elaborate that which factors hold sales with
them with respect to others. This research will enable managers with the data which will tell
that what level of brand equity that company has and how much it has to work on the brand
equity so as to increase the sales.

METHODOLOGY
This research is cause and effect relationship type so it will require both
primary and secondary data. Further this research will be divided in two
parts. First is the basic exploratory research and second is causal
research.

Basic Exploratory ResearchThis research will explore the different level of brand equity in the
companies of insurance sectors. For this study one market leading
company and IDBI Fedral will be considered.
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SamplingThe sample collected here is convenience non- probabilistic type and it is convenient and
snowball sampling.
Total sample size is 150. Out of which we have made two categories, one is for present
customer of IDBI FEDERAL and LIC and other is potential customers and ratio used here
for sampling is 1:1:1. So as to give the equal weight age.

Type of research methodologySurvey form of methodology will be used in which questionnaire will be
given to the sample and data will be taken out from that. The
questionnaire will be close ended with few questions that will use the
aided method of recognition. For this research a model for measuring
brand equity will be introduced which will evaluate the various factors for
the brand equity, which are- Brand Awareness
-Brand image
-Brand association
-Post purchase behavior
-Brand Perception
-Brand substitutability
-Brand association
-Brand response
Questionnaire will be in the form of ranking order and In this all the
parameters of the brand equity will be evaluated and will be given a
score.

Causal- effect researchThis will constitute the second phase of project. The quantified value of
brand equity will then be run against the previous sales data of selected
company which will be our secondary data. This result will show us that
quantitatively what is the correlation between the brand equity value and
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sales of a insurance company. After that a evaluation will be done on

observation basis about the difference in brand equity in the companies
on the basis of marketing program for brand equity.

DISCUSSION
This research is about the brand equity and its impact on sales. Its about measuring the
brand equity and then calculating its impact. This research depends on the questionnaire to
collect the data. The questionnaire was designed such that it covered all the seven factors
which are taken in order to quantify the value of the brand equity. This research is designed
in the way that it will quantify the brand equity value for the existing customer of IDBI
FEDERAL and LIC as well as for the potential customers.

Existing customers-

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-The first question was regarding the brand response that was is the extent the customers
find their policy relevant to the level of their need to purchase policy. The result for this was

LIC
1

12% 4%
58%

Fig : 1.1

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26%

IDBI FEDERAL
1

2% 4%
40%

2%
52%

Fig : 1.2
The figure 1.1 and 1.2 shows that on the level of the relevance LIC
customers find it more relevant than IDBI FEDERAL customers as for
former the percent of people who find it most relevant is 12% while for
the later it is just 12%.
- The second part was regarding the brand image. It was about the image
of agents and their trust on the information provided by them regarding
policy contract.

LIC
1

2
12%
42%

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3
4%

4
4%
38%

Fig : 1.3

IDBI FEDERAL
1

40%

3
4%

2%
54%

Fig : 1.4
We can see here that LIC customers have more trust and their companys
agents better than IDBI FEDERALs customers find it.
- In the area of brand relationship the factor was about online service of
the insurance company. It was divided into 4 factors.
1) Informative

LIC
1

4% 2%
14%
80%

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Fig : 1.6

IDBI FEDERAL
1

28%

4% 4%
2%
62%

Fig : 1.7
Thus we can see that 80% of LIC customers find the companys site
informative while for the later 28% think that it is very much informative.
2) Easy to access-

LIC
1

2% 2%
44%

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2%
50%

Fig : 1.8

IDBI FEDERAL
1

4%
14%

8%
74%

Fig : 1.9
Thus 44 % customers find LIC online service easy to access while in the
case of IDBI F. only 14% customers found it so.
3) Easy and quick payment facility-

IDBI FEDERAL

LIC
1

4% 6%
64% 26%

4%
26%
16%
54%
Fig : 1.10

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Thus from the above figure we can see that again LIC is having better percentage of the
customers who agrees that their online service is easy and quick in payment.
4) Detailed-

LIC
1
4

2
5

IDBI FEDERAL
3

6% 4%

4%
12%
52%
32%

58%

4%
28%

Fig : 1.11
So, here also LIC customer find it more detailed online service information providing
company then the IDBI FEDERAL customer find it.
- The fourth part is about the brand relationship in the form of customer care. We can see
from the figures below that in the customer care IDBI FEDERAL scored better than LIC.
In the aspects given below1) Customer friendly-

LIC
1 2 3
48% 5
18%
4%
34% 36%

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IDBI FEDERAL
1 2 3
2%
4 5
8% 62%
24% 4%

Fig : 1.12

2) Quick response-

LIC
1
4

2
5

IDBI FEDERAL
3

10% 9%
59%
23%

8% 4%
38% 22%
28%

Fig : 1.13
3) Easy to reach-

LIC
1
4

2
5
8%

12%
46%

4%
30%

IDBI FEDERAL
1

4% 2%
54%
6%
34%
Fig : 1.14

4) knowledgeable staff-

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LIC
1
4

2
5

IDBI FEDERAL
3

8%
12%
4%
46% 30%

1
4

2
5

2% 4%
55% 4%
35%
Fig : 1.15

5) Simple customer redressal system-

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LIC
1
4

2
5

48%
10% 6%
22% 14%

IDBI FEDERAL
1
4

2
5

2% 4%
56% 4%
35%
Fig : 1.16
-The fifth part is about the brand substitutability. And here the results
came out differently, out of all given factors mostly LIC customer said
that they were least interested in moving to other companies, but when
asked overall then the customers of LIC wanted to switch there company
more than the customer of IDBI FEDERAL wanted to do.

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LIC
1
4

2
5

IDBI FEDERAL
3

1
4

22% 2%
32% 18%
26%

2
5

6% 2%
36% 16%
40%
Fig : 1.17

- Next part is the for the potential customers which consists of brand
awareness. It is about the level of brand awareness people have about
LIC and IDBI FEDERAL . from the figure below we can see that LIC is
having 78% of people who are having high level of awareness regarding
LIC, while for IDBI FEDERAL it is 20% and major concerning factor here is
that about 17% people are there who are unaware of the IDBI FEDERAL
which is on the higher side.

IDBI FEDERAL

LIC
1
4

2
5

4% 12%
78%

6%

20% 17%
15%
20%
28%

Fig : 1.18

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-Now next is about the perceived brand quality and brand image, which
was in the form of the factors which potential customers consider the
companies in. it shows that what image and perception people have
regarding these companies.
From the figure given below we can see that 46% people had a
perception that LIC is reliable company and it is the most selected factors
by people for this company. While in the case of IDBI FEDERAL 32%
people find it relevant and only 2% people found it reliable.

LIC
Reliable
Performing
No Idea

Cost-Effective
Relevant

12% 6%
14% 46%
22%

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IDBI FDERAL
Reliable
Relevant

Cost-Effective
No Idea

Performing

2% 8%
42%
16%
32%

Fig : 1.19
-The next part was regarding the brand association in which people were
given different product categories to associate different companies with
given product category.

ICICI PRUDENTIAL
IDBI FEDRAL
BAJAJ ALLIANZ
4% 6%

BHARTI AXA
LIC

4%
76% 10%

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Brand equity quantification

Factors

LIC
I
D
B
I
F
E
D
E
R
A
L

Brand response
Product relevance

3.74

4.03

3.54

3.26

Informative

4.66

4.03

Easy to access

4.32

3.98

Easy and quick payment

4.46

3.83

Detailed

4.28

3.6

Brand Image
Agent information an policy
contract
Brand Relationship (online
service)

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Factors

LIC

IDBI
FEDERAL

Customer friendly

3.88

3.99

Quick response

3.24

3.74

Easy to reach

3.6

3.57

Knowledgeable staff

3.16

3.51

Simple redressal system

3.18

3.56

Better return on investment

4.66

4.54

Same return on investment

4.34

3.62

Flexible policy

4.14

Wont change company at all

2.64

2.85

3.08

3.33

Brand Relationship
(customer care)

Product substitutability

Perceived brand quality

Performance experience

- Now for potential customer the brand equity score comes out to be-

Factors
Brand awareness
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LIC

IDBI FEDERAL

Familiarity

4.54

2.74

3.82

2.18

3.8

0.4

Brand image
Performance factor
Brand Association
Category association

Now on calculating the total of the brand equity score for the existing
and potential customers for the LIC and IDBI FEDERAL we found the
scores to be 73.08 for LIC while for IDBI FEDERAL it is 60.76. As in our
ranking order the weightage was given highest to the 5 ranking while
lowest to the 1 ranking. The calculation was made like for eg.
1- customer friendly 38- 76%

-> 1*.76= .76

2- quick response 4- 8%

-> 2*.08= .16

3- easy to reach -2 4%

->3* .04= .12

4- knowledgeable staff-3- 6%

-> 4*.06= .24

5- simple customer redressal system- 3- 6 % -> 5*.06= 0.3

So the brand equity score comes out to be - .76, .16, .12

CONCLUSION
This research is about the brand equity and its impact on sales. Its about measuring the
brand equity and then calculating its impact. This research depends on the questionnaire to
collect the data. The questionnaire was designed such that it covered all the seven factors
which are taken in order to quantify the value of the brand equity. This research is designed
in the way that it will quantify the brand equity value for the existing customer of IDBI
FEDERAL and LIC as well as for the potential customers. This project is about the
brand equity of the insurance company, which is what factors are there
which makes the brand equity for this company and what is their impact
32 | P a g e

in insurance perspective. Thus in the nutshell it will give the effect which
the IDBI Fedral company is having of its brand equity on its sales.
In this project the focus is on the customer based brand equity model. As
per Kevin Lane Kellar brand equity is the differential effect of knowledge
of brand on customers to the marketing aspects. The factors which are
responsible for the brand equity are past experiences, perception,
information. Brand equity is composed of brand image which is what
image of the brad a customer has based on the past experiences of itself
or of others, second is brand knowledge which is the major part as for
having any perception one should have full knowledge of that particular
subject and that is where brand knowledge comes into play. Third comes
the brand perception it is the thought or hypothesis in the minds of
customers about the working of a product or a company. As this project is
dealing with a service sector company customer relationship with
company is a major factor here which decides the perception a customer
will have about the company. Fourth is the brand substitutability, which is
specially considered for this project it determines the level to which a
customer can substitute its brand with other brand if that brand is
unavailable.
Out of the eight factors which were selected for this research to quantify
the brand equity value. Market leader LIC was used as a control
quantified brand equity score to compare the level of brand equity of IDBI
FEDRAL with the sales. Out of the all factors only brand image was the
factors of brand equity in which IDBI FEDERAL came out victorious
against LIC which is the market leader as discussed earlier. Brand
awareness is the factor were IDBI FEDERAL lacks a lot.
So thus through the result it can be say that brand equity is not a soul
factors, its composed of many elements and it is made by thriving and
exploring on these mentioned factors, and then that has the direct
impact on sales because brand equity impact is the impact on the minds
of the custom

Recommendation
1) IDBI FEDERAL needs to improve its brand awareness that was the first straight outcome
which came out of the research

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2) It was found in this research that workplace and television commercial are the two ways
through which information flows which makes people aware about the products, so IDBI
FEDERAL can use these mediums in better way to increase their share of brand awareness.
3) In the questionnaire about 56% people said that their insurance company should be reliable,
means reliability is the major factors to be considered for the insurance companies.
4) It was found that majority of people consider IDBI FEDERAL as a company which provides
relevant products. A total of 36% people thought that. So IDBI FEDERAL should consider to
have an approach to increase its reliability, so that majority of customer can consider IDBI
FEDERAL.
5) It was found in this research that 53% people agreed that they can switch to the new brand
and product if they are given flexibility in product and options of different products.
6) Currently, IDBI FEDERAL is having only 11 products while the LIC who is the market
leader in the insurance sector is having 53 different products.
7) According to this research about (23-28)% people use the online service of their insurance
company. With the increasing mobile penetration nearly (5-6)%, IDBI FEDERAL should
introduce its mobile application.
9) According to our brand equity score IDBI Federal got better score in customer care and
service experience than LIC. IDBI Federal should use this better customer care service
experience to market itself.
10) This company should use digital media specially TVC and online ads. ( YouTube
commercially) to show the better customer experience its providing to whole family and
generations.

LIMITATIONS
1) Field work limited only for a small geographical area due to time and
resource constraints.
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2) Respondents may not provide accurate and true information for the
surveys which may lead to a variation in consumer responses.
3)Chances of biasing and non- responsive error exists.
4)This research work does not reflect the opinion of rural area where
there is low internet penetration.

Reference
Business Maps of India: India Business Directory (1999,
August).Insurance industry.
Retrieved April 12, 2011, from Maps of India website:

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 http://business.mapsofindia.com/insurance/
Carol Holding. (2004, February 2004). Managing brand equity in
rapidly changing markets.
Retrieved April 12, 2011, from holding website:
http://www.holding.com/articles/articles8.html
Economic Times. (2007, July 31).In search of brand equity. Retrieved
from:
http://articles.economictimes.indiatimes.com/2007-0731/news/27683069_1_brand-equity-brand-finance-brand-asset
Insurance in India. In Wikipedia. Retrieved April 12, 2014,
from http://en.wikipedia.org/wiki/Insurance_in_India.
Insurance Regulatory and Development Authority. (1999,
August).IRDA.
Retrieved April 12, 2011, from IRDA website:
http://www.irda.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?
page=PageNo4&mid=2.
http://www.marketingprofs.com/articles/2010/3756/how-to-get-yourmessage-heard-in-a-crowded-market#ixzz1JGjm4VH8
Kevin Kale Keller.(2009). Strategic Brand Management: Building,
Measuring and Managing Brand Equity. Pearson Education
www.iseg.utl.pt
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 www.ibef.org
http://jgateplus.com

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