How can marketers learn from LIC’s IPO marketing strategy?
The buzz surrounding LIC’s upcoming IPO is growing day by day. As India’s largest insurer, the public company plans to dilute 5% of its stake via an offer to sell (OFS). Setting the stage for the upcoming IPO, LIC also released new guidelines that provide value-added benefits to policyholders and company-associated employees. The insurance giant, which is currently 100% government-backed, is moving ever further into the digital landscape with its forward-thinking marketing strategy.
Leverage localized presence
LIC has become a household name in India, owing to its presence in the market for around 65 years. One of their main strategies has always been to instill a localized presence by penetrating even into the rural pockets of India. With approximately 286 million policies, LIC has many policyholders in both urban and rural populations. LIC had launched several campaigns targeting local individuals, such as the television campaign ‘Plan Banate Raho, Zindagi Sajate Raho’ centered on the importance of life insurance in the life of a commoner.
Coupled with its extensive network of branches and agents, LIC’s marketing initiatives have also been successful in expanding its pool of policyholders. Leveraging the localized presence of approximately 29 million policyholders, the company has allocated ten% of its total shares for them. This new initiative is appreciated by existing policyholders, encouraging them to read the current LIC valuation, assess the current market scenario and follow the latest updates, which may boost the participation of individuals in the IPO. .
Prepare through newspaper messages and advertisements
As the IPO deadline approaches, the digital world is full of advertisements and information about the long-awaited IPO. Last month, LIC’s front-page newspaper ad titled “It pays to be prepared in life” paved the way for the investment community. To spread the word at the individual level, LIC also sends SMS to its policyholders and agents. This multi-pronged marketing technique has successfully alerted millions of policyholders, enticing them to own a stake in India’s largest insurer.
By publishing advertisements in the newspapers, LIC set out a set of rules and regulations, guiding potential investors to prepare for the IPO. Building on the momentum, the announcement highlighted everything required – Demat account, PAN verification by February 22, and benefits as well as eligibility for the insured reservation portion, among others. Addressing policyholders through their marketing plan, LIC has undoubtedly captured the attention of the general public. Their multi-pronged marketing campaign has been instrumental in attracting the interest of individual investors. Since the day of the announcement, the number of queries to check their booking eligibility has skyrocketed.
Since the submission of the Draft Red Herring Prospectus (DHRP), LIC India has been creating waves for the country’s most anticipated IPO. Whether it’s reaching policyholders via text message or placing advertisements in newspapers, the company spares no effort to encourage retailer participation. As a local and well-known brand throughout the country, LIC has managed to attract attention and attract attention through its marketing strategy aimed at a specific target group, policyholders. Suffice to say that it draws a revolutionary roadmap for the next public issues.
The opinions expressed above are those of the author.
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