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PolicyBazaar to spend Rs 80-100 crore on marketing this financial year

PolicyBazaar to spend Rs 80-100 crore on marketing this financial year

Author | Sarmistha Neogy | Friday, Jul 24,2015 10:17 AM

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PolicyBazaar to spend Rs 80-100 crore on marketing this financial year

Insurance website PolicyBazaar has roped in comedian Kapil Sharma in their latest ad which has been conceptualised by Lowe Lintas. There are 3 TVCs, the first one which is about motor insurance is already out and two others, on term insurance and Paisa Bazaar.com will be launched over a period of 4 weeks. The company has earmarked a marketing budget of Rs 80-100 crore which it will spend over the year.

Watch the ad here:

Media Spends:

Commenting on allocation of media spends, Naveen Kukreja, Chief Marketing Officer, PolicyBazaar, & Managing Director, PaisaBazaar.com  said, “Our marketing budget will spread across offline and digital mediums, highlighting the core offering that makes PolicyBazaar special, ‘Compare. Buy. Save’. We will be focussing on TV and digital for this campaign. Like always, the major chunk of the marketing spends will be skewed towards TV and the rest towards digital. For this campaign around 85% of our spends is on TV and 10-15% will be on digital .In the past, we have tried experimenting with other mediums as well, like radio and outdoor, but being an e-commerce site, we are able to measure better on TV and it gives us a better ROI.  It is not that we are averse to the other mediums, but TV works better for us. Also Kapil’s brand of humour comes out prominently in this medium.”

Campaign Insights:

Speaking on why the brand decided to bring on board Kapil Sharma, Kukreja highlighted that, “Last year, two of our campaigns did very well, one was ‘Ullu Mat Bano’ and the other was ‘Suhasini Mulay’s campaign which highlighted on comparing policies. As a category, we are boring and complex and two things which have always worked for our brand is simplicity of communication and humour. Research showed that people were associating us with the Ullu campaign and from Suhasini’s campaign, the idea of wasting money was being talked about. Therefore, wanted a face who would do justice to all the points for which people have started associating us with. Also we were clear that we will go by the ‘idea and the celebrity’ route instead of the ‘celebrity and the idea’ angle. So when Lowe Lintas came with this idea of marrying ‘ullu’ and ‘thullu’, the only name we could think of was of Kapil Sharma. Being a mass icon, he has a deep emotional connect with the consumer which we wanted to make best use of through a witty yet thought provoking advert.”

Shift in Brand Philosophy:

The company has shifted its brand philosophy from “Stop. Compare. Save” to “Compare. Buy. Save” in its current campaign. Elaborating on this, he pointed out that, “Over the years we have established ourselves as a site for comparison and research showed that people come to our site for comparison but they go and buy it from somewhere else. We wanted to tell people that if you are comparing then might as well go one step further and buy it from us as well, because it is a seamless process. Therefore, we wanted to establish ourselves and tell the consumers that we are an overall portal for both comparing and buying. So this shift from ‘Stop. Compare. Save’ to ‘Compare. Buy. Save’ is a very subtle yet a logical one.”

Challenges & Opportunities in the online insurance space:

According to Kukreja, the two main challenges in this space are, there is simple inertia, which is how to convince the customers to spend few minutes more before he or she goes to buy a policy. Till today, people find it easier to pick up the phone and call an agent, because they trust them more with these. Secondly, the reason behind this trend is because in India we have the tendency to trust the other human being more than anything else. This arises because of the lack of understanding in this space and also people are scared of this category because it is too complex. So assigning the work to agents is like letting someone else handle the complexity on my behalf.

“The opportunity here is to convince these people to spend little more time with our portal and we will do the complex part of the work, like figuring out the right metrics on which to compare. Our aim will be to try and simplify the process by making it easier, and giving them more options, and thereby allowing them to save some money. Also digital in the insurance sector has been growing very rapidly, and we have been growing at a rate of 100% in the last three years. However, even though with 100% growth rate, digital insurance is a very small portion of the overall insurance industry. Thus, there is huge headroom for digital insurance to grow,” he cited.

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