Over the past decade the insurance sector in India has witnessed an upsurge in advertising. With the players increasing in the Indian life insurance space it hasn’t been an easy task for marketers to differentiate and make their products stand out in the clutter. Before 2000, LIC was the only player around and life insurance offerings were limited and viewed as a tax saving necessity. Today, one has agents, banks posing as bank assurance partners, NGOs and self-help groups for rural sectors, telemarketing, direct mailing and Internet banking. Current estimates put the insurance industry’s size at about Rs 68,000 crore; using current growth rates, which have been running at roughly 120 per cent a year over the past three years, the size of the industry is expected to be around Rs 2,40,000 crore by 2010. There are all sorts of financial products, ranging from children’s plans and pension plans to endowment/ savings plans. There is a variety of customized products with riders for disability, critical illness and so on.
There is a sudden boom in advertising by insurance companies. The life insurance industry has become very competitive with numerous private players competing in the market. Customers have become discerning today even towards financial services. An average consumer can recall 3-4 brands. Hence it is very important to be visible in the target market.
The most noticeable trend is that a lot of advertisers are shifting away from brand advertising to product advertising. Secondly, the intensity in advertising is making the industry innovate and experiment with its choice of media. Also, as marketers realize the importance of engaging meaningfully with the consumers, consumer activations have begun to demand a more thoughtful approach.
Internet and Direct marketing are expected to play a big role in sales of life insurance. Digital media like the Internet and mobile would become significant in the coming years. Life insurance providers are very bullish on the use of the Internet. Along with the usual banners and pop-ups a new trend of viral marketing and games, incorporated with life insurance messages has been successful for insurance providers. Max New York Life in concert with Zapak.com used this technique to generate leads. Insurers are also using social networking sites like Facebook to popularize its insurance products. People generally have difficulty understanding insurance products. Such branded games make it simple for users to retain the key message as well as product attributes, in a fun-filled manner. It helps in getting attention of young customers in a very simple and fun way, to convince them about the need for retirement income planning right from a young age. With the growing use of digital media, such innovations work well to engage with consumers. Also to retain customers, insurers are launching customer portals that will help them to get information relating to the status of his policy, the amount of loan he can get against the policy and download forms that he requires to start another policy among others facilities. The customer would also be able to use the portal to deposit premium and details about change of address
Direct marketing also allows a more customized approach. Worldwide, insures are using more of direct marketing to target ethnic groups. New York Life set up a cultural marketing division to have better targeted communication to African-American, Asian/Indian and Chinese community. With the African American community they tried to get the agents to connect to the community. New York Life also holds seminars in neighborhood churches on topics like life insurance, annuities, long-term care and college savings plans. To date, more than 1,000 people have attended the events, which always have agents on hand to answer questions and give out materials. A Web site aimed at this segment debuted in March. The site includes an education center, where visitors can search for information based on specific life events (like a new baby, a death in the family or the start of a new business) or financial goals (such as paying for a child's education, accumulating retirement assets or managing taxes).
In India, insures use below the line activities to gain entry to a customer’s house. The marketers are pursuing mall activities, RWA activities and school activities. Activities like cooking classes in a RWA or art competitions in schools are highly popular. Tying up with retail and department chains is also common. Usually one finds an insurance kiosks in any of the retails chains. These activities generally end up yielding very good and hot leads. Insurers are also tying up with rural initiatives like Subhiksha and E-Chaupal to sell customized products to hard to reach customers. This way they get to piggyback on the extensive distribution network of the retailers and increase their reach.
The Indian market though is highly diversified, unites in believing that they are financially stable. In a recent survey by NCAER close to 90% of the people believed wrongly that their futures are secure. So the first challenge for life insurance providers in India is to evangelize the population of India to the need for insurance. As one life insurance company correctly points out “Musibatein bata ke naheen aati”.
Thursday, July 2, 2009
What is your Brand's Cool Quotient?
I’m of the firm belief that every marketer thinks that his or her brand is COOL irrespective of the category, the product or the TG. But we all know that’s not true.
Some brands are and others just don’t have a clue.
So which brand is really cool and who ultimately determines what is cool? The trendsetters? The marketers?
What does it take for a product or category to position itself as the ultimate arbiter of cool?
Being as cool as I am, I’m going to go out and give you my hypothesis of ultimate coolness and then it is for you to judge your brand’s COOL QUOTIENT.
But I’m not going to attempt to define it. Because as soon as you think you have defined it, it just isn’t cool anymore! Cool is not an easily definable formula-if it was every brand would be trying to harness and replicate that formula.
One just has a perception of cool. It’s meaning and demeanor goes beyond words.
You can tell when a song is cool or not. You can look at ads and shoes and tell if they are happening. Over the years you can only hope to develop a sense of cool such that you know when you see it.
COOL IS ALLUSIVE:
Attempting to capture cool is a trap. It means everything and nothing at once. Cool is allusive, mysterious and indefinable, it’s meaning perpetually shifting to accommodate individual perceptions.
A throwaway word that was once used to merely describe an individual’s cultural status (he or she is cool) or an object’s worth (this phone is cool) has acquired new dimensions.
It has evolved from the fringes of the society to the mainstream.
A grandson finds his grandfather’s cane cool, teenager finds the packaging of her multi vitamin bottle cool, and father buys stocks in a company because his grandson says it’s cool.
A term securely nestled among the larger categories like cool SUVs, cool babes, and cool gadgets has now shifted to dominate our daily lives in ways we have yet to thoughtfully consider.
COOL IS REMOTE:
Cool is exclusive, the opposite of mass. It thrives on the attitude “If your neighbors are in on it, it can’t be cool”. It’s morphed into gadgets, technology, cars, person, music, or party accessible to few but coveted by many.
This is where the new trends of individual designs, customization and personalization is getting a foothold. The minute everyone has the same gadget, you have to admit that they are no cooler than the person around.
COOL IS ANTI-CONVENTIONAL:
Cool is like pretty much telling the world that you have decided to excuse yourself from the predictable and the traditional. But here in surfaces the contradictory nature of cool.
Coolness actually follows the conventional consumer cycle of new becoming quickly obsolete and retro the most valuable commodity.
Here is why the knick knacks and hand me downs sold in trendy, junky shops are oh -so –cool. They have managed to become cool by liberating themselves from the stigma of consumerism and the tyranny of brand new.
COOL IS DYNAMIC:
The term cool seems to have originated among jazz musicians in the 1940’s. But it was only legitimized and recognized as a potent phrase in the 1950’s. The post world war 2 era captured James Dean’s rebellious image in ‘Rebel without a cause’ as the ultimate epitome of cool. The flamboyant charade of toughness and authority, the brooding virility, the studied hip ness and the ‘don’t mess with me’ poutiness stayed for long as the ultimate symbol of cool.
And since then every decade has had it’s versions of cool. But what is relevant is that even though coolness varies between generations, there are constants upon which varying compositions are based. Like ‘hip’is constant whereas variables would be evolving fads and slang.Similarly the last version of cool does not affect the previous version-each version has a life of it’s own. No style will make another style wrong and that’s what makes it dynamic and brings me back to my first point- COOL IS ALLUSIVE. So how do you begin to nail it down?
Some brands are and others just don’t have a clue.
So which brand is really cool and who ultimately determines what is cool? The trendsetters? The marketers?
What does it take for a product or category to position itself as the ultimate arbiter of cool?
Being as cool as I am, I’m going to go out and give you my hypothesis of ultimate coolness and then it is for you to judge your brand’s COOL QUOTIENT.
But I’m not going to attempt to define it. Because as soon as you think you have defined it, it just isn’t cool anymore! Cool is not an easily definable formula-if it was every brand would be trying to harness and replicate that formula.
One just has a perception of cool. It’s meaning and demeanor goes beyond words.
You can tell when a song is cool or not. You can look at ads and shoes and tell if they are happening. Over the years you can only hope to develop a sense of cool such that you know when you see it.
COOL IS ALLUSIVE:
Attempting to capture cool is a trap. It means everything and nothing at once. Cool is allusive, mysterious and indefinable, it’s meaning perpetually shifting to accommodate individual perceptions.
A throwaway word that was once used to merely describe an individual’s cultural status (he or she is cool) or an object’s worth (this phone is cool) has acquired new dimensions.
It has evolved from the fringes of the society to the mainstream.
A grandson finds his grandfather’s cane cool, teenager finds the packaging of her multi vitamin bottle cool, and father buys stocks in a company because his grandson says it’s cool.
A term securely nestled among the larger categories like cool SUVs, cool babes, and cool gadgets has now shifted to dominate our daily lives in ways we have yet to thoughtfully consider.
COOL IS REMOTE:
Cool is exclusive, the opposite of mass. It thrives on the attitude “If your neighbors are in on it, it can’t be cool”. It’s morphed into gadgets, technology, cars, person, music, or party accessible to few but coveted by many.
This is where the new trends of individual designs, customization and personalization is getting a foothold. The minute everyone has the same gadget, you have to admit that they are no cooler than the person around.
COOL IS ANTI-CONVENTIONAL:
Cool is like pretty much telling the world that you have decided to excuse yourself from the predictable and the traditional. But here in surfaces the contradictory nature of cool.
Coolness actually follows the conventional consumer cycle of new becoming quickly obsolete and retro the most valuable commodity.
Here is why the knick knacks and hand me downs sold in trendy, junky shops are oh -so –cool. They have managed to become cool by liberating themselves from the stigma of consumerism and the tyranny of brand new.
COOL IS DYNAMIC:
The term cool seems to have originated among jazz musicians in the 1940’s. But it was only legitimized and recognized as a potent phrase in the 1950’s. The post world war 2 era captured James Dean’s rebellious image in ‘Rebel without a cause’ as the ultimate epitome of cool. The flamboyant charade of toughness and authority, the brooding virility, the studied hip ness and the ‘don’t mess with me’ poutiness stayed for long as the ultimate symbol of cool.
And since then every decade has had it’s versions of cool. But what is relevant is that even though coolness varies between generations, there are constants upon which varying compositions are based. Like ‘hip’is constant whereas variables would be evolving fads and slang.Similarly the last version of cool does not affect the previous version-each version has a life of it’s own. No style will make another style wrong and that’s what makes it dynamic and brings me back to my first point- COOL IS ALLUSIVE. So how do you begin to nail it down?
The 3 stages to love
It’s Valentines and you can smell love in the air. The extended winter chill has not been able to dilute the enthusiasm of the lovebirds.
The Valentine’s Day buzz is loud and clear on college campuses, malls, hotels and clubs at least in the metropolitan cities.
St Valentine’s day has become extremely popular in India and with each passing years the euphoria only seems to increase.
Newspapers and magazines are full of stories with entire supplements devoted to the subject. From finding love on the net to youngsters learning guitar to woo their girlfriends, from extravagant gift ideas to special valentine day hotspots… media is doing it’s job of giving all possible tips and help for that perfect valentine date.
Even staid adults are being sucked in this barrage of marketing; you log into any form of media and find it full of Valentine’s Day quotes, recipes, facts and even clip art!
This article is not about questioning the trend…Valentines Day is here to stay and
as time goes by it will only percolate down to smaller cities and towns.
It’s also not about being a moral policeman and accusing western sabotage on our culture.
Valentines Day instead provides a perfect opportunity to explore the changing definition of love and romance with respect to today’s generation.
The years gone by show depth of true romance when love was against all odds, marriage next to impossible and sacrifice imminent. Modern era, newer thoughts, a shrinking globe and a broader outlook have changed the concept of love.
Living in an e-age, romance has come a long way from the days of Romeo-Juliet and our very own Laila-Majnu.Today’s generation can find love at the click of a mouse. “Love at first sight” is “Love @first site”. Anything is possible and distance certainly is not a hindrance. Love as an expression has a wider expression than ever before.
The lovers can send love quotes and lyrics with bouquets of red roses, heart shaped chocolates and balloons, specialized gifts available in every second shop or on the internet without adult or parental intervention and guidance. The place and time of delivery of gifts and flowers too is usually pre-determined and prior instructions given.
So what is missing in the love stories of this decade? Are these relationships as romantic and enduring as the traditional relationships of yesteryears?
The psychology of love clearly differentiates between “falling in love” and “being in love”.
The famous Psychologist Carl Jung said this about falling in love:
“We fall in love against our will. Our hearts suddenly go off on crazy paths of their own, leaving our cool collected minds aghast and struggling vainly to maintain law and order”.
Whereas being in love is the stage when blinders come off and love can be looked at more as a choice.
There are essentially three stages to love:
Stage1: Lust.
Stage2: Attraction.
Stage3: Attachment.
When we fall in love the first two stages are at play. But attachment is what takes over the attraction if the relationship is going to last. Attachment is the longer lasting commitment and is the bond that keeps couples together for lifetimes. This is called being in love.
Teenagers today are happily falling in love at the drop of a hat but they are also falling out of it probably at the same pace if not faster. They find the excitement and newness of the infatuation stage fun and thrilling.
They are not able to differentiate between falling and being in love. The big aspect missing in the great love stories of this decade is probably the dedication and sincerity of Romeo’s love for Juliet or his perseverance. . Relationships have become more casual and easygoing. They are mostly about fun and flirtation. Many teenagers are in fact dating as a way to fit in with the societal scene. They are just happy because they are not single and have someone to hang around with.
They find nothing wrong in a relationship that’s just based on attraction but are not ready to have deeper emotional ties.
This is what prevents relationships to graduate from the attraction to the attachment phase. The connection does not deepen to include qualities like commitment and loyalty, the cornerstone of the greatest of all great historical love stories.
Love has come a long way since the days of Laila and Majnu but the greatest ode to St. Valentines on this day would be to make the relationships long-lasting, enduring and resilient.
The Valentine’s Day buzz is loud and clear on college campuses, malls, hotels and clubs at least in the metropolitan cities.
St Valentine’s day has become extremely popular in India and with each passing years the euphoria only seems to increase.
Newspapers and magazines are full of stories with entire supplements devoted to the subject. From finding love on the net to youngsters learning guitar to woo their girlfriends, from extravagant gift ideas to special valentine day hotspots… media is doing it’s job of giving all possible tips and help for that perfect valentine date.
Even staid adults are being sucked in this barrage of marketing; you log into any form of media and find it full of Valentine’s Day quotes, recipes, facts and even clip art!
This article is not about questioning the trend…Valentines Day is here to stay and
as time goes by it will only percolate down to smaller cities and towns.
It’s also not about being a moral policeman and accusing western sabotage on our culture.
Valentines Day instead provides a perfect opportunity to explore the changing definition of love and romance with respect to today’s generation.
The years gone by show depth of true romance when love was against all odds, marriage next to impossible and sacrifice imminent. Modern era, newer thoughts, a shrinking globe and a broader outlook have changed the concept of love.
Living in an e-age, romance has come a long way from the days of Romeo-Juliet and our very own Laila-Majnu.Today’s generation can find love at the click of a mouse. “Love at first sight” is “Love @first site”. Anything is possible and distance certainly is not a hindrance. Love as an expression has a wider expression than ever before.
The lovers can send love quotes and lyrics with bouquets of red roses, heart shaped chocolates and balloons, specialized gifts available in every second shop or on the internet without adult or parental intervention and guidance. The place and time of delivery of gifts and flowers too is usually pre-determined and prior instructions given.
So what is missing in the love stories of this decade? Are these relationships as romantic and enduring as the traditional relationships of yesteryears?
The psychology of love clearly differentiates between “falling in love” and “being in love”.
The famous Psychologist Carl Jung said this about falling in love:
“We fall in love against our will. Our hearts suddenly go off on crazy paths of their own, leaving our cool collected minds aghast and struggling vainly to maintain law and order”.
Whereas being in love is the stage when blinders come off and love can be looked at more as a choice.
There are essentially three stages to love:
Stage1: Lust.
Stage2: Attraction.
Stage3: Attachment.
When we fall in love the first two stages are at play. But attachment is what takes over the attraction if the relationship is going to last. Attachment is the longer lasting commitment and is the bond that keeps couples together for lifetimes. This is called being in love.
Teenagers today are happily falling in love at the drop of a hat but they are also falling out of it probably at the same pace if not faster. They find the excitement and newness of the infatuation stage fun and thrilling.
They are not able to differentiate between falling and being in love. The big aspect missing in the great love stories of this decade is probably the dedication and sincerity of Romeo’s love for Juliet or his perseverance. . Relationships have become more casual and easygoing. They are mostly about fun and flirtation. Many teenagers are in fact dating as a way to fit in with the societal scene. They are just happy because they are not single and have someone to hang around with.
They find nothing wrong in a relationship that’s just based on attraction but are not ready to have deeper emotional ties.
This is what prevents relationships to graduate from the attraction to the attachment phase. The connection does not deepen to include qualities like commitment and loyalty, the cornerstone of the greatest of all great historical love stories.
Love has come a long way since the days of Laila and Majnu but the greatest ode to St. Valentines on this day would be to make the relationships long-lasting, enduring and resilient.
A marketer's view to Elections
Electoral alliances and political agendas aside, there was something about the Congress campaign that caught the public imagination. Its campaign tune, ‘Jai Ho’, matching its central slogan ― ‘Aam Admi Ke Badthe Kadam, Har Kadam Par Bharat Buland’, offered optimism, inclusion, association with all.
In contrast, the Left campaign appeared to be a series of complaints and cribs. The BJP (Bharatiya Janta Party) campaign was hinged on ‘Kushal Neta, Nirnayak Sarkaar’ and focused principally on governance and security, which are not issues with which people can readily identify.
‘Aam Aadmi’ is a phrase that works each time, every time, in a country where the common man’s loudest expression of his views is the pressing of the (EVM) button. The Congress’ marketing revolved around talking to the common man about his issues in the sharpest manner possible. The result was communication which people could relate to.
The BJP, on the other hand, was present everywhere, but didn’t seem to make the right pitch to the right person. Was India looking for a neta who is strong? Yes. Does the country view the Government as crucial? Of course it does. These are things that the electorate take for granted from its leaders. But the common person identifies with the government only through knowing what the government does or would do for him or her.
Further, the ‘Majboot Neta’ rhetoric was an open invitation for the Congress to remind people of Kandahar, where Advani’s leadership was shown to be not quite strong enough.
From a marketing communications angle, it was interesting to see how, on the whole, positive messages won the day in terms of dominating the debate, even if these did not win every seat.
It is a basic tenet of brand communications that affirmation evokes a positive response. Negative campaigns rarely work, least at times of depression.
Every situation presents problems and opportunities ― in responding with solutions to those situations (which is, after all, what an election campaign purports to do), the branding exercise, consciously or inadvertently, focuses on either.
Where the Congress reminded people about opportunities seized and offered, the BJP and the Left talked about problems. The BJP offered promises but no solutions. At a time when economic crisis was at the top of everyone’s minds, such messages fell far short of expectations. It’s not surprising that the vote base for the Congress (and not just the number of seats) improved so dramatically.
It zeroed in on identifying specific target segments within its overall audience, identified issues that had immediate appeal to these segments and projected a number of credible leaders. The messaging about youthful leadership and young India was fresh, echoed a truth that everyone knows (in a country where 40 per cent of the population is below 25 yrs) and has never heard addressed by political leaders in such a focused, sincere manner.
On the other hand, there was projection of experience and effective delivery, especially in the person of Dr Manmohan Singh. The country saw ― and sees ― him as effectively proactive in dealing with the latest terrorist attack in Mumbai and addressing the issues arising from the global recession. And it is still impressed with the way he dealt with what is commonly seen as the constant carping of the Left ― patient over several differences through four years, ending with being prepared to risk losing his ‘seat’ of power rather than bowing before pressure on an issue that few people understood and most found unreasonable, faulting the Left.
Over the nuclear issue, the Nandigram and other issues, the Left took the ‘high’ road, failing to explain, and even failing to understand people’s concerns and interest. It lost its audience even before the election campaign took off.
The BJP also seems to have missed the lessons of its debacle in 2004. It remains unsure of its target audience, presuming a popular obsession with religion over livelihood, terrorism over sustainable development. Its campaign on strong leadership, governance and security, zeroed in on terrorism and insufficiently addressed development.
Projecting Narendra Modi as a future head of state would not have gone down well with the vast majority of peace loving Indians, who view him with suspicion after the Gujarat riots of 2002. No brand would want to have brand ambassadors who have a cloud of grey hanging over their heads.
Further, any publicity is not good publicity as the Varun Gandhi episode showed. Compare the BJP’s defence of Varun Gandhi’s reported speech with the Congress’ strategy of withdrawing Sajjan Kumar and Jagdish Tytler almost immediately after protests about their candidature.
After seeing itself finishing second to a young and energetic Congress for the second time in five years, it is time for some introspection for the saffron party, not least in terms of the way it marketed itself. There is no doubt that brand BJP suffered from quite a few bad marketing decisions.
Running an election campaign is about gauging the pulse of the electorate. Just like creating a great marketing campaign. The brand which has its ears to the ground always wins.
In contrast, the Left campaign appeared to be a series of complaints and cribs. The BJP (Bharatiya Janta Party) campaign was hinged on ‘Kushal Neta, Nirnayak Sarkaar’ and focused principally on governance and security, which are not issues with which people can readily identify.
‘Aam Aadmi’ is a phrase that works each time, every time, in a country where the common man’s loudest expression of his views is the pressing of the (EVM) button. The Congress’ marketing revolved around talking to the common man about his issues in the sharpest manner possible. The result was communication which people could relate to.
The BJP, on the other hand, was present everywhere, but didn’t seem to make the right pitch to the right person. Was India looking for a neta who is strong? Yes. Does the country view the Government as crucial? Of course it does. These are things that the electorate take for granted from its leaders. But the common person identifies with the government only through knowing what the government does or would do for him or her.
Further, the ‘Majboot Neta’ rhetoric was an open invitation for the Congress to remind people of Kandahar, where Advani’s leadership was shown to be not quite strong enough.
From a marketing communications angle, it was interesting to see how, on the whole, positive messages won the day in terms of dominating the debate, even if these did not win every seat.
It is a basic tenet of brand communications that affirmation evokes a positive response. Negative campaigns rarely work, least at times of depression.
Every situation presents problems and opportunities ― in responding with solutions to those situations (which is, after all, what an election campaign purports to do), the branding exercise, consciously or inadvertently, focuses on either.
Where the Congress reminded people about opportunities seized and offered, the BJP and the Left talked about problems. The BJP offered promises but no solutions. At a time when economic crisis was at the top of everyone’s minds, such messages fell far short of expectations. It’s not surprising that the vote base for the Congress (and not just the number of seats) improved so dramatically.
It zeroed in on identifying specific target segments within its overall audience, identified issues that had immediate appeal to these segments and projected a number of credible leaders. The messaging about youthful leadership and young India was fresh, echoed a truth that everyone knows (in a country where 40 per cent of the population is below 25 yrs) and has never heard addressed by political leaders in such a focused, sincere manner.
On the other hand, there was projection of experience and effective delivery, especially in the person of Dr Manmohan Singh. The country saw ― and sees ― him as effectively proactive in dealing with the latest terrorist attack in Mumbai and addressing the issues arising from the global recession. And it is still impressed with the way he dealt with what is commonly seen as the constant carping of the Left ― patient over several differences through four years, ending with being prepared to risk losing his ‘seat’ of power rather than bowing before pressure on an issue that few people understood and most found unreasonable, faulting the Left.
Over the nuclear issue, the Nandigram and other issues, the Left took the ‘high’ road, failing to explain, and even failing to understand people’s concerns and interest. It lost its audience even before the election campaign took off.
The BJP also seems to have missed the lessons of its debacle in 2004. It remains unsure of its target audience, presuming a popular obsession with religion over livelihood, terrorism over sustainable development. Its campaign on strong leadership, governance and security, zeroed in on terrorism and insufficiently addressed development.
Projecting Narendra Modi as a future head of state would not have gone down well with the vast majority of peace loving Indians, who view him with suspicion after the Gujarat riots of 2002. No brand would want to have brand ambassadors who have a cloud of grey hanging over their heads.
Further, any publicity is not good publicity as the Varun Gandhi episode showed. Compare the BJP’s defence of Varun Gandhi’s reported speech with the Congress’ strategy of withdrawing Sajjan Kumar and Jagdish Tytler almost immediately after protests about their candidature.
After seeing itself finishing second to a young and energetic Congress for the second time in five years, it is time for some introspection for the saffron party, not least in terms of the way it marketed itself. There is no doubt that brand BJP suffered from quite a few bad marketing decisions.
Running an election campaign is about gauging the pulse of the electorate. Just like creating a great marketing campaign. The brand which has its ears to the ground always wins.
Shooting for the stars
Don’t let the stars get in your eyes, don’t let the moon break your heart.
This lyrical warning sounded by an impassioned young lover to his beloved exemplifies life itself. We should be true at all times to people and ideas that we cherish in life. It is a promise and a commitment to those we hold dear. And our thoughts and actions must be in complete record, if we are to achieve our life goals.
An important area where we need to align our dreams and deeds is in the filed of personal finance. Most of you would have made some investments during the course of your working life. Are you sure they are in your absolute interest, immediate and long-term? Close to the half way mark of the financial year, take stock of your life and finances and realign your planning process to meet some of your most prized goals.
Financial planning is all about forward planning. In 2008, we have seen the best of times and the worst of times. Months after the Sensex hit a new high and a heartbreaking low, the equity market seems to have settled in a range and so have people’s nerves. You cannot look at the rear view mirror or be shortsighted by the challenges that confront the economy. If you are convinced The Wonder That Was India is now Incredible India, do not be the Cinderella who leaves her glass slipper behind at the midnight ball. When dawn comes, there may not be a Prince Charming knocking on your door and all you would be left with is the disappointment of a missed opportunity.
Life is a journey and before you embark on it, you have to finalize the destination. If you know where you are going, you can make arrangements beforehand, pack appropriately and take every step to ensure your stay is comfortable. Investment is like that. You need to decide your goals, prioritize your needs and take incremental steps to realize them. For every life goal, be it financial security, good health, child’s education or retirement, you need to book in advance.
The 5Ps of Pride and Prosperity
You want to protect your family from any eventuality, ensure a house above their heads, provide the children the best education and live your retirement years in comfort and harmony. The intention is fine but how many of you have created a roadmap to the future? What have you done to ensure a smooth journey down the uncertain path of life?
Financial Planning is the process of allocating savings to meet financial goals. Let us categorize these goals as Priorities and Pleasures. Though we are partial to the latter, our Priorities must always gain precedence, be it protection, progeny, property or pension
Protection
Every life is precious, every person irreplaceable. But things do not always go as planned. Death, disease or disability can strike without warning. You cannot be caught unprepared or without a contingency plan. Safeguarding your life and health is the smart strategy that you must set into motion at the earliest. You need to seize the moment and take the first of the many steps without any delay. Your family deserves the best at all times. You owe it to them.
Progeny
You love your children. They are your pride and joy. You want them to have the best of education and opportunities and will not spare any effort or expense to ensure they realize their full potential. You want to secure their future so they can fly free. Higher education, professional courses or unconventional careers, your children deserve every choice and chance. Money should never be an impediment in their life or in their growth. When it comes to children, nothing but the best will do. You are the only one who can make it happen.
Property
There is not a soul in the world who doesn’t want a house of one’s own. It is a dream and life goal; a big-ticket purchase that requires months of planning and years of salary. It is an exercise that requires zeal and patience and everyone who has bought a house would vouch for the satisfaction and accomplishment at the end of it. You do not have to wait a lifetime to live in your dream house. It is for you to transform an idea into an asset.
Pension
Retirement is an idea you want to implement in the thirties and reverse in the fifties. When you are young the world is for you to conquer. You live for today with no fear of tomorrow. But as more urgent needs take primacy, retirement planning is pushed to the backburner. It is not a wise thing to do. You should start planning for your retirement the day you start working so that you can reap the reward when you retire.
Pleasure
And when you have created a roadmap to the future, there will be no guilty pleasures but only dreams fulfilled. Sit back and enjoy your moments of leisure and indulge those ideas that you have been nurturing for a long time. Do what your heart desires, pander to your passions and find meaning in life. Go ahead, climb a mountain, sail the high seas, take an exotic holiday and spend a month teaching underprivileged children useful life skills.
Life Positive
Life is about following your dreams. Your happiness is as important as your responsibilities. Find a common ground and you will never have to trade one for the other. You can have it all.
The first step is to overcome the inertia and ignorance, and for some of you a fair degree of arrogance of outperforming everyone everywhere at all times. Get realistic, be smart and you will always be one step ahead of inflation, interest rates, economic cycles and euphoria. But always remember to align your portfolio to your risk profile and time horizon.
All of us desire a long life but our investment horizon is often short term. Many people keep postponing the investment process, waiting to accumulate a significant corpus before taking the first step. The point about long term investment is to get a start, even if it is a small one, allow that money to work for your and keep bumping up the amount to realize bigger goals. Remember, investment is about making life safe, meeting your life goals and maintaining your lifestyle. For a happy and happening life, your time starts now.
This lyrical warning sounded by an impassioned young lover to his beloved exemplifies life itself. We should be true at all times to people and ideas that we cherish in life. It is a promise and a commitment to those we hold dear. And our thoughts and actions must be in complete record, if we are to achieve our life goals.
An important area where we need to align our dreams and deeds is in the filed of personal finance. Most of you would have made some investments during the course of your working life. Are you sure they are in your absolute interest, immediate and long-term? Close to the half way mark of the financial year, take stock of your life and finances and realign your planning process to meet some of your most prized goals.
Financial planning is all about forward planning. In 2008, we have seen the best of times and the worst of times. Months after the Sensex hit a new high and a heartbreaking low, the equity market seems to have settled in a range and so have people’s nerves. You cannot look at the rear view mirror or be shortsighted by the challenges that confront the economy. If you are convinced The Wonder That Was India is now Incredible India, do not be the Cinderella who leaves her glass slipper behind at the midnight ball. When dawn comes, there may not be a Prince Charming knocking on your door and all you would be left with is the disappointment of a missed opportunity.
Life is a journey and before you embark on it, you have to finalize the destination. If you know where you are going, you can make arrangements beforehand, pack appropriately and take every step to ensure your stay is comfortable. Investment is like that. You need to decide your goals, prioritize your needs and take incremental steps to realize them. For every life goal, be it financial security, good health, child’s education or retirement, you need to book in advance.
The 5Ps of Pride and Prosperity
You want to protect your family from any eventuality, ensure a house above their heads, provide the children the best education and live your retirement years in comfort and harmony. The intention is fine but how many of you have created a roadmap to the future? What have you done to ensure a smooth journey down the uncertain path of life?
Financial Planning is the process of allocating savings to meet financial goals. Let us categorize these goals as Priorities and Pleasures. Though we are partial to the latter, our Priorities must always gain precedence, be it protection, progeny, property or pension
Protection
Every life is precious, every person irreplaceable. But things do not always go as planned. Death, disease or disability can strike without warning. You cannot be caught unprepared or without a contingency plan. Safeguarding your life and health is the smart strategy that you must set into motion at the earliest. You need to seize the moment and take the first of the many steps without any delay. Your family deserves the best at all times. You owe it to them.
Progeny
You love your children. They are your pride and joy. You want them to have the best of education and opportunities and will not spare any effort or expense to ensure they realize their full potential. You want to secure their future so they can fly free. Higher education, professional courses or unconventional careers, your children deserve every choice and chance. Money should never be an impediment in their life or in their growth. When it comes to children, nothing but the best will do. You are the only one who can make it happen.
Property
There is not a soul in the world who doesn’t want a house of one’s own. It is a dream and life goal; a big-ticket purchase that requires months of planning and years of salary. It is an exercise that requires zeal and patience and everyone who has bought a house would vouch for the satisfaction and accomplishment at the end of it. You do not have to wait a lifetime to live in your dream house. It is for you to transform an idea into an asset.
Pension
Retirement is an idea you want to implement in the thirties and reverse in the fifties. When you are young the world is for you to conquer. You live for today with no fear of tomorrow. But as more urgent needs take primacy, retirement planning is pushed to the backburner. It is not a wise thing to do. You should start planning for your retirement the day you start working so that you can reap the reward when you retire.
Pleasure
And when you have created a roadmap to the future, there will be no guilty pleasures but only dreams fulfilled. Sit back and enjoy your moments of leisure and indulge those ideas that you have been nurturing for a long time. Do what your heart desires, pander to your passions and find meaning in life. Go ahead, climb a mountain, sail the high seas, take an exotic holiday and spend a month teaching underprivileged children useful life skills.
Life Positive
Life is about following your dreams. Your happiness is as important as your responsibilities. Find a common ground and you will never have to trade one for the other. You can have it all.
The first step is to overcome the inertia and ignorance, and for some of you a fair degree of arrogance of outperforming everyone everywhere at all times. Get realistic, be smart and you will always be one step ahead of inflation, interest rates, economic cycles and euphoria. But always remember to align your portfolio to your risk profile and time horizon.
All of us desire a long life but our investment horizon is often short term. Many people keep postponing the investment process, waiting to accumulate a significant corpus before taking the first step. The point about long term investment is to get a start, even if it is a small one, allow that money to work for your and keep bumping up the amount to realize bigger goals. Remember, investment is about making life safe, meeting your life goals and maintaining your lifestyle. For a happy and happening life, your time starts now.
Lead Rural India or Bharat
The great Indian demographic pyramid has been sliced and diced in many ways by researchers and social pundits, off late the surge of consumerism has forced marketers and analysts to look at the magnanimity of what was once termed rural India. There is a growing emphasis on understanding the bottom end of the pyramid. Though data may create consumer segments for Bharat and new theories would emerge. While eager businesses are engaged in deep trenching, there is merit to observe and take a fresh approach to what most of us have surmised. “70% of India lives in her villages”. Yesterday’s approach seems to present the ever pressing need for more information, a better grasp, a bit more insight into Bharat.
To begin with, take a look at common man from Bharat, where the earnings are on a day to day basis, life moves from one day to the other. A pattern of everyday life, somewhere around the bread-line, we get drawn in by the paradox of debt and aspirations as it weaves the never-ending cycle of existence.
While micro-finance as a category is geared to create a mass movement of social change, it means addressing the very needs of those confronting the blurry line between happiness, responsibilities and earnings. Insurance and savings have made in-roads but have not yet grapsed that we are no longer agents with financial products for a distant dream, our role as a collective is to embark on a revolution that can captivate the imagination of all people in India.
Bharat has never been so ready to embark on a new beginning of the common man. Bharat today is soon becoming the cornerstone of financial independence of the individual. Bharat is morphing, it is shedding old skin for the new one and various clusters of individuals emerge:
The Repressed
The families that fall under this category account for 20% of india’s rural population. They have migrated from the villages to the cities in search of work and today have an average earning of under Rs. 1000 per month, this is a nuclear family residing spouse and kids, with almost no means to take care of the elders of the family. They have their own house which is kuchha or semi-pucca with one or two rooms and don’t have toilet or bathing facilities in-house. Some kids are able to fulfill primary schooling, while most of them drop-out to contribute to labour very early in life, with over 60% illiteracy this group is the lowest on ownership of products– even basic things like bicycle, fan and pressure cooker are out of their reach and means. Their lives being the most uncertain they try to find secure and stable means of earnings. They also are victims of circumstances between hopelessness and helplessness. They exist on the margins and can barely muster the minimum to survive a day at a time. This is an India that permeates our conscience but does not figure in our calculations.
The Reconciled
Here is an interesting group that seems to have accepted destiny and would never be able to see beyond it. MHI is between Rs. 1000 – Rs. 3000, unable to break away from the past, their inherited existence from the fore-fathers is the only reality. They account for an alarming 58%(33.5cr) of the rural population. They are mostly farmers or agricultural workers or unskilled labour, some have graduated to developing some skill or are into trade. Here too, like the former group the main unit of the family operates sans-elders. Majority of them have had primary education and some are fortunate to experience schooling in the middle years or have been assign to learn a technical skill. They are wary of life, worn down by the daily struggle and worried about the next unexpected event that will test their endurance. They are rooted in their village, as migrating to the city is not considered as an option. They own their houses, of which 50% have a home with one/two rooms with about 25% having third room with toilet or bathing facilities in-house. Average Ownership of basic products – bicycle (60%) & fan(40%). 30% also have a TV, though pressure cooker is low on the list of priorities. Given the current circumstances, they may send their sons to the nearby cities so as to better their own prospect in the future
The Resilient
This group is a mirror image of shining India, their hopes and aspirations add virbrancy to the great Indian dream. This is where the next revolution of India is brewing. Representing about 20% of the rural popln (11.4cr), they have acquired mid-level schooling (less than 9th std) or some high school education (30%).A third are farmers, a third are in service and the rest are skilled labour or into trade. Majority have their own pucca house with multiple rooms with about 25% having 5 or more rooms, 50% have toilet and bathing facilities in-house, 50% have nuclear families, some have nuclear family with elders and some are still bound by a joint family. Ownership of basic products is very high – 70% own a bicycle, a fan and 50% have a cooker. 60% also have a TV, 40% also have a LPG stove, 25% have a two-wheeler. With a monthly income between Rs.3000 – Rs.8000, they have taken many hard knocks and survived. They are pushing forward, migrating to urban areas in search of better opportunities for their children. Keen consumers, irregular savers and reluctant investors¾they want financial security and assured returns.
The Resurrected
The city migrant, they account for 2% of the rural population, they have had the opportunity to attend school at all levels, of which many have also been abe to go to college and become graduates. About 90% of them have a pucca house with multiple rooms , some houses are about 5 rooms big, with in house toilets and bathing areas. Large family size, under the patriarch symbolizes the strong family culture and deep roots in the village. There is enough affluence to purchase basic products. About 70% own a bicycle, fan and cooker. 80% also have a TV, 65% also have a LPG stove, 50% have an electric iron, 60% have a two-wheeler, 30% have a telephone, 35% have a refrigerator. The average monthly income is around Rs. 8,000. This group constitutes the Beneficiaries of the opportunities thrown up by the new economic order, they have been smart to monetize the land of their ancestors or become entrepreneurs. A subsidized higher education system has been the springboard of countless first generation success stories. A raised standard of living and an elevated social status, they are hungry for more. They leave their villages in pursuit of their dreams – move to their “city of dreams”, they are usually motivated by a friend or a relative who has migrated to the city and this slow but steady exodus to the big city is giving rise to the swelling migrant population in many metros. They begin their life on certain basics and slowly build a more secure base in the city as they go out and seek better opportunities for themselves. They are never deterred by failures; they are driven and are confident that they will make it thru the void and will be able to provide their children with opportunities to secure a better future.
Respect and Reassurance
Though the economic lens may paint rural India in vibrant hues, there is a need emerging to converge them as skill and living standards of these groups will be a major determinant of India’s future rate of economic growth. And growth begins inside the house and not outside. Driven by a myriad combinations of dreams and means armed with nothing but their own determination to overcome yesterday’s weakness, we may all pose ourselves a key question, how can we with our understanding of diverse economies, different life stages, with future gazing abilities, create value in this world where the realtiy and dreams seem to play hide and seek.
To begin with, take a look at common man from Bharat, where the earnings are on a day to day basis, life moves from one day to the other. A pattern of everyday life, somewhere around the bread-line, we get drawn in by the paradox of debt and aspirations as it weaves the never-ending cycle of existence.
While micro-finance as a category is geared to create a mass movement of social change, it means addressing the very needs of those confronting the blurry line between happiness, responsibilities and earnings. Insurance and savings have made in-roads but have not yet grapsed that we are no longer agents with financial products for a distant dream, our role as a collective is to embark on a revolution that can captivate the imagination of all people in India.
Bharat has never been so ready to embark on a new beginning of the common man. Bharat today is soon becoming the cornerstone of financial independence of the individual. Bharat is morphing, it is shedding old skin for the new one and various clusters of individuals emerge:
The Repressed
The families that fall under this category account for 20% of india’s rural population. They have migrated from the villages to the cities in search of work and today have an average earning of under Rs. 1000 per month, this is a nuclear family residing spouse and kids, with almost no means to take care of the elders of the family. They have their own house which is kuchha or semi-pucca with one or two rooms and don’t have toilet or bathing facilities in-house. Some kids are able to fulfill primary schooling, while most of them drop-out to contribute to labour very early in life, with over 60% illiteracy this group is the lowest on ownership of products– even basic things like bicycle, fan and pressure cooker are out of their reach and means. Their lives being the most uncertain they try to find secure and stable means of earnings. They also are victims of circumstances between hopelessness and helplessness. They exist on the margins and can barely muster the minimum to survive a day at a time. This is an India that permeates our conscience but does not figure in our calculations.
The Reconciled
Here is an interesting group that seems to have accepted destiny and would never be able to see beyond it. MHI is between Rs. 1000 – Rs. 3000, unable to break away from the past, their inherited existence from the fore-fathers is the only reality. They account for an alarming 58%(33.5cr) of the rural population. They are mostly farmers or agricultural workers or unskilled labour, some have graduated to developing some skill or are into trade. Here too, like the former group the main unit of the family operates sans-elders. Majority of them have had primary education and some are fortunate to experience schooling in the middle years or have been assign to learn a technical skill. They are wary of life, worn down by the daily struggle and worried about the next unexpected event that will test their endurance. They are rooted in their village, as migrating to the city is not considered as an option. They own their houses, of which 50% have a home with one/two rooms with about 25% having third room with toilet or bathing facilities in-house. Average Ownership of basic products – bicycle (60%) & fan(40%). 30% also have a TV, though pressure cooker is low on the list of priorities. Given the current circumstances, they may send their sons to the nearby cities so as to better their own prospect in the future
The Resilient
This group is a mirror image of shining India, their hopes and aspirations add virbrancy to the great Indian dream. This is where the next revolution of India is brewing. Representing about 20% of the rural popln (11.4cr), they have acquired mid-level schooling (less than 9th std) or some high school education (30%).A third are farmers, a third are in service and the rest are skilled labour or into trade. Majority have their own pucca house with multiple rooms with about 25% having 5 or more rooms, 50% have toilet and bathing facilities in-house, 50% have nuclear families, some have nuclear family with elders and some are still bound by a joint family. Ownership of basic products is very high – 70% own a bicycle, a fan and 50% have a cooker. 60% also have a TV, 40% also have a LPG stove, 25% have a two-wheeler. With a monthly income between Rs.3000 – Rs.8000, they have taken many hard knocks and survived. They are pushing forward, migrating to urban areas in search of better opportunities for their children. Keen consumers, irregular savers and reluctant investors¾they want financial security and assured returns.
The Resurrected
The city migrant, they account for 2% of the rural population, they have had the opportunity to attend school at all levels, of which many have also been abe to go to college and become graduates. About 90% of them have a pucca house with multiple rooms , some houses are about 5 rooms big, with in house toilets and bathing areas. Large family size, under the patriarch symbolizes the strong family culture and deep roots in the village. There is enough affluence to purchase basic products. About 70% own a bicycle, fan and cooker. 80% also have a TV, 65% also have a LPG stove, 50% have an electric iron, 60% have a two-wheeler, 30% have a telephone, 35% have a refrigerator. The average monthly income is around Rs. 8,000. This group constitutes the Beneficiaries of the opportunities thrown up by the new economic order, they have been smart to monetize the land of their ancestors or become entrepreneurs. A subsidized higher education system has been the springboard of countless first generation success stories. A raised standard of living and an elevated social status, they are hungry for more. They leave their villages in pursuit of their dreams – move to their “city of dreams”, they are usually motivated by a friend or a relative who has migrated to the city and this slow but steady exodus to the big city is giving rise to the swelling migrant population in many metros. They begin their life on certain basics and slowly build a more secure base in the city as they go out and seek better opportunities for themselves. They are never deterred by failures; they are driven and are confident that they will make it thru the void and will be able to provide their children with opportunities to secure a better future.
Respect and Reassurance
Though the economic lens may paint rural India in vibrant hues, there is a need emerging to converge them as skill and living standards of these groups will be a major determinant of India’s future rate of economic growth. And growth begins inside the house and not outside. Driven by a myriad combinations of dreams and means armed with nothing but their own determination to overcome yesterday’s weakness, we may all pose ourselves a key question, how can we with our understanding of diverse economies, different life stages, with future gazing abilities, create value in this world where the realtiy and dreams seem to play hide and seek.
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