Tuesday, February 02, 2010

Bajaj Allianz Life Versus Fixed Deposits…. (The best way to design a worst portray of universally disagreed reality)

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You need to be very strong at logic as well as the differentiated features of a product being compared to, when you decide to collide head on with a strong belief that has made it roots strong since years deep in the mind of a customer. And especially this becomes a basic necessity when your target group itself are these set of customers with strong belief. And if this necessity is not addressed by a brand then, it's a pure waste of effort in terms of money, time and talent with respect to the ad agency as well as the brand in picture. And I think Bajaj Allianz had just done it by not addressing the necessity in it's new campaign targeted at the customer's going for Fixed Deposits.

Fixed Deposits have been one of those products whose roots are buried into the financial planning of Indian since years. It is believed to be one of the best instruments that gives safe and secure returns. Though with time, we have moved money into other instruments like bonds, direct equity, insurance, mutual funds.... Still, there is a huge chunk of population that believes in FD's as the instrument to be put into. Customers who put their money into FD's can be broadly put under 2 categories. First category comprises of those who plan their wealth in a disciplined manner (either through their RM's or self) or those who fix amounts to be put into different instruments in the ratio they like it to be. Second category comprises of those who put their money only in FD's or bonds type of instruments and they have been like that since ages and they like to be like that only.


The new ad from Bajaj Allianz Life Insurance shows people in a bus making fun of a person investing his money into FD's. And starts questioning if his FD will give him "170% guaranteed returns, Life Insurance cover, Tax benefits ...” This is not targeted at any specific customer category we spoke of but, it is targeted at the money both these categories have been investing into FD's. Why will this concept not work for Bajaj Allianz???

The First category of customers have already planned their wealth in a disciplined manner or as per the ratio decided earlier and they believe that they are diversifying their wealth (although many of them are not diversifying in a disciplined or in the required ratio). This category of customers don’t agree to move money from FD into any other market linked product though you try explaining them on a face to face meeting. Hence, this category giving a thought about moving their money from an FD into any other products is a rare possibility.


The Second category of customers are those who belong to "We are like that only" category. It's nothing to blame them about their behaviour but, it's just their way of looking at managing their wealth. And their behaviour is well expressed by their modes of investments. A person investing only into an FD or bonds related products is a very low risk taker, very careful before investing into any product, will consider multiple options, re-check the details of product they would invest into.


The Logic that is used to collide head on with an FD is fine to an extent in terms of less returns, a Life Insurance attached (although at an extra cost) and is actually true in reality.. but it doesn't make much of a difference to this customer. I don't think this customer segment is financially illiterate to an extent that they are not aware that FD's give lower returns compared to equity linked instruments. And although if it makes a little sense to this customer to give it a thought, the way it is being advertised 170% returns makes the customer search for that * mark around some corner of the ad... And this customer already being a very careful evaluator, the only way he/she finally agreeing upon taking up this financial instrument is "mis-selling" by the agent/sales person.

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The best way to design a worst portray of Universally disagreed reality.....

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