Discussion board 8 - international relation Essay

Discussion board 8 - international relation - Essay Example In the context of NEIO and CERDS, policies should be made that use an internationalist approach to economics, one that does not benefit rich countries at the expense of poor ones. According to activist Ward Morehouse (1998), CERDS must be supported by the economic policies of individual nations. CERDS makes it easier for nations to do things like impose tax penalties on foreign investment that does not help developing countries to protect and rediversify their local economies. Aid and trade rules should also be changed to ensure that this occurs. The taxes that are imposed should tax domestic and global foreign exchange speculation, as well as on stocks and bonds. Governments should also reassert control over fiscal policies such as tax and public expenditures by re-regulating finance and banking and reintroduce exchange controls. Morehouse states that these practices, supported by CERDS, allow states to change their tax systems to serve the needs of the community. 2. Regardless of o ne’s opinion regarding the Bush administration’s compliance (or lack of compliance) with the international provisions governing the use of force with respect to, among other things, the use of torture, any state that has signed agreements and treaties prohibiting them should adhere to them. If the United States or any other country that is a member of the UN that has signed these treaties violate them in any way, they should be held responsible. Of course, the controversy is if the Bush administration actually did that. Members of the U.S. government, especially in the Bush years, insist that they did not. The U.S. Supreme Court, in its 2006 Hamdan vs. Rumsfeld ruling, declared that military commissions for trying terrorist suspects violated both U.S. military law and the Geneva Convention (Brooks, 2006). The Bush administration held that Common Article 3 of the Geneva Convention did not apply to Al Qaeda combatants because its protections applied only to conflicts bet ween states. They reasoned that since Al Qaeda was not a state, the Geneva Convention did not apply to them. The Supreme Court disagreed, which potentially made high-ranking Bush administration officials subject to prosecution under the federal War Crimes Act, something that did not materialize. In 2009, Attorney General Eric Holder made noises to pursue indicting high-level officials such as Bush and his vice-president, Dick Cheney, for their part in torturing prisoners. At the time, Cheney shrugged it off, and any investigation was eventually dropped. Several countries and organizations have called for the indictment of members of the Bush administration for sanctioning torture, but it seems that the Obama administration has little political will to pursue it. Again, if any official, no matter how high-ranking, is guilty of breaking any laws, no matter what it is, they should be indicted for it. 3. The UN and Collective Use of Force When the UN charter was signed by 51 countries, including the U.S., in 1945, one of their goals was preserving peace among nations. The charter described a collective security system in which the Security Council (then made up of the UK, China, France, the U.S.S.R, and the U.S.) would be able to determine when a threat to or breach of international peace and

The Impact of the Employee Handbook on Organizations Essay

The Impact of the Employee Handbook on Organizations - Essay Example What is an employee handbook There are many attorneys with internet presences offering "free advice" on handbook drafting in layman's language (Dickson Wright).Look for simple definitions on the internet and you may be disappointed; however, Schaefer goes to some trouble to distinguish it from the much larger "manual of policies and procedures": An employee handbook is designed to familiarize employees with basic company policies and benefits programs, and although it draws topics from the far broader policies manual, it presents them with much less detail. (43) Also, the reader may have direct experience of signing an acknowledgement often including a statement, a disclaimer, to the effect that you agree that the handbook does not in itself constitute an employment contract (Schaefer 43) which is a key point in understanding them. Handbooks are informational, non-contractual documents that cover the employee journey from induction to discharge. Implicit in them is the legal concept of consensus in idem ("agreement in the same thing"), widely acknowledged to be an advantage of these documents (Newcomb). For the purposes of this essay we will only consider large-scale enterprises which are usually where they are used. Handbooks can be most useful for employee induction, as a basis for resolving disputes or reducing a company's exposure to law suits arising from health and safety legislation, claims for harassment and for unfair dismissal; indeed, it could be a combination of all of these and more. Although it may be assumed that the handbook may not be well received by some employees, this misses the point in that it is a top-down, employer-created document and they must comply with its rules and spirit. In a unionized workplace, much of the content would depend of the relative bargaining strengths of the parties. Employer interests will inevitably dominate and, ironically in some respects, be separated from their employees', e.g. consider McDonalds' policies on "no solicitation, no loitering" (McDonalds 9). It may prescribe the use of safety goggles or a uniform (McDonalds 13), but also describe, say, an attitude that shop floor staff must have toward customers, as illustrated by McDonalds' conc ept of "customer delight" (10). If we compare and contrast the handbooks for a commercial concern, McDonalds Australia, the University of Chicago and The State of Iowa, we can see immediately that although covering broadly similar themes, they are tailored to the organization to take account of their particular corporate culture and aims, e.g. differing health and safety requirements, differing staff profiles (diverse age group or predominantly young people), the mission of the organization, etc.. One is aimed primarily at inexperienced young adults, one at a range of staff from clerical to collegiate, degree-educated academics and one at an American state with probably the broadest and most diverse employee profile. Handbook content is broadly similar regardless of the organization's purpose and covers matters such as absence and sick leave, benefits, dress code, health and safety, performance and appraisal,

Political Economy Theories Assignment Example | Topics and Well Written Essays - 500 words

Political Economy Theories - Assignment Example Marxism is a system of economic, social, and political philosophy based on ideas that view social change in terms of economic factors. This theory asserts that for human beings to survive they must produce and reproduce the materials necessary for life. As a result, the societies are therefore governed by forces of production. Karl Marx believed that although capitalism develops the productive powers of human societies to historically unprecedented heights, it does so in ways, which are also disabling, exploitative, and undemocratic. In order to change this unjust order in the society Marx advocated for a revolution which would see the distribution of wealth from the few owners of production to all members of the society. â€Å"Neo† refers to a new kind of liberalization carved out by an elite group of capitalists from the old liberal school of economics that belonged to famous economists such as Adam Smith. Neoliberalism is in the first instance a theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterized by strong private property rights, free markets, and free trade. The political economy under neoliberalism is as a result of the following key points. Firstly, there is the liberation of any enterprise imposed by the government regardless of the social damage done to the people. Secondly, neoliberalism calls for the cutting of public expenditure for social services such as healthcare and education. This removes the safety net of the poor leaving them at the mercy of the private enterprises. Thirdly, there is the reduction of government regulation on anything that may diminish business profits. Fourthly, there is the privatization of state owned enterprises under the

Multicultural Education (7) Coursework Example | Topics and Well Written Essays - 1250 words

Multicultural Education (7) - Coursework Example What surprised me about multicultural education is that the cultural background of a teacher and students can affect the learning process. According to Salili and Hoosain (2001), "Teachers and students alike have their own cultural backgrounds, values, customs, perception and prejudices. These cultural characteristics play an important role in teaching and learning situations and can have substantial effects on our learning and behavior" (p. 9). The fact that some teachers may harbor prejudiced opinions on learners is surprising to me. In my opinion, a teacher ought to expect the best of his or her students regardless of their cultural backgrounds. Salili and Hoosain (2001) reiterate that methodical investigations conducted in the past have shown that teachers beliefs about their students have an impacts on performance. A good example as cited by Salili and Hoosain (2001) is the fact that some may have stereotypes that African American students perform poorly as compared to White Ame rican students. The new insights I have had as a result of this class include the importance of conducting proper training to teachers on multicultural education before they can train students. It is important for teachers to have optimistic mindsets in regard to cultural differences characteristic of their students. Being considerate and respectful of different cultural aspects especially in regard to religion and race can have an effect on the overall performance of the students in the classroom (Ghosh, 2011). My main challenge was in relation to communication barrier. Language according to Salili and Hoosain (2001) is one of the factors that define cultures. It is difficult to communicate to students or people whose language is different from mine. As an example , a Chinese student will have to learn English if he wishes to enroll in an American school. However, accent can still be a challenge for teachers. Students performance is dependent on whether the

Overview of Ancient Greece Essay Example for Free

Overview of Ancient Greece Essay Athens, Sparta, Alexander, the Parthenon and other ancient ruins are vivid reminders of Greece’s almost hallowed past. Greece is a mountainous land surrounded by over 1000 islands and almost completely circled by the Mediterranean Sea. The first farmers settled there in around about 7000 BC due to the ideal weather of hot dry summers and rain only in winter and soon developed into small independent communities cut off from each other by the mountains and often competing for the best land, because the fertile soil was in short supply. These small communities later developed into the city-states and each had a strong individual identity, although very little is known about these early settlers. The Bronze Age is considered the first historical period, and it was within this period that the early writing systems were developed. During the Bronze Age there were two great civilisations- the Minoans and Mycenaeans. The Bronze Age witnessed major social, economic, and technological advances that made Greece the main centre of activity in the Mediterranean; it was characterized by its rapid growth of population and development of trade. It was in the Bronze Age that metals were first used. The Minoan civilization was the first great civilisation of the Aegean world; it emerged around 3200 BC on the island of Crete. The rich Cretan soil produced oil, grain and wine in abundance. The Minoan’s were not Greek and may have originally come from western Asia as early as 6000 BC. The civilization grew wealthy through trade with countries such as Egypt, Asia Minor and the Levant. The Minoans were skilled artists and craftsmen, creating beautiful objects, their architecture reaching near perfection. The Minoans also ruled the other Aegean Islands and various cities on the mainland. New buildings constantly replaced the cave dwellings of the previous age. The great Minoan fleet ruled the Mediterranean, providing wealth to the island from trade and commerce as well as providing protection from any invaders. They were peaceful people with a love of life and equality between men and women. A major earthquake hit Crete around 1450 BC, causing large-scale destruction of the palaces; but the palaces were rebuilt soon afterwards and the Minoan civilization continued to flourish. Not everyone was as lucky as others to live in the palaces but whoever didn’t, then lived in small farmhouses. A new disaster hit Crete around 1450 BC, causing large-scale destruction to the palaces and settlements and resulting in the eventual demise of the great civilization. The Mycenaean civilization flourished on mainland Greece from around 1600 BC. It was a warlike society and weapons and armour have been found in their graves. Mycenae, city of Agamemnon, was one of several heavily fortified strongholds. They are also known for being great traders as they sailed far and wide. They traded with Egypt, Asia Minor, Italy and Cyprus. The Mycenaeans were very wealthy and archaeologists have uncovered many objects in gold, silver and ivory from their towns. Their writing system called ‘Linear B’ was adapted from a Minoan script. Unlike the Minoans, the Mycenaeans spoke Greek. Around 1250 BC the Mycenaeans started to build huge defensive walls around the major towns because they were under threat from foreign invaders. By 1200 BC the cities began to be abandoned or destroyed. 1100-700BC, after the collapse of the Mycenaean civilization, Greece was plunged into a Dark Age. The rich Mycenaean towns and palaces fell into decline or were destroyed, writing was no longer used and trade with other countries decreased dramatically. Although very little is known about this period it is thought the population of Greece became much smaller with people living in fewer and smaller settlements possibly due to famine and the depopulation. The Archaic Period was a time of great change in Greece from 700 -480 BC. Many cities like Athens, Corinth, Argos and Sparta, grew rich and powerful. Great temples to the gods were built in many places around Greece. The cities developed new ways to govern themselves. Many cities were ruled by kings or rich families. Others were ruled by a small group of people called an oligarchy. At the end of the 6th century BC, Athens developed a system in which many of its citizens helped to make the rules and decisions. This type of government was called democracy. Sparta invaded the neighbouring land of Messenia and forced most of its inhabitants into slavery. To make sure they could control such a large number of slaves, Sparta became a military society. Men and women were expected to be fit and strong. The men were forbidden to have jobs or trade because they were full-time soldiers. Many of the Greek cities joined together when faced with a common enemy. At the beginning of the 5th Century BC Greece was invaded twice by the Persians and even thought the Greeks were outnumbered they were still able to drive the invaders away from their land. From 323-31 BC, the Hellenistic Period was the time from the death of Alexander the Great to the beginning of the Roman Empire. The Greek world was now dominated by large kingdoms ruled by dynasties rather than individual city states. This was a time when Greek influence spread throughout a great deal of the world. The countries that Alexander had conquered adopted the Greek language, religion and styles of art often mixing them with local traditions. Greek towns with gymnasia, temples and theatres were built in all parts of the empire, even as far away as Afghanistan. The word politics come from the Greek word ‘polis’, meaning city-state or community. Greece was a collection of some 1500 separate communities scattered round the Mediterranean. Those cities that were not democracies were either oligarchies – where power was in the hands of the few richest citizens- or monarchies, called ‘tyrannies’ in cases where the sole ruler had complete power by force rather than inheritance. Of the democracies, the oldest, the most stable, the most long-lived, but also the most radical, was Athens. Athens was the first city to develop democracy. Democracy meaning that all the citizens had a say in how a state or city is governed. In Athens the people, who acquired power and freedom, drove out the tyrants. All decision is Athens had to be voted for by the majority of the people. The assembly was the main forum of political life. At least 6000 people had to be present for a meeting to take place. The assembly made important decisions, for example, whether or not to declare war. In times of war, decisions were made about the defence of the city by a group of ten military commanders called ‘strategoi’. These were elected annually and could be re-elected many times. However, not everyone in Athens was allowed to take part in the democracy. Only male citizens had the right to vote. This meant that women and children could not take part in the government. An Ancient Greek soldier was known as a Hoplite. He had to provide his own weapons and armour. A hoplite’s weapons and armour were very simple and left large areas of the body unprotected, but worked well when he fought in a phalanx. The hoplite’s armour consisted of; a bronze helmet with long nose guard and cheek guards, bronze cuirass (breastplate) designed to protect the top part of the body, large shield to protect the body and bronze greaves (leg guards) to protect the lower part of the legs. A hoplite’s weapons were a long spear and short sword. The ancient Greeks believed that there were a great number of god’s and goddesses. They believed that all the gods were descendants of Gaia (the earth) and Uranos (the sky). These gods had control over many different things on earth. In many ways the Greek gods were very human. They could be kind or mean, angry or pleasant, cruel or loving. They fell in love with each other, argued with each other, argued with each other and even stole from each other! The ancient Greeks built great temples and sanctuaries to their gods. They held festivals in their honour, with processions, sports, sacrifices and competitions. Religion played a large part in the lives of ordinary people. Worshippers believed that the gods would treat them well and meet their needs if they offered the fruits of the harvest and animal sacrifices. Stories of the god’s lives were told to children by their mothers and to large audiences by professional storytellers. One key individual of Greece was Alexander the Great. The story of his life sounded more like that of a Greek hero. He was a great military leader and courageous. Many thought he was a descendant of Hercules and another legend claimed he was the son of Zeus. His loyal army would follow him anywhere and he won the respect of the people he conquered. He died aged 33 thousands of miles from home in Macedon with an enormous empire. Another individual was Homer. He was a storyteller and a poet who lived sometime in the 8th century BC. He was greatly admired and created two of the most popular and enduring stories ever told, The Iliad and the Odyssey. Homer’s stories about Mycenae are still told today and reflect real incidents of war, battles and sieges. Drama and theatre were Greek inventions. They held great festivals where plays were performed. At the end of the festival they would choose one of the plays as the winner. The two main types of play performed were tragedy and comedy. Tragedies dealt with terrible events like war or murder. Often they recreated famous Greek myths and legends. A comedy poked fun at current events and people. Many thousands of people would attend these festivals which were dedicated to the god Dionysus.

Development of an IMC Plan

Development of an IMC Plan Executive summary:- This term paper mainly focus that how an IMC plan is generated in order to make the product familiar with the customer and also how to introduce the product in the market. IMC [integrated marketing communication]is a vast concept under which their comes many sub concept on whose basis the whole IMC plan stands. The various sub topics which I have consider for making IMC PLAN for washing machine are situational analysis, determine a problem or opportunity , determine the budget and develop IMC strategies . Objectives:- the objective of this term paper is as follows :- To understand the concept of IMC. To analyze to how important an IMC is for making a brand. To understand that how various message can be send to various audience. To understand how various promotional activities can come out from IMC. IMC is about integrating the customer into the company: Its not about putting widgets or services in the marketplace based on what you think customers need. Instead, it is becoming a responsive organization driven by consumer insights that knows its customers wishes, wants, needs and desires and then creating products and services to fill those needs. IMC argues you need to get to know the customer better than your competitors, and maybe even better than they know themselves. A true IMC company is closer to the customer, and would never be nervous or ashamed to have one sit in on a strategic marketing meeting—a true IMC company has the best interests of its customers in mind. INTEGRATED MARKETING COMMUNICATION Integrated Marketing Communications is a simple concept. It ensures that all forms of communications and messages are carefully linked together. At its most basic level, Integrated Marketing Communications, or IMC, as well call it, means integrating all the promotional tools, so that they work together in harmony. Promotion is one of the Ps in the marketing mix. Promotions has its own mix of communications tools. All of these communications tools work better if they work together in harmony rather than in isolation. Their sum is greater than their parts providing they speak consistently with one voice all the time, every time. As a marketing strategy, Integrated Marketing is closely related to and inter-dependent with Integrated Marketing Communications (IMC). Indeed, many observers use the term integrated marketing when they probably mean integrated marketing communications. Whereas IMC aims to ensure consistency of message and the complementary use of media, integrated marketing is concerned with the alignment and focus of the whole organisation. Schultz and Kitchen (2000) identified four stages of IMC concluding with an integrated value-based model. According to this interpretation, as the organisation becomes more committed to achieving consistency and differentiation across all customer contact points the business management challenge moves from marketing and marketing communication to the whole organisation, requiring a cultural and systemic infrastructure for integration. This in turn calls on new practices and higher-order levels of organisation management. For example, at this point IMC and CRM are effectively merged. As I am doing the IMC plan for tooth brush it is very essential for me to view the situational analysis: My products will mainly target the kids in which I think is a very large scope for the tooth brush industry and I want to grab that opportunity. Name of the tooth brush:- SHEILD TOOTH BRUSH Brand vision: To be the catalyst of change for younger generation and to create a brand inspiring innovation and to see SHEILD in the hands of 70% of our target market after 5 years. BIG IDEA: â€Å"Brighten Up The Tooth Brushing Experience† Campaign Idea 1 : Its not a Compulsion. Its an Adventure!! Campaign Idea 2 : Watch Your Mouth. Campaign Idea 3 : Good Brushing Now Means More Teeth later. Campaign Idea 4: Rediscovering Fun! Communication Channel Strategy: Buzz or street marketing Awake TV, Print Interactive website Prompt Point-of-sale activities, Sales promotion. My focus : SHEILD, which is an unattractive toothbrush, we propose a plan to revitalize the brushing experience for kids. Target market : Aimed at children from age 5 to 10 Colgate, Oral B are the two major players advertising their messages. SHIELD is one of the local companies of Jammu and Kashmir, which is manufacturing distributing toothbrushes for kids. They are not at all considering the kids market segment as distinct and have not come up with a separate communication campaign for kids yet AIM : To generate trial, achieve 40% purchase rate and become most preferred local brand in kids segment. OBJEVTIVE: To build an image of SHEILD as adventurous and exciting, create awareness about our presence and inform about the features and benefits of SHEILD. Single idea : â€Å" Tooth brushing is not a compulsion, its an adventure†. Proposed Essence : changing the way you brush. Forever! SHEILDS SITUATION ANALYSIS Product Attribute: A toothbrush with a small head and soft bristles having rubber feet at the bottom enabling it to stand. Pricing: Rs.40 Distribution : Distributed in Jammu and Kashmir wholesalers and retailers. Promotion: We will offer trade incentives/ promotions in the form of gifts and discounts but on occasional basis. CURRENT TARGET MARKET FOR MY PRODUCT: Target market approach: Kids 5-10 years Product positioning: The product gives a better SMILE Attitudes: Mostly people are not aware of the fact that SHIELDS toothbrush range also has toothbrushes for children and those who do know dont find it appealing enough as compared to imported brands. CUSTOMERS: Due to increased level of awareness, parents care more about their childrens teeth. Previously consumer didnt have much knowledge about toothbrush functions and benefits. Consumers used to purchase toothbrushes without much information about the product. They dont have good quality perception of local products. MARKET SEGMENTATION : GEOGRAPHIC: All the cities which include both Jammu and Kashmir. DEMOGRAPHICS: Gender: Both male and female. SEC: Both low class and middle class people. Family Size: Families even with one child are enough for our target but if the family size is big, its even better because more family members means more children if not currently then may be in future. Family life cycle: The main focus is on full nest which means families having children at home. Education: Children studying in High schools to Primary school. PSYCHOGRAPHICS: Personality: Marketers endow their products with a â€Å"brand personality† that corresponds to a target consumer personality. If we look at the range of toothbrushes by SHIELD, well see that none of them has a distinct personality that could make it prominent amongst the other brands available in the market. SOWT ANALYSIS OF THE BRAND: Strength: SHIELD is a known company(Hypothesis), mostly people are aware of SHIELD toothbrush due to its distribution network by the virtue of which it is known to very body. Leader in oral and baby care segment because we have made our main thrust on the baby segment which is going for us in the long run. Diversification Strong distribution network Wide range of toothbrushes, each targeting different age groups. Price Range (ranging from Rs( 10)to Rs( 55) affordable as well as expensive. Weakness: Weak Positioning and Image. Low budgets. Lower quality as compared to MNC competitors. People mostly prefer Oral B and Colgate over Shield. Opportunities: Consumers are preferring functionally effective premium products with professional quality to meet their personal care needs. People are now more conscious about their image and appearance and prefer to use branded products. Increase in awareness of dental hygiene and its importance. Increase in population Exploring new categories like kids market Migration of people from rural to urban areas and Rural population switching from miswak, Desi toothpowder to toothpaste. Automated supply chain which we have decided to have for our shield product. Lifestyle of people is changing and they are becoming more. Awareness and Education of the people due to the increasing education standards. Hygiene conscious. Variety seekers. Threats: Local companies producing low priced products. Threat from Chinese products that are cheaper and more attractive. Threat from substitutes. Low brand loyalty and weak image. Increase in raw material price. Inflation in the country Competitors re-launching their products Competitors increasing their marketing budgets Unstable economic conditions SHIELDS CURRENT APPROACH Shields Objective: To become No.1 category toothbrush and we plan to pursue it by increasing awareness level among the customers. Their core communication message is based solely on smile, its our positioning strategy. Big idea is based on the fact that people should replace their toothbrush after every 3 months, otherwise it loses its effectively. We will follow continuous advertising pattern, the advertising mediums used are TV, radio, and print ads. Strength: product range, portfolio Tagline : â€Å"haso zara aur khil khila k† We will also use several sales promotion tactics in order to enhance the sales and ultimately the profit of our firm. Competitors: Our local competitor is EZI GRIP (Hypothetical) and we have made certain marketing strategies in order to tackle with these local brands. Chinese products are making the competition more and more tough for the other brands to survive the market. Colgate ,Oral-b are the two main competitors of my brand. ANALYSIS OF KIDS TOOTHRBRUSH MARKET TOOTHBRUSHES DEMOGRAPHICS PURCHASING POWER Sheild: Our main objective is to target the kids market. Our product is designed in a very sophisticated manner in order to save the grasp the kids market in which we think is the huge opportunity for the brush makers. Shield aimed at children from age 5 to 10 containing a very small head with soft bristles, particularly for children whose set of milk or baby teeth are still breaking. Is a high priced product. Our customers have a high purchasing power and are ready to spend money on purchasing an expensive toothbrush. Shield Junior is made for children from age 4 to 10 containing a very small head with soft bristles. The toothbrush has candy shaped figures at its end with two different colors. Low priced as compared to other competitors to maintain a certain difference between both the brushes and their target markets. Little Star shield made for children from age 5 to 10 containing a very small head with comparatively hard bristles. Little Star does not contain costly raw materials and does not have an extraordinary design therefore, it is also low priced. Chota Shield cater to the children from age 6 to 11 and the design of the toothbrush is very plain aimed at parents who dont want to spend muc h on toothbrushes. Regular toothbrush for children with an ordinary design and specially targeted to people with a low purchasing power. Little Star Shield is same as Chota Shield same as our new product FLEX JUNIOR aimed at children from age 10 to 12 as its head is a little big as compared to other toothbrushes and is made for those children whose baby teeth have been replaced by adult (permanent) teeth. Low priced according to the pricing of competitors because flexible toothbrushes are provided by all competitors. ISSUES FACED BY THE BRAND (SHIELD) Main purpose of the toothbrush is not being fulfilled (does not stand and falls down) Over Priced Low Quality Major focus is on the range and not on promoting children's toothbrushes separately Unattractive Colors Low Budget Major competition from low priced products (Chinese) in the market BRAND VISION: To be the catalyst of change for younger generation and to create a brand inspiring innovation. To see Giggles in the hands of 70% of our target market after 5 years. OBJECTIVE: To spread awareness about the importance of oral health and improve the quality of teeth of Indias Children so that they are able to live a better, happy and healthy life. ROOT STRENGTHS: Wide range of toothbrushes Local Brand The ‘Care is the core message, which has made Shield a recognized household name in Jammu and Kashmir. BENEFITS: SHIELD toothbrush is for children with a complex mixture of different sized permanent and baby teeth. It features a combination of bristles for cleaning sensitive gaps and to effectively reach and clean teeth. The handle is cartoon shaped sized to fit optimally into a childs hand for maximum comfort and control. POSITIONING: DISCRIMINATIOR: Only Shield is the first one in the local market of INDIA to emphasize only on KIDS Tooth Brushes. ESSENCE: Changing the way you brush. Forever! STRATEGY: Niche strategy By targeting the segment of consumers aged between 5-10 and charge a premium price. To be able to differentiate from other tooth brushes in the KIDS segment. AGENCY BRIEF 1. What are the JOBS TO BE DONE and resulting Marketing Objective? To get kids and their parents to understand the importance of having healthy teeth, brushing at young age and to create an association between fun, excitement and tooth brushing. MARKETING MEASURABLE OBJECTIVES: To generate trial amongst non-users by 30 % till January 2012. To achieve a 40% purchase rate amongst the target market by the end of 2010. To be the most preferred local brand in the kids market segment by the end of 2012. MARKETING COMMUNICATION OBJECTIVES: To build an image of SHIELD as adventurous and exciting among 25% of our target market. Create awareness about our presence in the kids market segment. To inform 40% of the target audience about the features and benefits of SHIELD by the end of 2010. 2. What insight drives this brief? Oral health has a major impact on children physically and psychologically. It can have an impact on growth, enjoying life, appearance, how children speak, chew, taste food and socialize, as well as their feelings of social well-being . Dental health problems affect children, which impact their performance as students, lower self-esteem, and slow down their personal development. Failure to prevent dental diseases has a large effect on school attendance. Kids take tooth brushing as a compulsion and are always forced to do it by their guardians. Children find their toothbrushes boring and prefer their favorite cartoon characters on their tooth brushes. KIDS like bright, colorful and funky toothbrushes. Today kids have more autonomy and decision-making power within the family than in previous generations, so it follows that kids are vocal about what they want their parents to buy. " Pester power quot; refers to children apos;s ability to nag their parents into purchasing items they may not otherwise buy. Increasing participation of women in the workforce has prompted a shift in this role as children are increasingly the quot;buyersâ€Å" for the entire family. Even in families where women do not work, children are observed to share this role with their mothers. Children enjoy greater discretion not only in making routine consumption decisions for the family but also in pestering their parents to buy other products desired by them. CONSUMER INSIGHTS FROM OUR STUDY: There are lot of reasons why we choose that we will go for kids toothbrushes are: KIDS like bright, colourful and funky toothbrushes. Kids take tooth brushing as a compulsion and are always forced to do it by their guardians. Children find their toothbrushes boring and prefer their favorite cartoon characters on their tooth brushes. Favourite cartoons are Tom Jerry and Barbie. Majority of the mothers prefer Oral-B and Colgate. Majority of the mothers prefer imported brands of toothbrush over SHIELD, some of them do not know that SHIELD also has tooth brushes for Kids. Quality is the most important factor in purchasing a toothbrush. Dentists recommendation influence a lot when it comes to purchasing tooth brushes for kids. Parents are ready to buy a good quality tooth brush at any price. Kids spend less than 3 minutes while brushing their teeth Candies are consumed a lot by the kids. Majority of the kids eat sweets 1-2 times a day. Kids tooth brushes are replaced within 3-4 months. 3. Who is our Target Audience? PRIMARY TARGET AUDIENCE: AGE: KIDS aged between 5-10 years SEC: We will target both the sections of the society that is both financially strong as well as strong sections of the society. ATTITUDES: Have social interaction with peers of the same age group. They are not concerned about brushing their teeth and are quite careless. They love to eat lots of sweets and chocolates. LIFESTYLE: Kids that go to school, and are in the process of continuous learning. INFLUENCERS: Encouragement from parents, caregivers, teachers, adults, brothers, sisters and children themselves has a great influence on oral health. If everyone starts to encourage kids to take care of their teeth and also encourage big white smiles, children of all ages will benefit. SECONDARY TARGET AUDIENCE: Parents of the KIDS 4. What do they think do now? KIDS have comparatively less knowledge on how to keep their teeth neat and clean. Some of the children take tooth brushing as a very boring exercise and also create problems for their parents. Kids get attracted towards cartoon oriented tooth brushes. The bristles of toothbrushes do not clean the plaque properly. 5. What would we like them to think and do in response to the Communication? We would like them to think of tooth brushing as a fun experience, an experience full of adventure. In response to this, we want them to start tooth brushing twice a day for 3 minutes. We want KIDS to be the chooser of GIGGLES. We want parents to realize the importance of kids brushing their teeth at an early age. 6. What is the single most important point to communicate? â€Å"Tooth brushing is not a compulsion, its an adventure†. 7. Why should they believe it? Because SHIELD is the first one to communicate about only of KIDS toothbrush in India. SHIELD will be the first one to introduce colorful cartoon oriented toothbrushes for kids in Jammu and Kashmir. CREATIVE PLAN Our launch of SHIELD tooth brush with the cartoon character design will make the brushes appealing, colorful and more exciting for the kids. Kids will happily enjoy the brushing experience and will be encouraged to do it themselves without being forced by their parents. The soft and effective bristles of the new SHIELD Tooth brush will help children brush their teeth smoothly and they would not complain about the bristles being too hard or their teeth hurting. To communicate that SHIELD adventure of brushing will wave off the boring image of tooth brushing from the minds of the kids. To communicate that Kid should brush their teeth for 3 minutes and it is an effective way to keep their teeth healthy and clean. To communicate those Kids should take care of their teeth by keeping an eye on the intake of their food and cut down on candies, chocolates etc. To communicate that SHIELDS range of toothbrushes include tooth brushes for kids as well. CAMPAIGN IDEA 1 MESSAGE: Widen your imagination and make tooth brushing an activity full of excitement, fun and adventure that takes the kids into a fantasy world full of Disney characters dancing, playing and enjoying. TAGLINE: Its not a compulsion, its an Adventure†¦Ã¢â‚¬ ¦.!!! APPEAL: Music appeal (Rhyme) JINGLE : Brush your teeth, Give your teeth a treat. Brush up and down and all around, To keep them clean and neat! We have decided to make certain ads so as to make a positive mind set in the minds of to costumers; the ad would be like this.. TV ad A girl is sleeping at night and sees a nightmare that one of her tooth is broken and she gets hurt by using her old hard tooth brush†¦suddenly she sees that a new tooth brush (SHIELD comes in) and kicks the old tooth brush that caused the little girl pain, and tells her that SHIELD is her new gentle best friend and wont hurt her while brushing â€Å"Creating a cartoon world, where all the cartoon characters are brushing their teeth and enjoying with SHIELD†. MESSAGE: WATCH YOUR MOUTH The toughest part of the body is not your bones but your teeth. Each tooth is covered with a substance called enamel which is so strong that it can cut or crush the toughest kinds of food. There is a price to pay for this toughness: unlike bones, teeth cannot repair themselves and it pays to take care of them. Keep track of what you are eating. PRINT Ad MESSAGE: When feeding is done at naptime: The child falls asleep and the liquid becomes pooled around the teeth. This liquid provides excellent medium for the bacteria to grow and cause CARIES which is defined as Tooth Decay causing cavity through bacteria. COMMUNICATION STRATEGY MEDIA SELECTION RATIONALE COMMUNICATION STRATEGY Trigger the target to talk about the Brand, create maximum exposure and create buzz around the new innovation. Awake the target, build high awareness, change consumers Perception. Captivate the target to make a purchase, engage, interact with the consumers and strengthen associations. Prompt/induce the target and get the product in consumers hands. Buzz or street marketing TV, Print activities, Brand Activation, Interactive website Point-of-sale activities, Sales promotion TRIGGER To create BUZZ and to generate talkability, we will place an Out-of-home hoarding at SRINAGAR. The hoarding would consist of a giant sized toothbrush with the cartoon character Jerry and the brand name GIGGLES on it. Another way to gain maximum exposure and create buzz around the new innovation will be to use a MOBILE BUS, decorating it with bright bulb lights, and a picture of Giggles toothbrush along with some of the favorite cartoon icons of children. The mobile bus will roam near parks in the evening. PRINT: In Print we will go for Hindustan Times, Times of India and Greater Kashmir(local news paper of Kashmir) ,with articles highlighting important facts and information such as Good oral health is important to your overall well-being. Healthy teeth not only enable you to look feel good, they make it possible to eat speak properly. Steps that should be taken to prevent dental problems and how to keep your smile healthy and bright. What you eat†¦Ã¢â‚¬ ¦affects your teeth. Proper tooth brushing techniques. We also decided to carry on some other activities like In welcoming the school holiday and the start of new school activities, we will launch a colorful package of Shield toothbrush along with a small tube of toothpaste for milk teeth with famous characters of TOM JERRY, BARBIE etc. CELEBRATING NATIONAL SMILE MONTH OR ORAL HEALTH WEEK: Following are the activities: Dental Expert Talk Oral health educators and dental professionals who want to help the community and for schools, colleges or workplaces who want to educate their pupil or staff. Both children and adults can learn something from an expert talk and different subjects can arise ranging from the importance of fluoride in toothpaste to the systemic links between the health of the mouth and body. Class Visit to the Dentist seeing the dental practice up close and meeting friendly staff can help encourage regular dental visits. Local newspapers will be happy to take a photograph of the event that can benefit both school and dentists. Creating characters and playing a small skit in schools. Characters such as Mickey mouse the tooth brush, exhibiting decayed tooth and a neat and clean tooth that uses SHIELD TOOTHBRUSH. Apartment activities- dental hygiene. FUN BASED ACTIVITIES IN PROMOTING OUR PRODUCT Organizing Special Fun days , an ideal way to grab the attention and interest of children as well as general public and can work well in schools, dental practices, retail outlets, colleges and the community. A fun day can be a great way to create a buzz in your local area as well as to engage your target audience. People are far more likely to learn when they are having fun, – so make sure you also hand out information. Writing stories on THE TOOTH FAIRY would be held in various schools, and distributing prizes to winners. Distribute ice creams among children, and the ice cream stick should be shaped like a toothbrush having the brand name SHIELD on it. Tooth brush drawing competition among children in different schools. Take a close-up of each students mouth (smile). Have each student cut out their mouth from the picture and glue it onto a cutout of a tooth. Have them write a sentence under their smile and on the tooth that describes something they do to keep their teeth healthy. (I brush my teeth after every meal. I drink milk. I use SHIELD. I eat a healthy diet) After these are completed staple them to a Bulletin Board entitled; LOOK WHO IS SMILING!!! PROMPT: Consumers Perceive the Brand through these 5 senses†¦ Sight, Touch, Sound, Smell and Taste. Marketers can use Sight and Sound for GIGGLES. Logos Contrast Style Size Cartoon characters Slogan Music Bright and happy color combinations can be used to give a certain brand recognition in the minds of the customer. Instead of holding a toothbrush, make the whole thing a Cartoon character to make SHIELD recognizable in the market. A unique rhyme in the ad (mentioned above) with a different tune which whenever. These senses will always help in breaking through the clutter and make SHIELD prominent amongst the different competitor products. This SENSORY BRANDING will stimulate the person to buy the product. POINT- OF -SALE (HIGH PRODUCT VISIBILITY): Audio Visual Display: A display in which audiovisual technology is used to stimulate purchases Big visual display of SHIELD TOOTHBRUSH Special racks, banners, signs Distribution of pamphlets, posters, puzzles, and stories to dentists Retail boards SALES PROMOTION: Placement of drawings of SHIELD TOOTHBRUSH in newspapers ( kids section), requesting them to color the drawing and send it to the company to get a FREE SHIELD tooth brush. ( for trial generation) Free SHIELD tooth brush with SHIELD TOOTHPASTE. Sampling: Organize samplings to pharmacies and dentists to generate trial. Coupons for discounted dental check up for 6 months on purchasing SHIELD TOOTH BRUSH. Coupons for getting free bags, lunch boxes, water bottles for schools (Specialty advertising) EVALUTION OF IMC PLAN IN LEGAL REGULATRY BUSINESS: The advertisement that we are giving in the media is legal which means that it has been approved by the law. All the documents that are required are legally approved. There are no fault chances in the documents. In future there will be no problem to the customer regarding any documented work or any servicing criteria, no problem will arise. This is a step taken for the customer satisfaction, for attracting more customers and this also help in sales area. The advertisement of my product is according to the standards of ASCI (Advertising standards if council of India) the advertisement of my product is within the legal boundaries of Indian Penal Code1860 The young Person act 1956 Indian copyright Act 1957 Trade mark act 1999 Advertisement of my product is truthful and honest. All objective information, claims and comparisons should be capable of substantiation. I the advertisement there is no reference to a person, firm and institution. We have not misled consumers by implication, omission, and ambiguity. We are not abusing the trust of consumers or exploit their lack of experience or knowledge. DEVELOPED AN IMC PLAN FOR SOCIAL AND ETHICAL VALUE: There is no objection against any advertisement of our product. There is no problem against our product. Our product is socially accepted which means our product is a social product that will be accepted by the society very easily for sure. There is no negative impact on the customer or people living in the society of our product as it is legal product. Customers are easily attracted towards the product The advertisement of my Tooth brush is according to the codes of ASCI as it is not derides any race, caste, color, creed or nationality. I am sensitive towards ethnic and cultural issues. BIBLOGRAPHY: http://www.multimediamarketing.com/mkc/marketingcommunications/ http://responsiblemarketing.com/blog/tag/imc http://www.slideshare.net/nyssar/shield-imc http://www.scribd.com/doc/13395424/lovely-ads-real-Funny http://www.scribd.com http://www.slideshare.com Books: Advertising Promotions(kruti shah,alan dsouza)

Growth of life insurance in India

Growth of life insurance in India Abstract The paper examines the relationship between economic growth and life insurance. In this context, we study contributions made by some authors across international and Indian domains. The literature review begins with examining the work done in the international context by Arena (2008) and Zheng (2008). Arena (2008) examines the causal effect of insurance on economic growth in a cross-country study. Zheng (2008) attempt to develop comprehensive paradigms for an international insurance comparison. In the Indian context, we examine the work done by Sadhak (2008) and Sinha (2005). Sadhak (2008) analyses the relationship between insurance and the macroeconomy. Sinha (2005) gives a crisp account of insurance in India since pre-independence times. The paper wraps up with an examination of the Malhotra Committee report. The effect of liberalization on the growth of life insurance in India It is a commonly held belief that there is a strong interrelationship between insurance and the macroeconomy. Thus the objective of this review paper is to understand the factors that contribute to growth of life insurance. Skipper (1997) highlights how insurance aids economic development in seven ways: First, it promotes financial stability. Second, it substitutes for government security programs. Third, it facilitates trade and commerce. Fourth, it mobilizes national savings. Fifth, it enables risk to be managed more efficiently. Sixth, insurers and reinsurers have economic incentives to help insureds reduce losses. Seventh, it fosters a more efficient allocation of a countrys capital. Literature Review This literature review consists of four sections: I. Cross country study and a new paradigm. II. Insurance and the Macroeconomy in India. III. Progress of Insurance in India. IV. The Malhotra Committee report. I. Cross country study and a new paradigm Economic theory suggests that there is an interaction between insurance and the macroeconomy: growth in insurance promotes economic growth by giving support to savings that can be funnelled into the capital market. On the other hand, high economic growth will lead to demand for insurance. †¢ Arena (2008) Objective The objective of Arenas paper is to study the effect of insurance on economic growth. Hypothesis Considering the increased activity in insurance markets, in the recent decades, Arena hypothesizes that there is going to be an effect of insurance markets on economic growth. He expects to find a causal relationship between insurance market activity and economic growth; further there should be evidence of complementarity between insurance and banking as well as insurance and the stock market activity. Methodology Arena uses the generalized method of moments (GMM) for dynamic models of panel data that were developed by Arellano and Bond (1991) and Arellano and Bover (1995). The general regression equation to be estimated is: Yi,t = ÃŽ ²Xi,t + ÃŽ ¼ t + ÃŽ ·i + ÃŽ ¾i,t where subscripts i and t are country and time period; Y is the dependent variable representing economic growth; X is a set of time and country-varying explanatory variables, proxies of banking, stock market and insurance market development and interaction terms; ÃŽ ² is the vector of coefficients to be estimated; ÃŽ ¼t is an unobserved time-specific effect; ÃŽ ·i is an unobserved country specific effect, and ÃŽ ¾ is the error term. Control variables include average rate of secondary school enrolment for human capital investment; average inflation rate to account for monetary discipline; average growth of the terms of trade ratio and the average ratio of government consumption to GDP as a measure of government burden. papers.ssrn.com/sol3/Delivery.cfm/4098.pdf? Banking sector development is observed by using the ratio of bank claims on the private sector divided by the GDP. Stock market development is observed by taking the turnover ratio. For explanatory variables of insurance market development, life and non-life insurance premiums are used as proxies. This was done given the absence of consistent time series data for the ratio of financial investments to GDP, that captures their role as institutional investors. Data He takes a pooled data set consisting of 56 countries grouped under the World Bank classification of High income, Middle income and Low income categories. There are 6 non overlapping five year periods over 1976-2004. The data was taken from the Swiss Re database. Results a) The Linear effects For exposition, we take one of the equations for a linear effect. The equation is framed below: Y = 0.162*** 0.015X1*** -0.003X2 + 0.025X3*** + 0.138X4 ***+ 0.501X5 * 2.206X6*** 0.003X7*** + 0.043X8 ***+ 0.055X9*** *** significance at 1% ** significance at 5% * significance at 10% Here, Y is the dependent variable representing average rate of real per capita GDP growth. The equation is dynamic as it includes the initial level of per capita GDP as an explanatory variable. The equation has various explanatory variables and various control variables. X1 represents the log of initial GDP per capita; X2 represents private credit to GDP; X3 represents stock market turnover; X 4 represents life and non life insurance to GDP; X 5 represents the degree of openness; X 6 represents government consumption; X 7 represents inflation; X 8 represents the terms of trade; X 9 represents school enrolment. Source? Coefficient for initial level of per capita GDP is negative as expected growth rates are inversely related to initial levels of GDP per capita. Coefficient of private credit to GDP is negative. However, the result is not significant. The coefficient of stock market activity is positive. This is because liquid equity markets make investment less risky and more attractive, by allowing savers to acquire an asset (equity) and to sell it quickly and cheaply if they need access to their savings. The coefficient of government spending is negative. This gives support to studies that show that beyond a certain level, government spending does not have a positive effect on the economy. The coefficient of inflation is negative. This is expected, since inflation leads to uncertainty about future profitability of investment projects, reduces international competitiveness and distorts borrowing and lending. The coefficient of degree of openness is positive. This is because trade promotes a competitive environment which leads to efficient resource allocation; this promotes growth. The coefficient of degree of terms of trade is positive. This is because a high terms of trade increases returns to producers. This in turn raises investment, promoting economic growth. The coefficient for human capital is positive. This is because economic development depends on advances in technological and scientific knowledge. Further, the author analyses in terms of income group of the countries. He finds that in case of life insurance, the conclusions for the linear effect of insurance on economic growth would hold good only for high income countries. This is because he finds the coefficient on life insurance for developing countries as not significant. In case of non life insurance, the author finds that his conclusion for linear effect of insurance on economic growth hold good for both high income and developing countries. b) Non Linear effects. For life insurance, the coefficients of the linear and quadratic term are positive but not significant; for non-life, the coefficient for the linear term is negative but not significant while the coefficient for the quadratic term is positive but not significant. c) Complementarities In case of interaction between insurance variables and private credit the coefficient of interaction term is negative and significant. This suggests that banking sector and insurance (life and non-life premiums to GDP) are substitutes than complements. In case of interaction between stock market turnover and insurance variables, the coefficient of interaction term is negative. This suggests that stock market and insurance ( life and non-life premiums to GDP) are substitutes than complements. However, the author notes that the results are contradictory and exist due to collinearity issues. Findings The important finding of the paper is that both life and non-life insurance have a positive and significant causal effect on economic growth. Further, high income countries drive the results in case of life insurance. On the other hand, both high income and developing countries drive the results in case of non-life insurance. †¢ Zheng (2008) The objective of this paper is to build a new paradigm for international insurance comparison. The paper has two parts : a) Constructing the Benchmark Ratio of insurance penetration. b) Decomposing growth rates by a ‘Trichotomy. a) The Benchmark Ratio of Insurance Penetration (B.R.I.P) Zheng (2008) consider the insurance industry as one of economic segments whose growth is related to the level of economic development. Just as insurance ‘density is an adjustment to premium income by considering the population factor, and just as insurance ‘penetration is adjustment of insurance density by the GDP per capita, the BRIP is an adjustment of penetration by a ‘benchmark level of world average penetration at that countrys economic development stage. Thus, the Benchmark Ratio of Insurance Penetration (B.R.I.P) gives the penetration level of the country, in relation to the world average insurance penetration at a countrys economic level : The numerator is the penetration level of the country. The denominator comprises of the logistic function. The logistic model for insurance penetration was given by Enz (2000), who described that insurance penetration and GDP per capita are related by an S shaped curve. Zheng (2008) term it as the ‘ordinary growth model. Note that the S curve is a logistic function represented by Y= 1/(C1+C2.C3x) , where, C1 C2 and C3 are the three parameters and X is growth rate. Zheng (2008) describes the benchmark penetration as premiums divided by GDP: Y = premium / G.D.P.= 1 / (C1+C2.C3x), where, Y is insurance penetration, X is the independent variable real GDP per capita. C1 ,C2 and C3 are the three parameters of the logistic function. The normal case of penetration increasing as real GDP per capita increases, is when C3 A pooled dataset comprising of 95 countries and regions over the last 27 years (1980-2008) was taken from the Sigma database of Swiss Re. On this basis, the estimates of the BRIP for world life insurance, non-life insurance and the insurance industry aggregate are got by plotting the regression curves for life, non-life and insurance industry aggregate. As seen in the diagram above, the regression curves resemble the shape of the letter ‘S, S-curve model. The insurance penetration rises with the GDP per capita. Further, various levels of GDP per capita have different growth rates of insurance penetration: at low levels of GDP per capita, the growth rate of insurance penetration is relatively slow. However, as the GDP per capita rises, the growth rate of insurance penetration also increases. However, after a certain level, the insurance penetration tends to plateau. Thus, if BRIP =1, it means that countrys actual penetration is equal to the world average penetration at that economic development stage. If BRIP 1, the actual penetration is greater than world average level. The world average level of penetration is given by the relevant S curve. Zheng (2008) find that rankings of the insurance industries of developed countries under B.R.I.P descend compared to the ranks got by using traditional indicators; similarly, the rankings of emerging countries under B.R.I.P rise compared to the ranks got by using traditional indicators. b). Decomposing growth rates by ‘Trichotomy The authors now modify the ‘ordinary growth model by a ‘Trichotomy of decomposing growth. For attempting the Trichotomy, the ordinary growth model has to be modified to bring out the effects of the economic and institutional factors. This is done by modifying the ordinary model by including country specific dummies which include like the legal system, culture, religion, social security on the insurance growth. Growth is decomposed into ‘Regular growth, ‘Deepening growth and ‘Institutional growth. ‘Regular growth measures the insurance growth that happens while keeping the insurance penetration unchanged, i.e., premiums/GDP are increasing at the same pace. This arises out of economic factors. ‘Deepening growth caused by the increase of insurance penetration induced by economic growth. This also arises out of economic factors. ‘Institutional Growth is the residual that remains after the economic factors of growth, (represented by the Regular and Deepening growth) are deducted from deducted from the overall aggregate growth. It is caused by institutional factors that are country specific such as legal system, culture, religion etc. After performing the decomposition by using the ‘adjusted growth model, the authors show that insurance growth in developed countries is mainly driven by economic factors (i.e., regular and deepening), while institutional factors act as the major driving power for the insurance growth in emerging countries. The authors remark that institutional aspects facilitate growth of the private insurance industry especially in case of developing countries. However, as the economy develops, the contribution of the institutional factors to the insurance growth gradually decreases; the economic factors begin to play a more active role in driving the insurance growth. Finally, in case of developed countries, the social security system is well developed. This acts as a substitute for insurance. As such, insurance growth is hindered. The authors conclude the following: Firstly, there should be recognition of insurance growth level of each country or region, relative to their own stage of development, as given by BRIP; Secondly, insurance growth in developed countries is driven by economic factors while in emerging countries is driven by institutional factors. Thirdly, as an economy develops, the contribution of institutional factors would gradually decrease and economic factors play a greater role. Consequently the emerging countries should upgrade its growth strategy to attain sustainable development. II. Insurance and the Macroeconomy in India †¢ Sadhak (2006) Sadhaks paper is on the relationship between demand for life insurance and macroeconomic variables of growth. These are GDP, domestic savings, household financial savings and disposable income. Sadhak expects to find a continued preference for insurance, given the strong economic performance of the Indian economy in the post liberalization period. He remarks that although the savings are increasing (Table I) there is a decline in life insurance savings in India as a proportion of savings (Table II). (Table I): (Table II) The author finds a decline in the overall savings as a percentage of personal disposable income from a high of 14.5% in 1950-51 to a low of 3.6% in 2002-03. However, it must be mentioned here that the author does not cite the source of data which he used to arrive at this conclusion; he merely says that personal disposable income can be arrived at after deduction of payment of direct taxes and other miscellaneous receipts of the government. A detailed examination of how Sadhak (2006) got this result is required. This increased diversion of funds leaves a small amount to be saved and consequently affects the growth of life insurance funds. Hence, life insurance funds have failed to keep pace with PDY. Sadhak (2006) opines that the opening of the market has not provided much momentum to growth of the industry. He sums up the article by remarking that a spread of financial literacy, awareness of financial risk management, and customer focused service management could help create the required demand for the Indian life insurance industry. III. The progress of insurance in India The objective of Sinha (2005) is to examine the Indian insurance industry. He structures his article into evolution of insurance in the pre nationalization era and the nationalized era. †¢ Evolution under the pre nationalization era Sinha (2005) feels that the pre independence time is of importance, as developments of the period culminated in the landmark Insurance Act of 1938. During the pre-independence period, the pioneering European companies did not initially ensure the lives of Indians; when they did, it was done at rates that were nearly 20% more, compared to the European rates! He notes that such discrimination was practiced by European companies even in other markets like Latin America. The initial period was marked by an absence of regulation on the insurance companies, except for compliance to Companies Act (1866). The Swadeshi Movement from 1905 lead to emergence of many indigenous companies. This necessitated a need for legislations specific to the Indian companies. Legislative controls were extended on foreign companies much later. The Insurance Act of 1938 was a comprehensive legislation the covered life and non life business. It covered deposits, supervision of insurance companies, investments, commissions of agents. Unfortunately, the act lost its importance in the post independence nationalization wave of the country. The act was reinstated only after the opening up of the markets in 1999. However, necessary modifications were done. Non revision of Mortality tables was a hallmark of this era. Sinha (2005) notes that tables based on the British experience during 1863-1893 were used. To further worsen the situation, the ratings were increased by seven years for Indians! Indian tables emerged much later, based on the experience of 1905-25. The Life Insurance Corporation revised these in the 70s! †¢ Evolution during nationalized era Sinha (2005) asks two very important questions to bring out rationale for nationalization: First, why did the Government nationalize life insurance in 1956? Further, why was general insurance not nationalized at the same time? Regarding the first question, he gives interesting insight that comes out of a document given by H.D. Malaviya of the Congress that justifies nationalization on the following grounds: First, that it is by nature, a ‘cooperative enterprise; thus the government should run it on behalf of the people. Secondly, the Indian companies were claimed to be excessively expensive. Third, private competition could not improve the sales to the public. Fourth, the lapse rates were said to be high, leading to national waste. He then analyses the speech made by finance minister C.D. Deshmukh. Its examination leads the Sinha (2005) to conclude that the main rationale for nationalization of insurance was to bring out a social orientation of resources and also to increase market penetration. For the second question, concerning delay in nationalization of non life insurance, Sinha (2005) examines the speech made by finance minister C. D. Deshmukh. He saw ‘general insurance as a part and parcel of the private sector not affecting the individual citizen It seems to as if the government emphasized the elimination of uncertainty through insurance as a relatively minor benefit! Moving forward, Sinha (2005) touches on rural insurance. The Government had specific hopes from rural insurance. Specifically, it was reaching into hitherto neglected rural areas. Sinha (2005) mentions that to promote rural insurance, the Life Insurance Corporation followed a segmented approach for marketing. It involved targeting the rural wealthy with regular policies and offering group policies to people who could not afford individual policies. Sinha (2005) takes the rural insurance drive to be a success for three reasons. Firstly, from 1980 onwards the proportion of policies sold in rural areas stated to increase, i.e., headcount for rural areas has gone up; Secondly, in terms of value of policies sold, the total value of all policies sold in rural areas has not gone up beyond 40%. This fact along with declining headcount implies that more policies were sold in the rural areas with a smaller average value. The author gives reasons for nationalization of general insurance business. First, the subsidiary companies were expected to â€Å"set up standards of conduct and sound practices† Second, the General Insurance Corporation was to help with ‘controlling their expenses. Third, it was to help with the investment of funds. Fourth, it was to bring in general insurance in the rural areas of the country. Fifth, the General Insurance Corporation was also designated the National Reinsurer. By law, all domestic insurers were to cede 20% of the gross direct premium in India to the General Insurance Corporation. The idea was to retain as much risk as possible domestically to minimize the expenditure on foreign exchange. Sixth, all the four subsidiaries were supposed to compete with one another. Sinha (2005) observes that the above goals were scarcely met. For instance, though various schemes were introduced in rural areas, like crop insurance and cattle insurance, they could not expa nd their business. Coming to the analysis of General insurance business, Sinha (2005) finds that general insurance business in India is a much smaller. Even in this, fire insurance (in terms of premium earned) accounted for about a quarter of all business. Marine insurance has shrunk to under 10% by 2001. Interestingly, the ‘miscellaneous component is 68% of the general insurance market. This is the unfortunate outcome of the Insurance Act of 1938 which stipulated whatever cannot be classed as life insurance or fire insurance or marine insurance is put as ‘miscellaneous. Thus, the biggest component of general insurance motor insurance is lumped with a range of other general insurance such as aviation, engineering and crop insurance! Even the profitability of General insurance business is lesser in terms of premium, motor insurance accounts for around 54% of premium income. The Tariff Advisory Committee has been unwilling to revise motor premium upward for political reasons. This leads to mounting loss in motor insurance for general insurance companies. The article concludes with a detailed discussion of the current state of the market. Sinha (2005) feels that India is a very important emerging insurance market. He identifies the major drivers to be a sound economic base, a rising middle-income class, an improving regulatory framework and rising risk awareness. The changes in regulation shall be crucial to ensure future growth. IV. The Malhotra Committee Report In 1993, the first step towards insurance sector reforms was initiated with the formation of the Malhotra Committee, headed by former RBI Governor R.N. Malhotra. The committee was formed to evaluate the Indian insurance industry and recommend its future direction with the objective of complementing the reforms initiated in the financial sector. The resolution highlights how the committee was formed for â€Å"creating an efficient and competitive financial system† and how the government saw â€Å"insurance as an important part of the overall financial system and felt the needs for similar reforms in this sector†¦Ã¢â‚¬  The other members of the committee were R Narayanan, former chairman, LIC; R.K. Daruwala, the former chairman of GIC; S.K. Dave, the chairman of UTI R. Ramakrishna, President, Actuarial Society of India; Deepak Parekh and M.P. Modi, Special Secretary, Insurance. Indeed, the committee was well represented by eminent personalities from the financial sector. The principal terms of reference for the committee were quite comprehensive: to examine the institutional structure for creating an efficient and viable insurance industry; suggesting changes in the structure of the industry; review of the regulatory framework and to give specific suggestions for the LIC and GIC. The methodology for working of the committee was through constitution of working groups from senior executives of the LIC and GIC to analyze the practice of insurance in India. The committee met various interest groups and opinion leaders, which was preceded by circulation of questionnaire. Lastly, there was engagement of Market research agency to elicit popular perceptions about insurance. The committee made all effort to understand what an average Indian wanted from this process of liberalization. For instance, the objective of the Market Action Research Group survey was to get the perceptions of the population. It did so by means of a questionnaire which consisted of two parts life and General Insurance. In life insurance, there were 14 questions relating to the operations and future growth areas. It was circulated to 412 renowned persons and organizations that comprised of chairmen of industrial and cooperative organizations, academicians, businessmen, union leaders from all par ts of India for eliciting their views. Questions ranging from ‘What have been the achievements of LIC? to ‘Should there be private insurance companies? were asked. We analyse the report in three parts a) Life insurance b) Non-life insurance c) Regulatory issues a) Life Insurance: The findings that emerged from consultations of the working groups and survey committees revealed that Life Insurance coverage was expensive. The returns were significantly lower due to excessive dictated investments. The committee prescribed that the LIC should move on from conservative portfolio management and take advantage of market returns. The committee remarked that emphasis should be shifted from `security of capital to maximising the yield on the total investment. The investment regulations suggested by the committee are given below: Life insurance Type of Investment Percentage I. Government Securities 25% II. Government Securities or other approved securities (including I) above Not less than 50% III. Approved Investments as specified in Schedule I Infrastructure and Social Sector Not less than 15% Others to be governed by Exposure / Prudential Norms