UNIVERSITY OF JAMMU

Summer Training Project Report on The study of strategy and Function of field forces AT BAJAJ ALLIANZ

Submitted to University of Jammu In the partial fulfilment of the requirement for the award of degree of Bachelor of Business Administration

SUBMITTED BY: DEEPAK KUMAR Roll No: 8 DEPARTMENT OF MANAGEMENT TRIKUTA COLLEGE OF COMPUTER SCIENCE & MANAGEMENT STUDIES JAMMU

COMPANY GUIDE: Mr.

COLLEGE GUIDE: Miss. SWATI JOSHI

Page 1

Trikuta College of Computer Science and Management Studies

UNIVERSITY OF JAMMU

DECLARATION

I hereby declare that the project report titled: THE STUDY OF STRATEGY AND FUNCTIONING OF FIELD FORCE AT BAJAJ ALLIANZ

Trikuta College of Computer Science and Management Studies

Page 2

UNIVERSITY OF JAMMU

ACKNOWLEDGEMENT
The making of any report calls for contribution and cooperation from many others besides the individual alone. It is the result of meticulous effort put in by many minds that contribute to the final report submission and this work too is not an exception. Thus, one of the best parts of writing this report is the opportunity to thank those who have contributed towards it. First and foremost, I would like to take the opportunity to express my sincere gratitude to Ms. Swati Joshi for his valued insights, suggestions and continuous support, without which this project would not have reached successful completion. I would like to thank all the respondents who took time out of their busy schedule to fill out the questionnaires and have interaction with me. All the above, made considerable contribution to which these few lines can hardly do justice to their patience and generous support. Last but not the least, i would like to thank my friends , my family.

Trikuta College of Computer Science and Management Studies

Page 3

UNIVERSITY OF JAMMU

PREFACE

Theoretical knowledge is of no use, until and unless it is applied into some practical aspect. We must lay stress on the proper implementation of what we have learned in class at real life incidents to obtain optimum output. Thus to apply all theoretical knowledge gained so far onto the practical field, The submission of this project report is the part of the curriculum of BBA course. This Summer Project has provided me with the full fledged experience about the business arena of wholesome Insurance sector. It gave me complete training about practice of marketing strategies in the real life industry and helped me gain the first hand experience of my future career in marketing. This project shows the various steps and activities performed in order To Study Strategies and functions of field force at Bajaj Allianz"

Trikuta College of Computer Science and Management Studies

Page 4

UNIVERSITY OF JAMMU

EXECUTIVE SUMMARY

My internship at BAJAJ ALLIANZ, Jammu was a great exposure to the industry. After going through my summer training, I had a first hand experience of how an industry as well as Marketing department functions.

Trikuta College of Computer Science and Management Studies

Page 5

UNIVERSITY OF JAMMU

INTRODUCTION
Insurance in India is the market for insurance in India which covers both the state and private sector organisations. It is listed in the Constitution of India on the Union list in the Seventh Schedule meaning it can only be legislated by the central government. The insurance sector has gone through a number of phases by allowing private companies to solicit insurance and also allowing foreign direct investment of up to 26% (as of 2013 there have been proposals to extend the FDI up to 49% to strengthen the Insurance Market even further). However, the largest life-insurance company in India, Life Insurance Corporation of India is still owned by the government. Insurance in India started without any regulations in the nineteenth century. It was a typical story of a colonial era: a few British insurance companies dominating the market serving mostly large urban centres. After the independence, the Life Insurance Company was nationalized in 1956, and then the general insurance business was nationalized in 1972. Only in 1999 private insurance companies were allowed back into the business of insurance with a maximum of 26 per cent of foreign holding (World Bank Economic Review 2000). The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. On July 14, 2000 Insurance Regulatory and Development Authority bill was passed to protect the interest of the policyholders from private and foreign players. The following companies are entitled to do insurance
Trikuta College of Computer Science and Management Studies

Page 6

UNIVERSITY OF JAMMU
business in India. The private insurance joint ventures have collected the premium of Rs.1019.09 crore with the investment of just Rs.3, 000 crore in three years of liberalization. The private insurance players have significantly improving their market share when compared to 50 years Old Corporation (i.e. LIC). As per the figures compiled by IRDA, the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96 crore for the period under review. Of this, private players contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life Insurance Corporation of India (LIC), the public sector giant, continued to lead with a premium collection of Rs.9,688.87 crore, translating into a market share of 90 percent. In terms of number of policies and schemes sold, private sector accounted for only 3.77per cent as compared to 96.23 per cent share of LIC A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. The ICICI Prudential topped among the private players in terms of premium collection. It recorded a premium of Rs. 364.9 crore and a market share of 25 per cent, followed by Birla Sun Life with a premium under- written Rs.170 crore and a market share of 15 percent, HDFC Standard with 132.7 crore and Max New York Life with Rs.76.8 crore with a market share of approximately 15 per cent each. Unlike their counterpart in the life insurance business, private non-life insurance companies have not yet started addressing the retail market. All is set to change in the coming years. Like in the banking sector, non-life insurance companies will soon have no choice but to focus on individual
Trikuta College of Computer Science and Management Studies

Page 7

UNIVERSITY OF JAMMU
buyers. In case of private non-life insurance players, that their market share rose to 14.13 per cent, recording a growth of 70.75 per cent on an annual basis, while the market share of public sector stood at 85.87 per cent, registering a marginal growth of 6.34 per cent. The overall market has recorded a growth of 12.32 per cent by the end of January 2004. Among the private non-life insurance players, ICICI Lombard topped the list with a premium collection of Rs.403.62 crore in one year period with a market share of 3.05 per cent and with an annual 131.6 per cent, followed by Bajaj Allianz with a premium of Rs.385.02 crore and 2.91 per cent market share and Tata AIG with 300.49 crore premium and 2.27 per cent market share with an annual growth rate of 62.60 per cent. Among the public sector players, New India garnered a market share of 24.38 per cent, Rs.3,229.49 crore premium and an annual growth rate of 0.38 per cent, followed by National with a market share of 21.43 per cent, Rs.2,839.11 crore premium and an annual growth rate of 19.88 per cent, United India with a market share of 19.47 per cent (Rs.2,578.83 crore premium) and Oriental with a market share of 18.25 per cent, Rs.2,417.17 crore premium and an annual growth rate of 1.86 per cent. It is significant to note that HDFC Chubb and Cholamandalam have registered annual growth rates of 4030.26 per cent and 1101.20 percent respectively.

Trikuta College of Computer Science and Management Studies

Page 8

UNIVERSITY OF JAMMU
BRIEF HISTORY OF INSURANCE In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in these ancient Indian texts is the same i.e. pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. The early references to Insurance in these texts have reference to marine trade loans and carriers' contracts. Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer. At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company, which was founded in 1906, and is still in business. The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the
Trikuta College of Computer Science and Management Studies

Page 9

UNIVERSITY OF JAMMU
same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 nonIndian insurers as also 75 provident societies245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1 January 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1, 1973. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. With effect from December 2000, these subsidiaries have been delinked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

Trikuta College of Computer Science and Management Studies

Page 10

UNIVERSITY OF JAMMU INSURANCE NEED

Why is insurance necessary? The question contains the answer within itself. After all, life is fraught with tensions and apprehensions regarding the future and what it holds for the individual. Despite all the planning and preparation one might make, no one can accurately guarantee or predict how or when death might result and the circumstances that might ensue in its aftermath. We are not saying that life and existence are constantly fraught with danger and uncertainty. But then it is essential that you plan for the future. The chances for a fatality or an injury to occur to the average individual may not be particularly high but then no one can really afford to completely disregard his or her future and what it holds. People generally regard insurance as a scheme when and where you have to lose a lot to gain a little. Nevertheless, insurance is still the most reliable tool an

individual can use to plan for his future. AN OVERVIEW Insurance business is divided into four classes: 1) Life Insurance business 2) Fire 3) Marine 4) Miscellaneous Insurance. Life Insurers transact life insurance business; the rest is transacted by General Insurers. No composites are permitted as per law. The business of Insurance essentially means defraying risks attached to any activity over time (including life) and sharing the risks between various entities,
Trikuta College of Computer Science and Management Studies

Page 11

UNIVERSITY OF JAMMU
both persons and organizations. Insurance companies (ICs) are important players in financial markets as they collect and invest large amounts of premium

Trikuta College of Computer Science and Management Studies

Page 12

UNIVERSITY OF JAMMU

INSURANCE MARKET IN INDIA

NON-LIFE INSURANCE MARKET In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national reinsurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from GIC. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With
Trikuta College of Computer Science and Management Studies

Page 13

UNIVERSITY OF JAMMU
long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Commitee. For Projects costing up to Rs.1Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to reinsurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids.

Trikuta College of Computer Science and Management Studies

Page 14

UNIVERSITY OF JAMMU RE-INSURANCE

Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, reinsurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally.

LIFE INSURANCE MARKET

The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were underinsured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed

Trikuta College of Computer Science and Management Studies

Page 15

UNIVERSITY OF JAMMU
nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fast-forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers.
Trikuta College of Computer Science and Management Studies

Page 16

UNIVERSITY OF JAMMU
THE INSURANCE SECTOR- AN OVERVIEW MARKET SHARE

An overview of the insurance sector in India, representing the market shares allotted to each company.

Trikuta College of Computer Science and Management Studies

Page 17

UNIVERSITY OF JAMMU
MARKET SHARES UNDER PRIVATE PLAYERS

Presently Bajaj Allianz is one of the leading insurance company amoung private sector having shares about 14% in the Market. The main competitor in the market amoung private players are ICICI Prudential & SBI life.

Trikuta College of Computer Science and Management Studies

Page 18

UNIVERSITY OF JAMMU
BAJAJ ALLIANZ LIFE INSURANCE Bajaj Allianz Life Insurance Company Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance

Is the fastest growing private life insurance company in India. Currently has over 3,00,000 satisfied customers We have customer care centers in 155 cities with 28000 Insurance Consultant providing the finest customer service. One of India's leading private life insurance companies

Bajaj Allianz General Insurance Company Limited Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration (R3) on May2nd 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.
Trikuta College of Computer Science and Management Studies

Page 19

UNIVERSITY OF JAMMU
ALLIANZ GROUP Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with a lmost 174,000 employees. At the top of the international group is the holding company, Allianz AG, with its head office in Munich. Allianz Group provides its more than 60 million customers worldwide with a comprehensive range of services in the areas of: Property and Casualty Insurance, Life and Health Insurance, Asset Management and Banking. Allianz ag- a global finanecial powerhouse Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr. 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. - AUM of Rs.51,96,959 cr. 12th largest corporation in the world 49.8 % of global business from Life Insurance Established in 1890, 110 yrs of Insurance expertise

Trikuta College of Computer Science and Management Studies

Page 20

UNIVERSITY OF JAMMU
BAJAJ GROUP Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image & brand loyalty synonymous with quality & customer focus. A STRONG INDIAN BRAND- HAMARA BAJAJ One of the largest 2 & 3 wheeler manufacturer in the world 21 million+ vehicles on the roads across the globe Managing funds of over Rs 4000 cr. Bajaj Auto finance one of the largest auto finance cos. in India Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03 It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of life insurance products. As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the following to offer Financial strength and stability to support the Insurance Business. A strong brand-equity. A good market reputation as a world class organization. An extensive distribution network. Adequate experience of running a large organization.

Trikuta College of Computer Science and Management Studies

Page 21

UNIVERSITY OF JAMMU
PRODUCT Allianz AG with over 110 yearsSof experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market, together are committed to offering you financial solutions that provide all the security you need for your family and yourself. Bajaj Allianz brings to you several innovative products, the details of which you can browse in this section.
.

Trikuta College of Computer Science and Management Studies

Page 22

UNIVERSITY OF JAMMU
INSURANCE FOR NRI All Indians have an underlying need to feel secure, to care for the loved ones and to provide for old age. The need is felt more when you are away from your Homeland. But being away from India doesn't mean you have to compromise on the safety and security of your loved ones.

In fact, you can now easily steer your savings from overseas to conveniently meet your family's needs - now and in the future.

Bajaj Allianz understand your need. The need to do something fruitful for your loved ones.. The urge to let them know that you care. That's why Bajaj Allianz introduced the NRI Insurance services. Now, you can invest your hard earned money in India and in the bargain ensure your family's future. InvestGain - 'With Endowment Plan'. Profits

CashGain - 'With Profits Money Back Plan'. Child Gain - 'With Profits Money Back Plan' for children. Lifetime Care - 'With Profits Whole of Life Plan'. Swarna Vishranti - 'With Profits Differed Annuity Plan'. UnitGain - 'Unit Linked Whole of Life Plan'.

Trikuta College of Computer Science and Management Studies

Page 23

UNIVERSITY OF JAMMU
MARKETING STRETAGY A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategy as a key part of the general corporate strategy marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of micro environmental factors. Marketing strategy and sectarian tactics and actions: A marketing strategy also serves as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higherMargin products and services that enhance the consumer's interaction with the low-cost product or service." A strategy consists of well thought out series of tactics. While it is possible to write a tactical marketing plan without a sound, well-considered strategy, it is not recommended. Without a sound marketing strategy, a marketing plan has no foundation. Marketing strategies serve as the fundamental underpinning of Marketing plans designed to fill market needs and reach marketing objectives. It is important that these objectives have measurable results. A good marketing strategy
Trikuta College of Computer Science and Management Studies

Page 24

UNIVERSITY OF JAMMU
should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. Types of marketing strategies Every marketing strategy is unique, but if we abstract from the individualizing Details each can be reduced into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies: Leader Challenger

Follower Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:

Pioneers Close followers

Page 25

Trikuta College of Computer Science and Management Studies

UNIVERSITY OF JAMMU
Late followers

Growth strategies - In this scheme we ask the question, How should the firm grow? There are a number of different ways of answering that question, but the most common gives four answers: Diversification Horizontal integration Intensification Vertical integration
FORMULATING THE MARKETING STRATEGYFormulating the marketing strategy consists of two main steps1- Selecting the target marketIt does not fully bring out the import of the inseparable linkage between the two. When the selection of the target market is over an important part of the marketing strategy of the firm is already determined, defined and expressed. 2-Assembling the marketing mixAssembling the marketing mix means assembling the four Ps of marketing in the right combination. The firm has to find out how it can generate the best sales and profit. It plans different marketing mixes with varying levels of expenditure on each element and tries to figure out the effectiveness of each combination in terms of the possible sales and profit.
Trikuta College of Computer Science and Management Studies

Page 26

UNIVERSITY OF JAMMU STRATEGIES USED

Direct Marketing Cold calling Through friends, and the reference given by the company Advertisement etc

DIRECT MARKETING Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits organizations to communicate straight to the customer, with advertising techniques that can include Cell Phone Text messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.

Direct marketing messages emphasize a focus on the customer, data, and accountability. Characteristics that distinguish direct marketing are:

Trikuta College of Computer Science and Management Studies

Page 27

UNIVERSITY OF JAMMU
1. A database of names (prospects, customers, businesses, etc.), often with certain other relevant information such as contact number/address, demographic information, purchase habits/history, company history, etc., is used to develop a list of targeted entities with some existing common interests, traits or characteristics. 2. Marketing messages are addressed directly to this list of customer and/or prospects. Direct marketing relies on being able to address the members of a target market. Addressability comes in a variety of forms including email addresses, phone numbers, Web browser cookies, fax numbers and postal addresses. 3. Direct marketing seeks to drive a specific "call to action." For example, an advertisement may ask the prospect to call a free phone number, mail in a response or order, or click on a link to a website. 4. Direct marketing emphasizes trackable, measurable responses, results and costs from prospects and/or customers regardless of medium. COLD CALLING Cold calling is the marketing process of approaching prospective customers or clients-typically via telephone, by email or through making a connection on a social network-who were not expecting such an interaction. The word "cold" is used because the person receiving the call is not expecting a call or has not specifically asked to be contacted by a sales person. A cold call is usually the start of a sales process generally known as telemarketing.

Trikuta College of Computer Science and Management Studies

Page 28

UNIVERSITY OF JAMMU

Cold calling is one of the least liked tasks in sales. It's emotionally demanding because receiving a cold sales call can bring out the worst in people, so salespeople launching into a round of cold calls can expect verbal abuse, prospects who hang up on them, and even occasional threats. The best approach is to remind yourself that they are not rejecting you, they are simply reacting to the situation. Just let any hostility roll off and move on to the next name on the list. ADVERTISEMENT Advertising or advertizing is a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action. Most commonly, the desired result is to drive consumer behavior with respect to a commercial

Trikuta College of Computer Science and Management Studies

Page 29

UNIVERSITY OF JAMMU

offering, although political and ideological advertising is also common. This type of work belongs to a category called affective labor. Advertising is at the front of delivering the proper message to customers and prospective customers. The purpose of advertising is to convince customers that the company products are the best, enhance the image of the company, point out and create a need for products or services, demonstrate new uses for established products, announce new products and programs, reinforce the salespeople's individual messages, draw customers to the business, and to hold existing customers.

Trikuta College of Computer Science and Management Studies

Page 30

UNIVERSITY OF JAMMU

ADVERTISING CAMPAIGN: While designing the advertisement campaign, it is necessary to keep in mind the opinion leaders. Prospect clients are the opinion leaders of the time. And thus it becomes necessary to design the campaign keeping them in mind. The opinion leaders would further trickle down the message to the less active members of the society. Bajaj Allianz has started an advertisement campaign stressing the point of purity and flaunting the patent right the company has over the breakaway seal. The company has tried to put the message across louder, by using the ad campaign that catches the eye of everyone.

Trikuta College of Computer Science and Management Studies

Page 31

UNIVERSITY OF JAMMU

OBJECTIVES OF THE STUDY

To study the sales Strategy of field force of Bajaj Allianz Life Insurance. To study the process of selling of Insurance Policies by Advisors.

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. Research methodology constitutes of research methods, selection criterion of research methods, used in context of research study and explanation of using of a particular method or technique so that research results are capable of being evaluated either by researcher himself or by others. Why a research study has been undertaken, how the research problem has been formulated, why data have been collected and what particular technique of analyzing data has been used and a best of similar other question are usually answered when we talk of Research methodology concerning a research problem or study. The main aim of research is to find out the truth which is hidden and

which has not been discovered as yet.

The five characteristics of research are:

Trikuta College of Computer Science and Management Studies

Page 32

UNIVERSITY OF JAMMU
Systematic problem solving which identifies variables and tests relationships between them Logical, so procedures can be duplicated or understood by others Empirical, so decisions are based on data collected Reductive, so it investigates a small sample which can be generalized to a larger population Replicable, so others may test the findings by repeating it

RESEARCH SITE: The area of the study related with getting correct information of life insurance policies of different peoples in the region of Jammu.

RESEARCH DESIGN : The research design which has been used in the project report is descriptive in nature. SAMPLE DESIGN: A sample design is a definite plan for obtaining a sample from a given population. It refers to the techniques or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well be drawn from the population to be included in the sample i.e. the size of the sample. Sample design is determined before data are collected. SAMPLING UNIT :

Trikuta College of Computer Science and Management Studies

Page 33

UNIVERSITY OF JAMMU
A decision has to be taken concerning a sample unit before selecting the number of samples. It may be geographical as well as individual. Here Jammu region has been taken as a geographical unit and retailers as an individual unit. SIZE OF SAMPLE: This refers the number of items (Outlets) to be selected from the finite universe to constitute a sample size. The survey was conducted owith 50 insurance care consultant.

DATA COLLECTION
PRIMARY DATA SOURCES Through interaction with insurance care consultant Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES: Through internet, various official sites of the companies. Through pamphlets and brochures of the companies. Journals & Magazine

Trikuta College of Computer Science and Management Studies

Page 34

UNIVERSITY OF JAMMU

LIMITATIONS OF THE STUDY

Following limitations were faced during the 1. While designing the questionnaire it was kept in mind to gather more and more information from each target person. For the neither present nor descriptive questions could have served the purpose. Therefore the questionnaire contained in the open-ended questions. 2. The study was conducted in Bajaj Allianz in Bhopal city, which has 127 to 170 insurance care consultants only. The sample size was of 50 insurance care consultants only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 3. The accuracy of indications given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted. 4. The study is based on the information gathered from the insurance care consultants. Therefore in such case it is possible that the information supplied might be biased because the insurance care consultant might have shown partiality towards their insurance policies.
Trikuta College of Computer Science and Management Studies

Page 35

UNIVERSITY OF JAMMU
5. Since the survey was limited to 50 insurance care consultants it is rather difficult to give a precise conclusion but I have tried to the best of my capability to give the conclusion on a comprehensive manner.

DATA ANALYSIS AND INTERPRETATION

Q.1 Which technique of sales promotion you prefer? Options: a) b) c) d) e) Response in % 40% 14% 16% 20% 10%

Display Door to Door Exhibition Catalogue Price off

Sample size: 50

Trikuta College of Computer Science and Management Studies

Page 36

UNIVERSITY OF JAMMU
Display Door to Door Exhibition Catalouge Price off

10%

20%

40%

16% 14%

Interpretation:
According to the study 40% insurance care consultants prefer display technique ,20% insurance care consultants prefer catalogues, 16% to the exhibition, 14% to the door to door demo and 10% insurance care consultants prefer price off technique.

Q2. Which technique is giving good response from customer? Options: a) b) c) d) e) Display Door to Door Exhibition Catalouge Price off Response in % 20% 30% 20% 18% 12%

Trikuta College of Computer Science and Management Studies

Page 37

UNIVERSITY OF JAMMU

Display

Door to Door

Exhibition

Catalouge

Price off

12% 18%

20%

30% 20%

Interpretation: According to the study 36% insurance care consultants say door to door demo techniques giving good response, 18% insurance care consultants say to the display & exhibition, 16% to the catalogues & 12% say to the price off technique.

Q.3 Which technique is economically beneficial? Options: a) b) c) d) e) Response in % 10% 22% 10% 46% 12%
Page 38

Display Door to Door Exhibition Catalouge Price off

Trikuta College of Computer Science and Management Studies

UNIVERSITY OF JAMMU

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalouge Price off Series 1

Interpretation:
According to the 46% insurance care consultants, catalogue technique is economically beneficial. 22% to the door-to-door demo and 12% insurance care consultants prefer price off technique.10% to the exhibition & display technique.

Q4. Which technique requires less time in sales promotion? Options: a) b) c) d) e) Display Door to Door demo Exhibition Catalouge Price off Response in % 22% 38% 10% 16% 14%

Trikuta College of Computer Science and Management Studies

Page 39

UNIVERSITY OF JAMMU

30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Price off Catalouge Series 1

Interpretation: According to the study 38% insurance care consultants say display technique requires less time in sales promotion. 22% to the display technique, 16% insurance care consultants vote to the catalogues, 14% insurance care consultants vote to the 10% to the exhibition.

Q5. Which technique is easily manageable? Options: a) b) c) d) Response in % 18% 30% 10% 34%
Page 40

Display Door to Door demo Exhibition Catalouge

Trikuta College of Computer Science and Management Studies

UNIVERSITY OF JAMMU
e) Price off 8%

Display

Door toDoor

Exhibition

Catalouge

Price off

8% 18%

34%

30%

10%

Interpretation: According to the study 34% insurance care consultants say that the catalogues is easily manageable, 30% to the door to door demo,18% insurance care consultants prefer display technique 10% to the exhibition, and 8% insurance care consultants say to the price off technique.

Q6. Which technique requires less knowledge to execute? Options: a) b) c) d) e) Display Door to Door demo Exhibition Catalouge Price off Response in % 14% 12% 12% 22% 40%
Page 41

Trikuta College of Computer Science and Management Studies

UNIVERSITY OF JAMMU

Display

Door to Door

Exhibition

Catalouge

Price off

14% 40% 12%

12%

22%

Interpretation: According to the study 40% insurance care consultants vote to the price off technique is require less knowledge to execute.22% insurance care consultants prefer catalogues, 14% to the display and 12% to the exhibition & door to door.

Q7. Which technique requires more knowledge to execute?

Options: a) b) c) d)

Display Door to Door demo Exhibition Catalouge

Response in % 20% 42% 24% 10%

Page 42

Trikuta College of Computer Science and Management Studies

UNIVERSITY OF JAMMU
e) Price off 4%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalouge Price off

Interpretation: According to the study 42% insurance care consultants vote to the door-to-door technique that it requires more knowledge to execute than others. 24% to the exhibition, 20% to the display technique, 10% insurance care consultants give vote to the catalogues and 4% insurance care consultants prefer price off technique.

Q8. Price off are necessary for sales promotion?

Options: a) Yes b) No
Trikuta College of Computer Science and Management Studies

Response in % 46% 40%

Page 43

UNIVERSITY OF JAMMU
c) Cant Say
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Can't Say

14%

Interpretation: According to the study 46% insurance care consultants say yes that the price off are necessary for sales promotion. 40% say no and 14% say cant say.

Q9. Do you think that sales promotion program that is presently undertaken by Bajaj Allianz are satisfactory? Options: a) Yes
Trikuta College of Computer Science and Management Studies

Response in % 34%
Page 44

UNIVERSITY OF JAMMU
b) No c) Cant Say 46% 20%

Yes

No

Can't Say

20%

34%

46%

Interpretation : According to the study 46% insurance care consultants say No that the sales promotion program that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and 20% say cant say.

Q10. Should Bajaj Allianz take up new sales promotion program?

Options: a) Yes b) No
Trikuta College of Computer Science and Management Studies

Response in % 72% 22%

Page 45

UNIVERSITY OF JAMMU
c) Cant Say
Yes No Can't Say

6%

6% 22%

72%

Interpretation : According to the study 72% insurance care consultants say yes installment offers are 22% say no and 6% say cant say.

Trikuta College of Computer Science and Management Studies

Page 46

UNIVERSITY OF JAMMU

OBSERVATIONS & FINDINGS

Trikuta College of Computer Science and Management Studies

Page 47

UNIVERSITY OF JAMMU

OBSERVATIONS & FINDINGS

This sales promotion process was very much satisfying for me not only practically and academically but it also helped me in developing my communication skill and enriched my knowledge also. I have come to know about the importance of marketing especially with regard to Sales Promotion on the most renowned organization like Bajaj Allianz. Especially because of emergence of many competitor with excellence in services & competitive product. The base of this chapter conclusion is on the data analysis or what we say findings. I have finding from the insurance care consultants of the Bajaj Allianz. and their insurance policies on my topic. When the insurance care consultant is asked why they are dealing in this particular insurance policies (product) they mostly stressed on companys image. They also said that all income and age group of customers are attracted towards their product but buyers are mainly from higher and middle-income group. Insurance care consultants said that their sale is very much increased in the last years because of an excellent performance of the product. Insurance care consultants said that the customer are very much satisfied after getting insurance policies because of its features related with risks of life and also because of quality of service provide by their company is very good.

Trikuta College of Computer Science and Management Studies

Page 48

UNIVERSITY OF JAMMU
SUGGESTIONS Here are some suggestions, which may help to strengthen the firm further: Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good communication skills and training. So training should be easy. Bajaj Allianz. Should use new techniques of sales promotion. Customer services should be more comfortable than others. People must be made aware of the benefits of the policies of Bajaj Allianz. The company should give personal attention to each customer. Proper assistance should be provided to the customer at the time of claim settlement. All the details about the company should be given to the customers. Regular advertisement of the company should be given TV and Newspaper. The company must try to find new markets especially in the rural areas. The company should do frequent analysis of the competitors.

Trikuta College of Computer Science and Management Studies

Page 49

UNIVERSITY OF JAMMU

BIBLIOGRAPHY
Books: Kothari C.R., (1999) Research Methodology, Wishwa Prakashan Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice Hall of India Kotler P., (1999)Marketing Management Analysis, Planning,

Implementation and Control, New Delhi, Prentice Hall of India Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill

Websites: www.bajajallianz.com www.quickmba.com www.indiainfoline.com Magazines Business World (Issue 04-10 Dec, 2011) A & M (Issue Jan 2008) Business India (Issue 11-17 Dec, 2012)

Trikuta College of Computer Science and Management Studies

Page 50

UNIVERSITY OF JAMMU
QUESTIONNAIRE Name Address : _____________________________________ : _____________________________________

Q1. To which technique of sales promotion you prefer? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Q2. which technique is giving good response from customers? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Q.3

Which technique is economically beneficial? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Q.4

Which technique requires less time in sales promotion? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Trikuta College of Computer Science and Management Studies

Page 51

UNIVERSITY OF JAMMU

Q.5

Which technique is easily manageable? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Q.6

Which technique requires less knowledge to execute? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Q.7

Which technique requires more knowledge to execute? A) Display C) Exhibition E) Price-off B) Door to door demonstration D) Catalogue

Q.8

Price off and installment offers are necessary for sales promotion? A) Yes C) Cant say B) No

Q.9

Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are satisfactory? A) Yes C) Cant say B) No

Trikuta College of Computer Science and Management Studies

Page 52

UNIVERSITY OF JAMMU

Q.10 Should Bajaj Allianz. take up new sales promotion program? A) Yes C) Cant say B) No

Trikuta College of Computer Science and Management Studies

Page 53