Professional Documents
Culture Documents
Mr.Mukesh
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was
fortunate enough to get support from a large number o persons. I wish to
express my deep sense of gratitude to all those who generously helped in
successful completion of this report by sharing their invaluable time and
knowledge.
It is my proud and previledge to express my deep regards to
Respected , Head of Department Dr.Pramesh Gautam, Department of
Business Management , S.V.N.I.T. SAGAR for allowing me to undertake
this project.
I feel extremely exhilarated to have completed this project under the
able and inspiring guidance of He rendered me all possible help me
guidance while reviewing the manuscript in finalising the report.
I also extend my deep regards to my teachers , family members ,
friends and all those whose encouragement has infused courage in me to
complete to work successfully.
CERTIFICATE
KUMAR GUPTA
Signature of the
Signature of the
Signature of the
Supervisor
Examiner
CONTENTS
PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
DECLARATION
CHAPTER I INTRODUCTION
ABOUT PROJECT
AN INSIGHTOF COMPANY HISTORY
MISSION AND VISION
STANDING POSITION OF COMPANY
BRAND VALUE
CHAPTER II OBJECTIVE OF THE STUDY
CHAPTER III RESEARCH METHODOLOGY
CHAPTER IV MARKET ANALYSIS
OVERVIEW
BRANDS
CHAPTER V CONSUMER GROUPS
CONSUMER BEHAVIOUR
CHAPTER VI PRODUCT PROFILE
PLAN FOR PRODUCT MIX
PRODUCT RANGE
CHAPTER VII MARKETING STRATEGY
PRICING
POSITION AND DISTRIBUTION
PROMOTION
CHAPTER VIII ABOUT COMPETITORS
COMPETITOR FOR PRODUCT
PRICE OF COMPETITOR PRODUCT
CHAPTER IX DATA ANALYSISAND INTERPRETATION
CHAPTER X LIMITATION
CHAPTER XI CONCLUSION & SUGGESTION
BIBLIOGRAPHY
QUESTIONNAIRE
INTRODUCTION
Life insurance
The face amount of the policy is normally the amount paid when the policy
matures, although policies can provide for greater or lesser amounts. The
policy matures when the insured dies or reaches a specified age. The most
common reason to buy a life insurance policy is to protect the financial
interests of the owner of the policy in the event of the insured's demise. The
insurance proceeds would pay for funeral and other death costs or be
invested to provide income replacing the deceased's wages. Other reasons
include estate planning and retirement. The owner (if not the insured) must
have an insurable interest in the insured, i.e. a legitimate reason for insuring
another persons life. The insurer (the life insurance company) calculates the
policy prices with an intent to recover claims to be paid and administrative
costs, and to make a profit. The cost of insurance is determined using
mortality tables calculated by actuaries. Actuaries are professionals who use
actuarial science which is based in mathematics (primarily probability and
statistics). Mortality tables are statistically based tables showing average life
expectancies. The three main variables in a mortality table are age, gender,
and use of tobacco. The mortality tables provide a baseline for the cost of
insurance. In practice, these mortality tables are used in conjunction with the
health and family history of the individual applying for a policy in order to
determine premiums and insurability. The current mortality table being used
by life insurance companies in the United States and their regulators was
calculated during the 1980s. There is currently a measure being pushed to
update the mortality tables by 2008.
The current mortality table assumes that roughly 2 in 1,000 people aged 25
will die during the term of coverage. This number rises roughly quadratic
ally to about 25 in 1,000 people for those aged 65. So in a group of one
thousand 25 year old males with a $100,000 policy, a life insurance
company would have to, at the minimum, collect $200 a year from each of
the thousand people to cover the expected claims. The insurance company
receives the premiums from the policy owner and invests them to create a
pool of money from which to pay claims, and finance the insurance
company's operations. Contrary to popular belief, the majority of the money
that insurance companies make comes directly from premiums paid, as
money gained through investment of premiums will never, in even the most
ideal market conditions, vest enough money per year to pay out claims.
Rates charged for life insurance increase with the insured's age because,
statistically, a people are more likely to die as they get older.
Since adverse selection can have a negative impact on the financial results
of the insurer, the insurer investigates each proposed insured (unless the
policy is below a company-established minimum amount) beginning with
the application, which becomes part of the policy. Group Insurance policies
are an exception. This investigation and resulting evaluation of the risk is
called underwriting. Health and lifestyle questions are asked, and the
answers are dutifully recorded. Certain responses by the insured will be
given further investigation. Life insurance companies in the United States
support The Medical Information Bureau, which is a clearinghouse of
medical information on all persons who have ever applied for life insurance.
As part of the application, the insurer receives permission to obtain
information from the proposed insured's physicians. Life insurance
companies are never required by law to underwrite or to provide coverage
on anyone. They alone determine insurability, and some people, for their
own health or lifestyle reasons, are uninsurable. The policy can be declined
(turned down) or rated. Rating means increasing the premiums to provide
for additional risks relative to that particular insured.
VISION
MISSION
To be the first preference of our customers by providing innovative, need
based life insurance and retirement solutions to individuals as well as
corporates. These solutions will be made available by well-trained
professionals through a multi channel distribution network and superior
technology.
Our endeavour will be to provide constant value addition to customers
throughout their relationship with us, within the regulatory framework. We
will provide career development opportunities to our employees and the
highest possible returns to our shareholders
IRDA:
The insurance sector has been opened up in India, as there was an
urgent need. The international experience indicates those country with a
liberalized insurance sector have witnessed a rapid growth in premium
volumes enhancing the domestic saving rate. This happened in China,
Malaysia and Singapore where a competitive market has led to
improvement in Services and quicker settlement of claims. It is also
important to note that competition will bring about advancement in
information, communication and technology. And rightly therefore a
decision was taken by the Government of India to open up Insurance sector.
The establishment of IRDA in the month of April 2000 has been important
development in this direction, making the end of monopoly in the insurance
sector.
WHY INSURANCE IN INDIA:
Only 22% of the insurance population has been extended cover.
Market penetration is low and the potential to exploit is high.
Insurance premium per capita is very low.
Lack of comprehensive social system benefit and welfare means that
demand for pension products is high.
Huge middle class of approximately 300 Million.
Existing insurance company score low on customer service front.
The insurance market registered growth in the Asian region even though
Indias share in global insurance is less than 0.5% (1988) as compared to
USA (24.2%) and Japan (21%). Studies have reveled that in an emerging
OBJECTIVE
To determine and analyze the Market Potential of the Birla Sun Life
Insurance Company in Sagar City.
RESEARCH
METHODOLOGY
According to Green and Tall A research design is the specification of the
methods and procedures for acquiring the information needed. It is the
overall operational pattern or framework of the project that stipulates which
information is to be collected, from where it is to be collected and by what
procedures
This research process based on primary data analysis and secondary data
analysis will be clearly defined to meet the objectives of the study.
I chose the primary sources to get the data. A questionnaire was
designed in accordance with our mentor in Shirts. I chose a sample of
about 30 corporate customers
I collected some data from the secondary sources like published
Company documents, internet etc.
Research Design
A research design is the arrangement of conditions for collections and
analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedures. It is a descriptive cross sectional
design .It is the conceptual structure with in which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of
data.
those that do not provide every item in the universe with known cause of
being included in the sampl
COMPANY PROFILE
income. Birla Sun Life Insurance (BSLI), one of the leading private life
insurers in India today announced the inimitable achiever, cricketer Kapil
Dev as their corporate brand ambassador. The cricketing supremo will be
endorsing BSLI in all its marketing initiatives. Birla Sun Life Insurance is a
value-driven brand which has a national brand recall of 70 per cent. The
objective of appointing a brand ambassador is to grow its brand recall as it
goes national in its distribution reach and fuel business growth. As a brand
ambassador, Kapil Dev will play a key role in the brand and product
marketing and promotional activities. BSLI has always used an integrated
marketing approach, which will be strengthened further.
Commenting on the association with Kapil Dev, Mr. S. K. Mitra, Director,
Financial Services, Aditya Birla Group and currently incharge of BSLI
expressed, "The Birla Sun Life Insurance business distribution network is
national in nature covering more than 1000 points across the country .We
have made our entry in several tier I and tier II towns. It is therefore very
important for the brand to connect at the grassroot level and create trust. We
believe that our association with Kapil Dev as our brand ambassador will
help us create this connect in a shorter period of time. We therefore now
have two strong connects our parent brand Birla and our brand
ambassador Kapil Dev".
Kapil Dev, also known as the Haryana Hurricane, was born on 6 January
1959 in Chandigarh. He played his first competitive game of cricket at the
age of 13 years and made his test debut on 16 October 1978 at Faisalabad
against Pakistan. Kapil Dev remained India's top strike bowler for almost 15
years. His extraordinary test match figures of more than 5000 runs and 434
wickets along with 64 catches show that he was a world class cricketer and
an all-rounder. He has raised the mantle of India to sporting glory by
winning us the World Cup.
In a study conducted by BSLI, Kapil Dev connected extremely well with the
life insurance category and had high acceptance by the masses. Our survey
suggests that he is seen as a very good fit for the BSLI brand. He is very
much loved and respected by a vast majority of the population.
On 26 November 2006, Birla Sun Life was host the annual golf tournament
at the Chembur Golf Club in Mumbai where Kapil Dev was participate.
About Birla Sun Life Insurance
Birla Sun Life Insurance Company Limited is a joint venture between the
Aditya Birla Group, one of the largest business houses in India and Sun Life
Financial Inc., a leading international financial services organisation. The
local knowledge of the Aditya Birla Group combined with the expertise of
Sun Life Financial Inc., offers a formidable protection for your future.
Birla Sun Life Insurance (BSLI), in its five successful years of operations,
has contributed significantly to the growth and development of the life
insurance industry in India. It pioneered the launch of unit linked life
insurance plans amongst the private players in India. It was the first player
in the industry to sell its policies through the banc assurance route and
through the internet. It was the first private sector player to introduce a pure
term plan in the Indian market. This was supported by sales practices which
brought a degree of transparency that was entirely new to the market. The
process of getting sales illustrations signed by customers and offering a free
look period on all policies, which are now industry standards, were
introduced by BSLI. Being a customer-centric company, BSLI has invested
heavily in technology to build world class processing capabilities. BSLI has
covered more than a million lives since inception and its customer base is
spread across more than 1000 towns and cities in India. All this has assisted
the company in cementing its place amongst the leaders in the industry in
terms of new business premium income. The company's current capital base
is Rs.520 crore.
About the Aditya Birla Group
The Aditya Birla Group has a turnover close to Rs.38,000 crore (as on 31
March 2008) and is one of the largest business houses in India. It enjoys a
leadership position in all the sectors in which it operates. With over 75
business units spanning the South East Asian belt, Africa, Canada and the
UK among others, it is reckoned as India's first multinational corporation.
The group is anchored by 72,000 employees and has seven lakh
shareholders,
with
market
capitalization
of
Rs.53,400
crore.
PRODUCT PROFILE
Individual Life
Protection
Saving
Birla Sun Life Insurance Gold-Plus
Supreme Life
Dream Plan
Classic Life Premier
Simply Life
Prime Life Premier
Prime Life
Life Companion
Flexi Cash Flow
Flexi Save Plus
Flexi Life Line
Single Premium Bond
Retirement
Children
Children's Dream Plan
Rural
Bima Kavach Yojana
Riders
Accidental Death and Dismemberment Rider
Term Rider
Critical Illness Rider
Waiver of Premium
Critical Illness Plus Rider
Critical Illness - Woman Rider
Retirement
Our Retirement Plans allow you to meet your expenses and build a nest
egg, which gives you the freedom to live life to the fullest even after
retirement.
The post retirement years can be the best years of your life. Time to do
things you couldn't have done while you were working. A right financial
planning makes your post retirement years truly golden . Our Sun Life
secure Life II assures you just that.
PRODUCTS
Insurance Plans
Life is unpredictable. But in face of adversity, our
responsibilities towards our parents, children and loved ones
need not be compromised. Insurance planning equips you to
smooth out the uncertainties and adversities that life might send
your way, so that the best that life has to offer, secure in the
knowledge that your beloved ones are well provided for.
BSLI offers a complete range of insurance products
1. Protection Plans
2. Savings Plans
3. Child Plans
4. Investment Plans
5. Retirement Plans
6. Group Plans
7. Rural Plans
8. Plans for NRIs
9. Keyman Plans
10. Riders
Protection Plans
You can also enhance the above two policies by adding Accident
& Disability Benefit Rider and Waiver of Premium Rider (WOP) .
Level Term Assurance - Single premium:
Savings Plans
Presenting Life Time unit linked plans that meets your changing needs
over a lifetime. These solutions have been developed to meet your savings, protection
and
investment
needs
at
every
stage
in
life.
Protection
Retirement Plans
Life Expectancy has been rising rapidly and today you can
expect to live longer than your earlier generations. For you, this
increase will mean a longer retirement life, stretching into a
couple of decades. BSLI Retirement Solutions that combine the
best of insurance and investment. These solutions are developed
to ensure your peace of mind for the years to come.
1.
2.
3.
4.
5.
About Annuities
much
investments?
risk
are
you
willing
to
take
on
your
Group Solutions
4.AXIS BANK ON 7 Ps FRAMEWORK:Once the marketing strategy is developed, there is a "Seven P Formula" that should be
used to continually evaluate and reevaluate your business activities. These seven are:
Product
Price
Promotion
PRODUCT:To begin with, develop the habit of looking at your product as though you were an
outside marketing consultant brought in to help your company decide whether or not it's
in the right business at this time. Ask critical questions such as, "Is the current product or
service, or mix of products and services, appropriate and suitable for the market and the
customers of today?"Develop a habit of assessing your business honestly and asking,
Are these the right products or services for our customers today?
Compared to your competitors, is your product or service superior in some significant
way to anything else available? If so, what is it? If not, could you develop an area
of superiority? Should you be offering this product or service at all in the current
marketplace?
Product variety, quality and its features.
Is there a market for the service on offer?
Is the market growing or shrinking?
Is the service new or established?
The competition prevailing in the market for the service on offer?
The USP of the product. Products and Services on offered by AXIS Bank:
Accounts
Easy Access Accounts
Prime Savings Account
Salary Account
Womens Saving Account
Senior Privilege Account
Defense Salary Account
Consumer Loan
Investments:
Online Trading
Mutual Funds
Fixed Income
Depository Services
E Depository Services
Insurance:
Health Insurance
Family Health
Health Guard
SMART PRIVIELAGE
AXIS DIRECT
CURRENT ACCOUNT
NRI SERVICES
PRICES:The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still
appropriate to the realities of the current market. Sometimes you need to lower your
prices. At other times, it may be appropriate to raise your prices. Many companies have
found that the profitability of certain products or services doesn't justify the amount of
effort and resources that go into producing them. By raising their prices, they may lose
a percentage of their customers, but the remaining percentage generates a profit on every
sale. Could this be appropriate for you? Sometimes you need to change your terms and
conditions of sale. Sometimes, by spreading your price over a series of months or years,
you can sell far more than you are today, and the interest you can charge will more
than make up for the delay in cash receipts. Sometimes you can combine products and
services together with special offers and special promotions. Sometimes you can include
free additional items that cost you very little to produce but make your prices appear far
more attractive to your customers. In business, as in nature, whenever you experience
resistance or frustration in any part of your sales or marketing activities, be open to
revisiting that area. Be open to the possibility that your current pricing structure is not
ideal for the current market. Be open to the need to revise your prices, if necessary, to
remain competitive, to survive and thrive in a fast-changing marketplace. AXIS bank has
developed innovative strategies against its competitors with respect to pricing by use of
technology. The use of technology is the strategic differentiator for AXIS bank that helps
in cost minimization and creating efficiency for the customer. The creation of
centralized processing system linking all its branches has been a major strategic move in
this regard.
The pricing mechanism and features of various HDFC products are as follows:Home Loans
Floating rates
For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at9.25
per cent (9 per cent).
The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50
per cent).
The interest rate for above ten years now stands at 10.25 per cent (10 per cent).
Interest Rate
:Bonds will bear interest @ 8.00% per annum and are payable half-yearly.
Minimum Investment Amount
:The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in
multiples thereof
Maximum Investment Amount
:There is no upper limit for investment in the Bonds.
Maturity
:The Bonds shall mature on the expiration of six years from the date of issue.
Taxation
:Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable
according to the relevant tax status of the Bonds holder. Presently there is no tax
deduction at source at the time of interest payment.
Promotion:The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways you tell your customers about your products or services
and how you then market and sell to them. Small changes in the way you promote
and sell your products can lead to dramatic changes in your results. Even small
changes in your advertising can lead immediately to higher sales. Axis bank has devised
an aggressive promotional strategy through its diversified distribution mix which
includes tied agencies and alternate channels like banks, brokers, telemarketing, direct
sales force, internet advertizing .some of the promotional activities undertaken are:
Cross selling exercises
Organizing school level painting competitions in order to create awareness about the
environmental concerns and the wild life to promote kids advantage account.
Wheels of fortune - this promo are targeted at all those customers who avail a personal
loan, car or a two wheeler loan. There will be lucky draw at the end of the promo and the
winners would get exotic prizes.
Personalized promos by sending mailers about various products on offer to all those who
come in contact during the mass promotion strategies. The promotional strategies are
carried out with an objective of positioning axis bank as a one stop financial
super market. The focus of the promotions are not just confined to acquisition of new
products but also extends to creating product awareness, enhancing usage, and also
provide value add to the customers for their faith and loyalty. these promotions are
scientifically designed based on data analysis and data mining in order to have maximum
impact on the target audience.
Positioning:The next P is positioning, the habit of thinking continually about how you are positioned
in the hearts and minds of your customers.
How do people think and talk about you when you're not present?
How do people think and talk about your company?
What positioning do you have in your market, in terms of the specific words people use
when they describe you and your offerings to others?
AXIS Bank has positioned its branches in all the strategic position so that it is easily
accessible to maximum customer. It has also come up with some phone banking
centre and centralized collection and payment hub.
CENTRALISED PHONE BANKING CENTRE
The Banks Centralized Phone Banking Centre provides customers across the country
Access to the Bank over the phone, handling multiple queries in about 7000 calls per
day.
CENTRALISED COLLECTION AND PAYMENT HUB
The Banks Centralized Collection and Payment Hub (CCPH) manages the entire
collection and payment activity under the Banks Cash Management Services (CMS)
across the country, handling on an average about Rs.5000 crores per month on the
collection front and aboutRs.1500 crores per month on the payment front.
ABOUT COMPETITORS
Major players in banking industry with whom axis bank is competing now:-
1.HDFC
2.ICICI
3.IDBI.
4.HSBC.
5.SBI.
6.YES BANK.
7.INDIAN OVERSEAS BANK.
Inference
On the basis of above analysis it has been concluded that around 68% of the policy
holders are having life plan, 22% of them are having Retirement plan and rest of them
are having the health plan.
Question. Are you satisfied with the Insurance plan you have?
Inference
On the basis of the analysis it has been concluded that around 72%of the people are
satisfied with plan they and rest if them are not satisfied.
Ques. Are you satisfied with the services provided by the company
regarding new plans and schemes?
Inference
On the basis of the above analysis it has been concluded that around 82% of the policy
holders are satisfied with the services provided by the company and rest of them are
not satisfied.
Inference
On the basis of the above analysis it has been concluded that around 67% of the
policyholders are interested to make more investments in BSLI and rest of them are
not interested.
Ques. Have you any other Insurance Plan apart from BSLI?
Inference
From the above analysis it has been concluded that around 89% of policy holders are
having other insurance plans apart from BSLI , in which around 60 % are having
LIC insurance plans, 11% are having Bajaj Allianz, 9% are having Birla Sunlife, 8%
are having ICICI Pru. and 12% are having other company insurance plans.
Ques. If you get any attractive plan than are you ready to switch over?
Inference
On the basis of the above analysis it has been concluded that around 82% of the policy
holders are ready to switch over if they get good attractive insurance plan and rest of
them dont.
CONCLUSION
The market potential for private insurance companies is found to
be greater in the long run as most of the Indians are of the
opinion that, private insurance companies would be able to
perform well in the future. The private and foreign insurance
companies have to take immediate steps in appointing more
number of agents and/or advisors in addition to the employees as
it has been found out that agents are the best channel to reach
the general public regarding selling of insurance products. The
private and foreign insurance companies have to concentrate on
the factors like 'Prevention of Loss', 'Assured Returns' and 'Long
term Investment'. They can also focus on an insurance amount of
Rs. 1 2 lakhs with 'money back policies'. Hence, the market
has potential. The private and foreign insurance companies that
are taking immediate steps can tap it easily & rapidly.
SUGGESTIONS
1)
2)
The company should find out the no. of people who are not
having any of the insurance plans through an intensive market research
and motivate them to get insured.
3)
4)
5)
6)
LIMITATIONS
Some of the respondents were not cooperative.
Some respondents were hesitating to give business details.
Biasness is another limitation that the scope of the survey.
The reliability and scope of survey greatly relies on the cooperation
of the respondents.
BIBIOLIOGRAPHY
www.BirlaSunlife.com
www. irda. gov. in
Birlasunlife New Advisor Book
www.google.com
Questionnaire
Name:...............................
Age:..
(b) Retirement
(c) Health
Ques.2 Are you satisfied with the Insurance plan you have?
(a) Yes
(b) No
(b) No
Ques.5 Are you interested to make more investments in Birla Sun Life ?
(a) Yes
(b) No
Ques.6 Have you any other Insurance Plan apart from Birla Sun Life?
(a) Yes
(b) No
(d) Reliance
(e) Others
Ques.8 If you get any attractive plan than are you ready to switch over?
(a) Yes
(b) No
Suggestions: