Professional Documents
Culture Documents
PROJECT REPORT
ON
“PRODUCT/SERVICES AND
MARKETING STRATEGIES”
Of
Of
80103320068
BBA V
Session:2008-2011
Declaration
SAHIL SOOD
B.B.A V
80103320068
ACKNOWLEDGEMENT
A t t h e o u t s e t , I w o u l d l i k e t o t h a n k t h e st a f f o f K O T A K
A h e a r t f e l t t h a n k t o t h e m a n y r e s p o n d e n t s s u r ve y e d w h o s e
i d e a s , c r i t i c a l i n s i g h t s a n d s u g g e s t i o n s h a v e b e e n i n va l u a b l e
Companies now are tapping a lot of ways to capture the market and hence
adopting different ways to hold the large portion of the market.
Functions of insurance:
• General Insurance
• Life insurance
GENERAL INSURANCE
Insurance of the non life assets are called general insurance, this includes
loss of asset against water, fire, earthquake etc. With the opening up of the
Indian Market in Insurance sector for private players, in General Insurance
the monopoly of the general Insurance public sector’s companies has been
broken. With the entrance of the new private player market innovative
technique has been introduced to capture the market. In general Insurance
around 17% of the market has been captured by the private players.
• HDFC Chub
LIFE INSURANCE
• Life insurance as risk cover: Insurance is all about risk cover and
protection of life. Insurance provides a unique sense of security that no
other form of invest can provide.
• Tax Benefit: Under the Income Tax Act, premium paid is allowed as a
deduction from the total income under section 80C.
RESEARCH METHODOLOGY
TITLE
OBJECTIVES
RESEARCH METHODOLOGY
All the findings and conclusions are based on the survey done in the working
area within time limit. I tried to select a sample representative of the whole
group during my job training. I have collected data from 100 respondents for
studying Customer Buying Behaviour and Market Segmentation, selected
randomly from different areas in Jaipur such as:
For recruitment of Life insurance Advisors, I have collected data from 200
respondents from following groups:
Chartered Accountants
Tax Consultants
Businessmen
Share Brokers
Lawyers
Working Professionals
House Wives
Retired Persons
RESEARCH DESIGN
Research was initiated by examining the secondary data to gain insight into
the problem. The primary data is evaluated on the basis of the analysis of
the secondary data.
COLLECTION OF DATA
SAMPLING PLAN
SAMPLE SIZE
The mode of collection of data is based on Survey Method and Field Activity.
Primary data collection is based on personal interview. I have prepared the
questionnaire according to the necessity of the data to be collected.
RESEARCH LIMITATIONS
Life insurance came to India from England in 1818 when oriental life
insurance company started in Calcutta by Europeans. After this many
insurance companies had been started in India. But these companies were
looking after only the needs of European community established in India.
Indian people were not being insured by these companies. First Indian life
insurance company came as Bombay mutual life insurance assurance.
Second company was Bharat insurance company came in 1896. After this
the united India in Madras, national Indian and national insurance in Calcutta
and the co-operative assurance in Lahore were established in 1906.
Role of IRDA:
Indian Insurance consumers are like Indian Voters, they are soft but when
time is right and ripe, they demand and seek necessary changes. De-tariff of
many Insurance Products are the reflection of changing aspirations and
growing demand of Indian consumers.
Customers are looking at Insurance for covering Pure Risk now which I have
covered in my next section. Another good reason why we are seeing quick
changes in the buying behavior of Insurance from mere Investment to risk
mitigation is the cost of Replacement of Goods (ROG) or Cost of Services
(COS).
BANK DEPOSITS 39
CORP. BANKS 2
MUTUAL FUNDS 2
NBFC’S 3
GOVT. BONDS 13
INSURANCE 13
CURRENCY 6
Source: www.avivaindia.com
After the Insurance Regulatory and Development Authority Act have been
passed there has been establishment of many private insurance companies
in India. Previously there was a monopoly business for Life Insurance
Corporation of India (L.I.C.) who was the only life-insurance company for the
people till 2000. L.I.C. still holds 71.4% of the market share in 2006. But after
the introduction of private life insurance companies there is a great
competition in Indian market now. Everyone is trying to capture the fresh
market here and penetrate it with aggressive marketing strategies. Today
life-insurance is not only limited up to just life risk cover and maturity period
bonuses but changed to greater return from the investments. With the
introduction of the unit linked insurance policies these companies are
investing the money in different investment instruments like shares, bonds,
debentures, government and other securities. People are demanding for
higher returns with the life risk cover and private companies are giving 30-
40% average growth per annum. These life-insurance companies have every
kind of policies suiting every need right from financial needs of, marriage,
giving birth and rearing up a child, his education, meeting daily financial
needs of life, pension solutions after retirement. These companies have
every aspects and needs of our life covered along with the death-benefit.
In India only 25% of the population has life insurance. So Indian life-
insurance market is the target market of all the companies who either want
to extend or diversify their business. To tap the Indian market there has
been tie-ups between the major Indian companies with other International
insurance companies to start up their business. The government of India has
set up rules that no foreign insurance company can set up their business
individually here and they have to tie up with an Indian company and this
foreign insurance company can have an investment of only 24% of the total
start-up investment.
Today, the Indian life insurance industry has more than a dozen private
players, each of which are making strides in raising awareness levels,
introducing innovative products and increasing the penetration of life
insurance in the vastly underinsured country. Several of private insurers
have introduced attractive products to meet the needs of their target
customers and in line with their business objectives. The success of their
effort is that they have captured over 28% of premium income in five years.
The biggest beneficiary of the competition among life insurers has
been the customer. A wide range of products, customer focused service and
professional advice has become the mainstay of the industry, and the Indian
customer’s forms the pivot of each company’s strategy. Penetration of life
insurance is beginning to cut across socio-economic classes and attract
people who have never purchased insurance before.
Life insurance is also now being regarded as a versatile financial
planning tool. Apart from the traditional term and saving insurance policies,
industry has seen the entry and growth of unit linked products. This provides
market linked returns and is among the most flexible policies available today
for investment. Now products are priced, flexible, and realistic and sustain so
people in better position to understand the risk and benefits of the product
and they are accepting these innovative products.
So it is clear that the face of life insurance in India is changing, but
with the changes come a host of challenges and it is only the credible
players with a long term vision and a robust business strategy that will
survive. Whatever the developments, the future and the opportunities in this
industry will surely be exciting.
And so on…
Japan 8.3
Korea 7.3
Malaysia 3.6
India 3.0
China 1.8
Brazil 1.3
Source: www.indianinsuranceresearch.com
INSURANCE AND ECONOMY
• Indian economy is growing in reference to global market. Business of
insurance with its unique features has a special place in Indian
economy.
• The high volumes in the insurance business help spread risk wider,
allowing a lowering of the rates of the premium to be charged and in
turn, raising profits. When there is a bigger base, the probabilities
become more predictable, and with system wide risks balanced out,
profits improve. This explains the current scenario of mergers,
acquisitions, and globalization of insurance.
• Insurance play a crucial role in the commercial lives of nations and act
as the lubricants of economic activities. Insurance firms help to spread
the potentially financial consequences of risk among the large number
of entities, to mobilize and distribute savings for productive use,
facilitate investment, support and encourage external trade, and
protect economic entities against external risk.
Investment Management:
• Revenue = Premium
• Expenses = (Sum of Claims + Commission payable on
procurement of business + Operating expenses)
Net investment income includes income from trading in and holding stock
market securities including government securities, special deposits with the
central government, loans to several public utilities and service providers in
state government.
Insurance normally insure only pure risks .However, not all pure risk is
insurable .certain requirements usually must be fulfilled before a pure risk
can be privately insured .From the view point of the insurer, there are ideally
six requirement of an insurable risk:
• Term life insurance policies: This type of insurance covers risk only
during the selected term period. If the policy holder survives the term,
risk cover comes to an end. These types of policies are for those
people who are unable to pay larger premium required for endowment
and whole life policies. No surrender, loan or paid up values are in such
policies.
• Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the
policyholder. In this policy the insured amount and the bonus is
payable only to nominee on the death of policy holder.
• Banks: Banks in India are all pervasive, especially the public sector
banks. Many insurance companies are selling their products through
banks. Companies which are bank owned, they are selling their
products through their parent bank. The public sector banks, with their
vast branch networks, are helpful to insurance companies. This
channel of selling insurance is known as Bank assurance.
• Marketing mix.
• Positioning.
• Value addition.
• Segmentation.
• Branding.
• Effective pricing.
• Growth in population.
Core product: In insurance industry the core product is the policy that
provides protection to the customers.
The entry of private players and their foreign partners has given domestic
players a tough time, because the opening up of the sector has not brought
in only foreign players, but also professional techniques and technologies.
The present scene in India is such that everyone is trying to put in the best
efforts. There are marketing strategies more for survival than growth. But
the most important gift of privatization is the introduction of customer-
oriented services. Utmost care is being taken to maximize customer
satisfaction.
• Consumer attitudes.
• Learn how to find a proper perspective and how to turn off all the
signals that cause people not to buy from you.
• Learn how to act when you meet a client for the first time.
• Learn how the order in which you explain the types of policies can
double your income.
COMPANY PROFILE
As stated above Kotak Mahindra Life Insurance has Joint venture with Old
Mutual plc.
Old Mutual Plc is the 12th largest Insurance Company in the world. It has its
base of over 4 million life assurance policyholders. It has one of the best
“Payouts” among insurers in the world. It has one of the best “Solvency
Ratios” among insurers in the world. A FTSE 100 financial services group and
ranks as a Fortune Global 500 company.The Old Mutual group manages in
excess of 239 billion pounds in funds (Dec’06). The company is 160 years old
and has prominent presence in the United States and the United Kingdom.
Now the question arises that why for the business in India of life insurance
Kotak Mahindra chose Old Mutual plc and vice versa.
Term Plans
Endowment Plans
• Employee Benefits
Rural
8 Aviva 1.14
• CFO: G.MURALIDHAR
DIRECTO
R
CFO
APPOINT
MARKETI TRAININ
SALES HR & ED
NG CIO G
HEAD ADMIN. ACTUAR
HEAD HEAD
Y
(JAIPUR BRANCH)
REGIONAL MANAGER
BRANCH OPERATIONS
AREA MANAGER
INCHARGE
OPERATION
SALES MANAGER
EXECUTIVE
ASST. SALES
OPERATIONS
MANAGER
LIFE ADVISOR
DATA VALIDATION
FOR
2.
3. No. of Respondents Holding Kotak Life Insurance
Policy: 2
4.
5.
6.
7.
8.
9.
DATA VALIDATION
FOR
2.
3.
4.
5.
6.
7.
8.
9.
RECOMMENDATIONS
They don’t have Life Insurance cover other than that provided by
their respective employers and LIC.
Most of them are underinsured.
CONCLUSIONS
During the data collected, it has been found that people have great
awareness about various companies but a lot more has to be done,
especially by smaller companies like Kotak Life Insurance to establish their
market presence.
People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money.
People in general have been influenced by the marketing activities of
insurance companies. A high penetration of print, radio and TV ad campaigns
over the years is beginning to have its impact now.
The general satisfaction levels among public with regards to policy and
agents still requires improvement. Here lies the opportunity for a relatively
new comer like Kotak Life Insurance. LIC has never been known for prompt
service or customer oriented methods but Kotak Life Insurance can build its
reputation based on these factors.
CUSTOMER BUYING BEHAVIOUR –
QUESTIONNAIRE
Dear Sir/Madam,
I assure you that your identity shall not be disclosed and the data shall be
used only for academic purpose.
QUESTIONNAIRE
a) YES b) NO
Q 2) Are you aware about the Life Insurance products or will
prefer to purchase the Life Insurance products of (mark √):
• LIC
__________________________________________________________________
_
c) 10 – 20 years d) any
other_______________
c) Investments
Q6) Which feature of Life Insurance policy will you consider while
buying?
c) Low Premium
d) Company’s Credibility
Q7) How have you bought / would buy a Life Insurance policy?
a) < 25 years b) 25 – 35
years
e) Anytime
THANK YOU
Respondent’s Profile
(Optional):
• NAME:
• AGE:
• GENDER:
• EDUCATIONAL QUALIFICATION:
Dear Sir/Madam,
______________________________________________________________
QUESTIONNAIRE
• Undergraduate
• Graduate
• Post Graduate
Q3) Occupation
• Business
• Profession
• Service
• Any Other
_____________________________________________________
(Please mention below the type of business/ profession you are in,
in case of service please mention your organisation name and
designation)
_________________________________________________________________
• < 2 lakhs
• 2 – 5 lakhs
• 5 – 10 lakhs
• > 10 lakhs
• No Idea
• Yes
• No
• Yes
• No
_______________________________________________________________
• Yes
• No
Q9) How much time can you spare for this business opportunity?
THANK YOU