A PROJECT REPORT ON SALES AND DISTRIBUTION IN ICICI PRUDENTIAL LIFE INSURANCE Submitted To OSMANIA UNIVERSITY

In Partial Fulfillment of Requirements for the Award of Master of Business Administration By N. SATISH RAO H.T.NO: 02607150 UNDER THE GUIDANCE OF (MARY RAJAMANI) PRIYADARSHINI COLLEGE OF BUSINESS MANAGEMENT
(AFFILIATED TO OSMANIA UNIVERSITY) AMEERPET, HYDERABAD

2007-2009

Declaration

I N. SATISH RAO student of PRIYADARSHINI COLLEGE OF BUSINESS MANAGEMENT pursuing M.B.A course here by declare that the project work entitled ICICI PRUDENTIAL LIFE INSURANCE is an original work carried out by me, availing the guidance of my project guide. This report bears no resemblance with any other report submitted to OSMANIA UNIVERSITY for the award of degree.

Station: Hyderabad Date: (N.SATISH RAO)

ACKNOWLEDGEMENT

I express my sincere thanks and gratitude to Mr.M.CHAITANYA KRISHNA (Marketing, Manager) of ICICI PRUDENTIAL LIFE INSURANCE for providing me an opportunity to carry out the project in esteemed organization. I would like to express my immense pleasure and satisfaction in expressing thanks to M/s.VIJAYANIRMALA principal, and my guide Ms.MARY RAJAMANY, HOD of MBA department and faculty of Marketing, and also other faculty members who have given their valuable guidance I would like to thank for all those who helped me directly or indirectly for successful completion of my project.

Mr.N.SATISH RAO

ABSTRACT

The project intends to give a good understanding of the SALES industry, comparison with other investment avenues, various factors affecting SALES, and at last it attempts to compare the standing of ICICI PRUDENTIAL Life Insurance in relation to other players and the benefit of recent acquisition of ICICI PRUDENTIAL Life Insurance. Chapter- 1 Deals with Introduction, research methodology and data sources of the project and objectives. Chapter- 2 Deals with Introduction on the insurance Chapter- 3 Deals with Different Prudential Life Policies Chapter- 4 Deals with The sales process in ICICI. Chapter- 5 Deals with Data Analysis Chapter- 6 Deals with Suggestions and conclusions Chapter- 7 Deals with Questionaries

TABLE OF CONTENTS

S.NO: I II III IV V VI

PARTICULARS Introduction of the study Introduction on the insurance Different Prudential Life Policies The sales process in ICICI Data Analysis Conclusions and Suggestions Questionaries Reference

PAGE 1 29 42 52 57 75 78 80

List of Graphs

S.NO: 1 2 3 4

NAME OF THE GRAPHS Demographic segmentation of the respondents No. of respondents in insurance company No. of respondents insured in insurances company . No. of respondents why they have taken up any

PG.NO: 57 64 65 66

insurance policy. 5 6 7 8 9 10 11 12 13 No. of respondents in ICICI Prudential Life insurance Co.. No. of respondents heard about us. No. of family members constitute insurance policy. No. of respondents have plan to interest in insurance in future. No. of respondents annual income. No. of respondents interested in working for ICICI Brand Educational Background of respondents Opportunity of working hours in ICICI Respondent expectation for job. 67 68 69 70 71 72 73 74 75

CHAPTER-I INTRODUCTION

Sales & Distribution

How Your Products and Customers Meet

There are many factors to consider in the area of sales and distribution. You need to have a wellthought-out plan of conducting the sale and delivering ("distributing") your product to the customer. Think through answers to the following questions for starters Is your sales approach highly persuasive and emotional? Or, is it informational and lowkeyed? See The Sales Process - Selling "101" for more information.

What is the average length of the sales cycle? See The Sales Process - Selling "101" for more information. How many products can you produce in what time frame? How many products can you store, or what is your inventory capacity? Use sales forecasts to decide what your inventory levels should be in order to meet customer demands. How often will you "turn" or replenish your inventory? How does this compare with the standards in your industry? What are the cyclical fluctuations or seasonal changes that affect the demand for or production of your products? For example, if you produce Christmas decorations, how will you manage peak production and sales periods as well as slow periods? Describe your distribution channel. In other words, how will your products be delivered or distributed to the customers? 1 For relatively small sales, such as selling your paintings through a local gallery, the distribution method is such a routine part of the sales contact that it requires only a small amount of thought and description. (In this scenario, the painting is displayed and stored at the gallery, the sales approach is probably low-pressure and informational, and the painting is given to the customer at the time of the sale.) At other times, such as when an order is taken over the Internet and the product is mailed, more planning and description of the entire approach is in order. Types of Sales Transactions Some of the major categories of sales and distribution channels are named below. You may use

one, more than one or various combinations of sales and distribution methods. Additionally, different products from the same company may require different methods.

Direct Sales - Your company sells directly to the customer or end user of the product. There is no agent between your company and the customer. Providing financial planning services to individuals is an example of direct sales. Catalog sales or sales over the Internet are also examples of this method.

Indirect Sales: Retail - Your company sells to a retailer whose salespeople then sell to the customer. Selling organically grown herbs to a local grocery store is an example of indirect sales.

2 Indirect Sales: Wholesale - Your company sells to a wholesaler or agent who sells products to retailers. The wholesaler most likely represents several companies. (It's more efficient for the retailer to have one source for many products instead of dealing with an unwieldy number of individuals.) Selling novelty pet accessories to wholesalers who resell to a variety of pet care stores, animal clinics and other retail outlets is an example of selling to wholesalers or agents.

Indirect Sales: Multi-level Marketing - You sell both directly to customers and to other sales people you have recruited to sell products. Amway is one of the more recognized

examples of this method. You will determine which interface between your company and the prospective customer is appropriate depending upon your objectives.

What are the characteristics of your target market and how large is the market for is product? For example, for a high-priced product with a small number of potential buyers, the direct sales approach with plenty of service is probably best. For a low-priced product that appeals to the mass market, like chewing gum, an indirect selling approach is fine as long as it is supported with advertising and effective placements in retail stores so customers can find it easily.

Where are the customers located? Sales through a local retail outlet may be your best distribution method if you have a large number of customers located in your area. However, a small number of geographically dispersed buyers may require you to sell to an agent or wholesaler who, hopefully, will provide the needed individual attention. Industrial purchases are made directly from a manufacturer or manufacturer's representative in most cases.

How large are the orders? You might segment your customer base by order size and sell directly to customers placing large orders and use an indirect sales method for small orders.

Product Availability

At first glance, you might think this is a no-brainer; the more convenient and available the product is, the better. This isn't always true, though. Often, it's better to be more selective, even exclusive, about sales locations for your product. Take every opportunity to think strategically!

The Sales Process Most business owners would like to focus all their energy on daily business operations and serving existing client demands. It's critical to your success, however, to focus on gaining new business from current and potential customers in order to grow and sustain your company. In fact, successful entrepreneurs spend about 40 percent of their time in marketing and selling activities.

Selling: It's a Process If you've moved from an "employee" role that didn't involve much selling to owning a business, you've probably had little exposure to the process of selling. If you're new to it, check out the sales tips included in 100+ Marketing Ideas. If you're experienced in sales, you might want to take a moment to glance over the information here to energize your sales skills. The selling process has six key steps. Virtually every sales interaction will follow these steps,

whether it lasts several minutes or several months: Prospecting Initial Contact Sales Presentation Handling Objections Closing the Sale Follow-Up and Service after the Sale 5

Step One: Prospecting Finding qualified prospects for your products or services is the natural first step in the sales process. Click here if you want more information or ideas for "finding qualified prospects." Once you've identified prospects, you'll want to learn all you can before you approach them. "Fact finding" will help you: determine your sales approach and plan your sales calls determine which products and services best suit particular prospects uncover reasons why you should not pursue some prospects, saving you valuable time and resources.

Step Two: The Initial Contact

When the prospect initiates the contact - Prospects will visit you during normal business hours if you have a store or business location. If you do not have a store, they might contact you by phone, mail, email, or through your Web site to request information, ask questions and/or to make a purchase. Prospects might also call at odd hours to find out when you're open or where your store is located. Be sure your answering machine message, answering service or Web site answers these questions. 6

When you initiate the contact - One of the most common initial contacts is a "cold call" conducted by phone or in person. A cold call refers to a contact made with prospects who have not indicated they desire the call. It's obviously much more efficientand most say more successfulto conduct cold calls on the telephone rather than to drive around town, but you might have a reason that warrants an in-person cold call on occasion. These tips may help you turn cold calls into warm prospects: First, determine your objective and the purpose of your call. Your purpose may be to make an appointment, to inform, to question, to talk to a certain person, to sell, etc. Additionally, determine if you want to close the sale on the first call or simply pave the way for a later call or sales presentation. Try to do a little homework before the call. If you know someone who may have insight or

information about the prospect, call him or her. Send a fax or mail some information prior to the cold call. Reference the information in the call, but don't open with, "Did you get the information I sent?" This allows the prospect to simply say, "no," just to get you off the phone. Instead, try something like, "I sent you some information by fax yesterday; I'm following up to provide additional information . . ."

When you're ready to make the call, make sure you have all the materials you need at hand. For example, if the purpose of your call is to make an appointment, have your appointment book open and a working pen or pencil in front of you. State your purpose quicklywithin 15 seconds. Get prospects interested by asking questions that make them think. Make statements that build rapport and confidence. Use humorpeople love to laugh. Be sincere. Be friendlypeople like to buy from people they like. Keep your eye on the prizenever lose sight of your objective, regardless of the outcome of the call.

Step Three: The Sales Presentation

Many sales people feel the most exciting part of the sales process is presenting products or services to prospects. Finally, the vast amount of knowledge you have about your products, services and your company comes into play!

A few tips from sales pros about sales presentations are listed below: Don't be afraid to be excited about your product. If you're not, your prospect certainly won't be! During presentations, focus on the benefits of your products and services. Benefits are different from features, which are characteristics such as size, color and functionality. Benefits answer the customer's question: "What's in it for me?" Benefits are what cause people to buy. Set objectives for sales calls. Write the objectives on index cards and keep the cards handy to make notes as you think of items to add. Be on time for sales appointments. If you are unavoidably delayed, call before the appointment to let the prospect know your estimated time of arrival. Be prepared for your call. Have your sales kits, sales tools and answers ready.

Be relaxed during sales calls. If you're tense you might make prospects uncomfortable, which is a state that's not conducive to buying! Let prospects talk 90 percent of the time; they'll tell you how to sell to them. You just need to listen. Use testimonials. Your best selling tool is a reference from a satisfied customer. Don't be afraid to ask for the business. Invite prospects to interact with products. For example, encourage customers to try a watch on, operate a device or smell the bubble bath.

Limit the choices during a sales presentation. Most experts advise sales people to show prospects only three options at a time. Too many options may prove overwhelming and prospects won't choose anything! Adapt your sales presentation to your prospect. For example, a travel agent would provide different types of information about a cruise package to a couple going on their first cruise than to a couple that has been on dozens of cruises. Rate yourself after sales calls. Determine what you did well and what you need to improve upon. Develop action steps for improvement. Always follow through on promises. Determine your prospect's hot buttons and work them into your follow-up plan. Follow up, follow up, follow up. It often takes five to 10 exposures to get a sale.

Step Four: Handling Objections

During the sales process, you'll probably meet a familiar obstacle: the objection. Objections are prospects' statements about why they don't plan to buy your product or service It may be a statement such as, "I don't need that service right now," or, "I already buy those products from ABC Company." Don't be afraid of an objection; it's simply part of the sales process. In fact, objections oftentimes are a signal that the sale is progressing and you're getting closer to "yes." Objections are oftentimes a prospect's way of saying: "I'm not convinced yet; but I could be!"

10 Anticipate objections. Rehearse answers to standard objections. Learn to ask questions of prospects to drill down to their real objections. Here are a few proven techniques for overcoming objections. Remember to treat every objection with respect and diplomacy. Employ the "yes, but" technique. Agree with your customers (the yes) and then offer them new information (the but). Question prospects when they make statements about why they won't buy or what they don't like about your product. Ask "why" they feel as they do; this will help you get to the root cause of their concerns. Restate the objection so the customer can hear it. This tends to reduce the magnitude of an objection or allows prospects to modify your statement (really theirs) to get closer to the true objection.

Tactfully respond directly to the customer's statement. You might even contradict your customer. Use this approach carefully, however. It will offend some while proving to be the best approach for others. Step Five: Closing the Sale Although you should never be shy about "asking for the business," prospects will probably give you some signals when they are ready to become customers! Familiarize yourself with the following readiness signals: Asking about availability such as, "How soon can someone be here?" Asking specific questions about rates, prices or statements about affordability. Asking about features, options, quality, guarantees or warranties. 11 Asking positive questions about your business. Asking for something to be repeated. Making statements about problems with previous vendors; they might be seeking reassurance from you that you won't pose the same problems. Asking about follow-up service or other products you carry. Requesting a sample or asking you to repeat a demonstration for them or for others in their company or family. Asking about other satisfied customers. You should have a list of satisfied customers ready to give to prospects who ask. (Make sure you've already contacted your customers and gained their approval for providing their names!) You might try these techniques to help prospects make the decision to buy. Quit talking when you ask a closing question. Give prospects the opportunity to say "yes!"

Offer an added service, such as delivery. Offer a choice, such as "would you prefer the blue or green one?" Imply that you have the sale with positive statements such as: "I'll have it gift-wrapped and delivered for you." Offer an incentive such as a 10 percent discount for purchases made now. Create an urgency because the item is the last one in stock. (This better be true!) Lead the customer through a series of minor decisions that are easier to make rather than one large decision. For example, a travel agent may get to "yes" through a series of questions such as: "Would June or July be best for travel? Would your prefer a five-day or seven-day cruise?" 12

Don't give up too soon! Learn to understand prospects' buying styles; some people take longer than others to make a decision. And don't forget, you can ask for the order more than once if necessary. Step Six: Follow-Up and Service after the Sale

Congratulations! You've made the sale. Now what? Some sales people believe that follow-up after the sale is just as important as making the sale. That's when your relationship with a customer really takes hold. Building long-term relationships with customers allows you to leverage or make additional use of your initial investment of time and money spent selling to that customer. In other words, you don't

have to spend time prospecting, qualifying and conducting other pre-sales activities for that particular customer again. You've heard it before: "There's no better advertising than a satisfied customer." Good follow-up and service after the sale will: establish and maintain your good reputation, build goodwill among customers and in the community, and most importantly, generate repeat and referral business. Finally, a few more tips from the sales pros: Continuously improve your sales skills, learn from others and stay open to new ideas.

13 Be sincere about your desire to help the prospect firstmake money your secondary objective. This attitude will come through in every encounter and will help you build long-term relationships. Make yourself a value-added resource. Become indispensable. Make industry news updates, creative ideas, and business advice part of the service you offer. Be direct with your communication. Beating around the bush only frustrates people. Answer all questions. Never patronize. Enclose your business card with every letter and note. Thank people who refer prospects to you. If the referral results in business, send a thank-you gift also. (Make the gift appropriate for the value of the referral. Free or discounted services from you is often a welcomed gift.) Give your customers your home phone number. Your phone will seldom ring, but the gesture

will make a great impression. Never lie. Don't badmouth the competition or say negative things about their clients. Relationship Marketing The selling process never ends! In fact, your relationship with a sales prospect, who is now your customer, should continue to grow.It's far less expensive to cultivate your existing customer base and sell more services to them than it is to seek new, single-transaction customers. Focusing on customer needs, through relationship marketing, is a proven method to keep the sales rolling in. You'll need to continue to seek new customers, of course. Just don't overlook the untapped potential of your existing ones!

14 Relationship marketing also increases the return on your sales investment. (Even if all you had put into previous sales efforts was time, that's valuable too!) When you sell an additional product to an existing customer, you don't have to repeat preliminary steps such as prospecting, rapport-building and information gathering because you're working upon a foundation that's already been laid. So, repeat sales are less expensive to obtain than new sales. Follow these tips for relationship marketing: Listen to customers. They'll tell you what they need from you if you'll just take the time to listen and make them feel comfortable. If they don't volunteer information, ask questions to uncover their problems and needs. Then, focus on solving problems or meeting needs rather than selling them another product. They'll appreciate your interest and you will, most likely, make a sale in the long run. And, even if you don't make an additional sale, customers may refer you to someone else based on the excellent service you've provided them.

Be honest. Don't try to sell something that's not needed. Likewise, if you can't fulfill particular customer needs, tell them, and try to help them find someone who will. Your helpfulness will be long remembered and those customers are more likely to come back to you when they need your type of product or service again. One relationship-building tactic is to "get in front of your customers" through the mail. You might want to send the following: Thank you notes for orders, referrals or continued business. Short notes about positive meetings or phone calls. A newspaper or magazine article about a customer's business. Articles or information about a customer's competition. An announcement of your new product or service. (Don't forget to focus on its benefits.) 15

A notice of a special sale or offer. Include coupons for customer discounts or invite customers to special "pre-sale" days. A newsletter from your company. Include beneficial tips and information for your customers. A hot lead. (Your customers are in business to make sales, too!) A notice of a meeting or seminar of interest. A reminder of a pending order or reorder. (You just might help them avoid a costly lack of inventory.) And finally, a few tips on correspondence to prospects and customers: Get to the point in the first sentence and limit letters to one page. Use personal, hand-written notes when possible. Use a P.S; it's always read. Spell correctly. In thank-you notes, don't thank more than once. You could close with, "Thank you again for your business." Once is enough. The Online Women's Business Center thanks Dianne Ogle, owner of Marketing Makes It! for her

contribution to the above article. Product Features & Benefits Products may be described in terms of their features and benefits.

Features are product characteristics that deliver benefits; we buy products for their benefits. Stated another way: Features are product characteristics such size, color, horsepower, functionality, design, hours of business, fabric content, etc. Benefits answer the customers question: Whats in it for me? This distinction is further illustrated in the following table: 16

A feature is. . . Physical size

A benefit is. . . Its small enough to fit in your raincoat pocket.

A 75 horsepower motor

A power that takes the work out of yard work.

Patented spring design

box

A restful night's sleep.

While product features are usually easy to detect and describe, product benefits can be trickier because theyre often intangible. The most compelling product benefits are those that provide emotional or financial rewards. Its not the brighter smile that the toothpaste offers that is its benefit; its what the smile might bring you. (A good-looking mate, a better job, etc.) Emotional rewards run the gamut of human emotions but basically allow the buyer to feel better in

some way. For example, sending flowers to a friend or family member allows the buyer to express love. Buying products made from recycled materials offers the buyer the chance to be environmentally responsible. Products that deliver financial rewards allow the buyer to : Save money (a discount long-distance phone plan) Make money (computer software for managing a home-based business) Gain convenience and time (microwaveable meals). Discovering Your Product's Benefits To identify your products benefits, you must consider the customers viewpoint. Besides putting yourself in your customers shoes mentally, talk to or survey them asking them to identify your products benefits. They might provide you with information you never thought about!

17 Look at who has purchased your product in the past. What does that customer profile tell you about your products benefits? Going forward, you might set up a few systems to develop and track product benefits: Ask customers for suggestions for improvement. Pay attention to customer complaints and prospect inquiries. Be open to what your customers say. Go so far as to train and reward employees for questioning customers and prospects to learn what they want and what they dont like about your product. Analyze and learn from this input. Watch your competitors. Do the changes in their product offerings suggest desired product benefits? Why is it important to understand what my products features and benefits are? Understanding product features and benefits allows you to do such things as: Describe your products in marketing collateral, publications or in a personal selling situation in a way that is most relevant to customers. Differentiateexplain how your product is different ("better") than the competitions.

Use a variety of pricing and positioning strategies effectively (see several strategy ideas below in "Strategies that are based upon features"). Differentiation Products may be highly unique (specialty products) or virtually indistinguishable from competitors products (commodity products)and anything in between. Specialty products are not necessarily better than commodity products, but they do require different marketing strategies. A potentially important strategy for specialty products is differentiation. A company differentiates its products when it sets them apart from the competitors products in the minds of customers. Having a thorough understanding of how your products benefits compare to your competitors allows you to compete with them through differentiation.

18 -------------------------------------> Specialty Products Highly unique features compared to other products competing for buyers' dollars

<------------------------------------Commodity Products Few, if any, perceived differences among competing products Strategies that are based upon features

Introducing - Being "the first" to offer a new product feature is a proven competitive strategy. For example, being known as "the first" organic body lotion to have Vitamin E will position your company as a leader, at least for a while. Improving/Modifying - Instead of being at the head of the pack with a totally new feature, you might simply modify and/or improve your products features. "Improving" your product creates the impression that your company cares about satisfying its customers. Modifying product features is a strategy many businesses use to compete with a

competitor who lowers their price. For example, if the maker of one organic body lotion lowers its price, the maker of another may add Vitamin E as a "new improved" feature but keep its price the same. Dont forget that modifying features usually leads to changes in benefits. Stay on top of knowing the perceived benefits your product offers so you can communicate them in your marketing messages. Grouping - Oftentimes, features are "grouped" into different product modelsand prices starting with a basic model to a "fully loaded" model. Automobiles, many electronic devices, even vacation packages offer a variety of features to add to a basic product model. This can even be true of services. For example, if you're an accountant you might offer a certain fee for preparing annual tax returns, another fee to additionally process payroll, and another to manage all of a client's financial affairs. 19 Marketing Collateral Brochures, Fliers and All That Stuff Marketing collateral is a term used for printed materials used to present information about your business and its capabilities, products or services. It can include brochures, fliers, fact sheets, direct mail pieces, and other communications pieces that are produced directly by the company. All of your company's printed pieces should be in tune with your overall marketing message and company image. When planning the production of marketing collateral, special consideration should be given to the following elements: Design and Layout Is the material visually attractive and appealing? Does it invite the reader to open it or read further? Do the design and layout components complement the message? Formatting components of design and layout include: balance

white (or empty) space font types colors paper stock paper size graphics illustrations photos charts

You may use product photos or illustrations in marketing collateral. Graphs, charts or other graphics also help to visually communicate messages.

20 Message and Written Text Is the information accurate? Is the collateral piece easy to read? Are the sentences simple and clearly written? Is the text grammatically correct? Does it spark the reader's curiosity? What is the implied tone of the message? Is the tone appropriate for the audience and does it reflect well on your company? Does it communicate the benefits of doing business with your company? Does the message ask the reader to respond? Does it tell the reader how to contact you? Management Issues What is the specific marketing goal for the collateral piece? Who is the intended audience? Does the production cost fit within your budget? What is the production schedule? Is the timing appropriate? Does it complement your other marketing materials? How and when will you distribute collateral pieces? If you're planning to mail collateral, does it comply with post office mailing

requirements? When preparing your written communications, think creatively! Use key terminology (words and phrases that catch your prospect's eye) and catchy slogans. What distinguishes your business from your competitors? Highlight the benefits your company offers. You might want to make a special pitch and offer an incentive for readers to respond. You might also include testimonials, sample listings of clients, awards and honors you have received. Types of Marketing Collateral Brochures are usually printed on 8 1/2" x 11" paper folded in thirds or 8 1/2" x 14" paper folded in quarters. Brochure contents range from information about your company to specific product features and benefits. It may be appropriate to place all of this information in one brochure or to create a family of brochures for individual products. Individual businesses and budgets guide this decision. Business Cards, usually printed on 2 x 3 1/2" card stock, contain all necessary contact information, including email addresses and URLs. Fliers are usually single sheets printed front and back, and used for inexpensive distribution. Fliers are frequently used to announce a sale, open house or other limited-time event. Slip sheets are mini-fliers typically designed as a mailing insert or to leave as a "take-one" counter display. Slips sheets may be inexpensively produced "three up" or three slips on single sheets of 8 1/2" x 11" paper. (Each slip, when the paper is cut, is then about 3 1/2" x 8 1/2.") 21 Direct mail pieces vary in shapes and sizes but usually conform with standard mailing requirements. A direct mail package may include a marketing letter and/or brochure. Typical recipients of direct mail are customers, individuals on purchased mailing lists or individuals on mailing lists the business itself has developed. See Direct Mail - Secret Weapon for Small Business for more information. Marketing letters, usually included with direct mail pieces, may be used as a written introduction or follow-up to a sales call. Catalogues vary in length from just a few pages to hundreds of pages. They typically showcase products through photographs or illustrations and provide product descriptions and prices. Creating a Company Image A company image is an intangible item (you can't touch it or feel it), but it's as important, if not more so, than the raw materials you fashion into a tangible product, machinery you use to make products or your product inventory. Established company images can be changed and shaped through planned, consistent marketing strategies. Creating a company image is similar to gardening. You can do nothing and most likely something will grow, from pleasant wildflower s to ugly weeds. Or, you can carefully plan and tend to your garden to create any number of landscapes such as a rock garden, flower garden, cactus garden, etc. Just as certain plants compliment each other to create a pleasing whole, your marketing strategy, communications, and product and market positioning should work together to

create the image you desire. To get started on creating your company image, analyze how your company and its products are the same and different from your competition. You might conduct a survey to learn what image your target audience currently holds of you and your business Based on the feedback you've gathered, develop a plan to change or to continue to support your company image through all your communication efforts. Consider these items when establishing or changing your company image. Marketing Communications - Make sure your brochures, advertisements, product packages and business cards reflect your image. For example, a children's party planning service might create materials that look fun and youthful by using bright colors and cheery images. Pricing Strategy - You might think the "cost-plus-profit" formula or what your accountant tells you are the best methods for setting prices for your products and services. But your desired company image has an impact here, too. Do you want to be the price leader with the lowest price in town? Or, do you want to focus on exceptional customer service at a slightly higher price? 22 Sales Strategy - Gimmicky, high-energy sales pitches work well for some products or services, but don't fit a sophisticated marketing service firm's image, for example. Align your sales strategy and tactics with your company image. Customer Service - Your customer service policies, such as your merchandise return policy, impacts your image. Nordstrom, a retail chain, is famous for its "we'll take anything back" policy. Company legend tells of an employee that gave a customer a refund for returned auto tires. But, Nordstrom doesn't sell tires! Through this policy, Nordstrom has created an image that it will do anything to please its customers. Make sure your customer service policies are consistent with your desired image. Publicity - Are your focusing your publicity efforts on publications that match your image? For example, the owner of a luxurious bed and breakfast would focus publicity efforts on magazines such as Town and Country rather than publications appealing to bargain shoppers. Promotions - Match the promotional events in which you participate to your image. For example, if you own a wedding planning service you might sponsor or participate in a

wedding gown fashion show. A four-star restaurant might support the local opera or symphony (or advertise in event programs) because people frequently enjoy a meal before or after these events.

23

INTRODUCTION TO MARKETING The word market is often misused and therefore misunderstood. It is used instead of the word selling is done in a more grand or better way. A market is a place where are bought and sold, arena for exchange. In its broadest sense, marketing should mean the study of market. Marketing is a compressie team it includes a group of business activities in to create and promote consumer demand and to direct the flow of goods services from the original producer to the final consumer in the process of distribution. American marketing association defines marketing as, the performance of business activity that direct the flow of goods and services from the original producer to the final consumer in the process of distribution. Philip Kotler defines marketing as the Human activity directed at satisfying needs and wants through exchange process. From the aboe definitions, it is obvious that traditional description of marketing was mainly concerned with the physical movement of goods, while the modern concept of marketing is consumer oriented. It makes customer the focus of all business activities. Thus one can say that marketing both begins and ends with the customer. OBJECTIVES OF MARKETING:

1To determine the needs and wants of various elements of the market. 2To learn the various competitive offerings available. 3To identify the most appropriate and spread of products or services for consumption by the market. 4To identify the way in which the needs and wants of the market. 5To know the market potentiality of the brand. MARKETING RESEARCH The business environment in India is full of opportunities. For successful business, market research system is most important. Marketing research can be defined as the systematic gathering, recording and analyzing the data about the problem relating to marketing of goods and services. Good communication and coordination are essential if research , objectives are to be clearly stated.

24 If the project is to be carried out efficiently and if the findings are to be effectively in the decision making . the marketing manager of today is being to be called up on to be well inform cocering a number of new techniques, which are being used. Effective decision concerning the use those methods require the marketing researcher and marketing manager to be well versed in the methodology assumption, imitation and plications of such methods marketing research helps a firm to identify and solve problems: to identify and evaluate market opportunity and to develop the effort needed to exploit it . Marketing research is useful in wide varities of activities. This are sales forecasting ,measuring marketing share, identify the market trends, measuring company and brand images, developing target, coustmer profiles designing product and packages, locating warehouse and store processing orders, managing inventory, analyzing demand ,measuring price perception and advertising effectiveness, analyzing audience chacterstics and scheduling advertisings. Requirement of customer oriented market mix are to verify target coustmer and to know they wants. Steps in conducting Marketing Research

1Proper identification of the problem: The nature of the problem are opportunity should be communicated and defined.this is the first in the process finding a solution. 1Establishing the hypothesis: Hypothesis is tentative to explanation of a problem formulated and the basis of insight knowledge about the problem. They hypothesis may prove to be either right or wrong. 1Methodology and definition: The formulation of research design deals with defining concepts and variables. The meth odology for any research study is drawn on the basis of carefull examination of the available literature. This also depends to a large extent on the imagination. Long term vision and proper understanding of the researchs 1Data collection: Researchers used primary and secondary data for their research. Primary data are generally for a specific problem. This are totally originally and are generated by originally research work. Secondary data on the other hand, are already in existing form. This data are gathered by people who are working either within the firm or outside firm to meet their needs. 25

1Analysis of the data and presenting the findings: The collected data must be edited and coded to facilitate the analysis of the data. The analysis involves the transformation of raw data into an understandable form for the purpose of interpreting the data. The researcher should present the major findings that are relevant to the major marketing decisions facing the management.

IMPORTANCE OF MARKETING RESEARCH 1To ascertain the needs of existing and new coustomers discover by the help of marketing research. 2To avoid complaints from the consumer about the inadequacy of the product. 3To determine the total sales. 4To determine the popular brands in the market. 5To understand the need giving more or complete services or to cover the consumer needs by developing inside range by complementary or associated products.

6To determine the brand awareness of various brands available in the market 7The increasing importance of marketing research is based on the following trends : Shift from local to national and international market transition from consumer needs to consumer wants. Shift from price competition to non-price competition

26 INTRODUCTION OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period April-December 2004, the company garnered Rs 8.6 billion of new business premium for a total sum assured of over Rs 73.6 billion and wrote nearly 345,000 policies. The company has a network of over 50,000 advisors; as well as 7 bancassurance tie-ups. Today, ICICI Prudential has emerged as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ABOUT PRUDENTIAL

Origins When Prudential was founded in London in 1848 it provided professional people with loans secured by life assurance. The market was later broadened when insurance policies, with penny premiums collected by agents, were sold by the industrial branch to the working classes in the second half of the nineteenth century. Industrial assurance was an innovation in insurance. The actuarial methods that until then had been applied to insurance for the better off social classes were combined with the traditional method of direct selling through agents that had successfully been used by friendly societies and burial clubs. The Prudential brand values of integrity, value for money and security were established and built the company's reputation. Success in this market meant that by the 1900s Prudential insured one third of the UK population. 27

Expansion Over the decades Prudential has extended the product portfolio to meet customers' needs. Following the First World War new policies for single women, family and home protection were introduced. The establishment of group pensions in 1929 added a further range of products to the business. During the 1950s and 1960s, Prudential's ordinary branch focused on life cover, long term savings products and retirement annuities. The focus on adopting new sales and marketing techniques to promote products dominated the 1980s. The sales force was restructured to deal better with customer needs and new channels of communication were opened through telephone sales and Independent Financial Advisers. The 1990s saw further diversification of products and methods of communication. In 1997 Scottish Amicable was acquired, strengthening Prudential's position in the IFA sector. Recent Events Prudential's UK business has undergone a strategic review to meet customer's changing needs including the closure of the direct salesforce, the transfer of our general insurance operations to

Winterthur Insurance and the relaunch of a single UK brand with the award-winning Plan from the Pru campaign, an impartial guide to financial planning.

28

CHAPTER-II INTRODUCTION ON INSURANCE

THE CONCEPT OF INSURANCE

The business of insurance is related to the protection of the economic value of an asset for which a normal life time exists during which it is expected to perform. However if the asset gets Damaged, Destroyed or is made non functional by the occurrence of some unfortunate event the owner of the assets suffers .Insurance is a mechanism to reduce the financial implications of such consequences. The mechanism involves people who are exposed to the same risk come together and agree that if any one of the members suffers a loss the others will share the loss and make good the loss. Thus people facing common risk come together and make their contribution towards a common fund whose amount is determined beforehand on the basis of past data and experiences. The fundamental underlying principle of insurance is 1Losses must be definite and discreet in time and place 2Losses must not be fortuitous accidental in nature and beyond the control of the insured 3Losses must be large enough to cause a financial burden 4Losses must be measurable or calculable and a monetary amount should be determined to compensate the loss

5Past history of the specific losses should exist to help the actuaries to estimate frequency severity and costs involved and determine fair rates of insurance. 6The cost of insurance should be affordable by the parties and should be a fraction of the value of the insured Item. Thus we see that a large number of homogenous units (people .companies, Entitles) with a similar potential for loss exposure must be available for insurance and this is generally referred to as The Law of large numbers.

29 Life Insurance Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. That, perhaps, was how insurance made its beginning. Life insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet the funeral expenses of its members as well as help survivors by making some payments. As European civilization progressed, its social institutions and welfare practices also got more and more refined. With the discovery of new lands, sea routes and the consequent growth in trade, Medieval guilds took it upon themselves to protect their member traders from loss on account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. Essentially, all these revolved around the concept of insurance or risk coverage. That's how old these concepts are, really. In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.

The first step... Insurance as we know it today owes its existence to 17th century England. In fact. it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies. Enter companies...

30 The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups. Life Insurance in India Although insurance in its present form has been brought to India by the British and other colonial powers the concept of collective co-operation to share a particular risk is as old as the dawn of human civilization. India was a major trading power in ancient times and some examples of sharing risks can be found such as ships carried cargo of several traders together instead of a single individual. In the Mogul army a life annuity was granted to the family on the demise of a soldier against some regular contribution in his life time. The Joint family system of India is also an embodiment of the same concept. Early attempts

Life insurance in its modern form came to India from England in 1818 with the formation of the Oriental Life Insurance Company in Kolkata and with the passage of time Indians were also covered by this company. By 1868 there were 285 companies operating in India and were primarily into insuring the European lives, those Indians who were offered were charged an extra premium of 15 to 20% and treated as substandard lives. First Indian Company The first insurance company under the title "the Bombay life insurance society" started its operations in 1870 and started insuring lives of Indians at standard rates. Later "oriental Govt. life insurance co." was established in 1874 which emerged as the leading insurance company in India. 31 Pre Independence history With the various freedom movements various leaders encouraged domestic life insurance companies to enter the fray. In 1914 there were only 44 companies and in 1940 this number grew to 195.From here on the growth of life insurance was quiet steady except in 1947-48 during the partition of India. Nationalization of Insurance Business 1956 After Independence our nation was moving towards a Socialistic pattern of society and with the main aim of spreading the concept to rural areas and to channel the money into nation building activities the government of India Nationalized the life insurance business and formed "The Life Insurance Corporation of India" by merging about 250 life insurance companies. The Life Insurance Corporation of India started functioning from 1.9.1956 and is today the largest insurer in the country with one central office, seven zonal offices and over 2048 branch offices with a workforce of 125000 employees and over 800000 life insurance agents. Evaluate your life insurance needs

Life Insurance is one of the most popular savings/ investment vehicles in India. Ironically, its probably the least understood too. An insurance policy offers much more than just tax planning and investment returns. It offers the ability to plan for unforeseen events that could affect family's financial profile adversely. Factors to consider: Financial profile and needs are different from person to person, and the same is true for insurance needs. However, irrespective of the differences, the number of dependents PH has and their financial needs are the most important factors to consider. 32 Issues to consider while evaluating the above factors include: 1)The wealth, income and expense levels of PH dependents 2)Their significant foreseeable expenses 3)The inheritance PH would leave on them, and 4)The lifestyle PH wants to provide for them. How much insurance does a person need? Obviously the above factors mean nothing to the insurance planning process unless they are quantified. Globally, the time-tested approach used by insurance and financial planners is the capital needs analysis method. Other important questions to ask besides understanding how much insurance he need and letting his premium-paying term, he need to consider some other Key factors, such as 1Does he want to participate in bonus/ profit share? 2What is the primary objective of his seeking insurance 3Mainly risk cover, mostly investment returns? 4Does he want accident cover? For a detailed understanding of the factors he need to consider while selecting a life insurance policy, and the rationale for the same, use Insurance Planner.

This planning tool will also take him step by step and arrive him at a shortlist of life insurance policies appropriate for him, based on his personal profile. To understand life insurance terms, he can read The Basics of Life Insurance is as follows.... What is life Insurance? Life insurance is a contract for payment of money to the person assured (or to the person entitled to receive the same) on the occurrence of the event insured against. Usually the contract provides for - Payment of an amount on the date of maturity or at specified periodic intervals or at death, if it occurs earlier. Periodical payment of insurance premium by the assured, to the corporation who provides the insurance. 33 Who can buy a life insurance policy? Any person above 18 years of age, who is eligible to enter into a Valid contract. Subject to certain conditions, a policy can be taken on the life of a spouse Or children. What is a Whole Life Policy? When most people think of life insurance, they think of a traditional whole life policy. These are the simplest policies to understand: You pay a fixed premium every year based on your age and other factors, you earn interest on the policy's cash value as the years roll by, and your beneficiaries get a fixed benefit after you die. The policy takes you into old age for the same premium you started out with. Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives. The surrender value gives you an extra source of retirement money if you need it. What is an Endowment policy? Unlike whole life, an endowment life insurance policy is designed primarily to provide a living benefit and only secondarily to provide life insurance protection. Therefore, it is more of an investment than a whole life policy. Endowment life insurance pays the face value of the policy

either at the insured's death or at a certain age or after a number of years of premium payment. What is a Money Back policy? This is basically an endowment policy for which a part of the sum assured is paid to the policyholder in the form of survival benefits, at fixed intervals, before the maturity date. The risk cover on the life continues for the full sum assured even after payment of survival benefits and bonus is also calculated on the full sum assured. If the policyholder survives till the end of the policy term, the survival benefits are deducted from the maturity value.

34 What is An Annuity Scheme? Annuity schemes are those wherein your regular contributions over a period of time (or a one-time contribution) accumulate to form a corpus with the insurer. This corpus is used to yield you a regular income that is paid to you until death starting from your desired retirement age. Some annuity schemes have the option to pay your survivors a lump sum amount upon your death in addition to the regular income you receive while you are alive. What are With Profit and Without Profit Plans? The insurer distributes its profits among it policyholders every year in the form of a bonus/ profit share. An insurance policy can be "with" or without profit. In the former, any bonus declared is allotted to the policy and is paid at the time of maturity/ death (with the contracted amount). In a without profit plan, the contracted amount is paid without any profit share. The premium rate charged for a with profit policy is therefore higher than for a "without" profit policy. What is Bonus? An insurer distributes its profits among it policyholders every year in the form of a Bonus. Bonuses are credited to the account of the policyholder and paid at the time of maturity. Bonus is declared as a certain amount per thousand of sum assured. The term "bonus" is used interchangeably with "with profit".

What are guaranteed Additions? In some policies, the insurer guarantees the bonus/ profit declared as a certain amount per thousand of sum assured. This assured bonus will be credited to the policyholder irrespective of the performance of insurance company and is known as Guaranteed Additions. Guaranteed Additions will be payable at the end of the term of the policy or early death of the policyholders.

35 What are Survival Benefits? In some policies, a part of the sum assured is paid to the policyholder in the form of Survival Benefits, at fixed intervals before the maturity date. The risk cover for life continues for the full sum assured even after payment of survival benefits and bonus is also calculated on the full sum assured. If the policyholder survives till the end of the term, the survival benefits will be deducted from maturity value. What are Accident Benefits? On payment of an additional premium of Re1 per Rs1000 of Sum Assured per year, the assured is entitled to the following benefits:In case of accidental death, the nominee shall receive double the sum assured. In case of total and permanent disability due to accident, risk coverage continues without further payment of premium. In addition, an amount equal to the sum assured is paid to the assured in monthly installments spread over 10 years. However, subsequent accidental death will not entitle the nominee for double the sum assured. What are Disability Benefits?

If the assured becomes totally and permanently disabled due to any accident, he need not pay future premiums and his policy shall remain in force for the full Sum Assured. What are the various modes of payment for premium? Premiums, other than single premiums, can be paid by the policyholders to the insurer in yearly, half-yearly, quarterly or monthly installments or through a Salary Savings Scheme. If the mode of payment is yearly or half-yearly, some insurers give a rebate of 3% and 1.5% respectively on the premium. If the mode of payment is monthly, some insurers charge an additional 5% (this additional charge is waived for the Salary Saving Scheme). 36 What is Salary Savings Scheme? Salary Savings Scheme provides for payment of premiums through monthly deductions by the employer from the salary of employees. For this scheme, the additional charge of 5% of the premium usually added for the monthly mode of payments will be waived. What loans are available against life insurance policies? At present loans are granted on unencumbered polices as follows -Up to 90% of the Surrender Value for policies, where the premium due is fully paid-up, &Up to 85% of the Surrender Value for policies where the premium due is partly paid- up. The minimum amount for which a loan can be granted under a policy is Rs150. The rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not granted for a period shorter than six months, or on the security of lost policies (the assured must have the duplicate policies) or on policies issued under certain plans. Certain types of policies are, however, without loan facility. What is Surrender Value? The cash value payable by the insurer on termination of the policy contract at the desire of the policyholder before the expiry of policy term is known as the surrender value of the policy. Generally, a policy can be surrendered provided the policy is kept in force for at least 3 years. The

bonus is also added to the surrender value if the policy has been in force, in most cases, for at least 5 years. What is a Death Claim? The claim is usually payable to the nominee/assignee or the legal successor, as the case may be. However, if the deceased policyholder has not nominated/assigned the policy or not made a will, the claim is payable to the holder of a Succession Certificate or such evidence of title from a Court of Law.

37 What is Nomination/Assignment of a Policy? When the policy money becomes due for payment on the death of the policyholder, it can be paid only to that person who is legally entitled to give a valid and effective discharge to the corporation. If the policy bears nomination, the claim is settled in favor of the nominee. Similarly, if the policy is assigned, the assignee receives the claim amount. It should be noted that an assignment of a policy automatically cancels the existing nomination. Hence, when such a policy is reassigned in favor of the policyholder, it is necessary to make fresh nomination. What are Medical and Non-Medical Schemes? Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also as a measure of relaxation, some insurers do offer insurance cover without any medical examination, subject to certain conditions. How do you effect a Change of Address and Transfer of Policy Records? When a policyholder wants to change his address in the insurers records, notice of such change should be given to the Branch office servicing his policy. Policy records can be transferred from

the Branch Office that services the policy to any other Branch Office nearest to the policyholders place of residence. The correct address facilitates better services and quicker settlement of claims. When does a policy lapse? When the premium is not paid within the days of grace provided after the due date, the policy lapses. The grace period in case of yearly, half-yearly and quarterly modes of payment is one month and in case of the monthly mode of payment, it is 15 days. 38 How can a lapsed policy be revived? A lapsed policy may be revived during the lifetime of the assured, but within a period of 5 years from the due date of the first unpaid premium and before the date of maturity. Revival of a lapsed policy is considered either on non-medical or medical basis depending upon the age of the life assured at the time of revival and the sum to be revived. If the revival of the policy is completed by payment of over-due premium within 14 days from the expiry of the grace period, only the late fee for one month has to be paid. Can a policy be altered? No alteration is permissible in the policy document - the evidence of contract, unless both the parties to the contract agree. After the policy is issued, a policyholder in a number of cases finds the terms not suitable to him/her and desires to change them to suit his/her convenience. As all insurers also realize that insurance is a long term contract, certain changes under given circumstances might necessitate an alteration of the contract. Keeping in view the basic principles of insurance and administrative convenience, most insurers permit some alterations. Though, it is generally found that as a rule, insurers do not permit alterations resulting in lower rates of premier and within the 1st year from the commencement of the policy. What is the difference between Life Insurance and General Insurance? A Life Insurance deals with various plans connected with the life of a person, whereas all kinds of non life insurance policies are issued by the General Insurance companies. What are the documents to be executed at the time of taking insurance?

A Proposal form should be filled in by the person taking insurance without concealing any material facts. The values for which insurance is to be taken is also decide by the party taking insurance. No bills, documentary proofs are taken by the insurance companies at the time of taking insurance, as the insurance is a contract of utmost good faith. Premium is to be given along with the proposal form for completing the insurance transaction after which the insurance company issues the cover note or policy.

39 In 1999 the Insurance Regulatory and Development Authority Bill was passed by the government to facilitate the growth and regulate the newly opened insurance sector and to guarantee the investments made by the people. On August 15, 2000 the sector was finally opened for foreign sector participation. In todays highly competitive financial services environment, effective organizations will employ technology in a strategic role to achieve competitive edge. Technology will play an increasing role in aiding design and administering of products, as well in efforts to build life-long customer relationships.

6TOP PRIVATE LIFE INSURERS IN INDIA

NAME OF THE COMPANY 1 2 3 4 5 6 7 ICICI prudential life Insurance Company Ltd. HDFC Standard Life Insurance Company Ltd. Max New york Life Insurance Co. Ltd. OM Kotak Mahindhra Life Insurance Co. Ltd. Birla Sun Life Insurance Company Ltd. TATA Aig Life Insurance Company Ltd. SBI Life Insurance Company Ltd.

8 9 10

ING Vysa Life Insurance Company Ltd. Baja Allianz Life Insurance Company Ltd. Aviva Life Insurance Company Ltd.

40

Factors responsible success of the insurance Companies

Several factors are responsible for the likely success of the various Insurance Companies in general ; 1The change in the attitude of population. 2An open and transparent environment created under the IRDA. 3A well established distribution network.

Factors responsible success of the Insurance Companies

Several Factors are responsible for the likely success of the various Insurance Companies in general; viz. 1The A change in the attitude of the population 2An open and transparent environment created under the IRDA. 3Trained professionals to build and sell the product. 4A more rationale approach to the investment criteria 5Encouragement of newer and better products and letting the hackneyed Ones die out. 6A stringent accounting practice to prevent failures amongst the insurers.

41

CHAPTER III DIFFERENT PRUDENTIAL LIFE POLICIES

Life policies
In order to understand the reaction of the customers it is important to know the various products offered by the company and their features and which segment of customers can be approached for each specific product. Thus we know that various groups of customers will react differently towards various products and hence thorough knowledge of the products is a must before approaching the customer. ICICI Pru life time; Suitability:1This policy is a long-term market linked total protection plan. The plans offer protections for life at the same time allows the policyholder to get market linked returns. It is a single product combining the benefits of both an investment product and insurance plan. This apart, the product offers a lot of flexibility. Salient Features 1Death benefit will be a multiple of premium paid. 2The returns depend on the plan chosen- growth, balanced and income and one can switch from one fund to another depending on the financial priorities. Once in a year switching is done free of cost. 3Benefits can be enhanced by adding Accident & Disability Benefit, Major Surgical Assistance, Critical Illness benefits at a nominal extra premium. 4Entry into the plan will be based on the Unit Value applicable on the date of policy issue. The amount of premium towards death benefit decreases with the increase in the value

of the units. 5One has the flexibility to increase the death benefit by 25% subject to a maximum of Rs.100, 000, every third year up to 3 times, without any underwriting. Death benefit can be increased beyond this limit with underwriting. 6Apart from the above the policy holder can increase the death benefit at different stages of life such as Marriage, birth of first child and birth of second child. This is irrespective of when the last increase was done.

42 Benefits 1On Death 2In the event of death of the policyholder, beneficiaries will be paid the higher of death benefit and value of the units. On survival 1There is no maturity period and policy holder has the option to withdraw units under the plan at anytime after the policy has been in force for three years. 2Accident & disability benefit 310% of SA each year for 10 years in case of permanent total disability 4Additional SA, if death is due to an accident while traveling as a passenger in train or bus 5Critical illness benefit 69 medical conditions are covered. On admission of a claim, sum assured under the rider is paid and the rider comes to an end. Claim under this rider is not admissible during first six months of the policy. 1Claims can be made for more than one surgical procedure, subject to a maximum of 50% of SA, claim under this rider is not allowed during first 6 months of the policy 2Minimum age at entry: 0 years 3Maximum age at entry: 60 years (completed years) 4Minimum premium : Rs.18,000 per annum 5Minimum sum assured under riders : Rs.100,000

6Maximum Sum assured under riders : Rs.10,00,000 7Following are the charges applicable under the policy: 8The initial administrative charges in the 1st year would be 20% of the premium, for premium amounts less than Rs.50, 000/-. For premiums equal to or more than Rs.50, 000/-, it is 18% of the premium.

43 ICICI PRU LIFE GUARD :suitability:1Maximum thrust is on family protection. This policy is suitable for people who wish to provide large sums for the benefit of their family at an economical cost. 2It is a pure risk or term insurance plan. 3The policy is offered in three variants: 4ICICI Pru Life Guard Level Term Assurance ICICI Pru Life Guard Level Term Assurance with Return of Premium ICICI Pru Life Guard Single Premium 5Under each of the above variants, full sum assured is payable on death. 2On survival to maturity nothing is payable except under ICICI Pru Lifeguard Level Term Assurance with Return of Premium, where in premiums paid are returned without any interest. 6All the premiums paid under the policy are eligible for tax rebate under section 88 of IT Act. Benefits 1On Survival 2On survival to maturity nothing is payable except under ICICI Pru Lifeguard Level Term Assurance with Return of Premium, where in premiums paid are returned without any interest. 3On Death 4Under each of the above variants, full sum assured is payable on death.

5Other conditions 6Age at entry: 18 years 2Maximum age at entry: 50 years. 3Maximum age at exit : 65 4Minimum term: 5 years 7Maximum term : 25 years( For ICICI Pru Life Guard Level Term Assurance & ICICI Pru Life Guard Level Term Assurance with Return of Premium) 44 8Maximum term : 15 years(For ICICI Pru Life Guard Single Premium) 3Minimum premium - Rest. 2400 per annum. ( For ICICI Pru Life Guard Level Term Assurance & ICICI Pru Life Guard Level Term Assurance with Return of Premium) 4Minimum Sum assured : Rest. 2,00,000(For ICICI Pru Life Guard Single Premium) ICICI PRU FORE EVER LIFE: Suitability 1The plan is suitable for people who are not in any pension schemes and wish to provide regular income for life after a stipulated date. The amount you receive depends on the premium you pay till the stipulated date and the option you choose. It also offers life cover during the deferment (i.e., premium paying) phase. 2The plan provides for 4 annuity options, which can be exercised at any time within 6 months of the vesting date. 1. Life annuity: annuity for life 2. Life annuity certain for 5, 10, 15 years: Annuity is paid for chosen term and for life thereafter 3. Life annuity with return of purchase price: life annuity with return of purchase price on death to the beneficiary 4. Joint Life, last survivor annuity with return of purchase price: life annuity to you and then to your spouse with return of purchase price to the beneficiary on death of last survivor 1Policy holder has the option to pay a single premium or spread the premium payment over the deferment period.

2The policy holder has the option to postpone the vesting age up to a maximum of 65 years. During the postponed period your accumulated amount will earn interest as determined by the company from time to time. There will be no life cover during this period. No premiums will be paid during this period.

45 2The policy holder also has an option to the pension from any other insurance company. If he wishes to buy the pension from another insurance company, a balance of benefits after commutation, as applicable will be used as purchase price to buy the immediate annuity from that company. 3If the policy holder decides to terminate his policy, after 3 years premiums are paid, a guaranteed surrender value is payable and the insurance protection provided under this policy will also cease. For a single premium policy - Surrender during the first year is not permitted. But the policy acquires a guaranteed surrender value after the first year which will be 70% of the single premium after one year, 75% of the single premium after two years and 80% of the single premium after 3 years. Cash value of guaranteed additions already allocated to the policy will also be payable. 3Premiums paid under the policy are eligible for tax benefits under section 80CCC (1) of IT Act, 1961. 4One or more of the following add ones can be opted along with the policy, at the time of taking the basic policy, at a marginally incremental cost:\ 1) Accident and Disability Benefit 2) Critical Illness Benefit 3) Major Surgical Assistance Benefit 4) Level Term (Double Life) Insurance Benefit Benefits

1On Death 2On death during the deferment phase, a regular income stream is automatically provided to the insured's spouse. If the spouse is not alive a lump sum amount is paid to the nominees. The amount of annuity payable is determined on the basis of the sum assured plus guaranteed additions plus vested bonuses (if any) as on the date of death.

46 On survival 1On vesting date insured has the option of taking 25% of the aggregate of the sum assured, guaranteed additions and vested bonuses as an immediate lump sum. And utilize the remaining 75% to provide an annuity. Annuity payment depends on the type of option chosen. 2Accident & Disability benefit 3Additional SA is payable if death is due to an accident 4Waiver of payment of premiums on disability due to accident 510% of amount of cover payable every year for 10 years from date of disability 6Additional amount of cover if accidental death occurs while traveling as a passenger in a train or bus. 7Major Surgical Assistance 843 surgical procedures are covered 1. Major Surgical Procedure - 50% of SA 2. Intermediate Surgical Procedure - 30% of SA 3. Minor Surgical Procedure - 20% of SA 1Maximum limit for this benefit is 50% of all claims together 2No benefit on, any claim within first 6 months of policy Level Term Assurance 1Additional life cover - amount payable only in the event of death, during the term. Other Conditions Regular Premium Single Premium Policy

Minimum age to apply Maximum age to apply Minimum sum assured Minimum term is Vesting age

18 60 Rest. 50,000/5 Years 45 to 65 years

32 62 Rest. 50,000/3 years to max 15 years 45 to 65 years

47 ICICI PRU CASH PLUS: Suitability 1This is an insurance plan that gives protection, savings along with liquidity. Suitable for people who are looking at insurance cum investment plan with good return and the security of the investment and liquidity. Salient Features 1This is a flexible investment cum endowment plan offering triple benefits of insurance protection, good return and security of investment and liquidity. 2The policy offers the flexibility of choosing three levels of cover (in the form of sum assured) for the same amount of total annual contribution. The policyholder has the option to choose amongst Basic, Standard and Enhanced level of cover. (Term-5) x Annual Premium (Term) x Annual Premium (Term+5) x Annual Premium

Basic Standard Enhanced

2The policyholder has the flexibility of shifting between the three levels of cover. For each level of sum assured, applicable mortality charges would be deducted from the premium. 3The premiums paid would be invested after deducting the charges involved in the product. These costs are related to policy issuance, administration, servicing and mortality charges

4At the end of every year, the company would declare a bonus interest that would be applied on the allocable portion* of your premium. Policy guarantees a bonus of 4% on the invested premium for the first year. This bonus interest will have a compounding effect on the value of your policy. 5Policy offers liquidity, allowing the policyholder to make withdrawals each year from the 6th year onwards. Policyholder can withdraw up to 10% of the accumulated value of the policy every year, after the first five years of the policy.

48 6Loans can be availed of under this policy. The policy benefits can be enhanced by taking add-ons by paying additional premium. The sum assured under the riders cannot exceed the base sum assured. The riders available with this policy are: 7Critical Illness Rider (Accelerated) 8Major Surgical Assistance Rider 9Accident and Disability Benefit Rider 10Accident Benefit Cover 11Income Benefit Rider Benefits: On Maturity The accumulated value of the policy is paid at the time of maturity. However, if the value of the investment is more than the accumulated value of the policy then that too will be paid at the time of maturity. Policyholder has the flexibility of receiving the maturity proceeds as a lump-sum or in equal annual installments over 3 or 5 years. In the event of death during withdrawal period, the remaining amount would be paid to the beneficiaries. There is no life-cover during this withdrawal period. On Death 1An amount equivalent to the sum of the chosen cover level along with the accumulated value of the policy is paid. Other Conditions

2Maximum age: 60 years 3The maximum age at which cover ceases: 75 years 1The minimum term of the policy: 10 years 3The maximum term of the policy: 30 years. 4Minimum premium Annual Half yearly Monthly Rest. 8,400 Rest. 4,200 Rs.700

49 ICICI PRU CASH BACK Suitability 1Policy is suitable for people who wish to have combined benefit of savings and liquidity all the while having insurance protections. Policy provides for the periodic financial requirements of an individual with the added benefit of insurance protection. Salient Features 2It a money back plan where in the lump sum amounts are payable to life assured at regular periodic intervals. 3Premiums are payable through out the term of the policy or till earlier death 4Guaranteed additions and bonus are payable under the policy 5In case of death of the life assured within the term, the total sum insured along with guaranteed additions and bonus are paid to the nominee, irrespective of earlier survival benefits 6Period of the policy can be 15 or 20 years. 7Policy holder can opt for the rider at the time of taking the policy at a marginally additional premium. Riders available are a. Accident & Disability benefit b. Critical Illness Benefit c. Major Surgical Assistance and

d. Level Term Insurance

50 ICICI PRU SMART KID Suitability 1It is a plan that provides guaranteed educational benefits to the child along with life insurance cover and hence is suitable for parents (between 20-60 years) with children in the age group of 0-12 years. Salient Features 2It is a money back plan where in sum assured is paid at regular intervals. The policy can be so designed that it provides money at important milestones of the child's education like secondary education, higher secondary, and graduation and post graduation. 3On death of the life assured with in the term, full sum assured is paid immediately and all future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured. 4One has the flexibility to choose the exact age of the child (between 22 to 25 years), at which the policy is to mature. The term of the policy is determined by Age of the child on maturity - Age of the child on the date of proposal. 5Policyholder has the option to avail additional benefits such as Income benefit rider, Accident Disability benefit rider by paying additional premium Benefits On Survival 1Lump sum amounts are payable at regular interval to meet the child's educational

expenses. On Death during the term 1Full sum assured is paid and future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured. 51

CHAPTER-IV SALES PROCESS IN ICICI

The Sales Process

The Sales Channel of the company consists of The front Line Staff The Branches 1In order to market its products a company has its own legion of sales force in its branches which are headed by branch managers assisted by Sales Team Managers with their respective Insurance Care Consultants. In addition to the above the branch also has a team of operational managers as well as under writers etc to carry on the daily activities of the branch. Service outlets 1The company in addition to its own existing distribution network ties up with other partners to promote its products such as banks and other financial institutions and financial and insurance consultancy firms and agencies. The Marketing Channels of the company however consists of all those measures undertaken by the company to create a demand for its products and do not directly contribute to sales but are meant to assist the Sales channels. 1The Marketing Channels of the company consists of Advertising 1The Company to boost sales and its image in the eyes of its customers sends out communication signals to the public at large through various media like the newspapers, television and so on.

Sales Promotions The company in addition to its advertising campaigns conducts some special events or activities to simulate demands such as setting up kiosks and conducting road shows etc.

52

The Sales Process The two widely followed methods of selling Insurance are The cold call approach 1In the cold call approach the Insurance Care Consultant does not know the prospect personally but has a database or leads of the various prospects and thus his main aim is to seek an appointment over the phone and then to do a fact finding on the field as well as make the sales presentation and follow up as the case may demand. The drawbacks however are fear: getting past assistants, secretaries. And other gatekeepers: finding the right contact: and finding a way to make a pitch quickly that will move the sales process forward. The Reference Marketing approach 1In the case of reference marketing the Insurance Care Consultant approaches his existing contacts of friends and acquaintances and does not follow any specific methodology. 2Here the air lies in developing a vast network of friends and acquaintances by various means in order to prospect a larger size of the popular to whom he knows personally and is no longer a stranger to. 3The main drawback of this process however is that the marketer may soon run out of references as he would have finished approaching all his close circles of influence. Closing the Sale 1Although one should never be shy about asking for the business. Prospects will probably give you some signals when they are ready to become customers! Familiarize yourself

with the following readiness signals: 2Asking about availability such as, How soon can someone be here? 3Asking specific questions about rates, prices or statements about affordability 2Asking about features, options, quality, guarantees or warranties. 53

3Asking positive questions about your business. 4Asking for something to be repeated. 5Making statements about problems with previous vendors: they might be seeking reassurance from you that wont pose the same problems. 6Asking about follow-up service or other products you carry. 4Requesting a sample or asking you to repeat a demonstration for them or for others in their company or family. 3Asking about other satisfied customers. You should have a list of satisfied customers ready to give to prospects who ask. (Make sure youve already contacted your customers and gained their approval for providing their names!) Follow-Up and Service after the Sale After the sale follow-up after the sake is just as important as making the sale. Thats when your relationship with a customer really takes hold. It helps to build long term relationships with the customer and helps in retaining him and referring the products to his peers. Market segmentation 1Market segmentation can be defined as the process of dividing the markets into distinct subsets of customers with common needs or characteristic and selecting each target segment with a distinct marketing mix.

54 Need for market Segmentation 1All customers are not alike and thus the concept of mass marketing-i.e. of offering the same marketing mix to all the customers cannot be applied here. The strategy of segmentation allows the marketers to avoid head on competition in the market place by differentiating their offerings. 2Thus after identifying the various and clustering them into homogenous groups the marketer must select a segment and design a specific product or service as well a promotional appeal to for each distinct segment and position the same in such a way that it is perceived by the target segment as satisfying the customers need better than the competitive offerings. Market Segments seen in the Insurance Sector: Demographic segmentation: 1Demography refers to the vital measurable statistics of a population. It is the most affordable an accessible method of identifying a target market. Demographic variables reveals ongoing trends and identify business opportunities. Some of the Demographic Factors observed during the course of the study were Age 1People interested in insurance were all those who were earning and were between the age group of about twenty-five years to fifty years old. People below this segment were either still students or who had just started their careers and people above this segment were people who were no longer insurable. Gender 1It has been observed through the course of the study that mostly the male members of the family were the decision makers in regards of matters relating to insurance and

investments. Even the employed and independent women voluntary chose the help of their Fathers and husbands before taking up any purchasing decision. However instances of women taking up these decisions are not uncommon. 55 Marital status 1Traditionally the family has been the focus of most of the insurance companies. People who are married with children tend to put more money towards securing their childrens future and invest in child gain policies where as single people are not very concerned about the insurance coverage but are more interested in the returns and tax benefits aspects. Income, Education and Occupation: 1The market for various insurance companies can also be classified into various income groups who take up specific policies for a variety of reasons. People with a very high income who do not get any tax rebates invest for the purpose of tax free returns and are thus concerned with the interest rates where as middle class individuals are more concerned with the tax savings aspects as well as the long term benefits accrued. 2Education and occupation are another set of factors which can be carved out as a segment. People who are well educated and qualified tend to have an open mind to the concept of insurance and have come across the existence of the company Allianz Baja life insurance where as people who are at lower positions and not very qualified do not have much awareness and sinuously consider it to be Life Insurance Corporation of India.

56

CHAPTER V DATA ANALYSIS

DATA ANALYSIS

Constituents of the Respondents

Income of the respondents Below 1 lakh 1-3 lakhs 3-5 lakhs 5 lakhs Total

below 30 12 18 10 4 44

30-40 0 37 48 11 96

40-50 0 4 53 22 79 4 9 4 7 24

above 50+

DEMOGRAPHIC SEGMENTATION OF THE RESPONDENTS 60 53 50 48

40

37 below 1 lakh

30 22 20 12 10 4 0 0 1 2 3 4 0 4 4 18 11

1--3 lakh 3--5 lakh 5 lakhs+

10

9 4

57

AGE OF THE RESPONDENTS

10% 18%

BELOW 30 30--40 40--50

33%

50+
39%

Socio cultural segmentation 1Socio cultural variables are those variables that arise out of individuals social and cultural influences that affect his decisions of choice. Some of the socio cultural segmentation factors observed during the study is as follows. Family life Cycle 1Families pass through similar phases in their formation growth and final dissolution and at each stage it has different insurance and investment objectives. Here again we see that single people take up small policies and where returns are greater where as people with small children prefer child gain policies where as older people take up retirement planning plans and thus it is very important to know the stage of the family. The concept of family life cycle was developed by consumer researchers and sociologists as a means of depicting a steady and predictable series of stages that most families progressed through.

58

The family 1Family is defined as two or more persons related by blood marriage or adoption that reside together and are sometimes referred as a household and in the course of our study we shall consider households and families synonymously. The main functions of any family is to see to the economic well being and providing financial means to its dependents and the life style of the family greatly influences the consumption patterns and buying behavior.

The family decision making process: 1A family functions as a cohesive unit and family related roles are constantly changing as the number of married woman working outside the work has increased. In most of the families various members played various roles in the buying decision when they were approached with a insurance proposal some of these roles are: Influencers: These are family members who are approached by the company and even if they were not in a position to take up the same they suggested to there family members and other relatives about the insurance schemes. Gate keepers: These refers to those family members who try to control the flow of information to the rest of the family about the proposal these people are generally the older generation whose advice is normally sought before taking up a proposition. Deciders: This refers to those family members who unilaterally or jointly decide whether to take up the insurance policy or not and are usually the bread winners of the family. 1The number and identity of the family member who fill these roles vary from family to family and in some cases are single member may perform a number of roles and others a single role can be jointly carried out by two of the members. 59

The family life cycle 1Bachelor Hood: This consisted of single young men and women who establish households apart from their parents or on the verge of doing so. They tend to spend their incomes on entertainment, clothing and accessories and are not really concerned for investing and savings. They usually take up small policies to avail tax benefits and prefer the assistance of their parents etc. in this regard. 2Honeymooners: This refers to newly married couples who are yet to have their children and spend a considerable part of their incomes in establishing their house. We observe many young couples having a combined income that permits them a better life style or allows them to save and invest the extra income. They usually take up insurance policies for the security of their spouse and family. 2Parent Hood: When people have children the family goes into the parent hood stage which usually is around 20 years and because of this it is usually divided into the Pre school stage, elementary school, high school and college phase during these stages the financial resources of the family changes as one or more of the parents progress in their career and the child raring responsibilities gradually increase and finally decrease when the children become self supporting. Most people in this category prefer to invest money for the Childs future education needs from when the child is small. 3Post parent hood: After the children grow up and settle in their own lives the family enters this stage. Most of the people in this stage are those who are nearing retirement or have already retired and most of them have crossed the age limit of most of the insurance schemes. They usually seek to pick up insurance investment options to bequeath some thing down to their grand children. various stages that the family life cycle explained above are a generalization and this ignores the older singles childless couples, divorced with or without children.

60

Social Class: 5Social class implies a hierarchy in which individuals in the same class have the same degree of status as compared to other members and thus vary in terms of value product preference and buying habits. People who are of a lower class perceive insurance as a small savings scheme where as people of the middle class understood and took up insurance policies to mitigate risks and in some cases it is seen that people have taken up policies to match their social status and position in societies. 6Hyderabad is a very potential city for the marketing of Insurance products; it has a mix of High and Middle class, Employees and Business class people. Further it must be noted that a large number of software companies have emerged or have set up their branches and are providing handsome compensation packages to their employees. The task of marketing insurance products involves the following: Preparation and planning: The sales person should try and get as much as possible information about the client before contacting him and asking for an appointment. He can get this information easily of the prospect from the person who has referred him. In the case of a database the various prospects are likely to have some common interests like they may all be the members of a social service organization and have the similar interests. Once you've identified prospects, you'll want to learn all you can before you approach them. "Fact finding" will help you: 1Determine your sales approach and plan your sales calls 2Determine which products and services best suit particular prospects 3Uncover reasons why you should not pursue some prospects, saving You valuable time and resources.

61

Tele Calling: After the above two stages are complete the next stage Is to contact the prospect over the phone. This is one of the most crucial stages in the sales process as it involves the generation of interest by the customer and him/her agreeing to a fixed appointment. Factors that Make Tele Calling Effective 1Place of call 2Effective script 3Ability to articulate the script correctly 2Ability to handle costumer queries and resistance 3Callers attitude 4Availability of a large database 4Silent surroundings 5Correct pronunciation of words

Overview of some prominent insurance websites

Bimaonline 1This site is an intermediary for insurance companies which intents to provide insurance on the net. It is a company a proprietary tool of Bhima consultants and facilitates online insurance services to consumers. The company has a tie up with five public sector insurance companies and plans to tie up with 15 private insurance companies. The companys revenue model relies heavily on selling brokerage with a commission, which is an appropriate thing to do. The company has a focus to cater the needs of 3 specific groups of consumers, namely corporate, individuals and insurance professional. Such a demarcation and clear cut idea will help company in the future. The advertising strategy of the company seems to be in tandem with objectives and strategy.

62

2The site is full of various features, which will help the consumer in understanding insurance as well as taking a policy, premium calculators are a step in the right direction, but the site needs to be more innovative and interactive, the company failed to leverage their early entry into area of insurance on the net. The company needs to pull up its sock in the light of competition and should certain new and unique features that will attract the customer and fulfill his needs as the future belongs to those who can satisfy as well as delight their customers by meeting their needs and requirements. LIC INDIA Now lets see LIC site. The venerable LIC of India at licindia.com seems to be grouping in the dark cyberspace and has managed to put up a site that has a marked resemblance to a fish market. No neat, structured design, no clear cut mandate, no serious attempt to leverage the power of the interactive nature of the Internet. Online premium and bonus calculations, besides online forms, are steppes in the right direction and the grievance readdressed system is good in intent. The LIC site is a case of an opportunity lost and the leadership stance is clearly missing. 1The Rest of the companies operating in this sector also do have their own insurance portals showing details about their products and policies available but perhaps for whatsoever reason none of the Indian sites are setting the WWW on fire. Factors Responsible for the Likely success of Insurance Companies. Several factors are responsible for the likely success of the various Insurance companies in general; viz. The A change in the attitude of the population An open and transparent environment created under the IRDA. A well-established distribution network. Trained professionals to build and sell the product. A more rationale approach to the investment criteria Encouragement of newer and better products.

62 A stringent accounting practice to prevent failures amongst the insurers.

A level playing field at all stages of development in the sector for all the players. 1). Do you have any Insurance plan? Yes / No no of respondents 97 3 100

sno a b total

factor yes no

percentage 97% 3% 100

120 no of respon dents 100 80 60 40 20 0 yes factor no 3 yes no 97

according to the data collected 97% of the respondents have insurance plan, 3% of the respondents did not have the insurance plan. no. of respondents 7 57 32 4

sno A B C D

factors HDFC LIC ICICI others

total 7% 57% 32% 4%

TOTAL

100 63

100%

2). Which insurance company have insured you?

60 no. of respon den ts 50 40 30 20 10 0 HDFC 7

57

32

HDFC LIC ICICI others 4

LIC factors

ICICI

others

according to the data collected 57% of respondents are insured insurance in LIC, 32% of respondents insured in ICICI ,7% of respondents are insured in HDFC and the remaining 4% respondents for others. 3) why have you taken up any insurance policy? no of respondent 73 11 10

sno A B C

factor Security maxi tax benefits more returns

total 73% 11% 10%

D total

max risk cover

6 100

6% 100%

64

no. of respon den ts

80 70 60 50 40 30 20 10 0
r it y cu

73 Security maxi tax benefits more returns 11 10

r

6
ve

max risk cov er

ne fi t s

rn s re tu

be

m or e

m ax it

factors

according to the data collected 73% of the respondents were taken insurance policies for the sequrity,11% for the maximum tax benefits, 10% respondents are for more returns and 6% respondents for the maximum risk cover

4) Have you Heard about ICICI Prudential Life insurance Co.? Yes / No

sno

factor

no of respondent

ax

r is k

co

total

A B total

yes no

78 22 100

78% 22% 100%

65

90 no of respon dents 80 70 60 50 40 30 20 10 0

78

yes no 22

yes factors

no

according to the data collected 78% of the respondents are heard about ICICI Prudential Life insurance and 22% of respondents are not heard about it.

5) If Yes how you have heard about us? no of respondent 30 42

sno A B

Factor Friends Newspapers

total 30% 42%

C D total

Tv Others

22 6 100

22% 6% 100%

66

no o f respon den ts

ds

rs

45 40 35 30 25 20 15 10 5 0
n F rie

4 2 3 0 22 Frie s nd N spa rs ew pe T v 6 O rs the

ap e

T v

w sp

N e

fac rs to

accordings to the data collected 42% of respondents are heard by newspapers , 30% of the respondents heard by friends and the 22% of the respondents are are heared by TV, and 6% for others. 6) How many members constitute your family? sno factor no of total

th

er s

respondent A B C D total kids youngster old aged middle aged 13 42 10 35 100 13% 42% 10% 35% 100%

67

no o f respon den ts

45 40 35 30 25 20 15 10 5 0
s ki d

42 35 kids youngster 13 old aged 10 middle aged

st e

ng

ag

ou

ld

factors

mostly 42% of youngster are from the family members and 35%of middle aged and 13% form kids and 10% old aged. 7) Do you plan to interest in insurance in nar future? Yes/no

m id d

le

ag

sno A B total

factor yes no

no of respondent 87 13 100

total 87% 13% 100%

68

100 no of respondents 90 80 70 60 50 40 30 20 10 0

87

yes no 13

yes factors

no

accordings to the data collected 87% of the respondents are plan to interest in insurance in near future and 13% are of no planfor future. 8) Your annual income is?

sno A B C D TOTAL

Factor 0 to 1.5lakhs 1.5 to 2.5lakhs 2.5 to 5 lakhs above 5 lakhs

no of respondent 57 30 10 3 100

total 57% 30% 10% 3% 100%

69

no o f respon den ts

60 50 40 30 20 10 0
kh s .5 la

57 0 to 1.5lakhs 30 10 3
kh s kh la k hs s

1 to 2.5lakh .5 s 2 to 5 lakhs .5 a v 5 lakhs bo e

.5 la

la 5 .5

to

to

fac tors

according to the data collected 57% of the respondents are of 0 to 1.5 lakhs, 30% of respondents are 1.5 to 2.5 lakhs ,10% of the respondents are of 2.5 to 5 lakhs and 3% are above 5 lakhs.

ab

.5

ve

to

9) Are you interested in working for ICICI Brand? Yes/No no of sno A B total factor yes no respondent 52 48 100

total 52% 48% 100%

70

53 no o f respon den ts 52 51 50 49 48 47 46

52

no of respondent 48

yes factors

no

accooding to the data collected 52% of the respondents are intrest to work for the ICICI Brand and 48% are not interested. 10) Educational Background is?

sno A B C D total

factor Graduate Post Graduate Professional courses others

no of respondent 22 52 10 16 100

total 22% 52% 10% 16% 100%

71
no o f respon den ts

60 50 40 30 20 10 Graduate 0 2 2

5 2

G u rad ate 16 P G ua ost rad te P rofessio l na co urses oth ers

1 0 Profes sional Graduate

fac tors

according to the data collected 52% of respondents are post graduate ,22% are graduate,16% are others and 10% respondents are professional courses

c ourses

Post

others

11) How many hours in a week would you work if you provided with a opportunity? sno A B C D total factor 5-10hrs 10-25 hrd 25-50 hrs 50-65 hrs no of respondent 5 12 16 67 100 total 5% 12% 16% 67% 100%

72

80 no of respon dents 70 60 50 40 30 20 10 0 5-10hrs 10-25hrd 25-50hrs 50-65hrs factors 5 12 16 5-10hrs 10-25hrd 25-50hrs 50-65hrs 67

accordings to the data collected 67% of the respondents are interested to work 50-65 hrs, 16% of

the respondents are25-50hrs and 12% for 10-25 and 5% respondents are work for 5-10hrs 12) what do you expect from your job? total 7 63 20 10 100 7% 63% 20% 10% 100%

sno A B C D total

factor satisfaction money career&growth all the above

no of respondent

73

no o f respon den ts

70 60 50 40 30 20 10 0
ct io n fa

63 satisfaction money 20 10 7
th ve

career&growth all the above

ro w

ne

m o

r&

at is

ar e

factors

ll t

bo

accordings to the data collected 63% of the respondents are work for money,20% for career & growth ,10% for satisfaction and 7% for all the above

74

CHAPTER-VI CONCLUSION AND SUGGESTIONS

Conclusions on sales and distribution

1Customers know generally what a policy covers; they also know that there are several fine prints in insurance contracts, which they do not know, or perhaps care to know, at the time of buying. And they also seem to generally conclude that when it comes to making a claim under an insurance policy, there could be several issues of which they are just unaware at the time of buying the policy in the first place. Changing Expectations 1While the fresh air of competition in every sector of the economy brings in major changes in consumer expectations. The insurance industry has witnessed a few unique aspects,

such as regulation-inspired efforts to educate insurance buyers, and a vast change in the skills and capabilities of the intermediaries involved in distribution. Motivating factors 2In respect of life insurance, potential buyers are driver to buying a policy for one or more of three major reasons: security of the money invested, saving for one of more specific purposes, and the availability of tax benefit. 3Customers are increasingly known to place less reliance on the tax benefit factor, and stress more on the security aspect and the end-use objective. 4The challenge of the insurance companies is to address the motivating factors imaginatively and come up with genuine solutions. Take for example, the consumer's objective of taking a policy to save money for higher education of a child.

75 5A potential buyer primarily expects that the saving should be a painless process and that the money saved should be absolutely safe. The challenge is to provide not only convenient payment options, but also mechanisms that could offer some measure of protection and relief to the customer if he is forced to disrupt the payment arrangement for unforeseen reasons. 6On the issue of the consumers perception of security of the money invested, there are two important aspects. One is how the features of the insurance contract are put across to the buyer (whether it is a unit-linked policy or endowment oriented). The second is how to address more effectively the question about the dependability of the new generation companies that potential new insurance buyers raise during sales calls especially outside

metros and in small towns (referred to in publicity jargon as buyers in the SEC B and C categories). Both insurance companies and the Regulator need to address this behavioral challenge more actively. Customers' experience: 7There has been a vast change in the approach of the insurance agent from the preliberalization days. While the agent in the past established informal contacts with potential buyers and often depended on referrals from friends and family members, the new age companies insist on a professional, and often aggressive stance on the part of the sales staff. 8Customer expectations in this regard revolve around two key aspects: first, whether the customer is getting truthful advice from the agent, or if he is pushing a product that yields him the highest commission rate. Invariably, the customers today expect the insurance agent (and other intermediaries such as the bank assurance sales staff) to provide ready comparison of competitors' products and how the product the agent is suggesting is superior to the others. 9Publicity given by new insurance companies about the protection aspect of insurance, customers in major cities have come to appreciate the need for higher level of insurance cover with reference to their earning stage in working life. 76 10The second aspect of customers' perception about the new generation of insurance agents is the level of continuing commitment of the agent to arrange post-sale service. Potential insurance customers increasingly make arrangements to pay periodical premiums directly through the electronic medium, or though automatic transfers from their bank accounts, thereby bypassing the need for regular post-sale service by the agents, customers would tend to place more reliance on the direct standard of service from the company concerned.

SUGGESTIONS

1Along with the product, service has to be given ample opportunity to differentiate along the competitors as styling and services. 2Enhancing the value added features in the products. 3It can open insurance consultancies in twin cities, so that it can come closer to its customers

77

QUESTIONNAIRE

1) Do you have any Investment/Insurance Plan ? YES/NO: 2) Which Insurance Company Have Insured you? a.HDFC b.LIC c.ICICI d.OTHERS 3) Why have You Taken up any Insurance Policy?

a.Security b. Maximum Tax Benefits c.More Returns d.Maximum Risk Cover

( ( ( (

) ) ) )

4) Have You Heard about ICICI Prudential Life Insurance Co.? Yes/No( ) 5) If yes how you have heard about us? a.Friends b. News Papers c. TV d. Others ( ( ) ) ( ( ) ).

6) How Many Members Constitute Your Family ? a.Kids b.Youngster c.Old Aged d. Middle Aged ( ( ( ( ) ) ) )

7) Do You Plan To Interest In Insurance In Near Future? YES/NO ( ) 8)Your Annual Income Is? a.0 to 1.5 lakhs b.1.5 to 2.5 lakhs c.2.5 to 5 lakhs d.more then 5 lakhs ( ( ( ( 78 ) ) ) ).

9) Are You Interested in working for ICICI Brand? 10) Your Educatinal Background is? a.Graduate b.Post Graduate c.Professional Courses d. Other ( ( ( ( ) ) ) )

YES/NO (

11) How many hours in a week would you work if You provided with a Opportunity?

a.5-10 hrs b.10-25hrs c.25-50 hrs d.50-65 hrs

( ( ( (

) ) ) )

12) What do You expect from Your Job? a.Satisfaction b.Money c.Career&Growth d.All the Above ( ( ( ( ) ) ) )

79

References:

1www.iciciprulife.com 2www.einsuranceprofessional.com 3www.bimaonline.com 4www.ciionline.org

5www.mindbranch.com 6www.irdaindia.com 7Life Insurance Management (courseware M.B.A Insurance) ICFAI Business School. 8ICFAI Insurance Journals 9Marketing- philip kotler 10Services Marketing Adlarian Palmer

80