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STRUCTURE OF THE SALES FUNCTION 5. IT INTEGRATION 6. RESEARCH METHODOLOGY a. PROBLEM&RESEARCH OBJECTIVE b. RESEARCH PLAN c. DATA COLLECTION 7. ANAYLISIS 8. FINDING 9. PORTER FIVE COMPETITIVE FORCES 10. SWOT ANAYSIS 11. BCG MATRIX 12. RECOMMENDATION AND SUGGESTIONS 13. BIBLIOGRAPHY 5 6 7 7 8 10 12 18 19 23 32 32 33 33 39 52 54 57 61 63 65
Financial market is one of the markets where there is lots of option for the Company, because this market is at the starting point or at the initial stage. ICICI prudential is a part of these financial markets who is selling the insurance as well as the mutual fund. The financial market mainly depend upon the investor who have the power of money to invest into the market in the form of insurance or mutual funds, and our objective was to find out investor who can be the future client of the company, our project “Synergy of High Net- Worth Individuals (HNI) With their Distribution Channel” ,which mainly focus on finding out the investment behaviors of the HNI clients, their mode of investment , and the people who can change their financial decision, because most of the HNI client usually take the Advice of the people who are close to them ,and has the knowledge about the financial market.
THEORY AND CONCEPT
Financial market is one of the market, which had started to grow a few years ago, and with boom in this sector many private company came into existence, and ICICI prudential is one of them. The Financial market is mainly depend on the people who had enough money to invest, to get a good return out of it and our project aim was to find out those prospect who can invest heavily on the financial market and the source through which we can reach them, such as:• Bankers. • Chartered Accountant. • Investment Consultant It is general known that most of the heavy investor usually consults their bankers, chartered accountant or their Investment Consultant before taking any decision while investing, because they are the people who are generally close to them and know them very well, so our project was to find out, who are the people who can change their
9. 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). a leading international financial services group headquartered in the United Kingdom. because he is the person who control the financial detail of his client and his decision are generally consider as one of the most valuable decision . • Clients Advisor • Bank Name COMPANY PROFILE About ICICI Prudential:ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. ICICI Prudential's equity base stands at Rs. Detail.Most of HNI are usually depend upon their CA.decision to ICICI Prudential favour . So our main aim of the project was to find out the various details such as:• Chartered Accountants name • Chartered Accountant. a premier financial powerhouse and prudential plc. In .25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively.
For the past four years.the financial year ended March 31. ICICI Prudential Life is all about…… He alt h Total Protection h alt We We cover you at every step in Life Life VISION To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. ICICI Prudential has retained its position as the No.780 Crore and wrote nearly 615. 2005. the company garnered Rs 1584 Crore of new business premium for a total sum assured of Rs 13. The company has a network of about 56. . 1 private life insurer in the country.000 advisors. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. as well as 7 Bancassurance and 150 corporate agent tie-ups.000 policies.
where it can play a significant role in redefining and .This is what company hopes to achieve: Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly. Ownership and Passion.Integrity. the qualities of people and the way they work. efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to Company’s policyholders Providing an enabling environment to foster growth and learning for Companies employees And above all. Each of the values describes what the company stands for. Company believes that it is on the threshold of an exciting new opportunity. building transparency in all Company’s dealings. Boundary less. Customer First. The success of the company will be founded in its unflinching commitment to 5 core values -.
ICICI Bank posted a net profit of Rs. Given the quality of parentage and the commitment of its team. asset management and information technology. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking.1637 Crore for the year ended March 31. 2004. Government of India and representatives of the private sector in 1955 to encourage and assist industrial development and investment in India. Delhi. life and non-life insurance. PROMOTERS ICICI Bank:ICICI was founded by the World Bank. 024 Crore and a network of about 450 branches and offices and about 1750 ATMs.reshaping the sector. ICICI Bank is India’s second-largest bank with total assets of about Rs. Kolkata and Vadodara. Mumbai and the National Stock Exchange of India Limited and its American . ICICI Bank’s equity shares are listed in India on stock exchanges at Chennai.112. the Stock Exchange. there are no limits to its growth. venture capital.
2004. through its businesses in the UK and Europe.The Various segment of ICICI are . mutual funds. provides retail financial services products and services to more than 16 million customers.Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). the company had over US$300 billion in funds under management. pensions. As of June 30. Prudential plc. In Asia. Prudential has brought to market an integrated range of financial services products that now includes life assurance. Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve . investment management and general insurance. banking. Prudential plc:Established in London in 1848. policyholder and unit holders worldwide. the US and Asia.
it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. Lord Krishna Bank and some co-operative banks. having agreements with ICICI Bank. . India.000 insurance advisors to interface with and advise customers. Hong Kong. Federal Bank. MFIs and corporates for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi.14. The company has six Bancassurance tie-ups. South Indian Bank. Thailand and Vietnam. Taiwan. Further.countries . the Philippines. ICICI Prudential has recruited and trained about 2. Indonesia. Bank of India. Singapore. Malaysia. as well as over 150 corporate agents and brokers. It has also tied up with NGOs. Japan. a policy for the socially and economically underprivileged sections of society. Korea.China.
But the value of Life Insurance. Its 27 products can be enhanced with up to 6 riders. .. Value of benefit life cover Death Insurance Stock market Bond Maturity Time Period Products Insurance Solutions ICICI Prudential Life Insurance offers a range of innovative. to create a customized solution for each policyholder. Savings Solutions:• SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection.. customer-centric products that meet the needs of customers at every life stage.
Balancer and Maximiser. Protector. • CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage. • Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75. feature-packed savings plan that offers 3 levels of protection as well as liquidity options. .Preserver. • LifeTime & LifeTime II offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. • Save?n?Protect is a traditional endowment savings plan that offers life protection along with adequate returns. expenses for a child’s higher education or purchase of an asset. Each offer 4 fund options.• Cash Plus is a transparent. • LifeLink II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.
which offers life cover at very low cost. • InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.level term assurance. • InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options. Child Plans • SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. It is available in 3 options. SmartKid .• InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. level term assurance with return of premium and single premium. Protection Solutions • Lifeguard is a protection plan. The policy is designed to provide money at important milestones in the child’s life.
• Invest Shield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses. • SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.Salaam Zindagi. Market-linked retirement products • LifeTime Pension II is a regular premium market-linked pension plan • Life Link Pension II is a single premium market-linked pension plan. .plans are also available in unit-linked form.both single premium and regular premium. a social sector group insurance policy targeted at the economically underprivileged sections of the society. ICICI Prudential also launched. Retirement Solutions • Forever Life is a retirement product targeted at individuals in their thirties.
• ICICI Pru Group Term Plan: ICICI Pru?S flexible group term solution helps provide affordable cover to members of a group. The benefit under the . • ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The cover could be uniform or based on designation/rank or a multiple of salary. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. • ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.
• Accident & disability benefit: If death occurs as the result of an accident during the term of the policy. • Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. . depending on the specific needs of the customer. Benefits are payable to the insured for medical expenses prior to death. the beneficiary will be entitled to twice the sum assured as additional benefit. If the death occurs while traveling in an authorized mass transport vehicle. Flexible Rider Options ICICI Pru Life offers flexible riders. which can be added to the basic policy at a marginal cost. the beneficiary receives an additional amount equal to the sum assured under the policy.policy is paid to the beneficiary nominated by the member on his/her death. • Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.
ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures. till maturity. in the event of the death of the life assured. It is available on SmartKid. the premiums are waived till maturity.• Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies. • Income Benefit: This rider pays the 10% of the sum assured to the nominee every year. Keyman Insurance Plans A keyman is an individual who directly affects the profitability and the continuity of a business and whose absence may have an adverse effect on the health and continuity of the business. Keyman insurance is a life insurance policy taken by the company on the life of such a key person. This rider is available with SecurePlus and Cash Plus. SecurePlus and Cash Plus • Waiver of Premium: In case of total and permanent disability due to an accident. Cover is offered against 43 surgical procedures. .
Allahabad. debentures and other securities. Mutual Funds A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Aurangabad. The money thus collected is then invested in capital market instruments such as shares. in absence of the Keyman. DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. These are: Agra. The aim is to indemnify the company of these losses and to allow business continuity. Anand. Ajmer. Amritsar. having commenced operations in 74 cities and towns in India.The objective of the Keyman insurance is to provide the company with money so that the financial losses to the company can be protected. Bangalore. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Bareilly. All premiums paid for securing a Keyman life insurance policy are treated as business expenditure u/s 37 (1). . Ahmedabad.
Lucknow. These two Structures are: Bancassurance & Alliances Tied Agency Both types of structures are described as follows: Bancassurance & Alliances- . Saharanpur. Jalandhar. Indore. Rajkot. Mangalore. Hubli. Jamshedpur. Mumbai. Kanpur. Kochi.Bharuch. Kottayam. Bhatinda. Mehsana. Meerut. Durgapur. Noida. Hyderabad. Dehradun. Bhubhaneshwar. Coimbatore. Kozhikode. Patiala. Chennai. Goa. Jaipur. Chandigarh. Faridabad. Calicut. Guwhati. Guntur. Kolkata. Salem. Kolhapur. Rourkela. Jodhpur. New Delhi. Raipur. Gwalior. Ludhiana. Mysore. Ranchi. Kota. Bhopal. STRUCTURE OF THE SALES FUNCTION ICICI Prudential’s sales function is divided into two functional structures within the organization. Gurgaon. Nagpur. Karnal. Madurai. Jamnagar. Nasik. Pune.
The business philosophy at B&A is to leverage distribution synergies with there partners and add value to its customers as well as the partners. and with nearly a large number of partners. Within a short span of two years. contributing to approximately one third of company’s total business. B & A has emerged as a vital component of the company’s sales and distribution strategy. adaptation and experimenting with new ideas are the hallmarks of this channel.ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. Bancassurance Team includes: Banks ICICI Bank Federal Bank South Indian Bank Bank of India Lord Krishna Bank Some co-operative banks . The business philosophy at B&A is to leverage distribution synergies with its partners and add value to the business of both. Flexibility.
is as follows: . S M Insurance Investment Managers Emgee Muthoot Insurance The hierarchy structure of the ICICI Prudential Life Insurance Ltd.Corporate Agents Bajaj Capital India Infoline Way 2 Wealth Advanced Financial Services (Karvy) Blue Chip AHS APS Strategic Marketing Pvt. Ltd.
o Branch Sales Manager (BSM)/ Center Sales Manager o Sales Manager(SM) o Assistant Sales Manager (ASM) o Team Leader (TL) o Financial Service Consultant (FSC) Tied Agency: - .
tied agency has emerged as a robust. o Branch Sales Manager (BSM)/ Center Sales Manager o Sales Manager(SM) o Assistant Sales Manager (ASM) o Unit Manager (UM) IT INTEGRATION The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. With focus on sales & people development.Tied Agency is the largest distribution channel of ICICI Prudential. usually each unit manager have 20 to 30 advisors under them. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. comprising a large advisor force that targets various customer segments. who motivate them in every step by providing training and guidance to them. Generally this advisors works under the leadership of unit manager. predictable and sustainable business model. It is .
segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users, the Solutions GroupWeb that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application. The IT function is divided into two functional units and two staff units. Functional Units 1. Systems Delivery
Operations & Infrastructure
Staff Units 1. 2. IT Quality IT Architecture and strategy
Systems Delivery focuses on Business Analysis of processes and generation of business requirements in conjunction with the users, all activities within the Software Development Life Cycle (SDLC) starting with Business Requirements Analysis and ending with Implementation of a system that meets the requirement. These include vendor and platform evaluation and selection, system design, acceptance testing (Pre - UAT), and post implementation support. The systems delivery unit is aligned with the business organization by forming three vertical units: 1. 2. 3. Core Insurance Systems Distribution and Access Channel Systems Corporate Systems
IT Operations focuses on operating the applications at the agreed level, as per user requirements. This include running end of period batch jobs, executing downloads & uploads, executing report runs and batch queries, taking backups, maintaining tape libraries and executing review activities like security reviews etc. IT Infrastructure focuses on procuring, providing and maintaining the necessary hardware, Local network, branch network, e-mail network and internet access facilities in order to enable optimum automation across HO and all branches. This unit also provides local helpdesks at all required points. IT Quality focuses on improving SDLC and operations processes, defining benchmarks and for both, collecting It metrics, conducts reporting process
compliance reviews and in addition is responsible for framing the Information security policies. IT Architecture and Strategy evaluates existing architecture and strategies, and evolves the architecture that helps company maintain technical edge over competitors for the oncoming years. It is also
The CMM covers practices for planning. The CMM describes an evolutionary improvement path from an adhoc.Immature process to a mature disciplined process. The Capability Maturity Model for Software (CMM) is a framework that describes the key elements of an effective software process. trends and strategies and conduct research into their applicability in Company’s domain. engineering. and managing .evaluating new products.
ICICI Prudential have opted the CMM To Meet Customer/Market needs.software development and maintenance. schedule. To have Best Practices. The CMM can also be used by an organization to plan improvements to its software process. and product quality. To look for higher maturity by ensuring repeatability. in a repeatable way. The CMM has 5 Levels. When followed. 18 Key Process Areas (KPA's). these keys practices improve the ability of organizations to meet goals for cost. The CMM establishes a yardstick against which it is possible to judge. 316 Key Practices and 52 Goals. . the maturity of an organization's software process and compare it to the state of the practices of the industry. Usage of Statistical results on Processes for Continuous Improvement. functionality. A diagnostic tool to look into organization's strength and weaknesses.
Formation of SEPG (Software Engineering Process Group) A management representative is the chairperson of the SEPG. SEPG chairperson ensures that a core of Professionals representing all the technical groups of all verticals and functional groups of the organization form SEPG. Members of SEPG are given either full time or part time responsibility for SEPG activities like defining process.The processes in the IT department are scaled to meet all KPA's from CMM level 3 A Software Engineering Process Group (SEPG) is a team of software professionals with the responsibility of driving and facilitating software process improvement efforts within an organization. piloting the process / technology improvements and deploying the process / technology improvements. SEPG chairperson identifies the persons to carry out the tasks of SEPG SEPG chairperson reviews the SEPG activities on a quarterly basis (or depending on the business needs) and he/she identifies . transitioning technology and tools into the organization.
SEPG should consist of 6-8 members. Internal process assessment. Ensure members of the software team and other related groups receive orientation on the organizations software process activities. tool evaluation techniques and causal analysis. technology transition. . Develop and implement software process at the organizational level.the roles and responsibilities for the SEPG members on a rotational basis. Maintain the organizations software process assets. SEPG members are trained to perform statistical process control and analysis. Co-ordinate process / technology improvement activities at the organizational level. Responsibilities of SEPG Define organizational goals and measurement plans for software process performance in discussion with the Project Steering Committee. management activities.
The processes are as follows. Identify. Incorporate Effective process / technologies into the organization based on the organizations business plan and goals. Each process has artifacts associated to facilitate data collection during various stages. responsibilities. track changes and monitor the progress of the project/enhancement. Software Quality System . and commitment towards continuous support for the software quality system and process improvement. Explore potential areas for applying new technology. Management Responsibility Defines the management's accountabilities. select and evaluate new technologies. Review SEPG Activities Review and approve Software Process Improvement Plan ICICI Pru has defined 15 processes that cover the entire Software Development Life Cycle (SDLC) of a software project.
planning. analyzing. tracking and QA of the subcontracted work. provides means to monitor and control the progress of the project. reviewing and approval of requirements. Reviews – . Manages changes to requirements and project initiation activities.Defines the way the software quality system is structured and provides guidelines to make any changes to the same. Software Subcontract Management – Outlines defining the work to be subcontracted. Project Planning and Tracking – Describes the activities involved during the planning stage of a project. Requirements Management Outlines the activities involved in gathering. agreement on commitments with the subcontractor. Estimation – Outlines the estimation methods to be followed and managing changes to estimates.
Describes the steps involved in carrying a review activity and documenting the findings of the review. Design and Coding – Outlines the steps involved in translating the software components identified in the design document into software units that can be coded compiled and tested. Software Quality Assurance – Outlines the activities carried out by the SQA Software Configuration Management – Outlines the process involved in preparing the Configuration management plan. Enhancement and Post Production – . steps involved in releasing the tested software. identifying and base lining the configurable items. Testing – Outlines the steps involved in Planning and carrying out Testing of the software components.
which had the mettle to take up the six-sigma initiative. Process Improvement – Outlines the activities to be carried out for Software Quality System Improvements. Measurements – Describes the measurements to be collected at various stages of the project and the analysis to be done. As another step towards becoming a world-class service Organisation. Post Project Evaluation – Mentions the activities involved in evaluating the performance of the project after its completion. SIX SIGMA IMPLEMENTATION BY ICICI PRUDENTIAL.Outlines the processes to be followed for activities related to minor. ICICI Prudential have blended quality in the form of six sigma into all . It's quite some time now since ICICI Prudential took up this quality initiative and since then they have grown beyond expectations. medium and production related issues. ICICI Prudential is one of a handful of companies in the service industry.
90 2.75 2.14 2.their processes and systems.22 2.19 3.59 2.83 Cat B Non Blue Dart Blue Dart J ET (Cheque Date to Customer Received) Cat A Non Blue Dart Blue Dart Cat B Cat A Non Blue Dart MEDICAL (Medical Test to Customer Received) Blue Dart Non Blue Dart Blue Dart Non Blue Dart 11 12 13 14 Cat B Policy Issuance Sigma Level – HNI .95 3.04 3.78 3.11 3.97 3.93 3.Some of the figure of the sigma level are : Expense Processing MIS:- Policy Issuance Sigma Level:Policy Issuance .Sigma Levels J un-05 May-05 Apr-05 Norms Blue Dart Non Blue Dart Blue Dart Days 8 9 9 10 11 12 13 14 Cat A J ET (Login to Customer Received) 3.89 2.01 2.28 2.57 2.04 2. And that gave birth to a hybrid "Business Excellence" team with the people making processes and ensuring quality coming together to cut down cost and process inefficiencies.
3.21 2.Sigma Levels J un-05 May-05 Apr-05 Norms Blue Dart Non Blue Dart Blue Dart Days 11 12 13 14 J ET (Cheque Date to Customer Received) Cat A 2.86 3.71 3.89 2.49 2.07 2.15 2. Branch Discrepancy: Any error caught in the application form or underwriting sheet before data entry at COPS. Call Back Error: All errors identified at post issuance call back stage.34 2.64 2.60 Cat B Cat A Non Blue Dart MEDICAL (Medical Test to Customer Received) Blue Dart Non Blue Dart Blue Dart Non Blue Dart 11 12 13 14 Cat B Accuracy MIS 1.76 2. 4. Correction Complaints: All complaints received for errors on contract details 5.96 3. Accuracy MIS presents the number of error caught at various stages of policy issuance 2. Opportunities: All contracts issued in previous month .Policy Issuance .
99% 0.91% 175 207 24 406 25% 222 395 201 818 50% 389 18 0 407 25% • Data Capture: Error done while filling application form • Data Entry Error: Error done while doing data entry at COPS • Underwriting Error : Error done by underwriters Service – Overall .Business Data Data UnderErrors nities Ratio Capture Entry writing 786 620 225 1631 35032 31219 24617 2.Accuracy MIS Stage Branch Discrepancy Call Back Error Correction Complaints Total Errors Error % Error Type Opportu.24% 1.
52 2.49 3.13% 2.59% 0.84% 2.58% 4.54 2.9 3.48 2.65% 0.Service Sigma 6 5 4 3 2 1 0 Sigma Level 3.95% RESEARCH METHODOLOGY .79 Apr 05 Complaint May 05 Request J un 05 Target Category Complaints Requests Business Ratio Apr 05 May 05 J un 05 0.
Research is one of the most important parts in the survey to collect information and knowledge. collection. and reporting of data and findings relevant to a specific marketing situation facing the company. There Annual turnover 2. Marketing research is defined as the systematic design. To get all this information a thorough planning had to be done. Problem and Research Objective Our main objective was to find out the top HNIs (High net worth income) group and their various mode of investment. Who are there bankers 3. Who influence there investment decision 5. so I first started with designing the questionnaire for the clients whom I was going to target and to know about their investment pattern. analysis. The main things to be known from the clients were: 1. What is there annual investment . The main problem was how to find out the top twenty HNI clients from the bunch of people without knowing them in detail. There chartered accountant 4.
Research plan The research process depends upon developing the most efficient plan for gathering the needed information. Our objective was to find the “Synergy of HNIs with there Distribution Channel”. So from now onwards I started to target only to a special segment of the people. This objective had made our project too narrow because from now onward our task was to find the top industries and person who can invest above 1 crores and more then that. research approaches. The secondary data was the most important source for my project because my first aim was to find out the top five person or industries from every segment of the industries so for this reason I started . research instruments. sampling plan. Designing a research plan calls for decisions on the data sources. Data source For this project both primary and secondary data were the most valuable source of information. and contact methods. Secondary data:Secondary data provide a starting point for research and offer the valuable source of information.
Hotel Industries Directory. Carpet Industries Directory. HDFC Banks. Chartered Accountant Directory. Builders & Constructors Directories CNF Primary data:- . Transporter directory. The various directories are as follows: Telephone Directory. City directory. Indian medical association directory.collecting the various directory which can help me in finding out the desired information about the industries and people. Lawyers Directory. Income Tax office. Exporter Directory.
And I have used this method in my project to find out the company need .Primary data are data freshly gathered for a specific purpose.This method was the most appropriate way to collect data. The various sources of primary data for my project are as follows. I can meet with them to collected more information about them or who are my target people. And I started by collecting this directory from the various sources. Survey Research: . because at the starting point of the survey this information play a important part for me and this help me to short out the people which. People from industries Research Approaches:From the two data source which I have mention above secondary data are the easiest way to gather and the cost of collecting this data is very low and easily available from the respective association. There are basically five ways to collect data. After collecting the secondary data or information from the secondary sources then I started collecting from primary sources to narrow down my research. Local residents. Banks.
because this survey have no use for me Focus-group Research: . 4. Behavioral data:-This method was also not used by me in my survey. Qualitative Measures. Psychological tools. investment behaviors. From the above mentioned research instruments I had used only Questionnaires technique to find out the various information about the clients such as their turnover. who is their financial consultant etc.by identifying the suitable prospect in the city who can become the ICICI pru client. Observational Research:. Questionnaires. chartered accountant.This method is also not used by me in my survey. Mechanical Devices. 2.This method was not used by me in my project . And this was the . 3. the various methods are:1. Research Instruments:There is various way of research instrument of collecting primary data.
large sample give more reliable result than small sample. so for this reason I had taken around 40 people to whom I should focus upon. because from the bunch of people I had to select only those people .There are three way of sorting the data. o Sampling Unit: . . now I had to decide on the sampling plan which was one of the important task.and for me there only two ways of contacting them .who is to be surveyed? And now my task was to define the target population.technique which I felt the best way to extract information about the client Sampling Plans After collecting entire data and deciding on the research approach and instruments. which will be sampled from the number of people. o Sample Size: . because my target was only 20 clients.whom I can target from now onward . Contact Methods:Once the client had been decided now my task was how to contact them .
• Hotel Industries. because the client had no time for me.This method is also used by me for once. • Carpet Industries. Personal Interview: . Telephone: . Their personal behavior and many more things. .this method was the most appropriate way of survey. Major Industries of the city: Varanasi is usually considered as the land of Temple but it will be not wrong.1. • Textile Industries. 2. and there was no other option for me. The Various Industries of the city are:• Sarees Industries. • Transport. because by personal interview I came to know their feeling about the ICICI. if we say that it is also the land of rich people. • Oil Industries.
• “Etc” ANALYSIS OF DATA CHART Return clients are looking at:- Return clients are looking at 10% 5% Less than 10% B/W 10-15% B/W 15-20% Above 20% 40% 45% Returns client are looking at .
this is because they are getting more return from their earlier investment such as in the business and in real state. this shows that most of the businesses man wants to balance the risk and return of their investment so that there is no big loss in the future. . and secondly ICICI prudential and reliance. This is mainly because at present there is not much option for the client in the city.From the Above Pie chart. While some clients like to invest in other mutual funds as well. have opened their branches in the city recently. Mutual Fund Preference Chart From the below pie chart. HDFC emerge as the winners closely followed by Prudential ICICI. In this Mutual Fund preference. preference of the clients for the various mutual funds is depicted.this shows that most of the clients are ready to take risk for their investments. it is clear that most of the client are looking above 15% . this shows that they are willing to take more risk to get more return from their investments The second largest group is between 10% to 15%. Around 85% of the clients comes under this two category .
Mutual Fund Prefered 40% 40% HDFC Prudential ICICI Mutual IPO 20% Preference of Clients between Nationalized and Private Banks .
1. 2.Preference of Client Nationalized Bank Private Bank From the above chart it is very clear that the nationalized banks are far ahead in compare to private banks. a few years an ago. There are many factors. Nationalized banks are operating for many years in the city and the private banks had opened their branches. . which are affecting the decision of the people. Most of the nationalized banks employees are local residents which plays an important role in customer relation.
. 5. 7.while the private banks are unable to do this. There are more branches of the nationalized banks in compare to private banks. 4. Some of the private banks are charging more money for their service. The customer relationships of the nationalized banks are very old and for this reason customers are not willing to change their banks. While nationalized banks are not charging at all or very less in compare to private banks. most of the private banks are using metro city style of behavior while dealing with the clients and this behavior are not liked by most of the people 6. which makes people more interested in the nationalized banks. most of the clients wants a special attention to them while their visit.3. especially in preparing draft and other transaction. and this is very well done by some of the nationalized banks .
2. The factor which favor them are: 1. PRIVATE BANKS CHART . 4. It has 60% share in the banking segment. The service of the union bank is far better then any nationalized banks in the city.Nationalized Banks 6% 11% 6% 11% State Bank of India Bank of India Union Bank of india Punjab National Bank Central Bank of India Allahabad Bank 6% 60% From the above chart it is very clear that Union Bank of India is the leading nationalized bank of the City. Union banks if India had more branches in the city . They have better relationship with their clients. 3.which makes their clients easy to reach to their branches. Union bank provide additional facilities to its HNI clients.
Private Banks 50% 50% ICICI Bank HDFC Bank PRIVATE BANKS: .the pie chart shows the preference of the client for the various Private Banks. . It is very clear from the chart that ICICI Bank and HDFC are the two leading private banks of the city. • ICICI and HDFC brands name. This is mainly because. • These two banks are the first private banks which has opened their branches in the city. play an important part in their success in the city because people usually go through the name the company.
• Around 60% of the industries are more then 15 years old. this shows that they have a strong financial backing.AGE BRAKET OF THE IINDUSTRIES Age Braket 5% 20% 60% 15% Less than 5 years B/W 5-10 years B/W 10-15 years Above 15 years From the Above Chart it is very clear that most of the industries are very old. • They are very much stable in their fields or segment .
this is generally because banker are the people who generally interact with them and secondly HNI believe on their bankers because of the relationship .11% 5% Banker Internal Advisors Self Decision 84% • Form the above chart it is clear that most of the HNI relies on their own decision. . there are around 84% of the people who wants to take their own financial decision because either they do not wants to share their investment decision with other or they thinks that they are more intelligent to take decision of their own. • Secondly bankers are more prefer by the HNI.
Bank FD 20% 5% 2% 22% 17% RBI Bond Mutual Fund Unit Linked Plan/Insurance Real Estate Back into business 34% Preference investment Instrument Business emerge to be the most preferred investment instrument of the clients with maximum 34% of clients from all the clients preferring this as their favorite investment option Because. Bank FD emerges out to be the second most preferred option for the clients to invest in the market. it gives more return then any other investment. . This is also dependant on various reasons which are given as under: o Easy loans available against the Bank Fixed Deposits.
next preferred option for the clients is Unit link plan/Insurance. o With all this Bank FD also provides a decent return concerned the minimum of the risk in any of the available investment instruments. o We have seen above in the analysis of nationalized vs. private banks that nationalized banks are the more preferred ones.o Clients can withdraw their money at almost anytime giving them the option of maintaining Liquidity. this also adds weight to clients preferring Bank FDs due to trust build during all these years. Tenure of FD prefered 25% Short Term (Less than 2 years) Medium Term (B/W 2-5 years) Long Term ( More than 5 years) Not Known 50% 17% 8% . Then.
we can see from the above chart that there are majority of clients (from the clients who have disclosed this data) prefer the short term fixed deposits as their favorite option. INSURANCE PARTNER PREFERENCE CHART Insurance Partner Prefered 13% 47% 33% 7% LIC HDFC ICICI Prudential Oriental Insurance This chart show the preference of the people who had invested in the insurance sector. because of many factors such as:-. Most of the clients use the ideal money which they have to meet the uncertainty or short term requirement. and from the chart it is very clear that LIC is the leading company in this field. .
because there are many opportunity to cash in by both the company . because it is the first mover in the insurance sector and had capture most of the market by being first mover in this sector LIC had a very good network of agents. LIC is leading in this field mainly. . HDFC and ICICI Pru are the second in this field mainly because they had opened their branches recently and slowly they are capturing the market and in the future the ratio is decrease. and those are the back bone of the company. LIC had provided better service in the past which had made trust in the mind of the people and for that reason they feel more comfortable.
and this is one of the reasons why they .) because most of the employee in the public banks are local residents and they have their personal contact with them. Telephone Calling by the ICICI bank and ICICI prudential Advisors are disturbing the clientsThere is excess calling by the employee of the icici banks and by the Advisors of ICICI Prudential.FINDING Most of the HNI client prefers the nationalized bank in comparison to private banks. Secondly. The most common reason is that the public banks are operating for many years and they have developed a good relationship with their client and this is the reason why the HNI are not eager to move to the private banks. most of the clients want a special attention to them while their visit and this is very well done by the public banks (especially by the union banks of India.
The company image in the mind of the people The life long service of the company A very good channel of people (agents) Very good relationship with their clients . this is because of the brand name and LIC is also the first mover in the insurance sector and this is a great advantage for them. Most of the HNI clients. In the insurance sector LIC is the number one company prefer by the peopleLIC is the most prefer insurance company in the country. Money are kept ideal in the banks – This is a very good opportunities for the icici prudential to cash most of the HNI client in varanasi. because there is not much option for them for investment and most of the client prefer to keep a good amount of cash with them for uncertainty and for other reasons. There are lots of things which favors them are.are not interested in the bank nor in ICICI prudential. and the other reason is that most of the time Advisors try to meet the HNI clients without prior notice. this create a bad impression about the company.
• Industry competitors • Potential entrants. PORTER FIVE COMPETITIVE FORCES Competitive Force: Michael Porter has identified five forces that determine the intrinsic long-run profit attractiveness of a market or market segment. • Buyers. . • Suppliers. Lack of information or knowledge about the private Insurance Company. • Substitutes.
Threat of Intense Segment Rivalry: A segment like insurance sector which is very attractive because. So. for that reason ICICI prudential have a tuff competition with other competitors in this segment and secondly icici Pru had an experience of five years of this segment but on the other hand the company like. The numbers of Competitors are less in the Insurances sectors that makes this Sector attractive to most of the financial companies. • Franklin Templeton. . Etc. and these makes this segment attractive but on the other hand it already contains aggressive competitors such as: • Life Insurance of India. it is in the growing stage of the life cycle. • Reliance. • HDFC. • Unit trust Of India. • Bajaj Alliances • ICICI Prudential Life Insurance.
because of the restriction imposed by the Indian government on them. this segment is unattractive because there are many actual .LIC had more then 20 years of experience of this market. such as. But overall this segment is very attractive. this segment is more attractive for the companies. So for ICICI prudential there is threat mainly with the LIC. And in future this can lead to frequent price wars. and the exit barriers are low. This means that few new firms can enter into the industry and poor-performing firms can easily exit and for this reason. they can have a maximum of 26% stage in the company and secondly the companies should have certain amount of money with them as mention by the govt. Threat of substitute Product: -When we considers on the substitute products. If we look from this angle then this segment is moderate because the entry barriers are high for the foreign companies. Threat of new entrants: Segments attractiveness varies with the height of its entry and exit barriers. advertising battles and new-product introductions and will make it expensive to compete.
and potential substitutes for the product of ICICI prudential and all the competitors have almost similar product or plans. but they mainly differ in the service point of view. • The product is undifferentiated because most of the companies in the insurance sector provide almost same policies and investment plans.In this segment. Threat of Buyer’s growing Bargaining Power : -This segment is unattractive because the buyers possess strong or growing bargaining powers such as: • The buyer’s switching cost is low in the financial investment sectors. Threat of Suppliers Growing Powers: . the suppliers bargaining power is more. . because banks and CA are the easiest and the important channel to reach the client and for that reason they have the strong bargaining power.
So ICICI Prudential. which is mainly due to the ICICI Bank.SWOT ANALYSIS STRENGTH: Brand Name of ICICI:-The name of the ICICI is known in all over the country as number one bank in the private sector and this is the name which people have trusted for many years. do not have the crises of the brand name .
(ICICI BANK and Prudential). STRONG FINANCIAL BACKING: . And secondly it has a very good distribution channel which helps the company to get more clients from these reliable sources. which gives an edge over the other competitor especially nationalized insurance company like LIC.The Company has a very strong force of good marketing brain.the ICICI prudential had a strong financial backing from their promoter. which help the company to build trust on the mind of the people. These channel include Allied Banks like ICICI Bank Federal Bank South Indian Bank Bank of India Lord Krishna Bank Some co-operative banks Corporate Agents Bajaj Capita . STRONG SALES FORCE: .
So this is the strength which ICICI Pru can work upon more to get the maximum positive results. WEAKNESS: Lack of Information about the product:-Most of the product of the ICICI Prudential are known by the people. India Infoline Way 2 Wealth Advanced Financial Services (Karvy) Blue Chip AHS APS Strategic Marketing Pvt. S M Insurance Investment Managers Allied Corporate AgenciesStrong Marketing and Sales Promotion team ULIPs: Almost 90% of the total business of ICICI Pru is the business with the sale of ULIPs and only 10% of the products are the traditional insurance policies. Ltd. this is because .
where the competition is very tuft and are not concentrating on the other sector of the country mainly in the rural sector where there.A large part of the cities are uncovered by ICICI Prudential life insurance where they do not have any branches. OPPORTUNITIES: A large Part of cities are uncovered: . and this makes most of the people to avoid this plan because they feel difficulties to understand. this is mainly because they are operating for such a long time and .of lack of information about the product and bad marketing strategies by the company mainly in small cities FOCUSING MAINLY ON THE URBAN SECTOR:-ICICI prudential mainly focus on the urban sector of the country. Most of the Plans are too complicated:. The same is in the case of Mutual Funds. Some Top Nationalized banks should be made Allies: There are large parts of the cities were Nationalized banks have large number of clients in compare to private banks.ICICI Prudential insurance plan are too complex to understand for a layout person.
And slowly taking away a good market share.when we compare the ratio of Advisors with LIC.there is a good opportunities to converted those customer into ICICI prudential customer. Threat with some private banks: . and have a large size of the customer abase. because it is one of the oldest insurance company in the country.there are some banks which are providing these services to their customer. . so there is an opportunities to increase the advisor base by breaking the agents of LIC. There is a good opportunities to increase the Advisors base: . then we will find that there is a large gap between them.LIC is the greatest threat to ICICI prudential in the area of insurance sector. By making them allies. Threats: LIC: .
The cost of maintaining them is very less in comparison to the other department.BCG Matrix CASH COW: Tied Agency: -Tied agency are cash cow for ICICI prudential because they are the people who brings more customer to the company and cover a large area of the city and the cost of keeping them is very less because advisors works on the commission basis the this is the reason why they works so hard. Around 30 to 40 advisors work under one unit manager. .
but there is a greater chance. where most of the decision are taken by the HNI themselves. Dogs:- . if we convince their CA and through them we can reach to their client very easily and in future they can become star for the company but lot of investment is required.Corporate allies come under the Question marks because the city like Varanasi. Question Marks:Corporate. with little help or no help with their Chartered Accountant. . Secondly people recognized ICICI prudential as a part of ICICI bank and ICICI bank name is used by the ICICI prudential to get more customers and usually customer trust ICICI prudential because of ICICI banks.STAR: BANKERS:-Bankers are star of the company when we plot in the BCG matrix. because most of the HNI which the company gets is through the Bankers this is because most HNI have their Account in the Banks and they also rely on the banks for their investment.
.-As Insurance sector is at the growing stage. so there is no dog for the company at present and in future .No one at present. So I suggest that the company should market its brand in more aggressive manner.which are on the three section can become dog for the company RECOMMENDATION AND SUGGESSTION • Lack of information about the service provided By the ICICI prudential life insurance: Most of the client whom I meet during my survey told me that they were unaware of the service and scheme. most of the HNI client prefer and have their account in Nationalized banks. • Start Making Link with the Nationalized Banks to get more Business:When we look at the Small city like Varanasi. which the company is providing to the people. because this banks are giving good service for many years and If ICICI prudential can make tie-up with the employees of this banks then they can be able to get more business from this contact. This is mainly because of the lack marketing their product by the company.
So I suggested that some staff should be made to look after them. because of the Hidden cost which they come across while dealing with the bank.• Service of the ICICI bank should be improved: What I hear in Varanasi is that most of the HNI do not want to do business with the ICICI banks. I accept that this is the most successful mode of contacting the people. • Image of the ICICI should be improved in the City: Most of the time people do not want to do business with the ICICI. clients get disturb because of telephone call made by the advisors of ICICI prudential and bank. • Access Telephone Calling should be stopped: Most of the time. • More focus is given to the industrial class then the service class: - . but access calling create a wrong impression in the mind of the customer. and this is mainly because of their service and the banks do not give preference to them and there are many restrictions in their operations. because they are the customers who mainly give us the business.
It is generally known that more insurance are made by the service class to get reduction from the Tax.ICICI prudential are concentrating more on the industrial class then the service class. so we should also focus on the service class because they are the people who wants to secure their life by investing in the insurances sector and in the mutual funds. • More Local Employee should be hired by the company: The local employees will have their contact in the city and this can be use by the company to get more business from their contact and This will add additional benefit to the company . So I suggest that concentration should be given to this class also because the ratio of the service class is much high in the country.
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