CHAPTER-1

INTRODUCTION

1.1 INTRODUCTION TO THE COMPANY

Bajaj Allianz Life Insurance Company was established in 2001 with a
commitment to expand and reshape the life insurance industry in India. Bajaj Allianz is
the first life insurance company of India which is in profit & the profit is 63 crs. for 2006-
07.
The company’s wide range of products, distribution strengths and powerful brand
has driven its growth across a cross-section of people and cities. By 2007, the company
across t he 10, 00,000 policy milestone with a premium income of INR 3134 cr. And a
total sum assured in excess of 74 billion today, the company has established itself as the
No. 1 private life insurer in the country.

1.2 VISION
The fine Vision and Values make Bajaj Allianz, a leading Life and Pensions
player at the Indian Life Insurance Industry. Bajaj Allianz realize that customer seek an
insurer they can trust their hard earned money with. Let’s see, how?

 Ensuring world class solutions by offering customized products with

transparent benefits supported by the best technology.
 Developing and Implementing superior risk management and investment
strategies to offer sustainable and stable returns to the policyholders.
 Investing the premium earned strategically and with a well developed
planning, in various investment alternatives for providing higher security
and better returns to the customers.

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  Proving an enabling environment to foster growth and learning for our
employees.
 World class transparency in our dealings.

Each of our values describes what the company stands for, the qualities of our
people and the way we work.

1.3 PARTNERS
Bajaj Auto and Allianz AG came together in 2001 to from Allianz Bajaj Asset
Management Company, which has today emerged as the leading mutual fund in India.
The two companies bring together two of the strongest financial service brands in Asia,
known for their professionalism, excellent quality of service and long term commitment
to YOU.
Bajaj Auto has 74% stake in company, and Allianz AG has 26%.

1.4 Bajaj Auto

 One of the largest 2 & 3 wheeler manufacturer in the world
 21 million+ vehicles on the roads across the globe
 Managing funds of over Rs 5,329 cr.
 Bajaj Auto finance one of the largest auto finance cos. in India
 Rs. 6,340 Cr. Turnover & Profits after tax of 767 Cr. in 2004-05

1.5 Allianz AG
 Worlds Largest Insurance co. by revenue – Rs 5,20,353 Cr. (Euro 96.9 billion)
 Worldwide 2nd by Gross Written Premiums – Rs 4,77,930 Cr. (Euro 89 billion)
 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -
AUM of Rs 95,94,200 Cr (Euro 1078 billion)

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  11th largest corporation in the world

 50 % of global business from Life Insurance, close to 60 million lives insured

globally
 Established in 1890, 110 yrs of Insurance expertise
 More than 70 countries, 173,750 employees worldwide
 Insurance to almost half of the Fortune 500 cos.

1.6 Bajaj Allianz Life Insurance Company

Bajaj Allianz Life Insurance Company is a joint venture of between Bajaj Auto; a
one of the largest 2 & 3 wheeler manufacturer in the world, Allianz AG is world largest
Insurance Company by revenue based at Germany. Bajaj Allianz Life Insurance
Company world for 2001-02 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
Bajaj Allianz equity base stands at Rs. 3.75 billion with Bajaj Auto and Allianz
AG holding 74% and 26% stake respectively.

Bajaj Allianz Life Insurance Company

 No.1 Pvt Life Insurer FY 2006-07. Leading by Rs. 63 Cr (US $ 15.3mn).
 No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.
 Whopping growth of 216% for the FY 2005-06.
 Have sold over 34, 72,875 (3.4 million) policies to till date.
 Is backed by a network of 700 offices spanning the country.
 Largest distribution network to reach the customers across the country with 2, 13,
000 agents, 900 Offices in 840 towns, 200 corporate agents & Banc assurance
partners.

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 Accelerated Growth-
Fiscal Year No of policies GWP in FY
Sold in FY
2001-2002 21,376 Rs. 7cr.(6mths)

2002-2003 1, 15,965 Rs. 69 cr.

2003-2004 1, 86,443 Rs. 180 cr.
2004-2005 2, 88, 189 Rs. 857 cr.
2005-2006 7, 81,685 Rs. 2717 cr.
2006-2007 20, 79,217 Rs. 4270 cr.

 Assets under management Rs 5,500cr.

 Shareholder capital base of Rs 700 cr.
 Product tailored to suit your needs
 Decentralised organisation structure for faster response
 Wide reach to serve you better – a nationwide network of 900 + branches
 Specialised departments for Banc assurance, Corporate Agency and Group
Business
 Well networked Customer Care Centres (CCCs) with state of art IT systems
 Highest standard of customer service & simplified claims process in the industry
 Website to provide all assistance and information on products and services, online
buying and online renewals.
 Toll-free number to answer all your queries, accessible from anywhere in the
country – Call Now 1800 233 7272 and a strong tele-marketing and Direct
marketing team
 Swift and easy claim settlement process

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 Bajaj Allianz is the first life insurance company of India which is in profit & the
profit is 82 crs. for 2008-09.

Distribution
Bajaj Allianz Life Insurance Company has one of the largest distribution network
amongst private life insurer in India, having commenced operations in large No. of cities
and towns in India.
The company has the largest number of banc assurance tie-ups, with large national
& Pvt. Sector banks:
– Standard Chartered Bank
– Syndicate Bank
– Jankalyan Sahakari Bank
– Jijamata Sahakari Co-operative Bank
– Tie-ups with 7 RRBs and 35 DCBs
It has also tied up with large Regional Banks.
Bajaj Allianz Life Insurance Company has recruited and trained over 2 Lacks
insurance agents to interface with and advice customers, and has the highest number
amongst private life insurers on the renowned Million Dollar Round Table (MDRT).
Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of
service to customers.

1.7 Indian insurance industry - introduction

India is a largest democracy in the world having a population more than one
billion. It is 5th largest in the world in term of purchasing power parity (PPP). India GDP
growth Rate is over 6% per year on average for the last decade and saving rate is around
26% of GDP.
Through India’s economy development, it becomes the most lucrative insurance
Markets in the world. Before the year 1999 there were monopoly of state run Life
Insurance Corporation of India (LIC) in life insurance sector and General Insurance

47
 Corporation of India (GIC) with its four subsidiaries in general sector. In the wake of
reform process and passing Insurance Regulatory Development Act (IRDA) through
Indian Parliament in 1999, Indian Insurance was opened for private Companies.

1.8 About the Insurance

Insurance is contract between two parties whereby one party called insurer
undertakes in exchange for a fixed sum called premiums, to pay the other party
happening of a certain event. Insurance is a protection against a financial loss arising on
the happening of an unexpected event.
Insurance Companies collect premium to provide for this protection. A loss is paid
out of this premium collected from the insuring public. The Insurance Company act as a
trustee to the amount collected through premium. Insurance is generally classified in
three categories,
(1) Life Insurance
(2) Health Insurance
(3) General Insurance.
To get insurance as individual or an organization can approach to Insurance Company
directly, through Insurance agent of the concerned company or through Intermediaries.

1.9 Benefits of Insurance

Insurance is the instrument of security, saving and peace of mind. It provides
several benefits by paying a small amount of premium to an insurance company as:
(1) Safeguards oneself and one’s family for future requirement.
(2) Peace of mind in case of financial loss.
(3) Encourage saving.
(4) Tax rebate.
(5) Protection from the claim made by creditors.
(6) Security against a personal loan, housing loan or other types of loan.
(7) Provide protection cover to industries, agriculture, women and child.

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1.10 Insurance Regulatory Authority:-
On the recommendation of Malhotra Committee, an Insurance Regulatory
Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to
activate an insurance regulatory apparatus essential for proper monitoring and control of
the insurance industry. Due to this Act several Indian private companies have entered into
the insurance market, and some companies have joined with foreign partners.
In this economy reform process the Insurance Companies will boost the socio-
economic development process. The huge amount of funds that will be at the disposal of
Insurance Companies will be directed as desired avenues like housing, safe drinking
water, electricity, primary education and infrastructure. The growth of the debt market
will also get a boost. Above all the policyholder will get better pricing of products from
competitive insurance companies.
Life Insurance is universally acknowledged to be an institution which eliminates
“risk” and provides the timely aid to the family in the unfortunate event of death of the
breadwinner.
Life Insurance is a contract for payment of a sum of money to the person assured
(or nominee) on the happening of the event insured against. The contract provides for the
payment of an amount on the date of maturity or at specified dates at periodic intervals or
at unfortunate death, if it occurs earlier.
There are some benefits of Life Insurance as:
Protection: Life Insurance guarantees full protection against risk of death of the assured.
In case of death, full sum assured is payable.
Long term saving: Life Insurance encourage long term saving by paying a small premium
in easy installment for a long period a handsome saving can be achieved.
Liquidity: Lone can be obtained against a policy assured whenever required.

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Tax Profit: Tax relief in income tax and wealth tax availed on the premium paid for Life
Insurance.

By the year 1956, 154 Indian Insurance, 16 Non- Indian Insurance and 75
provident societies were carrying on Life Insurance business in India. On 1 st September
1956 all the Insurance Companies were nationalized.
On September 1956, LIC Act was passed by Indian Parliament and the state run
Life Insurance sector.
In the year 1999, the Insurance Regulatory Development Act (IRDA) was passed
in Indian Parliament. By this act a door was open for private companies with foreign
equity Life Insurance. By this act an Indian promoter can invest either wholly in
insurance venture or team up with a foreign insurer, with a cap of 26% of equity for a
foreign partner.

1.11 History
Life Insurance in its present from came to India from the United Kingdom with the
establishment of a British firm Oriented Life Insurance Company in Calcutta in 1818
followed by Bombay Life Assurance Company 1823. The Life Assurance Companies
Act. 1912 was the first statutory measure to regulate life insurance business.
In the 1938, earlier legislation was consolidated and amended by the Insurance
Act 1938, with comprehensive provision aimed at exercising effective control over the
activities of insurers. The main concern was to protect the interests of the insuring public.
The Act was amended in 1950 resulting in far-reaching changes in the insurance
sector. By 1956, 154 Indian insurance, 16 foreign insurance and 75 provident societies
were carrying on life insurance business in the country.
In January 1956, in keeping with the then prevailing political and economical
philosophy of socialism, 245 Indian and foreign insurers and

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Provident societies operating in Indian were taken over by the Central Government by an
Act of Parliament, the Life Insurance Corporation Act 1956. The LIC with a capital of
Rs. 5 corers was set up September that year.

1.12 Privatization
As part of the wide-ranging economic reform initiated in 1991, the structure of the
Insurance sector was examined by a committee headed by Mr. R. N. Malhotra. The
committee’s recommendation to open up the sector to private sector participation was
implemented by the Government in 2000. The key element in the reform process was the
participation of overseas insurance companies, through restricted to 26% of the capital.
With the Insurance Regulatory and Development Authority Act, 1999 (IRDA)
formally coming into force, the insurance industry was opened up for private sector
participation.
The main objective of setting up the IRDA was to protect the interest of policy
holders and to regulate, promote and ensured orderly development of the insurance
industry.
Over four decades the industry has been a State monopoly. Till date the LIC has
insured over 120 million individual and has a vast sales network of over 7 lakh insurance
agents. The industry is witnessing an upsurge in consumer awareness, building immense
and unavoidable pressure among the players.
Within the short time since the opening up several insurance companies have been
licensed by the IRDA.
Indian is a market of mainly small policies. The average annual life premium is
less than the equivalent of $ 100 Indian is also marketed by a very low insurance
penetration rate. Although no authentic statistics is available, a rough estimate is that only
20% of the insurable population is insured.

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1.13 Distribution Modes
 Most new entrants are targeting the Indian middle class segment estimate at
over 250 million persons.
 High focus on direct selling-the preferred route is the agency network. The
agency channel constitutes 90-95% of the market.
 Alliance with banks: Insurance is using branch network s to sell insurance
products. This enable insurance to leverage on low distribution costs by
using existing network. Insurers are also targeting bank employees as per
prospective customers and agent to market products.
 Non-bank alliances: These are tie ups with non-governmental organizations
(NGOs) mainly to tap the rural market. This would be enable insurers to
ensure IRDA compliance with respect to rural coverage.
 Retail financial service distribution: This involves the tie ups with NBFCs
to act as corporate agent, and also enable insurers to cross sell with other
financial services.
With the entry of private insurers, the market is already seeing a wide array of
products. Insurers today are not merely looking at offering the basic life insurance
solution, but offering products with a combination of benefits (riders) which could be
bundled/customized to suit an individual’s need. Insurance is also being promoted as a
sound long-terms investment option.
In terms of returns insurance products today offer a competitive 7-9 percent.
Besides return when really increases the appeal of insurance is the benefit of life

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protection from insurance products along with health cover benefits. The tax benefits are
also attractive.
While the plain individual insurance (whole life, term etc) will remain popular,
sale of new products such as single premium, unit-linked, retirement products, money
back and annuity are set to rise. With Parliament passing the Insurance Amendment Bill,
non-profit products are likely to become increasingly prevalent.
The table below shows the first year premium income of some of the private insurers
fully operational in the year 2006-07.

Insurance as on date
COMPANY FOREIGN MAJOR LOCAL BUSINESS OF
SHAREHOLDERS SHAREHOLDERS LOCAL
HAREHOLDERS
Allianz Bajaj Life Allianz Bajaj auto Auto Manufacture
Birla Sun Life Sun Life of Canada Birla Global Diversified
Finance Conglomerate
Medical &Consumer
Bharti Axa Axa Bharti Telecommunication
Dabur CGU CGNU Dabur Products
HDFC Standard Standard Life HDFC Investment & Finance
Life
ICICI Prudential Prudential (UK) ICICI Investment & Finance
Life
ING Vysya Life ING Vysya Bank Bank & Other
investors
Max New York life New York Life Max India Diversified
Conglomerate
Jammu &Kashmir Bank &Diversified
Met Life India Met Life Bang,Pallonji Group Conglomerate
OM Kotek Old Mutual Kotek Mahindra Investment & Finance
Mahindra
Reliance AMP Reliance Investment,
Technology &
Chemical
SBI Life Cardiff SBI Bank
TATA-AIG Life AIG TATA Diversified
Conglomerate

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 Tab.1.1
New entrants will constantly explore avenues to increase the number of distribution
channels through a variety of distribution patterns, given the customer profile.

1.14 Rural and social insurance

As per the IRDA regulation, all insurers have an obligation to fulfill in the rural
and social sector. This obligation is expressed as a percentage of total policy sales in the
rural sector and number of lives insured in the socially weaker section of society to the
total.
The rural obligations are to sell specific percentages of policies to the ‘rural sector’
5% in 1st year, 7.5% in 2nd year and up to 15% in 5th year. In social sector, insurers are
required to insure a specific of lives 5000 in 1st year, 7500 in 2nd year and up to 20000
lives in 5th year and beyond.
In these areas, local partnership established by private players matter. Some of
them have roped in the village or panchayat heads to comply with the rural obligation.
Some private insurers have tide up with non government organization (NGOs) to satisfy
the social obligation.
It is expected that these rigorous requirement will help increase insurance
penetration and provided the much need insurance protection to the segments that
constitute a large percentage of the population. In short, it is expected that insurance will
gradually cease to be more urban phenomenon.
1.15 Customer service
In this competitive scenario, a key difference in gaining a winning edge is the
customer service provided by the insurers, be it, in terms of quality of advice given by the
distribution channels (advisors, bank) or policy processing to settlement of claims.

47
 For the first time in four decades the customer is really the focus and companies
are varying with one another to perform to very transparent and tight benchmarks of
service.
It is significant that the IRDA has brought out regulation that prescribes service
standards and parameters. These policyholder Protection Regulations are comprehensive;
they ensure transparency and accuracy, fix responsibility on insurance companies for
several areas involving customer service etc. This piece of legislation is seen as a
landmark in India.

1.16 Role of technology

In the present competitive environment technology will play a definite role in
achieving a competitive edge. Technology will play an increasing role in aiding design
and administering of insurance products, as well as building and maintaining long term
customer relationship.

1.17 Future opportunities

Opening up of the pension’s sector: Considerable discussion has taken place on
this subject, only 11% of the working population is protected by some form of retirement
benefits. It is learnt that a detailed proposal is before the government to open up the
pension sector. Providing coverage through a national pension scheme is challenging; but
it is necessary, particular for the non-salaried or self employed workforce and those
engaged in agriculture.
The life insurance industry has come alive, awareness has increased and it is being
expected that the market will grow fast. In five years one will be looking at an annual
premium income of Rs.1, 00,000 crores in the life insurance sector. Life Insurance will,
at long fast attain its rightful place in the economy.

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 Chapter – 2
Conceptual Frame Work
2.1 Overview of the Advertisement:-

Advertisement, which is a crux of any economy, plays a pivotal role in the

economic progress of a nation. Advertising is indeed the only direct method, which helps
to reach masses of potential buyers. Advertising being dynamic, changes with changing
method of distribution & consumption. Advertisement has become the part of life for
everyone as a listener through some media or other.
In the present era of information explosion & media influence, these
advertisements play a major role in changing the settled perception or thinking, which is
otherwise called attitude, of the consumer & also the communication pattern of the
society in general.
Thus, the impact leads to cultural & social changes to a great extent. Under this
situation, efficacy of the manufacturers, marketers & advertisers is tested in churning out
advertisements, matching the expectation of the consumers, which may gradually bring
about desired attitudinal changes in them.

2.2 Defining Advertisement:-

The term advertisement originates from the Latin word "adverto" that means "to
turn around". The dictionary meaning of the word is "to announce publicly" or "to give

47
public notice ". In other words it may be interpreted as to turn the attention of the people
concerned to a specific thing which has been announced by the advertiser publicly in
order to inform & influence them with the ideas which the advertiser carries.

Albert Lasker, considered as the father of modern advertising, defined advertising

in the beginning of 20th century as "salesmanship in print, driven by reason why”. This
definition evolved when TV & Radio were not invented.

According to American Marketing Association, “Advertisement is any paid form

of non-personal presentation & promotion of ideas, goods & services by an identified
sponsor".

2.3 Five Ms of Advertisement:-

In developing an advertisement program a marketing manager must always start
by identifying the target market & buying motives, then they can proceed to make the
five major decisions in developing an advertisement program, known as five Ms of
advertising-

Mission: - What are the advertising objectives ?

Money: - How much can be spent ?
Message: - What message should be sent ?
Media :- What media should be used ?
Measurement:- How the results should be evaluate?

Message
-Message generation
-Message evaluation &
Selection
Money -Message execution

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 Factors to consider -Social responsibility
Mission -Stages in PLC Review
sales goals - Market share &
Advertising Consumer base
Objectives -competition & Clutter Media
-Advertising frequency -Reach, frequency, impact Measurement
-Product substitutability -Major media types -Communication
-Specific media vehicle Impact
-Media timing
-Geographical media allocation

Fig : 2.1 Five M’s of Advertisement

2.4 Objectives of Advertisements:-

1. Informative: It aims to create awareness & knowledge of new product or new features
of existing products.
2. Persuasive: It aims to create liking, preference, conviction& purchase of existing
product & service.
3. Reminder: It aims to stimulate repeat purchase of products & service.
4. Reinforcement: It aims to convince current purchasers that they made the right choice.

2.5 Need for Advertisement:-

Advertisement plays a major role in every walk of life. The divergent section of
society may need advertisement for a variety of reasons from information sharing to
consumer persuasion to decision making. The paramount reasons, which may necessitate
the use of advertisement, may be:
1. Advertising is a way of communicating information to the consumer, which enables
him or her to compare & choose from the products & service available. Advertisement
enable consumer to exercise their rights of free choice.
2. Advertising is the most economical means by which a manufacture or an institutional
body can communicate to an audience whether to sell a product or promote a cause of
social welfare such as a civic drive or an immunization program.
3. Advertising, being a necessary means of communication is an inseparable part of free

47
speech. Any restrict the right to recommended legitimate goods, services or ideas in
public will diminish the fundamental right of freedom of speech.
4. Advertising can help in improving the economies of developed & developing
countries. Advertising stimulates increase in production & consequently generates more
employment. It can help stabilize prices& thus lead to wider distribution & greater
availability of goods & services.
5. Advertising is an essential & integral to the marketing system. it is sometimes
maintained that the marketing system is nothing but the consequence of a country’s social
& economic growth. The fact is that the advertising is the main key tools used to a
country

Essential of effective advertisement:-

The measure of any advertisement is its effectiveness in reaching out to the
consumer there are a few agreed principles, which govern the effectiveness of an
advertisement. Some of the principles, which are key ingredients of an effective
advertisement, have been dealt here.

1. Importance of claim:- Many advertisement make important claims. But these claims
should be important for consumer too. If buyers give importance for quality, there is no
point in speaking about the cheap price, similarly if cheap price is important the
advertisement should highlight only that. Now a days advertising agencies concentrate on
USP, i.e., unique selling proposition. Each advertisement must make a strong factual
claim to pull the consumer into the store to buy.
2. Believable: An advertisement must be believable. This can be incorporated in many
ways. One way is to quote facts & figures about test proving your claims. The readers
believe sometimes advertisement given in prestigious magazines.
3. Uniqueness: The advertisement itself must have something unique about it.
Uniqueness draws attention. According to the four-fold principal of AIDA ( Attention,
Interest, Desire,& Action-buying), any effective advertisement should draw the attention

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of the customer.
4. Repetition: It is better to have a long series of small advertisement than one extremely
long advertisement. Repetition is a basic principal of memory. Naturally, the more times
an advertisement is run, the more likely is that any person has seen one of the
advertisements recently.

2.6 Importance of Advertisement:-

As a component of the communication mix advertising makes a distinct
contribution to the sales volume & profitability, which attract many marketing executives
to assign it a relatively more important role in the overall marketing strategy. Some of
these contributions are-
1. It stimulates
2. Enhances consumer satisfaction.
3. Increase sales volume.

2.7 Promotion Mix

Promotional mix for the sales of discussion could be divided into their categories :
Personal selling, Advertising and Sales Promotional activities.
Personal selling and advertising are the two forms of promotion. They influence
cost and market impact. Personal selling is always supported by the backing of
advertising. Other forms that support successful implementation of the propmotional
programmes are point of purchaser display.
1. PERSONAL SELLING :

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 Personal selling gives right products to right customer. It gives product and service
feature as benefit to the buyer and persuades the buyer to buy right thing with right
quantity. The sale never takes to estimate that they have been sold the object but the
service proved that they are their things. They have faith in the salesman as a source of
prouct information and advice. It is beacuse of the effort of salesman that such products
like detergents come to market to retailers by personal efforts. Hence. it is the most
effective and the most costly form of promotion. It has the advantage of personal
contact.

2. ADVERTISING :
It has the impersonal contact and gives message to the receiver. The advertiser
uses visual media like news-papers, magazines, radio, television, posters and pamphlets.
There is no feed back to know the response from the people. Advertising is directed
towards consumers. This leads to more expenses and so the things become a costly affair.
Advertising costs are low per message received as it is witnessed by thousands and
if calculated the cost comes to nothing. But it is of impersonal nature. It acquaints the
person of the availability of goods so that he may buy at a later time. It makes the selling
job easier.
3. PACKAGING :
It differentiates the product with protection. Thus packaging plays dual role. It
calls the attention of the products in retails stores. Secondly it carries selling message and
other information. Good packaging design attracts the shopper from other items.

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 CHAPTER-3

RESEARCH METHODOLOGY

Problem:- The impact of advertisement in purchase decision of life insurance products

Objectives of Research:-
• Awareness about the Life Insurance Companies.
• To find the level of customer satisfaction.
• To suggest appropriate strategies for enhancing customer
satisfaction.
• To get an insight into insurance market and its contribution
for Indian economy..
• A Study on the impact of advertisement in purchase decision
of life insurance product in Rajasthan with special reference
Chittorgarh.

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S. No. Particulars Description

1. Project Title The impact of advertisement in purchase

decision of life insurance products

2. Sample Size 100

3. Sample Unit Businessman (Middle and High) and

Service Persons (Doctor, Lecturers,
Lawyers, Government Service Persons,
Bankers etc.)

4. Area Covered Chittorgarh

5. Sampling Procedure Random Sampling

6. Research Design Exploratory

7. Data Collection Survey

Method

8. Research Instrument Questionnaire

9. Type of Questionnaire Structured

10. Type of Questions Close Ended, Open Ended Questions

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 CHAPTER-4

ANALYSIS & INTERPRETATION

(1) Do you invest money?

S. No. Particulars No. of Respondents Percentage

1. Yes 92 92%

2. No 8 8%

Table 4.1

Aw areness about Investment

8%

Yes
No

92%

Fig.4.1

Interpretation
According to survey, it was found that approx 92% people invest their money and
8%people doesn’t invest their money

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(2) Where do you invest money?

S.No. Particulars No. of Respondents Percentage

1. In Share Market 15 15%
2. In Bank 30 30%
3. In Life insurance 20 20%
4. Post office & 35 35%
Property

Table 4.2

Preference for investment

40 35
35 30
30
25 20
20 15 Series1
15
10
5
0
In Share In Bank In Life Post office
Market insurance &
Property

Fig. 4.2

Interpretation
According to survey, it was found that approx 15% people are invest their money in
Share Market, 30%People in Bank and 20% in Life Insurance and 35% people in Post
Office & in property.

47
3) Do you have Life insurance?

S. No. Particulars No. of Respondents Percentage

1. Yes 90 90%

2. No 10 10%

Table.4.3

Percentage of Insured people

90% 10% Yes

No

Fig.4.3

Interpretation

According to survey, it was found that approx 90% people are already insured and
10%people are not insured.

(4) If yes then in which company?

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S.No. Particulars No. of Respondents Percentage
1. Bajaj Allianz 15 15%
2. ICICI Prudential 20 20%
3. LIC 55 55%
4. Max New York 5 5%
5. Others 5 5%

Table.4.4

Life Insurance Investment Alternatives

60 55

50
40

30 Series1
20
20 15

10 5 5

0
Bajaj Allianz ICICI LIC Max New Others
Prudential York

Fig.4.4
Interpretation

According to survey, it was found that approx 55% people are insured from LIC,
20%People are insured from ICICI Prudential, 15%people are insured from Bajaj Allianz
and 5% people insured from Max New York company and 5%people insured from other
companies.

(5) Have you heard about the Bajaj Allianz life insurance company?

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 S. No. Particulars No. of Percentage
Respondents
1. Yes 85 85%

2. No 15 15%

Table 4.5

Popularity of Bajaj Allianz

15%

Yes
No

85%

Fig 4.5

Interpretation

According to survey, it was found that approx 85% people are know about Bajaj
Allianz Life Insurance Co. and 10% people are not know about it.

(6) From which source you came to know about Bajaj Allianz Life Insurance
Company?

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 S.NO. Particulars No. of Respondents Percentage

1. Advertisement 22 22%
2. Advisor/Executive 40 40%
3. Friend/Relatives 18 18%
4. News paper/Magazine 12 12%
5. Any other 8 8%

Table.4.6

Mode of information for Bajaj Allianz

45
40
35
30
25
20
15
10
5
0
e

r
ive
t

es

he
en

in
iv

az
ut
m

ot
at
c
se

ag

y
xe

l
Re

An
r ti

r/M
/E
ve

/
nd
or

pe
Ad

ie
vis

pa
Fr
Ad

s
ew
N

Fig.4.4

Interpretation
According to survey, it was found that 40% people come to know about the Bajaj
Allianz Life Insurance Company with the help of their Executive, 18%people come to
know through friends/relatives, 22%peolpe come to know through Advertisement, 12%
through News paper/Magazine and 8%people come to know through any other medium

47
 (7). Give Rank to following features of Bajaj Allianz Life Insurance Company
which you like most

Very Good Good Average Bad Very

Bad
1.Quality of Services 23 35 26 12 4
2.Risk 34 18 32 10 6
3.Tax Benefit 21 28 38 8 5
4. Return 33 20 27 11 9
5.Maturity Period 18 26 45 7 4
6.Security 20 14 49 11 6

Table 4.7
1. Quality of Services

Particular No. of %
respondent
Very 23 23%
Good
Good 35 35%
Quality of services
Average 26 26%
Very Bad
Bad 4% Very Good Bad 12 12%
12% 23% Very Good
Good
Average Very Bad 4 4%
Average
26% Bad
Very Bad
Good
35%

Interpretation: - Bajaj Allianz Life Insurance Company Provide good quality of services
according to respondent.

47
2. Risk Cover

Particular No. of %
respondent
Very 34 34%
Good
Good 18 18%

Average 32 32%

Bad 10 10%

Very Bad 6 6%

Risk cover

Very Bad
Bad 6%
10% Very Good Very Good
34%
Good
Average
Average Bad
32% Very Bad
Good
18%

47
Interpretation: - Bajaj Allianz life insurance Company Provide Very good Risk Cover
services according to respondent.

3) Tax Benefit
Particular No. of %
Tax B enefit
respondent
Very 21 21%
V ery B ad
B ad 5% V ery Good
Good
8% 21%
V ery Good Good 28 28%
Good
A verage
A verage B ad Average 38 38%
38% Good
V ery B ad
28%
Bad 8 8%

Very Bad 5 5%

Interpretation: - Bajaj Allianz life insurance company Provide Average Tax Benefit
according to respondent.
4) Return
Particular No. of %
Interpretation:- Bajaj Allianz life insurance respondent
company Provide Very good Return according to Very 33 33%

respondent Good
Good 20 20%
Particular No. of %
Average 27 27%
respondent
Very 18 18%
Bad 11 11%
Good
Good 26 26% Very Bad 9 9%

Average 45 45%
5). Maturity Period
Bad 7 7%

Very Bad 4 4%
47
 M a tu r it y P e r io d

V e ry B a d
B a d V e ry G o o d
4%
7% 18%
V e ry G o o d
Good
A v erage
Good Bad
A v e ra g e
26%
45% V e ry B a d

Interpretation:- Bajaj Allianz life insurance company Provide Long Maturity Period so
respondent gave average rank to it.
6) Investment security

Particular No. of %
S ecu rity
respondent
Very 20 20%
V ery B ad
B ad 6% V ery G ood Good
11% 20%
V ery Good
Good 14 14%
G ood
Good A verage
Average 49 49%
14% B ad
V ery B ad
A verage Bad 11 11%
49%

Very Bad 6 6%

Interpretation:- For Investment Security Bajaj Allianz life insurance company got
average rank from respondent .

47
8) Is company’s Advertisement fulfilling your motive in purchasing behavior?

S. No. Particulars No. of Respondents Percentage

1. Yes 75 75%
2. No 25 25%

Table 4.8

47
 Effect of Advertisement

25%

Yes
No

75%

Fig 4.8

Interpretation:- According to survey 75% people said that company’s Advertisement

fulfilling their motive in purchasing behavior?

9). Which one advertisement tool affects you most of Bajaj Allianz?
(Assign Ranking)

47
 Advertisement Tool Score %
Advisor 525 35
Newspaper/Magazines 255 17
TV Advertisement 390 26
Electronics media 240 16
Other 90 6
Total Marks 1500 100

Table 4.9

Effective Advertisement tool

40
35
30
25
20
15
10
5
0
s

ia
en
ne

er
or

ed

th
m
is

i
az

m
dv

O
se
ag
A

cs
ti
er
/M

ni
dv
er

tro
A
ap

c
le
TV
sp

E
ew
N

Usage of Advertising Tools

According to survey the advisor is the most effective tool used by the company to
both the urban and rural consumer and companies need to increase them.

47
 Television was also considered very effective but being costly it is used less
frequently and third place occupied by Newspaper and after this Electronics and so on
other advertising medium used by company for publicity.

10) Is the agents/advisor meets you regularly & provides updated information about
new product?

S. No. Particulars No. of Respondents Percentage

1. Yes 62 62%
2. No 38 38%

Table 4.10

Information by advisor

38%

Yes
No
62%

Fig 4.10

Interpretation:-
According to survey it was found that 70% insurance agent
meet them and update them about new product and 30% insurance agent are not
meet them and update them about new product

47
47
11. Are you satisfied with advertisement of Bajaj Allianz Life Insurance Co.?

S.No. Particulars No. of Respondent Percentage

1 Completely satisfied 29 29%
2 Satisfied 37 37%
3 Partial Satisfied 19 19%
4 Dissatisfied 11 11%
5 Completely Dissatisfied 4 4%

Table 4.11

Satisfication with Advertisement

40
35
30
25
20
15
10
5
0
Completely

Satisfied

Dissatisfied
Satisfied

Dissatisfied
Completely
Partial
satisfied

Fig 4.11
Interpretation:-

Its shows 29% people are Completely satisfied with Advertisement of Bajaj
Allianz Life Insurance Co., 37% Satisfied with Advertisement, 19% Partial
Satisfied with Advertisement, 11% Dissatisfied with Advertisement and 4%
Completely Dissatisfied with Advertisement .
Z-Test

47
  Are you satisfied with advertisement of Bajaj Allianz Life Insurance Co.?

S.No. Particulars No. of Respondent Percentage

1 Completely satisfied 29 29%
2 Satisfied 37 37%
3 Partial Satisfied 29 29%
4 Dissatisfied 11 11%
5 Completely Dissatisfied 4 4%

Null Hypothesis- The customers of Bajaj Allianz are not satisfied with the
Advertisement of the Co.
X f fx fd d2 =(x-x)2 f(x - x)2
5 29 145 0.94 27.26 0.8836 25.6244
4 37 148 -0.06 -2.22 0.0036 0.1332
3 29 87 -1.06 -30.74 1.1236 32.5844
2 11 22 -2.06 -22.66 4.2436 44.6796
1 4 4 -3.06 -12.24 9.3636 37.4544
Total 100 406 -40.6 140.4765

47
 σ= 1.113

Z = 1.06/0.1113

Z = 9.54

The calculated value is more than table value. 9.54>2.576 so the

hypothesis is rejected and accept the alternative hypothesis. Hence, The

47
customers of Bajaj Allianz are satisfied with the Advertisement of Bajaj
Allianz Co.

12) How would you like to rank the advertisement of Bajaj Allianz with comparison
to other companies?

S. No. Particulars No of Percentage

Respondents
1. Excellent 15 15%
2. Very Good 58 58%
3. Good 19 19%
4. Fair 6 6%
5. Poor 47
2 2%
 Table 4.12

Advertisement Efficiency with comparison to

other conmpanies

70
58
60
50
40
Series1
30
19
20 15
10 6
2
0
Excellent Very Good Good Fair Poor

Fig 4.12
Interpretation:-

According to survey Bajaj Allianz company‘s Advertisement gain Very good

image in customer mind comparison to other companies’ Advertisement.

CHAPTER-5

Findings of the study

The researcher after conducting the study has learned about the market and market
conditions. Life Insurance sector is a booming sector in India and Rs 2 billion has been
spent on advertising and is growing at steadily rate. If we see life insurance sector ten
years back it was a very slow growing sector as there was no private companies in this

47
sector. But after the liberalization when private companies were also allowed in this
sector, it started growing at very fast pace. With the entry of the private players, the size
of the industry has actually expanded. LIC has been here for years now and private
companies will continue to learn lessons from LIC. People relate to LIC, which is good.
However, with private players coming in, people have more options in terms of product
features. As people faith is growing in private life insurance companies they are investing
more in the policies.
The researcher has come to know what effect the advertisement has in selling of
life insurance products.

 Many private players are giving their advertisements on various media to

increase awareness among people about their company and policies.

 People are getting aware about the policies of the companies.

 People are also getting to know how many companies are there in the
insurance sector.

 Advisor and Television advertisements are more on creating awareness of

the brand.

 The advertisements also stressed on creating brand image which played a

crucial role in boosting sales.

 By having brand ambassadors, it boosted the sales as well as brand image

of the company.

 Advertisements on television and newspaper have more impact on people.

 The advertisements on internet are also making impact on the people.

 Many people come to know about the company through the newspaper
also.

47
 CHAPTER-6

Suggestive Framework

 The company should focus on making people believe on private life insurance
companies.

 The company should take some more measures for creating awareness among
people about their company.

 The company should give more advertisements on television as well as in print

media.

 The company should have brand ambassadors for creating brand awareness among
people.

 Spread more awareness over ULIP plans among people.

 People have strong belief on LIC so the company should work on making them
belief on their products also.

 The advertisements given on television and in print media should be very effective
on people’s mind.

 The company should also pay more attention towards internet advertisements as
use of internet is increasing

 Advisor also play a crucial role for company to boost its sales and it is the medium
by which company directly connect with people.

47
 CHAPTER-7

Conclusions

With the help of the analytical figures we derived from the questionnaire
following can be found:

 It can be analyzed that many people still don’t have life insurance which shows the
untapped market.

 For the existence of LIC in the market for so long, the people have blind faith on it,
so for other life insurance companies it is very difficult to find place in the market.

 Most of the people came to know about the company through friends or relatives,
so the company has to work on making its advertisement channel very strong.

 It can also be analyzed that less people have seen the advertisements of life
insurance so the company should air its advertisements on prime time television.

 The advertisements are also not that much effective so it should be made in very
different way as to people have very immediate effect on themselves.

 Many times the concept of the advertisement is also not very clear and not specific
as to what product it is selling, so the message should be very clear.

 Today there are many other avenues opened for people to invest their money in,
like mutual funds, shares etc. so the company faces a tough competition from these other
financial instruments.

 The brand name also helps the company in selling its products. If the company’s
brand name is good then the people will invest their money easily in the products of the
company.

47
 CHAPTER-8
BIBLIOGRAPHY

Books Referred:
 Kothari C. R. (2005) ‘RESEARCH METHODOLOGY’ New Age International
Limited, Fifth Edition
 Khan M. Y. (2006) ‘MANAGEMENT OF FINANCIAL SERVICES’ Tata
McGraw-Hill Publishing Company Limited, Third Edition.
 “MARKETING MANAGEMENT” by PHILIP KOTLER published by Vikas
publishing house Pvt. ltd. New Delhi.
 Shete, JN Banwari Mittal and Bruce Newman, “Customer
Behaviors” New York, The Dryden press
 Parry, Mark E., Strategic Marketing Management: Means-End
Approach, New Delhi, McGraw-Hill, 2002

Websites Referred:
 www.irda.com
 www.allianzbajaj.co.in
 www. en.wikipedia.org

47
 QUESTIONNAIRE
Personal Detail

Name of the respondent……………………………………..

(1)Age Group-
(a) Below 30 
(b) 31-40 
(c) 41-50 
(d) Above 50 

(2)Occupation-
(a) Govt. Employed 
(b) Private Employed 
(c) Professional 
(d) Businessman 

(3) Income Group-

(a) Up to Rs. 50,000 
(b) Rs. 50,000-1, 50,000 
(c) Rs. 1, 50,000-3, 00,000 
(d) Above Rs. 3, 00,000 

(4). Do you invest money?

A- YES  B- NO 

(5). Where do you invest money?

(a) In Share Market 
(b) In Bank 
(c) In Life insurance 
(d) Post office & Property 

(6) Do you have Life insurance?

A- YES  B- NO 

47
(7) If yes then in which company?

A- Bajaj Allianz □ B- ICICI Prudential □

C- LIC □ D- Max New York □
E- Others□

(8) Have you heard about the Bajaj Allianz life insurance company?
A- YES □ B- NO □

(9). from which source you came to know about Bajaj Allianz Life Insurance
Company?
A- Advertisement □ B- Advisor □
C- Friends/Relatives □ D- Newspaper /Magazine □
E- Other □

(10) Give Rank to following features of Bajaj Allianz Life Insurance Company which
you like most?

Very Good Good Average Bad Very

Bad
1.Quality of Services
2.Risk
3Tax Benefit
4. Return
5.Maturity Period
6.Security

(11) Is company’s Advertisement fulfilling your motive in purchasing behavior?

A) YES □ B) NO □

47
(12) Which one advertisement tool affects you most of Bajaj Allianz?
(Assign Ranking)

a) Advisor ------------
b) NEWS Paper & Magazines ------------
c) TV Advertisement ------------
d) Electronic Media ------------
e) Others ------------

(13) Is the agents/advisor meets you regularly & provides updated information about new
product?

A) YES □ B) NO □

(14) Are you satisfied with advertisement of Bajaj Allianz Life Insurance Co.?

(a) Completely Satisfied □

(b) Satisfied □
(c) Partial Satisfied □
(d) Dissatisfied □
(e) Completely Dissatisfied □

(15) How would you like to rank the advertisement of Bajaj Allianz with comparison to
other companies?

(a) Excellent □
(b) Very Good □
(c) Good □
(d) Fair □
(e) Poor

(16) Your suggestion regarding the above medium and those of Bajaj Allianz Company?
...................................................................................................
...................................................................................................
......................................................................................................

47