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Submitted in partial fulfillment of requirement of bachelor of business administration
(BBA) , Guru Jambeshwar University of Science & Technology, Hisar.
Under Guidance Of

Faculty Incharge

Submitted By

Mrs. Manpreet kaur

Honika Uppal

Mr. Sachin Garg


Table of Content


I am greatly obliged to Mr Manas das, branch head IDBI federal life insurance for his
valuable guidance and unwavering support during our internship period to complete our
project. I am truly grateful to him for the timely completion of my project.

I would also take this opportunity to express my gratitude to Mr Sachin
Garg for his guidance provided in this field in which he is an expert.

I would also take this opportunity to thank my faculty guide Mrs.Manpreet
kaur of JIMSas without her encouragement as well as monitoring this
project would not have been possible.


The insurance industry of India consists of 51 insurance companies of which 24 are in life
insurance business and 27 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national reinsurer, namely, General Insurance Corporation of India. Other stakeholders in Indian
Insurance market include Agents (Individual and Corporate), Brokers, Surveyors and Third
Party Administrators servicing Health Insurance claims.Out of 27 non-life insurance
companies, 4 private sector insurers are registered to underwrite policies exclusively in
Health, Personal Accident and Travel insurance segments. They are Star Health and Allied
Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max Bupa Health
Insurance Company Ltd and Religare Health Insurance Company Ltd. There sre two more
specialized insurers belonging to public sector, namely, Export Credit Guarantee Corporation
of India for Credit Insurance and Agriculture Insurance Company Ltd for Crop
InsuranceInsurance penetration of India .
Market Share:


100 Cr in premiums. protection and retirement solutions that provide value and convenience to the Indian customer. in just five months of inception. 5| Page . Through a continuous process of innovation in product and service delivery IDBI Federal aims to deliver world-class wealth management. IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. a multinational insurance giant based out of Europe. is a joint-venture of IDBI Bank. To get hands on experience of doing sales for the company. IDBI Federal became one of the fastest growing new insurance companies by garnering Rs. To suggest marketing methodologies to increase business of IDBI-Federal Life Insurance. In this venture. Objectives of the Internship: 1.IDBI Federal Life Insurance Co Ltd. Federal Bank. 2. Having started in March 2008. one of India's leading private sector banks and Ageas. 3. Analysis of Customer Perception of the insurance industry. India's premier development and commercial bank.

Since the industry is at its early ages even now hence it’s constantly changing and evolving. Thus due to this only the government entities have a good presence and brand recognition in India and the others have a difficult time carving a space out for themselves in the market. 6| Page . But the Indians are an extremely risk averse race. insurance is the backup plan for more risky propositions like shares and stocks. And then expand furthermore into other segments while keeping their base customers with them.EXECUTIVE SUMMARY The insurance sector in India is still in its nascent stages. In this sector the visibility of the brand matters the most and is of utmost importance. Keeping in mind the same these paper was done to study the marketing mix of IDBI Federal life insurance solely depending on the current marketing approaches and the expectation of the Indian consumers in the insurance sector. This makes it mandatory for the new players to tow the line and at the same time constantly keep on evolving itself to meet the needs of the consumers. Hence the customers who want to go for these propositions too are extremely risk averse. Hence there has to be products specifically for this segment. Since.

In 1829 the Madras Equitable had begun transacting Life insurance business in Madras Presidency.Liberalization 18181829 First Insurance company in 1818 the Oriental Life insurance company in Kolkata (then Calcutta) was the first company to start a life insurance business in india. 7| Page .7 % in the fiscal year 2013-2014 the industry is facing a hard time as the lower growth means lower disposable income in the hands of the consumers. Insurance in India has developed overtime and has taken ideas from other countries. However. HISTORY OF INSURANCE The history of Insurance in India is deep-rooted.e.INTRODUCTION This industry thrives mostly on the desire of the individual to reduce the uncertainties of the future. the banking financial and insurance sector hovering around 9% and the Gross Domestic Product growth of the country at being around 4. Since the earliest times insurance has been carried out in some form or the other.England in particular. This uncertainty can vary regarding various issues starting from their life to commodities to their child’s future as well as their present income. If anything it has made the returns look less and less lucrative. the company failed in 1834. The increase in the inflation index also hasn’t helped the industry at any level. In the current fiscal year the growth of BFSI i. The history of insurance is divided into three phases as follows:- PHASE I – Pre Liberalization PHASE II – Liberalization PHASE III – Post Liberalization Phase I – Pre.

1950s In the 1950s. 1938 To protect the interest of the insuring public. participates in discussions related to policy formation. PHASE II. The last three decades of the nineteenth century saw the creation of the Bombay Mutual. 1957 Formation of the General insurance Council (GI Council) : the GI council represents the collective interests of the non-life insurance companies in India. 1972 The General Insurance Business (Nationalization) Act 1972 was passed.1870 Following the enactment of the British Insurance act 1870. The General insurance Corporation of India was formed in pursurance of Section 9(1) of GIBNA. Oriental and Empire of India in the Bombay Residency. including provident insurance societies. and acts as an advocate for high standards of customer service in the insurance industry. 1928 The Indian Insurance Companies act 1928 gave the Government the power to collect statically information above both life and non life business transacted in Indian by Indian and foreigner insurers. competition in the insurance business was very high and there were allegations of unfair trade practices.Liberalization __________________________________________________________________________ The start of reform 8| Page . 1912 The Indian Life Assurance Companies Act 1912 was the first statutory measure to regulate Life Business. the earlier legislation was consolidated and amended by the Insurance Act 1938 which gave the Government effective control over the activities of insurers. It was incorporated on 22 November 1972 under the companies Act 1956 as a private company limited by shares. The government of India therefore decided to nationalize insurance business. The council speaks out on issues of common interest.

The key objective of the IRDA includes the promotion of competition with a view to increasing customer satisfaction through more consumer choice and lower premiums. To make recommendation for the reform of the insurance sector. the former Governor of RBI. Foreign companies were also allowed to participate in Indian Insurance market through joint ventures with Indian Companies. 9| Page . PHASE III – Post Liberalization Recommendations of Malhotra Committee. The IRDA has the power to make regulations under section 114A of insurance Act 1938. Since 2000 it has introduced various regulations ranging from the registration of companies for carrying on insurance business to the protection of policy holder’s interest. The Insurance regulatory and Development Authority was constituted as an autonomous body in 1999 to regulate and develop the insurance industry. 1993 Malhotra Committee: In 1993 the government set up a committee under chairmanship of RN Malhotra. the insurance sector were opened to private companies. while ensuring the financial security of insurance market. 1999 Formation of IRDA: following the recommendations of the Malhotra committee report. The IRDA was incorporated as a statutory body in April 2000.The international payment crisis of the 1990s forced the Government to re-think its industrial policies and regulations. Under current regulations for the foreign partner cannot hold more than 26% stake in the joint venture.

Oriental Insurance 7. Bajaj Allianz Life Insurance 9. TATA AIG 10. Birla Sun life 10. Reliance General Insurance 8. 3. ICICI Prudential. Life Insurance Corporation of india 2.INSURANCE. Tata AIG Life Insurance 8. Export Credit Guarantee 14. The New India Assurance Company 6. IDBI federal Life Insurance LIST OF GENERAL INSURERS IN INDIA 1. Royal Sundaram Alliance 9. Star Health and allied Insurance 16. IFFCO Tokio 4. ICICI Lombard 3. ING Vyasa Life insurance 12. Agriculture Insurance Co 15. Max new York Life Insurance 6. HDFC ERGO 13.COMPANIES IN INDIA 1. 5. Bharti AXA life insurance 15. Metlite India Life Insurance 11. Apollo Munich health insurance 10 | Page . Bajaj Allianz 2. HDFC Standard Life 7. United India Insurance 11. Aviva Life Insurance 14. Reliance Life Insurance company Ltd. Cholamandalam 12. National Insurance Company 5. SBI Life Insurance company Limited 4. Kotak Life Insurance 13.

Shriram general LIC has around 70% share in the premium being filed while all the others put together has a share of 30 %. Universal Sompo 19. Future General 18. 11 | Page . This tremendous competitiveness of the industry has given rise to high differentiation of the products and services.17. Companies are trying to innovate across the product life cycle to retain that edge. Innovation is the new buzzword.

423 crore as on March 31. CARE (Credit Analysis and Research Ltd). working capital facilities. since its inception. loan syndication. SHCIL (Stock Holding Corporation of India Ltd). In addition to interconnected branches and ATMs. The Bank offers personalized banking and financial solutions to its clients in the retail and corporate banking arena through its large network of Branches and ATMs. 3. India's premier industrial development bank. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations. 23. online bill payment and call centre facilities to offer round the clock banking convenience to its customers. Today. This enables the Bank to offer personalized banking and financial solutions to its clients. it is amongst India's foremost Commercial banks. IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India's financial sector . 1882 crore continues to be. The Bank had an aggregate balance sheet size of Rs. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. Though initially it was known as the Travancore Federal Bank. 2013. debit cards. 2013 resulted in a net profit of Rs. As part of its development activities. The history of Federal bank dates back to the pre-independence era.  Federal Bank is one of India's leading private sector banks. serving retail and corporate customers in all corners of the country from 1201 branches and 2156 ATMs. spread across length and breadth of India. The Bank offers its customers an extensive range of diversified services including project finance. corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. and Any Where Banking. venture capital. it gradually transformed into a fully fledged bank under the able leadership of its founder.312 ATMs spread across India. It has a strong network of over 1. They have also set up an overseas branch at Dubai and have plans to open representative offices in various other parts of Globe. IDBI Bank's operations during the financial year ended March 31. The bank provides over four million retail customers with a wide variety of financial products. new generation. with a wide range of innovative products and services. 22. It came into being as on July 01. the Bank has a wide range of services like Internet Banking.769 crore and total business of Rs 4.Sponsors of IDBI Federal Life Insurance Co Ltd  IDBI Bank Ltd. Mr. public sector universal bank that rides on a cutting edge core banking Information technology platform. term lending.  IDBI Bank is the youngest. Tele Banking.142 branches and 1. with a dominant presence in the state of Kerala. 1964 to support India's industrial backbone.  12 | Page . KP Hormis. lease finance. Mobile Banking.National Stock Exchange of India Limited (NSE) and National Securities Depository Ltd. is a Universal Bank with its operations driven by a Cutting edge core Banking IT platform.

Ageas has chosen to concentrate its business activities in Europe and Asia. 13 | Page . China. These are grouped around four segments: Belgium. Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. which together make up the largest share of the global insurance market. Ageas operates successful partnerships in Belgium. Ageas is the market leader in Belgium for individual life and employee benefits. Ranked among the top 20 insurance companies in Europe.000 people and has annual inflows of more than EUR 21 billion. United Kingdom. Turkey. Ageas has a strong presence as the fourth largest player in private car insurance and the over 50's market. as well as a leading non-life player through AG Insurance. Portugal. Malaysia. In the UK. India and Thailand and has subsidiaries in France. UK. Luxembourg. Hong Kong and UK.    Ageas is an international insurance group with a heritage spanning more than 180 years. Ageas employs more than 13. Italy.

This in short decides the target segment of our customers.MARKETING MIX FOR IDBI FEDERAL BANK Before embarking on the journey of understanding the marketing mix of IDBI bank it is imperative for us to understand what a marketing mix is. The product is the most important of the 4Ps. The important fact to notice is that their importance is in their chronological order in a decreasing way. The place has to be appropriate. The product has to be very good to capture the market share. This is the way companies communicate with their target customer and hence is extremely important for their sale purpose. It states that it is not only price which decides the sales but the value that a customer perceives that he will get from the product. In the mind of the customer it has to be more than the price he has paid for the product. and the place where they are reside. age. gender. But marketing is an extension of the branch of economics. The famous example that has been quoted so frequently is that there is no point in trying to sell summer wear in Alaska or Greenland or to an Eskimo to be more precise with. 14 | Page . Then the most important component of our marketing strategy is the place. The pricing has always been a very important factor as far as economists are concerned. The most important thing is the product. Next important factor is the price. demographic. TARGETING AND POSITIONING In segmentation we decide which part of the population we want to have as our target customer and whom we want to serve. The 4Ps are the product. It consists of the 4 Ps and STP. This depends on generally four parameters. Promotion is the last but certainly not the least most important factor. place and promotion. There is that famous demand curve and the estimation that tells us the quantity that will be sold depending on what the price that is being charged. namely: Psychographic. attitudes. Promotional event and campaigning helps us in reaching out to our target customer and convey our value proposition. geographical and behavioural characteristics. Thus it is very important for us to understand the people or place where we are trying to sell our product. SEGMENTATION. price. All these characteristics generally the classification of the population on the basis of their income. preferences.

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he would then choose the Maturity Sum Assured (MSA). 3. will be the policy term. HOW DOES THIS PLAN WORK 1. Next. This can help plan his child’s future better. 16 | Page . 2. Customer needs to decide the amount of guaranteed annual payouts he would need which will depend on plans for his child’s future. It is designed to give customer guaranteed annual payouts and aid the important milestones in their child’s life.PRODUCTS THAT WERE INTRODUCED TO INTERNS IDBI Federal Childsurance is a non-linked participating endowment plan that ensures child’s future financial needs are fulfilled. Basis the amount of payouts. he would choose when and for how long he would need the payouts – the difference between child’s current age and the age at which the guaranteed annual payouts should end.

The best example is that in today’s date a marriage might cost you around 5 lakh but after 18 years the same marriage is going to cost 33 lakh Indian rupees.It makes us think regarding the way we plan our future.The tagline for this product is that your kid might look cute while being angry now but he won’t look so when he’s 18. 17 | Page . So. This product takes care of the above fact and hence the future planning efforts are unaffected by unforeseen and unfortunate events. people have to keep in mind the inflation and cannot plan keeping the present value of things in mind.

the life cover with this plan provides financial protection for loved ones. 18 | Page . Wealthsurance Plans guarantees following:  Financial protection against uncertainty  Partial withdrawals for emergency fund requirements  Guaranteed loyalty additions to boost your wealth  Flexible to switch funds and investment options  Option to choose how long you want to stay invested  Get 2 Tax benefit of 80 C and 10(10 D).IDBI Federal Wealthsurance Suvidha Growth Insurance Plan is a simple unit linked plan that helps customer take their first step towards wealth creation and that too. with ease. What’s more.

With Incomesurance. customer can guarantee a secure future for their family even when they are not around. On payment of premiums for 5 years customer will receive guaranteed annual payouts at the end of every year for the next 5 years. The guaranteed annual payouts that will be received will depend on two factors .IDBI Federal Incomesurance™ Guaranteed Money Back Insurance Plan is a non-linked non-participating money back plan which gives customer guaranteed* returns on investment. At the time of purchasing the policy. so that they stop worrying about the future. HOW DOES THIS PLAN WORK Incomesurance is a simple plan with guaranteed benefits. he will know exactly how much he will receive as guaranteed annual payouts.the amount of annual premium that he will pay and age. 19 | Page .

BENEFITS OF THIS PLAN       Financial protection against uncertainty Lump sum payout at maturity Guaranteed additions to safeguard as per your need Flexible to choose options as per your need Bonuses to boost your savings Get 2 Tax benefit of 80C and 10(10D) 20 | Page .IDBI Federal Lifesurance savings insurance plan is a fixed term non-linked participating plan that provides twin benefits of long-term savings and life cover. small savings will help customer realize the big dreams that he has for himself and his family. With Lifesurance Savings. This plan also offers the benefit of life cover that will provide financial security to family in his absence.

The addition of these expenses to the premium is called loading. In addition to being corned about charging premiums that are sufficient to meet claims. the company will also be keen to ensure that premiums are competitive so that it does not lose business to other insurance companies in the mortality tables. Loading: All companies incur expenses in going about their business and insurance companies are no different. which in simple words can be defined as the probability that a certain individual will die before their next birthday.PRICING AND CALCULATING THE PREMIUM Pricing refers to the calculation of premium that will be charged on the insurance policy. Income from investment of premium: The premium that is collected by insurance companies for traditional plans are invested as mandated in Insurance Act 1938. PRICING ELEMENTS Mortality rates: As mentioned already that insurers use mortality tables to help calculate the premium. The profits they earn from their investment can help to cover the insurance company’s expenses and so can be taken into account while considering the price. The premium is the key source of income for an insurance company and so the premium needs to convert the cost of meeting these expenses. These tables also contain mortality rates. expenses and produce profits at the desired level. The pricing of the insurance policy is an important decision for the insurance company and it will have a number of prime objectives in mind in this respect. 21 | Page .

The premium amount should be sufficient to meet the administrative and other expenses during the entire term of the policy. the higher the premium will need to be cover the cost of providing that benefit. it should be sufficient to meet future claims.e. where the policyholder can pay the premium amount at their convenience. 22 | Page . When pricing this sort of policy the insurance company will need to allow the time value of money i.Benefits promised: The pricing will depend upon the benefits promised by the company. Flexible Premium Plan Insurance companies also allow the policyholder to choose a flexible premium payment plan. The larger the benefits offered by the insurance company. Premium Plan Being Taken: The policyholder can pay the premium in a number of ways: Single premium plan In this plan policy holder pays a single lump sum payment at the inception of the policy. They can choose whether they wish the premium to remain the same over the term or to change the amount of premium paid based on affordability. With profit-policyholders pay a slightly higher premium for the benefit of sharing in the bonuses and are generally rewarded well by bonus declaration. Level Premium Plan In this type of plan policyholder pays the same amount of premium for the entire duration of the policy.

CALCULATING PREMIUM The process of calculating the premium is as follows: Calculate the risk premium Based on risk premium. calculate the level premium Deduct the expected interest on investments to calculate the net premium Add the loadings Arrive at the gross premium to be charged Calculate the risk premium: 23 | Page .

the reserve funds are also invested. The insurance companies earn interest as income from their investments. as no one can accurately predict the future. • For level premiums. Therefore. Determining the correct amount for the common fund is a difficult task. using the statistics on death rates from previous years. The higher premium collected in the early years is put into a reserve by the insurance company to meet the cost of future claims and expenses. Based on the estimate of these interest earnings the premium charge can be reduced. Calculate the net premium The premium that is collected by the insurance companies for traditional plans is invested in securities as mandated in the Insurance Act 1938. the premium set will need to take into consideration the future expenses and claims that the insurance company will have to pay. However. as we have seen. This interest earned is also considered for the premium calculation. The actuaries make an estimate of the amount of interest that the investments are expected to earn. calculate the level premium With many life insurance policies the insurance company charges the same amount of premium for the entire policy term: it cannot be changed. Therefore. Consequently. This probability – known as the mortality rate – is used to calculate the risk premium. so the premium the policyholder pays now will not hold the same value in later years. which means that the value of money decreases over time. known as the common fund or life fund. the insurance company has to make sure that there is enough in the common fund to meet those claims. Based on risk premium.The life insurance premiums collected by the insurance company are kept in a single pool. Premium – Interest Earnings = Net Premium There are some important points to remember when thinking about how the premium is adjusted for the interest earned on its investment: • The premium is invested. It will also need to take into account the effects of inflation. All the future claims on the company are settled using this common fund. The formula is: Risk Premium = Mortality Rate * Sum assured The risk premium is the premium that has to be charged just to meet the claims of those who die during the year. until it is required to pay claims. and 24 | Page . the premium will need to be set at a higher level than would appear to be appropriate initially. insurance companies can now estimate fairly accurately the probability of an individual dying before their next birthday. This means that the cost of inflation will be borne by the insurance company in the later years of the policy. The risk premium is calculated using the mortality rates in the mortality table of the respective insurance company.

a level premium plan. 25 | Page . such as the cost of running the building. employees’ salaries. This process is known as loading. For instance. This adjustment is to take account of the expenses and profit of the insurance company. whether the premium is to be paid annually. • Profit margin. Add loadings A further adjustment is made to the net premium in order to calculate the gross premium (the actual premium that is paid by the policyholder). etc.• The interest expected to be earned also depends upon the term of the policy. • Expenses involved in the renewal of the policy. and then make a further adjustment for monthly payment. Most insurance company’s first calculate the premium for annual payment. flexible premium plan or an annually renewable plan – will affect the gross premium to be charged. • claim settlement expenses. The following items are added in loading: • Administrative expenses. • Processing fee. when calculating the premium for a single premium plan the insurance company will need to determine how many policyholders are likely to take up the plan and how many death claims it will expect to have to pay during the policy term. semi-annually. • Medical expenses incurred for medical underwriting. and • Bonus loading for with-profit policies Arrive at gross premium to be charged The type of policy – whether it is a single premium plan. Similarly. and quarterly or monthly will also need to be taken into account. Insurance companies generally collect a ‘frequency loading’ if the premium is not being paid annually.

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2. PR. Sponsorship. for promotional activities through newspapers. including: sales increases. The following are two types of promotion: 1. price. or creation of a corporate image fundamentally. A promotional plan can have a wide range of objectives. 3. and how much money to budget for each. Above the line promotion: Promotion in mass media (e. testimonials. To increase demand 3. It is the communication link between sellers and buyers for the purpose of influencing. direct mail. Times of India. trade shows The specification of five elements creates a promotional mix or promotional plan. TV. Vir Arjun. radio. A promotional mix specifies how much attention to pay to each of the five subcategories. new product acceptance. Newspapers. 27 | Page . however there are three basic objectives of promotion. sales promotion. sales promotion. advertising. These are: 1.g. merchandising. IDBI Federal spends around Rs 1040 per sq. creation of brand equity positioning. or persuading a potential buyer's purchasing decision. To differentiate a product. Below the Line Promotion: Much of this is intended to be subtle enough for the consumer to be unaware that promotion is taking place. internet. competitive retaliations. They position the ads and articles in such a way that it catches the eye of the reader as soon as they start reading the newspaper. mobile phones) in which the advertiser pays an advertising agency to place the advertisements.g. promotion. informing. These elements are personal selling. The Hindu .. direct marketing and publicity.PROMOTIOAL ACTIVITIES OF IDBI FEDERAL Promotion is one of the four elements of marketing mix (product. Here we have to find out:  how effectively advertisements influence a person to buy the life insurance products  The find whether IDBI federal needs brand ambassador to reach the customer effectively  Identifying the role of advertisements for life insurance products Following are the main ways in which IDBI Federal life Insurance company ltd promotes its products/services and creates awareness in the market. and place). To present information to consumers as well as others 2. Samachar Jagat. personal selling. Meghalaya Guardian etc. NEWSPAPER: IDBI Federal has attained notice through many articles and advertisements published in various national and regional newspapers in India like the Economic Times.

The engagement started with the spelling contest for kids and gave natural opening for a discussion with parents about financial planning for their children’s future needs like education. a community development organization based out of Bhopal which works towards bringing financial literacy to the underprivileged population in Madhya Pradesh. TELEVISION: Mainly. As of now. It’s given in magazines depending upon their sales and reputed magazines like Outlook. PAMPHLETS: Pamphlets are distributed across India at least 5 times in a month without any cost.HOARDINGS: IDBI Federal has also tried making their potential customer aware of their products and policies through billboards and hoardings by positioning them in strategic locations. Money etc. Spelling Bee was a specially created spelling contest created to connect with children. To combat competition as all the insurance companies would advertise during this time at a great frequency. 00. Building an engagement process around the solution being offered gives an additional boost to this cause. Highlight the tax benefit 2. The advertisement is given every month at least once in any magazine. the total number of hoardings which are put up in Hyderabad region counts to a good 17 number. A Viral campaign is also run on the Internet by wherein flash videos of working of products are explained in a very humorous manner. LOCAL EVENTS: The overall costs associated with such events totals to Rs. Also IDBI Federal involved them in developing their business by joining hands with SAMHITA. Schools. etc.000 per annum such events are mainly conducted in Apartments. The main promotions were done during FEB & MARCH to: 1. MAGAZINES: There is no specific magazine in which advertisement is given. The total expenses spent by the company for this promotional activity is Rs 4 Lakh. Star channels. 2. They believe that such financial 28 | Page . This is a sort of channel marketing which IDBI Federal had adopted to create awareness as well as to educate the future generation about the company and the importance of saving. Also the company will soon start displaying their advertisements on Satellite TV like SUN network. the advertisement is shown on cricket channels. DISTRIBUTORS: A strong network of distributors and parent advisors also helps a lot in promoting products/services of IDBI Federal by word of mouth. etc. It’s done to create maximum awareness about the products/services.

• Future financial goals of the client for themselves and their children. Quantifying needs: in the financial planning process an insurance agent needs to quantify each of the needs in monetary-terms and then calculate suitable amounts that an individual needs to save and invest for the future. i. • Marital status. Identifying needs: An insurance agent needs to collect and analyse the following information: • Details of the client in terms of their financial assets and liabilities. and • Existing protection. as their investment capacity may be limited and the total amount to be spent may be more than the surplus funds available. 3. priorities them and then to recommend suitable insurance or savings products.e. • Income – which includes salary. • Number and age of dependants. Prioritizing needs: the amount available for investment is the client’s income less their living and other expenses. savings and retirement provision (if any). CLIENT NEEDS As we have established. business income and income from other sources and investments (if any). This will ultimately help bring them closer to financial inclusion. • Details of health status and heredity medical conditions. their existing grade and scope of promotion within their company. • Employment status. The process involves the following steps: Identifying needs Quantifying needs  Prioritizing needs 1. the monthly surplus available. 29 | Page . i. it is the responsibility of the insurance agent to determine the legitimate needs of their clients. 2.literacy among the under banked population will help bring a holistic change in the way people perceive and understand financial products and their utility at various stages in their life. The client’s needs must be prioritized.e.

10. Let’s have a look at some of the problems faced by agents in advising clients about real and perceived needs: • Different financial needs occur at different stages of the lifecycle of an individual. but for this he needs to sacrifice some of his leisure activities and save and invest regularly. Client needs: real and perceived It is important to understand that there are differences between real and perceived needs. A young man might aspire to have Rs. 00. whereas their priority need would be to provide financial protection for their family in the event of their premature death. when the time comes for financial planning. They will want to give priority to their present needs as opposed to their future intangible needs. whereas perceived needs are imagined or thought to be important by the client (for example wanting to buy an expensive car when there is adequate public transport and the client has insufficient savings or income to buy one). Real needs are determined by the use of financial planning techniques and analysis. 30 | Page . However.000 ten years from now. Real needs are the actual needs of a client which should take priority over others. and so the needs which are given highest priority in the ranking are the ones for which investment should be made first. where limited funds can be allocated to full fill the maximum needs of the client. This can be done by educating them about the concept and importance of insurance. illness or disability. • Individuals may not understand their real needs and may fail to priorities them sensibly. Perceived needs can be understood by analyzing an individual’s thoughts and desires. Identification of current and future needs Insurance agents should help their clients in understanding their current and future needs. an investor might shy away from actually making investments.The insurance agent should suggest the best product mix. Prioritizing these needs helps the client to determine which investment(s) can be deferred. There can be cases where an individual might choose to invest in child plans first. The job of an insurance agent is to help clients in identifying real needs: Identification of real needs Insurance agents should help their clients in understanding their real needs. • The second problem is that clients often fail to understand the importance of saving for the future and do not appreciate the benefits that this will bring.

To do the need analysis of the customer To design the marketing mix in such a that the education of the common public happens regarding the financial instrument . 31 | Page . Financial planning review Clients should meet with their agents regularly to review whether their financial planning needs have changed over time. This project tries to point out the shortcomings and modifications in their marketing approach. BENEFITS OF THE PROJECT TO THE COMPANY Half of the work is simply done by knowing what the problem is at hand and by knowing the weakness. The increase in this awareness might lead to increase in customer base. By keeping them in mind the operations and the marketing efforts can be streamlined by customizing them according the needs of target customer. then new investments should be made to suit the changed circumstances.Quantification and prioritization of needs Once the needs are identified. To have customized strategies for every segment So the major challenges right now in front of IDBI are what the general attitude towards various segments is and how to increase the brand awareness of IDBI. More differentiation of the product 2. To identify target segments more appropriately 3. If so. they must be quantified in terms of monetary value and prioritized. It is a well known fact that one size doesn’t fit all. Before approaching a customer it is always a good idea to know the needs of the customer before approaching them. The economies of scale can be achieved by tapping into the base of wary customers.Increase transparency and increase the trust quotient. the objectives of the company as of now should be 1. Problems Formulation To increase the brand awareness about the company.Increase the financial education . Therefore.

Research Design Descriptive. the respondent‘s current status of having any insurance policy. Although this research is highly accurate. That is. For the study: for conducting that research I selected the Descriptive research design. The details of the facts won’t be known. 32 | Page . previous studies etc. it does not gather the causes behind a situation. The scope of research is restricted to Delhi/NCR region and the research approach descriptive method. Data Collection: The data is collected through primary and secondary research. analysis of the past as opposed to the future. Data Requirement Analysis: The data required is about the investment pattern of the respondents. : 100 Sample procedure : Convenience sampling. The data is collected through primary research by doing field Survey in Delhi/NCR region and secondary research through text books. Descriptive research design: Descriptive research is also called Statistical Research. and other statistical calculations. their awareness level if IDBI Federal and their likeness to invest in IDBI Federal. Descriptive research is mainly done when a researcher wants to gain a better understanding of a topic. The idea behind this type of research is to study frequencies.RESEARCH METHODOLOGY Data approaches Sample size : Questionnaire. The main goal of this type of research is to describe the data and characteristics about what is being studied. The existing phenomena’s facts are not known to the persons. Descriptive research is the exploration of the existing certain phenomena. averages. the income level under which they fall. Used guide in collecting and analysing data. : Research design: Research design is simply the framework or plan for a study. websites.

Random Sampling procedure is used. Group Discussions. Official Publication. Articles. 33 | Page . Seconday Data – Is collected from Business Magazines. LIMITATIONS OF THE RESAERCH The sample size though carried out amongst various age-groups has been limited to around 65. Industry market report. Questionnaire Design Formulation The objective behind every question is know the preferences and psychic of very customer. Sample Design Sample unit Extent . Local and International Newspapers. To analyze whether they are finding new and improved modern ways to shop through internet is time saving or difficult over traditional ways of shopping. Sample Size .Interviews.DATA SOURCE Primary Data .The size of the sample will be about 50 comprising respondents of different socioeconomic profile (Age/ Gender/ Occupation/ Income Level/ Rural or Urban/ Education Level). Websites. Journals. To evaluate the attitude of consumers whether they believe that the information provided to them of various products through internet is sufficient and accurate. The data collected is limited to the year 2014-15.The samples for the survey will be collected from New Delhi Sampling Frame Sampling Technique . and Structured questionnaires is been used to collect Primary information on customers and marketers. Manual of advertisements. Brochures and Books.

DATA ANALYSIS & INTERPRETATION Q-1 Which of the following long-term savings you are aware of ? a) Life Insurance b) Mutual Funds c) Fixed Deposits d) Securities e) Post Office Savings Long term saving %age share Life Insurance 28 Mutual Fund 12 Fixed Deposit 35 Securities 10 Post Savings 15 Long term savings Life insurance post office mutual funds fixed deposits securities 10% 28% 35% 15% 12% CONCLUSION As we can see maximum sample is intrested in saving in fixed deposits with 35% share of sample . 34 | Page .

Q-2 Do you have investment/ insurance plan on your name?(Yes/No)__________ Investment plan %age share Yes 48 No 52 investment plans yes 52% No 48% CONCLUSION As 52% of sample has not invested in life insurance plans . 35 | Page .

a.Q-3 If the answer to the above question is ‘Yes’. 1 lakh 40 5-10 yr 20000-40000 p. 4 lakh 18 10-15 yr 40000-60000 p.yr Above 1 lakh p. 36 | Page . please mention the details of the insurance policy Term: _____ Maturity year: ____ Premium: _____ Insurance coverage amount: _____________ TERM PREMIUM INSURANCE COVERAGE %AGE SHARE 0-5 yr 10000-20000 p.a.a.a.a. 16 lakh 8 Above 20. 9 lakh 22 15-20 yr 60000-80000 p. Above 16 lakh 12 Term 0-5 yr 5-10 yr 10-15 yr 15-20yr Above 20 yr 12% 8% 40% 22% 18% CONCLUSION As we can see maximum people invest for period of 0-5 years .

37 | Page .specify 2 source Radio Tele-marketing Internet 12% Newspapers Others 2% 12% 29% 45% CONCLUSION As maximum sample get awarness about the life insurance product through internet with 45%.specify_______________________ Sources %age Share Newspaper & Magzines 12 Radio 28 Internet 44 Tele-Marketing 14 Others.Q-4 From which source did you come to know about life insurance? a)Newspapers & magzines b) Radio c)Internet d)Tele-marketing Others.

60 Private co. b) Private company c) Foreign company Company’s %age share Government owned co.60% sample want to purchase insurance in government owned public co. 18 company foreign co. 18% 22% 60% CONCLUSION As per sample . private co. 22 Foreign co. 38 | Page .Q-5 In which company you would like to purchase investment plan? a) Goverment owned company public ltd.

Q-6 Provide the reason behind choosing particular investment company? a) Safety Reasons for Investment b) %age Share Safety 25 Brand Name 25 Good Track 17 Good Return 33 Brand Name c) Good Track d)Good Return Reasons for investment Safety Brand name Good track Good return 25% 33% 17% 25% CONCLUSION As per sample most people want good return with safety and brand name are also important aspect while reasons for investment. 39 | Page .

40 | Page .Q-7 How important would it be you to make a right choice of brand? a)Not at all Choice of making brand %age share Not at all Important 27 Equally Important 45 Very Important 28 b)Equally important c) very important choice of brand not important equally important very important 27% 28% 45% CONCLUSION As maximum sample feel right brand plays equal importance in selecting life insurance.

Q-8 Are you aware with the new unit link plane in the market? a)Yes b)No Ulip plan Yes % age share 69 No 31 ULIP PLAN yes no 31% 69% CONCLUSION As per sample 69% people know about the unit linked insurance plans 41 | Page .

Q-10 How do you made your purchase decision for life insurance product ? a)Consult other people to help choose best alternative available b)Try to buy the same brand that my friends/colleagues have bought c)Base my decision on the brand value of the company & product Purchase decision influencing factors Consult others to choose better Try to buy the same brand that friends have bought Base my decision on brand value %age share 33 45 22 Factors influencing purchase decision consult others try to buy same brand 22% base on brand value 33% 45% 42 | Page .

If it can tie up with SBI then there would be more credibility to its products as people tend to have more trust in the rural segment. Benchmarking the products against LIC and ICICI are going to bring in the best results.RECOMMENDATIONS It should target the target the rural rich populace first and should try and custumize service with accordance to the needs of the poor . It should use banc assurance to its fullest use those banks which have a good rural penetration to serve or sell its products. 43 | Page . To make smokers and other people aware of the fact that even if they have an earlier ailment that does not prevent them from having a health insurance. Extremely high class agents should be recruited as at the end of the day they are the brand ambassadors for the organization. Especially women should be their next target as the penetration in this segment is pretty low. To create a pull approach rather than a push approach. Companies abroad have started big data in a big way to carry out analysis of which portions to approach in a geographical location and how much to charge for premiums.

Learning all the important points which affects the pricing and selling of company’s product.CONCLUSION The right service model. trust. a low cost platform. 44 | Page . focus on brand building. Getting associated with Insurance industry which is fastest growing insurance company in India. The high level of customer interaction and understanding the different behavior associated with the client. good governance along with customized products for the ever expanding client base in India will help them in carving out their own space. partnership with an Indian PSB.

REFERENCES    http://www.asp  http://en.ageas.aspx 45 | Page 