SUMMER INTERNSHIP PROJECT REPORT

ON
“STUDY OF RECRUITMENT, TEAM HANDLING AND BRANDING IN IDBI FEDERAL
LIFE INSURANCE CO. LTD.”

At

IDBI FEDERAL LIFE INSURANCE.CO.LTD

BY

GAWALI PRAFUL MADHAV

Under the guidance of

Prof. Lahoti Archana

Submitted to

“Savitribai Phule Pune University”

In partial fulfilment of the requirement for the award of the degree of Master of Business
Administration (MBA)
2019-2020

Through

Suryadatta Education Foundation’s

Suryadatta Institute of Management &Mass Communication (SIMMC)
Pune -411021
 ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed in the

development of this work and who influenced my thinking, behavior and acts during the course of

study.

I express my sincere gratitude to Prof. (Dr.) Pratiksha Wabale, the worthy Dean of SIMMC

College of Advanced Studies, for providing me an opportunity to undergo summer training project

under his leadership.

I am thankful to Mr. (Manager) for his support, cooperation and motivation provided to me during

the training for constant inspiration, presence and blessings at IDBI Federal Life Insurance Co.

Ltd. I also extend my sincere indebtedness to Prof. Archana Lahoti who provided her valuable

suggestion and precious time in accomplishing my project.

I also take the opportunity to express my sincere gratitude to each and every person, who directly

or indirectly helped me throughout the project and without anyone of them this project would not

have been possible.

The immense learning from this project would be indelible forever.

 DECLARATION

I, hereby declare that the Summer Training Project Report, entitled “A STUDY OF

RECRUITMENT, TEAM HANDLIMNG AND BRANDING IN IDBI FEDERAL LIFE

INSURANCE CO. LTD”, is an authentic work carried out by me at IDBI FEDERAL LIFE

INSURANCE CO. LTD. It has not been submitted earlier for award of any degree or diploma to

any institute or university.

Place: PUNE Candidate’s signature

Date: Name: Praful Gawali

Countersigned

Name: Prof. Archana Lahoti

Supervisor

Suryadatta Institute of Management and Mass Communication College

 TABLE OF CONTENT
CONTENTS

Sr. No. Titles Page No.

1 Executive Summary

2 Literature Review

3 Industry & Company Profile

4 Research Methodology

5 Key Findings

6 Conclusion

7 Recommendations

9 Annexure

A) Questionnaire

B) Bibliography
Chapter 1- Executive Summary

In today’s corporate and competitive world, I find that insurance sector has the maximum growth
potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80%
while as FMCG sector has maximum 12-15% of growth rate. Despite recession this sector has
noticed a growth rate of around 35-40%. The growth potential attracts individuals to enter this
sector and IDBI-Federal Life Insurance Company Ltd has given me the opportunity to get a peek
of highly competitive and enhancing sector.

The awareness related to life insurance products in India, among the mass, is still very low. The
level is even lower in rural areas. Insurance is still considered as a tool for tax planning only, even
when companies have attached investment benefits to it.

The major factors affecting the purchase of an insurance product are trust, service, product features
and relationship with advisors. Firms like LIC are still favored only because of being a government
undertaking units. The concept of miss-selling has paralyzed the sector itself. People find it hard
to have faith in advisors. Their job is really very hard. People are now getting aware of the various
investment tools available in the market. The masses in urban cities like Pune have started
comparing the products. While talking to different people, I found that their purchase decision was
highly influenced by their family and colleagues. They purchased the insurance products at the
time when they needed it most, which according to them was at the time of tax planning, whereas
any insurance product must be bought when the individual needs it least so that they can actually
calculate the amount of life cover they need and the type of investment
theywant. They can spread awareness by organizing various camps, sending mails orthrough free
counseling for interested people.

OBJECTIVES OF THE STUDY

 To study various sales promotion Techniques implemented by Midas

 To study dealer’s opinion on sales promotion Techniques
 To compare sales promotion technique with competitors
 To study customer’s opinion on sales promotion techniques of IDBI Federal Life Insurance
Pvt Ltd.
Chapter 2-Review of Literature
Sales promotion is the process of persuading a potential customer to buy the product. Sales
promotion is designed to be used as a short-term tactic to boost sales but it is rarely suitable as a
method of building long-term customer loyalty. Some sales promotions are aimed at consumers.
Others are targeted at intermediaries and at the firm's sales force. Some of the previous research
works are given as an example

 In Business-to-Business (B2B) environments, many firms focus their branding activities

on the dissemination of their brand name and logo without developing more
comprehensive brand identity. Thus, the creation of brand awareness is an important goal
in many B2B branding strategies. However, it is still unclear if the great investment
necessary to build a high level of brand awareness really pays off in business markets.
Therefore, drawing on information economics theory, this paper investigates under which
conditions brand awareness is associated with the market performance in a B2B context.
Results from a cross industry study of more than 300 B2B firms show that brand
awareness significantly drives market performance.
(International journal of research marketing vol-27 issue-3, Christian Homburg, Martin
Klarman).

 Marketing activities related to the promotion of sales increased consumer purchases and
indirectly to get more profit for the company. So, the purpose of sales promotion is to
reach the targeted consumers and pervade them to buy. Sales promotion has become a
vital tool for marketing and its importance has been increasing significantly over the years.
One of the purposes of a sales promotion is to elicit a direct impact on the purchase
behavior of the firm’s consumers. Firms have to rethink the relationship between attitude
and behavior of their consumers. This study will be about the impact of sales promotion
on consumer purchasing behavior.
(Masha Familmaleki, International Journal Economics and Management Sciences)
Chapter 3- Industry Profile

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange
for payment. It is a form of risk management primarily used to hedge against the risk of a
contingent, uncertain loss. Insurance in the simplest terms means, a person has to pay a lump
sum to get a leverage or protection against an incident of a large magnitude. So, when the
unexpected misfortune is encountered, the insurance company can step in, helping one to sail
through the difficult time. Life insurance is a contract between the policy owner and the
insurer, where the insurer agrees to reimburse the occurrence of the insured individual's death
or other event such as terminal illness or critical illness. The insured agrees to pay the cost in
terms of insurance premium for the service. It is a promise of compensation for specific
potential future losses in exchange for a periodic payment. Insurance is designed to protect the
financial well-being of an individual, company or other entity in the case of unexpected loss.
Some forms of insurance are required by law, while others are optional. Agreeing to the terms
of an insurance policy creates a contract between the insured and the insurer. In exchange for
payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum
of money upon the occurrence of a specific event. In most cases, the policy holder pays part of
the loss (called the deductible), and the insurer pays the rest. Examples include car insurance,
health insurance, disability insurance, life insurance, and business insurance.

Global Trends

Global trends include 6 steps:

1. Launch a new product

2. Revamp existing policy
3. Consider strategic M & A
4. Expanding into emerging market
5. Add/enhanced distribution outlets
6. Raise rates / increase Penetration

Global Trends

New Product Launch Revamp existing policy Consider strategy M&A

Expanding into emerging market Add/enhanced distribution outlets Raise rates / increase Penetration
Top 10 Global Insurance Companies

Company Name Market Capitalization

Berkshire Hathaway (BRK.A) 308 billion

China Life Insurance (LFC) $80 billion

Allianz (AZSEY) $76.8 billion

American International Group (AIG) $72.3 billion

Ping An of China (PNGAY) $65.6 billion

MetLife (MET) $59.4 billion

AXA (AXA) $57.8 billion

AIA Group Hong Kong (AAIGF) $54.4 billion $54.4 billion

ING Groep (ING) $54.4 billion

Zurich Insurance (ZURVY) $45.4 Billion

COMPANY PROFILE

IDBI Federal Life Insurance Co Ltd

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, India’s premier
development and commercial bank, Federal Bank, one of India’s leading private sector banks
and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns
48% equity while Federal Bank and Ageas own 26% equity each. . Having started in March
2008, in just five months of inception, IDBI Federal became one of the fastest growing new
insurance companies to garner Rs.100 Cr in premiums. Through a continuous process of
innovation in product and service delivery IDBI Federal aims to deliver world-class wealth
management, protection and retirement solutions that provide value and convenience
to the Indian customer. The company offers its services through a vast nationwide network of
2,186 partner bank branches of IDBI Bank and Federal Bank in addition to a sizeable network of
advisors and partners. As on 31stMarch 2013, the company has issued over 4.99 lakh policies
with a sum assured of over Rs.28,580 Cr. IDBI Federal today is recognized as a customer-centric
brand, with an array of awards to their credit. They have been awarded the PMAA Awards
(2009) for best Dealer/Sales force Activity, EFFIE Award (2011) for effective advertising, and
conferred with the status of ‘Master Brand 2012-13’ by the CMO Council USA and CMO Asia.

History:
Type: Joint Venture

Industry : Life insurance

Founded : March 2008

Headquarters: Headquarters in Mumbai India

Key people : Yogesh Agarwal, Chairman G V Nageswara Rao, MD & CEO.

Products : Individual Life Insurance, Group Insurance and Pension Plans

Employees : 1,000 on-roll employees and 7,500 agents

Website : www.idbi.com

Company Information

Full name : IDBI Federal Life Insurance Co Ltd.

Legal Address: 1st Floor, Trade view Building, Oasis Complex, Kamala City,
Pandurang Budhkar Marg, Lower Parel (W); Mumbai; Maharashtra; 400013

Status: Non-Listed

Legal Form: Other non-liability limited

Operational Status: Operational

Financial Auditors: Dass Gupta & Associates (2010)

Tel: +91 22 2490 8109-10

Company Description

IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading financial
conglomerates – India’s premier development and commercial bank, IDBI, India’s
leading private sector bank, Federal Bank and Europe’s premier Bank assurer, Fortis, each of
which enjoys a significant status in their respective business segments. In this venture, IDBI owns
48% equity while Federal Bank and Fortis own 26% equity each. IDBI Fortis launched its first set
of products across India in.

Company Background

In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch insurance major Fortis Insurance
International NV signed a MOU to start a life insurance company in India. The company received
its license from Insurance Regulatory and Development Authority of India (IRDAI) (j.Arul je
gadeesh one of the trainee in the Idbi federal life insurance company in Madurai) in December
2007.
IDBI Fortis Life Insurance Co. Ltd. officially began its operations in March 2008. In August 2008,
the company collected the premium of over Rs.100 crore within a record time of five months, thus
becoming the fastest growing new life insurance company in the private sector.
India-Sri Lanka ODI series that took place in October 2009, found a title sponsor in insurance
major IDBI Fortis. The company’s AUM crossed the Rs. 1,000 crore mark for the first time in
March 2010.
In August 2010, the company was rechristened as IDBI Federal Life Insurance Company. In 2012-
13, it declared its maiden profits in record 5 years, thus was one of the fastest to do so in the
industry. It yet again clocked Rs. 80 crore profits for the financial year 2013-14 and has maintained
its profitable trajectory from thereon.

Product of the Company

BONDSURANCE

Get guaranteed return on your investment with life insurance IDBI Federal Bond insurance Plan
is designed for customers looking for guaranteed returns which will not get affected by financial
market conditions. It offers guaranteed return on investment along with life insurance cover.

Investment in this Plan is eligible for deduction under Sec 80C of the Income Tax Act and the
maturity amount is tax-free under Sec 10(10D) of the Income Tax Act.

If you are looking for a safe and steady approach to meet your dreams, you need a plan that will
give you steady and assured returns that are not defendant on market conditions .IDBI Federal
Bond insurance Plan is the ideal plan to beat the ups and downs around you.

WEALTHSURANCE

Wealth insurance plans combine wealth creation with insurance protection into one powerful
financial solution. Unlike other investment alternatives, it allows you to ensure that your goals of
wealth creation are achieved even in the event of serious illness, accidents, disablement or death.
Insured Wealth Plans to grow wealth under a protective cover
Wealth insurance

offers you Insured Wealth Plans. They allow you to create, build and manage wealth by giving
several choices and great flexibility so that your plan meets your specific needs. You can decide
how you wish to save so that it suits your savings habit. You can choose how your money is
invested so that you can grow wealth as per your investment preferences. What is even better,
Wealth insurance protects your wealth plans with life insurance benefits so that your wealth-
building efforts remain un affectedin unforeseen events and your financial goals can still be
achieved. As a seasoned investor, you recognise the ability of the equity markets to build wealth
over the long term. But you also appreciate the fact that the growth potential of the
market comes with the accompanying risk of volatility…
HOMESURANCE

Your new home is the fulfillment of a long-cherished dream. Only you know the careful
planning that went into its choice. And only you understand the hard work that went into arranging
the financing including the home loan. Truly, your home is your best gift to your family. Just
imagine what would happen, if due to an unfortunate event, you were not around. The entire burden
of your home loan would have to be borne by your family But you can ensure that they inherit a
home and not a home loan. We understand the importance of protecting your home loan and the
powerful IDBI Federal Home insurance
Protection Plan can help you insure your home loan at a reasonable cost.

TERMSURANCE

Happiness & security for our family is something all of us strive to achieve. How ever,there
are times when you ask yourself - What if something were to happen to me? What
would happen to my loved ones? Have I secured my family financially so that they don’t
have to
face life’s burdens?
Different people have different needs and seek different things from an insurance plan. Some
look for a large cover option at a low cost, while others seek return of premium on maturity of the
policy. There are some who may want their plan to keep in touch with inflation, while others may
seek flexible premium payment options.

INCOMESURANCE

Grow your Guaranteed Annual Income each time you pay premium Some goals cannot be left to
chance. Like educating your child, or planning for her marriage, or providing financial security toa
loved one, or ensuring a comfortable retirement income. Or you may just want to ensure a future
additional income stream.
Vision
To be the leading provider of wealth management, protection and retirement solutions that
meets the needs of our customers and adds value to their lives.

Mission
To continually strive to enhance customer experience through innovative product offerings,
dedicated relationship management and superior service delivery while striving to interact with
our customers in the most convenient and cost-effective manner. To be transparent in the way we
deal with our customers and to act with integrity. To invest in and build quality human capital in
order to achieve our mission.

Values
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers perceive value
Rock Solid and Delivery on Promise: This translates into being financially strong, operationally
robust and having clarity in claims Customer-friendly: Advice and support in working with
customers and partners Profit to Stakeholders: Balance the interests of customers, partners,
employees, shareholders and the community at large.

Awards
IDBI Federal was recognized as the ‘Best Insurance Company in the Private Sector’ for the
year
2013 -2014 at the Lokmat Banking, Financial Services & Insurance Awards[7]
IDBI Federal's thematic Annual Report for FY 2013-14 was conferred with the Corporate
Collateral Gold Award at the Global Public Relations Council of India Conclave 2015.
IDBI Federal's thematic Annual Report for FY 2012-13 was conferred with the Corporate
Collateral Award of Appreciation at the Global Public Relations Council of India Conclave
2014.
IDBI Federal was conferred with a special recognition at the Public Relations Council of India
Awards 2014 for their PR efforts towards their maiden profits story.
IDBI Federal was recognised as the ‘Best Life Insurance Company’ in the private sector at the
IPE
Banking, Financial services and Insurance Awards 2013.
Competitors
Bajaj Allianz Life has tied up with the web aggregator Policybazaar.com to have a greater
access to online life insurance policy market. Reportedly, the insurer plans to launch six products
through the online portal. In addition, the company’s existing online products will also be
available on Policybazaar.com. The insurer has plans of hiring 40,000 agents in the FY2014-15
to cover up for the loss of new business premium generated via its previous bancassurance
partner, Standard Chartered Bank.

ICICI Prudential Life has entered into a fifteen year bancassurance agreement with Standard
Chartered Bank as part of a regional agreement between Standard Chartered Plc and Prudential
Plc covering India and 10 other markets with effect from 1 July 2014

Exide Life is planning to open 9 offices in Eastern India and hire around 18,000 agents as a part
of its strategy to expand its presence in the region.

HDFC Life expects to witness a 100% increase in its revenue from online insurance sales by
2016. Reportedly, the revenue from this channel has grown 20 times to INR30 million since
online sales first began in 2012. In addition, the insurer is also benefiting from quicker premium
underwriting, reduced errors and higher persistency through the online sales channel.

IndiaFirst Life has partnered with Karnataka Vikas Grameena Bank to use their branch network
to offer simple insurance under its group term plan.

LIC has tied up with all the five insurance repositories to comply with the IRDA’s norm on
dematerialization (or digitization) of life insurance policies. The state-owned insurer has
expressed cost concerns in transferring its large policy base to insurance repository systems.
Chapter 4-Research Methodology

Business research is a systematic enquiry that provides information to guide business decision
and aimed to solve managerial problems. Business research is of recent origin and it is largely
supported by business organizations that hopes to achieve competitive advantages Research
Methodology is a way to systematically solve the problems. It may be understood as a science of
studying how research is done scientifically. It includes the overall research design, the sampling
procedure, data collection method and analysis procedure.

DESCRIPTIVE RESEARCH

Descriptive research study includes surveys and fact-finding enquires of different kinds, which
help the researchers to describe the present situation that makes the analysis about 15 the
effectiveness of employee satisfaction among the employees and helps to reach the objective.

SAMPLING DESIGN/TECHNIQUES:

Sampling design is to clearly define set of objective, technically called the universe to be studied.
This research has infinite set of universe and the sampling design used in the study is non-
probability sampling – convenience sampling.

SAMPLE UNIT/SAMPLE SIZE:

The item selected from the population constitutes the sample size. The study covers the customers
of IDBI federal life insurance company. Total sample size for the study is 50.

LIMITATIONS OF THE STUDY

 This study was conducted with less sample size due to time constraint and the survey was
conducted only in Delhi, so the research findings may not be generalized. Some of the
customers are reluctant to give full information, this leads to bias & may not reflect the
true picture.
 The observations are only based on current scenario, as it could change in future.
RESEARCH PROCESS

The research process has four distinct yet interrelated steps for research analysis it has a logical
and hierarchical ordering:


Determination of information research problem.

Development of appropriate research design.

Execution of research design.

Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and
specific procedure. The steps undertake are logical, objective, systematic, reliable, valid,
impersonal and ongoing.

SAMPLE SIZE:

The sample size was: 35 respondents.

I have targeted 35 customers in the age group above 21 years for the purpose of the research. The
target population influences the sample size. The target population represents the Pune City
regions. The people were from different professional backgrounds. The details of our sample are
explained in chapter named primary research where the divisions are explained in demographics
section.

SCOPE OF THE STUDY

A big boom has been witnessed in Insurance Industry in recent times. A large number of new
players have entered the market and are vying to gain market share in this rapidly improving
market. The study deals with IDBI Life Insurance Pvt Ltd in focus and the various segments that
it caters to. The study then goes on to evaluate and analyses the findings so as to present a clear
picture of trends in the Insurance sector.
Sources Data Collection Methods:
Primary Data:

Primary data was collected through survey method by distributing questionnaires to branch
manager and other sales manager. The questionnaires were carefully designed by taking
into account the parameters of my study.

Secondary Data:

Data was collected from books, magazines, web sites, going through the records of the
organization, etc. It is the data which has been collected by individual or someone else for
the purpose of other than those of our particular research study.

SAMPLING PLAN:-

Sampling Size: Unit was also 50 respondents of IDBI Federal Life Insurance Company
Limited.
Work area: Aundh, baner, sangavi.

Sampling type: Cluster sampling

Sampling unit: Individual agents of Insurance Company

Sample Technique: Stratified random sampling.

Chapter 5- Key Findings and Observations

How to Generate Leads

1. Low Cost Print Advertising Works
We use this system advertising in community newspapers and senior newspapers to generate
leads for an insurance agency. We have also tested in the daily newspaper when they run display
ad special prices. The investment for the ad is $200 (depending on your area). We get 10-20
replies each time we run the ad.
The booklet needs to have a catchy title as does the ad. We send the 20 booklets, call 2 days
later, get 6 appointments and close 3. Of course, we had to run ads in several publications until
we found those that work best in our area (we selected publications with high senior readership).
Some publications don’t work and there is no way to know which publications in your area will
work without testing all of them. We invested about $1200 in publications that did not work for
us. We had to “waste” some money until we found the 2 publications that produced the best
results continuously. Unfortunately, most advisors and agents will give up before they perfect
their system for leads not understanding there is some trial and error to everything you do. You
have to waste some money on what does not work to determine what does work. The key here is
the test in the ad. If you have not mastered writing copy, then hire a copy writer. The words are
critical to motivate consumer action. Of course, you can use our ads that have worked for a long
time (see the link on the previous page).

2. Co-generated Leads
The next method of lead generation is called co-generation. Your ad runs on the websites of
other businesses that do not compete with you. When the prospect is filling out a registration
form on the other web site, they get an option to also have their information sent to you for your
offer. If a prospect sees your ad and completes a form with their contact information, you then
pay for this lead. This is called “cost per action.” The best part of this type of lead generation is
that you pay for the prospect’s contact information. If the prospect does not fill out a form, you
don’t pay. You have NO upfront cost and only pay for responses of people who opt-in to your
offer. Here is an example. Mrs. Jones goes shopping at the vitaminmart.com (fictional site).
When she checks out, she sees a page with other offers as you see below. You could have an
offer on a page like that and get exposure on hundreds of web sites. You can offer a free report
or other items and pay only for those leads that opt-in to your offer.
 3. Banner Ads
The third way of conducting on-line lead generation is to use banner ads. These are ads that have
color and graphics and tend to attract the eye. Prospects click on them, are taken to your form
and hopefully complete their contact information. In this type of lead generation, you generally
pay per 1000 impressions, similar to running an ad in a magazine where the cost is based on the
circulation. Generally, this is not the type of marketing I recommend but on small sites that have
local traffic in your area; you can generate some good leads for a low cost (tip, if you are in say,
Columbus Ohio, do a search for web sites using the phrase “Columbus Ohio).” Don’t expect to
generate many leads though as these locally-oriented web sites do not get much traffic

4. Generate Leads on Line

A major way to conduct lead generation on line is to use pay per-click marketing with the major
search engines (Google, Bing Ads and Yahoo) so that when a prospect does a search for your
product or service, they will see your ad. The best aspect of pay-per-click marketing is that your
ad is exposed only to people who look for it. The worst part is that you pay each time someone
clicks to see your full ad. The prospect clicks a small link that might say “The Truth about
Financial Advisors.” At that point, you pay the search engine for the click. (How much you pay
depends how much you bid. If you bid high, a lot of people will see your ad and you will pay for
a lot for clicks and hopefully get a lot of good leads. If you bid low, few people will see your ad
and you won’t get much response). The prospect is then directed to your landing page which
needs to be well written and engage the prospect to take the next step (i.e. fill out your form with
their contact information).

Sales Promotion
1. Many sales promotions are not effective brand-building tools.
2. The overuse of sales promotion activities may have the potential of resulting in less positive
attitude toward the brand.
3. Even though many sales promotion programs result in a much larger volume of product sold,
profitability increases may be relatively low.
4. Sales promotion programs often require substantial implementation costs. 5. Sales promotions
tend to orient marketing managers toward the short-term.
Sales promotion is one of the elements of the promotional mix. It is the process of persuading a
potential customer to buy the product and it is designed to be used as a short-term tactic to boost
sales. Sales promotion uses both media and non-media marketing communications for a pre-
determined, limited time to increase consumer demand, stimulate market demand or improve
product availability.
Consumer Sales Promotions
Consumer sales promotion are short term techniques used to achieve short term objectives, such
as to stimulate a purchase encourage store traffic or simply to build excitement for a product or
brand. Consumer sales promotion is a marketing technique that is used to entice customers to
purchase a product. The promotions typically last for a set period of time and are used to achieve
a specific purpose, such as increasing market share or unveiling a new product.
Promotional Tools
Promotional tools are tactics or activities you plan and execute to persuade consumers to buy your
products or services. As a consumer, you likely partake in these activities yourself without
realizing it. As a business person on the selling side, finding effective tools is challenging.
Brand Loyalty
Brand loyalty is defined as positive feelings towards a brand and dedication to purchase the same
product or service repeatedly, now and in the future from the same brand, regardless of a
competitor’s actions or changes in the environment.
Brand Awareness
Brand awareness refers to the extent to which customers are able to recall or recognize a brand.
Brand awareness is particularly important when launching new products and services and for a
company to differentiate similar products and services from its competitors.

Planning Advertising and Promotion

The Advertising and Promotion Plan Is Only One Part of The Overall Marketing Plan and Must
Fit Within It. In Order to Start the Advertising Plan, We Need Some Background – Which Is Not
A Very Formal Restrictive Planning, But for A Process of Thinking Through What the Advertising
and Promotion Are Trying to Achieve
The Advertising and Promotion Plan Is Only One Part of The Overall Marketing Plan and Must
Fit Within It. In Order to Start the Advertising Plan, We Need Some Background – Which Is Not
A Very Formal Restrictive Planning, But for A Process of Thinking Through What the Advertising
and Promotion Are Trying to Achieve.
 A Situation Analysis (Where We Are and Why)
 Objectives (What the Brand Is Aiming for In Sales, Share and Other Targets)
 Positioning (How the Brand Is Positioned in The Consumer’s Mind, And How We Wish
to Change This);
 Strategy (How the Brand Is Going to Compete in This Market)
 Advertising Strategy (What Role Advertising Has Next Period With In The Overall
Strategy) And
 Budget (What Moneys Are Available to Spend on Advertising Promotion).
Promotion to capture Insurance Agents

Individual Agents
All insurance companies have an agency building distribution strategy under which they recruit,
train, finance, and supervise their agents/advisers. For decades, agency was the only distribution
channel for insurance in India. Even today, more than 70% of the business is carried out through
insurance agents. Through an agency, personal contact and relationship can be established with
the customer. The system of agents is a major source of both presales and post sales services to
customers, since it has a direct relationship with customers.

Corporate Agents
IFAs (Independent Financial Advisors) are authorized agents of insurance companies having tie-
ups with more than one insurance company. They are qualified persons or institutions who can
provide advice on financial products. Independent financial advisors are commissioned agents
whose primary business is the sale of property and casualty insurance for several insurers. IFA
assembles different financial products in accordance with customer needs and provide value
added products by creating customized insurance products.

Brokers
Insurance brokers are professionals who assess risk on behalf of a client, advice on mitigation of
that risk, identify the optional insurance policy structure, bring together the insured and insurers,
and carry out work preparatory to insurance contracts. Brokers represent the customer and will
sell the products of more than one company. They seek to determine the best fit for the client and
can effectively address the mind block faced by the public about the various companies. The
system of brokers is generally applicable in the case of insurance for the high-end and
corporate/group segment.

Marketing Mix Policies

Different companies can choose to position themselves differently and hence the Marketing Mix
is different. However, there are certain common characteristics that one can cull out from the
possible strategies that companies adopt.
Product:
The development of flexible products to suit individual requirements is what will differentiate the
winners from the also-rans. The key to success is in providing insurance solutions, not standardized
insurance products. The concept of riders/optional benefits has already been a huge innovation
brought about by the new players, which has led to customization of products for individual needs.
However, companies may differentiate themselves on the basis of product segments that they
choose to focus on and excel in.
Place:
Different companies may however choose different channels and different geographies to focus
on. The channel options are - tied agency force, corporate agents and brokers and this is an area
where different companies will make different choices. Many companies like HDFC Standard Life
are focusing on all channels whereas companies like Max New York Life are focusing on the tied
agency force only. Customer interface will be a key challenge for life insurance companies and
includes every that interaction that the customer has with the company, such as sales, new business
underwriting, policy servicing, premium payments, claim processing and so on. Technology can
play a crucial role in delivering the highest standards of service set by the company and it will be
imperative for any serious player to excel in all of these.
Price:
Price is a relevant differentiator only in two segments - pure term insurance and in pure annuities.
Here too, service delivery and financial strength will need to be present at a minimum acceptable
level for price to be a relevant differentiator. In case of savings oriented products, long-term returns
generated are more relevant than just the price of the product. A focus on generating good
investment performance and keeping a tight control on costs help in generating good long-term
maturity value for customers. Norms have been laid down on all of these by IRDA and adhering
to these while delivering good returns will be a challenge.
Chapter 6- Conclusions

We have started working on this project from 27th May 2019. We made ourselves understanding
about this industry, various channels working in this industry. We have completed the project
with most leading channel of this industry called as AGENCY CHANNEL.
In this channel the manager has to recruit advisors (agents) from the market and has to train them
and have to generate business through their advisors. We have understood the process of
recruiting these advisors.
 For this Managers are doing lot of market activities and generating leads.
 Later these leads get converted into advisors through BOP (Business Opportunity
Presentation)
 Once advisor joins the company, he/she has to undergo training and IRDA Exam

Once these advisors come on the board after passing IRDA exam, getting business from them
month on month, motivating them for bringing business is very big challenge in this industry.
Advisors retention with month on month activation is really a tough job. These advisors are
working part/full time for company. But they don’t get any fix salary. In this scenario, retaining
them with same interest level, boosting them for qualifying for internal contests floated by
company is very challenging.
As this is one of the oldest channel/methods used by all insurance companies, now a days all
these newly multinational insurance companies like IDBI Federal, ICICI Prudential, Max Life,
Bajaj Allianz etc. have developed this channel more effectively. Out of 26 private companies
apart from LIC, various companies started paying some fixed salary amount to these advisors on
achieving certain targets every month. This is good initiative on one side, and at the same time
its affecting adversely to companies, which don’t have such provisions of paying salary to
advisors. It affects in the following way...

 Advisors productivity gets affected and they stop working

 If such advisors are not putting any business for 3 months, they automatically goes to
inactive category. If situation continues then their license gets terminated by the
company.
 License renewal is also a lengthy process, where that particular advisor has to give
assurance of certain business MOM.
 Chapter 7- Recommendations

 As the people think that insurance is a tool to protect their family & a tax saving device. They
are aware of the fact & realizing its, importance. The company should try to expand & build
up its infrastructure because there is a large potential for insurance in India.
 Company should come up with its branch in Chennai. With the objective and goals to meet
the demands & expectations of the public. Because the entrance of private players will
increase the competition and it would be a tough task to secure a good position in market.
 Since HDFC Standard Life Insurance Company Ltd is leading with several companies’
policies it should be easy for them to penetrate into the market and secure a good position if
they pay greater attention to the service part provided to their customer and thereby forming
a long and trusted relationship.
 As seen from the survey that at present 70% of the customer are having insurance policy out
of which 87.5% of the customer are planning for new investments. So, it can be a good
potential for the company and they should make an attempt to trap these customers.
43% of the customer is even ready to go for insurance if a service provider away from their
home is providing it. But intend they should provide good products and services. The
company should try to convince these customers and get them in its favor.