Professional Documents
Culture Documents
ON
AT
SUBMITTED BY
POOJA PANDIT
MBA-III(MARKETING)
BATCH (2018-20)
SUBITTED TO
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DECLARATION
We hereby declare that the project titled “Acquisition of new customers & cross selling of
companies product mix ” is an original piece of research work carried out by us under the
guidance of Mr. Prasanna Kumar Pathak and Mr. Parth Jena. The information has been
collected from genuine and authentic sources. The work has been submitted in partial
fulfilment of the requirement of the Master of Business Administration to University of
Savitribai Phule Pune University.
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ACKNOWLEDGEMENT
My Project work with Future Generali as summer trainee has been a great learning
experience. It added a great value to my overall knowledge, thinking ability and personality
as a whole. I was exposed to the real market and gained first hand invaluable experience in
the insurance industry.
I would like to bestow my gratitude to all who helped me during the course of the project
for their inspiring guidance and kind advise throughout the project work.
I am highly thankful to the whole team of Future Generali Total life insurance, Pune for
providing me with the opportunity and facility of learning in their organisation. I express my
deep sense of gratitude to my company guide Mr. Parth Jena (Senior area manager) and Mr.
Prasanna Kumar Pathak for their valuable guidance during my project work.
I am thankful to my faculty guide Prof. Priyanka Nigade for valuable inspiration and
guidance provided me throughout the course of this project.
At last I would like to extend my deep sense of gratitude to my friends and colleagues for
their support in my project work.
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EXECUTIVE SUMMARY
Future Generali is a joint venture company, formed by the Future Group and The Generali
Group. Future Generali Life combines the Future Group’s pre-eminent leadership position in
India and The Generali Group has been a leading provider of insurance and financial services
in the global market for nearly two centuries.
After having a detailed study of the various types of insurance plans offered by
company in the market, I was assigned to sell the insurance plan in the primary market. In
this process I interacted with many customers and try to convince them to buy policy. With
this activity I learned that many customers are not willing to the insurance policy.
Therefore, I decided to opt the project on “A study on customer behaviour in relation life
insurance.”
The objective of the study was to find customers behaviour and perception in relation to life
insurance.
During the survey, it was found that most of customers had the knowledge about the
insurance companies available the market. It was a learning experience for me. I came in the
close touch with the market trend and learned about the various competitive advantages to be
achieved in the market. Finally, I submitted my report and it was really a great corporate
exposure through this summer training into the organization named “Future Generali Life
Insurance Co. Ltd.”
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INTRODUCTION
Insurance
The insurance sector in India has come to a full circle from being an open competitive market
to nationalization and back to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two
centuries.
The insurance sector in India is growing at a speedy rate of 15-20% and together with
banking services insurance services add about 7% to the country’s GDP. In the last
completed financial year of 2018-2019 the insurance sector has shown a growth rate of 23%.
Today Insurance Companies in India have grown manifold. The insurance sector in India has
shown immense growth potential. Even today a giant share of Indian population nearly 80%
7 |is not under life insurance coverage, let alone health and non-life insurance policies. This
clearly indicates the potential for insurance companies to grow their market in India.
In simple terms it is a contract between the person who buys Insurance and an Insurance
company who sold the Policy. By entering into contract the Insurance Company agrees to pay
the Policy holder or his family members a predetermined sum of money in case of any
unfortunate event for a predetermined fixed sum payable which is in normal term called
Insurance Premiums.
Insurance is basically a protection against a financial loss which can arise on the occurrence
of an unexpected event. Insurance companies collect premiums to provide for this protection.
By paying a very small sum of money a person can safeguard himself and his family
financially from an unfortunate event.
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Definition Of Insurance:
In laymen’s term insurance can be defined as: “A transfer of the risk of a loss, from insured
(person taking insurance) to the insurer (the company) in exchange for a payment of certain
sum of money (premium)."
In financial sense insurance can be defined as: “A social device providing financiasl
compensation to the insured for the consequences of adversities and the payment is paid by
the insurer from the accumulated contributions (premiums) of all the parties participating in
the arrangement. The essence of insurance is collective bearing of all risks or pooling of
risk.”
In legal sense insurance can be defined as: “A contract under which the insurer (the
company) in consideration of a certain sum of money paid (premium) by the insured (the
person whose risk is insured) agrees to:
Make good of the loss suffered by the insured against a specific risk.
To pay a prefixed amount to the insured or his/her beneficiaries o the
happening of a specific event.
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Benefits of Insurance
NECESSITY OF INSURANCE:
The question contains the answer within itself. After all, life is fraught with tensions and
apprehensions regarding the future and what it holds for the individual. Despite all the
planning and preparation one might make no one can accurately guarantee or predict how or
when death might result and the circumstances that might ensue in its aftermath.
We are not saying that life and existence are constantly fraught with danger and uncertainty.
But then it is essential that you plan for the future. The changes for a fatality or an injury to
occur to the average individual may not be particularly high but then no one can really afford
to completely disregard his or her future and what it holds. People generally regard insurance
as a scheme when and where you have to lose a lot to gain a little. Nevertheless, insurance is
still the most reliable tool an individual can use to plan for his future.
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Assets are insured, because they are likely to be destroyed, through accidental occurrences.
Such possible occurrences are called perils. Fire, flood, breakdown, lightening, earthquake,
etc. are perils. If such perils can cause damage to the assets, we say that the asset is exposed
to that risk.
Perils are the events. Risks are the consequential losses or damages. The risk to owner of a
building, because of the peril of earthquake, may be a few crores of rupees, depending on the
cost of the building and the contents in it. The risk only means that there is a possibility of
loss or damage. The damage may or may not happen. Insurance is done against the
contingency that it may happen. There has to be an uncertainty about the risk. Insurance is
relevant only if there are uncertainties. If there is no uncertainty about occurrence of an event,
it cannot be insured against. In case of human being death is certain, but the time of death is
uncertain.
FUNCTIONS OF INSURANCE
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Is a savings and investment tool – Insurance is the best savings and investment option,
restricting unnecessary expenses by the insured. Also to take the benefit of income tax
exemptions, people take up insurance as a good investment option.
Risk Free trade – Insurance boosts exports insurance, making foreign trade risk free
with the help of different types of policies under marine insurance cover.
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MARKETING CAMPAIGNS:
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COMPANY OVERVIEW
FUTURE GROUP:
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s
leading business houses with multiple businesses spanning across the consumption space.
While retail forms the core business activity of Future Group, group subsidiaries are present
in consumer finance, capital, insurance, leisure and entertainment, brand development, retail
real estate development, retail media and logistics. Led by its flagship enterprise, Pantaloon
Retail, the group operates over 12 million square feet of retail space in 71 cities and towns
and 65 rural locations across India. Headquartered in Mumbai (Bombay), Pantaloon Retail
employs around 30,000 people and is listed on the Indian stock exchanges. The company
follows a multi-format retail strategy that captures almost the entire consumption basket of
Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail
chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big
Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with
the choice and convenience of modern retail.
Other group companies include, Future Generali, the group’s insurance venture in partnership
with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future
Logistics, providing logistics and distribution solutions to group companies and business
partners and Future Media, a retail media initiative. Through its partner company, Blue Foods
the group operates around 100 restaurants and food courts through brands like Bombay
Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato.
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THE GENERALI GROUP : The Generali Group is a leading player in the global insurance
and financial markets. Established in Trieste in 1831, today the Group is one of Europe’s
largest insurance providers and also is Europe’s biggest Life insurer. It is also one of the
world’s top asset managers with assets totalling more than € 400 billion. With an employed
sales force of more than 100,000 people serving 70million clients in 68 countries, the Group
occupies a leadership position in Western Europe and an increasingly important place in
Eastern Europe and Asia. The Group strategy aims to consolidate Generali’s pre-eminence on
its key markets and achieve a premier position on markets with high growth potential,
establishing its leadership in profitability.
OBJECTIVE
To provide superior customer service through our knowledge-based business partners and
employees supported by innovative products and services.
POSITIONING
VISION:
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VALUES:
Respect:
for all our stakeholders- employees, customers, for all rules and regulations both internal and
external.
We understand India in all its diversity and different facets and will use for our local
understanding to respond to our specific markets, design our products and craft our processes.
Nimbleness:
A combination of speed and quality, and ability to overcome all obstacles which come in the
way of the achievement of our vision.
"Can Do":
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MARKETING MIX
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.
Future Generali has more than 20 life insurance products. Few are below:
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In case of option A, policy term (PT)is (PPT+10) years and after the completion of PPT, the
policyholder starts getting 10% of sum assured every year till 9 years and 110% in 10th year.
In case of option B, the policy term is (PPT+5) years and after the completion of PPT, the
policy holder starts getting10%of sum assured every year till 4th year and 160% in 5th year.
In both the cases totals benefit is 200% of the sum assured. The minimum annual premium is
18000 Rs.
In case of death, the nominee will get the death benefit that is highest of the following:
II. 105%oftotal premiums paid (excluding taxes and extra premiums, if any) as on date of
death, or
2. ASSURED INCOME
PLAN:
It is a non-inked, non-
participating endowment plan. For this plan, the entrance age is from 5-50 years. In this plan,
the premium payment term (PPT) can be of 11years and 15years. In case if PPT is 11years,
the policy holder has to pay annual premium until 11 years and he/she gets back 1.5 times the
annual premium from the end of 12 year until 22 nd year. In case if PPT is 15 years the
policyholder has to pay annual premium until 15 years, and he/she gets back 2 times the
annual premium from the end of 16th year until 30th year. In both the cases, additional benefit
is paid at the end of the 22nd and 30th year respectively based on age at entry.
In case of death, the nominee will get the death benefit that is highest of the following:
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II. 105%oftotal premiums paid (excluding taxes and extra premiums, if any) as on date of
death, or
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This plan is ideal for assuring child’s education. For this policy, the entrance age of child
should be 0-10 years and of the parents should be 21-50 years. Policy term is (17-child’s
current age).
Maturity benefit for this plan is equal to sum assured. In addition, 5% of the sum assured
every year until the end of policy term is given to the policyholder. In case of premature
death of the policyholder, rest of the premiers are waved off and the nominee gets amount
equal to sum assured, immediately after the death. Also, at maturity, the nominee gets the
sum assured again.
This a participating, non-linked plan and offers compounded reversionary bonus and terminal
bonus. Entry age for this plan is 3-55 years and minimum sum assured is one lac Rs. There
are two options in this plan: option 1 and option 2.
Option 1: Guaranteed Maturity Sum Assured equal to Sum Assured plus Vested Compound
Reversionary Bonuses, if any, plus Terminal Bonus, if any, is paid.
Option2: Guaranteed Maturity Sum Assured equal to Sum Assured plus Vested Compound
Reversionary Bonuses, if any, plus Terminal Bonus, if any, is paid. Even in case of death of
the Life Assured, instant sum assured is paid to the nominee. The nominee also receives
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maturity benefit at the end of the policy term. Limited; (PT: 15-30 Years; PPT: 10-25)
Difference between PPT and PT should be minimum 5 years and maximum10 years.
KEY FEATURES
Savings plan with the added advantage of life cover and cash inflow at regular
interval.
Guaranteed money back payments of a total of 100% of the sum assured during
the policy term along with guaranteed additions and vested bonuses (if any) at
maturity
Compounded guaranteed additions at 3.5% of the sum assured for first four years
Compounded reversionary bonuses from the 5th policy year onwards
Fixed policy terms of 15 years and 20 years to fulfil your medium to long term
financial goals
Inbuilt waiver of premium benefit and additional accidental death benefit equal to two
times sum assured
Discount in premium on opting for a large sum assured
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Distribution Network
Future Generali currently has 97 branches across 80 cities and over 14,700 licenced advisors.
Future Generali also has Mallassurance™ channel- Total Insurance Solutions available at
Malls via retail outlets. Mallassurance was launched in May, 2009, and has already expanded
to 165 stores in 53 cities. (December, 2010)
Future Generali Life Insurance also distributes its products online. (Example- Future Generali
Smart Life).
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RESEARCH METHODOLOGY
Marketing Research
Research design is the basic plan which guides the researchers in the
collection and analysis of data required for practicing the research product. In fact the
research design is the conceptual structure with which research is conducted. It
consist the blue print for the collection, measurement and analysis of the data that was
followed completing the study to ensure that study is relevant to the problem and will
follow the predetermined and set data.
DESCRIPTIVE RESEARCH :
The research design selected for this research is descriptive research design.
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METHODOLOGY
Collection of the data for the study can be drawn from following methods for study.
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After determining the objectives of study and research design, the next
important step is data is step collection method. The information has to be collected
from the retailers. During the process of the study the data is collected from the target
segment that is customers, dealers and distributors with help of a structured well
designed questionnaire.
• Primary data
• Secondary data
PRIMARY DATA
It was collected through questionnaire prepared contains relevant questions that are both
close ended and opened. Individual and group interviews also under taken with difference
consumers,
I have collected mainly the Primary Data for my study by utilizing the questionnaire and
interview methods.
SECONDARY DATA
These data are collected from published sources such as Magazines, NEWS
papers, several books, and also from the help of web site
www.genral.futuregenerali.in
Sample size:
During the process of the study, survey has been conducted on 100 respondents.
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SAMPLING METHOD:
The researcher had choice between probability and non probability sampling
methods. In this study a simple non probability method namely convenience sampling
was adopted.
DATA PROCESSING
Daily data will be entered into MS-Excel sheets. After the exhaustion of the
specified geographical area this data will be analysed using simple graphical and
tabulation techniques.
DATA ANALYSIS
Future Generali Insurance
One significant observation made from the study was that the number of players in the
market are increasing at a very fast pace, especially the entry of multinationals.
Thus it is believed that a research to find out the awareness level and recall level of the
brand “Future Generali Insurance” vis-à-vis other major brands will give an idea about
where does the brand exists in the mind of the consumers. This might help the brand to
identify the reason for the decreasing market share.
SURVEY OBJECTIVE :
The Primary objective of the survey is to find out how does FUTURE GENERALI
INSURANCE fair in the Awareness and recall level as compared to the major competitor.”
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SWOT ANALYSIS
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group.
When the survey was conducted the basic problems faced were as follows:
People were not very supportive in providing reply to the questionnaire
People often felt that I was from some insurance company and was trying to sell a health
insurance policy to them
They were thinking that if they will provide information , then it might happen that their
personal earning might get disclosed and it might lead them in trouble, so they were not
willing to reply
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2. Market Share
Now if we take a look at the current market share of health insurance business by various
companies we get the following figure ( data source IRDA, updated till march 2011)
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5. When people who were not having health insurance covered, were asked the question
“if they will buy an insurance product in future”?
The following result arrived
6. When people were asked that “via which channel have they purchased the policy”?
As we can see that as expected by common sense as well Agents form the most successful
channel via which people purchase policy in fact health policies to be precise. They constitute
about 40% of the overall channels. It means that a major section of the society still goes to
agents whenever they need to purchase a policy.
Agents provide services on a very personal basis, which is also a reason why they are the
most successful channel for selling insurance. Although agents have been the face of the
frame for a long period of time now, but we can see that many people have got their policies
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from other type of channels also. About 13% people have got their insurance cover from the
way of the company or organization in which they are working. So we can say now
organizations are also becoming a link between the insurance companies and a person. Since
the person is working in an organization thus it is the duty of that organization to take care of
the health needs of its employees and his/her family.
7. Client identification:
The most important thing for any intermediary is to identify its clients. There are various
channels or leads which help these intermediaries to identify its clients. The following figure
will give a better picture regarding client identification:
The above figure is a combined picture of the business bringing strategies of both agents
and brokers taken together.
We can see 25% of the business is brought by a combination of reference from existing
clients, insurance companies, and tele calling, as well as with the help of direct sales team
exclusively designed for this purpose only.
2 combination is the combination of reference from existing clients and insurance companies
nd
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The combination of Reference from existing clients, Insurance companies, Tele calling, direct
sales team, and online search for clients was considered by 5% of the overall respondents as
helpful in bringing clients.
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Other companies are offering many products which are especially desgined for health
insurance segment.
Future Generali is providing one product each for individual cover, family floater and
personal accident insurance.
For the personal accident section, Future Generali is having a single product, whereas many
other companies are providing more than one product, and thus it becomes clear that they
have designed different products for the personal accident market also covering different
situations.
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CONCLUSION
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LIMITATIONS
The data collected cannot be free from errors, since some of the respondents failed to
give correct information.
A small segment of the market has been covered only, so the conclusion cannot be
generalised.
Study accuracy totally based upon respondents response.
Stipulated short span of time for survey
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BIBLIOGRAPHY
Books-
Websites-
www.google.co.in
www.futuregenerali.in
www.irda.gov.in
ibef.org
slideshare.com
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ANEXURES
Questionnaire
Name :
Age :
Occupation:
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9) What features will you consider while buying on Insurance policy in Future Generali?
a) Money back guarantee
b) Low premium
c) Larger risk coverage
d) Easy access to agents
e) Company’s reputation
10) If you want to clarify any query to whom would you like to consult first
a) Advisor c) customer care
b) Company website d) branch manager
12) Other than Life Insurance policy what insurance policy would you like to buy?
a) Money back c) retirement plan
b) Assured Income plan d) Wealth plan
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