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MSP Mandal`s

DEOGIRI COLLEGE
AURANGABAD.
PROJECT REPORT

ON

“MARKETING SURVEY AND CHANNEL


DEVELOPEMENT”

OF

ICICI PRUDENTIAL LIFE INSURANCE COMPANY


LIMITED, AURANGABAD.

Submitted in the partial fulfillment in

BACHELOR OF BUSINESS ADMINISTRATION


Dr. BABASAHEB AMBEDKAR UNIVERSITY, AURANGABAD

Submitted By: Project Guide:


Chavan Gopal Bhikusing Miss. Naziya Shaikh
Certificate

This is certifying that Mr. Chavan Gopal Bhikusing is a student of our


college & studying in B.B.A. As a part of university program he has
undergone a project work on “Marketing Survey And Channel
Development” of ICICI Prudential Life Insurance Company Ltd.,
Aurangabad. Under the guidance of Miss. Naziya Shaikh.

He has duly acknowledged all the sources of reference used in the


report. This report, based on above topic is in partial fulfillment of the
requirement of the,

Bachelor of Business Administration (B.B.A)

OF

Dr.Babasaheb Ambedakar Maratawada University


Aurangabad.

Miss.Naziya Shaikh Dr.P.V. Jabade


(Internal Guide) (Principal)
ACKNOWLEDGMENT
It gives me immense pleasure to introduce my project work entitled
“Marketing Survey and Channel Development” of ICICI Prudential Life
Insurance Company Ltd. Aurangabad.

I take this opportunity to express my gratitude to all those who helped me


in completion of my project successfully. I am grateful to
Mr. AJAY PATEL for giving me the opportunities and helping me for completing
my project and giving their valuable time.

I sincerely thank my esteemed guide Mr.JITTO DAVID (UNIT MANAGER)


for his valuable guidance and co-operation rendered to me through out the
project report. It would not have been possible for me to complete this project
without there meticulous guidance and suggestions.

I give my thanks to MISS. NAZIYA SHAIKH (PROJECT GUIDE) and


MR. JABADE (PRINCIPAL DEOGIRI COLLAGE) for their valuable contribution, co-
operation and guidance from time to time for completion of this project.

Last but not the least I would like to thank my parents, friends , Colleagues
and the staff of ICICI Prudential Life Insurance Company Ltd.
Aurangabad, who directly or indirectly help me during the course of project
without which project would have been a Herculean task.

CHAVAN GOPAL BHIKUSING


Declaration
I Mr.Chavan Gopal B., hereby declare that the project
work entitled “Marketing Survey and Channel Development”
is an authentical work carried out of " ICICI Prudential Life
Insurance Company Ltd. Aurangabad” under the guidance of
Miss. Naziya Shaikh for the partial fulfillment of the award of
the degree of Bachelor Of Business Administration and this work
has not been submitted before.
Purpose anywhere else expected to Deogiri College Aurangabad.
Affiliated to Dr. Babasaheb Ambedkar Marathwada University,
Aurangabad.

Gopal B.Chavan
Date: 5Th may 2009

To Whom It May Concern :

This is to certify that Mr. Chavan Gopal Bhikusing has worked with
Bharti Airtel Company Ltd., Aurangabad On project assignment 15th
April to 30th April 2009.

The project undertaken during the period was –

Marketing Survey & Channel Development


in Aurangabad

The above mentioned project has been successfully completed.

We wish him all the best for all future endeavors.

Titto david
(Unit Manager)
Sr.
No.
INTRODUCTION
1.1 CONCEPT SELLING

Basically concept selling as same as any tangible product, but only different is that product

is service and not tangible and we have to sell the concept. IN ICICI Prudential, concept

selling is popularizing the concept of Financial Advisor Company. Concept selling is

making the people aware of benefits they get from the company while working for it and

also making them known about the products i.e. Insurance Plans in the portfolio of the

company, the commission structures etc.

1.1.1 Reason for selection of the topic:


The reason for selection this particular topic for the project is due to the tremendous

growth that is taking lace in the insurance industry. Also the job was challenging as I was

getting an opportunity to work with a leader in the industry, this will provide a platform to

enter into the service sector.

1.1.2 Importance of Company:


The basic objective of the project was to appoint the new financial advisor for the

company, in more precise words it is the expansion of the company the new financial

advisors company’s sales is going to increase.

This study will help the company in being known the mind set of the people to

become a financial advisor, as well as the constraints while joining the company as a

financial advisor.
1.1.3 Learning from project:
I learnt how the insurance company works, what are the channels of distribution and

elements in distribution network of the company, what are eligibility criteria to

become a financial advisor.

I studied overall working of Insurance companies. I came to know about channels

of distribution network used by Insurance companies. I studied the policies and

process of appointing financial advisor for ICICI FRUDENTIAL Life Insurance

Company.

1.2 Theoretical Background:


1.2.1 SERVICES:

Services from major part of day today life. Today services sector is the fastest growing

sector in almost every countries economy. Services are the intangible product which are

attached to either the provider that is producer or the service receiver i.e. the customer who

byes it to enjoy the benefits of the services.

1.2.2 DEFINSTION:

◙ Kotler (1988) Define service as:

“Any act or performance that one party can offer to another that is essentially intangible

and does not result in ownership of any thing. Its production any or may not be tied top a

physical product.”

◙ The American Marketing Association Services as:

“Activities, Benefits, or Satisfaction, which are offered for sale and provided in

connection with the sales of goods.”

1.2.3 CHARECTERISTICS OF THE SERVICES:

Following are the different attributes common to the services:

◙ Intangibility: Services do not have a physical form.

◙ Inseparability: A service cannot be separated from sources that render it.

◙ Inconsistency: The quality of service can differ from one service provider to another

service provider. Also may form one service encounter to another even for the same service
provider.

◙ PERSONAL ABILITY: Services are not the physical objects therefore can’t be stored.
◙ OWENERSHIP: Buying service does not result into ownership of anything.

◙ SIMULTANEITY: The production and consumption of the service is always

simultaneous.

◙ QUALITY MEASURMENT: There is no particular standard set for the services.

◙ NATURE OF DEMAND: The demand for the service in the market is always

fluctuating.

1.2.4. The 7-S work for a service organization:


1. Strategy.

2. Structure.

3. System.

4. Styles.

5. Staff.

6. Skills.

7. Shared values.

1.2.5 Marketing Channels for services:


Marketing channels for refers to an organized network of inter connected organization

and agencies involve in the process of making the product or services available to

customers. They are the intermediaries and also known as the middleman. Producers of

services also need to think about the channels of distribution, which can make their

services available to the customers.

They distribution of services is a critical task due to their intangibility, perish,

inseparability, etc. Therefore mostly the direct channel i.e. zero level is used in this case

the provider directly sales his services to customers. However some service provider makes

take help of the agents who can provide information of the customers, book the order and

collect the payment on behalf of the service providers. In any casa channel length does not

exceed one level. Some big and reputed service provider train the individuals to perform

service and franchise their services e.g. Employment agencies, travel agencies etc.

EXAMPLES:

1. Service provider-customer: Zero level.

For example, customers, lawyers architects, doctors etc.

Use zero level for giving their services to their customers.

2. Services provider-Agent-customers: One level

For example, Education institutes, entertainment, insurance, securities, banks and

financial institutions and appoint agent (direct selling agent).

3. Service provider (Franchiser)-Franchisees-Consumer: One level.

1.3 SECTORS IN SERVICES AND THEIR GROUTH


POTENTIALS
Following are the key services industries in India and their growth potentials:

1. Insurance:-
India is not recognized as a first emerging market for a insurance. The Indian

insurance is accepted to be $25 billion in 2010 on an assumption of 9.7 % real growth in

the GDP. With the passing or IRDA act in 2000 the insurance market in India has been

open to privet sector. As a result as many as 34 insurance companies entered the market;

in collaboration with foreign companies by end of 2002-2003 the market has now become

highly competitive and challenging.

2. Transport:-
Heavy investments are made in means of transport like railways, waterways and
airways. There is need to develop infrastructures, modernize buses and train, aircrafts,
ships, introduces professional management improvement safety and security measure to
make this sector progressive.
3. Telecommunication:-
In spite of significant growth in telecommunication sector in the recent past, the
teledensity in India was abysmally low compared to other countries the teledensity in
India was only 1.89 by the end of 2002. Telecommunication has tremendous growth
potential. The rapid growth in cellular, radio paging, value added services, internet and
global mobile communication by satellite services, besides basic telephone services, is an
indicator of the bright future of sector.

4. Software:-
Computer software is the thrust area in growth plan of India economy. The
focus is to develop the industry for export as well as for domestic needs. Thus
this industry is having bright future.
5. Electricity:-
The government of India has taken up mission 2012 with an object of providing
power for all. A comprehensive plan has been developed to address all the problem’s
being confronted by sector. With these initiatives being taken for the growth of the sector,
we can be hopeful of better power generation.
6. Postal services:-
The department of posts is adapting itself to the hanging markets dimension in
spite of the financial impediments. Competition from courier and other services
companies is becoming more intense day by day. However, the department has no parallel
challenge in terms its huge network con connecting every part of India.
7. Tourism:-
Tourism is dynamic field and is subject to constant changes cause by the consumers as
well as social treads. One of the reasons identified for the slow growth of sector in India is
the lack of professionalism in the marketing tourism services. Hence strategy approach in
marketing of truism services is necessary to achieve good results.
8. Banking
Indian banks have a gigantic task of striking of appropriate balance between banking
operations of international standard and commitment and social welfare there is a need to
reset social .economy objective in the larger interest of the nation by taking into
consideration factors such as several competitions customers sophistication business
diversification product innovation asset and liability mismatch increased business risk,
NPA menace, capital restructure, cyber/e, banking-commerce and universal bankin

9. Healthcare:-
The entry of the corporate sector has brought in dynamic shift in healthcare services.
Having an assured growth in demand due to the increasing population, rise in the
population levels, emergence of communicable diseases, epidemics and falling living
conditions, and the health care sector has prospects of high level growth.

10. Education:-
The liberal financing by banks and other financial instructions, further facilities the
growth of this sector. In spite of several impediments such as school drops out’s,
infrastructure constraints quality variations lack of proper vision, financial problems for
public institution and universities, the sector is set to reach new heights each year.

1.4. INSURANCE
In this age of uncertainties nothing can be called as safe, a small accident can end our life
business home vehicle therefore it is necessary to insure the things including our life so that
if incident occurs the loss can be reimbursed .insurance is a promised given by one to
another where by the promissory undertakes to pay a sum of money to the promise on the
happening of the event insured against.

Types of insurance:

• Term life insurance.


• Car insurance.
• Health insurance.
• Long term care insurance.
• Burial insurance.
• Business insurance.
• Home owners insurance.
• Group health insurance.
• Disability insurance.
• Whole life insurance.
• Home improvement insurance.
• Others: motorcycle, boat, flood insurance etc.
1.5 LIFE INSURANCE:

Life insurance is promise to perform in future when the obligation is met i.e. the insured
event takes place ,the money ,whose presence can be felt replaces the promise his helps the
insured person or in case of his death his dependences will get the assured amount of
money with which they can obtain the necessities of life.

Marketing approach to life insurance

Life insurance is a personalize service oriented industry, therefore providing the service
that should match the needs and wants of the customer should be a basic objective of life
insurance company. The marketing approach in relation to life insurance involves
following four steps.
1. Research to determine customer’s insecurity.
2. Designing new policies or innovate old ones.
3. Market services to the customer for whom they where researched and designed at
profit.
4. In doing so satisfy the customer’s needs.
Identify the customer’s
future needs

Forecasting and research Develop appropriate


on future market needs insurance plans
for insurance

Determine the
premium for each plan
Policy servicing developed

Opening of
branches, Personal selling
appointing agents through agents;
and development Advertising
officers

MARKETING APPROCH TO LIFE INSURANCE


1.6 AGENT

An agent is an intermediary who acts on behalf of the service principle and is


authorized to make agreement between the customer and the service provider or
principal. Agent does not take title to services but instead deliver the right to
them. They have legal authority to market the services as well as to perform
other marketing functions on behalf of the producers.

TYES OF AGENT:

There are two types of agents:-

1. Selling Agents: - They have contractual authority to sell a services


principals output. E.g. Insurance, financial services.
2. Purchasing Agents: - These agents have a long relation with buyers
evaluating and making purchases for them they are knowledgeable and
provide helpful market information to clients as well as obtaining the best
services and prices available. E.g. agents hired by company to find art,
rare jewelers, antiques etc.
COMPANY PROFILE
ABOUT ICICI
ICICI bank is India’s second largest bank with an asset base of Rs. 2513.89
billion
As on march 31, 2006.ICICI bank provides a broad spectrum of financial
services to indices and companies. This includes mortgages, car and personal
loans, credit and debit cards, corporate and agricultural finance the bank
services a growing customer base for more than 17 million customers through
multi-channel network which includes over 620 branches and extension
counters, 2200 ATMs, call centers and the retail customers through a Varity of
delivery channels through it’s specialized subsidiaries and affiliates in areas of
investment banking, life and non-life Insurance, venture capital, asset
management and information Technology, ICICI banks equity shares are listed
on stock exchange of Chennai, Delhi, Kolkata and Vadodara , The Stock
Exchange and The National Stock Exchange of India Ltd. and American
Depositary Receipts (ADRs) are listed on The New York Stock Exchange
(NYSE).

ABOUT PREDENTIAL PLC


Prudential PLC was established in London in 1948, Prudential PLC, through
its businesses in the UK and Europe, the US and Asia, provides retail financial
services to more than 16 million customers, policyholders and unit holders
worldwide. As of Dec. 31, 2005, the company has over US $ 400 billion in fund
management. Prudential has brought to market an integrated range of finance
services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is
leading European life Insurance Company with a vast network of 23 life and
mutual fund operations in twelve countries –

1. China.
2. Hong Kong
3. India.
4. Japan.
5. Korea
6. Malaysia.
7. Philippines.
8. Singapore.
9. Taiwan.
10.Indonesia.
11.U.K.

JOINT VENTURE ICICI PRUDENTIAL


ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier
financial powerhouse, and Prudential PLC, a leading international financial services group
headquartered in the U.K. ICICI prudential was amongst the first private sector insurance
companies to begin operations in Dec. 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA).
ICICI Prudential’s capital base stands at Rs. 1335 Crores with ICICI Bank and Prudential
PLC holding 74% and 26% stake respectively. For the year ended March 31, 2006, the
company garnered Rs. 2,412crore of weighted new boniness premiums and wrote 837,963
policies. The sum assured in force at over Rs. 56,000 crore.
ICICI Prudential is also the only private Life Insurer in India to receive a national Insurer
Financial Strength rating of AAA (Ind.) from Fitch rating. The AAA rating ids the highest
rating, and is a clear assurance of ICICI Prudential’s ability to meet its obligations to
customers at the time of maturity or claims.
For the past five year, ICICI Prudential has retained its position as the No. 1 private Life
Insurer in India, with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
ICICI Prudential has one of the largest distribution networks amongst private Life Insurers
in India with network of over 83,000 advisors, and having commenced operations in 207
cities and towns in India, stretching from Bhuj in west to Guwahati in The east, Jammu in
the North to Trivanprum in the south.

ICICI Prudential was registered on Nov. 24, 2000. with registration No. 105.

Board Of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from financial industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalana Morparia
Mrs. Chanda Kochhar
Mr. H T Hong
Mr. M.P. Modi
Mr. R Narayanan
Mr. Keki Dadiseth
Ms.Shikha Sharma, M.D.
Mr.N.S. Kannan, Executive Director

Management Team

Ms.Shikha Sharma, M.D. & CEO


Mr.N.S. Kannan, Executive Director
Mr. N.S. Kannan, Executive Director
Mr. V Rajagopalan, Chief- Actuary
Mr. Sandeep Batra, Chief Financial Officer & company Secretary
Ms. Anita Pai, Chief - Customer Service and Technology
Mr.Puneet Nanda, Chief - Investments

2.1 PRODUCT LINE


ICICI Prudential is currently having a wide range of products which could meet the
existing demand of the customer this products are the various plans which are flexible in
nature which can be enhanced with up to 6 riders to provide a customized to each policy
holder.

SAVING & WEALTH CREATION SOLUTIONS

• Cash plus is a transparent, feature-packed saving plan that offers 3 levels of


protection as well as liquidity options.
• Save’n’Protect is a traditional endowment savings plan that offers life insurance
along with adequate returns.
• Cash Bak is an anticipated endowment policy ideal for meeting milestone expenses
like a child’s marriage, expenses for child’s higher education or purchase of an asset.
It is available for terms of 15 and 20 years.
• Lifetime Super & lifetime plus are unit –linked plans that offers customers the
flexibility control to customize the policy to meet the changing needs at different life
stages. Each offer 4 fund functions: Preserver, Protector, Balancer and Maxi miser.
• Life link Super is a single premium unit linked insurance plan which combines life
insurance cover with opportunity to stay invested in the stock market.
• Premier Life Gold is a limited premium paying plan specially structured for long-
term wealth creation.
• Invest Shield Life new is a unit linked plan that provides premium guarantee on the
investment premiums and ensures that the customer receives only the benefits of
fund appreciation without any of the risk of depreciation.
• Invest Shield Casbak is a unit linked plan that provides premium guarantee on the
investment premiums along with flexible liquidity operations.
PROTECTION SOLUCTIONS

• Lifeguard is a protection plan, which offers life insurance covers at very low cost.
Itis available in 3 options: Level term assurance, Level term assurance with return of
premium an single premium.
• Home Assure is a mortgage reducing term assurance plan designed specially to help
customers cover home loans in a single and cost effective manner.

CHILD PLANS

• Educational insurance under the Smart Kid brand provides guaranteed educational
benefits to a child along with life insurance cover for parent who purchases the
policy. The designed to provide money at important millstones in the child’s life.
Smart Kid plans are also available in Unit-linked form, both single premium and
regular premium.

RETIRMANT SOLUCTION

• Forever life is a traditional retirement product that offers guaranteed returns for the
first 4 years and then declares bonuses annually.
• Life Super Pension is a single premium unit linked pension plan.

HEALTH SOLUCTION

• Health Assure and Health Assure Plan : Health assure is regular premium plan
which provide long term cover against 6 critical illnesses by providing policyholder
with financial assistance, Irrespective of the actual medical expenses. Health Assure
Plus offers the added advantages of equivalent Life Insurance Cover.
• Cancer Care: is a regular premium plan that pays cash benefits on diagnosis as well
as at different stages in the treatment of various cancer conditions.

GROUP INSURANCE SOLUCTIONS


ICICI Prudential also offers Group Insurance Solution for the companies seeking to
enhance benefits to their employees.
• Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their
statutory gratuity obligation in scientific manner. The plan can also be customized to
structure schemes that can provide benefits beyond the statutory obligations.
• Group Superannuation Plan : ICICI Pru offers both defined contribution (DC)
defined benefits (DB) Superannuation schemes to optimize returns for the members
of the trust and rationalize the cost .members have the potion of choosing from
various annuity options or opting for a partial commutation of the annuity at the
time of retirement.

• Group Immediate Annuities: in addition to the annuities offered to existing


superannuation customers, we offer immediate annuities to superannuation funds not
managed by us.
• Group Term plan: ICICI pru’s flexible group term solution helps provide
affordable cover members of a group .the cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under policy is paid to the
beneficiary nominated by the member on his/her death.

FLEXIBLE RIDER OPTIONS

ICICI pru life offers flexible riders, which can be added to the basic policy at a marginal
cost, depending on the specific needs of the customer.
• Accident of disability benefit; if death occurs as the result of an accident during the
term of the policy, the beneficiary receives an additional amount equal to the rider
sum assured under the policy .if the death occurs while traveling in an authorized
mass transport vehicle. The beneficiary will be entitled to twice the sum assured as
additional benefit.
• Critical illness benefit: protects the insured against financial loss in the event of
9specified critical illnesses, benefits are payable to the insured for medical expenses
prior to death.
• Income Benefit: This rider pays the 10 % of the sum assured to the nominee every
year, till maturity. In the event of the death the life assured. It is available on smart
kid and cash plus
• Waiver of premium: in case of total and permanent disability due to an accident, the
future premiums continue to be paid by the company till the time of maturity. This
rider is available with life time super, life time super pension and cash plus.

Market Shares of Insurance Companies in India

► VISION:

To make ICICI pru the dominant life and pension layer built on trust by world class
people and service.
This we hope to achieve by;
1. Understanding the needs of the customer and offering them superior products and
services.
2. Leveraging technology to service the customer quickly, efficiently and conveniently.
3. Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to policyholders.
4. Providing and enabling environment to faster growth and learning for our employees.
5. Building transparency in all our dealings.
► VALUES
The success of the company is to be achieved in its unflinching commitment to 5 core
values.

1. Integrity.
2. Customer first.
3. Boundary less.
4. Ownership.
5. Passion.
6. Each of the above values described what the company stands for, the qualities of our

people and the way we work.

We aim at unlimited growth coupled with higher quality of customer satisfaction by


providing the quality products and services.

► ACHIVEMENTS:

1. The Aurangabad branch office stood 8th, in terms of its business achievements,

amongst 103 branches of ICICI prudential.


2. Record Created 05 06;

• Total income till date: 5000cr.


• Total Business; 2410cr.
• New Business; 1584cr.
• Commission paid; 284cr.
• Plans issued; 6lac.
• Total plans issued: 1.4million.
• Only in march; 97000.
• No of service transaction: 14lac.
• Communication sends out: 65lac.

Average plan of second sale compared to first sale; Higher by 50 %

ORGANIZATIONAL STRUCTURE OF A BRANCH OFFICE:


Territory Manager

Assistant Sales
Channel Development
Manager
Manager

Senior Agency Manager

Agency Manager

Unit Manager

Assistant Unit
Manager
INDUSTRY PROFILE

3.1 INSURANCE
In today’s era everything is too uncertain. A small accident can put to end of our vehicles,
business, home or perhaps a life too. So apart from saving money and investing into
different ways insurance should from a major part of our financial planning. Insurance is
nothing but, a promise to perform in future. It is a guarantee giving by one to another where
by the former undertakes to pay a sum of money to the latter on the happening of the event
insured against.

3.2 LIFE INSURANCE

Life insurance can be termed as a device or a plan of compensating a financial loss over a
large number of people, which is too heavy to conveniently born by an individual. It seeks
to reduce the financial uncertainties which can arise from an old age or death of person.

3.2.1 EVOLUATION OF LIFE INSURANCE

Basically the insurance was started by the Greeks and Romans, were in case of a death of a
member the cost of burial was contributed by the other members of the community. This
was an early concept of Insurance.
In seventeenth century, Tontine Annuity system came into existence where as associations
of individuals were formed without any consideration of age. A fund was created in which
each member contributed equal sum of money this fund was invested and at the end of each
year the obtained interest was equally divided among the survived. The person who
survived to the last received the interest as well as the principle amount.
The first insurance company was formed in 1759 in Philidelphi, North America. Since then
over the past three centuries numbers of insurance companies are formed. And today
insurance is the fastest growing industry in the service sector because people have accepted
insurance as a protection coupled with investment.

3.2.2 INSURANCE IN INDIA


In India the insurance business started in the beginning of the 19th century.
Marine insurance was the earliest form of insurance that was transacted in India.
Marine insurance was followed fire insurance. Many foreign companies
established their branches in India, looking at the business prospects. In 1907,
the India mercantile insurance company was established as the first company of
India origin. The nationalization of insurance business was a major milestone in
the development of insurance in India. Life insurance business was nationalized
in 1956 by taking over 245 private insurance businesses. The General Insurance
Corporation (GIC) was established in 1972 by taking over the business of 107
insurers.

3.2.3 INDUSTRY LIFE CYCLE STAGE


Presently the life insurance industry is in the growth stage of its life cycle because of rise in
income of people better standards of living coupled with rise in uncertainties. Life is at risk
therefore people are likely to go for life insurance.

1.3.1 OTHER COMPETITOR IN LIFE INSURANCE:

1. Bajaj Allianz life insurance company Ltd.


2. Birla sunlife insurance Co. Ltd
3. HDFC standard life insurance Co, Ltd.
4. ING Vysya life insurance Co. pvt. Ltd
5. life insurance corporation of India
6. MAX New York life insurance co Ltd
7. MET life India insurance co pvt Ltd
8. OM Kotak Mahindra Life insurance Ltd.
9. SBI life insurance co Ltd,
10.TATA AIG life insurance co. Ltd
11.AMP sunmar life insurance Ltd
12.AVIVA life insurance co .India Pvt .Ltd
13.Sahara India life insurance co. Ltd

3.3.2 Market Share of the Competitors:


On the basis of first year premium of life insurance for year ended March 2008.
(PROVISIONAL)

Sr. Insurer Market share based on


No.
Premium Policy
1 TATA AIG 1.18 0.87
M KOTAK2MAHINDROM KOTAK MAHINDRA 1.48 0.24
3 BIRLA SUNLINE 2.45 0.76
4 MAX NEW YORK 0.89 0.83
5 ING VYSTA 1.11 0.42
6 HDFC STANDERD 1.92 0.79
7 MET LIFE 0.22 0.18
8 BAJAJ ALLIANZ 3.39 1.10
9 ICICI PRUDENTIAL 6.25 2.34
10 SBI 1.91 0.49
11 AVIVA 0.79 0.32
12 AMP SANMAR 0.36 0.13
13 AHARA LIFE 0.01 0.04
14 LIC 78.07 91.50

GRAND TOTAL 100.0 100.0

3.4 IRDA
IRDA refers to Insurance Regulatory Development Authority. It is formed to
regulate and develop the insurance sector. It keeps check on the activities of the
various Life Insurance companies. All these companies are bound to follow the
rules and regulation laid down by IRDA.

3.4.1. MISSION:

To protect the interests of the policy holders, to regulate to promote and ensure
orderly growth of the insurance industry and for matters connected there with or
incidental there to.
3.4.2 DUTIES, POWERS & FUNCTIONS OF IRDA
Section 14 of IRDA act, 1999 lays down the duties, powers and functions of
IRDA.
1) Subject to the provisions to this act and any other law for the time being
in force, the authority shall have the duty to regulate,
Promote and ensure orderly growth of the insurance business and re- insurance
business.
2) Without prejudice to the generality of the provisions contained in the sub-
section (i) The power and function of the authority shall include =
a. Issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration.
b. Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable
interests, settlement of insurance claim, surrender value of policy
and other terms and conditions of contracts of insurance;
c. Specifying requisite qualifications ,code of conduct and practical
training for intermediary of insurance intermediaries and agents;
d. Specifying the code of conduct for surveyors and loss assessors;
e. Promoting efficiency the conduct of insurance business;
f. Promoting and regulating professional organization connected with
the insurance and re-insurance business;
g. Levying fees and other charges for carrying out the purpose of this
act;
h. Calling for information form, undertaking inspection of, conducting
enquiries and investigations including audit of the insurer,
intermediaries, insurance intermediaries and other organizations
connected with the insurance business;
i. Control and regulations of the rates ,advantages, terms and
conditions the may be offered by insurer in respect of general
insurance business not so control and regulated by the tariff advisory
committee under section 64U of the insurance act,1938 (4of1938);
j. Specifying the form and manner in which books of accounts shall be
maintained and statement of account shall be rendered by insurers
and other insurance intermediaries;
k. Regulating investment of funds by insurance companies;
l. Regulating maintenance of margin of solvency;
m.Adjudication of disputed between insures and intermediaries of
insurance intermediaries;
n. Supervising the functioning of the tariff advisory committee;
o. Specifying the percentage of the premium income of the insurer to
finance schemes for promoting and regulating professional
organizations referred to in clause(f);
p. Specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural or
social sector; and
q. Exercising such other powers as may be prescribed.
3.4.3 QUALIFCTION TO BE AN AGENT

IRDA has laid down qualification to be an agent for any of the insurance
company. This is applicable to all insurance companies. To become an agent
(financial advisor) a person should possess following qualifications; If the. In
other places the applicant should satisfy the minimum educational qualification
of 10th std. or equivalent.
1. He has to complete his 100hrs of practical training in Life Insurance
business, that to from approved institute, where the applicant is seeking
the license for the first to work as an agent.
2. He has to pass the pre – requisite test which is conducted by the insurance
institute of India or any other approved body.
3. He required knowledge of solicit and procure insurance business.
4. He should be capable of providing necessary services to the policy holder.
5. Applicant is living in a resident where the population is 5.000 or above as
per the last census in that case. He must have qualified his 10+2 or
equivalent.
RESEARCH
METHODOLOGY
4.1 MARKETING RESEARCH

DEFINATION

According to Philip Kotler: “Marketing research is systematic problem analysis


model building and fact finding for the purposes of decision making of goods
and service”

According to Green and Tull:-“Marketing research is systematic and objective


search for analysis of information relevant to the Identification and solution of
any problem in the field of marketing.”

According to American Marketing Association: - “Marketing research is


systematic gathering, recording and analysis of data about and service.”
MEANING

a. Marketing research is systematic activity carried out in pursuit of truth


b. It is a purposive investigation.
c. It is the application of scientific method to add the present pool
knowledge.
d. It is a way of finding new ways of looking at familiar things in order to
explore ways of changing it.
e. It is activity that extends correct or verifies knowledge.
1.2 OBJECTIVES OF THE PRODUCT

1. To approach the people for becoming a financial advisor.


2. To study about the potential customer in the market.
3. To hire the new financial advisor for the company so that the business of the
company should grow faster.
4. To study about the marketing strategy of company.

1.3 GEOGRAPHICAL SCOPE:

I choose Aurangabad city for my project work-


In Aurangabad city following areas were covered;

• Aurangpura.

• Cannought place.

• NiralaBazar.

• Jyoti Nagar.

• Osmanpura.

• Cidco.

4.4. TIME SCOPE: 45 DAYS


4.5 SCOPE OF THE PROJECT:

The scope of project was all about recruiting the financial advisors for the company on
commission basis. I was suppose to generate the leads then meet those people, telling them
the concept of financial advisor and convincing them to join the company and finally get
the undertaking forms filled and thus closing the leads.

4.6 RANDOM SAMPLING

In random sampling methods, the sample units are selected at random. Random
sampling follows a precisely specified system where there is no scope for biased selection
of sample unit’s take place by sheer chance of being selected.

SAMPLE PLAN
This is called for three decisions:-

1. Sample unit:-who is to be surveyed?


The target population that is defined.
ICICI Prudential was surveyed in this project.

2. Sample size: - the refers to the number of items that is to be selected from the universe
to constitute a sample-
100 people

3. Sample Procedure: - How the respondent be chosen.


CENSUS SURVEY: - Data is collected from each and every unit in the population; it is
termed as census survey.
To overall census population of questionnaire survey hence proper sampling design is
done so that particular sample represents that census.

UNIVERSE:- Universe sampling accounts for no. of sample size upon which project data
has been collected here to gather that data my sample size was 100 which is universe
sample size.

4.7 DATA COLLECTION INSTRUMENTS:

1. Questionnaires
2. Personal Interviews.

4.8 DESIGNING THE QUESTIONARE:

While designing the Questionnaires we need to keep certain things in mind.

• Simplicity: the Questionnaire should very simple to understand that is the language
used should be easy and understandable. So that the person who is about to fill it can
give appropriate answers to the concern questions.
• Briefness: The Questionnaires should very brief that is possibly low number of
questions should be asked, so person will not fill bored.
• Clearness: Questions should be cleared and be possibly open ended to save time of
the people filling them.
4.9 PERSONAL INTERVIEWS

Personal interview is mostly commonly used method of data collection. Two purposive
communications between interviewer (researcher) and the respondent (subject) aimed at
obtaining and recording information pertinent to the subject matter of study. The
interviewer resents oral, verbal and written stimuli and receives oral resonances.
Interview may be used as the main method of data collection, or may be used as a
supplement to observation experiments or other technique.
People are more willing to speak rather than write. It also provides an opportunity to note
the body language of the respondent this is called as Personal Interview.

4.10 FIED WORK:


I visited various places like Cannought place, Nirala Bazar, Osmanpura, Jyoti Nagar, etc.
an meet the shop keepers, housewives, student etc. I gave them information about the
concept. I got the questionnaire forms filled the people. People who were interested in
becoming financial advisor were supposed to fill the form and pay Rs. 1,000/- as their
training fees. My job was getting these people motivating them and gets them to my unit
manager.

4.11 PROBLEMS IN DATA COLLECTION

1. People hesitated in giving personal information


2. People don’t listen and pay attention to the things they are not interested in
3. People don’t like to fill the questionnaire because of the mind set against the surveys.
LIMITATIONS

LIMITATIONS
1. Since the duration of the project training was less it was difficult to study
following aspects in depth.

a. To understand the policy of company


b. To understand the work properly.
c. To learn about the requirement/qualifications of the financial
advisor.
d. To generate the leads.

2. People’s mindset about becoming a financial advisor for the company is


very narrow, usually they hesitate in giving their personal
information & expressing their views etc.
3. People are not ready to undergo the practical training of 100Hrs.
DATA ANALYSIS

5.1 ANALYSIS OF THE QUESTIONNAIRE:


The Questionnaire was designed to obtain personal information of the person as well as
their interest in becoming a financial advisor.

1. Do you have insurance policy of any of the company?

a) LIC [ ] b) ICICI [ ] c) HDFC [ ] e) others f) No policy [ ]

This question was asked to person I order to know whether he have some knowledge about
the insurance product. Following was outcome observed after asking this question 200
people.

TABLE 5.1

COMPANY FREQUENCY PERCENTAGE

LIC 80 80 %
ICICI 30 30 %
BAJAJ 20 20 %
HDFC 15 15 %
OHERS 5 5%
NO POLICY 10 10

TOTAL 100 100 %

Graphical Representation:
Chart 5.1

80 80
70
60
50
40
30
30
20 20
15
10
10 5
0
LIC ICICI BAJAJ HDFC OHER NO POLICY

Observation: It is being observed that 80 % of the sample populations are having their
insurance policy in LIC as compared to private life insurance companies.

2.1) Are you an agent of any of the insurance company?

a) Yes [ ] b) No [ ]
This question asked to make whether the targeted person can become our prospect or not.
TABLE 5.2

RESPONCE FREQUENCY PERCENATAGE

Yes 20 20%

No 80 80%

TOTAL 100 100%

Graphical Representation:

Chart 5.2

20%

Yes
No

80%

Observation: this shows very low sample population is aware of this business of an
insurance agent and a very few of them are prepared to be an insurance agent.
ii) If ‘Yes’ which of following company you are working for?
a)LIC [ ] b) ICICI [ ] c) BAJAJ [ ] d) HDFC [ ] e) OTHERS

The above question helped in getting the information about the brand awareness
of the different insurance companies present in the market and also people’s
mindset about the companies.
Table 5.3

COMPANY FREQUENCY PERCENTAGE


LIC 12 60 %
ICICI 4 20 %
BAJAJ 2 10 %
HDFC 2 10 %
OHERS 0 0%
TOTAL 20 100 %

Graphical Representation:
Chart 5.3

10% 0%
10%
LIC
ICICI
BAJAJ
HDFC
20% 60% OTHERS

Observation: The graph indicates that large portion i.e. 60% is working for LIC
and at second number ICICI PRUDENTIAL with 20% is there as BAJAJ and
HDFC (with 10%) are having low number of people working for them.
3) Do you have any sales related experience?

a) Yes [ ] b) No [ ]

This question is asked to know about the sales related experience of the person
so that his communication skills and knowledge about selling anything can be
judged.
Table 5.4

RESPONCE FREQUENCY PER CENT

Yes 60 60 %

No 40 40 %

TOTAL 100 100 %

Graphical Representation:
Chart 5.4

40%

Yes
No
60%

Observation: It is observed that nearby 40 % of the people I met had sales


related experience as most of them are self employed and having their own
shops. While 60 % of the population don’t have any such experience.
4) Are you interested in being / getting more information about financial advisor?
a) Yes [ ] b) No [ ]

This question is posed to the customer to get information whether he id


interested in knowing about the concept of Financial Advisor and doing
business for the company or not.
Table 5.5

RESPONCE FREQUENCY PER CENT


Yes 30 30 %
No 70 70 %
TOTAL 100 100 %

Graphical Representation:
Chart 5.5

30%

Yes
No

70%

Observation: It is being observed that 30% of the total sample population said
that they would like to know about the company and it’s Advisor.
5. If ‘Yes’ how would you like to be contacted through?

a) Personal Visit [ ] b) Telephone [ ]


This question helps in determining the future step to be undertaken to make the customer
know about the concept and convincing him to join the company. The outcome for this
question was:-
Table 5.6

RESPONCE FREQUENCY PER CENT


Personal Visit 27 90 %
Telephone 3 10 %
TOTAL 100 100 %

Graphical Representation:

Chart 5.6

10%

Personal Visit
Telephone

90%

Observation: It is noticed that 90% of people do believe in face to face


interaction because they feel it id effective and it helps them in resolving their
doubts on the spot.
OTHERS:-
1. Educational Qualification:

a) 10th Passed [ ] b) 10+12 [ ] d) Post Graduation [ ]

This question helps in knowing the level of knowledge and understanding of the person.
TABLE 5.7

PARTICULAR FREQUENCY PER CENT

10th Passed 5 5%

10+2 Passed 35 35 %

Graduation 50 50%

Post Graduation 10 10 %

TOTAL 100 100 %

Graphical Representation:
Chart 5.7

35%
10thPassed
10+2 Passed
Graduation
Post Graduate
50%
5%
10%

Observation: It was observed that hardly 5% of the selected population even


self-employed was 10th Passed, while others are well educated.
2. Current Occupation:

a) self employed [ ] b) Salaried [ ] c) Student [ ] d ) House wife [ ]

The objective behind this question is to determine the interest of the person in
doing the business for the company and if is joins company how much time he
will be able to give for the business. The come was:-
Table 5.8

PARTICULAR FREQUENCY PER CENT


Self employed 50 50 %
Salaried 5 5 %

Student 20 20 %
House wife 25 25 %
TOTAL 100 100 %

Graphical Representation:
Chart 5.8

25%

Self emloye
Salaried
Student
50% House Wife
20%

5%

Observation: Nearly 50 % people are self-employed as the areas covered mostly


market place. While only 5 % people I met are the salaried person, 20 % are
student and 25 % are House Wives.

3. Rejections:
Even after people are willing to join the company and do certain rejections come due to
different reasons but the main reason was time constraint as people are too busy that they
can not afford time for 100 hrs training and to certain extend money is a problem especially
for the students who wanted to join the company as a financial advisor.
a) Rejection due to time constraint

89 % rejections were there due to time constraint. People who are self employed are
busy enough with their work. So they do not have sufficient time to spare for training
process. Even the housewives and the jobbers are busy with their work so they find it
difficult to manage to undergo the training.

b) Rejection due to money constraint:

To register for being a Financial advisor applicants need to pay a sum of Rs.1000/-
some people find it difficult to pay at single time. Also people have a mindset that if
they fail in getting the customers these entire sums have to paid will be waste. Nearly
11 % of the rejections are due to money constraint.

Table 5.9:

PARTICULAR FREQUNCY PERCENTAGE


Rejection due to time 24 88.88%
constraint
Rejection due to money 3 11.11%
constraint
Total 27 100%

Graphical Reprentiontation:

Chart 5.9
89%

Rejection due to time


Rejection due to money

11%

Observation: It is observed that 89 % of people face time as a constraint in joining the


company and undergoing the practical training. While only 11% of the people find money
as a constraint in joining the company and training.
FINDINGS
&
SUGGESTIONS

FINDINGS & SUGGESTIONS

1. To register for being Financial advisor applicants need to pay a sum of


Rs.1000/- some people find it difficult to pay at single time. Especially,
the student who are non-residents in Aurangabad. Therefore ICICI
Prudential can have installment facility for such people so that they can
pay in lots.
2. After registration the candidates are provided with training of 100Hrs.
they can opt for either classroom training or Internet training as per their
convenience. The company sponsors the classrooms training. Whereas.
Foe Internet Training candidate need to pay themselves. Here the
company can sponsor these students also to create a favorable image in
the minds of candidate undergoing the Internet training.
3. The company can grab more and more customers. If it has image of first
choice employer in the mind of Financial Advisor. It can create such
image by providing additional facilities and assistance to Financial
Advisor.
4. The company can go for outsourcing its business, to take proper care of
its exiting customer and obtain new prospect to expand its business.
CONCLUSION

CONCLUSION

At ICICI prudential Life Insurance Company Ltd. Aurangabad. I observed very


systematic and professional approach toward marketing. People are engaged in
compulsory task, relates themselves to reach other systematic establishment &
accomplishment of the Marketing Process. After studying various theoretical
approach of company. I have come to a conclusion that ICICI Prudential is a
profit making company and gradually the demand of the product is also
increasing.

The main areas of company are:-

1. Well defined objective.


2. Well organized and co-ordinate group of people.
3. Clear & well defined policies & responsibility.
4. An effective system of the company.
BIBLIOGRAPHY

BIBLIOGRAPHY

Books:
1. Service Marketing- Valeri A. Zeithaml & Mary Bitner 2nd edition –

TATA McGraw Hill


2. Service Marketing- P.K. Sinha & S.C. Sahoo- 1st edition- Himalaya

Publication House.
3. Service Marketing-K. Rama Mohan Rao- 1st edition-Indian Print-

Peatson Education
4. Channel Management & retail Marketing- Meenal Dhotre - 1st edition-

Himalaya Publication House.

References:-

Companies printed Material.

Websites:

1. www.irdaindia.org

2. www.iciciprulife.com
ANNEXURE

QUESTIONNARIES

ICICI PRUDENTIAL

Name:

Age:

Residential Address:
City:

Contract No:

Date:

1. Do you have insurance policy of any of the company?

b) LIC [ ] b) ICICI [ ] c) HDFC [ ] e) others f) No policy [ ]

2.i)Are you an agent of any of the insurance company?

a) Yes [ ] b) No [ ]

ii) If ‘Yes’ which of following company you are working for?

a)LIC [ ] b) ICICI [ ] c) BAJAJ [ ] d) HDFC [ ] e) OTHERS

3) Do you have any sales related experience?

a) Yes [ ] b) No [ ]

4) Are you interested in being / getting more information about financial advisor?

a) Yes [ ] b) No [ ]

5. If ‘Yes’ how would you like to be contacted through ?

a) Personal Visit [ ] b) Telephone [ ]


OTHERS:-

1. Educational Qualification:

a) 10th Passed [ ] b) 10+12 [ ] d) Post Graduation [ ]

2.Current Occupation:

c) self employed [ ] b) Salaried [ ] c) Student [ ] d ) House wife [ ]