PROJECT REPORT ON SALES FORCE MANAGEMENT Techniques Adopted By
International Institute For Special Education OFF RING ROAD VIA KALYANPUR, LUCKNOW UNDER SUPERVISION OF: Mr. Ashish Bhatnagar PGDM Faculty IISE, Lucknow SUBMITED BY: Rajib Lochon Gogoi PGDM-2nd Year Enroll No-946
SUBJECT- Sales & Supply Chain Management ACKNOWLEDGEMENT
I take this opportunity to sincerely thank Prof. Ashish Bhatnagar Faculty, IISE Lucknow who introduced me to the intriguing subject of Sales & Distribution Management and sharing his encyclopedic knowledge on the subject, which is going to be instrumental in shaping my career in the area of Sales & Distribution Management. Then I like to thank Mr. Arjun Sharma (sales Manager) who guided me and told me the whole process of the concerned company. He briefed me relevant and concerned information regarding my project. He told me about the success and the difficulties faced by the company. I am also thankful to Mr. Sunny Arora (assistant sales manager) who gave me his joining letter & salary plan which help me a lot.
(Rajib Lochon Gogoi)
Companies are continuously trying to fulfill market need at very fast pace. This 20th century requirement of reaching the market as fast as you can with optimum efficiently lead to the rapid change of Sales & Distribution Management. LUCKNOW
. when and how the customers want them.3
BACKGROUND: The forces of globalization and technological change have opened up new Opportunities as well as change to the industries. The ability to respond to new customer needs and seize market opportunities as they arise at the right time. Today the economy is changing its pace shifting economic needs. institutions and individual customers. to serve the needs of the commercial enterprise. Objectives
_________________________________________________________IISE. Here in this project I try to unveil the Sales force management technique used by AVIVA LIFE INSURANCE with all its aspect. They highly emphasizes on targeting the market by delivering the right thing at the right time & of course at the right time. without compromising on the profitability of the organization is critical for the success of any organization. The business environment has changed more in the last five years than it did in the previous five decades. Winning in today’s business climate requires more than just providing high-quality. Problem statement: To identify the various Sales Force & supply chain Management Process used in AVIVA LIFE INSURANCE with the following objective. government organization. low-cost products to customers.
Major Findings: The AVIVA LIFE INSURANCE has a very efficient sales force with a very flexible HR polices. Selection & Training process of the sales team. The researcher try to achieve the objectives through self study. interviews of industry people. in Lucknow • What criterion is adopted in determining the size of the sales force? • Study the Recruitment.4
• Identify an organization with its sales unit. PREFACE
_________________________________________________________IISE. all the aspect of the research is thoroughly covered with appropriate technical support. preferably. internet etc. • What is the procedure of performance evaluation? • How is the post-production inventory managed? • Which different stages (Transportation and Warehouse) are involved in the movement of finished product from the manufacturer to the customer? • Role of IT in managing the Sales & Supply Chain activities Research methodology: The proposed research is exploratory & research based. LUCKNOW
. • What is the structure of the Sales Force Organization? • What are the sales quotas of different sales units and how are they fixed? • Study the various components of the compensation plan.
Theoretical knowledge is one thing. LUCKNOW
. Theories and ideas are successful only when they are practically implemented. The firm adopts various strategies to enhance the performance of the employees and to bring out the best out of them. I will try to show how sales force management techniques are used successfully by an Insurance giant which has faced various competitions.
TABLE OF CONTENTS:
_________________________________________________________IISE. I have undertaken this project. and the practical application of the knowledge is other thing. The report will see the extent to which these techniques were adopted and there result. named ‘Aviva’. The main onus will be on the sales force management technique adopted by this manufacturing firm. Through this I will try to reveal and analyze the importance of sales force management and its implementation at the corporate level. Owing to this importance vested to practicality.
selection and training g) job appraisal techniques 8) CORPORATE HIERARCHY 9) CONCLUSION 10) 11) BIBLIOGRAPHY ANNXURE
1) ABOUT THE COMPANY 2) a) VISION b) PRINCIPLE c) MISSION 3) RESEARCH METHODOLOGY 4) RESEARCH OBJECTIVE 5) SCOPE 6) LIMITATIONS 7) INFORMATION ANALYSIS a) sales team b) compensation plan c) performance evaluation d) incentive and package e) role of it in managing sales and SCM f) recruitment.
About the company : Aviva is UK’s largest and the world’s fifth largest insurance Group. LUCKNOW
. Jammu & Kashmir. Aviva has a 40 million-customer base worldwide. When Aviva entered the market. At the time of nationalization it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. In India. and largest Group of companies. creating a unique
_________________________________________________________IISE. West Bengal. Currently. Aviva has initiated an innovative and differentiated sales approach to the business. Bihar. Canara Bank. In India. Dabur is the country's leading producer of traditional healthcare products. one of India's oldest.000 Financial Planning Advisers (FPAs). A professionally managed company. and has leveraged its global expertise in Banc assurance successfully in India. Aviva has a joint venture with Dabur. Aviva has a long history dating back to 1834. Aviva was also the first foreign insurance company in India to set up its representative office in 1995. Through the “Financial Health Check” (FHC) Aviva’s sales force has been able to establish its credibility in the market. It has more than £364 billion of assets under management. Aviva pioneered the concept of Banc assurance in India. American Express Bank. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. The FHC is a free service administered by the FPAs for a need-based analysis of the customer’s long-term savings and insurance needs. Andhra Pradesh and Maharashtra and regional Banks. With a history dating back to 1696. and Punjab & Sind Bank. Centurion Bank of Punjab. Rajasthan. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva has Banc assurance tie-ups with ABN Amro Bank. With a strong sales force of over 28. most companies were offering traditional life products. Aviva started by offering the more modern Unit Linked and Unitised With Profit products to the customers. Co-operative Banks in Gujarat. The Lakshmi Vilas Bank Ltd.
transparency and value for money. EasyLife Plus). LUCKNOW
. child policy (Young Achiever) single premium (LifeBond and LifeBond Plus). Pension (PensionPlus). endowment (LifeSaver. fixed term protection plan (Freedom LifePlan) and a tax efficient investment plan with limited premium payment term (LifeBond5). Through its Bancassurance partner locations. Aviva’s products have been designed in a manner to provide customers flexibility. Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. indexation and partial withdrawals. Term (LifeShield).8
differentiation. It has been among the first companies to introduce the more modern Unit Linked products in the market. Aviva products are available in close to 500 towns and cities across India. Aviva products are modern and contemporary unitised products that offer unique customer benefits like flexibility to choose cover levels. Through its association with Basix (a micro financial institution) and other NGOs. Its products include: whole life (LifeLong). it has been able to reach the weaker sections of the society and provide life insurance to them
_________________________________________________________IISE. Aviva has 156 Branches in India (including rural branches) supporting its distribution network.
the Aviva group is a 26% share holder and the Dabur group holds 74% shares in the joint venture. At present in Aviva Life Insurance India. In 1995 Aviva was the first foreign insurance company to start its representative office in India.9
AVIVA LIFE INSURANCE IN INDIA: Aviva Life Insurance India is a private insurance company formed from collaboration between the Aviva insurance group of UK and the Dabur group. American Express Bank. Jammu & Kashmir. The history of Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest foreign insurance group in terms of the compensation paid by the Indian Government. Following the IRDA guidelines. transparency and value for money.000 Financial Planning Advisers (FPAs) and the Financial Health Check (FHC) programme it has been successful in setting up its position in the Indian market.linked
. Centurion Bank of Punjab. one of India's oldest and top producers of traditional health care products. Programme highlights of today •
Aviva Life Insurance India has 40 Branches in India. This has helped to distribute Aviva products in nearly 378 towns and cities across India. West Bengal. The Lakshmi Vilas Bank Ltd. today stands as one of the leading provider of life and pension products to Europe and other parts of the world. Aviva insurance group in UK with a history dating back to 1696. these units . 11 Co-operative Banks in Gujarat. including rural branches supporting its distribution network. and Punjab & Sind Bank. With over 27. Aviva Life Insurance India offers more modern Unit Linked and Unitized with Profit money products to the customers. Rajasthan. Aviva Life Insurance India initiated the concept of Bancassurance in India and at present it has Bancassurance tie-ups with ABN Amro Bank. Bihar. with effect from 1 July 2006. Canara Bank. Aviva's products are meant to provide customers flexibility. Andhra Pradesh and Maharashtra and one regional Bank in Sikkim. The FHC is a free service administered by the FPAs which analyses the customer's long-term savings and insurance needs and depending on the life stage and earnings of the customer it selects the proper insurance product for them.
The products of Aviva insurance group of India are: o LifeLong o LifeSaver or EasyLife Plus o Young Achiever o LifeBond and LifeBond Plus o PensionPlus o LifeShield o Freedom LifePlan o LifeBond5
The fund management operations of Aviva Life Insurance India is controlled from Mumbai and the fund options includes Unitized With-Profits Fund and four Unit Linked funds: Protector Fund . Growth Fund . equities in the range of 0-85% and money market and cash in the range of 0-20%. equities in the range of 0-20% and money market and cash in the range of 0-20%. equities in the range of 0-45% and money market and cash in the range of 0-10%. equities in the range of 0-20% and money market and cash in the range of 0-20%.The fund comprises of debt securities in the range of 60-100%.
This fund provides investment security to the capital of the customers. thus.The fund will comprise of debt securities in the range of 0-50%.The fund comprises of debt securities in the range of 50-100%. Aviva Life Insurance India have been able to reach out to those underprivileged who had no access to insurances till day. by combining protection and long term savings the customers can safeguard and provide life products for their family with their changing need
_________________________________________________________IISE. Secure Fund .10
products have been modified. In Aviva Life Insurance India. Through their association with Basix (a micro financial institution) and other NGOs. LUCKNOW
.The fund comprises of debt securities in the range of 50-90%. Balanced Fund .
Customer centricity. shareholders. AVIVA BRAND AMBRASADDAR: Sachine Tendulkar--
_________________________________________________________IISE. partners & employees at all times. These lines not only define the way we live and work but also serve as a reminder to deliver the best to our customers. colleagues.
Embedded in this vision are the core values of Integrity.11
Vision: “Where exceeding expectations through innovative solutions is ‘our’ way of life” This is the compelling vision that Aviva India has created through the active contribution of its employees. Innovation and Empowered team that we have collectively defined and committed to working towards. LUCKNOW
. Passion for winning.
Primary data are collected through survey and questioned asked from the sales and middle management people. Primary data I found visiting the branch office of the company and by meeting the company persons. They gave us an opportunity to have an insight in the working culture of the company. Secondary data is collected through internet and word of mouths. To gather relevant information. On the basis of these data collected.12
RESEARCH METHODOLOGY This project work is based on the sales and distribution of AVIVA. I have used random sampling for collection of data. Primary data take time to be collected and compiled and it is expensive too but it delivers authentic information as they are the first hand information. Secondary data is less time consuming. LUCKNOW
. The information gathered through secondary data is not very authentic but it gives some relevant and important information about the topic.
_________________________________________________________IISE. I used both primary and secondary data. I am able to complete my project work with some fruitful information.
For efficient and skilled management. this project helped me a lot to understand these concepts and their practical implementations and I am sure that it will help me in my coming future. LUCKNOW
. And being a manager we are able to optimally use our sales force. it is very important for a manager to have thorough knowledge about the concepts related to sales and distribution management. SECONDARY OBJECTIVE To have knowledge of theories and practices of Sales and distribution management and their practical implementation in the industries for a better understanding of related concepts. Being a management student.
_________________________________________________________IISE. It is also to get an insight on the whole hierarchical structure of the organization and the reporting relationship adopted. SCOPE This project is based on sales and distribution management strategies adopted by AVIVA Life insurance. In today’s era an efficient distribution channel and a competent and well trained sales force is very important to have an edge over the competitors and for long time profitability.13
RESEARCH OBJECTIVE Primary objective To conduct a research work on sales and distribution management of AVIVA and to find out the strategies used by AVIVA for sales management on the basis of information gathered.
These offices are given there respective target which they are supposed to achieve in their target segment.e. LUCKNOW
. Aviva Company has its corporate or registered office in almost all capitals of India. who further distribute the targets to his juniors. The sales person has to submit a daily sales report (DSR) to the concerned office. It is the responsibility vested in the hands of the head of that branch. Financial Planning Adviser: (FPA) There is no fixed incentive plan for Commission plan.14
ABOUT SALES TEAM: Aviva has a very lively sales team which deals with both business as well as retail clients. The sales team is required to report directly to their immediate superior and is individually responsible for the performance. group insurance or insurance of the employees of a organisation get some more incentive than those who are in retail sales. Aviva has many offices in Lucknow. This incentive is only given to sales officer and assistant sales officer and is not given as they climb up the hierarchy due to promotion. Besides new. The main branch’s are in Hazaratganz & Aliganz. COMPENSATION PLAN Sales executives have a choice of commission based or Salary compensation plan according to their choice. Most of the sales force includes professionally qualified individuals. The sales people who are in corporate sales i.
PERFORMANCE EVALUATION Company has a highly organized assessment centre whose job is to look into the working of the employees and see to it where a corrective action is to be taken. Assistant Sales Manager: (ASM) They have a Salary commission plan where they get fixed salary & incentive for each sales of polices by FPA working under them. Money is deducted from there salary account if they can’t able to achieved the target. They have a monthly target which they have to fulfill. then he gets a fixed salary & a fixed commission for each sale of polices. The feedback of the seniors is taken to know the employees better. Unable to reach the target continuously for 3 months will effect there salary. LUCKNOW
. Only because of its very effective job evaluation and appraisal technique the company Aviva is able to survive & able to do a sound business in the highly competitive insurance market of India. They got bonus and other incentive according to company pay role. The parameters like target met. Others: (sales manager. But if they are able to do it.15
If a FPA choose salary commission plan. branch manager etc) All employees that are above then ASM have a fixed salary plan. attitude and commitment etc. Bonus is given to all the employees and depends on the salary one is getting. there salary is revived. code of conduct. are taken in consideration before making any decision. exceptional performance.
INCENTIVE & PACKAGE: Sales executives get a fixed salary by the company and their incentive depends on business generated by them. They make their Sales force fully automated with proper information supply. This incentive is only given to sales officer and asst. It depends on the type and number of products sold. This software is purchased from Infosys India. They first generate lead through different channels and supply all the relevant information about the client to the concerned FPA. LUCKNOW
. ROLE OF IT IN MANAGING SALES AND SCM The company has introduced SFA (Sales Force Automation) in there sales force management system. A client can access his policy through internet from any part of the world with the unique client ID provided to him. sales officer and is not given as we climb up the hierarchy. Inhouse developed data-warehousing software on ASP and SQL platform displays all the client information in a single mouse click.
_________________________________________________________IISE. Bonus is given to all the employees and depends on the salary one is getting. Company has adopted a policy where bonus is paid not by cash but by shares of AVIVA. They used internet to send up-to-date messages to FPA regarding the client at any moment. Aviva uses ERP software in there head office. The sales people who are in corporate sales get some more incentive than those who are in retail sales. There is no fixed incentive plan. They also have a plan for group insurance. where they get all DSR in a single mouse click.
So. The individual policies are assigned a 14 digit unique ID. But the minimum criterion for FPA is IRDA qualification. They daily enter sales report with proper format in the server. Aviva have their call centers to solve customer enquiry. Continuous training is conducted to educate them about new products. They also go for campus placement in leading business schools. A zero communication gap response gives Aviva a competitive edge then other rivals. There is a full fledged HR team which is continuously trying to transform the whole selection process. Selection is done through a written and interview and work experience in the concerned sector is given due importance. Aviva also have training school to train the sales people about their products. sales officer. This 14 digit ID represent the code number of the branch. Clients can use 24*7 helpline to solve their problem. RECRUITMENT. LUCKNOW
. & TRAINING: Aviva recruits through advertisement in news paper for the posts of asst. They have internet helpline to answer the FAQ’s. SELECTION. They arrange classes to train sales people so that they are able to qualify the IRDA examination.17
They make there data warehousing fully automated. So this facility gives client freedom from regional barrier. the zonal office number & the client policy number. clients from Assam can inquiry about his policy in Mumbai.
_________________________________________________________IISE. This gives them freedom from lendy manual entry of policies.
Company has a highly organized assessment centre whose job is to look into the working of the employees and see to it where a corrective action is to be taken. attitude and commitment etc. The parameters like target met. Only because of its very effective job evaluation and appraisal technique the company AVIVA LIFE INSURANCE was ranked among the top 5 places. The feedbacks of the seniors are taken to know the employees better.
JOB APPRAISAL TECHNNIQUES: The company has a solely dedicated HR system which is highly inclined to the proper development of the employees.IN ANNXURE I HAVE INCLUDED ALL THE MATERIALS REGARDING THE SALARY STRUCTURE IN A COMPLIED FORM OF A AVIVA LIFE INSURANCE EMPLOYEE. These assessment centers see the whole promotional activities and postings of the employees. are taken in consideration before making any decision. code of conduct. LUCKNOW
. exceptional performance.
SENIOR VICE PRECIDENT
SENIOR VICE PRECIDENT
SENIOR VICE PRECIDENT
ASSOCIATE VICE PRESEDENT. LUCKNOW
. (AVP) AVP
AVP AVP AVP AVP
REGIONAL MANAGER Z.M BRANCH MANAGER BM B M
ASSISTANT TELE SALES ASSISTANT SALES ASSISTANT OPERATION
_________________________________________________________IISE.19 SALES FORCE HIERARCHY
SENIOR VICE PRECIDENT (V.M ZONAL MANAGER (CONTROLLING 3-4 BRANCHES) Z.
.Sales force management of Aviva Life
_________________________________________________________IISE. Aviva has been successful in providing immediate support and service to its customers through properly understanding their need and fulfilling those need though customized products.21
CONCLUSION: The organization is very successful in the rightful implementation of the sales force management techniques. and sales force management has created a name for itself which is now known for quality and reliability and there jingle “KAL PAR CONTROL” take the mouth of every Indian. They are also pro-active in predict customer’s demand and due to very effective sales network are able to meet the demand at the right time. LUCKNOW
. The company due to its very effective supply chain. research and development.
. Sunny Arora Assistant sales Manager AVIVA LIFE INSURANCE LUCKNOW. Mr. Lucknow Web sites • www. 0522-2200693
2. Mr.avivaindia. Arjun Sharma
Sales Manager-Direct Sales Force AVIVA LIFE INSURANCE LUCKNOW Contact no.com
_________________________________________________________IISE. Contact no.com
Persons contacted 1.22
Books referred • Marketing Management by Philip Kotler
Class note of Sales & Distribution Mgmt.