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CUSTOMER BUYING BEHAVIOUR & INVESTMENT ANALYSIS

INDUSTRY GUIDE FACULTY GUIDE (with proper title and designation ) _________________ ___________________ __________________ PRANVEER SINGH INSTITUTE OF TECHNOLOGY KANPUR

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TABLE OF CONTENTS
Subject

q q q

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Executive Summary Objectives.. Industry Profile

Major Companies Company Profile SWOT Analysis

Executive Summary
Among all the investment avenues inslirance schemes are

the best investment options and are giving significant return. The growth in Indian economy will lead to boom in the market in coming years. The increasing numbers of players in the life insurance industry has resulted in developing of awareness among people for getting themselves and their families insured and hence life insurance companies playa major role in the increasing taste of the customers for insurance, be it life insurance or general insurance.

This report also deals with the findings and references

regarding Mutual Funds and growing Mutual Fund industry, it also throws light on present economy in lieu with Mutual funds and its growth. It also helps us to know what the perception of the investor is. And with out knowing investors 4/15/12

Objectives (for gaining maximum experience and exposure in the company)

The exclusive objective of the study is to analyze the actual effect of the onset of various life insurance industries on the sales of L.I.C. it aims at checking out if the sales of plans and schemes of LIC have gone down or up due to the onset of various private players in life insurance sector

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Industry Profile

(Review of litrature on the industry)

Insurance, in law and economics, is a form of risk

management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care.
The business insurance is related to the protection of the

economic values of the assets. Every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner, because he expects to get some benefits from it. The benefit may be mcome or something else. It is a benefit because it meets some of its needs.

Every asset is expected to last for a certain pen-od of time

during which it will perform. There is a lifetime for a machine in a factory or a cow or a motorcar. None of them 4/15/12 will last forever. The owner is aware of this and he can also

However, the asset may get lost earlier. An accident or any other unfortunate event may destroy it or make it non-functional, in that case, the owner and those deriving benefits there from would be deprived from the benefit and the planned substitute would not have been ready. There is an adverse or unpleasant situation . Insurance is a mechanism that helps to reduce the effect of such adverse situations. Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be . What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC.

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Major Companies
LIC Bajaj Allianz ICICI Prudential SBI Life HDFC Standard Max New York Reliance Life Birla Sun Life Tata AIG
4/15/12 ING Vysya

COMPANY PROFILE
kotak mahindra bank ltd., its affiliates and old mutual pIc.

The companies one the fastest growing insurance companies in India and has shown remarkable Kotak Mahindra old mutual life insurance is a joint venture between growth since its inception in 2001.
Kotak mahindra group believes in offering its customers a-

life time of value. A commitment that has made it a leading financial services group employing around 12300 employees in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 320 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The group services around 2.9 million customer accounts.
Old mutual plc is an international savings and wealth

Management Company based in the U.K. originated in South 4/15/12 in 1845, it is among the 50 largest companies in the Africa


The group has a balanced portfolio of

businesses offering asset management, life insurance, banking and general insurance services in oveer40 countries, with focus on South Africa, Europe and the United States, and a growing presence in Asia pacific. Old mutual pIc. Employs approximately 53000 employees world wide and is listed on the London and Johannesburg stock exchanges.

kotak. mahindra, which is an Indian company and old mutual, which is a foreign company. It is a 74%26% joint venture between the two. It was established by Mr. Udai kotak in 1985 4/15/12 along with 2 other people who were great

Om kotak mahindra is a joint venture between

 OM KOTAK

MAHINDRA

Our Lineage

A 74 % - 26 % Joint

Venture between
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SWOT ANALYSIS
STRENGTH:
Old mutual has 160 years experience ~

Wide Network
Based on banking Best Training Procedure Pure financial

Sector WEAKNESS :
Penetration is low
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OPPORTUNITY:
Opportunity in rural areas. Term plan is cheap and best.

THREATS:
LIC is the big competitor No availability of health plans

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SIGNIFICANCE
Customer satisfaction is the crux of the success of any company. To achieve success, the foremost thing is to be in pace with the customer needs. Clear consistent and systematic improvement is necessary to demonstrate that customer satisfaction is a strategic business objective.

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Continuous improvement implies that business

philosophies must change to meet ever increasing expectations of the customers, and no doubt it is a challenging job. awareness of expending needs of the customers and thereby to meet them. ,

Hence, a research should be a step towards the

In the present era insurance investors want

maximum possible returns with maximum risks. Now according to the term insurance companies have to present those schemes in the market which

provide maximum possible return with minimum

cost and less risk and there should be no hidden 4/15/12 involved in the schemes. costs

Research process
Understanding The Project
Firstly I was enriched with the philosophy of

investment and insurance. secondly I tried to understand that what made investors comfortable in making investments in insurance sector and which are the major insurance schemes in which investors . commonly used to investment Problem definition

Staller The objectives were set and sampling,

methodology and determined I along with the expert guidance of my project guide prepared a well4/15/12 designed' questionnaire.

 Research design
Decision regarding what, where, when, how much

to invest for getting higher returns with minimum risks and by what means? The research design encompasses the following information collected by means of questionnaire consisting from various investors.

Data source: data collected was primary as it was

Research instrument. Structured questionnaire

consisting of open-ended questions were used for used for perpose of research.

Contact method; personal interview Research approach; field survey 4/15/12

Scope of research: City of north Kanpur.

Data collection I visited the city of Kanpur. Here data collection was

done by the way of questionnaire. I met various investors, direct selling, and agents and queried regarding the questions in the questionnaire. In the totality 25 respondents were visited by me. The various parameters on which the investors were:
Investment in insurance schemes Most preferred insurance scheme for investment and

risk cover . i- Returns of insurance schemes

Dominating influence in financial decision making +
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Criteria for investment and insurance evaluation f

 Sample size: 50 Sample procedure: purposive, judgment,

and selective sampling

Samplin2: tvpe: convenient sampling

Sta2: e 6th
Data analvsis: Data until analyzed is of no use. Analysis

was done in the order of investors visited and then a consolidated analysis was done (refer to annexure)
Data interpretation:
4/15/12 Data was interpreted and inferences

TYPES OF RESEARCH
The basic types of research are as follows:
Descriptive vs. analytical:

Descriptive research includes surveys and fact finding enquiries of different kinds. 4/15/12 The major purpose of

 Conceptual vs. empirical: conceptual research is

the one that is related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without regard for system and theory. It is data based research. Coming up with conclusions which are capable of being verified by observation 'or experiment.

Other: all other types of research are variation of

one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, or the environment in which research is done, or on the 4/15/12 of some other factor From the point of view of basis

Sample taken for the survey is very feasible and is used in practice for a variety of reasons such as
1.Sampling can save time and money. A sample study is

FEASIBILITY OF SAMPLING

usually less expensive than a census study and produces results at a relatively faster speed.
2. Sampling may enable more accurate measurements for a

sample study is generally. Conducted by trained and experienced investigators.

3. Sampling remains the only way when population contains

infinitely many members.

4. Sampling remains the only choice when a test involves the

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QUESTIONNAIRE
QUESTIONNAIRE
I would request you to kindly respond to the

following questionnaire. This study is meant exclusively for academic purpose. I would like to extend my deed sense of gratitude for providing valuable insight that surely help in enriching my knowledge about today's investment trend and also customer's perception about the invasion of private companies in the scenario.

Personal details NAMEOccupation4/15/12 Address-

 5. Which mode of investment do you prefer the most? Insurance Gold Equity Mutual funds Others land Capital

6. Do you know about ULIP?

YES [ ]

NO [ ]

7. Which type of investor are you? Long term

4/15/12 Short term


8. Which sector do you prefer the most for investment? Government Private.

9.Do you think that in present scenario people are diverting

for" investment towards private players? Yes [ ] no [ ]

10.Have you taken any insurance and investment tool for

your self and your family? Yes [ ] NO [ ]

11. Do you think insurance is good for future protection?

Yes 4/15/12 [] no [ ]

15. If yes, then why? On the basis of:

Returns Services Better prod ucts Flexibility Transparency Face value of relatives Others 16. Do you think private companies have created an impact

on LIe?

YES [ ]

NO [ ]

17. Mention any four companies in order of preference? 1) 2)

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 20.Do you think that the market share of lie is decreasing

day by day? YES [ ] NO []

21. Do you know any person who has switched from lie to

any private YES [ ]

playe NO [ ]

22.your overall experience in kotak life insurance?

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conclusion

Through the survey

conducted by me, ~ reached the following conclusions: Among all the people
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On the other hand, the youngsters and the people

belonging' top the age group 30-40 understand that their money will grow unto a better extent in private insurer because their management is such that they offer greater and better invested their money in

opportunities for exploitation and so they have

private insurers and not much in LIC if at all they

have invested.

A lot is stall to be done to make the people aware

for insurance and to eradicate the general feeling imbibed in the people that insurance is not for their benefit but for the benefit of the company alone.
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BIBLIOGRAPHY
Publications:

Marketing management Research methodology I C.R.kothari Insurance in India P.S.palande Insurance chronicle Life Insurance Today

By-Philip kotler ByByICFAI Edition Journal

WEBSITE VISITED
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www.Kotaklifeinsurance.com www.google.com

THANK YOU

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