INTRODUCTION TO THE INDUSTRY HISTORY OF INSURANCE

The story of insurance is probably as old as the story of mankind the same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fore and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era- past few centuries-yet beginnings date back almost 6000 years. Some of the important milestones in the life insurance business in India are: 1818 Oriental Life Insurance Company, the first life insurance company on Indian soil started its business 1870: Bombay Mutual Life ASSURANCE society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance companies Act enacted as the first statute to regulate the life insurance business 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non- life insurance businesses 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public 1956:245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz.LIC

Act,1956, with a capital contribution of Rs.5 crore from the GOVERNMENT OF India. The general insurance business in India, in the other head, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are; : The Indian Mercantile Insurance Ltd.set up, the first company to transact all classes of 1907general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investment and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1 st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd. The New India Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company. . Spread Life Insurance widely and in particular to the rural areas and to the

socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.

Maximize mobilization of peoples savings by making insurance-linked savings

adequately attractive. . Bear in mind, in the investment of funds, the primary obligation to its

Policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the

moneys belong to the policyholders. . . act as trustees of the insured public in their individuals and collective capacities. Meet the various life insurance needs of the community that would arise in the

changing social and economic environment. . Involve all people working in the Corporation to the best of their capability in

furthering the interests of the insured public by providing efficient service with courtesy. . Promote amongst all agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. The insurance sector in India has come 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.

A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: . 1960: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1970:

The Indian Insurance Companies Act enacted to enable to the

government to collect statistical information about both life and non-life insurance businesses. . 1980: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public. . 1990:245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., Some of the important milestones in the general insurance business in India are; . 1997: The Indian Mercantile Insurance Ltd. Set up, the first company to

transact all classes of general insurance business.

1998: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices. . 2005: The Insurance Act amended to regulate investments and set minimum

solvency margins and the Tariff Advisory Committee set up. . 2011. . 2012: insurers amalgamated and grouped into four companies viz. the National 2011: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1 st January

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. And the United India Insurance Company Ltd. GIC incorporated as a company.

WHY INSURANCE? Indians at greater risk

Reason 1: Lifestyles have changed: Indians today suffer from high levels of stress. Long hours at work, little exercise, disregard for a healthy balanced diet and a consequent dependence on junk food have weakened our immune systems and put us at an increased risk of contracting illnesses. Reason 2: Rare non-communicable diseases now common: Obesity, high blood pressure, strokes, and heart attacks, which were earlier considered rare, now affect an increasing number of urban Indians-almost every day. Shocking Truths 18% of the urban populations suffer from hypertension, which leads to renal failure, stroke and cardio vascular diseases 30% of the populations suffer heart attacks before age 40 5

66% of deaths today are due to cardio vascular diseases Almost 3.5 million Indians suffer from diabetes Cardiovascular diseases (CVDs) like heart disease and stroke are the main causes of death and disability.

The Cost Factor

Reason 3: Medical care is unbelievably expensive: Medical breakthroughs have resulted in cures for dreaded diseases. These cures, however, are available only to a select few. High operating expenses---therapy for breast cancer costs as much as Rs. 2 lakhs for 3 days---have restricted treatment to the richest. In fact, even among the affluent groups, 20% need to sell their valuable assets so they can accumulate the required amount for their medication. Reason 4: Indirect cost add to the financial burden: Indirect sources of expense--travel, boarding and lodging, and even temporary loss of incomeaccount for as much as 35% of the overall cost of treatment. Most often, we overlook this fact when planning for medical expenses.

medical tests 24%

medicines 18% Doctor's fees 9%

hospitalisa tion 14% others 15%

Lodging 20%

Reason 5: Incomplete financial planning: Most of us have insured our home, vehicle, childs education, and even our retirement years. Ironically however, we have not insured our health. We ignore the fact that illnesses strike without warning---and seriously impact our finances and eat into our saving in the absence of a good health cover.

Health cover: A musthave

No financial plan is complete without a comprehensive health cover. ICICI prudential offers the following health insurance plans providing various types of covers for all health needs.

Crisis Cover : The most comprehensive critical illness cover offering cover against 35 Critical Illnesses along with life and disability cover. Hospital Care: A long-term hospitalization and surgery benefit plan, covering the widest possible range of the medical conditions. Diabetes Care/ Diabetes Care Plus : A unique critical illness insurance plan covering 6 critical illnesses and offering a wellness program which is specifically designed for type 2 diabetics and pre diabetics. Cancer Care: This cancer insurance plan offer a fixed benefit to meet treatment and surgery related needs of someone afflicted with cancer. Health Assure Plus : The basic critical illness insurance plan which offer you a cover against 6 critical illnesses along with life

WHEN INSURANCE COMES ?

In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that Nationalization has lent the industry fairness, solidity, growth and reach. 8

CONCEPT OF INSURANCE

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during: The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates risk, substituting certainly for uncertainty and comes to the timely aid of the unfortunate event of death of the breadwinner. By and large, life insurance is civilizations partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: 1. That of dying prematurely is leaving a dependent family to fend for itself. 2. That of living till old age without visible means of support.

Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to forms of insurance. At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation

, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid to Thrift:
Life insurance encourages thrift. It allows long-term savings since payments can be made effortlessly because of the easy installment facility built into the scheme. (Premium payment for insurance is monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from ones salary. In this case the employee directly pays the deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoyalso avail of provisions in the law for tax relief. In such cases tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assesses can the assured in effect pays a lower premium for insurance than otherwise. 10

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. Childrens education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of ones retirement from service and used for any specific purpose, such as, purchase of a house or for other investment. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. Policies can also be taken, subject to certain conditions, on the life of ones spouse or children. While underwriting proposals, certain factors such as the policyholders state of health, the proponents income and other relevant factors are considered by the Corporation

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INTRODUCTION TO THE COMPANY

HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of November 1, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As on October 2012, HDFC Bank has 2,544 branches and over 10,000 ATMs, in 1,399 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net profit of 3,926.30 crore (US$714.59 million), up 33.1% from the previous fiscal. Total annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$4.42 billion) in 2011-12. HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies. Times Bank Limited (owned by Bennett, Coleman & Co./The Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore. 12

COMPANY PROFILE
HDFC Standard Life Insurance Company Ltd. Is one of Indias leading private insurance companies, which offers a range of individual and group insurance solutions? It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on March 31,2007 holds 81.9 percent of equity in the joint venture.

Our Key Strengths

Financial Expertise As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investment safely and efficiently. Range Of Solutions We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solution have been designed to offer you complete flexibility combined with a low charging structure. Track Record So Far Our gross premium income, for the year ending March 31,2012 stood at Rs. 2,856 crores and new business premium income at Rs. 1,624 crores. The company has covered over 8,77,000 lives year ending March 31,2012. We at HDFC Standard Life realise that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family

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Profile HDFC Bank was incorporated in August 1994, and, currently has an nationwide network of 761 Branches and 1977 ATMs in 327 Indian towns and cities. Awards Our single-minded focused on product quality and service excellence has helped us garner the appreciation of both national and international organizations. Financial Information All the facts and figures highlighting the rapid growth of HDFC Bank over the last nine ears. Careers Join the workforce of Indias leading private sector bank that has won accolades from top national and international magazines, and explore a world of opportunities. Citizens Charter Our Citizens Charter offers relevant information about the products, facilities and services we provide. Corporate Governance HDFC Banks Corporate Governance Policy has been adopted keeping in mind the importance of attaining fairness for all stakeholders, as well as achieving organizational efficiency. Shareholding In the Bank Browse through our current as well as previous records show the detailing about the distribution of shares.

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Board Members

Brief profile of the Board of Directors

Mr. Deepak S Parekh is Chairman of the Company . he is also the Executive Chairmen of Housing Development Finance Corporation Limited (HDFC Limited). He joined HDFC Limited in a senior management position in 1978. he was inducted as a whole-time director of HDFC Limited in 1985 and was appointed as its Executive Chairman in 1993. he is Chartered Accountants (England & Wales). Mr. Keki M Mistry joined the Board of Directors of the company in December, 2010. he is currently the Managing director of HDFC Limited. He joined HDFC Limited in 1981 and became an executive Director in 1993. he was appointed as its Managing Director in November 2010. Mr. Mistey is a Fellow of the Institute of Chartered Accountants. Mr. Alexander M Crombie joined the bored of Director of the Company in April, 2011. The has been with the Standard Life Group Chief Executive of the Standard Life Group in March 2012. Mr. Crombie is a fellow of the faculty of Actuaries in Scotland. Ms. Marcia D Campbell is currently the group Operations Director in the Standard Life group and is responsible for Group Operations, Asia Pacific Development, Strategy & Planning, Corporate Responsibility and shared services centre. Mr. Campbell joined the Board of Director in November 2012.

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Mr. Keith N Skeoch is currently the Chief Executive in Standard Life Investments Limited and is responsible for overseeing Investment Process & Chief Executive Officer Function. Prior to this Mr. Skeoch was working with M/s. James Capel & Co. holding the position of UK Economist, Chief Economist, Executive Director, Director of Controls and Strategy HSBS Securities and Managing Director International Equities. He was also responsible for Economic and Investment Strategy research produced on a worldwide basis. Mr. Skeoch joined the Board of Director in November 2012. Mr. Gautam R Divan is a practicing Chartered Accountant and is a fellow of the Institute of Chartered Accountants of India. Me. Divan was the Former Chairman and Managing Committee Member of Midsnell Group international, an international Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide experience in auditing accounts of large public limited companies companies and nationalized banks, financial and Taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a Global Management Consultant advising CEP/Boards on strategy and Change Management. Mr. Pant, until 2011 was a Partner & VicePresident at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield, USA. Mr. Pant has an MBA from the Wharton School and BE (Honours) from Birla Institute of Technology and Sciences.

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Group companies

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ProductsAt HDFC Standard Life, we offer a Bouquet of insurance solutions to meet every need. We cater to both, individual as well as as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product so that you can make an informed choice about buying a policy. For individual, we have a range protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organization we have a host of customized solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products.

1) Protection Plans
You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan cover Term Assurance Plan. With our Protection Plans, you can protect your family from uncertainties in life such as your unfortunate death or critical illness. And ensure that your family lives a life of salf-respect and dignity even in your absence. Our protection plans give you: An ideal way to secure the financial future of your loved ones . High cover at a very nominal cost plus an option of adding optional benefits to cover for other eventualities. Choice of taking the plan on a single one-time premium. Choice of taking the plan on a single life basis or a joint life (first claim) basis.

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2) Investment plans
Our Single Premium whole of life plan is well suited to meet your long-term investment needs. we provide you with attractive long-term returns through regular bonuses. money is like manure. You have to spread or it smells. The well informed rightly said and proves how important investments are in todays data and age. HDFC standard life insurance brings to you a safe investment plan that would take care of your savings and nature your earnings.

3) Pension Plans
Our pension plans help you secure your financial independence even after retirement. Our pension range includes our personal Pension plan, unit linked pension, unit linked pension Plus. We understand your need to build a secure future for yourself. Hence, the HDFC Personal Pension plan is an insurance policy that is designed to provide a postretirement income for life with the freedom to choose your retirement data. The plan receives simple Reversionary Bonuses, which are usually added annually. At the end of the term an additional Terminal Bonus may be paid depending on the performance of the underlying investment.

4) Savings plans
Our savings plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range Endowment Unit includes Endowment assurance plan, Unit Linked Linked Endowment plus,

https://www.hdfcinsurance.com/products/indi mbp.aspMoney Back Plan, Childrens plan, Unit linked Youngstar plus.

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Life Stages
Your insurance need will change as your life does, from starting to work to enjoying your golden years and all the stages in between. Each one of these stages may pose a different insurance need/cover for you. In this section, we have drawn up the basic life stages and help you analyses. various insurance needs accordingly. Please click here to get in touch with our financial consultant to know more about our products.

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STAGE 1 Young and Single

An important stage where one lays down the foundation of a successful life ahead. Take advantage of the time and power of compounding to ensure that you build up your dreams. Start saving early.

Your needs Save for a home and wedding Tax Planning Save for Golden years

STAGE 2 Just Married

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Marriage brings about a significant change . New dreams and new opportunities also bring in additional responsibilities. While both of you look forward to a happy and secure life, it is equally important to ensure that eventualities dont come in the way of shaping your dreams.

Your needs Planning for home / securing your home loan liability Save for vacation Save for your first child

STAGE 3 Proud parents

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Once you have children, your need for life insurance is even more. You need to protect your family from an untoward incident. Ensure your protection umbrella takes into account the future cost of securing your childs dream. You will want life to go on for your loved ones , and having enough life insurance is a way to help ensure that.

Your needs Provide for childrens education Safeguarding family against loan liabilities Savings for post-retirement

STAGE 4 Planning for Retirement

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While you are busy climbing the ladder of success today, it is important for you to take time and plan for your life after retirement. Having an early start for retirement planning can make a significant difference to your savings. Think about your golden years even before you have reached them. The key is to think ahead and plan well using your time and money.

Your needs Provide for regular income post retirement Immediate Tax benefits Lead a secure, independent and comfortable life Style in your retirement years

INTRODUCTION TO THE TOPIC MARKETING STRATEGY

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The marketing manager formulates a strategy to achieve the objectives of marketing plan. This involves setting strategies to effectively and efficiently deal with the marketing Mix, promotions, Advertising. Distribution, Pricing, and Research and Development activities.

(1)

MARKETING MIX FOR INSURANCE INDUSTRY

PRODUCT:-

There is no transfer of ownership in services marketing, as happens with the marketing goods. The customer can only experience the service, he cannot own it. To give a sense of ownership, most insurance companies invite their customer to participate in the process of designing the services, offering greater customization. The range of products being offered by various industries. Before the liberalization of the insurance of the insurance sector, there were only government players like LIC and GIC, which had only a few policies targeted at lucrative segments of the market. There were very few specialized or customized insurance policies to meet customer needs. However, with the opening up of the insurance sector to private and foreign players, more specialized or customized services have become available in the market o meet he specific needs of customer. o Life insurance o Accident insurance o Health insurance o House insurance o Liability insurance o Travel insurance o Commercial insurance 25

o Property insurance o Automobile insurance o Baggage insurance o Cattle & Livestock insurance o Engineering insurance o Marine-cargo insurance The basic marketing strategy of marketers in a competitive market has been to identify the special needs of customers and target them. In his individual segment most customers see insurance as a means of security, investment or tax savings. If separate policies are offered to customer to meet their different needs, it may not be difficult to increase the volumes. In a market departure from the earlier scenario when most insurance players were regarded s the same, todays insurance companies give due importance to brand building. As the market has become highly companies have resorted to Brand Building.

PRICE:Price plays a dominant role in marketing insurance products. Policy price, known as premium, has a good impact on the number of policies sold and the total net revenue generated as price is taken into consideration by most potential customers, the offerings has to be competitively priced. Pricing of life insurance is generally done on the base of competition, prevailing rate of interest, etc. However, it is the quantum of risk involved that ultimately decides the pricing of insurance products. Higher the risk involved for the marketer, the marketer, the higher the price. It is difficult to determine the fixed and variable costs associated with per unit of production of services. This is more so when various services ( Instead of single services) are offered. Therefore, the pricing of product Based on the cost of Production and Delivery becomes difficult. A result most insurance product, are

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priced based on competitors strategy and the risk involved. In addition pricing can also be done taking advantage of the demand fluctuation in the market.

PLACE:Place in terms of channels for distribution is very important in marketing insurance products. The fact that the volume of business generated depends on the company reach is the reason why place is so important. An insurance company needs to offer a personalized services offer large number of able agents. The core products of insurance companies is the best sold through personal selling, with customized offerings. The distribution channels like the internet, advertising, nevertheless, some innovative change have been taking place in the distribution of services. Some insurance companies have tied up with NGOs and cooperative to promote their products while some have tied up with he employers. Work sits marketing promotions involved an understanding between the insurance company and the employers. Most insurance companies use a combination of distribution channel and do not relay on any Single channel to generate more sales . the reason behind this is simple expanding the reach with little investments.

PROMTION:There has been an increased emphasis on promotion in the insurance businesses in the recent times. The basic reason for this is that the supply for insurance services far exceeds the demands from the market and the markets need to employ a push strategy . the importance of personal selling as a promotional strategy has been discussed in the earlier sections. The advertising in insurance services stresses the need for insurance and its benefits. Individualized advertising in the benefits offered by specific companies is not very common as there is very little to differentiate the services of one company from those of others. Under sales promotions of in insurance products the widely

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used techniques are induced premiums, discounts, gift coupon, sign-ups rebates, future price discounts and special services enhancements. Maintaining good public relations is also an important promotional, strategy, especially because the insurance business is a do good businesses for the customers.

(2)

SALES PROMOTION

An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations price reductions, door-to-door calling, telemarketing, and personal letters on other methods. More than any other element of the promotional mix, sales promotion is about action. It is about stimulating customers to buy a product. It is not designed to be informative a role which advertising is much better suited to.

Sales promotion can be directed at:

The ultimate consumer (a pull strategy encouraging purchase) The distribution channel (a push strategy encouraging the channels to stock the product). This is usually known as selling into the trade.

Methods of sales promotion

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There are many consumer sales promotional techniques available, summarized in the table below.

a)

price promotions
Price promotions are also commonly know as price discounting These offer either (1) a discount to the normal selling price of a product, or (2) more of the product at the normal price. Increased sales gained from price from price promotions are at the expense of a loss in profit so these promotions must be used with care. A producer must also guard against the possible negative effect of discounting on a brands reputation.

b) Coupons
Coupons are another, very versatile, way of offering a Discount. Consider the following examples of the use Of coupons: On a pack to encourage repeat purchase In coupon books sent out in newspapers allowing customer to redeem the coupon at a retailer A cut-out coupon as part of an advert On the back of till receipts

The key objective with a coupon promotion is to maximize the redemption rate this is the proportion of customers actually using the coupon.

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One problem with coupons is that they may simply encourage customers to buy what they would have bought anyway. Another problem occurs when retailers do not hold sufficient stocks of the promoted product causing customer disappointment. Use of coupon promotions is, therefore, often best for new products or perhaps to encourage sales of existing products that are slowing down.

c)

Gift with purchase

Technique. It is also known as a premium promotion in that The gift with purchase is a very common promotional customer gets something in addition to the main purchase. This type of promotion is widely used for: Subscription-based products (e.g. magazines)

- Consumer luxuries (e.g. perfumes)

d) Competitions and prizes

Another popular promotion tool with many variants. Most competition and prize promotions arte subject to legal restrictions.

e) Money refunds
Here, a customer receives a money refund after submitting a proof of purchase to the manufacturer. These schemes are often viewed with some suspicion by customer particularly if the method of obtaining a refund looks unusual or onerous.

f) Frequent user / loyalty incentives

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Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples of this are the many frequent flyer or user schemes used by airlines, train companies, car hire companies etc.

g) Point-of-sale displays
Research into customer buying behavior in retail stores suggests that a significant proportion of purchases results from promotions that cues and wellpositioned point-of-sale displays are, therefore, very important part of the sales promotional activity in retail outlets. timers see in the store. Attractive, informative

PROCESS
The process of buying an insurance product and paying the regular premiums has become a simple process in recent times. In insurance companies, insurance companies offer convenience and savings has also helped simplified he process in the insurance sectors. The customer can now gathered more information on the internet. Which helps customers to choose his services provide and service that will cater best to his needs? The customers can even purchased policy online, if he so desire. Insurance policies can be purchased through the net also. Processes have to customer friendly and time saving

.
PHYSICAL EVIDENCE:In insurance marketing, providing physical evidence o customers is quite difficult. In most cases e customer might not ever visit the premises of the company as he buys the policy through the agent at this resident or office. Therefore the office building, infrastructure, equipments etc. Contribute very little

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to physical evidence. However a good ambience, well dressed and well- behaved employees. Displayed certificates and achievements of the company, etc., are some of the techniques used by insurance companies to provide physical evidence. The policy certificates and the receipts of payments contribute to minimizing the perceive risks of the customers therefore, they can be included as an element of physical evidence. The logo and brand name of the company displayed in advertisements and articles/press release in newspapers provide physical evidence.

PEOPLE:-

Insurance needs to be sold; very few customers would buy it in the absence of selling. Therefore, the importance of people increase industry is, therefore dominated by agents and insurance advisor. The agents ability to convince and persuade I the determining factor in the insurance deal. Therefore agents need to be empowers to offer customized services to suit the specific of customers. They need to be motivated through commissions and award to choice higher targets. Insurances companies have realized their importance of their agents in running and expanding their business have risen that it is important to hire agents who can win theirs and confidence of customers therefore they have started recruiting retired employees from banks. Who already have a known customer base and ho ca win the confidence of prospective customers.

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(3)

ADVERTISING

the mean s of proved:-ding the most persuasive possible selling massage to the right prospects at the lowest possible cost Kotler and Armstrong provide an alternative definition: advertising is any paid from of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor. There are five main stages in a well-managed advertising campaign:

1. Set advertising objectives

An advertising objective is a specific communication task to be achieved with a specific target audience during a specified period of time. Advertising objectives fall into three main categories: a) To inform e.g. tell customers about a new product b) To persuade e.g. encourage customers to switch to a different brand c) To remind e.g. remind buyers where to find a product

2. Set the Advertising Budget

Marketers should remember that the role of advertising is to create demand for a product. The amount spent on advertising should be relevant to the potential sales impact of the campaign. This, in turn will reflect to the characteristics of the product being advertised.

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For example, new products tend to need a larger advertising budget to help build awareness and to encourage consumers to trial the product. A product that is highly differentiated may also need more advertising to help set it apart from the competition emphasizing the points of difference. Setting the advertising budget is not easy- how can a business predict the right amount to spend. Which parts of the advertising campaign will work best and which will have relatively little effect? Often businesses use rules-of-thumb (e.g. advertising/sales ratio) as a guide to set the budget.

3. Determine the key Advertising Messages

Spending a lot on advertising does not guarantee success (witness the infamous john Cleese campaign for Sainsbury) Research suggests that the clarity of the advertising message is often more important than the amount spent. The advertising message must be carefully targeted to impact the target customer audience. A successful advertising message should have the following characteristics: A. Meaningful customers should find the message relevant B. Distinctive capture the customers attention C. Believable a difficult task, since research suggests most consumers doubt the truth of advertising in general

4. Decide which advertising Media to use

There are a variety of advertising media from which to chose. A campaign may use one or more of the media alternatives. The key factors in choosing the right media include: a) Reach what proportion of the target customers will be exposed to the advertising?

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b) Frequency how many times will the target customer be exposed to the advertising message? c) Media Impact Where, if the target customer sees the message will it have most impact? For example does an advert promoting holidays for elderly people have more impact on Television (if so, when and which channels) or in a national newspaper or perhaps a magazine focused on this segment of the population? Another key decision in relation to advertising media relates to the timing of the campaign. Some products are particularly suited to seasonal campaigns on television (e.g. Christmas hampers) whereas for other products, a regular advertising campaign throughout the year in media such as newspapers and specialist magazines (e.g. cottage holidays in the lake district) is more appropriate.

5. Evaluate the results of the Advertising Campaign

The evaluation of an advertising campaign should focus on two key areas: 1) The Communication Effects is the intended message being

communicated effectively and to the intended audience? 2) The Sales Effects has the campaign generated the intended sales growth. This second area is much more difficult to measure

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(4)

DIRECT MARKETING

Direct marketing is concerned with establishing an individual relationship between the business offering a product or service and the final customer. The planned recording, analysis and tracking of customer behavior to develop a relational marketing strategies. The process of direct marketing covers a wide range of promotional activities you may be familiar with. These include: Direct-response adverts on television and radio Mail order catalogues E-commerce marketing Magazine inserts Direct mail Telemarketing

Direct mail Of the above direct marketing techniques, the one in most widespread use is direct mail. Direct mail is widely thought of as the most effective medium to achieve a customer sales response. Why? The advertiser can target a promotional message down to an individual level, and where possible personalize the message. There are a large number of mailing databases available that allow businesses to send direct mailing to

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potential customers based on household income, interests, occupation and other variables. Businesses can first test the responsiveness of direct mailing (by sending out a test mailing to a small, representative sample) before committing to the more significant cost of a larger compaign. Direct mailing campaigns are less visible to competitors it is therefore possible to be more creative, for longer however, direct mail has several weaknesses: A piece of direct mail is less interactive than a television or radio advert, although creative packaging can still stimulate customer response Lead times of produce direct mailing campaigns can be quite long

There is increasing customer concern with junk mail been breached.

-- the receipt of

unsolicited mail which often suggest that the right to individual privacy has

The Direct Marketing Database Direct mailing is based on the mailing list a critical part in the direct marketing process. The mailing list is a database which collects together details of past, current and potential customers. A properly managed mailing database enables a business to: Focus on the best prospective customers Cross-sell related products Launch new products to existing customers

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How is the mailing database compiled? The starting point is the existing information the business keeps on its customers. All forms of communication between a customer and the business need to be recorded so that a detailed, up-to-date profile can be maintained. It is also possible to buy mailing list from elsewhere. There are numerous mailing list owners and brokers who sell lists of names. The Internet, directories, associations and other sources are good sources.

(5)

PERSONAL SELLING

Personal selling is oral communication with potential buyers of a product with the intention of making a sale. The personal selling may focus initially on developing a relationship with the potential buyer, but will always ultimately end with an attempt to close the sale. Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to support a push strategy (encouraging intermediaries to buy the product) or a pull strategy (where the role of the sales force may be limited to supporting retailers and providing after-sale service). What are the main roles of the sales force? Kotler describes six main activities of a sales force: (1) Prospecting trying to find new customers. (2) Communicating with existing and potential customers about the product range. (3) Selling contact with the customer, answering questions and trying to close the sale.

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(4) Servicing providing support and service to the customer in the period up to delivery and also post-sale. (5) Information gathering obtaining information about the market to feedback into the marketing planning process. (6) Allocating in times of product shortage, the sales force may have the power to decide how available stocks are allocated.

. What are the advantages of using personal selling as a means of promotion?

Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention The sales message can be customized to meet the needs of the customer The two-way nature of the sales process allow the sales team to respond directly and promptly to customer questions and concerns Personal selling is a good way of getting across large amounts of technical or other complex product information The face-to-face sales meeting gives the sales force change to demonstrate the product Frequent meeting between sales force and customer provide an opportunity to build good long-term relationships Given that there are many advantages to personal selling, why do more businesses not maintain a direct sales force?

Main disadvantages of using personal selling

The main disadvantage of personal selling is the cost of employing a sales force. Sales people are expensive. In addition to the basic pay package, a business needs to provide incentives to achieve sales (typically this is based on commission and subsistence costs, mobile phone etc).

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COMPARISION BETWEEN HDFC & ICICI BANK

Indian Banks HDFC vs ICICI
HDFC and ICICI are two names that stand apart among others when we talk of private sector banks in India. Both are fairly successful banks giving stiff competition to government banks. The reason of their success lies in the fact that both have introduced a greater efficiency of services and also host of new services that were demanded by consumers.

HDFC Bank Ltd.

HDFC was among the first private sector banks set up in India after RBI allowed their establishment in 1994. It was promoted by Housing Development Corporation of India, and is still known as HDFC Bank. It was founded by Bibu Verghese and its headquarters are in Mumbai. As of 2010, its operating incomes were $958 million and profit stood at $658 million. Times Bank Limited, and Centurion Bank of Punjab have merged with HDFC Bank since then, increasing the assets of the Bank. Today HDFC has a Pan Indian presence with over 1700 branches and over 5000 ATMs.

ICICI Bank
ICICI is the largest private sector bank and 2nd largest bank overall in India. It was formerly known as Industrial Credit and Investment Corporation of India. The bank has its presence all over India and even abroad (Present in 18 countries) with more than 2000 branches and over 5000 ATMs. It provides a host of banking services to both corporate and retail customers apart from being fairly successful in life insurance (ICICI Prudential), venture capital (ICICI Direct) and asset management. It is the largest home loan provider in the country. ICICI ranks number one in providing credit cards in India. ICICI has a strong presence overseas and has offices in 19

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countries. ICICI has been notorious in employing goons for recovering its loans from defaulters and has been pulled by different courts and consumer forums in this regard. As far as differences between the two banks are concerned, both are equally popular employing cutting edge technologies though ICICI seems to be ahead in aggressive branding having Amitabh Bachchan as its brand ambassador.

Difference between HDFC and ICICI

HDFC has a niche market while ICICI is all over the place. HDFC has an unmatched growth record at 30% while ICICI has had swings on this front. On a price to adj book basis ICICI trades at 2 times while HDFC trades at 4.5 times. ICICI has a lower PE ratio than HDFC. PE ratio of HDFC is at 19, that of ICICI stands at 11%. Reach of ICICI bank and ATMs is much more than HDFC. There is a huge difference in raising of equity in the two banks. ICICI Netbanking is far superior than that of HDFC. HDFC has low NPAs at 0.2% of advances while ICICI has NPAs at 2.7% of advances. ICICI Holdings may have completed its 5% stake placement for USD 500 million, sources said, adding that ICICI Holding may have placed stake to multiple investors and the valuation of ICICI Holding may work out to USD 10.2 billion.

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This company was recently created by ICICI to hold its 74% stakes in the life and general insurance business. Sources confirm that it has pegged the valuation of its life insurance business, ICICI PruLife, at USD 6-7 billion and the non-life or general insurance at USD 2-3 billion. The 51% stake in ICICI Prudential Asset Management is being put at USD 1 billion. ICICI Prudential and ICICI Lombard will continue to require large dollops of capital as the life insurance business is growing at 104% annually while the general insurance business is clocking a growth of over 88%. On the other hand, HDFC Bank will raise Rs 3,114 crore via its preferential offer to Carlyle Group. The HDFC preferential issue consists of 1.8 crore equity-shares, which is 7.11% of the total issued and paid-up capital. The Carlyle Group will hold 5.6% in HDFC after the preferential issue. HDFC plans to use a part of the money for its insurance business, which needs over Rs 600 crore every year. Part of the funds would be used to maintain HDFC stake in HDFC Bank, said Renu Karnad, ED, HDFC Bank. The BSE Bankex is up 97 points to 7,564. On the BSE, the ICICI Bank stock is up Rs 10, at Rs 923, while the HDFC Bank stock is up Rs 56, to Rs 1,125. CNBC-TV18 spoke to analyst Hemindra Hazari of Karvy Stock Broking to find out which of the two banks is a better bet. He is a bit surprised with the timing of the ICICI Bank issue as its results were not up to the mark. The ICICI Bank issue was a bit of a surprise as when they announced their equity issue, their results were not up to the mark. There is a concern that its RoE may take a hit, so the market is sensitive to ICICI Banks announcement. On the other hand, HDFC Bank is a very profitable bank. They have made it clear that they are not interested in increasing their market share but they want to grow profitably. In the case of HDFC Bank, the concerns of maintaining profitability are much less than in the case of ICICI Bank, he said. Hazari feels there is huge difference in both the banks raising of equity. There is a big difference between 42

ICICI Banks raising of equity and HDFC Banks raising of equity. ICICI Bank is using these proceeds to fund its own growth, which is expected to remain high, and its investments in other subsidiaries, which require very large capital like its insurance business. For HDFC Bank, there are no such subsidiaries and hence there is no such concern for the mortgage lender. Thats why ICICI Bank requires to raise a larger capital than HDFC Bank, he said. He sees no problem in banks coming to the market to regularly raise capital. HDFC needs to maintain a minimum CAR of 12% as they are an NBFC. While in the case of ICICI Bank and HDFC Bank its 9%. Given the fact that the economy is growing, banks need to provide credit so that the economy can continue to grow. We would expect banks in an emerging economy, with high economic growth rates, to regularly come to the market to raise capital. Hazari prefers HDFC Bank to ICICI Bank. My first preference would be HDFC Bank as the risks are much lower than in the case of ICICI Bank. One is the sheer size of the issue in the case of ICICI Bank compared to HDFC Bank and the extent of dilution. Secondly, its not very clear whether there will be an ICICI Holding and who will fund the insurance venture. Excluding that, one will find that ICICI Bank has a huge retail exposure and that has been showing some stress in the economy. If there is some problem say on the leverage side and ICICI Bank has really leveraged itself very highly in that area, then there are always going to be concerns. While we do not see these concerns in HDFC Bank, he added. HDFC BANK With 3.6% share of India's total non-food credit disbursements in FY12, HDFC Bank is the second largest private sector bank in the country (after ICICI Bank) in terms of asset size. At the end of March 2012, it had a franchise of 4,232 ATMs and 1,725 branches. Retail assets constituted 60% of advances in FY12. The bank is focusing on loan origination in the retail, SME (small and medium enterprises) and agriculture segments and on non-fund based products and services. Its group companies,

43

HDFC Standard Life (insurance), HDFC AMC (mutual funds) and HDFC Securities (equities) add scalability to the bank's offerings. ICICI BANK ICICI Bank is amongst the few Indian banks that actually reduced their share of India's total non-food credit disbursements from 9.6% in FY12 to 6.6% in FY10. Being the second largest bank in the country after SBI in terms of asset size, the bank had a franchise of over 5,220 ATMs and 1,707 branches at the end of March 2012. Retail assets constituted 44% of advances in FY12, down from 59% in FY11.

COMPETITIVE STRATEGIES OF HDFC SL

Rs 1,50,000 crore. Thats what 16 Life insurance companies have invested in capital markets till March this year. LIC the largest life insurer contributed about 75% of this investment which comes to about Rs 1,24,000 crores. LIC has already invested Rs 17,000 crore in equities as against Rs 24,00 crore last year. Private insurers too are not lagging behind. Over the last one year, their equity portfolio has swelled immensely. About 2 years back we had one third of our total investments into equity today its about two thirds. Of the total money coming in about 80% is going into equity, says Puneet Nanda, Exec VP & CIO, HDFC sl Life Insurance HDFC sl Life Insurance doubled its equity exposure from Rs 5,900 crores last August to Rs 12,200 crores in August this year. Equity exposure of Bajaj Allianz too has more than doubled from Rs 2,150 crores last August to Rs 5,5850 crores this year. SBI Life Insurance has trebled its equity investments from Rs 633 crores in August 2011 to Rs 2,600 crores in 2012. Insurers say the increased equity exposure is driven by ULIPs, which now constitute upto 80% of their total portfolio. And with equity markets on the roll, insurers feel their equity exposure will only grow with time.

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FUNCTIONS
HDFC sl offers exciting career opportunities for people from a variety of streams. Read on to find out more about how each of the functions contributes to our growing business.

Sales Distribution

Tied Agency is the largest distribution channel of HDFC sl, comprising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales &people development, tied agency has emerged as a robust, predictable and sustainable business model.

Bank assurance and Alliances

HDFC sl was a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the companys sales and distribution strategy, contribution to approximately one third of companys total business. The business philosophy at B&A is to leverage distribution synergies with our partners and add value to its customer as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel.

Group
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The group Business of HDFC sl has in existence for over 2 years. Today, we are the Number 1 player among private life insurance companies in Group Business excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26% (FY 2004-2005). We offer the entire gamut of products including Gratuity, Superannuation Term Insurance, Leave Encashment, Employee Deposit Linked Insurance (EDLI), Mortgage Reducing Term Assurance (MRTA) & informal Group Term covers.

Customer Service & Operations

The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces between the clients and the agents, the branches and the underwriters, and manages work processes. The Vision at Customer Service is to deliver World Class Service at every opportunity. Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country

IT
The information Technology function at HDFC sl is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of Delivery to the customer: Life Asia Solutions group that provides flexibility in designing better product offerings to end-users, the Solutions Group-Wed that provides real-time information to customer and is responsible for customer relationship management. IT Architecture& Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R & d Solution Group, exploring new technological initiatives and caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, 46

network services to the whole organization. This group runs the Digital Nervous System of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application.

Marketing
The Marketing function at HDFC covers an array of activities-brand and media management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and public Relations. That helps develop and nurture HDFC sales corporate identity while effectively communicating its varied product offerings to the customer. channel marketing provides support to the sales force by streamlining the design and develop tools across distribution channels. The Direct marketing team was set up to generate high quality leads for profitable business. The mint of collaterals and s , telemarketing communicating customized product information through e-mailers g and innovative direct mailer sales team achieves this through target database acquisition.

Finance
Finance function in HDFC sell is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of four functions. Corporate Planning and MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision- making and management reporting analysis. The account function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensures that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of HDFC sell life. Internal audit provides assurance to the management over the 47

organizations control framework and includes process risk management, information security assessment and business continuity assessment.

HR

The people strategy of HDFC sell is To build a committed team with a culture of innovation, learning and growth. The human Resource Function at HDFC sell drives the people strategy of the business, with its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization.

Business

Excellence the Business Excellence function is committed to building a quality mindset across the organization. HDFC sell is the first organization in the Insurance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement. The team is also driving the Malcolm Baldrige framework across the organization, an intervention that examines management of key inputs for Business Excellence.

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49

RESEARCH METHODOLOGY

Selecting the organization

Visiting the organization

Collection of primary Data through ground level

Interviewing the B.M of The organization

Processing of the data Collected, acquiring Information through

Documentation and report generation

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RESEARCH METHODOLOGY
The data collected was from the company and it is first hand information. The companys various contents and the soft copies of the same proved to important source information is carrying out the project. The other necessary information is collected from the various other sources out side the company EX from newspapers, websits, magazines etc.

TITLE OF THE STUDY Marketing Strategies of HDFC Standard Life Insurance OBJECTIVE OF THE STUDY
To get an insight into the Insurance sector. Try to know the marketing strategies adopted by the insurance companies. To get real practical life experience of the actual world of work. To acquire the skill of applying the knowledge & skills gained into professional condition.

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TYPES OF RESEARCH
To sum up the source : PPRIMARY SOURCES
Company records Informal tasks with the personnel

SECONDARY SOURCES
Websites Newspapers Marketing research is defined as objective and formal process of collecting Information, analyzing the result and communicating the findings and their implications in terms of marketing actions. Research can be defined as a systematic and objective process of gathering, recording, and analyzing the data that provides information to guide decisions. All the stages of a research study must be carried out in a logical & analytical manner . The various stages Followed in the Research are :A. B. C. Research Design Data Collection Methods Sampling

A. RESEARCH DESIGN
The first phase in planning the research project is formulating a research design. A research design is the actual framework of a research that provides specific details regarding the process to be followed in conducting the research. The research design includes all the details regarding the research such as where the information should be obtained from, the time, and budget allotted for conducting the research, the appropriate measurement techniques and the sampling process.

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DATA COLLECTION METHODS

All data sources available to the researcher can be classified as either:PRIMARY SOURCE:Primary data is collected directly from respondent using data collection methods like survey interview, questionnaires, measurement, direct observation or tabulation. Use of Internet for primary data collection is still in its infancy.

SECONDARY SOURCE:Secondary data is the data that already exists which has been collected by some other person or organization for their use, and is generally made available to other researcher free or at a concessional rate. Like by companies exiting datas, by brochures, by websites, by books etc.

SAMPLING SIZE AND METHODS

SAMPLE:A sample is a part of the total population. It can be an individual element or a group or elements selected from the population. Although it is a subset, it is representative of the population and suitable for research in term of cost, convenience and time. The sample group can be selected based on a probability or a non-population approach. A sample usually consists of various units of the population. The size of sample is represented by n. And for this management thesis I have taken sample size n as 100.

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Sampling is the act, process, or technique of selecting a representative part of a population for the purpose of determining the characteristics of the whole population. In other words, the process of selecting a sample from a population Using special technique is called sampling.

Sampling Size:the sample size plays a crucial role in the sampling process. There are various ways to classifying the techniques used in determining the sample size. A sample size is denoted by (n). And for removal of any sampling error the size of sample should be approx. n => 100.

Sampling techniques:Random sampling method:- A sampling process where each element in the target population has an equal chance or probability of inclusion in the sample is known as simple random techniques.

BENEFITS OF RESEARCH TO THE ORGANIZATION

They will be able to detect any pitfall in their working process. They will be able to monitor their several external factors such as political, economical, social, technological change which will consequently affect their productivity as well as profitability.

This provides an opportunity to apply the concept learnt learnt in the learnt in the classroom to real life situation.

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LIMITATIONS OF THE STUDY

All the collected data Depends on the questionnaire. The study is based on the data collected in the Alwer city only, which is limited. There should be any response bias because it gives the wrong conclusion. Less response due to more open ended question. In close-ended questionnaire, the option might not reveal the true feeling of the participants. Time constraints: There was limited time each day and lots of task to be performed (i.e. to prepare various reports, to spend lot of the time in the company & with our company guide to increase our own knowledge and completion of the tasks given by our faculty Guide). Time Consuming; Contacting each and every customer and waiting for the deserving candidates utilizes most of the time. Very few people tend to give correct answers of the questions to be asked, so that was a very mind-boggling task to fulfill the questionnaires without any response bias from each and every candidate.

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DATA ANALYSIS AND INTERPRETATIONS

1). What you think that why there is a need of insurance? a) For tax benefits. b) For future protection.

c) For saving/ Investment. d) Others. On survey it was found that out of 100 respondents, majority of the person (35%), 30% have taken plans for tax savings, 20% have plans for future protection and 15% for others. have taken insurance plans for saving/investment plan

Need of insurance plan For tax benefits For future protection For saving/Investment Others 30% 20% 35% 15%

NEED OF INSURANCE

Others 15%

For tax benefits 30%

For saving/In vestment 35%

For future protectio n 20%

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2)

Which Plan are more in demand now ? a) Investment plan c) Pension plan b) Protection plan d) others

Sources of information found that 33% respondents have taken insurance for investment plans, 29% for protection plan, 26% for pension plan and 12% for others. Comparative Analysis of Insurance Plan. Investment plan Protection plan Pension plan others 33% 29% 26% 12%

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(3) How do you approach to the customers? a) Direct Marketing c) Personal selling b) Advertising d) Through References Approach to the customers Direct Marketing Advertising Personal selling Through References 15% 35% 30% 20%

Approach to the customer

58

Through Referenc es 20%

Direct Marketin g 15%

Personal selling 30%

Advertisi ng 35%

Traditional Plan Vs Investment Plan Regarding Insurance Plan

Traditional plan Vs Investment plan Regarding Insurance plans. Investment plan Traditional plan 60% 40%

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70% 60% 50% 40% 30% 20% 10% 0% traditional Investment plan

4) What you find is more effective Personal selling or Advertising ? a) Personal plan b) Advertising

More effective

It is found that advertisement is more effective than personal selling.

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Personal plan 45% Advertisement 55%

5) Do you have any future plans to collaborate with some agencies or not? a) Yes b) No

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Future Plan Yes No 45% 55%

6) How do you motivate your Insurance Advisors/Agents? a) Through Rewards b) Incentives 62

c) Through promotions

d) others

On survey it was found that most of the insurance companies motivate the insurance advisors or agent through incentives (35%), 30% through rewards, 20% through 20%, and 15% others.

Need of insurance plan Through Rewards Incentives Through Promotions Others 30% 35% 20% 15%

Through Rewards 30% Through romotions 20%

Incentives 35% Others 15%

SWOT ANALYSIS OF HDFC LIFE INSURANCE

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STRENGTHS
Strong tie up Brand Equity Strong Network Huge Customer Database Strong Financial Base

WEAKNESSES
Low Customer awareness Less promotion

OPPORTUNITIES
Large uninsured population Network Building Targeting the rural segment

THREATS
Government policies Cut throat competition Low customer awareness

BOTH ARE INTERNAL FACTORS:-

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S = W=

Indicate for Strength. Indicate for Weakness.

BOTH ARE EXTERNAL FACTORS:O= T= Indicate for Opportunity. Indicate for threat.

The Strength of HDFC company is : Maximum profit Lower Risk

The Weakness of HDFC company is : Lower class people.

The Opportunity HDFC company is: A large ensured insurance population. Increases awareness in rural market. Increasing income of people. The threat of HDFC company is: Intense competition. Many player unaware. Mostly saturated market.

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CONCLUSIONS

On survey it was found that out of 100 respondents,majority of the person have taken insurance 36% and only 64% people have taken any other type of Insurance.

Source of information found that 33% respondent have taken Insurance from ICICIPRDENTIAL, 29% from SBI, 26% from HDFCSL and 12% from other. These show that ICICIPRUDENTIAL has given more Insurance (33%) in Comparison to others.

It was observed that 31% respondents wants to take Insurance due to less interest rates, 29% respondents take due to less Formalities, 25% take due to no securities and 15% respondent satisfied with other services. This shows that people take personal loan according to the factor, which influence them.

It was observed that majority of the person have taken personal Loan unto 15 lakes. And only 15% respondents have taken personal Loan above 15 Lakes.

It was observed that majority of the respondent have taken personal Loan for the purpose of Child education (42%) and marriage in the family (38%) and minority of the respondents have taken personal Loan for the purpose of Renovation of Home (11%) and for other purpose (9%).

It was observed that majority of the respondent have taken personal Loan for the Time Period of 24 to 36 months (38%) and 36 to 60 months (32%) and minority of the respondents have taken personal Loan for the time Period of 12 to 24 months (245) and greater than 60 months (9%).

It was observed that majority of the respondent have taken personal Loan at a Rate of Interest in Between 20 to 25% (45%) and Less than equals to 15%(32%) and minority of the respondents have Personal Loan at a Rate of Interest in Between 25 to 30 % (18%) and Greater than 30% (5 66

RECOMMENDATIONS AND SUGGESTIONS

As the people think that insurance is a tool to protect their family & a tax saving device. They are aware of the fact & realizing its, importance. The company should try to expand & build up its infrastructure because there is a large potential for insurance in India.

Company should come up with its branch in Chennai. With the objective and goals to meet the demands & expectations of the public. Because the entrance of private players will increase the competition and it would be a tough task to secure a good position in market.

Since HDFC Standard Life Insurance Company Ltd is leading with several companies policies it should be easy for them to penetrate into the market and secure a good position if they pay greater attention to the service part provided to their customer and thereby forming a long and trusted relationship.

As seen from the survey that at present 70% of the customer are having insurance policy out of which 87.5% of the customer are planning for new investments. So it can be a good potential for the company and they should make an attempt to trap these customers. 43% of the customer is even ready to go for insurance if a service provider away from their home is providing it. But intend they should provide good products and services. The company should try to convince these customers and get them in its favor.

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QUESTIONNAIRES
1) What you think that why there is a need of insurance?

A) For Tax Benefits. C) For Saving/Investment.

B) For Future Protection. D) Others.

2) Which plan are more in demand now?

A) Investment plan C) Pension plans

B) Protection plans D) Others

3) How do you approach to the customers?

a) Direct Marketing c) Personal selling

b) Advertising d) Through References

4) What you find is more effective personal selling or Advertising?

a) Personal selling

b) Advertising

5) Do you have any future plans to collaborate with some agencies or not?

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a) Yes

b) No

6) How do you motivate your Insurance Advisors/ Agents?

a) Through Rewards c) Through Promotions

b) incentives d) Others

7) ARE YOU EMPLOYED? YES NO

If YES, only then proceed 8) DO YOU HAVE ANY INSURANCE POLICY? YES NO

9) WHICH INSURANCE POLICY DO YOU HAVE? LIFE NON-LIFE BOTH

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REFRENCES
1. Quarterly Review, Market Linked Insurance Plans, January 1,2004 to March 31,2004, HDFC sl Life Insurance Company Ltd. 2. Advisor Manual, HDFC sl Life Insurance Company Ltd. 3. Product Manual, HDFC sl Life Insurance Company Ltd. 4. L.M.Bhole, pg.200.214. 5. P.N. Varshney and D.k. Mittal, Insurance Companies, Indian Financial System, 2004,pg.2.166-2.177. 6. Deepa Venkatraghvan and Candice Zechariahs Insured for Success, the Economic Times New Delhi, September 6,2004 pg.6. 7. S.J.Gidwani, The Life & Time of Insurance:, The Economic Times New Delhi, September 6,2004 pg.6. Insurance Companies, Financial Institutes and Markets, 1999,

Internet references :

1. 2. 3. 4. 5.
Book

www.irdaindia.org www.HDFCsl.com www.hindu.com www.hdfcbank.com www.sbibank.com

Marketing management by Philip Kotler, Thirteenth Edition

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