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Vashali Jangra
SESSION ( 2014-2017 )
DEPARTMENT OF MANAGEMENT
INSTITUTE OF MANAGEMENT
&TECHNOLOGY AMBALA (AIMT)
Declaration
T h i s p r o je c t t i t l e d
PRODUCT
partial
Bachelor
Of
fulfillment
Business
of
requirements
Ad m i n i s t r a t i o n
for
t he
d e gr e e
a wa r d
from
of
G ur u
N a n a k I n st i t u t e o f Ma n a g e m e n t an d Tec h n o l o g y, a ffi l i a t e d t o
P u n ja b Tec h n i c a l U n iv e r s i t y J a l a n d ha r
ACKNOWLEDGEMENT
A t t h e o u t se t , I wo u l d l i k e t o t h a n k t h e s t a ff o f K O TAK
MAHINDRA
BANK
operating me
in
for
my
giving
pr o je c t
me
the
and as
a p pr o v a l
we l l
and
co-
as giving me
g u i d a n ce i n t h e p r o b l e m s f a c e d .
A h e a r t f e l t t h a n k t o t h e m a n y r e s p o nd e n t s s u r v e ye d wh o s e
i d e a s , cr i t i c a l i n s i g h t s a n d s u g ge s t i o n s h av e b e e n i nv a lu a b l e
in the preparation of this report.
EXECUTIVE SUMMARY
In todays corporate and competitive world, I find that insurance sector has
the maximum growth and potential as compared to the other sectors.
Insurance has the maximum growth rate of 70-80% while as FMCG sector
has maximum 12-15% of growth rate. This growth potential attracts me to
enter in this sector and KOTAK LIFE INSURANCE has given me the opportunity
to work and get experience in highly competitive and enhancing sector.
Companies now are tapping a lot of ways to capture the market and hence
adopting different ways to hold the large portion of the market.
My summer training learning helped me a lot to complete my project in order
to learn a lot of things of the corporate. As a project trainee the first task
given to me was to understand the basic behaviour of the consumer in order
to manipulate the market according to our target competition. For this I
developed a questionnaire and I did my survey in Jaipur city.
This job training also helped me a lot in understanding the process of
building effective marketing channels for life insurance products by
establishing network of life insurance advisors.
The success story of good market share of different market organizations
depends upon the availability of the product and services near to the
customer, which can be distributed through a distribution channel. In
Insurance sector, distribution channel includes only agents/advisors or
agency holders of the company. If a company like KOTAK LIFE INSURANCE,
ICICI PRUDENTIAL, RELIANCE LIFE INSURANCE, TATA AIG, MAX etc has
adequate agents in the market, they can capture big market as compared to
the other companies.
DECLARAION BY CANDIDATE
I VISHAL GIRDHAR hereby declare that, the project entitled SALES PROMOTION
( a study conducted at Bharti Airtel ltd) assigned to me for the partial fulfillment of
BBA degree ofKurukshetra University, Kurukshetra. The work is originally completed
by me and information provided in the study is authentic to the best of my
knowledge.
This study has not been submitted to any other institution or university for the
award of any degree.
VISHAL
GIRDHAR
SUPERVISORS CERTIFICATE
This is to certify that the research work entitled SALES PROMOTION ( a study
conducted at Bharti Airtel ltd. ) undertaken by VISHAL GIRDHAR. , a student of
Bachelor of Business Administrator , Shri Atmanand Jain institute of Management
and Technology, Ambala City , was carried out under my guidance and supervision.
The research works is candidates original work, and this project report has not been
submitted to any other university for any course.
MS.SIMRAN PREET
Asst. Prof.
AIMT
TABLE OF CONTENTS
CHAPTER
-1
INTRODUCTION
The story of insurance is probably as old as the story of mankind. Tendency
of a human being to secure themselves against loss and disaster has been
from the starting of world. They sought to avert the evil consequences of fire
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 its beginnings date back almost 6000 years as per
records.
Functions of insurance:
General Insurance
Life insurance
GENERAL INSURANCE
Insurance of the non life assets are called general insurance, this includes
loss of asset against water, fire, earthquake etc. With the opening up of the
Indian Market in Insurance sector for private players, in General Insurance
the monopoly of the general Insurance public sectors companies has been
broken. With the entrance of the new private player market innovative
technique has been introduced to capture the market. In general Insurance
around 17% of the market has been captured by the private players.
General Insurance is a sector which alone has many type of insurance
coverage in it like Fire Insurance, Marine Insurance, motor Insurance, Liability
Insurance, Engineering Insurance etc.
The Non Life Insurers:
HDFC Chub
LIFE INSURANCE
Life insurance as risk cover: Insurance is all about risk cover and
protection of life. Insurance provides a unique sense of security that no
other form of invest can provide.
Saving for old age: After retirement the earning capacity of a person
reduces. Life insurance enables a person to enjoy peace of mind and a
sense of security in his/her old age.
Tax Benefit: Under the Income Tax Act, premium paid is allowed as a
deduction from the total income under section 80C.
industry. The IRDA was incorporated as a statutory body in April, 2000. The
key objectives of the IRDA include promotion of competition so as to enhance
customer satisfaction through increased consumer choice and lower
premiums, while ensuring the financial security of the insurance market. The
IRDA opened up the market in August 2000 with the invitation for application
for registrations. Foreign companies were allowed ownership of up to 26%.
The Authority has the power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed various regulations
ranging from registration of companies for carrying on insurance business to
protection of policyholders interests.
Role of IRDA:
39
CORP. BANKS
MUTUAL FUNDS
NBFCS
GOVT. BONDS
13
INSURANCE
13
21
CURRENCY
6
Source: www.avivaindia.com
bonuses but changed to greater return from the investments. With the
introduction of the unit linked insurance policies these companies are
investing the money in different investment instruments like shares, bonds,
debentures, government and other securities. People are demanding for
higher returns with the life risk cover and private companies are giving 3040% average growth per annum. These life-insurance companies have every
kind of policies suiting every need right from financial needs of, marriage,
giving birth and rearing up a child, his education, meeting daily financial
needs of life, pension solutions after retirement. These companies have
every aspects and needs of our life covered along with the death-benefit.
In India only 25% of the population has life insurance. So Indian lifeinsurance market is the target market of all the companies who either want
to extend or diversify their business. To tap the Indian market there has been
tie-ups between the major Indian companies with other International
insurance companies to start up their business. The government of India has
set up rules that no foreign insurance company can set up their business
individually here and they have to tie up with an Indian company and this
foreign insurance company can have an investment of only 24% of the total
start-up investment.
Indian insurance industry can be featured by:
Today, the Indian life insurance industry has more than a dozen private
players, each of which are making strides in raising awareness levels,
introducing innovative products and increasing the penetration of life
insurance in the vastly underinsured country. Several of private insurers have
introduced attractive products to meet the needs of their target customers
and in line with their business objectives. The success of their effort is that
they have captured over 28% of premium income in five years.
The biggest beneficiary of the competition among life insurers has
been the customer. A wide range of products, customer focused service and
professional advice has become the mainstay of the industry, and the Indian
customers forms the pivot of each companys strategy. Penetration of life
insurance is beginning to cut across socio-economic classes and attract
people who have never purchased insurance before.
03
04
05
06
07
PRIVATE PLAYER
10
20
40
60
160
8.9
Japan
8.3
Korea
7.3
United States
4.1
Malaysia
3.6
India
3.0
China
1.8
Brazil
1.3
Source: www.indianinsuranceresearch.com
The high volumes in the insurance business help spread risk wider,
allowing a lowering of the rates of the premium to be charged and in
turn, raising profits. When there is a bigger base, the probabilities
become more predictable, and with system wide risks balanced out,
profits improve. This explains the current scenario of mergers,
acquisitions, and globalization of insurance.
Insurance play a crucial role in the commercial lives of nations and act
as the lubricants of economic activities. Insurance firms help to spread
the potentially financial consequences of risk among the large number
of entities, to mobilize and distribute savings for productive use,
facilitate investment, support and encourage external trade, and
protect economic entities against external risk.
Investment Management
Investment operations are often considered incidental to the business of
insurance, and have traditionally viewed as secondary to underwriting. In the
past risk management was the most important part of business, whereas
today the focus has shifted to fund management. Investment income is a
large component of insurance revenues, skilful and careful management of
funds. Insurance is a business of large numbers and generates huge amount
of funds over time. These funds arise out of policyholder funds in the case of
life insurance, and technical and free reserves in the non-life segments. Time
lag between the procurement of premium and the payment of claim provides
an interval during which the funds can be deployed to generate income.
Insurance companies are among the largest institutional investors in the
world. Assets managed by insurance companies are estimated to account for
over 40% of the worlds top ten asset managers.
Returns on investments influence the premium rates and bonuses and
hence investment income will continue to be an important component of
insurance company profits. In life insurance, benefits from insurance profits
accrue directly to policy holders when it is passed on to him in the form of a
bonus. In non life insurance the benefits are indirect and mostly by the
creation of an investment portfolio. Investment income has to compensate
for underwriting results which are increasingly under pressure. In the case of
insurance, the difference between revenue and the expenses is known as
operating surplus.
Revenue = Premium
payable
on
Net investment income includes income from trading in and holding stock
market securities including government securities, special deposits with the
central government, loans to several public utilities and service providers in
state government.
Insurance premium collected is converted in a pool of fund then
divided in to four expenses.
Term life insurance policies: This type of insurance covers risk only
during the selected term period. If the policy holder survives the term,
risk cover comes to an end. These types of policies are for those
people who are unable to pay larger premium required for endowment
and whole life policies. No surrender, loan or paid up values are in such
policies.
Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the
policyholder. In this policy the insured amount and the bonus is
payable only to nominee on the death of policy holder.
Banks: Banks in India are all pervasive, especially the public sector
banks. Many insurance companies are selling their products through
banks. Companies which are bank owned, they are selling their
products through their parent bank. The public sector banks, with their
vast branch networks, are helpful to insurance companies. This
channel of selling insurance is known as Bank assurance.
INSURANCE COMPANY
ICICI Prudential
SBI Life
Birla Sun Life
ING Vysya Bank
ASSOCIATE BANKS
ICICI Bank, Bank of India, Citibank,
Allahabad Bank, Federal Bank, South
Indian Bank, Punjab and Maharashtra
Cooperative Bank
State Bank of India
Deutsche Bank, Citibank, Bank of
Rajasthan, Andhra Bank
Vysya Bank
Met Life
CHAPTER 2
RESEARCH
METHOLOGY
RESEARCH METHODOLOGY
TITLE
To determine customer buying behavior
segmentation for Kotak Life Insurance.
with
focus
on
OBJECTIVES
The objectives of the present study are as following:
market
RESEARCH METHODOLOGY
All the findings and conclusions are based on the survey done in the working
area within time limit. I tried to select a sample representative of the whole
group during my job training. I have collected data from 100 respondents for
studying Customer Buying Behaviour and Market Segmentation, selected
randomly from different areas in Jaipur such as:
For recruitment of Life insurance Advisors, I have collected data from 200
respondents from following groups:
Chartered Accountants
Tax Consultants
Businessmen
Share Brokers
Lawyers
Working Professionals
House Wives
Retired Persons
RESEARCH DESIGN
Research was initiated by examining the secondary data to gain insight into
the problem. The primary data is evaluated on the basis of the analysis of
the secondary data.
DEVELOPING THE RESEARCH PLAN
The data for this research project has been collected through self
administration. Due to time limitation and other constraints direct personal
interview method is used. A structured questionnaire was framed as it is less
time consuming, generates specific and to the point information, easier to
tabulate and interpret. Moreover respondents prefer to give direct answers.
In questionnaires open ended and closed ended, both the types of questions
has been used.
COLLECTION OF DATA
Secondary Data: It was collected from internal sources. The secondary
data was collected on the basis of organizational file, official records, news
papers, magazines, management books, preserved information in the
companys database and website of the company.
Primary data: Individual respondents, Chartered Accountants, Tax
Consultants, Insurance Agents, Auto loan providers were personally visited
and interviewed. They were the main source of Primary data. The method of
collection of primary data was direct personal interview through a structured
questionnaire.
SAMPLING PLAN
Since it is not possible to study whole population, it is necessary to obtain
representative samples from the population to understand its characteristics.
SAMPLE SIZE
Marketing mix.
Positioning.
Value addition.
Segmentation.
Branding.
Effective pricing.
Government policies.
Growth in population.
Consumer attitudes.
Learn how to find a proper perspective and how to turn off all the
signals that cause people not to buy from you.
Learn how to act when you meet a client for the first time.
Learn how the order in which you explain the types of policies can
double your income.
COMPANY PROFILE
(About Kotak Mahindra Old Mutual Life Insurance)
SIGNIFICANT CHANGES
BUSINESS DEVELOPMENT
1985
Trade Finance
1986
Corporate Finance
1990
Car Finance
1991
Investment Banking
1992
Goldman Sachs
1995
Ford Credit
1997
Consumer Finance
1998
Mutual Fund
2001
2003
Life Insurance
Bank
As stated above Kotak Mahindra Life Insurance has Joint venture with Old
Mutual plc.
Old Mutual Plc is the 12th largest Insurance Company in the world. It has its
base of over 4 million life assurance policyholders. It has one of the best
Payouts among insurers in the world. It has one of the best Solvency
Ratios among insurers in the world. A FTSE 100 financial services group and
ranks as a Fortune Global 500 company.The Old Mutual group manages in
excess of 239 billion pounds in funds (Dec06). The company is 160 years old
and has prominent presence in the United States and the United Kingdom.
Now the question arises that why for the business in India of life insurance
Kotak Mahindra chose Old Mutual plc and vice versa.
Features of Kotak Mahindra and Old Mutual plc at a glance:
KOTAK MAHINDRA
Brand Equity
Domain Knowledge
Branch Network
Technology
Entrepreneur Employees
Product Innovation
Training Expertise
Global Perspectives
Distribution Associates
PRODUCTS
Term Plans
Endowment Plans
Group
Employee Benefits
Rural
INSURER
Bajaj Allianz
7.56
ICICI Prudential
7.35
2.87
SBI Life
2.31
1.89
Tata AIG
1.29
1.23
Aviva
1.14
1.11
10
ING Vysya
0.79
11
Reliance Life
0.54
12
Met Life
0.40
13
Sahara Life
0.06
14
Shriram Life
0.03
CFO: G.MURALIDHAR
MANAGI
NG
DIRECTO
R
CFO
SALES
HEAD
MARKETI
NG
HEAD
APPOINT
ED
HR &
ADMIN.
CIO
ACTUARY
TRAININ
G
HEAD
AREA MANAGER
BRANCH OPERATIONS
INCHARGE
SALES MANAGER
OPERATION
EXECUTIVE
ASST. SALES
MANAGER
OPERATIONS
LIFE ADVISOR
CHAPTER 3
DATA ANALYSIS AND
INTERPRETATION OF
DATA
DATA VALIDATION
CUSTOMER BUYING BEHAVIOUR & MARKET SEGMENTATION
FOR
LIFE INSURANCE PRODUCTS
1.
2.
4.
5.
6.
7.
8.
9.
DATA VALIDATION
RECRUITMENT OF LIFE INSURANCE ADVISORS
FOR
KOTAK LIFE INSURANCE, JAIPUR
1.
2.
3.
4.
5.
6.
7.
8.
9.
RECOMMENDATIONS
Life.
Marketing in terms of the media via advertisements on Television to
small commercials on FM, hoardings and signage etc. has to be made
because there were respondents who havent even heard about Kotak
Life Insurance.
Awareness camp for sub-urban area should be focused.
State and Central Government employees should be targeted because
of reasons like:
They dont have Life Insurance cover other than that provided by
CONCLUSIONS
During the data collected, it has been found that people have great
awareness about various companies but a lot more has to be done,
especially by smaller companies like Kotak Life Insurance to establish their
market presence.
People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money.
People in general have been influenced by the marketing activities of
insurance companies. A high penetration of print, radio and TV ad campaigns
over the years is beginning to have its impact now.
Another important trend was in terms of people viewing insurance as a tax
saving and investment instrument as much as protective one.
The general satisfaction levels among public with regards to policy and
agents still requires improvement. Here lies the opportunity for a relatively
new comer like Kotak Life Insurance. LIC has never been known for prompt
service or customer oriented methods but Kotak Life Insurance can build its
reputation based on these factors.
Dear Sir/Madam,
I am a BBA student of Punjab technical university,
Jalandhar , and presently doing a market survey on Customer Buying
Behaviour with a focus on Market Segmentation for Life Insurance Products.
I request you to kindly furnish information on the questionnaire below.
I assure you that your identity shall not be disclosed and the data shall be
used only for academic purpose.
QUESTIONNAIRE
b) NO
c) 10 20 years
other_______________
b) 5 10 years
d)
any
Q6) Which feature of Life Insurance policy will you consider while
buying?
a) Money Back Guarantee
b) Larger Risk Coverage
c) Low Premium
d) Companys Credibility
Q7) How have you bought / would buy a Life Insurance policy?
a) Customer approaching insurance company / agent
b) Insurance company / agent approaching the customer
b) Satisfied
d)
Not
b)
25
d) > 45 years
35
THANK YOU
Respondents Profile
(Optional):
NAME:
AGE:
GENDER:
EDUCATIONAL QUALIFICATION:
PROFESSION:
Other)
(Business,
Professional,
Service,
Any
2-5 lakhs,
5-10 lakhs,
>10
Address
(For
______________________________________
correspondence):
______________________________________________________________
Contact Nos. : ___________________________________________________
E mail: _________________________________________________________
QUESTIONNAIRE
Q1) Educational Qualification
Undergraduate
Graduate
Post Graduate
Q3) Occupation
Business
Profession
Service
Any
_____________________________________________________
Other
(Please mention below the type of business/ profession you are in,
in case of service please mention your organisation name and
designation)
_________________________________________________________________
which
Q9) How much time can you spare for this business opportunity?
a) Few hours daily
holidays
b)
Weekends
THANK YOU
and