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TABLE OF CONTENTS

Sr.No CONTENTS PAGE


1. ACKNOWLEDGEMENT
2. INTRODUCTION

3. SECTOR PROFILE

4. COMPANY PROFILE
5. OBJECTIVES OF STUDY
6. RESEARCH METHODOLOGY
7. DATA ANALYSIS & INTERPRETATION
8. OBSERVATIONS & FINDING
9. PROBLEMS IN THE EXECUTIVE
TRAINING
10. LEARNING THE EXECUTIVE TRAINING

SUGGESTIONS
INTRODUCTION
INTRODUCTION

A marketing strategy is a process that can allow an organization to concentrate its


(always limited) resources on the greatest opportunities to increase sales and
achieve a sustainable competitive advantage.

Marketing strategy as a key part of the general corporate strategy marketing


strategy is most effective when it is an integral component of corporate
strategy, defining how the organization will engage customers, prospects and
competitors in the market arena for success. It is partially derived from
broader corporate strategies, corporate missions, and corporate goals. They
should flow from the firm's mission statement. They are also influenced by a
range of micro environmental factors.

Marketing strategy and sectarian tactics and actions


A marketing strategy also serves as the foundation of a marketing plan. A
marketing plan contains a set of specific actions required to successfully
implement a marketing strategy. For example: "Use a low cost product to attract
consumers. Once our organization, via our low cost product, has established a
relationship with consumers, our organization will sell additional, higher-margin
products and services that enhance the consumer's interaction with the low-cost
product or service."

A strategy consists of well thought out series of tactics. While it is possible to


write a tactical marketing plan without a sound, well-considered strategy, it is not
recommended. Without a sound marketing strategy, a marketing plan has no
foundation. Marketing strategies serve as the fundamental underpinning of
marketing plans designed to fill market needs and reach marketing objectives[3]. It
is important that these objectives have measurable results.

A good marketing strategy should integrate an organization's marketing goals,


policies, and action sequences (tactics) into a cohesive whole. Many companies
cascade a strategy throughout an organization, by creating strategy tactics that then
become strategy goals for the next level or group. Each group is expected to take
that strategy goal and develop a set of tactics to achieve that goal. This is why it is
important to make each strategy goal measurable.

Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned. See strategy dynamics.

Types of marketing strategies


Every marketing strategy is unique, but if we abstract from the individualizing
details, each can be reduced into a generic marketing strategy. There are a number
of ways of categorizing these generic strategies. A brief description of the most
common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based
on their market share or dominance of an industry. Typically there are three types
of market dominance strategies:
 Leader
 Challenger
 Follower
Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm’s sustainable competitive advantage.
 Cost leadership
 Product differentiation
 Market segmentation
Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
 Pioneers
 Close followers
 Late followers
Growth strategies - In this scheme we ask the question, “How should the firm
grow?”. There are a number of different ways of answering that question, but the
most common gives four answers:

 Horizontal integration
 Vertical integration
 Diversification
 Intensification
A more detailed schemes uses the categories:
 Prospector
 Analyzer
 Defender
 Reactor
 INSURANCE NEED

Why is insurance necessary? The question contains the answer within itself. After
all, life is fraught with tensions and apprehensions regarding the future and what it
holds for the individual. Despite all the planning and preparation one might make,
no one can accurately guarantee or predict how or when death might result and the
circumstances that might ensue in its aftermath.
We are not saying that life and existence are constantly fraught with danger and
uncertainty. But then it is essential that you plan for the future. The chances for a
fatality or an injury to occur to the average individual may not be particularly high
but then no one can really afford to completely disregard his or her future and
what it holds.
People generally regard insurance as a scheme when and where you have to lose a
lot to gain a little. Nevertheless, insurance is still the most reliable tool an
individual can use to plan for his future.
And just why is it necessary to plan for the future with Insurance?
An Overview
Insurance business is divided into four classes:
1) Life Insurance business
2) Fire
3) Marine
4) Miscellaneous Insurance.
Life Insurers transact life insurance business; the rest is transacted by General
Insurers. No composites are permitted as per law.
The business of Insurance essentially means defraying risks attached to any
activity over time (including life) and sharing the risks between various entities,
both persons and organisations. Insurance companies (ICs) are important players
in financial markets as they collect and invest large amounts of premium.
Insurance products are multi purpose and offer the following benefits:

1. Protection to the investors

2. Accumulate savings
3. CHANNELISE SAVINGS INTO SECTORS NEEDING HUGE LONG TERM
INVESTMENTS.
ICS RECEIVE, WITHOUT MUCH DEFAULT, A STEADY CASH STREAM OF
PREMIUM OR CONTRIBUTIONS TO PENSION PLANS. VARIOUS
ACTUARY STUDIES AND MODELS ENABLE THEM TO PREDICT,
RELATIVELY ACCURATELY, THEIR EXPECTED CASH OUTFLOWS.
LIABILITIES OF ICS BEING LONG-TERM OR CONTINGENT IN NATURE,
LIQUIDITY IS EXCELLENT AND THEIR INVESTMENTS ARE ALSO
LONG-TERM IN NATURE. SINCE THEY OFFER MORE THAN THE
RETURN ON SAVINGS IN THE SHAPE OF LIFE-COVER TO THE
INVESTORS, THE RATE OF RETURN GUARANTEED IN THEIR
INSURANCE POLICIES IS RELATIVELY LOW. CONSEQUENTLY, THE
NEED TO SEEK HIGH RATES OF RETURNS ON THEIR INVESTMENTS IS
ALSO LOW. THE RISK-RETURN TRADE OFF IS HEAVILY TILTED IN
FAVOR OF RISK. AS A COMBINED RESULT OF ALL THIS, INVESTMENTS
OF INSURANCE COMPANIES HAVE BEEN LARGELY IN BONDS
FLOATED BY GOI, PSUS, STATE GOVERNMENTS, LOCAL BODIES,
CORPORATE BODIES AND MORTGAGES OF LONG TERM NATURE. THE
LAST PLACE WHERE INSURANCE COMPANIES ARE EXPECTED TO BE
OVER-ACTIVE IS BOURSES. LATELY ICS HAVE VENTURED INTO
PENSION SCHEMES AND MUTUAL FUNDS ALSO. HOWEVER, LIFE
INSURANCE CONSTITUTES THE MAJOR SHARE OF INSURANCE
BUSINESS. LIFE INSURANCE DEPENDS UPON THE LAWS OF
MORTALITY AND THERE LIES THE DIFFERENCE BETWEEN LIFE AND
GENERAL INSURANCE BUSINESSES. LIFE HAS TO EXTINGUISH
SOONER OR LATER AND THE CLAIM IN RESPECT OF LIFE IS CERTAIN.
IN CASE OF GENERAL INSURANCE, HOWEVER, THERE MAY NEVER BE
A CLAIM AND THE AMOUNT CAN NEVER BE ASCERTAINED IN
ADVANCE. HENCE, LIFE INSURANCE INCLUDES, BESIDES COVERING
THE RISK OF EARLY HAPPENING OF AN EVENT, AN ELEMENT OF
SAVINGS ALSO FOR THE BENEFICIARIES. PENSION BUSINESS ALSO
DERIVES FROM LIFE INSURANCE IN AS MUCH AS THE PENSION
OUTGO AGAIN DEPENDS UPON THE LAWS OF MORTALITY. THE
FORAYS MADE BY INSURANCE COMPANIES IN THIS AREA ARE,
THEREFORE, NATURAL COROLLARY OF THEIR BUSINESS.
SECTOR PROFILE
INSURANCE IN INDIA1

Insurance in India started without any regulations in the nineteenth century. It was
a typical story of a colonial era: a few British insurance companies dominating the
market serving mostly large urban centers. After the independence, the Life
Insurance Company was nationalized in 1956, and then the general insurance
business was nationalized in 1972. Only in 1999 private insurance companies were
allowed back into the business of insurance with a maximum of 26 per cent of
foreign holding (World Bank Economic Review 2000). The entry of the State
Bank of India with its proposal of bank assurance brings a new dynamics in the
game. On July 14, 2000 Insurance Regulatory and Development Authority bill was
passed to protect the interest of the policyholders from private and foreign players.
The following companies are entitled to do insurance business in India.

The private insurance joint ventures have collected the premium of Rs.1019.09
crore with the investment of just Rs.3, 000 crore in three years of liberalization.
The private insurance players have significantly improving their market share
when compared to 50 years Old Corporation (i.e.LIC). As per the figures compiled
by IRDA, the Life Insurance Industry recorded a total premium underwritten of
Rs. 10,707.96 crore for the period under review. Of this, private players
contributed to Rs.1, 019.09 crore, accounting for 10 percent. Life Insurance
Corporation of India (LIC), the public sector giant, continued to lead with a
premium collection of Rs.9,688.87 crore, translating into a market share of 90 per
cent. In terms of number of policies and schemes sold, private sector accounted for
only 3.77per cent as compared to 96.23 per cent share of LIC (The Economic
Times, 21 March, 2004).

1
http://www.allconferences.com/conferences/20060509074525/
The ICICI Prudential topped among the private players in terms of premium
collection. It recorded a premium of Rs. 364.9 crore and a market share of 25 per
cent, followed by Birla Sun Life with a premium under- written Rs.170 crore and a
market share of 15 percent, HDFC Standard with 132.7 crore and Max New York
Life with Rs.76.8 crore with a market share of approximately 15 per cent each.
Unlike their counterpart in the life insurance business, private non-life insurance
companies have not yet started addressing the retail market. All is set to change in
the coming years. Like in the banking sector, non-life insurance companies will
soon have no choice but to focus on individual buyers.

In case of private non-life insurance players, that their market share rose to 14.13
per cent, recording a growth of 70.75 per cent on an annual basis, while the market
share of public sector stood at 85.87 per cent, registering a marginal growth of
6.34 per cent. The overall market has recorded a growth of 12.32 per cent by the
end of January 2004. Among the private non-life insurance players, ICICI
Lombard topped the list with a premium collection of Rs.403.62 crore in one year
period with a market share of 3.05 per cent and with an annual 131.6 per cent,
followed by Bajaj Allianz with a premium of Rs.385.02 crore and 2.91 per cent
market share and Tata AIG with 300.49 crore premium and 2.27 per cent market
share with an annual growth rate of 62.60 per cent.

Among the public sector players, New India garnered a market share of 24.38 per
cent, Rs.3,229.49 crore premium and an annual growth rate of 0.38 per cent,
followed by National with a market share of 21.43 per cent, Rs.2,839.11 crore
premium and an annual growth rate of 19.88 per cent, United India with a market
share of 19.47 per cent (Rs.2,578.83 crore premium) and Oriental with a market
share of 18.25 per cent, Rs.2,417.17 crore premium and an annual growth rate of
1.86 per cent. It is significant to note that HDFC Chubb and Cholamandalam have
registered annual growth rates of 4030.26 per cent and 1101.20 per cent
respectively, whereas New India has registered it as 0.38 per cent. If this trend
continues, private insurer would dominate the public sector like New India
Insurance Corporation. It is obviously reflect the insurance sector has facing the
challenges with foreign counter parties as well as private counter parties and lot
more opportunities are prevailing to penetrate the insurance business among the
uncovered people and area of India. Further, it leads to economic development of
the country. In this regard, it assumes greater significance to conduct debate
among the inter- disciplinary persons.
BRIEF HISTORY OF INSURANCE
SECTOR IN INDIA2

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 190 years.

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:

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 taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.

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http://business.mapsofindia.com/insurance/brief-history-of-insurance-sector.html
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., 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:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general 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 investments 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 1st 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.
INSURANCE MARKET IN INDIA3

NON-LIFE INSURANCE MARKET


In December 2000, the GIC subsidiaries were restructured as independent
insurance companies. At the same time, GIC was converted into a national re-
insurer. In July 2002, Parliamant passed a bill, delinking the four subsidiaries from
GIC.

Presently there are 12 general insurance companies with 4 public sector companies
and 8 private insurers. Although the public sector companies still dominate the
general insurance business, the private players are slowly gaining a foothold.
According to estimates, private insurance companies have a 10 percent share of
the market, up from 4 percent in 2001. In the first half of 2002, the private
companies booked premiums worth Rs 6.34 billion. Most of the new entrants
reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are
fraught with a multitude of risks throughout the development, construction and
operation stages. These include risks associated with project implementaion,
including geological risks, maintenance, commercial and political risks. Without
covering these risks the financial institutions are not willing to commit funds to
the sector, especially because the financing of most private projects is on a limited
or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they
also contribute long-term funds. In fact, insurance companies are an ideal source
of long term debt and equity for infrastructure projects. With long term liability,
they get a good asset- liability match by investing their funds in such projects.
3
http://www.indiacore.com/insurance2.html
IRDA regulations require insurance companies to invest not less than 15 percent of
their funds in infrastructure and social sectors. International Insurance companies
also invest their funds in such projects.

Insurance costs constitute roughly around 1.2- 2 percent of the total project costs.
Under the existing norms, insurance premium payments are treated as part of the
fixed costs. Consequently they are treated as pass-through costs for tariff
calculations.

Premium rates of most general insurance policies come under the purview of the
government appointed Tariff Advisory Commitee. For Projects costing up to Rs 1
Billion, the Tariff Advisory Committee sets the premium rates, for Projects
between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the
committee's guidelines; and projects above Rs 15 billion are subjected to re-
insurance pricing. It is the last segment that has a number of additional products
and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one insurer


takes the lead, shouldering about 40-50 per cent of the risk and receiving a
proportionate percentage of the premium. The other companies share the
remaining risk and premium. The policies are renewed usually on an annual basis
through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning once
again to old hands such as NTPC, NHPC and BSES for business.
RE-INSURANCE BUSINESS
Insurance companies retain only a part of the risk (less than 10 per cent) assumed
by them, which can be safely borne from their own funds. The balance risk is re-
insured with other insurers. In effect, therefore, re-insurance is insurer's insurance.
It forms the backbone of the insurance business. It helps to provide a better spread
of risk in the international market, allows primary insurers to accept risks beyond
their capacity, settle accumulated losses arising from catastrophic events and still
maintain their financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been the
major reinsurer. Currently, all insurance companies have to give 20 per cent of
their reinsurance business to GIC. The aim is to ensure that GIC's role as the
national reinsurer remains unhindered. However, GIC reinsures the amount further
with international companies such as Swissre (Switzerland), Munichre (Germany),
and Royale (UK). Reinsurance premiums have seen an exorbitant increase in
recent years, following the rise in threat perceptions globally.

LIFE INSURANCE MARKET


The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of
life insurance products was 19 percent of the total 400 million of the insurable
population. The state owned LIC sold insurance as a tax instrument, not as a
product giving protection. Most customers were under- insured with no flexibility
or transparency in the products. With the entry of the private insurers the rules of
the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9
percent of the market in terms of premium income. The new business premiums of
the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.
Meanwhile, state owned LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the triple
whammy combination that has enabled fledgling private insurance companies to
sign up Indian customers faster than anyone ever expected. Indians, who have
always seen life insurance as a tax saving device, are now suddenly turning to the
private sector and snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are
coining money in new niches that they have introduced. The state owned
companies still dominate segments like endowments and money back policies. But
in the annuity or pension products business, the private insurers have already
wrested over 33 percent of the market. And in the popular unit-linked insurance
schemes they have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. For instance, the average size of a life insurance
policy before privatisation was around Rs 50,000. That has risen to about Rs
80,000. But the private insurers are ahead in this game and the average size of
their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry
average.

Buoyed by their quicker than expected success, nearly all private insurers are fast-
forwarding the second phase of their expansion plans. No doubt the aggressive
stance of private insurers is already paying rich dividends. But a rejuvenated LIC
is also trying to fight back to woo new customers.
COMPARISON OF TERM INSURANCE PREMIUMS (Rs./ Year)
PREMIUM STRUCTURE OF ENDOWMENT PLANS
(RS. /YEAR)
MINIMUM REQUIRED COMPOUND BONUS RATE (IN %)

WHOLE LIFE INSURANCE PREMIUMS (RS./ YEAR)


EQUITY SHARE CAPITAL OF LIFE INSURANCE
COMPANIES

Foreign Indian
Name of the insurer 2003-04 2004-05 Promoter Promoter

Life Insurers
HDFC Standard Life Insurance Co. Ltd. 255.50 320.00 47.52 272.48
ICICI-Prudential Life Insurance Co. Ltd. 675.00 925.00 240.50 684.50
Max New York Life Insurance Co. Ltd. 346.08 466.08 121.18 344.90
Kotak Mahindra Old Mutual Life Insurance Co. Ltd. 151.26 211.76 55.06 26.00
Birla Sun Life Insurance Co. Ltd. 290.00 350.00 91.00 26.00
TATA-AIG Life Insurance Co. Ltd. 231.00 321.00 83.46 237.54
SBI Life Insurance Co. Ltd. 175.00 350.00 91.00 259.00
ING Vysya Life Insurance Co. Ltd. 245.00 325.00 84.50 26.00
Metlife India Insurance Co. Ltd. 160.00 235.00 61.10 173.90
Bajaj Allianz Life Insurance Co. Ltd. 150.07 150.07 39.02 111.05
AMP Sanmar 160.00 217.10 56.45 160.65
AVIVA 242.80 319.80 83.15 236.65
Sahara India 157.00 157.00 0.00 157.00
Sub Total 3238.71 4347.81 1053.93 3293.88
Life Insurance Corporation of India 5.00 5.00 5.00
Total (Life) 3243.71 4352.81 1053.93 3298.88
INVESTMENTS OF LIFE INSURERS IN LIFE FUND
(Rs. In Crore)
2005 2004
PUBLIC SECTOR
LIC (A) 361428.87 304436.88
PRIVATE SECTOR
HDFC STD LIFE 480.77 305.43
MNYL 436.37 241.85
ICICIPRU 970.63 658.45
BSLI 170.06 140.38
TATA AIG 392.76 220.65
KOTAK LIFE 200.67 133.43
SBI LIFE 960.89 367.84
BAJAJ ALLIANZ 382.28 221.91
METLIFE 157.18 120.18
AMP SANMAR 110.71 98.69
ING VYSYA 241.22 75.28
AVIVA 144.95 144.65
SAHARA LIFE 142.48 143.29
TOTAL (B) 4790.98 2872.03
TOTAL (A+B) 366219.85 307308.91
INVESTMENTS OF LIFE INSURERS IN PENSIONS FUNDS
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 11462.03 9244.06
PRIVATE SECTOR
HDFC STD LIFE 151.91 101.68
MNYL 14.03 2.11
ICICIPRU 166.64 127.59
BSLI 0.06 0.00
TATA AIG 76.78 39.79
KOTAK LIFE 13.36 7.54
SBI LIFE 78.97 15.41
BAJAJ ALLIANZ 9.28 3.81
METLIFE 0.21 0.00
AMP SANMAR 50.45 9.83
ING VYSYA 0.00 0.00
AVIVA 0.00 0.00
SAHARA LIFE 0.06 0.00
TOTAL (B) 561.75 307.77
TOTAL (A+B) 12033.78 9551.83
INVESTMENTS OF LIFE INSURERS IN GROUP INSURANCE
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 42639.42 34068.32
PRIVATE SECTOR
HDFC STD LIFE 0.00 0.00
MNYL 7.25 1.35
ICICIPRU 0.00 0.00
BSLI 0.00 0.00
TATA AIG 14.70 0.00
KOTAK LIFE 2.05 0.90
SBI LIFE 10.77 2.92
BAJAJ ALLIANZ 1.27 0.95
METLIFE 2.52 0.44
AMP SANMAR 0.00 0.00
ING VYSYA 0.00 0.00
AVIVA 2.85 0.57
SAHARA LIFE 0.02 0.00
TOTAL (B) 41.43 7.15
TOTAL (A+B) 42680.85 34075.47
INVESTMENTS OF LIFE INSURERS IN UNIT LINKED PLANS
(Rs. In Crore)

2005 2004
PUBLIC SECTOR
LIC (A) 2758.67 209.87
PRIVATE SECTOR
HDFC STD LIFE 290.67 60.91
MNYL 20.44 0.00
ICICIPRU 2337.16 780.07
BSLI 1125.72 474.62
TATA AIG 80.81 12.75
KOTAK LIFE 308.33 53.54
SBI LIFE 3.54 0.00
BAJAJ ALLIANZ 369.24 28.61
METLIFE 1.74 0.00
AMP SANMAR 21.40 0.00
ING VYSYA 78.61 20.81
AVIVA 131.13 47.13
SAHARA LIFE 0.00 0.00
TOTAL (B) 4768.77 1478.43
TOTAL (A+B) 7527.45 1688.31
COMPANY PROFILE
BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates- , Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in
the world and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance

 Is the fastest growing private life insurance company in India.


 Currently has over 3,00,000 satisfied customers
 We have customer care centers in 155 cities with 28000 Insurance
Consultant providing the finest customer service.
 One of India's leading private life insurance companies
Bajaj Allianz General Insurance Company Limited
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto
Limited and Allianz AG of Germany. Both enjoy a reputation of expertise, stability and
strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and


Development Authority (IRDA) certificate of Registration (R3) on May 2nd, 2001
to conduct General Insurance business (including Health Insurance business) in
India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj
Auto holds 74% and the remaining 26% is held by Allianz, AG, Germany.

Bajaj Allianz today has a network of 42 offices spread across the


length and breadth of the country. From Surat to Siliguri and
Jammu to Thiruvananthapuram, all the offices are
interconnected with the Head Office at Pune.
ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial services
providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. At the top of the international group is the holding company,
Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of
 Property and Casualty Insurance,
 Life and Health Insurance,
 Asset Management and Banking.
 ALLIANZ AG- A GLOBAL FINANeCIAL POWERHOUSE
 Worldwide 2nd by Gross Written Premiums - Rs.4,46,654 cr.
 3rd largest Assets Under Management (AUM) & largest amongst Insurance
cos. - AUM of Rs.51,96,959 cr.
 12th largest corporation in the world
 49.8 % of global business from Life Insurance
 Established in 1890, 110 yrs of Insurance expertise
 70 countries, 173,750 employees worldwide
BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the
largest manufacturer of two-wheelers and three-wheelers in India and one of the
largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand loyalty
synonymous with quality & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ


 One of the largest 2 & 3 wheeler manufacturer in the world
 21 million+ vehicles on the roads across the globe
 Managing funds of over Rs 4000 cr.
 Bajaj Auto finance one of the largest auto finance cos. in India
 Rs. 4,744 Cr. Turnover & Profits of 538 Cr. in 2002-03
 It has joined hands with Allianz to provide the Indian consumers with a
distinct option in terms of life insurance products.
 As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto has the
following to offer -
 Financial strength and stability to support the Insurance Business.
 A strong brand-equity.
 A good market reputation as a world class organization.
 An extensive distribution network.
 Adequate experience of running a large organization.
PRODUCTS

Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto,
trusted for over 55 years in the Indian market, together are committed to offering
you financial solutions that provide all the security you need for your family and
yourself.

Bajaj Allianz brings to you several innovative products, the details of which you
can browse in this section.
INDIVIDUAL PRODUCTS
UNITGAIN RISK CARE
A Unit Linked Plan Pure Term Plan
TERM CARE INVESTGAIN
Term Plan with Return-of-Premium An Endowment Plan
LIFETIME CARE CHILDGAIN
Whole Life Plan Children's Policy
LOAN PROTECTOR
CASHGAIN
A Mortgage Reducing Term Insurance
Money Back Plan
Plan
KEYMAN INSURANCE SWARNA VISHRANTI
A Promising Business Opportunity Retirement Plan
UNITGAIN PLUS LIFELONG GAIN PLAN
Unit Link plan with higher allocation A lifetime of security for your family
MAHILAGAIN RIDER
RIDERS UNITGAIN PLUS
The unique plan that takes care of you and
While the basic life insurance
your loved ones.
UNITGAIN EASY PENSION SWARNA RAKSHA-ROC
A Plan that enables you retire with A plan that provids you with regular
laughter lines.... not worry lines income... for life.
HEALTHCARE UG PREMIER
This is a three-year health insurance plan, Upfront Allocation of 105% of single
with life insurance benefit. premium on day 1
GROUP PLANS

 GROUP CREDIT SHIELD


 GROUP TERM LIFE
 GROUP TERM LIFE SCHEME
 GROUP SUPERANNUATION SCHEME
 GROUP GRATUITY CARE SCHEME
Insurance For NRI
All Indians have an underlying need to feel secure, to care for the loved ones and
to provide for old age. The need is felt more when you are away from your
Homeland. But being away from India doesn't mean you have to compromise on
the safety and security of your loved ones.

In fact, you can now easily steer your savings from overseas to conveniently meet
your family's needs - now and in the future.

Bajaj Allianz understand your need. The need to do something fruitful for your
loved ones.. The urge to let them know that you care. That's why Bajaj Allianz
introduced the NRI Insurance services. Now, you can invest your hard earned
money in India and in the bargain ensure your family's future.
 InvestGain - 'With Profits Endowment Plan'.
 CashGain - 'With Profits Money Back Plan'.
 ChildGain - 'With Profits Money Back Plan' for children.
 Lifetime Care - 'With Profits Whole of Life Plan'.
 Swarna Vishranti - 'With Profits Differed Annuity Plan'.
 UnitGain - 'Unit Linked Whole of Life Plan'.
OBJECTIVES OF THE
STUDY
OBJECTIVES OF THE STUDY

 To study the sales Strategy of field force of Bajaj Allianz Life Insurance.

 To study the process of selling of Insurance Policies by Adivsors.


RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem.


Research methodology constitutes of research methods, selection criterion of
research methods, used in context of research study and explanation of using of a
particular method or technique so that research results are capable of being
evaluated either by researcher himself or by others. Why a research study has been
undertaken, how the research problem has been formulated, why data have been
collected and what particular technique of analyzing data has been used and a best
of similar other question are usually answered when we talk of Research
methodology concerning a research problem or study. The main aim of research is
to find out the truth which is hidden and which has not been discovered as yet.
AREA OF STUDY

The area of the study related with getting correct information of life insurance
policies of different peoples in the region of Bhopal.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population.
It refers to the techniques or the procedure the researcher would adopt in selecting
items for the sample. Sample design may as well be drawn from the population to
be included in the sample i.e. the size of the sample. Sample design is determined
before data are collected.
During my study I have taken 50 insurance care consultants as the size of
sample.
TOOLS USED

To know the response, I have used the questionnaire method. If one wish to find
what insurance care consultants think or know, the logical procedure is to ask
them. This has led marketing researchers to use the questionnaire technique for
collecting data more than any other method.

In this method questionnaire were distributed to the respondents and they were
asked to answer the questions in the questionnaire. The questionnaire were
structured non disguised questionnaire because the question which the
questionnaire contained, were arranged in a specific order besides every question
asked were logical for the study, no question can be termed as irrelevant.

The questionnaire was non-disguised because the questionnaire was constructed so


that the objective is clear to the respondent. The respondents were aware of the
objective. They knew why they were asked to fill the questionnaire.

With the help of following techniques, which are using by Bajaj Allianz I analyse
that the how techniques of sales promotion are useful.
DATA COLLECTION

PRIMARY DATA SOURCES


 Through interaction with insurance care consultant
 Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES:


 Through internet, various official sites of the companies.
 Through pamphlets and brochures of the companies.
 Journals & Magazine
LIMITATIONS OF THE STUDY

Following limitations were faced during the study:


1. While designing the questionnaire it was kept in mind to gather more and
more information from each target person. For the neither present nor
descriptive questions could have served the purpose. Therefore the
questionnaire contained in the open-ended questions.
2. The study was conducted in Bajaj Allianz in Bhopal city, which has 127 to
170 insurance care consultants only. The sample size was of 50 insurance
care consultants only so that accuracy of data so collected could be absurd
covered by circulation of questionnaire.
3. The accuracy of indications given by the respondents may not be consider
adequate as whether the language used in the questionnaire is understood
by the respondent cannot be taken for granted.
4. The study is based on the information gathered from the insurance care
consultants. Therefore in such case it is possible that the information
supplied might be biased because the insurance care consultant might have
shown partiality towards their insurance policies.
5. Since the survey was limited to 50 insurance care consultants it is rather
difficult to give a precise conclusion but I have tried to the best of my
capability to give the conclusion on a comprehensive manner.
DATA ANALYSIS
&
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
(Based on survey conducted for 50 insurance care consultants)

Q.1 Which technique of sales promotion you prefer?


Options Response in %
Display 40%
Door to Door Demo 14%
Exhibition 16%
Catalogue 20%
Price Off 10%

Interpretation:
According to the study 40% insurance care consultants prefer display
technique,20% insurance care consultants prefer catalogues, 16% to the exhibition,
14% to the door to door demo and 10% insurance care consultants prefer price off
technique.
Q.2 which technique is giving good response from customers?
Options Response in %
Display 18%
Door to Door Demo 36%
Exhibition 18%
Catalogue 16%
Price Off 12%

Interpretation:
According to the study 36% insurance care consultants say door to door demo
techniques giving good response, 18% insurance care consultants say to the
display & exhibition, 16% to the catalogues & 12% say to the price off technique.
Q.3 Which technique is economically beneficial?
Options Response in %
Display 10%
Door to Door Demo 22%
Exhibition 10%
Catalogue 46%
Price Off 12%

Interpretation:
According to the 46% insurance care consultants, catalogue technique is
economically beneficial. 22% to the door-to-door demo and 12% insurance care
consultants prefer price off technique.10% to the exhibition & display technique.
Q.4 Which technique requires less time in sales promotion?
Options Response in %
Display 22%
Door to Door Demo 38%
Exhibition 10%
Catalogue 16%
Price Off 14%

Interpretation:
According to the study 38% insurance care consultants say display technique
requires less time in sales promotion. 22% to the display technique, 16% insurance
care consultants vote to the catalogues, 14% insurance care consultants vote to the
10% to the exhibition.
Q5 Which technique is easily manageable?

Options Response in %
Display 18%
Door to Door Demo 30%
Exhibition 10%
Catalogue 34%
Price Off 8%

Interpretation:
According to the study 34% insurance care consultants say that the catalogues is
easily manageable, 30% to the door to door demo,18% insurance care consultants
prefer display technique 10% to the exhibition, and 8% insurance care consultants
say to the price off technique.
Q.6 Which technique requires less knowledge to execute?
Options Response in %
Display 14%
Door to Door Demo 12%
Exhibition 12%
Catalogue 22%
Price Off 40%

Interpretation:
According to the study 40% insurance care consultants vote to the price off
technique is require less knowledge to execute.22% insurance care consultants
prefer catalogues, 14% to the display and 12% to the exhibition & door to door.

Q.7 Which technique requires more knowledge to execute?


Options Response in %
Display 20%
Door to Door Demo 42%
Exhibition 24%
Catalogue 10%
Price Off 4%

Interpretation:
According to the study 42% insurance care consultants vote to the door-to-door
technique that it requires more knowledge to execute than others. 24% to the
exhibition, 20% to the display technique, 10% insurance care consultants give vote
to the catalogues and 4% insurance care consultants prefer price off technique.
Q.8 Price off are necessary for sales promotion?
Options Responses in %
Yes 46%
No 40%
Can’t say 14%

Interpretation:
According to the study 46% insurance care consultants say yes that the price off
are necessary for sales promotion. 40% say no and 14% say can’t say.
Q.9 Do you think that sales promotion program that is presently undertaken by
Bajaj Allianz. are satisfactory?

Options Responses in %
Yes 34%
No 46%
Can’t say 20%

Interpretation :
According to the study 46% insurance care consultants say No that the sales
promotion program that is presently undertaken by Bajaj Allianz are satisfactorily
36% say Yes and 20% say can’t say.
Q.10 Should Bajaj Allianz take up new sales promotion program?
Options Responses in %
Yes 72%
No 22%
Can’t say 6%

Interpretation :
According to the study 72% insurance care consultants say yes installment offers
are 22% say no and 6% say can’t say.
OBSERVATIONS
&
FINDINGS
OBSERVATIONS & FINDINGS

 This sales promotion process was very much satisfying for me not only
practically and academically but it also helped me in developing my
communication skill and enriched my knowledge also.
 I have come to know about the importance of marketing especially with
regard to Sales Promotion on the most renowned organization like Bajaj
Allianz. Especially because of emergence of many competitor with
excellence in services & competitive product. The base of this chapter
conclusion is on the data analysis or what we say findings.
 I have finding from the insurance care consultants of the Bajaj Allianz. and
their insurance policies on my topic.
 When the insurance care consultant is asked why they are dealing in this
particular insurance policies (product) they mostly stressed on company’s
image. They also said that all income and age group of customers are
attracted towards their product but buyers are mainly from higher and
middle-income group.
 Insurance care consultants said that their sale is very much increased in the
last years because of an excellent performance of the product. Insurance
care consultants said that the customer are very much satisfied after getting
insurance policies because of its features related with risks of life and also
because of quality of service provide by their company is very good.
SUGGESTIONS
SUGGESTIONS

Here are some suggestions, which may help to strengthen the firm further

 Many of the insurance care consultants of the Bajaj Allianz. Has the lack of
good communication skills and training. So training should be easy.
 Bajaj Allianz. Should use new techniques of sales promotion.
 Customer services should be more comfortable than others.
 People must be made aware of the benefits of the policies of Bajaj Allianz.
 The company should give personal attention to each customer.
 Proper assistance should be provided to the customer at the time of claim
settlement.
 All the details about the company should be given to the customers.
 Regular advertisement of the company should be given TV and Newspaper.
 The company must try to find new markets especially in the rural areas.
 The company should do frequent analysis of the competitors.
BIBLIOGRAPHY

Books
 Kothari C.R., (1999) Research Methodology, Wishwa Prakashan
 Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi,
Prentice Hall of India
 Kotler P., (1999)Marketing Management Analysis, Planning,
Implementation and Control, New Delhi, Prentice Hall of India
 Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill

Websites:
 www.bajajallianz.com
 www.quickmba.com
 www.indiainfoline.com
QUESTIONNAIRE
Name : _____________________________________
Address : _____________________________________

Q.1 To which technique of sales promotion you prefer?


A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.2 which technique is giving good response from customers?


A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.3 Which technique is economically beneficial?


A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.4 Which technique requires less time in sales promotion?


A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.5 Which technique is easily manageable?


A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off
Q.6 Which technique requires less knowledge to execute?
A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.7 Which technique requires more knowledge to execute?


A) Display B) Door to door demonstration
C) Exhibition D) Catalogue
E) Price-off

Q.8 Price off and installment offers are necessary for sales promotion?
A) Yes B) No
C) Can’t say

Q.9 Do you think that sales promotion program that is presently undertaken by
Bajaj Allianz. are satisfactory?
A) Yes B) No
C) Can’t say

Q.10 Should Bajaj Allianz. take up new sales promotion program?


A) Yes B) No
C) Can’t say