40410911 project on marketing

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MINOR PROJECT

ON THE

MARKETING STRATIGIES OF TATA AIG

GROUP

SUBMITTED TOWARDS THE FULFILLMENT OF D MINOR

PROJECT ASSIGNED AND HENCE COMPLETED IN THE

MARKETING BUSINESS.

UNDER THE GUIDANCE OF SUBMITTED BY: GAURAV MAGGON

NIDHI SHARMA ENORLMENT NO:06624001709

BBA(GENERAL)

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on “TATA AIG GROUP”.The work would not have been possible to come to the present shape without the ableguidance,supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received byour faculty members.

I convey my heartfelt affection to all those people who helped and supported me duringthe course of completion of my Project Report.

Mr.GAURAV MAGGON

BBA(GEN)-2009-12

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CERTIFICATE

This is to certify that “GAURAV MAGGON” is a bonafide student of this institute pursuing BBA full time programme of three years duration which is in affiliation withGuru Gobind Singh University.He has undertaken a minor project report on “TATA AIGGROUP” in partial fulfillment of BBA degree as required under the rules of theUniversity

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CONTENTS

Sr.No Title Pg.no.

01. Introduction topic ………………………………

02. Objective Of Study …………………………………

03. Scope and limitations ……………………………………

04. . Industry profile ………………………………….

05. Company Profile …………………………….

06. Research Methodology…………………………...

07. Data Analysis and Interpretation………………...

08. Findings and Suggestions………………………..

09. Conclusion………………………………………..

10. Bibliography ………………………………………….

11. Annexure ………………………………….……

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services contribution to the country's gross domestic product (GDP) is 7% out of which

the gross premium collection forms a significant part. The life Insurance industry in India

grew by an impressive 36%, with premium income from new business at Rs. 700.43

billion during the fiscal year 2008-2009, braving stiff competition from private insurers.

RNCOS s report, Indian Insurance Industry: New Avenues for Growth 2012 , finds that

the market share of the state behemoth, LIC, has clocked 21.87% growth in business at

Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not

enough to arrest the fall in its market share, as private players grew by 129% to mop up

Rs. 55.57

billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Introduction to the topic

The report discusses the work done by trainee Mr. Pushkar Jain student of Institute Of Business Management. The purpose of training was to have practical experience of working in an organization. So the fieldwork was essential to get exposure to variousmanagement practices in the field of marketing. The main purpose of the project was basically to find the market potential for Tata AIG life insurance Nashik. It includedextensive market surveys and meetings mainly with the retailers, whole sellers and other merchants from different regions of Nashik. The project is divided in two parts, for thefirst half is contains period of 30 days in which I did research, surveys and meetings withthe people to collect data. In the later part I met various retailer, whole sellers, real estateagents, stockiest and few others to promote and make them aware about the company.The survey also helped to provide details regarding various opportunities and different

plans and policies that are coming up in the company. This was useful information for them to get the benefits and to know future growth prospects if they join with thecompany.

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Objective of the topic

To study the Brand knowledge of Tata AIG life insurance co. ltd.

To study the saving of insurance sector.

To study percentage of Insurance’s customer.

To analysis the no. of insurer of competitors

To study the market potential of TATA AIG Life Insurance.

To study who is market leader.

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i. Data sources: Both primary & secondary data are taken into consideration.Primary data are data gathered from field for specific research project.

ii. Research approach: I have mainly collected the primary data through survey &few cases by observations.

iii. Research instrument: Questionnaire is used to collect most of the primary data.

iv. Sample plan: after deciding on the research approach the instruments I decidedsampling plan this cause for three decisions.

a. Sampling unit: project was concentrated on retailers, whole sellers, real estate agents,service group & others for the sampling unit b. Sampling size: project consists of 165 respondents from different areas & fromdifferent professions.c. Contact method: once a sampling plan has been determined, marketing researcher needto decide how the subject should be contacted: mails, telephone, personal visit or onlineinterview. In my project research it was mostly personal interview and in some casestelephonic interviews was held.

Step 3:

Collect the information:Data collection phase of the marketing research generally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give allthe detail information and might not be available and must be contacted or replaced.

Others refused to co-operate and finally some respondents will be biased or dishonest toshare information.

Step 4:Analyse the information:The collected information needs to be analyzed thoroughly to extract the findings thatwill be useful to the company. Again this data must be tabulated and averages/measuresare computed from various variables.

Step 5:Present the findings:And the last step is present the findings that are relevant to the objectives.

SCOPE AND LIMITATIONS

Scope of the study

The study of potential of insurance business is concerned with market study ie. researchand fieldwork. This study is going to help the Tata AIG Life Insurance to find out market

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potential with other companies. The study will help the company to assess their performance and improve it where it is lacking.

Research work is a basic function carried out by each organization. The study of market potential of insurance is very helpful to find out who are the market leaders in private

companies as well as overall analysis.

Availability of time was also taken into account while deciding the particular method tomeet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find themarket potential and give suggestions related to the topic.

Limitations:

- One of the major limitations of this study was lack of sufficient time as thesubject was required lot of time.

- The time limit permitted to cover the major areas of Nashik but not all theregions of the city.

- The study limits itself only to Tata AIG Life Insurance.

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RESEARCH METHODOLOGY

INTRODUCTION:

Marketing Research is a systematic and objective study of the problems pertaining to the

marketing of the goods and services. It may be emphasized that it is not restricted to any

particular area of marketing, but is applied to all the phases and aspects.

METHOD OF DATA COLLECTION:

- Primary Data;

The major source for collecting primary data has been the interviews held with retailers,

whole sellers, real estate agents, stockiest and few other segment of market. The

maximum prospects were visited directly at the shops and interviewed provided they had

time to spare. Some of them interviewed via tele-calling and few were interviewed after

taking prior permission and appointment. The information given by them was satisfactoryand relevant to the subject.

- Secondary Data: The sources of secondary data are;

INSTITUTION:

- Business Magazines

- News Paper

- Annual Reports / Company Periodicals

REFERENCES:

- Internet, Company websites

INDUSTRY PROFILE

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Five years after the life insurance sector was opened up to the private sector, market

scenario for all these companies in not very much exiting. Already over Rs.15000 crore

has been invested in the sector by major and their foreign partners. But that is obliviously

not enough, a few thousand crores more will be needed.

Because almost of the 21 private sector life insurance companies are incurring substantial

losses. Some estimate suggests that private insurers made a combined loss of almost Rs

1000 crore in 2003-04.Things haven t changed much since.

- Bajaj Allianz Life Insurance, the second largest private sector life insurer, posted

a loss of Rs 76.8 crore in the first nine months of the current fiscal.

- Future Generali Life India Insurance registered a loss of Rs 41.22 crores over the

same period.

- Birla Sun Life Insurance, which claims to be among the most efficient users of capital, posted a loss before interest and taxation of Rs 60.03 crore for the year

ended 31st March 2005.And just in the October-December quarter of 2005,Indias

largest private sector insurer, ICICI Prudential posted a loss as the others have run

up in the first nine months of FY 06.

The losses itself are not a major concern. Such under spread losses are neither abnormal,

nor expected in the initial years. In this business, companies have to bear such losses if

they want to reap the substantial long-term profits. But profits are still many years away.

At the moment, private sector life insurers are at a stage where any growth will only add

to their losses. In fact the insurance sector is seeing a strong growth-in terms of

penetration. Life insurance premium to GDP has grown from 1.8 percent to 2.3 percentwhile the per capita premium paid has more doubled from Rs. 280 to Rs. 600.

However, there is one big reason for alarm. Insurers do need access to substantial capital

in order to keep up this growth despite their initial losses. But many private sector

insurers are struggling to raise the required capital. That s because the government has

not yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies

from 26 % of equity to 49 % as outlin3d by the previous government.

And because of 26 % FDI cap, the burden of funding the growth falls on the

Indian promoter. The need for capital is even more crucial in the context of the (IRDA)

Insurance Regulatory and Development Authority regulation on solvency margins. In

India, for every Rs 100 of claims payable to customers a life insurance company must

have assets worth Rs 150.

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OPTIMISTIC INDIAN MARKET FOR INSURANCE

SECTOR:

Indian market can be labeled as an untapped market, which in it s core holds immense potential for growth. The hike in FDI from 26% to 49% .this increasing capital

participation of international insurers will accelerate the development of the Indian

insurance industry, through the greater deployment of technical competencies and

innovative products and processes .As The purchasing power of Indian people is

increasing, so we can predict that the no. of customers who can afford to investment in

health, life, disabilityand pension products is going to increase up to great level.

According to SWISS Economic Research and Consulting.

AREAS OF OPPORTUNITIES

1) New Horizons of investment

Insurance companies have shown an unquenchable thirst to offer customized solutions

based on individual risk appetite of customers rather than mundane, one size fits all

endowenment based insurance products. We have a good example of ULIP (Unit links

Insurance Plan) by LIC. It is a single largest innovation in life insurance industry. Life

Insurance products are similar to investment product with less or risk coverage,

signifying changing preferences of investors. ULP s score over mutual funds, since they

offer risk-cover, as well as returns by investing in stock markets, even out performing

equity returns in certain instances. We can have the same plans from other private players

like Bajaj-Allianz i.e. equity plan funds, ICICI Prudential maximize, HDFC standard life

growth fund. Total premium under return for unit-linked plans in the financial year 2004-

2005 stood at Rs. 82.47 billion, and outstanding growth of 422% over the previous year.

2) Indian Rural Market

A large number of Indians lives in rural India, so this market should be tabbed by

insurance companies and it require a different approach of sales services with respect to

meeting such challenges as low awareness, irregular incomes and geographical distances.

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The focus has to be on simple coverage and return of premiums. Very few companies

have plans for rural India.

3) Customized Solutions

Competitive insurance market exploring the new customer segments, it includes pension

plans and children plans. By 2026 India will have 179 million people who wear above 60

years of age. According to that insurance companies should have a marketing plan.

Special children plans are the current requirements, as the education is becoming more

important and expensive. So such plans must be introduced by all insurance companies.

ICICI Prudential and LIC have already done this.

II. WHAT IS NEEDED TO BE EXPLORERED?

1) The industry in general faces the challenge of building the credibility of being a

Financial service provider while meeting a customer s expectation of what it means to bea financial services company. Financial service brands are based on insuring long-term

financial security throw a broad range of inherently risky services and investment

options. In the insurance sector, branding has typically involved the concept of stability;

trust and protection from risks in time of crises, or even protecting from a crisis throw a

standard set of products. It will help to establish what insurers stand for and promise and

will eventually help to give an industry new image.

2) The altered scenario of the insurance market in India has brought in new and

differentiated products and services offerings to the public and has opened new

challenges for insurance companies. Devising specific strategies to reach out to specific

segments of the market, different countries and across social strata has been one aspect of

the challenge. The other more complex one has entailed designing the products,

marketing them, ensuring the smooth selling of products, collecting premiums, managing

claims, managing & investing the funds and managing a vast enterprise. This has created

a need of strong Risk Management.

3) The core function of the marketing force of an insurance company is to generate

awareness about the insurance products among the target market.

4) Branding the marketplace is similar to branding on a cattle ranch, the purpose of a

branding program to differentiate our cow from the cattle of range.

According to an article in the insurance marketing magazine, Feb-March 2002, brand

strategy is one of the most critical parts of the underlying business strategy of any

organization. It will help to establish what insurers stand for and promise and will

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eventually help to give a industry new image. This positioning helps to give credibility to

sell Risk-Free products design to help customers insure that their family and assets are

protected.

5) Branding is the new key challenge in the financial services industry. Life in the 21st

century will be longer with more choice in more fields of activity. The financial1

consequences of an increased life span are particularly likely to be tough. Inevitably, this

will lead to more complexity, which in turn necessitates greater clarity and appeal from

the service providers. Branding is more relevant in the financial services market, which

not only faces the problem of securing and retaining customers in an increasingly

competitive marketplace but also experiences the need for heightened relevance of the

brand proposition in a world where brand has been termed the new religion.

QUICK FACTS :

- Second largest mobilizer of savings after banks.

- Constitutes 15 % of gross domestic savings after banks.

- Rs 400,000 crore of assets under management.

- Rs 40,000 crore invested in infer-structure

- Share of retail customers to total-92 %

- Agency force 15 lakhs

- No. Of policies in force: 20 crore

- Employees: more than 200,000

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HISTORY

1912:

The Indian Life Assurance Companies Act enacted as the first stature 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 business.

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. LIC

Act,1956,with a capital contribution of Rs.5crore from the Government of India.

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ENTRANCE OF PRIVATE COMPANIES IN

INSURANCE SECTORS.

Insurance sector is seeing a strong growth in terms of penetration, life

insurance to premium to GDP has grown from 1.8 percent to 2.3 percent while the per

capita premium paid has more than doubled from Rs 280 to Rs 600.Despite the fact that

India boosts a saving rat of around 25 percent, less than 5 percent is spent on insur1ance.

The insurance landscape in India is undergoing major changes. Close to foreign

competition since nationalization in 1956,the life insurance industry had been protected

from competitive pressures. Now with the re-opening of the sector, several new players

have entered the scene. Besides, Tata AIG Life Insurance there are 20 other private

players working in insurance sector which are as follows.

1.AMP Sanmar Assurance Company Ltd.

Indian Promoter Reliance Group

Foreign Insurer None

2.AVIVA Life Insurance Company Ltd.

Indian Promoter DABUR

Foreign Insurer AVIVA,UK

3.BAJAJ Allainz Life Insurance Company Ltd.Indian Promoter BAJAJ Auto.

Foreign Insurer ALLIANZ, Germany

4.BIRLA Sun Life Insurance Company. Ltd

Indian Promoter ADITYA BIRLA Group

Foreign Insurer SUN LIFE, Canada

5.HDFC Standard Life Insurance Company. Ltd

Indian Promoter- HDFC

Foreign Insurer Standard Life, UK

6.ING Vysya Life Insurance Company Ltd

7.ICICI Prudential Life Insurance Company Ltd

Indian Promoter ICICI Bank

Foreign Insurer Prudential, UK

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8.KOTAK MAHINDRA Life Insurance Company Ltd

Indian Promoter- KOTAK Bank

Foreign Insurer- OLD MUTUAL, South Africa.

9.LIC. Life Insurance Corpotration of India

Govt owned company

10.Max New York Life Insurance Company

Indian Promoter MAX India

Foreign Insurer NEW YORK LIFE, US

11.MET LIFE Insurance Company Ltd

Indian Promoter J & K Bank

Foreign Insurer MET LIFE, U

12.SAHARA Life Insurance Company Ltd

Indian Promoter SAHARA INDIA Ltd.

Foreign Insurer NONE

13.SBI Life Insurance Company Ltd

Indian Promoter SBI

Foreign Insurer CARDIFF, France

14.Future Generali Insurance Company LtdIndian Promoter Future Group

Foreign Insurer Generali.

15.ING VYSYA LIFE INSURANCE Company Ltd

Indian Promoter ING Group

Foreign Insurer VYSYA

16.LIFE INDIA INSURANCE (LIC)

17.RELIANCE LIFE INSURANCE Company Ltd

18.NEW INDIA ASSURANCE L.I.

19.ORIENTAL INSURANCE Company Ltd

20.UNITED INDIA INSURANCE Company Ltd

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21.BHARTI AXA LIFE INSURANCE Company Ltd

22. Tata AIG Life INSURANCE Company Ltd

AIG Foreign Promoter

23. Religare Life Insurance Company Ltd

24.Reliance Life Insurance Company Ltd

25.IDBI FORTS LIFE INSURANCE Company Ltd

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COMPANY PROFILE

THE TATA AIG GROUP

TATA Group

Tata Enterprises with 82 companies, spread over seven sectors and with an annualturnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group hasshown over years that it is a value driven company and has pioneering contributions invarious fields including insurance, aviation, iron and steel. Tata companies have forged anumber of global alliances with eminent international partners in several fields. In termsof capital market performance as many as 40 listed Tata companies account for nearly5% of the total market capitalization of all listed companies. The Group has had a longassociation with India's insurance sector having been the largest insurance company inIndia prior to the nationalisation of insurance.

TATA Group in Insurance

The Late Sir Dorab Tata, was the founder Chairman of New India Assurance Co. Ltd., agroup company incorporated way back in 1919. Government of India took over themanagement of this company as a part of nationalization of general insurance companiesin 1972. Not deterred by the move, Tata group have ventured into risk managementservices having tied up with AIG group, back in 1977, with the incorporation of TataAIG Risk Management Services Pvt. Ltd.

AIG

American International Group, Inc is the leading U.S. based international insurance and

financial services organization and the largest underwriter of commercial and industrialinsurance in the United States. Its member companies write a wide range of commercialand personal insurance products through a variety of distribution channels in over 130countries and jurisdictions throughout the world. AIG's Life Insurance operationscomprise of the most extensive worldwide network of any life insurer. AIG's global businesses also include financial services and asset management, including aircraftleasing, financial products, trading and market making, consumer finance, institutional,

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retail and direct investment fund asset management, real estate investment management,and retirement savings products.

The Joint Venture

Tata AIG Life Insurance Co. Ltd. is capitalised at Rs. 185 crores of which 74 per centhas been brought in by Tata Sons and the American partner brings in the balance 26 per

cent. Mr. George Oommen has been named managing director of Tata AIG Life. Tata-

AIG plans to provide broad array of life insurance plans to cover to both individuals and

groups. The company is headquartered in Mumbai, with branch operations in Delhi,

Chennai, Hyderabad, Bangalore ,Calcutta, Pune and Chandigarh .

Tata AIG Insurance company, one of the leading insurance company offering both lifeand general insurance, is a joint initiative of the Tata Group and American InternationalGroup,Inc(AIG). The ratio of stake holding of the respective companies is slated at 76:24.Tata AIG has over the years has created a name for themselves in the insurance sector of

India. The company provides life insurance alongside an extensive range of generalinsurance products ranging from automobile, health, accident, property, home, travel to personal offering solutions to individuals as well as corporates and tries to serve allsections of people.

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Positioning & Objective

Positioning

Knowledge Organization with Leadership Approach

One Stop Total Insurance Solutions & Services Provider

Customer Centric Model embracing Passion, Convenience and Service

Excellence

Objective

To provide superior customer service through our knowledge-based business partners and

employees supported by innovative products and services.

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Products

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QUESTIONNAIRE METHOD

This method is used to collect general information about the company like total number

of employees viz. agents, sales executive, management trainees, front line staff etc. Sales

executive provided this information. This information helped to know the basic

knowledge about the company before doing the actual research.

RESEARCH DESIGN:

SAMPLING UNITS:

This combines all those respondents in the market who can be the future prospects of

being a part as an insurer of Tata AIG Life Insurance. Some of them are retailers, whole

sellers, real estate agents, stockiest and few others from different commercial areas of

Nashik.

As instructed by the company- following are the few segments.

1.Business- Class2.Agents General Insurance Agents

- Postal Agents

- Travel Agents

- Real Estate Agents

3.Service Class

- Professor / Teachers

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- Office Staff, Banks Staff

- Government Employees

4. Mutual Fund Agents

5.Tax Consultants

6. Investment Consultants

7. Share Brokers

8. Financial Advisors

9. Chartered Accountants / Company Secretaries

10. Others- House-wife , Medical Representatives

STEP 2

Out of these various segments, the researcher targeted following

- Retailers- Who1le sellers

- Stockiest

- Real Estate Agents

- Others

Note: It was instructed by the company to target the people having net income between

15000 and above. The required data for above segments is to be such, which is helpful to

know the background & potential of the prospects. For all that researcher collected

information as there,

Name -Present Age-

Address-

Ph No.-

E-mail-

- Brief Information about family

- Personal Goals

- Retirement Plans

- Present monthly expenses

- Existing Investment Avenues

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SAMPLE DESIGN

Sample size

(200 people)

1.Retailers (96)

2.Whole Sellers(48)

3.Real Estate Agents (32)

4.Stockiest (16)

5.Others (8)

Sample

Size

200 People

Retailers

96

Wholesale

Sellers

48

Real Estate

Agents

32

Stockiest

16

Others

8

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DATA COLLECTION TECHNIQUES:

- Questionnaire Method

- Telephone Interview Method

QUESTIONNAIRE METHOD

The individual questionnaire of the survey was designed for population between age

group of 18-60 years of age who can be the prospect of becoming Tata AIG Life

Insurance clients from different areas of delhi. In total 200 questionnaires werecompleted who were the samples for research work.

SAMPLE SIZE:

The sample size of the respondents was taken as 200 considering the scope and

constraints of the study.

FIELD WORK:

The fieldwork was conducted for a period of 60 days in different commercial areas of

Nashik. Interviews were conducted from respondents across segments, above 18 years of

age and as per their convenience. So as to contrive representative sample. The interview

and presentation mode by researcher were carried for the duration of 20 minutes.

DATA ANALYSIS AND INTERPRETATION

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- Telephone Directory (BSNL and TATA Indicom)

- References from company employees

- Annual Reports / Company Periodicals

1. Investment options preferred by respondents.

Sr.No Investment Option No.Of Respondents % Of

Respondent

1 Insurance 91 45

2 Fixed Deposit 23 12

3 Post 24 12

4 PPF 28 14

5 Mutual Fund 11 5

6 Shares 6 3

7 Daily Collection 19 9

TOTAL 165 100

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Out of total respondents, maximum i.e. 91 respondents think Insurance is safer option to

invest the money. It gives them long-term benefits for not only

individual but for the entire family. Thus, people find insurance safe and better option

rather than investing in FD, Post, Mutual Funds, Shares etc.

2. Need of Life Insurance

Yes 164 82 %

No 36 18 %

Total 200 100 %

N e e d o f L i f e I n s u r a n c e

Y e sY e s

Greph 2

Around 82 % of the total samples think that insurance is essential part of the life. But for

everyone the need for life insurance has different reasons.18 percent of the people think

other options are better than life insurance. Following factors determine the need for lifeinsurance.

Factors to determine need for L.I. No.Of Respondents

Security/Safety 62

Savings 17

Long term Investments 38

Tax Savings 47

Total 164

Still majority i.e. 82% people think that insurance is essential. However safety is major

concern when people see insurance as investment.

3.Awareness about the Insurance Companies.

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Insurance Companies No.Of Customer % of Customer

ICICI Prudential 110 18

Future Generali 65 11

Bajaj Allianz 95 16

Tata AIG 65 11

Max New York Life 35 6HDFC 105 18

LIC 125 20

Total 600 100

Among all the private players in the market ICICI prudential and HDFC Standard Life

are among the most popular and known brands in the market. These two brands are way

ahead of the Tata AIG Life Insurance and others. These two Life Insurance companies do

effective advertising that made them known brands in the market

4. Reliable companies among the respondents.

Insurance Companies Respondents %Of

Respondent



Bajaj Allianz 55 18

Tata AIG 30 10

Max New York Life 15 5

HDFC 50 17

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LIC 55 18

Total 300 100

Among all the samples ICICI and HDFC are believed as the most reliable companies

among all the private companies in the market. Following are the factors that determine

why these two companies are preferred and believed by the people.

Factors determining

Reliability

Response % Of Response

Brand Name 45 18

Safety 40 16

Peer Pressure 55 22

ROI 70 26

Previous Experience 45 18

Total 255 100

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R e l i a b i l i t y F a c t o r s

1 6 %2 2 %

2 6 %1 8 %

B r a n d N a m e

S a f e t y

P e e r p r e s s u r e

x p e r i e n c e

People are positive about ICICI and HDFC as reliable companies because of their

Returns, Brand name, and Previous experience and also there is lot of peer pressure

among

5. Present Insurance holders

Yes 145

No 20

Total 165

r e s p o n d e n t

s

S e r i e s 1

Insurance Companies No Of Shares % Of Shares

LIC 85 52


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Bajaj Allianz 10 6

Tata AIG 8 5

Max New York Life 17 10

HDFC 5 3

SBI 5 3Total 165 100

Among the total market share LIC still has majority share in market, holding 52% of the

total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and

HDFC are leaders

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6. Total Savings for Life Insurance.

Savings (Rs) Respondents

5000-10000 54

10000-20000 78

20000-40000 40

>40000 28

Total 200

0

50

100

150

200

Respondents

5000-10000

10000-20000

20000-40000

>40000

Total

Among the total respondents 75 people save anything between Rs. 10000- Rs15000. Thuswe can say that still people are doing good amount of savings in insurance. It came to

know that all the respondents have some part of their savings in insurance.

7.Benefits from Life Insurance Policy.

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Benefits Response Of Clints %Of Clints

Child Education 35 11

Personal Goals 90 26

Marriage 45 14

Retirements 85 26Savings 75 23

Total 330 100

Personal goals, retirement, savings are the prime benefits for which people usually invest

in insurance. The same response was found during the research work. It is good sign for

the insurance business, as people perceive insurance for achieving the different goals in

the life.

8. Awareness about Tata AIG Life Insurance.

35



0

50

100

150

200

As there is awareness, maximum respondents know about the plans and policies of Tata

AIG. This Company needs to promote their different plans through effective advertising.

10. Tata AIG prospects for Future.

Interested Prospects Response % Of Response

Yes 30 15

No 92 46

Cant Say 78 39

Total 200 100

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15 percent of the total respondents said they are interested to buy the policy from Tata

AIG Life Insurance. Out of the remaining respondents 46 percent didn t show any

interest in Future and others were not sure whether to buy the policy from Future or not.

OBSERVATION AND FINDINGS

OSERVATION:

The researcher has taken interview of given various segments as Retailers, Whole sellers,

Real-Estate Agents, Stockiest and others and came to know the facts as follows.

RETAILERS:

Belief:

Retailers contribute to the major portion of any market. Therefore, retailers are good

prospects for insurance business. Normally it is believed that they spare very less time

with other people other than their customers. Retailers are quite busy with their customers

and other related work.

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Facts:Though some beliefs are found correct but observation shows other side of the

curtain i.e.

- They were quite generous when they knew that they were getting some information.

- They spare good amount of time if one presented the company and himself properly.

- Retailers give sufficient information if they believe in the work.

WHOLE SELLERS

Belief :

Whole sellers are believed to be among the busiest people in their work. They are

actively involved in loading, unloading, dispatching, billing etc.

Facts:

- Whole sellers are not ready when we approached spontaneously to provide some

information.

- They provide sufficient information if they contacted when they have free time.- Most of them were not really comfortable to give any sort of personal and financial

information.

- These people runs huge business so these are highly potential prospects for any

business.

REAL ESTATE AGENTS

Belief:

These people are not as busy as they have selective and limited no. of customers. But

many of these agents are out with their clients on their sites thus it becomes really

difficult to meet them. They are believed; as they don t entertain others.

Facts:

- Appointments need to be taken before visiting to their places.

- These agents have very good contacts, which means good customer base. So the give

bigger and better clients for insurance business.

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STOKISTS/COMPANY OUTLETS

Belief:

These are believed as high-class people and usually prefer to talk with senior executives

of any company.

Facts:

- These people should be given a call before visiting their place, as they don appreciate

direct visits by any people.

- Good presentation is required to make them talk for a while.- A highly potential customer if one makes them believe in company by providing detail

information regarding company its present and future growth.

OTHERS

These include house-wife, pensioners etc.

Belief:

They are supposed to have sufficient time and believed as the working persons at homenormally influence these people.

Facts:

- Most of the hose-wife was shy to talk with strangers.

- These people are dependent for their decisions.

- Not a very good prospect for insurance business.

40



FINDINGS:

A): BRAND Knowledge

1. It is found during research that 18 percent were lacking any sort of knowledge and

information about Tata AIG as life insurance provider.

2. From the total 200 respondents, 146 respondents save good amount of money i.e.

between Rs 10000 to Rs. 40000 in insurance. Remaining people save anything between

Rs 5000 to Rs 10000.Thus it shows as everyone has some part of savings in insurance,which is good sign for insurance sector.

3. Majority i.e. 53% respondents have their personal goals and retirement plans as

prime concern for buying insurance.

4. Out of 200 samples, 176 respondents i.e. around 88 % of them have insurance

cover in different private insurance and government organizations.

B): PRODUCT Knowledge

1. 28 percent had just heard about Tata AIG but were lacking

knowledge about different plans. Out of these 28 percent only 7 percent people were

insurance holders of Tata AIG Life Insurance.

2. It is found that still (LIC) Life Insurance Corporation of India rules when it comes

to trust for insurance providers, among private sectors its ICICI Prudential, HDFC

Standard Life, Bajaj Allainz are among market leaders.

3. Still 82 percent of samples think insurance is essential for various reasons.

4. Many respondents found saying HDFC and ICICI as being more reliable

insurance providers in terms of returns, peer pressure, previous experience than their

competitors.

41



SUGGESTIONS

1. More penetration through advertising

Media Advertising- T.V Channels, Radio Stations, Internet pop-ups, Video Clips during

the intermission in Theaters.

Press Advertising - Leading News Papers like Times of India, Economic Times,

Hindustan Times, Indian Express and few local language newspapers.

Campaigning, Rallies, Sponsorships for the local institutional and social events.

All these forms of advertising could be effectively used to create brand awareness for

Tata AIG Life Insurance.

2. They need to concentrate on service factor by hiring or recruiting professional

people for effective presentation and communication skills.

3. They need to open more branches/offices at the major localities in different cities

and if possible in towns.

4. They should hire a Brand Ambassador/Ambassadress from Cricket or Film

industry as people from these two fields influence many people in the society. This would

promote the company not only within India but also at global standards. This might

create strong awareness and give popularity to the company as millions of people are

addressed at one time.

5. They need to search for management trainees whom they can provide proper

training who could turn out as future employees of the company.

6. Good amount of incentives and basic salaries should be given to the employees to

make them perform better.

7. Proper training facilities should be given to the new employees, which will help

them to get fair idea about the company and its policies.

8. Feedback should be taken from the present clients to know whether they are

satisfied and if they have any problems regarding the terms and service. This will

certainly help to improve the overall performance of the company.

9. Special schemes like Lucky Draws, Trip to foreign countries; Attractive prizes

could be used for promotion.

10. Should develop the plans that are attractive. Also they should develop new plans

that are not launched by any other companies to take first launcher advantage.

42



CONCLUSION

After all the research work it can be said that Private Insurance companies have good

market potential in the coming years. There is steady growth in all the companies from

last 2-3 years. Despite the fact that India boosts saving rates of around 25 percent, less

than 5 percent is spent on insurance. So there is lot of opportunities to tap the market

provided these companies create trust among the people.

In case of TATA AIG LIFE INSURANCE, they need to develop a Brand name in the

market, which is only possible with effective advertising and good service. They should

promote their products throughout the country and target specific group or class for each

plan or policy. This will make them concentrate on all the plans, which means maximum

portion of the so market can be covered.

BIBLIOGRAPHY

43



Company websites: www.tataaiglife.in

Research Methodology: C.R. Kothari

ANNEXURE

1.Personal detail:

Name:

Age(Yrs):

Phone No.

E-mail

Gender:

Office Address Residential Address

2.How will you rate following investment options on safety as parameter on scale?

a) 0-3 Poor

b) 3-7 Average

c) 7-10 Good

1.Insurance 2.Fixed Deposit3.Post 4.PPF

5.Mutual Fund 6.Shares

7.Daily Collection

3.Do you think it is essential to have Life Insurance?

a) Yes b) No

44



If Yes, Why?

1.Safety/Security 2.Long term investment

3.Savings 4.Tax saving

4.Which of the following companies are you aware as insurance provider?

1.ICICI Prudential 2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz 4.Tata AIG

4.Max New York Life 5.HDFC Standard Life Insurance

6.AVIVA Life Insurance

7.FUTURE GENERALI life insurance

5. Which of the following companies you consider mast reliable to invest?

1.ICICI Prudential 2.Kotak Mahindra Life Insurance3.BAJAJ Allainz 4.Tata AIG


6.AVIVA Life Insurance

7.FUTURE GENERALI life insurance

If Yes, Why?

1.Brand Name 2.Safety

3.Peer-pressure 4.ROI

5.Previous experience

6.Do you have insurance cover or policy?

1.Yes 2.No

If Yes, which?

1.ICICI Prudential 2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz 4.Tata AIG


6.AVIVA Life Insurance 8.SBI

9. .FUTURE GENERALI life insurance

7.Approximately how much money you invest in Life Insurance from your total savings?

1.Rs5000-Rs10000 2.Rs10000-Rs20000

3.Rs20000-Rs40000 4.Rs > 40000

8.What benefits you avail for investing money in insurance?

45



1.Child Education 2.Personal Goals

3. Marriage 4. Retirement

5. Savings

9.Are you aware about the Tata AIG Life Insurance?

1.Yes 2. No

10.Are you aware about different plans of Tata AIG such as;

1.Yes 2.No

11. In the near future would you be interested to buy any policy from .TATA AIG life

insurance?

1. Yes2. No3. Cant Say

GRAPH NAME PAGE NO.

Investment options preffered by respondents 27

Need of life insurance 28

Awareness about the insurance companies 29

Reliable companies among the respondents 30

Reliability factor 33

Present insurance holders 33

How the pie will grow 6

Total savings for life insurance 35

Benefits from life insurance policy 36

Awreness about Tata AIG life insurance 37

Awreness about different plans of Tata AIG life

insurance

38

Tata AIG prospects for future 39

40410911 project on marketing

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