A

SUMMER TRANNING PROJECT REPORT

STUDY ON

“A STUDY OF STRATEGY AND FUNCTIONING OF FIELD FORCE”

AT

Submitted in partial fulfilment of the requirement for the award of degree Of

MASTER OF BUSINESS ADMINISTRATION SESSION (2012-2014)

SUBMITTED TO:- SUBMITTED BY:-Mr. Somnath Paul Rahul Saxena

Assistant professior MBA IIIrd SEM Roll No-12021226

ACKNOWLEDGEMENT

“No man is indispensable but there are certain mortal without whom the quality work suffers their guidance becomes important in acquiring quality results”.

I express my sincere gratitude to Dr.Manjula jain for providing me an opportunity to undero summer tranning at Bajaj Allianz.

I am grateful to my faculty guide Mr somnath Paul who has given me this opportunity to prepare this project and provided her valuable guidance.

I am grateful my Mr. Upendra Singh who has given more guidance about SIP.

I am also grateful to my parents and friends who inspired me to put my best efforts.

Rahul saxena

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

11. SUGGESTIONS

12.COMPANY PLANS

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. A range of micro

environmental factors also influences them.

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 scheme 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 organizations. 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, THEY’RE 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

PRODUCT’S

SUMMRY

OF

BAJAJ ALLIANZ

LIFE INSURANCE

CO. LTD

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

1 http://www.allconferences.com/conferences/20060509074525/

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).

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.

rThe 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.

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

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. 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 company’s 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 implementation, 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.

3 http://www.indiacore.com/insurance2.html

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. 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 Committee. 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 Swiss

(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 have 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 privatizations 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

Name of the insurer 2006-07 2007-08

Foreign

Promoter

Indian

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)

  2008 2007

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)

  2008 2007

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)

  2008 2007

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)

  2008 2007

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, and 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 Financial 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 4700 cr.

Bajaj Auto finance one of the largest auto finance cos. in India

Rs. 5,744 Cr. Turnover & Profits of 678 Cr. in 2005-06

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

UNITGAINA Unit Linked Plan

RISK CAREPure Term Plan

TERM CARETerm Plan with Return-of-Premium

INVESTGAINAn Endowment Plan

LIFETIME CAREWhole Life Plan

CHILDGAINChildren's Policy

LOAN PROTECTORA Mortgage Reducing Term Insurance Plan

CASHGAINMoney Back Plan

KEYMAN INSURANCEA Promising Business Opportunity

SWARNA VISHRANTIRetirement Plan

UNITGAIN PLUSUnit Link plan with higher allocation

LIFELONG GAIN PLAN A lifetime of security for your family

RIDERS UNITGAIN PLUSWhile the basic life insurance

MAHILAGAIN RIDER The unique plan that takes care of you and your loved ones.

UNITGAIN EASY PENSION A Plan that enables you retire with laughter     lines.... not worry lines

SWARNA RAKSHA-ROCA plan that provides you with regular income... for life.

HEALTHCAREThis is a three-year health insurance plan, with life insurance benefit.

UG PREMIERUpfront Allocation of 105% of single premium on day 1

GROUP PLANS

GROUP CREDIT SHIELD

GROUP TERM LIFE

GROUP TERM LIFE SCHEME

GROUP SUPERANNUATION SCHEME

GROUP GRATUITY CARE SCHEME

INVEST PLUS

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 understands 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.

Invest Gain - 'With Profits Endowment Plan’.

Cash Gain - 'With Profits Money Back Plan'.

Child Gain - 'With Profits Money Back Plan' for children.

Lifetime Care - 'With Profits Whole of Life Plan'.

Swarna Vishranti - 'With Profits Differed Annuity Plan'.

Unit Gain - '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

Advisors.

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 15 insurance care consultants as

the size of sample.

TOOLS USED

To know the response, I have used the questionnaire method. If

one wishes 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 analyze 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 15 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