customer buying behaviour & investment analysis

8/2/2019 Customer Buying Behaviour & Investment Analysis

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CUSTOMER BUYING

BEHAVIOUR &INVESTMENT

ANALYSISINDUSTRY GUIDE FACULTY GUIDE(with proper title and designation ) ____________________________________ __________________

PRANVEER SINGH INSTITUTE OF TECHNOLOGY

KANPUR


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TABLE OF CONTENTS

Subject

q Executive Summary

q Objectives..

qIndustry Profile

Major Companies

Company Profile

SWOT Analysis


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Executive SummaryAmong all the investment avenues inslirance schemes arethe best investment options and are giving significantreturn. The growth in Indian economy will lead to boom in

the market in coming years. The increasing numbers ofplayers in the life insurance industry has resulted indeveloping of awareness among people for gettingthemselves and their families insured and hence lifeinsurance companies playa major role in the increasing tasteof the customers for insurance, be it life insurance or

general insurance.

This report also deals with the findings and referencesregarding Mutual Funds and growing Mutual Fund industry,it also throws light on present economy in lieu with Mutualfunds and its growth. It also helps us to know what theperception of the investor is. And with out knowing investors


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Objectives (for gainingmaximum experience and

exposure in the company)

The exclusive objective of the study is toanalyze the actual effect of the onset of various

life insurance industries on the sales of L.I.C. itaims at checking out if the sales of plans andschemes of LIC have gone down or up due tothe onset of various private players in life

insurance sector


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Industry Profile(Review of litrature on the industry) Insurance, in law and economics, is a form of risk

management primarily used to hedge against the risk ofpotential financial loss. Insurance is defined as the equitabletransfer of the risk of a potential loss, from one entity toanother, in exchange for a premium and duty of care.

The business insurance is related to the protection of theeconomic values of the assets. Every asset has a value. Theasset would have been created through the efforts of theowner. The asset is valuable to the owner, because heexpects to get some benefits from it. The benefit may bemcome or something else. It is a benefit because it meetssome of its needs.

Every asset is expected to last for a certain pen-od of timeduring which it will perform. There is a lifetime for a

machine in a factory or a cow or a motorcar. None of themwill last forever. The owner is aware of this and he can also


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However, the asset may get lost earlier. An accident or any otherunfortunate event may destroy it or make

it non-functional, in that case, the owner and those deriving benefits therefrom would be deprived from thebenefit and the planned substitute would not have been ready. There is anadverse or unpleasant situation. Insurance is a mechanism that helps to reduce the effect of such adverse

situations.Life insurance in India made its debut well over 100 years ago. In ourcountry, which is one of the mostpopulated in the world, the prominence of insurance is not as widelyunderstood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts

of life insurance,with special reference to LIC.


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Major CompaniesLIC

Bajaj Allianz

ICICI Prudential

SBI Life

HDFC Standard

Max New York

Reliance Life

Birla Sun Life

Tata AIG

ING Vysya


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COMPANY PROFILE

kotak mahindra bank ltd., its affiliates and old mutual pIc.The companies one the fastest growing insurancecompanies in India and has shown remarkable KotakMahindra old mutual life insurance is a joint venturebetween growth since its inception in 2001.

Kotak mahindra group believes in offering its customers a-life time of value. A commitment that has made it a leadingfinancial services group employing around 12300 employeesin its various businesses and has a distribution network ofbranches, franchisees, representative offices and satelliteoffices across 320 cities and towns in India and offices inNew York, London, Dubai, Mauritius and Singapore. Thegroup services around 2.9 million customer accounts.

Old mutual plc is an international savings and wealth

Management Company based in the U.K. originated in SouthAfrica in 1845, it is among the 50 largest companies in the


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The group has a balanced portfolio of

businesses offering asset management, lifeinsurance, banking and general insuranceservices in oveer40 countries, with focus onSouth Africa, Europe and the United States,and a growing presence in Asia pacific. Oldmutual pIc. Employs approximately 53000employees world wide and is listed on theLondon and Johannesburg stock exchanges.

Om kotak mahindra is a joint venture betweenkotak. mahindra, which is an Indian companyand old mutual, which is a foreign company. Itis a 74%26% joint venture between the two.

It was established by Mr. Udai kotak in 1985along with 2 other people who were great


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OM KOTAK

MAHINDRA

Our Lineage

A 74 % - 26 % JointVenture between


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SWOT ANALYSISSTRENGTH:

Old mutual has 160 years experience ~

Wide Network

Based on banking

Best Training Procedure Pure financial

Sector

WEAKNESS :

Penetration is low


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OPPORTUNITY:

Opportunity in rural areas.

Term plan is cheap and best.

THREATS:

LIC is the big competitor

No availability of health plans


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SIGNIFICANCECustomer satisfaction is the crux of the

success of any company. To achieve success,the foremost thing is to be in pace with thecustomer needs. Clear consistent andsystematic improvement is necessary todemonstrate that customer satisfaction is astrategic business objective.


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Continuous improvement implies that businessphilosophies must change to meet ever -

increasing expectations of the customers, and nodoubt it is a challenging job.

Hence, a research should be a step towards theawareness of expending needs of the customers

and thereby to meet them. ,

In the present era insurance investors wantmaximum possible returns with maximum risks.Now according to the term insurance companies

have to present those schemes in the marketwhich

provide maximum possible return with minimumcost and less risk and there should be no hidden

costs involved in the schemes.


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Research processUnderstanding The Project

Firstly I was enriched with the philosophy ofinvestment and insurance. secondly I tried tounderstand that what made investors comfortablein making investments in insurance sector andwhich are the major insurance schemes in whichinvestors . commonly used to investment

Staller

Problem definition

The objectives were set and sampling,methodology and determined I along with theexpert guidance of my project guide prepared a

well- designed' questionnaire.


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Research design

Decision regarding what, where, when, how muchto invest for getting higher returns with minimumrisks and by what means? The research designencompasses the following information

Data source: data collected was primary as it wascollected by means of questionnaire consistingfrom various investors.

Research instrument. Structured questionnaire

consisting of open-ended questions were used forused for perpose of research.

Contact method; personal interview

Research approach; field survey


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Scope of research:

City of north Kanpur.Data collection

I visited the city of Kanpur. Here data collection was

done by the way of questionnaire. I met variousinvestors, direct selling, and agents and queriedregarding the questions in the questionnaire. In thetotality 25 respondents were visited by me. The variousparameters on which the investors were:

Investment in insurance schemes

Most preferred insurance scheme for investment andrisk cover . i- Returns of insurance schemes

Dominating influence in financial decision making +Criteria for investment and insurance evaluation f


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Sample size: 50

Sample procedure: purposive, judgment,

and selective samplingSamplin2: tvpe: convenient sampling

Sta2: e 6th

Data analvsis:

Data until analyzed is of no use. Analysiswas done in the order of investors visited

and then a consolidated analysis wasdone (refer to annexure)

Data interpretation:

Data was interpreted and inferences


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Conceptual vs. empirical:conceptual research isthe one that is related to some abstract idea(s) ortheory. It is generally used by philosophers and

thinkers to develop new concepts or to reinterpretexisting ones. On the other hand, empiricalresearch relies on experience or observation alone,often without regard for system and theory. It isdata based research. Coming up with conclusionswhich are capable of being verified by observation'or experiment.

Other:all other types of research are variation ofone or more of the above stated approaches,based on either the purpose of research, or thetime required to accomplish research, or theenvironment in which research is done, or on the

basis of some other factor From the point of view of


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FEASIBILITY OF

SAMPLING

Sample taken for the survey is very feasible and is used inpractice for a variety of reasons such as-

1.Sampling can save time and money. A sample study isusually less expensive than a census study and producesresults at a relatively faster speed.

2. Sampling may enable more accurate measurements for asample study is generally. Conducted by trained andexperienced investigators.

3. Sampling remains the only way when population containsinfinitely many members.

4. Sampling remains the only choice when a test involves the


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QUESTIONNAIREQUESTIONNAIRE

I would request you to kindly respond to thefollowing questionnaire. This study is meantexclusively for academic purpose. I would like toextend my deed sense of gratitude for providingvaluable insight that surely help in enriching myknowledge about today's investment trend andalso customer's perception about the invasion ofprivate companies in the scenario.

Personal details

NAME-

Occupation-

Address-


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5. Which mode of investment do you prefer the most?

Insurance

Gold

Equity

Mutual funds

Others

land Capital

6. Do you know about ULIP?

YES [ ] NO [ ]

7. Which type of investor are you?

Long term

Short term


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8. Which sector do you prefer the most for investment?

Government

Private.

9.Do you think that in present scenario people are divertingfor" investment towards private players?

Yes [ ] no [ ]

10.Have you taken any insurance and investment tool foryour self and your family?

Yes [ ] NO [ ]

11. Do you think insurance is good for future protection?

Yes [] no [ ]


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15. If yes, then why? On the basis of:

Returns

Services

Better prod ucts

Flexibility

Transparency

Face value of relativesOthers

16. Do you think private companies have created an impacton LIe?

YES [ ] NO [ ]

17. Mention any four companies in order of preference?

1)

2)


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20.Do you think that the market share of lie is decreasingday by day?

YES [ ] NO []

21. Do you know any person who has switched from lie toany private playe

YES [ ] NO [ ]

22.your overall experience in kotak life insurance?


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conclusion

Through the surveyconducted by me, ~reached the following

conclusions:

Among all the people


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On the other hand, the youngsters and the peoplebelonging' top the age group 30-40 understandthat their money will grow unto a better extent in

private insurer because their management is suchthat they offer greater and better

opportunities for exploitation and so they haveinvested their money in

private insurers and not much in LIC if at all theyhave invested.

A lot is stall to be done to make the people awarefor insurance and to eradicate the general feelingimbibed in the people that insurance is not for theirbenefit but for the benefit of the company alone.


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BIBLIOGRAPHYPublications:

Marketing management By-Philip kotler

Research methodology I By-C.R.kothari

Insurance in India By-P.S.palande

Insurance chronicle ICFAI Edition

Life Insurance Today Journal

WEBSITE VISITED

www.Kotaklifeinsurance.com

www.google.com
http://www.google.com/http://www.kotaklifeinsurance.com/http://www.google.com/http://www.google.com/http://www.kotaklifeinsurance.com/


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THANK YOU
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