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Introduction of Life
insurance
Insurance provides financial protection againsta loss arising out of happening of an uncertain
event. A person can avail this protection by
paying premium to an insurance company
A pool is created through contributions made bypersons seeking to protect themselves from
common risk. Premium is collected by
insurance companies which also act as trustee
to the pool. Any loss to the insured in case of
happening of an uncertain event is paid out of
this pool.
Insurance works on the basic principle of risk-sharing. A great advantage of insurance is that
it spreads the risk of a few people over a large
group of people exposed to risk of similar type.
Different Life Insurance products can help providethe following benefits :
Tax Savings Risk Coverage (Term Plan) Long Term Investments (Pension Plan / Child
Plan)
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Why do you need Life Insurance?:
Why do you need Life Insurance? Life Insurance is almost a
basic need. Its the first step in Personal Financial Planning
.It provides valuable benefits if you make your choices
carefully. Its a comprehensive wealth accumulation
solution that benefits almost all.
Life Insurance Products:
Life Insurance Products Unit Linked Insurance Plan
Traditional Savings Plan Protection or Term Plan Health
Insurance Plan
1.Unit Linked Insurance Plan:Unit Linked Insurance Plan A Unit Linked Life Insurance
Plan (ULIP) offers the dual benefits of protection as well as
savings which helps you to fulfill your long term financial
goals with the added advantage of flexibility and
transparency.
2.Traditional Savings Plan:Traditional Savings Plan Traditional plans are the oldest
types of Life Insurance plans available. They usually invest
in low risk return options and offer guaranteed maturity
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proceeds along with declared bonuses. It also offer you the
facility to take a loan against your investment
3.Protection or Term Plan :Protection or Term Plan Protection or Term plans have a
high risk protection component. The main objective of
these plans is to protect your family financially from
unforeseen circumstances.
4.Health Insurance Plan:Health Insurance Plan Health Insurance plans insure you
against several illnesses. They protect your peace of mind,
get rid of all worries about treatment expenses, and allow
you to focus on more important things, like getting better.
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Types Of Life Insurance
Products(Term Assurance)
Based on the benefit patterns the traditional LifeInsurance products can be categorised into the
following types:
Term Insurance Whole Life Insurance Endowment Insurance Annuities
Term Insurance provides for life insurance
protection for the selected term (period of years)
only. In case the person (whose life is insured) dies
during the term, the benefits are payable under the
policy and in case of his survival till the end of the
selected term the policy normally expires without
any benefit becoming payable. Term insurance may
be regarded as temporary insurance and is more
nearly comparable with "Property & Casualty
insurance" contracts than the other forms of Life
insurance contracts.
Types of Insurance Life Insurance Health Care Insurance Home Insurance
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Travel Insurance Auto Insurance
OBJECTIVE OF THE STUDY
To know the promotional strategies of lifeinsurance.
To know how they face their competitorsstrategies.
To know how they survive in the cutthroatcompetition.
To know the products of the ICICI prudential lifeinsurance
To know the product life cycle of the ICICIprudential life insurance
Product marketing
In an ideal world, you would usemarket researchto
find out what your customers want and then design
products to suit them.
http://www.marketingdonut.co.uk/marketing/market-researchhttp://www.marketingdonut.co.uk/marketing/market-researchhttp://www.marketingdonut.co.uk/marketing/market-researchhttp://www.marketingdonut.co.uk/marketing/market-research -
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In reality, product management starts with existing
products and you have to improve on them with
limited cash, skills and technological resources. But
the principle still applies - good product marketing
looks for ways to adapt and promote products to
match customer requirements.
Product features, design and quality can all be
tailored to the needs of your target market. So too
can its image and the customer service that you
provide.
Product positioning
Simply meeting customer needs is not enough - you
also need to make sure they pick you ahead of your
competitors.
You could focus on quality, reliability and customer
service to position your product as a premium
offering that's better than the competition.
Customising products and services for individual
customers will also make you seem unique.
A tight focus on the differentcustomer segments
you're targeting can help you identify opportunities
to differentiate effectively. Products targeted in this
way - such as car insurance specifically for women -
can give you a competitive edge, even if the product
itself has few specific features.
http://www.marketingdonut.co.uk/marketing/customer-care/customer-service-and-after-sales-servicehttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/marketing-strategy/market-segmentation-and-your-target-markethttp://www.marketingdonut.co.uk/marketing/customer-care/customer-service-and-after-sales-service -
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Product life cycles
Successful products don't often stay at the top for
long. What usually happens is that they follow a life
cycle, from introduction to the point where they are
overtaken by newer, better alternatives. If you
understand where your product is in its life cycle,
you can market it in a way that will maximise sales.
When you introduce a product, for example, you
need to invest in promotion to build awareness
(such as free samples) and target your marketing at
people who influence others to buy.
As the product's popularity grows, sales will
increase and your unit costs will go down. But
competitors will emerge to grab a share of the
profits to be made. Your marketing objective will
now be to maintain and increase your market share
- for example, by improving your offer and making it
more widely available.
Your sales will peak and competition will heat up as
the product reaches maturity. At this point,
stressing the way your offer differs from your rivals'
can help you maintain margins and market share.
Finally, sales will fall as new products emerge. At
this stage, you should focus on controlling costs
and boosting efficiency.
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New product development
1.Growth2.Maturity3.Decline
To keep up with your customers - and your rivals -
you will need to ensure you have a steady flow ofnew products.
If you're aiming to be the first to market with new
products, you'll need to invest heavily in innovation.
This is a high-cost, high-risk strategy, but the payoff
can be immense - especially if you patent your
innovation.
Being second to market is the best strategy if
you're a smaller firm with fewer resources. Costs
and risks are lower, and you need to focus more on
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differentiation than innovation to tap into a growing
market.
You should aim for a product mix that fits your
overall marketing strategy. If you sell products
which customers purchase infrequently (such as
printers) you should think about diversifying into
related products or services that are purchased
more often (such as consumables or service
contracts). Developing products that share the
same underlying platform can also be a cost-
effective way of using your existing product
expertise.
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Scope of the study:
For every problem there is a research. As all
the researches are based on some and my
study is also based upon some objective and
these are as follows.
To understand the insurance business andproducts of life insurance .
To find out the peoples perception about liinsurance.
To find out whether people were reallyaware of life insurance.
To find out how people think about privatelife insurance.
To find out what respondents expect fromlife insurance.
To understand Consumer buying behavior To come out with conclusion and
suggestions based on the analysis and the
nterpretation of data
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RESEARCH METHODOLOGY
Research in common parlance refers to a
search for knowledge. One can also define
research as a scientific and systematic search
for pertinent information on a specific topic.The
word research has been derived from French
word Researcher means to search.
RESEARCH DESIGN: Research Design is
the conceptual structure within which
research is conducted. It constitutes the
blueprint for collection, measurement and
analysis of data. The design used for
carrying out this research is Descriptive.
DATA TYPE:
In this research the type of data
collection is
Primary data
Secondary data
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DATA SOURCE: The sources of collection of
secondary data are:
Questionnaire Books Websites Magazine Brochure
SAMPLING PLAN:
It is very difficult to collect information from every
member of a population .As time and costs are the
major limitation that the researcher faces.
A sample of 100 was taken the sample size of 10
individuals were selected on the basis of convenien
sampling technique. The individuals were selected i
the random manner to form sample and data wer
collected from them for the research study.
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ANALYSIS AND INTERPRETATION:
Data collection through questionnaire and
personnel interview resulted in availability of
the desired information but these were useless
until there were analyzed. Various steps
required for this purpose were editing, coding
and tabulating. Tabulating refers to bringing
together similar data and compiling them in an
accurate and meaningful manner. The data
collected by questionnaire was analyzed,
interpreted with the help of table, bar chart and
pie chart.
Consumer Perception Towards Life Insurance
Product: An Empirical Study
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The life insurance plays a significant role in the well
being of the people. Till insurance sector reforms
the LIC has enjoyed the monopoly in life insurance
business. After liberalization when private
companies were allowed to start life insurance
business a number of multinational giants in life
insurance business have collaborated with Indian
companies to start insurance business in India. Now
this has posed a tough challenge to the LIC because
of their latest technical know how expertise well
structured marketing network etc. Of course the
LIC has also made its business functioning flexible
and faced the challenges boldly that emerged from
the process of insurance sector reforms.
Keeping in view the above issues the present bookon consumer perception towards life insurance
products has undertaken a comprehensive study in
this regard. In this study a special mention on
consumer behaviour particularly on the consumer
perception has been dealt elaborately. Further the
growth and development of life insurance sector
has been focused. Apart from this a survey has beenmade to study the consumer perception towards
insurance products offered by different life
insurance companies. A comparative analysis has
been made between public and private sector life
insurance companies in this regard. Further to
improve the functioning of the life insurance
companies and to protect the interest of the policy
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holders a few important suggestions have been
recommended. (jacket)
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Why do you invest in life insurance
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LIMITATIONS:-
The research is confined to a certain parts duto time constraints and does not necessari
shows a pattern applicable to all of Country.
Some respondents were reluctant to divulgpersonal information which can affect the validit
of all responses.
In a rapidly changing industry, analysis on onday or in one segment can change very quickl
The environmental changes are vital to b
considered in order to assimilate the findings.
Availability of quality resource Sample selection and size Time factor
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Findings
Majority of the public uses television foentertainment or information gathering, followe
by newspaper and internet. Radio is seems to b
out dated in urban areas. But after revolution i
mobile technology and satellite radio it has agai
started growing.
Majority of the public goes behind brand nameThats why corporate advertising plays a vita
role in growing stage.
It is also found that insurance companies like tgive their ads in News/Business channel.
Liking an advertisement does not mean thapublic would like to buy that product.
If we talk about the private players, publics firschoice is ICICI Prudential followed by HDF
Standard Life and Reliance Life Insurance.
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RECOMMENDATIONS AND
SUGGESTIONS
Followings are the recommendations and the suggestions not only for the
Aviva life insurance company but also for other private life
insurance companies if the want to complete with
public/government life insurance companies.
1.Creating positive image:Private companies should try their level best to create positive and
favorable image in the minds of people i.e. in the minds of their target
customers.
2. Training and development of F.C.: Company must providetraining to their agents and financial so that the can satisfy
customer and doubts effectively.
3.Concern towards customers: Serious concern must be given to
the customers as in todays scenario it regarded as
Customer is a king. In formal words we can say that if can customers
more loyal towards the company.
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4. Agency holder must be well educated: The Company shouldgive agency to that person who is well educated and can convince
the customer b handling his queries and doubts.
5.Co-operation with agents and branch managers:
The Company must full co-operate with branch managers and agents.
6. financial consultants and agents to motivate themand to solve grievances if there are any.
Availability of branch offices: There
must be the branch offices in each20-30 Km.
areas;
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7. Efficient management: The management appointed must be thatmuch capable that it can control the whole team
and improve the goodwill and image of the company.
8. Sales promotion and marketing:The marketing department must be so aggressive that it can have a close
watch on the competitors activities. Not only this but also it must take care
of the need and wants of the customers also.
9. Incentive schemes and permanency in job: There must begood incentive schemes to be designed as these can acts as good
motivators
for the agents. The scheme of permanent job placement must be introduce
for those F.C.
and agents who have shown extra ordinary performance.
10.Solution of Grievances: There must regular meetings with the
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CONCLUSION
Life insurance Corporation has completed
more than three decades and thats where
counts, inters of brand name, different
number of policies for differed class and
age group of customers.
Life Insurance has today become a mainstay of
any market economy since it offers plenty of
scope for garnering large sums of money for
long periods of time. A wellregulated Life
Insurance industry which moves with the times
by offering its customers tailor made products
to satisfy their financial needs is, therefore,
essential if we desire to progress towards a
worry free futureThe Private players are on the way, but
they need a lot of time investment for
creating a favorable brand image.
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BIBLIOGRAPHY
Marketing Managementby Philip Kotler, PearsonEducation 2nd ed.
Consumer Behaviorby Leon G.Schiffman, Prentice-HallIndia 8th ed.
IRDA Journal ICICI Prudential Company magazines Newspaper and Business magazines
WEBSITES
www.iciciprulife.com www.google.co.in/indian insurance industry www.irdaindia.org
http://www.iciciprulife.com/http://www.iciciprulife.com/http://www.google.co.in/indian%20insurance%20industryhttp://www.google.co.in/indian%20insurance%20industryhttp://www.irdaindia.org/http://www.irdaindia.org/http://www.irdaindia.org/http://www.google.co.in/indian%20insurance%20industryhttp://www.iciciprulife.com/ -
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QUESTIONNAIRE
Dear Sir/Madam,
I am a student of university institute of management,
conducting a marketing survey onproduct development
strategy of life insurance product, IN jabalpur CITY. I
request you to fill this questionnaire & I assure that this
data will be used only for study purpose & it will be keptconfidential.
1. Name _________________________________
2. Address __________________________________________________________________
_________________________________
3. Age
a.Less than 25 c. 35-45b.2535 d. 45 and above
4. Qualification
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a.Graduate c. Diplomab.Postgraduate d. Other discipline
5. Occupation
a. Business c. Job holderb. Professional d. Other
6. What is your average annual income?
a. Up to 1 lakhb. 1 lakh to 3 lakhsc. 3 lakhs to 5 lakhsd. 5 lakhs and more
7. Your family size
a. Below 5 membersb. 510 membersc. Above 10 members
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7. According to you life insurance is,a. A tax saving planb. A saving scheme with good returnc. A financial security for the familyd. Risk coveragee. All the above
8. Have you taken any life insurance product of ICICIPrudential Life insurance?
YES NO
If yes
9.Which are in these?a. Unit gain planb. Invest gain planc. Whole life pland.
Children plane. Pension planf. Others __________________
10. Are you aware of the benefits in your policy?
Yes No
If yes what are they?
Sum assuredAdditional benefitsMaturity date
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Risk coverage
11. According to you what are the disadvantages in an
insurance plan?
LapsationLiquidityFixed termUnable to decide your premiumUnable to decide the sum assuredHigh risk coverage at high premiumsOther disadvantages
12. In which of the following would you like to invest?
Equity fundDebt fundBalanced fundCash fundMutual fundRecurring deposits
13. Any suggestion for ICICI Prudential Life Insurance
______________________________________________________
______________________________________________________
Thank you for sparing your valuable time
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