project report 260140

8/6/2019 Project Report 260140

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A PROJECT REPORT

ON

Promotions and sales of Kotak life insurance

SUBMITTED TO

MAEERs MIT SCHOOL OF BUSINESS

BY

ANSHU PANDEY

Roll No. 260140

Batch No. 26

IN PARTIAL FULFILLMENT OFPOST GRADUATE DIMPLOMA IN MANAGEMENT

(PGDM)

MONTH, 2008-10

MAEERs MIT SCHOOL OF BUSINESS

PUNE


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Table of

C O N T E N T S

Chapter No. Title Page No.

Declaration from student V

Certificate from organization Vi

Certificate from Guide Vii

Acknowledgement Viii

List of Tables and Graphs 14-27

Executive summary ix

I Introduction 1-9

1.1 Background of the study 1-2

1.2 Important milestones in the

life Insurance business in

India

3-4

1.3 Company profile 5-6

1.4 Need of the study 7

1.5 Scope of the study 8


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1.6 Objectives of the study 9

II Research Methodology 10-12

2.1 Research design 11

2.2 Primary data 11

2.2 Secondary data 11

2.3 Sample design 11

2.3.1 Population 11

2.3.2 Sample size 11

2.4 Method of data collection 12

2.4.2 Instrument for data collection 12

2.4.3 Drafting of a questionnaire 12

2.4.4 Testing of questionnaire / Pilot survey 12

2.5 Field work 12

2.6 Data- analysis techniques 13

2.7 Limitations 13


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III Data Processing and Analysis 14-27

IV Findings and Conclusions 28

VI Recommendations 29

Bibliography 30

Appendices / annexure 31

Questionnaire/s 31


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DECLARATION

I, Mr ANSHU PANDEY here by declare that this project report is the record of authentic workcarried out by me during the period from 27th April,2009 to 27th June,2009 and has not been

submitted to any other University or Institute for the award of any degree / diploma etc.

Signature

Name of the student

Date


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CERTIFICATE

This is to certify that Mr / Ms-------------------------------------- of MAEERs MIT School of

Business has successfully completed the project work titled ------------------------------------ in

partial fulfillment of requirement for the completion of PGDM course as prescribed by

the MAEERs MIT School of Business.

This project report is the record of authentic work carried out by him/her during the

period from ------- to -------. He/She has worked under my guidance.

Signature

Name

Project Guide (Internal)

Date:

Counter signed by

Signature

Name

Director


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Acknowledgement

It gives me immense pleasure in presenting this project report on promotion and sales of

life insurance from Kotak Old Mutual Life Insurance Company ltd, near Shorab Hall,

Pune.

I express my deep sense of gratitude to My Company Guide Mr. Sushil Choudhary for his

valuable guidance during my project work. I would also like to all staff of Kotak Life

Insurance who guide me in project work.

I am thankful to Mr. N.J.Chavan (Faculty Guide) for valuable inspiration and guidance

provided by him throughout the course of this project. They have patient and critically

gone the subject matter. I would like to take opportunity to express my gratitude towards

all

of them who have contributed directly or indirectly in my project work.

Anshu Pandey


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Executive Summary

The purpose of this project is to enhance academic inputs by getting practical exposure to

the corporate world in the field of marketing. Further understand various management practices

in the field of marketing.

The work includes data collection, interpretation and analysis of data, meeting new

suspects and convincing them to become financial advisors of the company. Intense follow up

and informative presentation were required to finally close the sales. The process includes data

collection through various activities, cold calling and meeting them personally and finally

convincing them to be a part of Kotak Old Mutual Life Insurance.

The places of visits were post office, shopping malls, residential societies, local shops,

private firms, banks etc. during this process I was able to understand various Insurance practices

and strategies for the highly competitive insurance market.

Main objective was marketing channel development through market survey and further

convincing probable prospects to become financial advisors for Kotak Old Mutual Life

Insurance.

Research methodology used was descriptive and survey method was used to interact with

major potential customers. Simple sample methods with 200 respondents were used with a flowof questionnaire with structured questions. Will to earn extra income and availability of time

were considered while becoming financial consultants. Sales and promotional activities were

done to attract financial consultants.


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11Background of the study

The service industry is one of the fastest growing sectors in India today. The upcoming

sectors which are really showing the graph towards upwards are - Telecom, Banking, and

Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the

above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The

insurance business of non-life companies was not much in problems but the major problem was

with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years,

but the picture then was completely different. Previously people felt that Insurance is only for

classes not for masses but now the picture is vice-versa. The story of insurance is probably as

old as the story of mankind. The same instinct that prompts modern businessmen today to secure

themselves against loss and disaster existed in primitive men also. They too sought to avert the

evil consequences of fire and flood and loss of life and were willing to make some sort of

sacrifice in order to achieve security. Though the concept of insurance is largely a development

of the recent past, particularly after the industrial era past few centuries yet its beginnings date

back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental

Life Insurance Company started by Europeans in Calcutta was the first life insurance company

on Indian Soil. All the insurance companies established during that period were brought up with

the purpose of looking after the needs of European community and these companies were not

insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal

Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were

being treated as sub-standard lives and heavy extra premiums were being charged on them.

Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company

in the year 1870, and covered Indian lives at normal rates. Starting an Indian enterprise with

highly patriotic motives, insurance companies came into existence to carry the message of

insurance and social security through insurance to various sectors of society. Bharat Insurance

Company (1896) was also one of such companies inspired by nationalism. The Swadeshi

movement of 1905-1907 gave rise to more insurance companies.

The United India in Madras, National Indian and National Insurance in Calcutta and the

Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative

Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet


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Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life

(later Bombay Life) were some of the companies established during the same period. Prior to

1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance

Companies Act, and the Provident Fund Act were passed.

The Life Insurance Companies Act 1912 made it necessary that the premium rate tables

and periodical valuations of companies should be certified by an actuary. But the Act

discriminated between foreign and Indian companies on many accounts, putting the Indian

companies at a disadvantage.

The formation of IRDA, entrance of private life insurance companies into India with one

foreign partner, compulsory training of Insurance agents etc. developments started to take place.

And this was the time when these companies started searching for proper channel partners who

can help the organization in expanding its network and business in India. Channel partners are

those who are going to be into direct selling of companys products i.e. the insurance policies.

They are the link between the customers and the management or company. These channel

partners are people with different profiles. They are selected on some grounds like their network

of people, their problem handling ability, convincing power and lot many things.


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1.2 Important milestones in the life Insurance business in

India

1850 -Non life insurance debuts with triton insurance company.

1870 Bombay mutual life assurance society is the first Indian owned life insurer.

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a

capital contribution ofRs. 5 Crore from the Government of India.

1968- The Insurance Act amended to regulate investments and set minimum solvency margins

and the Tariff Advisory Committee set up.

1999 - The Insurance Regulatory and Development Authority Act, is an act to provide for the

establishment of an Authority to protect the interests of holders of insurance policies, to regulate,

promote and ensure orderly growth of the insurance industry and for matters connected there

with or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the

monopoly of the Life Insurance Corporation of India (for life insurance business) and General

Insurance Corporation and its subsidiaries (for general insurance business).


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CONTRIBUTION TO INDIAN ECONOMY

(i) Life Insurance is the only sector which garners long term savings.

(ii) Spread of financial services in rural areas and amongst socially less privileged.

(iii) Long term funds for infrastructure.

(iv) Strong positive correlation between development of capital markets and insurance/pension

sector.

(v) Employment generation.


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1.3 COMPANY PROFILE

Stock broking businesses in the UK. Kotak Group was established in 1985. Kotak Mahindra

Bank is the parent company of the group. Kotak Group entered into the life insurance business in

2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%). Old Mutual plc. is a world-Class

international financial services company. It was established in South Africa before 160 years.

OLD MUTUAL is the largest financial services business in South Africa, through its life

insurance, asset management, banking and

general insurance operations. The company serves 4 million life insurance policyholders and

employs over 13 000 South Africans in its local operations.

In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of

specialist asset management skills through its 23 asset management businesses. The companys

US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management; The OLD MUTUAL

Group has the ability to cater for a variety of consumer segments and offers a comprehensive and

innovative range of products for all income groups

Mission:

At Kotak Life Insurance, we aim to help customers take important

financial decisions at every stage in life by offering them a wide range

Of innovative life insurance products, to make them financially independent.


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1.5 Scope:

The project will help the company to understand the perception of people about life

insurance and financial advisors by exploring the views about the organization of various

respondents in Pune city. This study can be applied to various metro cities. This study can

only be used in sales and marketing channel development department of insurance

industry. This project will help organization to understand consumer behavior and hence

promote life insurance products in the Pune city.

Respondents had different demographics from various places in Pune city. Hence this

study is applicable to complete Pune city. This study is restricted to sales and promotion

only.


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1.6 Objective

Present study is to accomplish the following objective.

y To know about brand awareness of Kotak Life Insurance and customers preferenceabout Kotak Life Insurance.

y To understand the recruitment procedure of financial advisors.

y To determine the perception of financial consultants.

y To understand the sales process and structure of Insurance industry.

y To promote Kotak Old Mutual Life Insurance.


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RESEARCH METODOLOGY

Research always starts with a question or a problem. Its purpose is to question through the

application of the scientific method. It is a systematic and intensive study directed towards a

more complete knowledge of the subject studied. Marketing research is the function which links

the consumer, customer and public to the marketer through information- information used to

identify and define marketing opportunities and problems generate, refine, and evaluate

marketing actions, monitor marketing actions, monitor marketing performance and improve

understanding of market as a process.

Marketing research specifies the information required to address these issues, designs, and the

method for collecting information, manage and implemented the data collection process,

analyses the results and communicate the findings and their implication.

I have prepared our project as descriptive type, as the objective of the study demands the answers

of the question related to find the potentiality of life insurance in Surat: How much potential is

there in Surat?

The Marketing Research Process

As marketing research is a systemic and formalized process, it follows a certain sequence of

research action. The marketing process has the following steps:

formulating the problems

Developing objectives of the research

designing an effective research plan

Data collection techniques

evaluating the data and preparing a research report


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2.1Research design

Research design used consists of survey research studies which can lead to wider scope and

detailed information can be obtained. The study is carried out to know the characteristics of

group such as age, sex, occupation, education, and income.

There are two types of data collection method use in my project report.

- Primary data- Secondary data.

2.2 Primary data collection method - Observing working of company and approaching

customers directly in the field, tele-calling, cold calling , campaigning and through references to

know their interest in business with company in my project and also make questionnaire for

creating database of business class, working house wives, retired people in Pune city for

company.

2.2 Secondary data collection method - By referring to various websites, books, magazines,

journals and daily newspapers for collecting information regarding project under study.

2.3 Sample Design:

Sample design used was based on availability of the respondents. Various places for availability

of the respondents were identified and accordingly field work was conducted.

2.4 Population:

It was mainly consisted of working class, retired people and housewives. Large portion of the

population consisted of age group above 25 years of age.

2.5 Sample size:

Sample size consisted of 200 respondents distributed over various parts of Pune city.Though the

sample size is small but has been collected from various parts of the city hence could work as


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focus group for complete pune city. Further my colleagues were also working on the same

project and hence the company could collect a large amount of data.

2.6 Instruments of data collection:

The instruments used for survey was questionnaire. This is most widely and effectively used

tool. Further telephonic conversation and other promotion activity on the field was used. The

Questionnaire was efficient enough for proper assessment and fulfilling the objectives of

research.

2.7 Methods of data collection:

Observing working of company and approaching customers directly in the field, tele-calling,

cold calling , campaigning and through references to know their interest in business with

company. The respondents were interviewed and asked the questions from the questionnaire to

collect the necessary information. This method is effective and reveals more information about

the respondents.

2.8 Drafting the questionnaire:

The questionnaire was drafted to know the perception of the sample size towards Kotak Old

Mutual life Insurance. Simple questions designed in a structured and systematic format helped to

fetch quick response from the respondents. It consisted Of 12 questions regarding age

occupation, mobile, household income, number of years in Pune city and education etc. the

question was drafted under senior marketing channel manager.

2.9 Field Work:

Work was to meet respondents at various identified location across the city. Collecting required

information and providing information about kotak products and opportunities.


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2.10Data Analysis:

It includes scaling method to analyze the perception of the respondents about kotak products.

Further graphical analysis was done to help interpret the data in the required format.

2.11 Limitation:

y The project was limited to 2 months.y Sample size was just 200 respondents.y Restricted only to Pune city.y As the process is time consuming, vast area could not be covered.


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Data Processing and analysis

Table No.1: Age wise consideration for Financial Consultants.

Sr.no. Category no. of

respondents

Percentage

1 18-23yr 40 20%

2 24-29yr 70 35%

3 30-35yr 60 30%

4 35 &

above

30 15%

Total 200 100%

Interpretation

Age has considerable influence on the willingness of individuals to become a financial

consultant.

Findings:

During the project it was found that individuals in the age group of 22-52 year were

interested in additional source of income than the other age group. Probably, the reason could

be responsibilities and urge to have a parallel source of income.

Suggestion:

Hence this is the age group which we need to target for promotion and sales of Life Insurance

products.


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Graph:

18-23yr

24-29yr

30-35yr

35 & above


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Table no 2. Educational qualification wise consideration for Financial Consultants.

sr.no. Category no. of

respondents

Percentage

1 Below 10t 4 2%

2 10th 15 8%

3 12th 24 12%

4 Graduation 119 61%

5

Post

graduation

34 17%

Total 200 100

Interpretation:

Qualification of an individual is a major consideration for becoming a financial consultant asthere is a minimum level of qualification standards required by the IRDA. Hence this activity

help understand the availability of eligibility criteria among respondents.

Findings:

90% of the respondents belong to 12 th and above in education.

Suggestions:

Hence promotion should be done about financial consultants in an extensive way since the target

market is huge.


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Graph:

Below 10th

10th

12th

Graduation

Post graduation


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Table no.3 Occupation wise consideration of Financial consultants.

sr.no. occupation no. of

respondents

Percentage

1 student 13 7%

2 Salaried 38 19%

3 Self

employed

102 50%

4 House

wives

38 19%

5 Retired 9 5%

Total 200 100

Interpretation:

The occupation of an individual help perceive the capability of a person to provide time for the

job. Except self employed rest all have good prospects of becoming financial consultants.

Findings:

Above data states that 50% of the respondents are self employed therefore it will be difficult for

them to provide time.

Suggestion:

Promotion should be done among the salaried, housewives and retired people for better results.


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Graph:

student

Salaried

Self employed

House wives

Retired


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Graph:

Less Than 1lakh

1.2-2.5 lakh

2.5-4.2lakh

More than 4.2lakh


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Table no.5 Are you insured?

sr.no. category no. of

respondents

Percentage

1 yes 60 30%

2 No 140 70%

total 200 100%

Interpretation:

Though there is a huge competition in Insurance Industry still there is a huge market which needs

to be explored.

Findings:

The above data states that 70% of the market are still not having any life Insurance policy.

Suggestions:

Increase channel distribution to reach the untapped market.


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Graph:

0

20

40

60

80

100

120

140

160

1 2

yes

No


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Graph:

0

20

40

60

80

100

120

140

160

180

200

1 2

yes

No


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Table no.7 Willingness to become Financial Consultants?

sr.no. Willingness no. of

respondents

Percentage

1 interested 70 35%

2 Not

interested

104 52%

3 cannot say 26 13%

Total 200 100%

Interpretation:

Hence they are found to be skeptical about the job. Hence they are not aware of the facilities

provided to financial advisors by Kotak Old Mutual Life Insurance.

Findings:

Above data states that only 35% of the respondents are interested in the job of financial

consultants and 65% come in not sure segment.

Suggestions:

Facilities and benefits of the Job should be promoted to change the perception of the people.


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Graph:

interested

Not interested

cannot say


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Findings and Conclusion:

SPECIFIC FINDINGS:

1) During the project it was found that individuals in the age group of 22-52 year wereinterested in additional source of income than the other age group. Probably, the reason

could be responsibilities and urge to have a parallel source of income.

2) 90% of the respondents belong to 12 th and above in education.3) Above data states that 50% of the respondents are self employed therefore it will be

difficult for them to provide time.

4) The above graph depicts that more than 62% households have income more than 2.4 lakh.5) The above data states that 70% of the market are still not having any life Insurance

policy.

6) 90% of the repondents are willing to work with kotak Oldmutual Life Insurance.7) Above data states that only 35% of the respondents are interested in the job of financial

consultants and 65% come in not sure segment.

There is a huge scope for growth in Insurance Industry as 70% of the market still needs to

be explored. There is a huge competition where majority of them are trying to increase

their market share. People are not aware about the facilities provided to Financial

consultants as most of them are skeptical about becoming Financial consultants.

Only 35% of the respondents are willing to become financial consultants.

Majority of the respondents who were interested in the job offer were of age 30 and above.

More than 90% of the people are willing to work and earn extra income with Kotak

Oldmutual Life insurance.

Few respondents who were already working in Financial field as tax consultants, bankers,

Investors were already aware of insurance products and its benefits.


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Recommendations:

These recommendations are based on the analysis done during the summer training.

There is a lack of awareness about the role of financial advisors. People still believe that the jobof financial consultants is a tedious job of a sales man and will require huge efforts from their

side. Hence they should be made aware of the various benefits of being a financial advisor, like:

y Alternate source of incomey Sales Manager Support in case of Kotak Life insurance.y Work timing flexibility and various other incentive schemes.Further people need to be informed that Life Insurance not only provides worry free life but

also have various other benefits like:

y Tax benefitsy High Investment returnsy Secured LifeIn Indian market where life Insurance means LIC and other private players there is a huge

competition for kotak to sustain itself. Hence a continuous promotion and advertising strategy is

required to attain above objectives. This can be done through:

y Hoardings and bannersy Help desks in various companies, malls and societies.y Leaflets distribution with complete information.y Sponsoring public events and communicating information.y Organizing events in school and colleges for data collection.y Using Media for advertisement.y Using existing advisors for promotion.Further, continuous efforts are needed to generate relevant data. Feedbacks form the existing

consultants will help understand the problems faced by them. These problems should be

improved and the job should be promoted accordingly.


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Bibliography

Websites for reference:

www.kotak.com

www.google.com

Books referred:

Marketing Management Philip Kotler


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Annexure

Questionnaire

Good Morning sir/madam, I am Anshu Pandey, a student of MITSOB. This survey is to

understand consumer perception about life insurance advisors and Kotak life insurance

products. Please help me in completing this research work by providing these relevant

information

1. Name:2. Age:3. Marital Status:4. What is your educational qualification?

Below 10th 10th 12th

graduate Post graduate

5. What is your current occupation?Salaried Student Self employed

Housewives Retired

6. What is your current family annual income?4200000

7. Are you insured?Yes No

8. would you like to earn with Kotak Old Mutual Life Insurance?Yes No

9. Would you like to become Financial consultant?Yes No


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project report 260140

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