“BRAND PERCEPTION OF MAX NEW YORK LIFE INSURANCE IN KHURDA DISTRICT”

“BRAND PERCEPTION OF MAX NEW YORK LIFE INSURANCE IN

KHURDA DISTRICT”..,

SUBMITTED By:-

BRAJA KISHORE PRADHAN

Reg-No-S0812

Submitted for partial fulfillment of the requirement of PGDM 2008-10

Under the joint guidance of

BRAJA KISHORE PRADHAN, PGDM, CSREM Page 1

SUBHASISH SABAT Prof. JEEVAN J ARAKAL

Sales Manager &

MNYL, Vani Bihar, Mrs. SWAPNA KULLURU

Bhubaneswar CSREM, Paralakhemundi

Date- 06.06.20009 Date- 06.06.20009

CERTIFICATE FROM THE ORGANISATION

This is to certify that, Mr. Braja Kishore Pradhan, (Reg-S0812) a

student of Centurion School of Rural and Enterprise Management,

Paralakhemundi, Orissa, India did his summer training under me at

Max New York life Insurance co. ltd., metro house near vani Bihar

square, Bhubaneswar Spanish form the months of April 6 - June 6,

2009.

SUBHASISH SABAT Date:-

Sales Manager Place:-

MAX NEW YORK LIFE INSURANCE CO. LTD.

Metro house (Near Vani Vihar Square)

2nd floor, a-410, Sahid Nagar, Bhubaneswar-751007

E-MAIL: [email protected]

Mob: 09937096453


mailto:[email protected]

CERTIFICATE FROM THE GUIDE

This is to certify that work entitled Project title” Brand Perception of Max New

York Life Insurance in Khurda District ” is a piece of work done by Mr. Braja

Kishore Pradhan under my guidance and supervision for the partial fulfillment

of degree of PGDM, Centurion School Of Rural and Enterprise Management,

Paralakhemundi.

To the best of my knowledge and belief the thesis:

a. Embodies the work of the candidate himself.

b. Has duly been completed.

c. Fulfills the requirements of the rules and regulations relating to the

summer internship of the institute.

d. Is up-to the standard both in respect to contents and language for being

referred to the examiner.

Signature of the Faculty Guide

Date: - Name of the faculty guide

Prof. JEEVAN J ARAKAL & Mrs.

Place: SWAPNA KULLURU

Designation


I Braja Kishore Pradhan a student of CENTURION SCHOOL OF RURAL

AND ENTERPRISE MANAGEMENT do here by declare that the project report

“Brand Perception of Max New York Life Insurance Co. Ltd in Khurda

District”, is the product of my own knowledge and effort. No part of this report

has been submitted to anyone at time before. It has been submitted fully or partly

to the CENTURION SCHOOL OF RURAL AND ENTERPRISE

MANAGEMENT for awarding project marks of any other.

Date: Braja Kishore Pradhan

Place: Roll- S0812


DECLARATI

ON

It gives me immense pleasure to acknowledge all those who have given me things, time and

energy to supply all valuable facts and opinions that has helped me in bringing out this project

to fruition.

This project undertaking is result of the contributions received from a number of people.

Never can this repot be claimed as my individual effort. No amount of words will be sufficient

and adequate to acknowledge all the people who have provided me with the inspiration,

guidance and help during the preparation of the project. There for I extend my deep sense of

gratitude towards them.

I wish to express my sincere regards to my guide Mr. Subhasish Sabat (Sales Manager) whose

keen interests, valuable guidance constant supervision were a source of inspiration to give this

work a real shape.

My hearty thanks to staff of Max New York Life Insurance and all of them who helped me in

completion of my project.

Above all I thank the God Almighty for his immense grace and blessings at each and every

stage of the project.

I would like to express my respectful thanks to my faculty guide Prof. Jeevan J Arakal and

Mrs. Swapna Kulluru, Centurion School Of Rural and Enterprise Management(CSREM),

Paralakhemundi for her constant support and guidance.

I also thank all my respondents and friends who were instrumental in the successful

completion of my project.

Once again I thank all those who have contributed for completion of this project. Last but not

the least I would like to thank the company management for their kind help and co-operation.

Braja Kishore Pradhan

Roll – S0812


ACKNOWLEDGEMENTACKNOWLEDGEMENT

CENTURION SCHOOL OF RURAL AND ENTERPRISE MANAGEMENT,

PARALAKHEMUNDI

- ON THE JOB TRAINING : 08

- EXECUTIVE SUMMARY : 10

- INTRODUCTION: Brief introduction of brand perception 12 Company’s background 17 Achievement 19 Organization Structure 23` A brief introduction about insurance industry 15 Objectives of this study 25 Limitations of this study 25 Literature Review 29- BRAND BUILDING PROCESS OF MNYL 32 3C's Model 38 70/20/10 Model 41- KHURDA DISTRICT AT A GLANCE 42

- METHODOLOGY: 44 Sample Types of data Data collection method

- RESULTS : 47 Analysis of data, Tabulation, 48 Graphical presentation 52

- FINDING AND RECOMMENDATION 71- CONCLUSION 73 - BIBLIOGRAPHY : 74 - ANNEXURE : 75

List of tables & diagrams


Contents Contents

Page No.

Table & diagram no Particulars Page no. T 1.1 AGE CATEGORY 53 T 1.2 OCCUPATION 54 T 1.3 MONTHLY EXPENDITURE ON HEALTH CARE 55 T 1.4 FACTORS DECIDES THE PURCHASE OF INSURANCE PRODUCT 56 T 1.5 BRAND AWARENESS 57

T 1.6 TOP OF MIND RECALL 58 T 1.7 AWARNESS OF THE PUNCHLINEMNYL 59 T 1.8 PRODUCTRATING 60 T 1.9 MNYL AWARENESS 61

T 1.10 SOURCES OF GETTING INFORMATION ABOUT MNYL 62

T 1.11 SERVICE QUALITY OF MNYL 63

T 1.12 OVERALL RATING OF MNYL 64

T 1.13 BRAND EXTENSION 65 T 1.14 CHANCES OF MNYL CUSTOMER TO BUY OTHER MNYL PRODUCT 66 T 1. 15 CHANCES PEOPLE WILL REFER MNYL TO OTHERS 67 D 1.1 AGE CATEGORY 68 D 1.2 OCCUPATION 55 D 1.3 MONTHLY EXPENDITURE ON HEALTH CARE 56 D 1.4 FACTORS DECIDES THE PURCHASE OF INSURANCE PRODUCT 57 D 1.5 BRAND AWARENESS 59 D 1.6 TOP OF MIND RECALL 60 D 1.7 AWARNESS OF THE PUNCHLINEMNYL 61 D 1.8 PRODUCTRATING 62 D 1.9 MNYL AWARENESS 63 D 1.10 SOURCES OF GETTING INFORMATION ABOUT MNYL 64 D 1.11 SERVICE QUALITY OF MNYL 65 D 1.12 OVERALL RATING OF MNYL 66 D 1.13 BRAND EXTENSION 67 D 1.14 CHANCES OF MNYL CUSTOMER TO BUY OTHER MNYL PRODUCT 68 D 1.15 CHANCES PEOPLE WILL REFER MNYL TO OTHERS 69

T- TABLE, D- DAIGRAM


1. On The Job Training (OJT) gives a practical exposure and helps in acquiring the on road

skills.

2. First and foremost objective is to recruit financial advisors and to sell the various products of

MNYL.

3. To gain the complete knowledge about the products of MAX NEW YORK LIFE

INSURANCE COMPANY.

4. To generate the leads through the survey.

5. To sort out the prospective leads from the data I have collected through the survey.

6. To build the relationship with the new customers and to follow up them, make sure that they

are satisfied with the product.

7. To maintain good relationship with the corporate employees.

8. To get more references from the customers and generate new leads by following a chain

process.

9. To introduce MNYL to those people who don’t have any knowledge about MNYL and its

products and services.

10. To find out the customer awareness on booming financial market and to find out the

investment patterns of the people.

11. To make the customer aware of the benefits of the products from different competitors.

12. We also came to know about the various products of MNYL and its detail benefit that the

customer will get.

13. How to convince a customer through the telephone to sell products by following the

customer database.

14. If any new product is launched by MNYL then how it will be communicated to exiting

customers and targeting new potential customers.

I came to know the smart recruiting process.


ON THE JOB TRAINING ON THE JOB TRAINING

1. Achieving your target within a limited time

2. I have to know more than my client

3. Patience

4. To understand the clients perception (how to motivate and convince them)

5. Maintaining a healthy relation with company and employee.

6. Punctuality

7. Discipline


Things Which I Learnt From OJT

In today’s corporate and competitive world, I find that insurance sector has the maximum growth

and potential as compared to other sectors. Insurance has the maximum growth rate of 70-80%

while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to

enter in this sector and MAX NEW YORK LIFE INSURANCE has given me the given me the

opportunity to work and get experience in highly competitive and enhancing sector. This project

studies the brand perception of MNYL and various benefits derived by them in MAX NEW

YORK LIFE INSURANCE LTD.

The project gives a detail description of brand perception which includes brand equity, brand

image and various benefits derived from them. The most important assets of any business are

intangible — including its base of loyal customers, brands, symbols & slogans — and the brand’s

underlying image, personality, identity, attitudes, familiarity, associations and name awareness.

These assets — along with patents, trademarks, and channel relationships — comprise brand equity,

and are a primary source of competitive advantage and future earnings. By developing strong &

consistent images, well-regarded brands generate hidden assets — or brand equity — that give them

distinct advantages. Brand equity is a form of wealth that is closely related to what accountants call

"goodwill." Given the importance that brand equity has for companies operating under contemporary

conditions, it seems fully justified to explore how and with what intensity various factors impact

brand equity. Such findings may serve as guidance to managers on the various markets. This study is

aimed at giving the managers an insight about how they can build and maintain the brand equity of

Apparel brand names, and certainly represent a scientific contribution to a better understanding of the

mechanisms, ways and intensity of influence of individual elements on brand equity. The objective

of this paper is to explore how brand image affects brand equity.

Apart from these, relation building is a matter of immense concern now days. Relation building

is referred to as a corporate asset in this study. In this fast moving competitive era and growing

population of service providers the major task rather than to create a customer is to retain him.

Previously Indian market was week in financial instrument dealings but now a day there is a


EXECUTIVE SUMMARY EXECUTIVE SUMMARY

growing need for financial products and the Indians are taking much interest in dealing with it.

The rising trend of stock exchange shows the increasing demand and good work that is being

done by the financial institutions.

CHAPTER-1

Brief introduction of brand perception- What is brand image?- Role of brand in economic development- Benefits of brand

Brief introduction of insurance- What is insurance?- Different types of insurance- Role of insurance in economic development- Benefits of insurance

Company background- About the company- Achievements- Board of Directors- Its organization structure

Objectives and limitation of the study


The human life on the planet Earth is a continuation of trends in human behavior that have been

following cyclical patterns throughout our history. In the history we can find that certain brands

are much ahead of others (customers prefer these or keep on buying these) and it is quite

important to study about the factors which influence the relationship between these brands and

the customers.

Brand image, which usually includes the product name, its main physical features and

appearance (including the packaging and logo), and its main function(s) is the key to answer the

question of how the consumer chooses among alternative brands after information-gathering

process of buyer behavior. Alternative evaluation is how the consumer uses this information to

evaluate the options and arrive at a brand of choice. The perspective focusing on psychological

attributes of a product of consumer behavior states that consumers often choose products,

services and activities over the others because they associate these attributes with a certain life-

style, a self image or a status symbol. The customers attempt to preserve or enhance their self-

image by buying products that they believe are congruent with that self-image and by avoiding

products that are not (Sergey 1982).

Research by McKinsey & Company, a global consulting firm, in 2000 suggested that strong, well-

leveraged brands produce higher returns to shareholders than weaker, narrower brands. Taken

together, this means that brands seriously impact shareholder value, which ultimately makes

branding a CEO responsibility. The brand is a distinguishing name and/or symbol (logo, trademark,

or package design) intended to identify the origin of the goods or services — and to differentiate

those goods or services from those of competitors. A brand signals to the customer the source of the

product — and protects both the customer and producer from competitors who would attempt to

provide products that appear to be identical.

Once a brand has created positive sentiment among its target audience, the firm is said to have built

brand equity. Some examples of firms with brand equity - possessing very recognizable brands of

products - are Microsoft, Coca-Cola, Ferrari, Sony, The Gap and Nokia. Legal protection given to a

brand name is called a trademark.


A brand is a promise made to its customers and shareholders. Promises that are kept yield loyal

customers and produce steady streams of profits. Brand equity is initially built by laying a foundation

of brand awareness — eventually forming positive brand images — and is ultimately maximized by

high levels of brand loyalty.

An interesting question is raised- can brands have negative brand equity? From one perspective,

brand equity cannot be negative. Positive brand equity is created by effective marketing including via

advertising, PR and promotion. A second perspective is that negative equity can exist. Looking at a

political "brand" example, the "Democrat" brand may be negative to a Republican, and vice versa.

The greater a companies brand equity, the greater the probability that the company will use a family

branding strategy rather than an individual branding strategy. This is because family branding allows

them to leverage the equity accumulated in the core brand. Aspects of brand equity includes: brand

loyalty, awareness, association, and perception of quality.

Brand image is everything. It is the sum of all tangible & intangible traits — the ideas, beliefs, value

represents all internal & external characteristics — the name, symbol, packaging, literature, signs,


vehicles & culture. It's anything & everything that influences how brand or a company is perceived

by its target constituencies — or even a single customer.

Brand image may be the best, single marketable investment a company can make. Creating or

revitalizing a positive brand image is a basic component of every business — and lays a foundation

on which companies can build their future.


Insurance industry

Insurance industry is a booming sector. The business of insurance is related to the protection of

the economic value of asset. Every asset has a value. The asset would have been created through

the efforts of the owner, in the expectation that, either through the income generated there from

or some other output, some of his needs would be met. There is a normally expected life time for

the asset during which time it is expected to perform. Insurance is a mechanism that helps to

reduce such as adverse consequences.

WHAT IS INSURANCE?

Basic aim of the insurance plan satisfies the following objectives:-

Protection of economic value of assets.

Mechanism to reduce impact of adverse events on value generating assets.

Types of insurance

Insurance is generally classified into three main categories:

1. Life Insurance.

2. Health Insurance.

3. General Insurance.

To get insurance an individual or an organization can approach to Insurance Company directly,

through Insurance agent of the concerned company or through intermediaries.

ROLE IN ECONOMIC DEVELOPMENT

Insurance directly or indirectly plays a vital role in the economic development of the country

through the following means:-

Life insurance is a major instrument in mobilizing the savings of the people. These

savings are channeled into investments for economic groups.

The strength of life insurance is in the fact that huge amounts are collected and pooled

together for the benefit of the policy holders.


The insurance company is in the role of fiduciary- that all decision be made for the

benefit of the community.

INSURANCE- THE BUSINESS

It fulfills the criteria like:-

Brings together people with common interests.

Collects contribution- premium

Pay compensation- claims

BENEFITS OF INSURANCE

Insurance is the instrumental of Security, saving and peace of mind. It provides several benefits

by paying a small amount of premium to Insurance Company as:

Safeguards oneself and one’s family for future requirements.

Peace of mind in case of financial loss.

Encourage saving.

Protection from the claim made by the creditors.

Security against a personal loan, housing loan or any other types of loan.

Provide a protection cover to industries, agriculture, women and child.


Company overview: - MNYL

Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a

Fortune 100 company and Max India Limited, one of India's leading multi-business corporations.

The company has positioned itself on the quality platform. In line with its vision to be the most

admired life insurance company in India, it has developed a strong corporate governance model

based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The

strategy is to establish itself as a trusted life insurance specialist through a quality approach to

business.

Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with its

values of financial responsibility, Max New York Life has adopted prudent financial practices to

ensure safety of policyholder's funds. The Company's paid up is Rs. 1032 crore.

Having set a best in class agency distribution model in place, the company is spearheading a

major thrust into additional distribution channels to further grow its business. The company has

multi-channel distribution that includes the agency distribution, partnership distribution, banc

assurance, distribution focused on emerging markets and alliance marketing through employed

sales force. The company currently has 33 banc assurance relationships, 14 corporate agency tie-

ups and direct sales force at 14 locations. Max New York Life has put in place a unique hub and

spoke model of distribution to deepen rural penetration. The company has 39 (9 hub office 30

spoke offices) offices dedicated to emerging markets in Punjab and Haryana. Max New York

Life offers a suite of flexible products. It now has 38 products covering both life and health

insurance and 8 riders that can be customized to over 800 combinations enabling customers to

choose the policy that best fits their need. Besides this, the company offers 6 products and 4

riders in group insurance business.

Vision:

To become the most admired life insurance company in India.

Mission:

Become one of the top life insurance companies in India


Be a national player

Be the brand of first choice

Be the employer of choice

Become principal of choice for agents

Table: 1.1

Values:

The vision to become India's most admired life insurance company will be realized through our

unique set of values, which are as follows:

Caring:

Max New York Life is redefining the life insurance paradigm by focusing on its customers first.

The service process is responsive, personalized, humane and empathetic. We build brand

champions and every individual who represents the company is considered as a brand champion.

Honesty:

Honesty is the core of all life insurance business. Transparency, integrity and dependability form

the cornerstones of Max New York Life experience. The company ensures that everyone who

represents the brand carries a promise: we care — in word as well as in actions.

Excellence:

Excellence at Max New York Life implies the ability to perform consistently at the highest level.

Focused on the value of continuous improvement in people, processes and the organization, the

company strives for maximum standards of quality in every aspect of its business.

Knowledge:

Knowledge leads to expertise; and our expertise is in helping people protect themselves.

Perfectly combining global expertise with local knowledge, we are India's life insurance


CORE VALUES OF MNYLCARING

HONESTY

EXCELLENCE

KNOWLEDGE

INTEGREITYTeam work

specialist. Max New York Life believes that for knowledge to be of significance it must be

focused, up to date, tested and shared.

Some of the industry firsts

First company to provide free look period of 15 days to the customer. This was later

made mandatory by the regulator

First company to start toll free line for agent services

First and the only life insurance company in India to implement Lean methodology of

service excellence in service industry

First life insurance company in India to provide various services to the agents and

customers over phone

First Indian life insurance company to start service center at the regional level

First life insurance company in India to be awarded ISO 9001:2000 certification

Awards

Among the top 25 companies to work for in India, according to Business world 2003

‘great workplaces india’.

Among the top five most respected insurance companies in India as per Business world

2004 & 2006 survey

Won Indo-American Corporate Excellence Award for Best Indo-US company in

Financial Services Category in 2006

Received ‘Best Six Sigma Project’ award at Sakal Six Sigma Excellence Awards – 2006

Among top 3 in Asia Life Insurance Company of the Year Award 2007 instituted by Asia

Insurance Review

Received the Amity Corporate Excellence Award – 2007

Received the ‘Outlook Money Award’ for being “among the best new insurers in the country”.

Max India Ltd.

Founded in 1985, Max India Limited is a Public Limited company listed on the NSE and BSE of

India with over 26,000 shareholders. Today, Max India Limited is a multi-business corporate,


http://www.maxindia.com/

driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses

of:

Healthcare (Max Healthcare)

Life Insurance (Max New York Life Insurance) Clinical Research (Neeman Medical

International)

Max also maintains interests in:

Specialty Plastic Products for the packaging industry (Max Specialty Products)

Healthcare Staffing (Max Health Staff)

Prominent shareholders are Mr Analjit Singh and a leading private equity firm, Warburg Pincus

which accounts for 28.7% of the total shareholding. The balance shareholding is held by the

public and Institutional Investors.

Till 1999, the company’s main interests and partnerships were the following:

Business

Bulk Active Pharmaceuticals, Electronic Component Distribution, Mobile Telephony, V-SAT

Communications, Plating Chemicals Information Technology.

Partners

DSM Gist Brocades, Motorola, USA , Avnet Inc., USA , Hutchison Telecom Ltd. Hong Kong ,

Comsat Investment Inc., USA & Lockheed Martin, USA , Atotech, Germany , Mind Crossing,

USA.

In 2000, the Company reinvented and restructured itself to focus on the businesses of ‘Life’

under the themsse, Life…Our Focus.

Max New York Life Insurance, founded as a Joint Venture between Max India Limited and New

York Life, a Fortune 100 company, is one of the leading private life insurers in India.


Max Healthcare, a subsidiary of Max India Limited is India’s first provider of comprehensive,

standardized, seamless, and integrated world-class healthcare services.

Neeman Medical International (NMI) is an International Clinical Research provider operating

across three locations spanning North America, Asia and Latin America. Each location is backed

by comprehensive infrastructure and highly skilled and experienced personnel.

New York Life LLC

New York Life Insurance Company,(www.newyorklife.com) a Fortune 100 company founded in

1845, is the largest mutual life insurance company in the United States and one of the largest life

insurers in the world. Headquartered in New York City, New York Life’s family of companies

offer life insurance, annuities and long-term care insurance. New York Life Investment

Management LLC provides institutional asset management and retirement plan services. Other

New York Life affiliates provide an array of securities products and services, as well as

institutional and retail mutual funds.

The mission of New York Life is to maintain its superior 'financial strength', adhere to the

highest standards of 'integrity' and demonstrate 'humanity' by treating its customers, agents and

employees with compassion, consideration and respect.

New York Life is one of the largest and strongest life insurance companies in the world with

more than USD$215 billion assets under management and has received among the highest

ratings for financial strength from the life insurance industry's principal rating agencies: A.M.

Best (AA+), Standard & Poor's (AA+), Moody's (Aa1), Fitch (AAA). “According to Moody's,

"New York Life's rating reflects the company's good quality investment portfolio, ample


NYL INSURANCE BUILDING

http://www.newyorklife.com/

http://en.wikipedia.org/wiki/Image:New_York_Life_Building_2.jpg

liquidity, and sound capitalization, as well as the good growth potential of its international

business.”

As a leader in the insurance industry, New York Life continues to bring to its operations new

management concepts, advanced technologies, new distribution and training systems and

innovative insurance products.

WHO’S WHO IN MNYL

Board of Directors

Analjit Singh

Chairman,

Max India Limited

Gary R. Bennett

Managing Director and CEO,

Max New York Life Insurance

Anuroop 'Tony' Singh

Vice Chairman,

Max New York Life Insurance

Ted Mathas

President & Chief Operating Officer,

New York Life Insurance

Management TeamGary Bennett Managing Director and CEO, Max New York Life Sunil Sharma Chief Operating Officer and Executive Director Rajit Mehta Executive Director ,Human Resources, Training and Internal Communications Rajesh Sud Executive Director, DistributionAnil Mehta Director, Group Business Sunil Kakar Director and Chief Financial Officer


Ajay Seth Director, Legal & Compliance Debashis Sarkar Director - Marketing, Product Management and Corporate Affairs John Poole Chief Actuary

Table: 1.2Organizational structure of MNYL


Zonal vice president

Regional manager

Partner in charge /Regional

Partner

Associate partner

Sales manager

Associate sales manager

Managing partner

Managing partner multilocation

Competitors

After the privatization in India in 1999, under the Insurance Regulatory Development Authority

(IRDA) many insurance companies came to India to set up their business. Till now 23 insurance

companies have formed their grip here in the country and running profitably and selling life

insurance plans.

Max New York Life was set up in India in 2000 and in December 2004 started its business in

Bhubaneswar after getting the license in November. Till date it has achieved a prestigious place

among the citizens of India and well competes with its competitors.

The major competitors of MNYL are as follows:-

Aviva Life Insurance India

BAJAJ Allianz

Birla Sun Life Insurance

HDFC Life Insurance

ICICI Prudential

Reliance Life Insurance

SBI Life Insurance

Customers

An insurance company usually insures each and every people of every age starting from small

children to the people of old age. Max New York Life also insures its customers but the age of

the insure person depends on the type of the product. But the minimum entry age of a person to

be insured is 91 days while the exit age is 85 years. This pattern is mainly followed in Max New

York Life.


FINANCIAL ADVISOR

Table: 1.3

Mnyl fact sheet – 2005-06

Policies sold > 13 LakhsSum assured > Rs. 37,000 Cr

Agent advisors > 20,982Million dollar round tables (MDRTs) 340

Employees 4150Offices 111Cities 83

Base products 26Options/riders 8

Brand awareness 62%

OBJECTIVE To find the brand awareness of Max New York Life Company Ltd. in.

To find the customers perception about the brand .

To find out the brand loyalty of external customer towards Max Newyork Life

Insurance .

To know brand value of Max Newyork Life Insurance

To find the brand extendibility of Max Newyork Life Insurance

To identify the important factors of service quality in insurance

Limitations of the study

Getting accurate response from the customers due to their inherent problems. They

may be partial or may refuse to cooperate.

The time limit for the study was a constraint for data collection .

.


PRODUCTS OF MNYL


http://www.maxnewyorklife.com/Products/Individual.aspx

http://www.maxnewyorklife.com/Products/Group%20Insurance.aspx

http://www.maxnewyorklife.com/Products/Health%20Insurance.aspx

http://www.maxnewyorklife.com/Products/Others.aspx

Significance of the study

The function and art of branding is a major contributor to the success of a product or service sold by

the company that markets it. According to Webster’s Dictionary, a brand is defined as ―a means of

identification‖ or ―an arbitrarily adopted name that is given by a manufacturer or merchant to an

article e or service to distinguish it as produced or sold by that manufacturer or merchant that m ay be

used and protected as a trademark.‖ At Chemark we look at a brand as more than a trademark for the

legal protection of the product or service offered. Well, at least we think it should be. This is where

many marketers get into trouble and lose the positive impact of proper brand management. Brand

management should aim to build into customers’ minds a set of perceptions and attitudes relating to

an offering, leading to positive buying behavior. To achieve this goal, managers must know a great

deal about their customer base. The power of a brand is measured by its effect on buyers. A powerful

brand will cause its customer base to either defer or refuse to purchase if the brand is NOT available.

Some brands have reached a level of mass acceptance where they are used as action verbs, such as ―

Xeroxing‖ a document instead of copying it and ― Fedexing‖ a package rather than mailing or

posting it. One brand’s identity is so strong that when we hear Aspirin we immediately think of

Bayer (―The importance of branding‖ by Phil Phillips).

The image surrounding a company’s brand is the principal source of its competitive advantage and is

therefore a valuable strategic asset. Unfortunately, many companies are not adept at disseminating a

strong clear message that not only distinguishes it in a memorable and positive manner. The

challenge for all brands is to avoid the pitfalls of portraying a muddled or negative image, and

instead create a broad brand vision or identity that recognizes a brand as something greater than a set

of attributes that can be imitated or surpassed. In fact, a company should view its brand to be not just

a product or service, but as an overall brand image that defines a company’s philosophies. A brand

needs more than identity; it needs personality. Just like a person without attention grabbing

characteristics a brand with no personality can easily be passed right over. A strong symbol or

company logo can also help to generate brand equity by making it quickly identifiable.


In a competitive market based environment like today’s staying ahead of the competitors is very

important. Since our study is on the relationship between the variables brand image and brand equity,

the study is so relevant and can be a good source of information for the mangers, especially in the

apparel industry.

Scope of the study

As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is

all pervasive in our lives, psychologists do not agree on how learning takes place. How

individuals learn is a matter of interest to marketers. They want consumers to learn about their

brand, products, product attributes, potential consumers benefit, how to use, maintain or even

dispose of the product and even what they perceives about the brand and new ways of behaving

that will satisfy not only the consumer’s needs, but the marketer’s objectives.


Literature ReviewA traditional definition of a brand was: ―the name, associated with one or more items in the product

line, which is used to identify the source of character of the item(s)‖ (Kotler 2000, p. 396). The

American marketing Association (AMA) definition of a brand is ―a name, term, sign, symbol, or

design, or a combination of them, intended to identify the goods and services of one seller or group

of sellers and to differentiate them from those of competitors‖ (p. 404). Within this view, as Keller

(2003a) says, ―Technically speaking, then, whenever a marketer creates a new name, logo, or

symbol for a new product, he or she has created a brand‖ (p. 3). He recognizes, however, that brands

today are much more than that. As can be seen, according to these definitions brands had a simple

and clear function as identifiers.

Brands, according to Kapferer (1997) serve eight functions shown in the table: the first two are

mechanical and concern the essence of the brand: ―to function as a recognized symbol in order to

facilitate choice and to gain time‖ (p. 29); the next three are for reducing the perceived risk; and the

final three concern the pleasure side of a brand. He adds that brands perform an economic function in

the mind of the consumer, ―the value of the brand comes from its ability to gain an exclusive,

positive and prominent meaning in the minds of a large number of consumers‖ (p. 25). Therefore

branding and brand building should focus on developing brand value.

The Functions of the Brand for the Consumer

Function Consumer benefit

Identification To be clearly seen, to make sense of the offer, to quickly identify the sought-after products.

practicality To allow savings of time and energy through identical repurchasing and loyalty


Guarantee To be sure of finding the same quality no matter where or when you buy the

product or service

Optimization To be sure of buying the best product in its category , the best performer for

particular purpose.

Characterization To have confirmation of your self –image that you present to others.

Continuity Satisfaction brought about through familiarity and intimacy with the brand that

you have been consuming for years

Hedonistic Satisfaction linked to the attractiveness of the brand , to its logo, to its

communication.

Ethical Satisfaction linked to the responsible behavior of the brand in its relationship

towards society.

Kotler (2000) mentions branding as ―a major issue in product strategy‖ (p.404). As the brand was

only part of the product, the communication strategy worked towards exposing the brand and

creating brand image. Aaker and Joachimsthaler (2000) mention that within the traditional branding

model the goal was to build brand image; a tactical element that drives short-term results. Kapferer

(1997) mentioned that ―the brand is a sign -therefore external- whose function is to disclose the

hidden qualities of the product which are inaccessible to contact‖ (p. 28). The brand served to

identify a product and to distinguish it from the competition. ―the challenge today is to create a

strong and distinctive image‖ (Kohli and Thakor 1997, p. 208).

The concept of brand equity was first introduced in marketing literature in the 1980’s. During the

90’s this topic received significant attention from both scientists and marketing practice, which

resulted in a large number of articles and books on the subject (e.g. Aaker and Keller, 1990; Aaker,

1991; Keller and Aaker,1992; Aaker and Biel, 1993; Keller, 1993; Aaker, 1996; Agarwal and Rao,

1996; Kapferer, 1998; Keller, 1998). The interest in brand equity is still active (e.g. Yoo et al., 2000;

van Osselaer and Alba, 2000; Dillon et al., 2001; Keller, 2001; Yoo and Donthu, 2001; Moore et al.,

2002).

The importance of brand equity consists in numerous benefits for companies that own brands. Brand

equity has positive relationship with brand loyalty. More precisely, brand equity increases the

probability of brand selection, leading to customer loyalty to a specific brand (Pitta and Katsanis,


1995). One of the benefits provided by high brand equity is the possibility of brand extension to other

product categories. Generally, brand extension is defined as the use of an existing brand name for

entry into a new product category (Aaker and Keller, 1990). When compared to new brand names,

brand extensions have lower advertising costs and higher sales (Smith and Park, 1992). Successful

brand extensions contribute to higher brand equity of the original brand (Dacin and Smith, 1994;

Keller and Aaker, 1992), however, unsuccessful extensions may reduce the brand equity of the parent

brand (Aaker, 1993; Loken and John, 1993). Aaker and Keller (1990) developed a model for

consumer evaluation of brand extensions, and a number of authors worked on generalization of this

model (Barrett et al., 1999; Bottomley and Doyle, 1996; Sunde and Brodie, 1993). In addition, brand

equity increases (1) willingness of consumers to pay premium prices, (2) possibility of brand

licensing, (3) efficiency of marketing communication, (4) willingness of stores to collaborate and

provide support, (5) elasticity of consumers to price reductions, and (6) inelasticity of consumers to

prices increases, and reduces the company vulnerability to marketing activities of the competition

and their vulnerability to crises (Barwise, 1993; Farquhar et al.,1991; Keller, 1993; Keller, 1998;

Pitta and Katsanis, 1995; Simon and Sullivan, 1993; Smith and Park, 1992; Yoo et al., 2000). In

general, we can say that brand equity represents a source of sustainable competitive advantage

(Bharadwaj et al., 1993; Hoffman, 2000). Also, literature identifies an impact of brand equity on the

stock market reactions (Lane and Jacobson, 1995; Simon and Sullivan, 1993).

Currently, there are a large number of different definitions of brand equity, which may lead to

conceptual misunderstandings when researching this phenomenon. An attempt to classify the

different approaches to the definition of brand equity (Feldwick, 1996) could be useful in clarifying

different approaches to and relationships involved in the complex concept of brand equity. Feldwick

(1996) has identified three different approaches to brand equity: (1) brand value (the total value of

the brand as a company’s intangible asset – financial approach), (2) brand strength (the strength of

consumer commitment to a particular brand – behaviorist approach) and (3) brand description

(associations and beliefs consumers have about particular brands – cognitive approach). Brand

strength and brand description are customer-based aspects of brand equity, whereas brand value is a

financial aspect of brand equity.


Chapter-3

Max New York life- partnership of leaders

Major milestones achieved by Max new York life

The golden opportunity

Best –in-class training

Unparallel Earnings

Million Dollar Round Table

Avenues

Max New York life business planning process

Methods of business development


MAX NEW YORK LIFE-

PARTNERSHIP OF LEADERS

Max New York life is a joint venture between max India and New York life international, LLC,

together, this opportunity brings in.

Financial strength

Integrity

responsibility

Major milestones achieved by Max New York Life

Secured financial future of over

1.64 policy holders

Sold life insurance cover of over

Rs. 49,800 crore

First Indian life insurer to be

given ISO 9001: 2000 certification

Operating in 120 cities with 172

offices

A strong foot print of over

27,700 agent advisors

The golden opportunity


Max New York life presents to you a business opportunity that would open doors to success,

money and fame. By being agent advisors you can secure lives and make a positive impact in

the community.

With Max New York life sky is the no limit-

Low start up investment

Unlimited earnings potential

Flexible working hours

Be your own boss

Be a part of a world-class team

Best- in -class training

At Max New York life, you are assured of our dedication to your success.

Superior training resources & infrastructure

Fully in-house & IRDA approved

training centers

Full time professional trainers in

each office

Special starting support

Pre-licensing stipend

Training programmed reimbursements

Unparallel earnings

Revenue streams at MNYL

First year commissions

Renewal commissions

Agent referral commissions


Other support

Performance linked bonus

Training programmed reimbursements

Table: - 2.3

For the right person, MONEY will

Never be a problem at Max New York life

Earnings if business grows by just 10% p.a.

Year1

Year2

Year3

Year4

Average premium(Rs) 25,000No. of cases per year 72

Commission 20.00% 5.00% 5.00% 3.00%

Diagram:-3.1a


Unparlled earnings

4,17,0009,77,166

18,56,676

32,42,214

56,10,346

92,04,074

year 1 year 5 year 10 year 15 year 20 year 25

Table:3.2b

Million Dollar Round Table

A worldwide organization of the top producers of life insurance sales with 74 participating

nations and territories

New York Life has been no.1 in MDRT for 50 consecutive years

360 Agent Advisors from max new York life qualified for MDRT in 2008

Max New York Life is ranked 37th in MDRT rankings worldwide

AVENUES

Career development program

Choose your own career path

Agency associate


Associate sales manager

Sales manager

Training manager

Max new York life business planning process

Life insurance selling is both an art and a science. The science is the product knowledge, and

anyone can learn the science. People who succeed in our business are the ones who have

mastered the art: prospecting, interview techniques and building relationships.

Identifying the initial markets

What is prospect?

Qualified prospects display certain characteristics that make them potential customers. Prospects

for life insurance are peopling who:

Need protection from loss of life

Can afford to pay the premiums for the protection

Can be approached by you

Are insurable

As you get to know the people you choose to prospect, you will begin to qualify them in these

four areas. This is how you move them from your prospect list to your prospect list

Methods of business development

In determining the appropriate prospecting methods for the development of your business, you

should consider:

All costs and time commitment involved

Efforts required on your part and availability of outside vendors

Your skills and talents

Past experience as well as the extent of your natural market

You should concentrate your efforts on the methods with higher return rates.

Table: - 3:1

Methods Ratio


See it workAn effective way to ask for referrals is to explain: 80% of my business is prospecting; help me service you by making my prospecting easier by giving me referrals. Explain him/her that you are paid for your work in two ways:1: from the sale of any insurance.

professionals

Referrals & recommendations

Centers of influence

Civic marketing

3:1

4:1

4:1

Labor intensive

Target mail/telephone

Mass mail/telephone

Cold call –canvassing

Seminars (Targeted audience)

8:1

10:1

20:1

5:1

Capital intensive

Target mail

Mass mal

Advertising

50:1

100:1

varies

(Estimates

The 3C's Model is a strategically look at the factors needed for success.

The 3C’s model points out that a strategist should focus on three key factors for success. In the

construction of a business strategy, three main players must be taken into account:

A. The Corporation B. The Customer C. The Competitors

The corporation

The Corporation needs strategies aiming to maximize the corporation’s strengths relative to the

competition in the functional areas that are critical to achieve success in the industry.


See it workAn effective way to ask for referrals is to explain: 80% of my business is prospecting; help me service you by making my prospecting easier by giving me referrals. Explain him/her that you are paid for your work in two ways:1: from the sale of any insurance.

(I) Selectivity and sequencing: - The corporation does not have to lead in every function to

win. If it can gain decisive edge in one key function, it will eventually be able to improve its

other functions which are now average.

So, in an insurance company the key function is the sales department which is playing

the key role for the success of the corporation. If the sales department is competent enough then

the business can expand quickly.

(II) Cost-effectiveness:- Improving the cost-effectiveness can be done in three ways

First by reducing basic costs e.g.- office overhead expenses, product development

expenses etc.

Second by exercising greater selectivity (by collecting customer data base, selecting from

them who will be the right person to purchase the product, functions performed)

P200 and P40 is the best tool for MNYL for collecting the prospects and converting these

prospects into regular customer.

Third by sharing certain key functions with a corporation’s other businesses or even other

companies.

The customer

Clients are the base of any strategy. In the long run, a company that is genuinely interested in its

customers will be interesting for its investors and take care of their interests automatically.

Segmentation is helping to understand the customer.

Segmenting by objectives: -The differentiation is done in terms of the different ways that

various customer use/purchase a product. That means why a person purchased a particular

product because of life risk or because for pension etc.

Differentiation of MNYL

Life


Child

Retirement

Pension

Example:- I have purchased that product because I have a small child so I will spend this money

for his study.

Or

I have purchased that product because I want regular pension when I will retire.

Segmenting by customer coverage:-

This segmentation normally emerges from a trade-off study of marketing costs versus market

coverage. The corporation’s task is to optimize its range of market coverage, geographically and/

or channel wise.

Example: - suppose for east zone and west zone MNYL have spend 5, 00,000 as marketing cost

but the product sold in east zone is 10,000 but in west zone it is 5,000. That means the fixed cost

of the product is higher in west zone. Here our task is to optimize our market range in west zone

by selling more products so that we will be profitable.

Segmenting the market once more:-

In fierce competition, competitors are likely to be dissecting the market in similar ways. Over an

extended period of time, the effectiveness of a given initial strategic segmentation will tend to

decline. In such situations it is useful to pick a small group of customers and reexamine what it is

that they are really looking for.

The competitor

How we can be differentiate ourselves from our competitors. The possible source of

differentiation is the product performance or better customer care.


Power of image: - It is not easy task to differentiate MNYL’S product performance or mode of

distribution. But it is the image which we can make different from our competitor by providing

better customer care.

Capitalizing on profit- and cost structure differences

We can differentiate on profit part by introducing a new scheme from our competitors. That

means innovativeness in our product. Another thing is cost structure. If in a sluggish market we

can lower our fixed cost from our competitor then we will be benefited.

cry-sta-lono:- It means standing for people, money and things. Of the three critical resources,

funds should be allocated last. The corporation should firstly allocate management talent, based

on the available mono (things): plant, machinery, technology, process know-how and functional

strength. Once these hito (people) have developed creative and imaginative ideas to capture the

business’s upward potential, the Kane (money) should be given to the specific ideas and

programs generated by the individual managers.

By following above strategy MNYL can be differentiated himself from its

competitors like HDFC STANARD LIFE, BAJAJ ALLIANZ, AVIVA LIFE, and from ICICI

PRUDENTIAL.

The 70/20/10 Model is a business resource management model pioneered by Google CEO Eric

E. Schmidt.


http://en.wikipedia.org/wiki/Eric_E._Schmidt

http://en.wikipedia.org/wiki/Eric_E._Schmidt

http://en.wikipedia.org/wiki/CEO

http://en.wikipedia.org/wiki/Google

This model dictates that, to cultivate innovation, employees of a company should utilize their

time in the following ratio:

70% of time should be dedicated to core business tasks. In case of MNYL core task is the

sales function OR selling of the various products.

20% of time should be dedicated to projects related to the core business. But the core

business is to recruit the financial advisors and trained them properly.

Khurda District at a Glance

DISTRICT MAP

LOCATION & GEOGRAPH


The District KHURDA came into being on 1st April 1993 by dividing it off its erstwhile Puri district which after division became Puri, Khurda and Nayagarh. It comprises of 02 - Sub-division 07 - Tahasils 10 - CD Blocks 03 - Notified Area Council(NAC) 01 - Municipality 01 - Municipal Corporation 154 - Gram Panchayats 02 - Parliament Constituency 06 - Assembly Constituency The district is bounded by Cuttack district - North & North-East Nayagarh district - West Puri district - South Ganjam district - South-West Lies between Latitude - 19º 40" N to 20º 25" N Longitude - 24º 55" E to 36º 05" E Spreaded over Geographical area - 2889 Sq.Kms. Other Important Parameter of the district Height from Max.Sea Level - Temperature - Max.- 41.4 to Min.- 9.5 deg.celcius. Annual Normal Rainfall - 1449.1 mm. Sub-Division : The Khurda District has two revenue subdivision named 1. Khurda 2. Bhubaneswar Tahasils : Seven Tahasils are there in Khurda District 1. Banpur 2. Begunia 3. Bhubaneswar 4. Bolagarh 5. Jatni 6. Khurda 7. Tangi Block : Khurda District has been divided into 10 CD Blocks 1. Balianta 6. Bolagarh 2. Balipatna 7. Chilka 3. Banpur 8. Jatni 4. Begunia 9. Khurda 5. Bhubaneswar 10. Tangi DEMOGRAPHY


Demographic distribution of Khurda district may be described as below : Population :(1991 Census) TOTAL Total : 1502014 (4.75 % of the State) Urban : 516281 Rural : 985733 COMMUNITIES S.C. : 204564 S.T. : 77242 Others : 1220208 SEX-Wise Male : 789334 Female : 712680 LITERACY Total : 861321 Male : 528602 Female : 332719 LITERACY RATE Total : 67.72% Male : 78.74% Female : 55.39%

Chapter-4


o Meaning of methodologyo Sampleo Types of datao Data collection method

METHODOLOGY

Methodology is defined as

1. "the analysis of the principles of methods, rules, and postulates employed by a discipline"

or

2. "the development of methods, to be applied within a discipline"

3. "a particular procedure or set of procedures

Methodology refers to more than a simple set of methods; rather it refers to the rationale and

the philosophical assumptions that underlie a particular study.


This study is conducted in the territory of BBSR city by using random sampling of one hundred

(110) consumers

.

Data collection

1. Measurement instrument: structured questionnaire

2. Method: survey

Sources of data

A. Primary data- primary data were collected through a well structured questionnaire

designed separately for consumers. A pilot survey was conducted to test the utility of the

questionnaire and necessary changes being made.

B. Secondary data- secondary data are collected from various WEB SITES

(www.yahooanswers.com, www.maxnewyork.com, www.icier.com ) magazines

(Insurance world) etc.

Sampling

Sample size: total sample size is 100 individual customers, out of which only 100 are valid

and 10 are invalid because the data provided by customer is not sufficient for Research.

Sample procedure: Random sampling

Sample area: Bhubaneswar

In BBSR the area covered is SAHEED NAGAR, VANI VIHAR, UTKAL

UNIVERSITY CAMPUS, RENTAL COLONY and CRP SQUARE because in

this particular area there are so many public and private institutions are available..

Analysis

Data collected from the survey through systematically framed questionnaires and those are being

analyzed and shown in graphical representation


http://www.icier.com/

http://www.maxnewyork.com/

http://www.yahooanswers.com/

Chapter-5


Analysis of data Tabulation Graphical presentation

Tabulation Table: - 3.2

NAME OF THE PERSONS 1 2 4 5 6 9 11 12 13 14

15 (I)

15 (ii) 16

N. PATRA i i, iii i,iii Iv iv ii iii iv ii iv i i

S. MOHAPATRA i iii I Ii iii v iii ii i i i i ii, iii

A. MISHRA i ii,iv, v Iv Ii ii iii ii i i i ii, ii, iii i, ii

P. NANDA i i, ii, iii Ii Ii iv v iiii, iii i iii i i Iv

B. MOHARANA i ii, iii, iv Ii Ii iv iv ii ii i i, iv i i I

S. SAHOO iii i, iv i,iii Iii ii v i ii i i i v Ii

A. MISHRA i iv Ii I iii iv ii ii ii ii,iii i i, iii i, iv

M. NAYAK iii iv Iii * ii iii ii * i i i iii i, iii

C.CHAND iii i,ivi, ii, iii Ii iii ii i ii i i,ii i i ii, iv

L. SAHOO iii ii, iv,v ii, iii * iii v iii iii i iv ii i, ii


S.BEHERA i iii Ii Ii iv iii ii ii ii ii i iv Iii

R. MISHRA i ii Ii I iii iii i iv i ii i iii i, ii

P.SAHOO i ii,iii,iv i,ii I i v i,ii ii,iv i i,iii i i ii,iv

B. ROY i iii I Iii iii iii i ii i ii i iii I

P. PRADHAN i iv Iii Ii iii v i ii i i i i Iv

P. DAS i iv ii,iii Ii iii ii i ii i ii i i I

R. NANDA i iv,iii,v i,ii Ii iii v ii ii ii iv i i I

S. NANDA i v Ii Ii iii iii i i ii i i,iii i,iv Ii

B. PRADHAN i iii Iii Iii iv v i iii i ii i ii iii,iv

B. MOHANTY iii ii,iv Iii I iv iii i i i i i i I

M. HUSEN i iii I Iii iii iv i i i i i ii I

A. MISHRA i iii,iv I Ii iii iii ii iv i ii,iv i i i, iv

V. KUMAR i iii Iii I iii iii i iii i ii ii * Iv

M. MOHANTY i iv Ii Ii iii iii ii ii i ii i iii,iv I

R. SINGH i ii ii,iii Iii iv v ii ii i i i ii I

S.A.PANDEY i iii,iv,v i,ii,iii Ii iii v ii ii i iii i ii Iv

S. PATNAIK i iii I Iv ii ii iii i i i ii * Iii

N. K. MOHAPATRA i iii,iv Ii I i iv i iv i ii,iv i I, iv Iv

A. BEHERA i I,iii,iv i, iv Ii iii ii iii ii i i i i,iv ii,iv

A. MISHRA i iii,iv,v Ii I ii v iii ii i i,iii ii * I

U. SAHOO i ii,iii,iv i,iii Ii ii iv i ii i i,iii i v I

K.C. PATRA i iii,iv,v I Iii i v iii ii i iii,iv ii * Iii

A. SAHOO i iii,iv Iv Ii i v iii ii i iii ii * I

B. PRADHAN i ii Ii I iii iv i i i i i iv I

M.SATAPATHY i i,ii,iii,iv i,iii Iv iii v i i,ii i i,ii i, i,iv i,ii

B.B.DASH i i Iii Ii iv iii i i i ii i v I

R.SAHOO ii * Iv Ii ii v iii ii i iii i i I

H.SUBUDHIRAY ii * * I ii v iii * i iv ii * i,iv

B.C.SAHOO i i,iii,iv i,iii Iii iii iv iii ii i i,ii i v ii,iii

B.K.JENA i iii,iv I Ii iv iii i ii i i i i I

J.K.PATRA i iii Ii Ii iii iii i ii i i i iv Ii

M.TRIPATHY i iv I I ii iv ii ii i iii i ii Ii

M.SATPATHY i iii I Ii iii iii i ii i i i ii I

P.MISHRA i iv ii,iii I iii iii i ii i i i i i,ii


K.PANDA i i,ii,iii,iv i,iii Iii iii v iiiii, iv i

i, ii, iii i i i, iii

S.MISHRA i i,ii,iv i,ii I iii iii iii ii i i i i i,ii

NANDITA i iii Iii I iii iii i iii i ii ii * Iv

S.PANDA i iv Ii Ii iii iv i iii i ii i iii I

A.MISHRA i ii,v i,iv Ii ii v iii iii i iii i i Iv

P.PRIYANKA i iv Ii Ii iii iii ii ii i ii i iv I

S.MISHRA i i, iii i,iii Iv iv ii iii iv ii iv i i i, iiS.B.ROY i iii I Ii iii v iii ii i i i i ii, iiiS.K.BASU

i ii,iv, v Iv Ii ii iii ii i i i ii, ii, iii i ii

U.AGRAWALi i ii, iii Ii Ii iv v ii

ii, iii i iii i i Iv

E.MITRA i ii, iii, iv Ii Ii iv iv ii ii i i, iv i i ID.K.MUKHARJI iii i, iv i,iii Iii ii v i ii i i i v IiU.DEY i iv Ii I iii iv ii ii ii ii,iii i i, iii i, ivJ.OJHA iii iv Iii * ii iii ii * i i i iii i, iiiS.DAM iii i,iv i ii, iii Ii iii ii i ii i i,ii i i ii, ivS.PRASAD iii ii, iv,v ii, iii * iii v iii iii i iv ii i,iiP.G.DUTTA i iii Ii Ii iv iii ii ii ii ii i iv IiiD.AGRAWAL i ii Ii I iii iii i iv i ii i iii i,iiD.GHOSH i i,iii,iv i,ii I i v i, ii ii,iv i i,iii i i i,ivS.B.ROY i iii I Iii iii iii i ii i ii i iii IB,C.DEY i iv Iii Ii iii v i ii i i i i IvJ.SHRAMA i iv ii, iii Ii iii ii i ii i ii i i IA.BASU i i,iii,v i,ii Ii iii v ii ii ii iv i i IA.K.PRADHAN i V Ii Ii iii iii i i ii i i,iii i,iv IiJ.KAR i iii Iii Iii iv v i iii i ii i ii iii,ivDR.U.PANDA iii ii,iv Iii I iv iii i i i i i i iK.JAISWAL i iii I Iii iii iv i i i i i ii iN.MITRA i ii,iv I Ii iii iii ii iv i ii,iv i i i ivM.KHANDELIA i iii Iii I iii iii i iii i ii ii * ivS.CHOUDHURY i iv Ii Ii iii iii ii ii i ii i iii iv iA.K.BISWAS i ii ii,iii Iii iv v ii ii i i i ii iD.SAHA i ii,iv,v i,ii,iii Ii iii v ii ii i iii i ii iv


A.DEY i iii I Iv ii ii iii i i i ii * iiiM.DEY i iii,iv Ii I i iv i iv i ii,iv i i, iv ivB.MUKHARJI i i,iii,iv i, iv Ii iii ii iii ii i i i i,iv ii,ivS.DASGUPTA i iii,iv,v Ii I ii v iii ii i i,iii ii * iM.KAR i ii,iii,iv i,iii Ii ii iv i ii i i,iii i v iA.GUPTA i ii,iv,v I Iii i v iii ii i iii,iv ii * iiiB.K.DAS i ii,iv Iv Ii i v iii ii i iii ii * iS.R.CHOUDHURY i ii Ii I iii iv i i i i i iv IT.K.MISHRA i i,ii,iii,iv i,iii Iv iii v i i,ii i i,ii i, i,iv i,iiS.BASU i i Iii Ii iv iii i i i ii i iv IR.M.SHARMA ii * Iv Ii ii v iii ii i iii i i IS.KUMAR ii * * I ii v iii * i iv ii * I,ivA.KRISHNA i i,iii,iv I,iii Iii iii iv iii ii i I,ii i v Ii,iiiD.C.SAHA i Iii,iv I Ii iv iii i ii i i i i iS.K.AGRAWAL i iii Ii Ii iii iii i ii i i i iv iiA.GHOSH i iv Ii I ii iv ii ii i iii i ii iiA.K.GHOSH i iii I Ii iii iii i ii i i i ii iN.C.SAHA i iv Ii,iii I iii iii i ii i i i i I,iiR.R.BASU

i I,ii,iii,iv I,iii Iii iii v iiiii, iv i

I, ii, iii i i I, iii

D.DASH i I, ii, iv I, ii I iii iii iii ii i i i i I,iiM.DAS i iii Iii I iii iii i iii i ii ii * ivA.PALIT i iv Ii Ii iii iv i iii i ii i iii iB.MISHRA i Ii, v i, iv Ii ii v iii iii i iii i i ivRAJIB i iv Ii Ii iii iii ii ii i ii i iv I

“*” denotes “Not applicable”.



SURVEY FINDINGS – SAMPLE COMPOSITION

I conducted a survey in between 100 people. All the people are categories by age group in a graphical manner.

Table 1.1Age Category Number of people

20-30 age 44

30-40 age 20

40-50 age 36

Diagram 1.1


Interpretation:

Out of 100 people interviewed I found that between 36% of the people are from 40-50 age categories. While 44% of them are from 30-40 ages category and 20% people are from the age group of 30-40.

OCCUPATION

Table 1.2

Insurance company employee 36

Business men 16

service 44

others 4

Interpretation:


Out the 100 people 44% service employee, 36% are insurance company employee and 16% are business men and others are 4% that represent graphical manner below.

Diagram 1.2

MONTHLY EXPENDITURE ON HEALTH CARE

Table 1.3

Amount Number of people

>1000 61

1000-2000 32

< 2000 7


Diagram 1.3

Interpretation:

Out of 100 samples 61% samples spent below Rs1000, 32% samples spent in between Rs1000

and Rs2000 and 7% samples spent more than Rs2000.

FACTORS DECIDES THE PURCHASE OF INSURANCE PRODUCT

Table 1.4 BUYING PREFERENCE

BRAND 53

SERVICE

QUALITY 23

PRODUCT

QUALITY 18

PRICE 9

Diagram 1.4


Interpretation:

Out of 100 samples 52 samples considered brand is the main factor for purchasing insurance

product and 23 sample are considered service quality is the main factor for purchasing the

insurance where 18 and 9 answered product quality and price respectively.

BRAND AWARENESS

Table: - T.5COMPANY NO OF PEOPLE(Out of 100)

LIC 98

BAJAJ ALLIANZ 68

ICICI PRUD. 29

MNYL 25

HDFC STANDARD LIFE 22


RELIANCE LIFE 15

SBI LIFE 15

TATA AIG 7

AVIVA LIFE 6

ING VASYA 4

BHARTI AXA 4

KOTAK MAHINDRA 3

BIRLA SUN LIFE 3

ORIENTAL 3

METLIFE 2

Diagram 1.5


COMPANY AWRENESS98

68

2925 22

15 15

7 6 4 4 3 3 3 2

0

10

20

30

40

50

60

70

80

90

100

COMPANY

NO O

F PE

OPL

E

Interpretation:

When we ask about which insurance company is coming to your mind first, 96 people say that it

is LIC. Then our next question is that why you have remembered this company. The answer is

that it is a public limited corporation with lots of experienced company and having healthy

market share and we all have a strong faith on LIC in comparison to private limited company.

Only 25 people have suggested MNYL because of its better customer care.

TOP OF MIND RECALLTable 1.5

COMPANY NUMBER


MNYL 41

BAJAJ ALLIANZ 32

ICICI 21

BIRLA SUN LIFE 06

Diagram 1.6

Inference: When it was asked to the sample which private insurance company comes first to your mind when you talk about the insurance. Out of 100 samples 41 samples told that MNYL, 32 told Bajaj Allianz and 21and 6 told ICICI and BIRLA SUN Life respectively.

AWARNESS OF THE PUNCHLINEMNYL

Table 1.6


KNOW 39

DON’T KNOW 31

DON’T

REMEMBER 30

Diagram 1.7

Inference: Out of 100 sample 39 are know of the punch line ,31 people don’t know the punch line and another 30 sample told that don’t remember.

PRODUCTRATING

Table 1.7

EXCELLENT 42


VERY GOOD 31

GOOD 26

POOR 1

Diagram 1.8

Inference: Out 100sample 42 people rated the MNYL PRODUCT as excellent where 31 and 26 rated very good and good respectively.

MNYL AWARENESS

Table: - 1.7

YES 84NO 16

Diagram: - 1.9


MNYL's awareness

84

16

0102030405060708090

YES NO

Interpretation:

MNYL is a very well known company in BBSR market. 84% of people are well aware about the

MNYL.

SOURCES OF GETTING INFORMATION ABOUT MNYL

Table: 1.9

Different source % of peopleMedia 50Friends 12


Relatives 12

Agent & Advisors (MNYL) 20

Can’t Remind 6

Diagram: - 1.10

Sources of geting information about MNYL

Media50%

Friends12%

Relatives12%

Agent & Advisors (MNYL)

20%

Can’t Remind6%

Interpretation:Maximum people are able to remember MNYL because of its huge advertisement in IPL.

Then the second position is with the hand of agent & advisors which is able to reach at peoples

place i.e. 20

SERVICE QUALITY OF MNYL

Table 1.10

HIGHLY SATISFIED 25


SATISFIED35

CAN’T SAY 21

UNSATISFIED 18

HIGHLY UNSATISFIED 1

Diagram 1.11

Interpretation:

Out of 100 sample 25 people rated the service as highly satisfied where 35 were satisfied, and

21, 18,1 rated the service level as can’t say , un satisfied ,highly Unsatisfied respectively.

OVERALL RATING OF MNYL

Table 1.9


Diagram 1.10

Inference:The overall rating of Max New York Life shows a positive outlook as most people have rated it at 4 at rating of 1 to 5. Where 5 is the highest and 1 is the lowest.

BRAND EXTENSION

Diagram 1.11


1 0

2 10

3 16

4 62

5 12

Interpretation:

The above graph shows that people have unanimously agreed on the fact that given a choice they would like to use Max Newyork Life products which means if the company comes out with a product targeting middle segment then there is a chance its customer base will expand so it speaks highly of it brand extendibility.

Chances of MNYL customer to buy other MNYL product

Table 1.10

DEFINITELY BUY 26


PROBABLY BUY 62

CAN’T SAY 10

PROBABLY NOT BUY 2

DEFINITELY NOT BUY 0

Diagram 1.12

Interpretation:

The above graph shows that Max New York life customers are highly satisfied with its products and services as they are inclined to be associated with any other offering given by Max New York Life. This again shows that there is a high scope of brand extendibility in its premium segment as well.

CHANCES PEOPLE WILL REFER MNYL TO OTHERS

Table 1.11


DEFINITELY REFER 15

PROBABLY REFER 70

CAN’T SAY 10

PROBABLY NOT REFER 05

DEFINITELY NOT REFER 00

Diagram 1.13

Interpretation:

With respect to referrals around 70% people have responded but around 10% people are unsure. The reason attributable to this are probably the premium segment that it targets and further it needs to be probed deeper to understand the real reason behind it.

BRAND POSITIONING

PERCEPTUAL MAP Responsiveness


3 MNYL Bajaj Allianz

2 ICICI 1 HDFCUnreliable

-3 -2 -1 1 2 3 -1

-2

-3

Unresponsiveness

For my analysis we have taken Max New York Life and some of its nearest competitor like

HDFC, ICICI and BAJAJ ALLIANZ.

The following perceptual map clearly reflects that Max New York Life is high in responsiveness

and low in reliable than HDFC. Its responsiveness is high than ICICI and HDFC. This analysis

has been taken from the perception of different segment of 100 customers.

Overall Max New York Life is positioned high on responsiveness but its needs to work on its to

work reliability part as customers perceive others insurance company to be much more reliable

probably because of the high charges it has for its various services.

Max New York Life launches Max Vijay


Reliable

IT service provider IBM and Max New York Life Insurance Company on Thursday announced

the launch of an integrated solution for policy issuance and administration for Max Vijay, a new

business initiative introduced by Max New York Life.

IBM would help Max New York Life Insurance to deploy and transform its insurance policy

processing platform and provide the end-to-end technology backbone for Max Vijay, an

insurance product designed specifically for under-served segment of the society, a release said.

IBM will also provide service to various functions of Max Vijay, including insurance policy

system administration, policy setup, new business processing and customer care.

For Max Vijay, IBM would use wireless hand-held devices, which enable data transfer through

GPRS to the back-end system and facilitate on-the-spot issuance of insurance policies.

Aimed at making insurance available in every nook and corner of the country, Max Vijay would

also be sold in neighborhood stores, microfinance institutions and NGOs, among others. IBM

would also provide disaster recovery services for the Max New Life's critical operations.



FINDING AND RECOMMENDATION

1. As the people think that insurance is a tool to product their family & a tax saving device.

They are aware of the fact &realizing its, importance. There is a large potential for

insurance in India.

2. The entrance of private players will increase the competition and it would be a tough task

to secure a good position in market.

3. Since Max New York Life insurance is leading with several companies policies it should

be easy for them to penetrate into the market and secure a good position if they pay

greater attention to the service part provided to their customer and thereby forming a long

and trusted relationship.

4. As seen from the survey that at present 70% of the customer are having insurance policy

out of which 87.5% of the customer are planning for new investments. So it can be a

good potential for the company and they should make an attempt to trap these customers.

5. As 43% of the customers are even ready to go for insurance if a service provider away

from their city is providing it. But inurn they should provide good products and services.

The company should try to convince these customers and get them in its favor.

GROWTH POTENTIAL

At present life insurance penetration in India is quite low – 3% of GDP.

PHASE OF TRANSITION

Life Insurance industry is under the phase of infancy after 50 years of monopoly.

Completion from within and other sectors of financial market.

Needs environmental support till it reaches a comfort zone.


CONCLUSION

Our exhaustive research in the field of life insurance threw up some interesting trends which can

be seen in the above analysis .a general impression that we gathered during data collection was

the immense awareness and knowledge among people about various companies and their

insurance products. People are beginning to look beyond LIC for their insurance needs and are

willing to trust private players with their hard earned money.

People in general have been impressed by the marketing and campaigns of insurance companies.

A high penetration of print, radio and television AD campaigns over the years is beginning to

have its impact now.

Another heartening trend was in terms of people viewing insurance as a tax and investment

instrument as much as protective one. A very high number of respondents have opted for

insurance for such purpose and its shows how insurance companies have successful to attract

public money in recent times.

The general satisfaction levels among public with regards to policy and agents still requires

improvement. But therein lies the opportunity for a relative player like Max New York Life. LIC

has never been known for prompt service or customer oriented methods and Max New York Life

can build on these factors.


BIBLIOGRAPHY

Marketing Management- Philip Kotlor, edition-tenth edition….April 2002,.Publisher- Prentice Hall of India (p) Ltd, Analyzing Consumer Markets & Buyer behavior & consumer behaviour. Research Methodology- C.R Kothari, edition-2004, reprint 2006Publisher – New Age International (P) Ltd, publishersMethods of Data Collection, page no- 95Sampling Fundamentals, page no- 152

Business Statistics- S.L Agrawal, S.L Bharadwaj, Inder KumarKalyani Publishers, edition- 2000Measures of Central tendency- 133

Fundamentals of Statistics- S.C GuptaHimalaya Publishing HouseSixth revised and enlarged edition, April 2004 Correlation, page- 8.1

Arrow K. (1963), "Uncertainty and the Welfare Economics of Medical Care", American Economic Review, 53(5):941-973/// Dionne (1984), "Search and Insurance", International Economic Review, Vol 25(2), 357-367 (From a pdf file which is referred by the above)Broachers from Max New York life, Bhubaneswar

WEBSITESwww.maxnewyorklife.com answers.yahoo.comwww.newyorklife.com www.indiastat.comwww.uaepropertyforum.com www.scib.comwww.claritas.com www.appliedgeographic.comwikipedia.orgwww.selling-well.comwww.insureme.comwww.advisortoday.comwww.unlockthegame.com


http://www.unlockthegame.com/

http://www.advisortoday.com/

http://www.insureme.com/

http://www.selling-well.com/

http://www.appliedgeographic.com/

http://www.claritas.com/

http://www.scib.com/

http://www.uaepropertyforum.com/

http://www.indiastat.com/

http://www.newyorklife.com/

http://www.maxnewyorklife.com/

- Consumer Survey Questionnaires

- Application form of

Some policy forms


QUESTIONNAIRE


CENTURION SCHOOL OF RURAL AND ENTERPRISE MANAGEMENT (CSREM)

Demographic Profile:

1. Name: 2. Age:

3. Sex: 4. Occupation: / Profession

5. Educational Level:

i. Primary ii. Secondary iii. Under-Graduate iv. Graduate / Post-Graduate (Gen)

v. Graduate / Post Graduate (B. E., B. Tech., MBA, CA, CS, etc.)

6. Monthly Family Income (in Rs.):

7.Monthly Expenditure on Health Care (in Rs.):

8. Exposure to Media Vehicles:

Type Hours / Day

i. Television 9.

ii. Radio

iii. Newspaper / Magazine

10.

iv. Internet

Brand Awareness:

11. Which brand first comes to your mind when you think of insurance( Top of mind recall)

i.

ii.

iii.

iv.

v.

Brand Recognition:

12. Have you heard the slogan "Karo Jyada ka Irada"? Yes No


13. Which brand does it stand for?

14. Can you identify this product? Yes No

15. Complete this word: MNYL

16. What is "Life Insurance"? Have you any Life Insurance? Yes No

17. Have you heard of "MNYL"? Yes No

18. Name the Products of MNYL you have come across.

20. Please rate the following attributes with respect to MNYL:

Attribute Strongly Like Like Undecided DislikeStrongly Dislike

i. Product

ii. Policy

iii. Service

iv. After Sales Service

v. Satisfaction

vi. Premium deposit plan

vii. Claim for settlement

viii. Safety

21. Please rate the following attributes with respect to other brands of MNYL:

Attribute / Brand

ICICI Bajajallianz HDFC Birlasunlife Others

i. Product

ii. Service

iii. Premium deposit plan

iv. Claim for settlement


v. Safety

vi. Policy

vii. Satisfaction

viii. Trustworthy


Documents

“BRAND PERCEPTION OF MAX NEW YORK LIFE INSURANCE IN KHURDA DISTRICT”