Market Potentiality of Bajaj Allianz

CHAPTER 1

INTRODUCTION

A student of management gets an opportunity to apply and test the theoretical

knowledge which he attains through his academic study, only when he gets

acquainted with the functioning of an organization ; either as an employee or as an

apprentice/ trainee. This is because novice is able to correlate the theoretical

principals with the actual working environment only in such a situation.

With the aforesaid fact in mind, an attempt has been made, observe the working

of a manufacturing organization very closely and assess the performance of its

different departments / divisions and various systems and procedure installed there in.

so a manufacturing concern (ltd company) which is one of the market leaders in its

field of operation has been selected for the study.

Market potential is the limit approached by market demand on industry

marketing expenditure approach infinity for a given marketing environment. A market

is a set of all actual and potential buyers for might exist for a particular market offer.

The market is the set of consumers who profess a sufficient level of interest in a

market.

The issue of market potential seems to be the key in assessing the sustainability

challenge of a product/service. This element forms the linchpin to constructing the

Eco-space Audit that incorporates the notion of sustainable consumption or end use

levels.

1

It is important to distinguish between products that have full market potential

and products/services that are still increasing their market share. A factor 10

improvement of a product that is fully penetrated into the market at a global level (so

for 6 billion consumers) indeed leads to a factor 10 reductions in final consumption of

resources in an absolute sense. If a product has a low market penetration this is not the

case. For the example, think of computers with a penetration level of somewhere

around 20-30% in industrialized countries. At the global market level this is probably

only 5%.Here it is clear that a factor 10 improvement in this technology will not be

sufficient if we accept that in the long term we will be living in a world with 10

billion consumers with (on average !) relatively high levels of free disposable income.

1.1 INDUSTRY PROFILE

Variety is the spice of life, unless you're in the insurance business.

Traditionally, the most successful insurance firms generally take on the least risk.

However, factors such as deregulation, globalization, the Internet, and the events of

September 11 are shaking up the industry.

The life insurance industry (about 60% of worldwide premiums) has changed

the most profoundly in the products it sells. Over the last quarter of a century, life

insurers such as AXA, ING Group, Nippon Life, and Assicurazioni General, have

seen their business shift from life insurance coverage to annuity products. This

fundamentally changes the way life insurance firms do business, as they concentrate

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on managing investment risk, rather than the mortality risk of an individual. As a

result, insurance firms now compete more directly with financial services firms.

The Gramm-Leach-Bliley Act in the US and "Big Bang" financial

deregulation in Japan opened the door for banks and insurance firms to combine their

businesses. In Europe, global financial services titans already exist, notably German

insurance company Allianz (with stakes in Deutsche Bank, HVB Group, and

Dresdner Bank), and Swiss bank Credit Suisse , Foreign firms seeking inroads to the

US and Japan finds themselves freed from regulatory shackles, too.

As regulatory barriers fall, consolidation among insurance groups,

particularly nonlife insurers, is on the rise. The top 10 property/casualty companies

(including State Farm, Aviva, American International Group, and Zurich Financial

Services) already account for almost half of all premiums written. A dwindling

number of local firms are left to fight for the remaining scraps of market share.

The Internet has changed the way insurers are doing business. Companies

are continuing to offer more products via the virtual highway, thus increasing the

competitive marketplace. With the insurance markets in the US and Japan becoming

saturated, growth in other markets (particularly South America) is imperative for a

company's success, as well.

The attacks on the World Trade Center have changed the face of the

insurance industry; issues such as asbestos claims and liability suits have taken a

backseat to the mad scramble of how to cover terrorism. As a result of September 11,

and to a lesser degree the Enron scandal, premiums are rising and underwriting

standards are tightening. A slew of new ventures have started up (primarily Iq-

Bermuda), as insurers see the possibility of lucrative business.

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In 2004 the insurance industry came under scrutiny when New York

Attorney General Eliot Spitzer sued Marsh & McLennan, the world's largest

insurance brokerage, for price fixing and for accepting kickbacks. As a result, Jeffrey

Greenberg was forced to resign as CEO of Marsh & McLennan, along with five other

executives who admitted to rigging bids. The probes continue as Spitzer and other

officials look to clean up the industry.

1.2 About Life Insurance

There are three parties in a life insurance transaction: the insurer, the insured,

and the owner of the policy (policyholder), although the owner and the insured are

often the same person.

Another important person involved in a life insurance policy is the beneficiary.

The beneficiary is the person or persons who will receive the policy proceed upon the

death of the insured.

Life insurance may be divided into two basic classes.

They are

I. Term

II. permanent

• Term life insurance provides for life insurance coverage for a specified term of

years for a specified premium. The policy does not accumulate cash value.

• Permanent life insurance is life insurance that remains in force until the policy

matures, unless the owner fails to pay the premium when due.

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• Whole life insurance provides for a level premium, and a cash value table

included in the policy guaranteed by the company. The primary advantages of

whole life are guaranteed death benefits, guaranteed cash values, fixed and

known annual premiums, and mortality and expense charges will not reduce

the cash value shown in the policy.

• Universal life insurance (UL) is a relatively new insurance product intended to

provide permanent insurance coverage with greater flexibility in premium

payment and the potential for a higher internal rate of return. A universal life

policy includes a cash account. Premiums increase the cash account

COMPANY PROFILE

Bajaj Allianz Life Insurance Co. Ltd is a joint venture between two leading

conglomerates – Allianz AG, one of the world’s largest insurance companies and

Bajaj Auto, one of the biggest 2 and 3 wheeler manufactures in the world. We at

Allianz Bajaj realize that you seek an insurer who can trust your hard earned money

with Allianz AG with over 110 years of financial experience in over 70 countries and

Bajaj Auto trusted for over 55 years in the Indian Market, together are committed to

offer you financial solutions that provide all the security you need for your family and

yourself.

ALLIANZ GROUP

Allianz Group is one of the world’s leading insurers and financial services

providers. Founded in 1890 in Beslin, Allianz is now present in over 70 countries with

almost 174000 employees. At the top of the international group is the holding

company Allianz AG, with its head office in Munich.

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Allianz Group provides its more than 60 million customers world wide with a

comprehensive range of services in the areas of property and Casualty Insurance, Life

and Health Insurance, Asset Management and Banking.

ALLIANZ AG – A GLOBAL FINANCIAL POWER HOUSE

World wide 2nd by gross written premiums Rs. 4,46,654 cr.

12th largest corporation in the world

49.8% of global business from Life Insurance

Established in 1890, 110 years of Insurance expertise

To countries, 173,750 employees world wide

BAJAJ GROUP

Bajaj Auto Ltd the flagship company of the Rs.8000 crore Bajaj group is the

largest manufacturer of two – wheelers and three – wheelers in India and one of the

largest in the world.

A STRONG INDIAN BRAND – HAMARA BAJAJ

One of the largest 2 & 3 wheeler manufacturers in the world

21 million + vehicles on the road across the globe

managing funds of over Rs. 4000 cr.

Rs. 4,744 cr. Turnover & profits of 538 cr in 2002 – 03

It has joined hands with Allianz to provide the Indian consumers with a distinct

option in terms of Life Insurance products.

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BAJAJ ALLIANZ LIFE INSURANCE

Is the fastest growing private life insurance company in India

Currently has over 400000 satisfied customers

One of Indian’s leading private life insurance companies

We have customer care centers in 155 cities with 30000 Insurance Consultant

providing the finest customer service

SHARED VISION

A house hold name in India, teams up with a global conglomerate of Bajaj

Auto Ltd, the flagship company of the Rs.8000 crore Bajaj group is the largest

manufacturer of two – wheelers and three wheelers in India and one of the largest in

the world. A household name in India, Bajaj Auto has a strong brand image and brand

loyalty synonymous with quality and customer focus. With over 15000 employees the

company is a Rs.4000 crore auto gaint, is the largest 2/3 wheeler manufacturer in

India. It is the 4th largest in the world. AAA rated by Crisit, Bajaj Auto has been in

operation for over 55 years.

As a promoter of Bajaj Alliance Life Insurance Co. Ltd, Bajaj Auto has the

following to offer.

A strong brand equity

A good market reputation as a world class organization

A 10 million strong base of retail consumers using Bajaj products

An extensive distribution system

INDIAN OPERATIONS

Growing at a break neck pace with a strong pan Indian presence Bajaj Allianz has

emerged as a strong player in India.

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Bajaj Allianz Life Insurance Company Limited is a joint venture between two

leading conglomerates Allianz AG and Bajaj Auto Limited characterized by global

presence with a focus and driven by customer, orientation to establish high earnings

potential and financial strength, Bajaj Allianz Life Insurance Company Limited was

incorporated on 14th March 2001. the company received the (IRDA) Insurance

Regulatory and Development Authority Certificate of Registration (r3) NO 116 on 3rd

August 2001 to conduct life Insurance business in India.

TIE UP WITH BANKS

Pioneers of Bancassurance in India:- Having pioneered the phenomenon, Banc

assurance is one of our core business strategies. Two of the strong Banc assurance tie

ups are :-

Standard chartered Bank

Syndicate Bank

PRODUCT PROFILE

Uncertainty is the only certainty in life. If the breadwinner of a family dies, the

income to the family ceases. If the breadwinner does not die, but retires from service,

even then the regular income to the family ceases. Thus life insurance has to cover

both the contingencies of death or survival. They vary according to contingency

provided for according to age, according to family size etc. Each plan of insurance

provides for a kind of need.

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Family :- Protection of the interests of the family against loss of income due to

death of the bread winners.

Children:- Provision for education, marriages and start – in – life

Old Age:- Post – retirement income for self and family / dependents

Special needs:- Disability, accidents, expenses for treatment of diseases, loss of

income due to sickness etc.

These are some basic elements in a life insurance products.

Risk cover : Benefit payable in the event of death

Saving : Benefit payable in the event of survival

PRODUCT OF BAJAJ ALLIANZ

a) ALLIANZ BAJAJ INVEST GAIN

This is a participating endowment plan (with regular and limited premium payment

term options) with minimum guaranteed benefits at maturity or death or maturity

benefit will be the “sum assured”. Besides the policy holder can opt for riders like

family income benefit, Comprehensive Accident Protection (comprising Accident

Death Benefit, Accidental Permanent partial and Total disbility Benefit, waives of

premium Benefit) critical illness Benefits and Hospital cash Benefit with the regular

terms.

Eligibility Conditions and Limits

CONDITIONS INVEST GAIN INVEST GAIN

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ECONOMY

GOLD/DIAMOND/PLATINUM

Minimum Age at Entry 0 (risk

commences at

age 7)

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Minimum Age at Entry 65 50

Minimum Age at Maturity 70 70

Minimum Term 5

Maximum Term 40

Minimum Sum Assured 50000

Maximum Sum Assured No limit

Minimum Premium

Limits

Rest 5000 for Annual mode, Rs. 25000 for H yearly, Rs.

2000 for quarterly, Rs. 700 for monthly.

Premium payment Term Equal to policy term or limited as per table

These are total of 4 product packages available in INVEST GAIN

PACKAGE IN – BUILT BENEFITS

Invest Gain Economy Base Package

Invest Gain Gold Base Package = In built Term cover

(Additional Death Benefits)

Invest Gain Diamond Base Package + In built DoubleTerm

cover (Additional Death Benefits)

Invest Gain Platinum Base Package + In built TripleTerm cover

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The customer may select any 1, 2, 3 or 4 or any combination or all of the following

additional benefits with any of the packages.

1. Family Income Benefits

2. Comprehensive Accident Protection

3. Critical Illness Benefits

4. Hospital Cash Benefits

Of the above 4 benefits only Family income benefit will be available for limited

premium payment terms.

7 at the time of death, then the premiums paid are refunded.

b) ALLIANZ BAJAJ CASH GAIN

This regular premium payment participating money backs plan with minimum

guaranteed benefits at survival (through regular cash benefit during the policy term

including maturity.). The guaranteed minimum death benefits will be the “Sum

Assured” which will be the irrespective of the cash benefits already paid.

Eligibility Conditions and Limits

Minimum and maximum age at entry for all the additional benefits viz. Family

Income Benefit (FIB), Comprehensive Accident Protection (CAP), Critical

illness and Hospital cash is 18 years and 50 years.

Comprehensive Accident Protection, Critical illness and hospital cash

coverage expires at attained age 65 or at maturity whichever is earlier

Issue ages 12 to 55 attained at entry, depending on the package

There are a total of 4-product package available in cash gain.

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Package In – built Benefits

Cash Gain Economy Base Package

Cash Gain Gold Base Package = In built Term cover

Cash Gain Diamond Base Package + In built DoubleTerm

cover

Cash Gain Platinum Base Package + In built Triple Term

cover

Death BenefitIn case of death of maturity after 15 full policy years, the company may pay terminal

bonus for in force policies.

Survival / Maturity BenefitIn case of survival on to maturity all declared reversionary bonuses plus interim

bonus plus a possible terminal bonus is paid on Maturity in addition to 50% of the

sum assumed.

Premium DiscountPremium Discount will be offered for all policies where the sum assured exceeds the

minimum sum assured by at least 10000. Then discount is Rs. 96 for each full Rs.

10000 by which the sum assured exceeds the minimum sum assured Rs. 50000.

c) ALLIANZ BAJAJ CHILD GAIN

This is a participating endowment plan with minimum guaranteed benefits payable on

the child attaining specific ages after the premium payment term but during the policy

term that ends with the final payouts. The main life assured (LA) is the child with the

policy holder (parent / legal guardian) being the counter life assured (CLA).

Eligibility condition and limits.

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The premium payment term is to be ascertained as the period from the date of

commencement till the policy anniversary following the birthday when the child

attain 18 years old age.

The policy term will be between 11 to 24 years for the age of child = 24 at maturity

and 8 to 21 for age of child = 21 at maturity.

The policy term is to be ascertained the period from the date of the commencement

till the due date of the last guaranteed payout as opted.

The policy term age of policyholder (CLA) should not exceed 70 for this plan.

There are total of 4 product packages available in child gain.

Allianz Bajaj child gain 21 Base package + premium benefit + family income

benefit.

Allianz Bajaj child gain 24 Base package + premium wavier benefit + family

income benefit.

Allianz Bajaj child gain 21

Plus

Base package + premium wavier benefit + family

income benefit+ start of Life Benefit.

Allianz Bajaj child gain 24

Plus

Base package + premium wavier benefit + family

income benefit+ start of Life Benefit

Start of life benefit

For a nominal amount an additional sum assured subject to a maximum limit

of Rs.10 lacs per policy will become payable to enable the child start. His/her

professional life smoothly, in case of an unfortunate death or accidental permanent

total disability of the policy holder (CLA) during the term of the policy.

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Death Policy

On death of the Counter Life Assured (CLA)

All future premiums shall be waived

Family Income Benefit shall commence @ 1% of sum assured per month.

Guarnteed payout shall continue as per schedule.

d) ALLIANZ BAJAJ SWARNA VISHRANTI

This is a participating retirement capital building plan with life cover, to help people

to save and plan for their retirement. This is specially useful for self-employed people,

businessman and employees who do not have any pension cover to provide them with

a regular income post retirement. This plan also acts as an important supplement to

the retirement income for salaried people. The product is also attractive as it offers tax

relief under section 80 CCC(1) up to a ceiling of Rs.10,000/- per annum.

It is a regular premium paying fixed different period plan, which will provide

annually on reaching a predetermined age (age at vesting) at the end of the deferment

period.

Eligibility conditions and Limits

Issue age 18 up to 50 for all the additional benefits via Term Cover Benefit,

Family Income Benefit FIB), Comprehensive accident protection, critical

illness and hospital cash.

Comprehensive accident protection, critical illness and hospital cash coverage

exoires at vesting age or attained age 65 which ever is earlier.

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Eligibility Limits

1 Minimum Sum Assured Rs.50,000/- for Regular Premium

2 Maximum Sum Assured No Limit

3 Minimum age at entry 18

4 Maximum age at entry 65

5 Minimum Deferment Period 5

6 Maximum Deferment period 40

7 Minimum age at vesting 45

8 Maximum age at vesting 70

9 Minimum Premium Rs.5000/- for the Annual Mode

Rs.2500/- for half years

Rs.2000/- for quarterly and

Rs.700/- for monthly mode.

Death Benefit

In case of death during the deferment period, the spouse will have the following

options:

(a) Receive immediately the sum assured and accrued bonuses in one lump sum

or

(b) Purchase an immediate annuity policy from Allianz Bajaj or any other

company for the full amount or a part of sum assured and Assured Bonuses.

e) ALLIANZ BAJAJ RISK CARE

This is non-profit level premium and single premium term Insurance plan

providing basically death cover equal to the sum assured. There are no survivator

maturity benefits. Besides the policies other than the single premium paln, the policy

holder can opt for additional benefits like- critical illness benefits and hospital cash

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benefit and accidental death benefits, accidental permanent total/ partial disability

benefit.

Eligibility conditions and limits.

Policy term can be selected for all terms between 5 to 40 years.

Ages 18 to 50 attained at entry for all packages.

There are two premium payment options available: Regular premium and

single premium. For regular premium payment option, the premium payment

term is equal to the policy term.

Coverage provided till maturity for all additional benefits.

Eligibility Conditions

Minimum age at entry 18

Maximum age at entry 50

Maximum age at Maturity 65

Minimum term 5

Maximum term 40

Minimum sum assured (Rs) Rs.100,000/-

Maximum sum assured (Rs) Rs.10,00,000/-

Minimum Premium (Rs) 800/- for yearly and 600/- for ½

yearly.

Minimum single premium

Rs.1600/-

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Death Benefit

The death benefit will be the sum assured. The policy terminates on death of the

policy holder.

Survival/ Maturity benefit

This is pure term insurance plan. There are no survival/maturity benefits payable

under this plan.

Surrender value

Not available under Allianz Bajaj risk care

Loans

No loans are available in Allianz Bajaj risk care.

Premium discount

Premium discount will be offered for all policies where the sum assured exceeds the

minimum sum assured of Rs.100,000/- by at least Rs.10,000/-

Flexibility In Coverage

At each policy anniversary the policy holder has the option to adjust his coverage

level of the additional benefit combinations. Additional benefit combination 2

(Critical illness Benefit and Hospital cash Benefit) can be taken at issue only. These

benefits can not be included subsequently at any policy anniversary.

Compensation Structure of Sales Manage for FY 2006-07

Keeping the contrasting views received on salary increases and decreases of

Sales Managers in mind, it has been decided to rationalize the salary structure and re-

designate the STMs. This does away with the disparity in earnings at Satellite and

Hub and brings in uniformity across the country.

Now there will be flexibility given in both Hubs and Satellites to appoint Sales

Manager at Grade 1,2 or 3 which will be totally at the discretion of the Branch

Managers and Chief Managers and keeping in view their past experience and last

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CTC drawn. However, in Metros i.e. Mumbai, Delhi, Kolkata, Chennai, Hyderabad,

Banglore, Pune and Ahmedabad, Sales Managers can be appointed at Grade 4 also

with Rs. 22000 monthly CTC. Any STM whose level is intervening in the current

grade, fitment for those STMs will be done in the next level and the remaining STMs

will only be re-designated as per the table given below.

All the Sr. STMs with Rs. 22000 monthly CTC will be placed in the Executive

Sales Manager cadre with Rs. 24000 monthly CTC with effect from 1st April 2006.

There will be uniform 6 Grades of Sales Managers in both Hubs and Satellites, their

grades, salaries and targets will be as per the below given table. This Compensation

and targets will be applicable from 1st April 2006.

The movement of Sales Manager from one grade to next higher grade is

subject to his achievement of the norms within 6 months. If he doesn’t achieve norms

in 6 months, then he would have to achieve the norms for 1 year to be eligible for

promotion to next higher grade. However, if he doesn’t qualify the norms for 1 year,

then he will have to achieve the next cycle of 6 months norms, to be promoted to next

higher grade.

If any Sales manager achieves the norms in less than 6 months, he doesn’t

have to wait for 6 months to be promoted to next grade, instead he will be promoted

in next higher grade from the 1st of the following month in which he attains the norms.

Therefore, there will not be any double promotion.

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New Sales Manager Levels and their Respective Targets

Current

Designation

Revised

Designati

on

Grades

CTC monthly

(Including

Reimbursement

s) (Rs.)

Qualifie

d No of

Ics

Unit

Size

Promotion

norms for

1st

6months,

Then

Minimum

Rated FYP

is

(Rs.)

Promotion

Norms if

Target is

achieved

After

6months

but not

more than

1year, then

Minimum

Rated FYP

is (Rs.)

Junior

Trainee STM

Junior

Sales

Manager

Grade 112000

=10000+20006 12 4,00,000 7,50,000

Grade2

Satellite STM

Assistant

Sales

Manager

Grade 215000

=12000+30009 18 5,00,000 10,00,000

Grade1

Satellite STM

Probationary

STM

Sales

ManagerGrade 3

19000

=15000+400011 22 6,50,000 12,50,000

Senior STM Senior

Sales

Grade 4 22000 12 24 8,50,000 16,00,000

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Manager =18000+4000

Executive

Sales

Manager

Grade 524000

=20000+400012 26 10,00,000 19,00,000

Mentor

Sales

Manager

Grade 628000

=24000+4000

To get further promotion, he will have to

qualify as per the Deputy Area Managers

Norms

There is no change in the incentive structure of the Sales Manager and the

same will continue to apply for the FY 2006-07.

Reimbursement for Sales Manager will be against Mobile and Conveyance

bills (local Conveyance) which should be claimed together. (Separate Circular

Follows).

The concept of CCA is done away with.

In case of any ambiguity in interpretation, the interpretation of HOS will be

final and binding.

The salary, grades and target structure of sales manager is subject to change at

any time at the discretion of management.

Commission to IC

1) FOR CHILD GAIN / RISK CARE / TERM CARE - 40% total (15years

and above)

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Premium

payment termYear 1 Year 2 Year 3 Year 4+

15 years or more 25% 7.5% 7.5% 5%

10 to 14 years 20% 7.5% 7.5% 5%

5 to 9 years 10% 5% 5% 5%

In addition an additional first year commission of up to 60% of the first

commission will be payable to the agents

The commission rate for single premium is 2%.

2) CASH GAIN - 40% total

Premium

Payment Term

% of First Year

Premium

% of 2nd and 3rd

year premium

% of Subsequent

years premium

15,20,25,30 25 7.5 5

In addition an additional first year commission of up to 60% of the first year

commission will be payable to the agents.

3) LIFTIME CARE - 40% TOTAL (15years and above)

Premium

payment termYear 1 Year 2 Year 3 Year 4+

15 years or more 25% 7.5% 7.5% 5%

10 to 14 years 20% 7.5% 7.5% 5%

In addition an additional first year commission of up to 60% of the first year

commission will be payable to the agents.

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1.5 SCOPE OF STUDY

To acquire an overall idea of the organization and to know how theoretical

aspects of management are applied in real functioning of organization. It also includes

a detailed study on the analysis of the past performance and future trends of the

company.

This study will give an insight into understanding the perception of Insurance

Agents about the product & Services of Bajaj allianz Standard Life Insurance Also it

helps to acquire knowledge about the organization structure and its activities.

The study will also help the company to understand about the situation on the

following areas.

The competitors of Bajaj allianz Standard Life Insurance in kollam

Whether Bajaj allianz Standard Life Insurance Products are successful or not.

1.6 MARKET POTTENTIALITY- AN OVERVIEW

MARKET POTTENTIALITY

Market potential is the limit approached by market demand on industry

marketing expenditure approach infinity for a given marketing environment. A market

is a set of all actual and potential buyers for might exist for a particular market offer.

The market is the set of consumers who profess a sufficient level of interest in a

market. The issue of market potential seems to be the key in assessing the

sustainability challenge of a product/service. This element forms the linchpin to

constructing the Eco-space Audit that incorporates the notion of sustainable

consumption or end use levels.

22

Customer needs today are increasingly complex, even as product life cycles

get Increasingly shorter. In the resulting pressure to accelerate type to market, it's

critical, however, that companies not lose sight of the basics-develop products that

customers want when they want them. This way, success in the market place increases

as product s enjoy higher-than-average market acceptance.

Many companies in fact have started to focus on more research to analyse the

market". They have found that they have to reduce the cost of product and services to

penetrate into the market. The need to gain market acceptance is very important in the

current scenario. Yet, most of the time companies are not doing this. The answer

starts with recognizing that no matter how good your research is, a new product will

always have a gap in potential. This is the gap between your knowledge and what the

customer wants after launch. What is the best way to get from "almost there'" to "right

on target'' for market acceptance? One such tool is the PDCA, cycle. W.Edwards

Doming developed this management tool in the 1940s and 1950s as a strategy to gain

more advantage in the market. You can use it to get to market acceptance more

quickly. This helps to overcome the competition also.

The strategy is

1. Plan to do something

2. Do it

3. Check the results

4. Adapt

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The PDCA cycle has two major advantages

(1). The Process never ends, and therefore,

(2) small but quick improvements are perfectly acceptable.

HOW WE CAN PENETRATE INTO THE MARKET

Company’s characteristically develop their own strategies for reducing

perceived risk. These risk-reduction strategies enable them to act with increased

confidence when introducing new product and services, even though the

consequences of such decisions remain somewhat uncertain. This is mainly with the

part related with customer’s.

While introducing the new product and services the company will deals with the

following factors. They are

Information about the products and services.

Creating Brand Loyalty.

Creating Brand Image.

How they are different from others.

Information about product Quality.

Security and belief about the service / product.

Customer Satisfaction.

Market Acceptance.

CORPORATE IDENTITY, BRAND IDENTIYT AND BRAND IMAGE

It is important to distinguish between corporate identity, brand identity

and brand image. Corporate identity is concerned with the visual aspects of a

company's presence. When companies undertake corporate identity exercises, thy are

usually modernizing their visual image in terms logo, design, and collaterals. Such

efforts do not normally entail a change in brand values so that the heart of the brand

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remains the same -what it stands for, or its personality. Unfortunately, many

companies do not realize this fallacy, as they are sometimes led to believe by agencies

and consultancy "companies that the visual changes will change the brand image. But

changes to logos, sign age and even outlet design do not always change consumer

perceptions of quality, service, and the intangible associations that come to the fore

when the brand name is seen or head.

The best that such changes can do is to reassure consumers that the

company is concerned about how it looks. Brands do have to maintain a modern look,

and the visual identity needs to change over time. But the key to successfully

affecting a new look is evolution, not revolution. Totally changing the brand visuals

can give rise to consumer concerns about changes of ownership, or possible changes

in brand values, or even unjustified extravagance. If there is a strong brand

personality to which consumers are attracted, then substantial changes may destroy

emotional attachments to the brand. People do not expected or like wild swings in the

personality behavior of other people, and thy are just as concerned when the brands to

which they have grown used exhibit similar "schizophrenic" changes

On the other hand, if the intention is to substantially improve the

standing of the brand, then corporate identity changes can be accompanied by

widespread changes to organizational culture, quality and service standards. If done

well, and if consumers experience a great new or improved experience, then the

changes will, over the longer term, have a corresponding positive effect oil brand

image. If you are spending a vast amount of money on corporate identity, it is as well

to remember this.

Brand identity is the total preposition that a company makes to

consumers-the promise it makes. It may consist of features and attributes, benefits,

performance, quality, service support, and the values that the brand possesses. The

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brand can be viewed as a product, a personality, a set of values, and a position it

occupies in people's minds. Brand identity is everything the company wants the brand

to be seen as. Brand image, on the other hand, is the totality of consumer perceptions

about the brand, or how they see it, which may not coincide with the brand identity

Companies have to work hard on the consumer experience to make sure that what

customers see and think is what they want them to.

Now leading-edge companies are becoming extremely sophisticated at

measuring what customer's value, and correlating these data with their behavior and

their projected future intentions. The results ate pinpointed marketing strategies that

win, and win big. Recent empirical research shows that a business's customer value

position, relative to competitors, has a dramatic impact on its market-share gain and

profitability. Businesses that achieve a superior customer value position average profit

margins on sales three times greater than businesses that are pushed into an inferior

customer value position.

26

CHAPTER II

RESEARCH METHODOLOGY

INTRODUCTION

An organized, systematic, data-based, critical, objective, scientific inquiry

or investigations into a specific problems undertaken with the purpose of finding

answers or solutions to it. In essence, research provides the needed informations that

guide to make inform the decisions to successfully deal with the problems. It

comprises of defining and redefining of problems, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data making alterations and

reaching conclusion.

2.1 OBJECTIVES OF STUDY

Primary Objective

The primary objective of the study is to determine the market potential of

the Bajaj allianz Standard Life Insurance among

Secondary Objectives

The secondary objectives of the study are

a) To study the comparative analysis with the competitors.

b) To find out how far the Bajaj allianz Standard Life Insurance Products and

Services

has achieved its objective of capturing attention and creating corporate image.

c) To know the effectiveness of sales promotional activities.

d) To determine the suitable Marketing channel.

e) To know the perception of Agents about the Insurance Products.

f) To suggest necessary measures to improve the services

27

2.2 METHODOLOGY

RESEARCH DESIGN

The research was carried out to find out the “Market Pottential of Bajaj

allianz Standard Life Insurance”.

Descriptive type of research was adopted to describe the state of affairs, as

it exists at present. It helps to portray accurately the characteristics of a particular

group of individuals.

SIGNIFICANTS OF PROJECT

Bajaj allianz wanted to know the market potential of Life Insurance.

Thus it required a detailed analysis of the market regarding the agent’s

expectation, customer perception, customer awareness of the product, customer

preferences, customer satisfaction etc. The project was carried out as a live project by

giving at most importance to the feasibility. The market analysis was conducted at

kollam, a big business city of Kerala, which thus could give a near perfect view of the

market. The project analyzed different aspects of market research, agent’s

expectation, customer satisfaction, consumer awareness of the product and its

features, etc. The project resulted in much benefit for Bajaj allianz such as

To Know about the Competitors.

Consumer’s perception about the product and services.

Consumer awareness of the product and its features were studied,

Satisfaction level of customers and agent’s were studied.

28

PROBLEM IDENTIFICATION

The company wanted to analyse the market for life insurance, Competitors

details, and customer satisfaction about Bajaj allianz.

PROBLEM DEFINITION

To analyse the market of Bajaj allianz product and services, one has to

analyse the perception of the agent’s and customers about the product, awareness of

the product and its features, the satisfaction level of the existing etc. It should also

analyse the factors that influence the buying behaviour of the customer.

THE MARKETING RESEARCH PROCESS

Marketing research may be defined as a systematic design, collection, analysis

and reporting of data and findings relevant to a specific marketing situation facing the

company. Effective marketing research involves the five steps shown below:

Step 1: Define the Problem and Research Objectives

Management must not define a problem too broadly or too narrowly.

Step 2: Develop the Research Plan

The second stage of marketing research calls for developing the most efficient

plan for gathering the needed information. Designing a research plan calls for

decisions of data sources, research approaches, research instruments, sampling plan

and contact methods.

Step 3: Collect the Information:

The data collection phase of marketing research is generally the most

expensive and the most prone to error. In the case of surveys, four major problems

arise. Some respondents will not be at home and must be recontacted or replaced.

29

Other respondents will refuse to cooperate. Still others will give biased or dishonest

answers. Finally, some interviewers will be biased or dishonest.

Step 4 : Analyze the Information:

The next-to-last step in the marketing research process is to extract findings

from the collected data. The researcher tabulated the data and develops frequency

distributions. Averages and measures of dispersion are computed for the major

variables. The researcher will also apply some advanced statistical techniques and

decision models in the hope of discovering additional findings. One of the tools for

analyzing the collected data is through hypothesis testing.

Step 5: Present the findings

As the last step the researcher presents the findings to the relevant parties.

The researcher should present major findings data relevant lo major marketing

decisions facing management.

2.3 SOURCES OF DATA

The researcher can gather secondary data, primary data of both. Secondary

data are that were collected for another purpose and already exist somewhere. Primary

data are data gathered for specific purpose or for a specific research project. A

customer or prospect database is organized collection of comprehensive data about

individual customer, prospects of suspects that is current, accessible and actionable

for marketing purpose such as lead generation, lead qualification, sale of product or

service, or maintenance of customer relationship.

30

COLLECTION OF DATA

The researcher has taken efforts to study the market through data collection.

Data has been collected through both primary and secondary sources.

Primary Sources

The researcher has prepared questionnaires to collect market views about the

product. Response was encouraging as most people were willing to supply

information through questionnaires. The questions were willing to supply information

through questionnaires. The questions were adapted to the status and education level

of persons thus avoiding inconvenience and misinterpretation. The questionnaires

were used to collect information from Kollam city. It took quite a considerable

amount of time to collect information through these sources.

Questionnaires

A questionnaire consists of a set of question presented to respondents for their

answers. Because of its flexibility, the questionnaire is by far the most common

instrument used to collect primary data: Questionnaire need to be carefully

developed, tested, and debugged before they are administered on a large scale. In

preparing a questionnaire, the professional marketing researcher carefully chooses the

questions and their from, wording and sequence. The form of the question asked can

influence the response, Marketing researchers distinguish between closed-end and

open-end questions. Closed-end questions specify all the possible answers. Open-end

questions allow respondents to answer in their own words. Closed-end questions

provide answers that are easier to interpret and tabulate. Open-end questions often

reveal more because they do not constrain respondent's answers.

One of the tools used for testing hypothesis is Chi-Square test, which is as follows.

31

Secondary Data

Secondary sources have been depended upon to collect information, which the

researcher finds practicable to collect as first hand information. Past data collected by

others, website of the company, brochures, Internet etc were the sources has been very

useful in data analysis.

The data collected from both primary and secondary sources have been used

productively by the researcher for data analysis, which in turn helped in bringing out

excellent results. Primary data are collected in five ways: observation, focus

groups, surveys, behavioral data and experiments.

Observational Research

Fresh can be gathered by observing relevant actors and settings

Focus Group Researcher

A focus group is gathering of 6 to 10 people who are invited to spend a few

hours with a skill moderator to discuss a product, service, organization or other

marketing entity. The moderator needs to objective, knowledgeable on the issue and

skilled in group dynamics.

Survey Research

Surveys .are best suited for descriptive research. ! Companies undertake

surveys to learn about people's knowledge, believes, preferences and satisfaction and

to measure these magnitudes in the general population.

Behavioral Data

Customer leave traces of their purchasing behavior in store scanning data,

catalog, purchase records, and customer database. Much can be learned by analyzing

this data. Customer's actual purchases reflect revealed preferences and often are more

reliable than statements they offer to market researchers.

32

Experimental Research

The most scientifically valid research is experimental research. The purpose of

experimental research is to capture cause and affect relationship by eliminating

competing explanations of observed findings.

Type of study

Descriptive study has been adopted to collect the data from the Insurance

Agents to know their opinion about Bajaj allianz Standard Life Insurance. The study

was focused on understanding the market potential of Bajaj allianz Standard Life

Insurance Products and Services among Insurance Agents In Kollam City.

The sample size was hundred and the target of the population was Insurance Agents in

Kollam.

Research Approach

Survey was done in and around of Kollam city. The main places includes

Pattom, Thampanoor, Vellayambalam, Vazhuthakadu, etc..

2.4 SAMPLING DESIGN

Sample unit

Insurance Agents in and around kollam city has been selected as samples for the

study.

Sample Size

Samples from hundred Agents in and around Kollam city has been selected for the

study.

Sampling Procedure

Simple random sampling technique is used for collecting data from the

population.

33

Research Instrument.

Structured questionnaire was used to collect the information from Insurance

Agents.

Questionnaire is a mixture of open ended, closed ended and ranking scale.

2.5 TOOLS USED FOR ANALYSIS

The tools used for the analysis are

Percentage analysis, which is a common tool used in which data are reduced

to standard form with equal base to 100, which helps relative comparison.

Percentage analysis = No. of respondents

100 Chi-Square Test

The Chi-Square test is an important test amongst the several tests of

significance developed by. statisticians. Chi-Square symbolically is a statistical

measure used in the context of sampling analysis for comparing a variance to

theoretical variance. As a non-parametric test, it "can be used to determine if

categorical data shows dependency or the two classifications are independent. It can

be also used to make comparisons between theoretical populations and actual data

when categories are used". The test is, in fact, a technique through the use of which it

is possible for all researchers to (1) test the goodness of fit (2) test the significance of

association between two attributes, and (3) test the homogeneity or the significance of

population variance.

34

Conditions for the Application of Chi-square Test.

The following conditions would be satisfied before chi-square test can be applied:

1. Observations receded and used are collected on a random basis:

2. All the items in the sample must be independent:

3. The overall number of items must also be reasonably large. . It should

normally be at least 50, howsoever small the number of groups maybe.

Step involved in Applying Chi-square Test

The various steps involved are as follows:

1. First of all calculate the expected frequencies on the basis of given hypothesis

or on the basis of null hypothesis. Usually the expected frequency for my

given cell is worked out as under:

EF = Row total for the row of that cell x Column total for the column of that

cell

Grand Total

EF = Expected Frequency of the cell

2. Obtain the difference between observed and expected frequencies and find out

the squares of such differences i.e., calculate (Oij-Ejj)2

3. Divide the quantity (Ojj-Ejj)2 obtained as stated above by the corresponding

frequencies to get (Ojj-Ejj)2/Eij and this should be done for all the cells

frequencies or the group frequencies.

4. Find the summation of (Ojj-Ejj)2/Eij values or what we call this is the required

chi-square value.

35

The Chi-Square value obtained as such should be compared with relevant table value

of chi-square and then influence be drawn as stated above.

2.6 LIMITATIONS OF STUDY

All the data’s collected cannot be said as fully accurate.

Cooperation from some Agents is very limited because of the restrictions from

their management.

It was difficult to see the Agents, as they were busy in their business hours.

Simple random sampling has its own drawbacks hence there can be loss in the

precision.

The study was mainly focused on Insurance Agents rather than end users i.e.,

customers.

Compared to total population sample size is very small.

The study was restricted to a small part of Kerala.

Cooperation from respondents is limited at certain times.

36

2.7 ANALYSIS AND INTERPRETATION

Table No: 2.7.1

1. The Table showing the different Life Insurance sector, which are familiar among

the customer’s in agent’s opinion.

Particulars Respondents Percentage

LIC, 44 44%

Reliance 10 10%Bajaj allianz 17 !7%, Birla sunlife, 9 95ICICI Prudential, 18 18% others 2 2%Total 100 100%

Source – Primary Data

Figure:2.7.1

The above figure shows the different Life Insurance sector’s, which are familiar

among the customer’s in agent’s opinion.

Inference:

From the above table we can understand that, most of the customers are

awrare of Life insurance corporation of India. Among the Private Insurance sector,

Bajaj allianz, ICICI Prudential and are having more potentiality. Metlife Insurance

and Birla Sun Life Insurance are also having some market.

37

Table No: 2.7.2

2. The Table showing the toughest competitor for Bajaj allianz.

Brand Respondents PercentageLIC 61 61%

reliance 18 18%

ICICI Prudential 15 15%

Others 6 6%

Total 100 100%


Figure: 2.7.2

The above figure shows the toughest competitor for Bajaj allianz.

Inference:

From the hundred samples collected, 61 percent of agent’s say LIC is the

toughest competitor for Bajaj allianz reliance and ICICI Prudential are the second

and third toughest competitors for Bajaj allianz with eighteen and fifteen percentage.

So more promotional tools should be given to overcome the competition

38

Table No:2.7.3

3. Table showing years of dealing with Bajaj allianz Financial Products by Agents.

Years Respondents Percentage

1-2 Yrs 34 34%2-3 Yrs 21 21%3-4 Yrs 17 17%

4-5 Yrs 17 17%

5 and above 11 11%

Total 100 100%


Figure:2.7.3

The above figure shows the of dealing with Bajaj allianz Financial Products by

Agents

Inference:

From the analysis, it is clear that thirty four percent of agent’s dealing with

Bajaj allianz only 1-2 years experince. The respondents who are dealing for 2-3 years,

3-4 years and 4-5 years are twenty one percent, seventeen percent and seventeen

percent respectively. So year by year the number of customers are increasing to deal

with the financial products. So there is a wider market for the Bajaj allianz Products.

39

Table No: 2.7.4

4. The Table showing the fast moving Life Insurance presently.

Particulars Respondents PercentageLIC 61 61%

reliance 11 11%

Bajaj alianz 12 12%

ICICI Prudential 10 10%

Others 6 6%

Total 100 100%


Figure:2.7.4

The above figure shows the the fast moving Life Insurance presently.

Inference:

From the hundred samples collected, 61 percent of agent’s say LIC is the

fast moving Life Insurance. Bajaj allianz has a potential market with twelve

percentage. Bajaj Allianz and ICICI Prudential are in the next places with eleven and

ten percentage respectively. So more promotional tools should be given to gain the

market.

40

Table No:2.7.5

5. Table showing the factors that are influencing the customers from agent’s opinion

in selecting Bajaj Allianz products.

Particulars Respondents PercentageSecurity 33 33%Service 17 17%

Schemes 44 44%

Brand Name 7 7%

Others 1 1%

Total 100 100%


Figure:2.7.5

The above figure shows the the factors that are influencing the customers from

agent’s opinion in selecting Bajaj allianz products

Inference:

From the analysis, forty two percent of respondents are selecting security as

the major factor for selecting the Bajaj allianz products. Seventeen percent of

respondents are selecting service and thirty three percent of respondents are having

the opinion with brand name. So it is clear that the customer prefers Security and

service as the majer factor rather than other factors.

41

Table No: 2.7.6

6. Table showing whether Bajaj allianz is in a full swing or not.


Full Swing 63 63%

Zero Swing 37 37%


Figure: 2.7.6

The above figure shows whether Bajaj allianz is in a full swing or not.

Inference:

From the study, we can understand that sixty three percent of respondents

in the market go for full swing and of thirty seven percent of respondents in the

market go for Zero swing. So there is a wider and prospective market for the company

to explore.

42

Table No:2.7.7

7. Table showing the satisfaction of customers from agent’s opinion about products

and services provided by Bajaj allianz with respect to competitors.

Particulars Respondents PercentageHighly satisfied 38 38%Satisfied 24 24%

Neutral 37 37%

Dissatisfied 1 1%

Highly dissatisfied 0 0%

Total 100 100%


Figure:2.7.7

The above figure shows the satisfaction of customers from agent’s opinion about

products and services provided by Bajaj allianz with respect to competitors.

Inference:

Thirty eight percent of samples are highly satisfied with the products and

services provided by the company. Twenty four percent of respondents are satisfied

and thirty seven percent of respondents are having neutral opinion. Only one percent

of samples are dissatisfied with the products and services provided by the company.

So we can understand that the majority of customers are having with the products and

services.

Table No: 2.7.8

43

8. Table showing the level of trust about Bajaj allianz products and services with

respect to competitors.

Particulars Respondents PercentageHighly trusted 2 2%

Trusted 46 46%

Neutral 48 48%

Untrusted 3 3%

Not Sure 1 1%

Total 100 100%


Figure : 2.7.8

The above figure shows the level of trust about bajaj allianz products and services

with respect to competitors

Inference:

From the hundred samples taken it was found that two percent of agents are

highly trusted with the services provided by the company. The agents who are trusted

in Bajaj Allianz and are having neutral opinion are forty-six and forty eight percent

respectively. Only three percent of agents are Untrusted with the company and one

percent having the opinion of not sure. From this we can evaluate that the level of

trust in Bajaj Allianz Company is good.

Table No: 2.7.9

44

9. Table showing the satisfaction of agents towards the promotional tools adopted by

Bajaj Allianz with respect to competitors.

Factors Respondents Percentage

Highly satisfied 17 17%Satisfied 38 38%Neutral 43 43%Dissatisfied 2 2%


Total 100 100%


Figure: 2.7.9The above figure shows the satisfaction of agents towards the promotional tools

adopted by Bajaj allianz.

Inference:

Seventeen percent of samples are highly satisfied with the promotional

tools adopted by the company. Thirty eight percent of respondents are satisfied and

forty three percent of respondents are having neutral opinion. Only two percent of

samples are dissatisfied with the promotional tools adopted by the company. So we

can understand that the majority of agent’s are satisfied with the promotional tools

adopted by the company.

Table No: 2.7.10

45

10. Table showing the satisfaction of agents towards the present marketing channel.


Highly satisfied 9 9%

Satisfied 51 51%

Neutral 40 40%

Dissatisfied 0 0%


Total 100 100%


Figure:2.7.10

The above figure shows the satisfaction of agents towards the present marketing

channel.

Inference:

From the analysis, nine percent of respondents are highly satisfied with the

present marketing channel. Fifty one percent of respondents are satisfied and fourty

percent of respondents are having neutral opinion. So it is clear that the company’s

marketing channel is very good since there is no dissatisfaction level among the

agent’s.

Table No: 2.7.11

46

11. Table showing the satisfaction of agents with the commission company gives for

Life Insurance with regards to competitors.

Particulars Respondents PercentageHighly satisfied 10 10%

Satisfied 29 29%

Neutral 52 52%

Dissatisfied 9 9%


Total 100 100%


Figure:2.7.11

The above figure shows the satisfaction of agents with the commission company

gives for Life Insurance with regards to competitors.

Inference:

From the analysis, ten percent of agent’s are highly satisfied with the

commission given by the company. The agents who are satisfied and are having

neutral opinion about the commission are twenty nine and fifty two percent

respectively. Only nine percent of agents are dissatisfied with the commission. From

this we can evaluate that the satisfaction level of agent’s about the commission is

fairly good.

47

Table No: 2.7.12

12. Table showing the opinion of agent’s regarding the margin in commission paid by

the company.

Particulars Respondents PercentageYes 61 61%

No 39 39%

Total 100 100%


Figure: 2.7.12

The above figure shows the opinion of dealers regarding the margin in commission

paid by the company.

Inference:

The sample size taken was hundred. Here sixty one percent of sample size says

that, they get a fair commission with the margin of profit get by selling the Insurance

products. Thirty nine percent of samples say, they don’t get a fair margin of profit in

selling the product. From this we can understand that majority of agent’s are satisfied

with the margin of commission.

48

Table No: 2.7.13

13. Table showing the Satisfaction of customers in agent’s opinion towards the

service provided by the company with regards to competitors.

Particulars Respondents PercentageHighly satisfied 21 21%Satisfied 40 40%

Neutral 36 36%

Dissatisfied 3 3%


Total 100 100%


Figure: 2.7.13

The above figure shows the Satisfaction of customers in agent’s opinion towards

the service provided by the company with regards to competitors.

Inference:

From the hundred samples taken it was found that twenty one percent of

dealers are highly satisfied with the services provided by the company. The agents

who are satisfied and are having neutral opinion about the services provided by the

company are fourth and thirty six percent respectively. Only 3% of agents are

dissatisfied with the services of the company. From this we can evaluate that service

provided by the company is good.

49

Table No: 2.7.14

14. Table showing agent’s opinion towards support from the company for improving

the sales.


No 35 35%

Total 100 100%


Figure: 2.7.14

The above figure shows the agent’s opinion towards support from the company for

improving the sales.

Inference:

From the analysis, Sixty five percent of the sample says they need more

support from the company. While thirty five percent of the samples say they don’t

need more support from the company. From this we can understand that they need

more support from the company to improve the sales.

50

Table No: 2.7.15

15. Table showing the time gap for meetings that are arranged for the agents to

analyse the current market.


Thrice in a month 64 64%

Twice in a month 30 30%

Once in a month 6 6%

Not at all. 0 0%

Toatal 100 100%


Figure: 2.7.15

The above figure shows the time gap for meetings that are arranged for the agents

to analyse the current market.

Inference:

From the analysis, 64% of agents says meetings should be conducted thrice

in a month to analyse the current market. 30% percentage of agents opinion is that

meetings should be conducted twice in a month and only 6% stands for once in a

month. No agents are not against the meetings to analyse the current scenario.

51

Table No: 2.7.16

16. The Table showing expectation of agents from Bajaj Allianz Standard Life

Insurance Company.


Advertisement 8 8%

Service Support 31 31%

Financing Scheme 40 40%

Other Promotional activities 21 21%

Total 100 100%


Figure2.7.16

The above figure shows the agents expectation from Bajaj Allianz standard Life

Insurance Company.

Inference:

From the hundred samples collected, 8% of agent’s expectation is towards

the advertisement, 31% of agent’s expectation towards service support and for

financing schemes and promotional activities are 40% and 21% respectively. So it is

clear that most of the agents are expecting for financing scheme.

52

Table No: 2.7.17

17. The Table showing the customer awareness about the various products and

services of Bajaj Allianz.


Yes 53 53%

No 47 47%

Total 100 100%


Figure 2.7.17

The above figure shows the customer awareness about the various products and

services of Bajaj Allianz.

Inference:

According to the perception of insurance agents, 53% of customers are

aware of the various products and services provided by Bajaj allianz. 47 % percentage

of public is not aware about the products of Bajaj allianz Standard Life Insurance.

Table No: 2.7.18

53

18. Table showing the category of people who shows more interest in life Insurance

Particulars Respondents Percentage18-24 10 10%

25-35 30 30%

36-45 55 55%

45-above 5 5%

total 100 100%


Figure2.7.18

The above figure shows the category of people who shows more interest in life

Insurance

Inference:

From the analysis, it is clear that fifty five percent of peoples are from 36-

45 category. So life insurance is more potential among these category.

Table No: 2.7.19

54

19. Table showing the customer’s consideration about Life Insurance

Particulars Respondents PercentageEssential 74 74%

Not essential 16 16%

No Opinion 10 10%

Total 100 100%


Figure2.7.19

The above figure shows the customer’s consideration about Life Insurance.

Inference:

From the analysis, it is clear that seventy four percent of customer’s are

considering the Life Insurance is an essential one in their life. So we can understand

that, Customer’s opinions about life insurance are positive.

Table No: 2.7.20

55

20. The Table showing the expectation of customer’s about the returns.

Particulars Respondents PercentageVery High 81 81%

High 18 18%

No Opinion 1 1%

Total 100 100%


Figure2.7.20

The above figure shows the expectation of customer’s about the returns.

Inference:

The sample taken was hundred. Eighty one percent of customer’s are having

high expectation in returns. So it is the responsibility of the company to give

maximum services to gain the belief of the customer’s.

Table No: 2.7.21

56

21. Table showing the completion level faced by the company from the agent’s view.


No 39 39%

Total 100 100%


Figure2.7.21

The above figure shows the competition level faced by the company from the agent’s

view.

Inference:

The sample size taken was hundred. Here sixty one percent of sample size says

that, the competition faced by the company in Insurance products are very high.

Thirty nine percent of samples say, the company is not facing too much competition

in selling the product.

Table No: 2.7.22

57

22. Table showing the opinion about the introduction of new products and services.

Particulars Respondents PercentageYes 66 66%No 31 31%

No Opinion 3 3%

Total 100 100%


Figure2.7.22

The above figure shows the opinion about the introduction of new products and

services.

Inference:

From the analysis, sixty six percent of agent’s are highly satisfied with the

introduction of new products and services by the company. The agents who are

having neutral opinion about the new products arethirty sux two percent r. Only three

percent of agents are dissatisfied with the introduction of new products and services .

Chi-Square test

58

1. To find whether Promotion and sales are dependent or not.

Null hypothesis

There is a positive relation ship between promotion and sales.

Alternative Hypothesis

The promotion and sales are independent to each other.

Contigency Table

Particulars Promotion Sales Total

Highly satisfied 17 9 26

Satisfied 38 51 89

Neutral / Dissatisfied / Highly dissatisfied

45 40 85

Total 100 100 200

Sl.No O E (O-E)2 (O-E)2 /E

1 17 13 16 1.23

2 9 13 16 1.23

3 38 44.5 42.25 0.949

4 51 44.5 42.25 0.949

5 45 42.5 6.25 0.147

6 40 42.5 6.25 0.147

(O-E)2 E = 4.652

Degrees of freedom = (r-1) (c-1) = (3-1) (2-1) = 2

Level of significance = 5%

Table Value = 5.99 ( 5% level of significance at 2 degrees of freedom )

Conclusion

Calculated value is less than the table value.

59

Therefore, null hypothesis is accepted and alternative hypothesis is rejected.

So promotion and sales are dependent to each other

2. To find out whether the different insurance schemes are capable to increase the sales with respect to the sex category of agent’s.

Statistical tool used- Chi-Square test

Null hypothesis

Insurance schemes are capable to increase the sales

Alternative Hypothesis

Insurance schemes and increment in sales are independent

Opiniom of agents about schemes

To a verygreat

extend

To some extent

Not sure

Not at all

Total

Male 16 17 18 13 64

Female 12 14 6 4 36

Total28 31 24 17 100

Significant Level = 5%

Sl.No Oi Ei (Oi-Ei)2/Ei

1 16 17.92 0.21

2 17 19.84 0.41

03 18 15.36 0.41

4 13 10.88 0.42

5 12 10.08 0.11

6 14 11.16 0.73

7 6 8.64 0.82

8 4 6.12 0.72

Total 3.82

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Calculated value = 3.82

Degree of freedom = (r-1) (c-1)

= (2-1) (4-1) = 3

Table value = 7.81

Inference:

Here it is clear that calculated value is less than the tabular value.

Therefore, null hypothesis is accepted and alternative hypothesis is rejected.

Conclusion

We can understand that Insurance schemes play a major role in increasing the sales.

CHAPTER III

FINDINGS SUGGESTIONS AND CONCLUSION

61

Findings

Bajaj allianz Standard Life Insurance is successful in the market .

According to agents, buying decisions are mainly based on product schemes

and services.

The most familiar life insurance company is Life Insuarance Corporation of

India.

It has found that, the toughest competitors for Bajaj allianz Standard Life

insurance in the market are

1. L.I.C

2. Bajaj Allianz

3. ICICI Prudential

4. Birla Sun Life Insurance.

The service provided by Bajaj allianz Standard Life insurance are satisfactory

Brand name plays a major role among the end users i.e. customers

The goodwill of company is very high

The promotional tool adopted by Bajaj allianz for the agents are satisfactory.

Customers are considering Life Insurance as one of the essential factor in their

life.

The customer’s belief in returns from investment is very high. This is based on

the opinion from the Insurance agents.

In the Current scenario, the completion level among the Insuarance companies

is very high.

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The agent’s opinion for introducing new products and services in life

insurance sector is positive.

The time gap for meetings to analyse the current market should be reduced.

The customer’s are satisfied with the products and services provided by the

company.

More promotional tools should be introduced to overcome the competion and

to capture new customers.

The level of trust by the customer’s in Bajaj allianzproducts is satisfactory.

The present marketing channel of Bajaj allianz is good than the competitors.

The company is giving a fair commission to the Insurance agent’s than the

competitors.

The Bajaj allianz Insurance agent’s are satisfied with the commission paid by

the company.

The agent’s are expecting more support from the company to improve their

performance. It includes

Financing,

Promotions

More Discussions.

The category of customer’s who are having high belief in Life Insurance

falls

between 36-45.

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Classification based on performance will helps the agent’s to gain more and

thus results in the increment of sales as well as the improvement in their

performance. i.e; agent’s should be treat differently.

Organization climate is satisfactory for the agent’s to work.

Suggestions

Competition is high in the market so more techniques and tools should be used

to overcome the competition.

From the survey it was found that, most of the agents had the opinion that they

need more support from the company to improve the performance.

More meetings should be conducted to analyze the current market.

Agents should be treated differently

Target should be specified.

Grade system should be implemented.

More concentration should be given to city limits.

More advertisements should be given.

Customer relationship should made better.

More services should be offered to customers.

64

CONCLUSION

The research project which I carried out at bajaj allianz was a knowledgeable

experience. The working environment was very interesting. The ways of dealing and

tackling employees problems as well s in taking their positive suggestions was carried

out by the company in an acceptable manner. During the course of my project all

employees were very co-operative and enthusiastically filled the questionnaires.

Bajaj allianz products have been penetrated into the market very well. The

Company’s product’s and services and distribution channel are very effective. They

have got a good impression among the public.

REFERENCES

65

Marketing management – Philip Kolter

Brochures of Veekshanam daily.

Personnel management - CB mamoria.

Principles and practice of Management - L.M. Prasad

Business organization and management – M.C. Shukla.

Research Methodology – Kothari.

MARKET POTENTIAL OF BAJAJ ALLIANZ STANDARD LIFE INSURANCE

[Focused on dealers]

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Personal Details

1) Dealers Name: 2) Place:

3) Which is the most familier Life Insurance company for the customers?

LIC ICICI Prudential Bajaj Allianz Bajaj allianz

Others

4) Which do you think is the toughest competitor for Bajaj allianz Standard Life

Insurance?

LIC ICICI Prudential Bajaj Allaince Others

5) How long are you dealing with Bajaj allianz financial products?

2-4yrs 4-6yrs 6-8yrs 8-10yrs 10 and above

6) Which is the fast moving Life Insurance presently?

LIC Bajaj allianz ICICI Prudential Bajaj Allaince others

a) Specify the reason:

Security Service Schemes Brand name others

7) Do you think Bajaj allianz Standard Life Insurance is successful or not

successful brand Unsuccessful brand

8) In your opinion rank these Life Insurance, Rank 1 – best 2 – next best, etc

LIC

Bajaj allianz

ICICI Prudential

Bajaj Allaince

Others

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9) Is the customer is satisfied with product and services provided by Bajaj allianz

Standard Life Insurance with respect to competitors?

Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

10) Are you satisfied with the promotional tools adopted by the company with respect

to competitors?


11) Can you mention the Customer’s level of trust in Bajaj allianz Standard Life

Insurance?

Highly Trusted Trusted Neutral Untrusted Not Sure

12) Are you satisfied with the present marketing channels?


13) Are you satisfied with the commission the company gives with regards to

competitors?


14) Do you get fair margin in the commission paid by the Company?

Yes No

15) Is the customer is satisfied with the services provided by the company with

regards to competitors?


16) Do you require any further support from the company for improving the sales?

Yes No

17) How often meetings are conduced to analyse the current market?

Thrice in a month Twice in a month

Once in a month Not at all

18) What is your expectation from Bajaj allianz Standard Life Insurance?

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Advertisement Service support

Financing scheme other promotional Activities

19) Whether customer knows about the various Products and services of Bajaj allianz

Standard Life Insurance

Yes No

20) which category of people shows more response towards life insurance.

18-24 25-35 36-45 45 above

21) customer’s are treated Life Insurance as

Essential Not essential No Opinion

22) The expectation of cistomer’s about the returne is

Very High High No Opinion.

23) Is the company is facing any competion in the current scenario.

Yes No

24) Your opinion in introducing new bajaj allianz products / service

Yes No No Opinion

25) ur opinion in company’s promotional and sales activities are


26) Do you think Different schemes help to increase the sales.

Yes No

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Documents

Market Potentiality of Bajaj Allianz