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.
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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.
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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
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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.
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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%
Source – Primary Data
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%
Source – Primary Data
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%
Source – Primary Data
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%
Source – Primary Data
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.
Particulars Respondents Percentage
Full Swing 63 63%
Zero Swing 37 37%
Source – Primary Data
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%
Source – Primary Data
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%
Source – Primary Data
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%
Highly dissatisfied 0 0%
Total 100 100%
Source – Primary Data
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.
Particulars Respondents Percentage
Highly satisfied 9 9%
Satisfied 51 51%
Neutral 40 40%
Dissatisfied 0 0%
Highly dissatisfied 0 0%
Total 100 100%
Source – Primary Data
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%
Highly dissatisfied 0 0%
Total 100 100%
Source – Primary Data
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%
Source – Primary Data
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%
Highly dissatisfied 0 0%
Total 100 100%
Source – Primary Data
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.
Particulars Respondents PercentageYes 65 65%
No 35 35%
Total 100 100%
Source – Primary Data
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.
Particulars Respondents Percentage
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%
Source – Primary Data
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.
Particulars Respondents Percentage
Advertisement 8 8%
Service Support 31 31%
Financing Scheme 40 40%
Other Promotional activities 21 21%
Total 100 100%
Source – Primary Data
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.
Particulars Respondents Percentage
Yes 53 53%
No 47 47%
Total 100 100%
Source – Primary Data
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%
Source – Primary Data
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%
Source – Primary Data
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%
Source – Primary Data
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.
Particulars Respondents PercentageYes 61 61%
No 39 39%
Total 100 100%
Source – Primary Data
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%
Source – Primary Data
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.
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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
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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?
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
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?
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
13) Are you satisfied with the commission the company gives with regards to
competitors?
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
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?
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
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
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
26) Do you think Different schemes help to increase the sales.
Yes No
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