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					study of consumer buying behavior and evolving
            market segmentation
                     for

        Kotak life insurance




                      1
 WHAT IS LIFE INSURANCE?

                            2
Life insurance is a guarantee that your family will receive financial support, even in your
absence. Put simply, life insurance provides your family with a sum of money should something
happen to you. It thus permanently protects your family from financial crises.
In addition to serving as a protective cover, life insurance acts as a flexible money-saving
scheme, which empowers you to accumulate wealth-to buy a new car, get your children married
and even retire comfortably.
Life insurance also triples up as an ideal tax-saving scheme. To know more, read the Key
Benefits of Life Insurance.

Life insurance, especially tailored to meet financial needs




 WHAT IS THE NEED FOR LIFE INSURANCE?

Today, there is no shortage of investment options for a person to choose from. Modern day
investments include gold, property, fixed income instruments, mutual funds and of course, life
insurance. Given the plethora of choices, it becomes imperative to make the right choice when
investing your hard-earned money. Life insurance is a unique investment that helps you to meet
your dual needs - saving for life's important goals, and protecting your assets.




 WHAT IS YOUR HUMAN LIFE VALUE?

Beyond all doubt, your life is invaluable. Yet, there is a certain worth that can be attributed to the
financial support you offer your parents, spouse or children. This worth is referred to as Human
Life Value (HLV). In the future, if your family does not have the protective blanket of your
presence, they will no longer be able to enjoy the benefits of the income you earned. Put simply,
Human Life Value is the present value of your future earnings.




 WHY SHOULD YOU CALCULATE YOUR HUMAN LIFE VALUE?

                                                  3
You should calculate your Human Life Value so you can accordingly invest in insurance plans
that provide your family with adequate finances and hence security even in your absence.




 HOW DO YOU DETERMINE YOUR HUMAN LIFE VALUE?

Your Human Life Value is determined by 3 factors:

   1. Your Age
   2. Current and future expenses
   3. Current and future income


As a thumb rule, if you are 30 years of age, you should insure yourself for an amount
approximately 8 times your annual income. At 35, your investment should be close to 6 times
your income. Of course, the exact amount of your investment should be determined by the
number of people who depend on you, your existing investments and your life stage. For
example, if you are 30 years of age and have two children and parents to provide for, the amount
you invest should be reflective of your requirements.




                                                4
                             INDUSTRY PROFILE
Page 16

BRIEF HISTORY OF THE INSURANCE SECTOR IN INDIA:

The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta. The story of insurance is
probably as old as the story of mankind. The same instinct that prompts modern businessmen
today to secure themselves against loss and disaster existed in primitive men also. They too
sought to avert the evil consequences of fire and flood and loss of life and were willing to make
some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a
development of the recent past, particularly after the industrial era – past few centuries – yet its
beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with the
purpose of looking after the needs of European community and these companies were not
insuring Indian natives. However, later with the efforts of eminent people like Babu Muttylal
Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were
being treated as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company
in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with
highly patriotic motives, insurance companies came into existence to carry the message of
insurance and social security through insurance to various sectors of society. Bharat Insurance
Company (1896) was also one of such companies inspired by nationalism. The Swadeshi
movement of 1905-1907 gave rise to more insurance companies. The United India in Madras,
National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore
were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in
one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The




                                                 5
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India had no legislation to regulate
insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund
Act were passed. The Life Insurance Companies Act 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts, putting the Indian
companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44
companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total
business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed miserably. The Insurance Act
1938 was the first legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business. The demand for nationalization of life
insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However,
it was much later on the 19th of January 1956 that life insurance in India was nationalized. About
154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in
India at the time of nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later, the
ownership too by means of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India
was created on 1st September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate
office in the year 1956. Since life insurance contracts are long-term contracts and during the
currency of the policy it requires a variety of services need was felt in the later years to expand
the operations and place a branch office at each district headquarter. Re-organization of LIC took




                                                6
place and large numbers of new branch offices were opened. As a result of re-organization
servicing functions were transferred to the branches, and branches were made accounting units.

It worked wonders with the performance of the corporation. It may be seen that from about
200.00 Crores of New Business in 1957 the corporation crossed 1000.00 Crores only in the year
1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But
with re-organization happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office. LIC’s Wide Area Network covers 100 divisional offices
and connects all the branches through a Metro Area Network. LIC has tied up with some Banks
and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS
and ATM premium payment facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future.

From then to now, LIC has crossed many milestones and has set unprecedented performance
records in various aspects of life insurance business. The same motives which inspired our
forefathers to bring insurance into existence in this country inspire us at LIC to take this message
of protection to light the lamps of security in as many homes as possible and to help the people
in providing security to their families.




                                                 7
SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE BUSINESS
IN INDIA ARE:


1850: Non life insurance debuts with triton insurance company.

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

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protecting the interests of the insuring public.

1956: 245 Indian insurers, foreign insurers and provident societies taken over by the central
government and nationalized banks. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 Crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British.




                                                   8
SOME OF THE IMPORTANT MILESTONES IN THE GENERAL INSURANCE
BUSINESS IN INDIA ARE:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, nationalized the general insurance
business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into
four companies’ viz. the National Insurance Company Ltd., the New India Assurance Company
Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.




                                                 9
INSURANCE SECTOR REFORMS:

In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.
Malhotra, was formed to evaluate the Indian insurance industry and recommend its future
direction.

The Malhotra committee was set up with the objective of complementing the reforms initiated in
the financial sector. The reforms were aimed at “creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in mind the structural
changes currently underway and recognizing that insurance is an important part of the overall
financial system where it was necessary to address the need for similar reforms…” In 1994, the
committee submitted the report and some of the key recommendations included.




      1997 Insurance regulator IRDA set up.
      2000 IRDA starts giving licenses to private insurers: Kotak Life Insurance ICICI
       prudential and HDFC Standard Life insurance first private insurers to sell a policy.
      2001 Royal Sundaram Alliance first non life insurer to sell a policy.
      2002 Banks allowed selling insurance plans.




                                               10
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA):

The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a
strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the
role of Controller of Insurance diminished considerably in significance since the Government
owned the insurance companies.




But the scenario changed with the private and foreign companies foraying in to the insurance
sector. This necessitated the need for a strong, independent and autonomous Insurance
Regulatory Authority was felt. As the enacting of legislation would have taken time, the then
Government constituted through a Government resolution an Interim Insurance Regulatory
Authority pending the enactment of a comprehensive legislation.




The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the
establishment of an Authority to protect the interests of holders of insurance policies, to regulate,
promote and ensure orderly growth of the insurance industry and for matters connected therewith
or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and the General insurance Business (Nationalization) Act, 1972 to end the
monopoly of the Life Insurance Corporation of India (for life insurance business) and General
Insurance Corporation and its subsidiaries (for general insurance business).




The act extends to the whole of India and will come into force on such date as the Central
Government may, by notification in the Official Gazette specify. Different dates may be
appointed for different provisions of this Act.




                                                  11
The Act has defined certain terms; some of the most important ones are as follows
appointed day means the date on which the Authority is established under the act. Authority
means the established under this Act.




Interim Insurance Regulatory Authority means the Insurance Regulatory Authority set up by the
Central Government through Resolution No. 17(2)/ 94-lns-V dated the 23rd January, 1996.




Words and expressions used and not defined in this Act but defined in the Insurance Act, 1938 or
the Life Insurance Corporation Act, 1956 or the General Insurance Business (Nationalization)
Act, 1972 shall have the meanings respectively assigned to them in those Acts.




A new definition of "Indian Insurance Company" has been inserted. "Indian insurance company"
means any insurer being a company (a) which is formed and registered under the Companies
Act, 1956; (b) in which the aggregate holdings of equity shares by a foreign company, either by
itself or through its subsidiary companies or its nominees, do not exceed twenty-six per cent. (c)
whose sole purpose is to carry on life insurance business, general insurance business or re-
insurance business.




                                               12
FUNCTIONS OF INSURANCE:

    Provide Protection: The primary function of insurance is to provide protection against
    future risk, accidents and uncertainty. Insurance cannot check the happening of risk, but
    can certainly provide for the losses of risk. Insurance is actually a protection against
    economic loss, by sharing the risk with others.

    Collective bearing of risk: Insurance is an instrument to share the financial loss of few
    among many others. Insurance is a mean by which few losses are shared among larger
    number of people. All the insured contribute the premiums towards a fund and out of
    which the persons exposed to a particular risk is paid.

    Assessment of risk: Insurance determines the probable volume of risk by evaluating
    various factors that give rise to risk. Risk is the basis for determining the premium rate
    also.

    Provide certainty: Insurance is a device, which helps to change from uncertainty to
    certainty. Insurance is device whereby the uncertain risks may be made more certain.

    Small capital to cover larger risk: Insurance relieves the businessmen from security
    investments, by paying small amount of premium against larger risks and uncertainty.

    Contributes towards the development of industries: Insurance provides development
    opportunity to those larger industries having more risks in their setting up. Even the
    financial institutions may be prepared to give credit to sick industrial units which have
    insured their assets including plant and machinery.

    Means of savings and investment: Insurance serves as savings and investment,
    insurance is a compulsory way of savings and it restricts the unnecessary expenses by the
    insured's For the purpose of availing income-tax exemptions also, people invest in
    insurance.




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       Source of earning foreign exchange: Insurance is an international business. The country
       can earn foreign exchange by way of issue of marine insurance policies and various other
       ways.

       Risk free trade: Insurance promotes exports insurance, which makes the foreign trade
       risk free with the help of different types of policies under marine insurance cover.




Insurance is divided into two basic zones:

      General Insurance

      Life insurance




GENERAL INSURANCE:-

Insurance of the non life assets are called general insurance, this includes loss of asset against
water, fire, earthquake etc. With the opening up of the Indian Market in Insurance sector for
private players, in General Insurance the monopoly of the general Insurance public sector’s
companies has been broken. With the entrance of the new private player market innovative
technique has been introduced to capture the market. In general Insurance around 17% of the
market has been captured by the private players.

General Insurance is a sector which alone has many type of insurance coverage in it like Fire
Insurance, Marine Insurance, motor Insurance, Liability Insurance, Engineering Insurance etc.




                                                14
The Non Life Insurers:

      National Insurance Co. Ltd

      New Indian Assurance Co. Ltd

      Oriental Insurance Co. Ltd

      United India Insurance Co. Ltd

      Tata AIG General Insurance Co. Ltd

      Bajaj Allianz General Insurance Co. Ltd

      IFFCO Tokio General Insurance Co. Ltd

      ICICI Lombard General Insurance Co. Ltd

      Reliance General Insurance Co. Ltd

      Royal Sundaram Alliance Insurance Co. Ltd

      Bharti Axa General Insurance

      HDFC Chub




                                             15
LIFE INSURANCE:-

Life insurance is a contract under which the insurer (Insurance Company) in Consideration of a
premium paid undertakes to pay a fixed sum of money on the death of the insured or on the
expiry of a specified period of time, whichever is earlier. In case of life insurance, the payment
for life insurance policy is certain. The Event insured against is sure to happen only the time of
its happening is not known. So life insurance is known as ‘Life Assurance’. The subject matter of
insurance is life of human being. Life insurance provides risk coverage to the life of a person. On
death of the person insurance offers protection against loss of income and compensate the
titleholders of the policy.




ROLES OF LIFE INSURANCE:

        Life insurance as an investment:        Insurance products yield more than any other
        investment instruments and it also provides added incentives or bonus offered by
        insurance companies.

        Life insurance as risk cover: Insurance is all about risk cover and protection of life.
        Insurance provides a unique sense of security that no other form of invest can provide.

        Life insurance as tax planning: Insurance serves as an excellent tax saving mechanism
        too.




                                                16
IMPORTANCE OF LIFE INSURANCE:

    Protection against untimely death:            Life insurance provides protection to the
    dependents of the life insured and the family of the assured in case of his untimely death.
    The dependents or family members get a fixed sum of money in case of death of the
    assured.

    Saving for old age: After retirement the earning capacity of a person reduces. Life
    insurance enables a person to enjoy peace of mind and a sense of security in his/her old
    age.

    Promotion of savings: Life insurance encourages people to save money compulsorily.
    When life policy is taken, the assured is to pay premiums regularly to keep the policy in
    force and he cannot get back the premiums, only surrender value can be returned to him.
    In case of surrender of policy, the policyholder gets the surrendered value only after the
    expiry of duration of the policy.

    Initiates investments: Life Insurance Corporation encourages and mobilizes the public
    savings and channelizes the same in various investments for the economic development
    of the country. Life insurance is an important tool for the mobilization and investment of
    small savings.

    Credit worthiness: Life insurance policy can be used as a security to raise loans. It
    improves the credit worthiness of business.

    Social Security:    Life insurance is important for the society as a whole also. Life
    insurance enables a person to provide for education and marriage of children and for
    construction of house. It helps a person to make financial base for future.

    Tax Benefit: Under the Income Tax Act, premium paid is allowed as a deduction from
    the total income under section 80C.




                                             17
The insurance sector was opened up for private participation a decade back. For years now, the
private players are active in the liberalized environment. The insurance market has witnessed
dynamic changes, which include presence of a fairly large number of insurers both life, and non-
life segment. Most of the private insurance companies have formed joint venture partnering well-
recognized foreign players across the globe.


The Indian life insurance market generated total revenues of $41.36 billion in 2008, thus
representing a compound annual growth rate (CAGR) of 11.84% for the period spanning 2000-
2008. Life insurance market had a growth of $22.46 billion within a period of 8 years with a
growth rate of 118.24%. Estimated life premiums rose to INR 1,470,800 million ($36.77 billion)
in 2007 from INR 1,301,540 million ($32.54billion) in 2006. We envisage that life premiums in
2011 will be $65.96 billion, a growth larger than they were in 2008. The performance of the
market is forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period
2008-2011 expected to drive the market to a value of $65.96 billion by the end of 2011. There
would be a growth of $24.6 billion i.e. 59.48% in the next 4 years. Non-life premiums in India
were $6.53 billion in 2007. Gross written premium (GWP) in the Indian non-life insurance
market reached a value of $5.75 billion in 2006, this representing an annual growth of 13.55%
for the period spanning 2006-2007. Estimated non-life premiums rose from INR230 billion
($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in 2007.


We anticipate that non-life premiums will grow by a CAGR of 9.40% between 2007-2011. We
are looking for non-life premiums to rise by $405 million over the five years to the end of 2011
with a growth rate of 62.02%.


With a huge population base and large untapped market, insurance industry is a big opportunity
area in India for national as well as foreign investors. India is the fifth largest life insurance
market in the emerging insurance economies globally and is growing at 32-34% annually. This
impressive growth in the market has been driven by liberalization, with new players significantly
enhancing product awareness and promoting consumer education and information.




                                                18
The strong growth potential of the country has also made international players to look at the
Indian insurance market. Moreover, saturation of insurance markets in many developed
economies has made the Indian market more attractive for international insurance players,
according to "Booming Insurance Market in India (2008-2011)”.
I-HYDERABAD
    Page 17
       Total life insurance premium in India is projected to grow Rs 1,230,000 crore by 2010-
       11.
       Total non-life insurance premium is expected to increase at a CAGR of 25% for the
       period spanning from 2008-09 to 2010-11.
       With the entry of several low-cost airlines, along with fleet expansion by existing ones
       and increasing corporate aircraft ownership, the Indian aviation insurance market is all
       set to boom in a big way in coming years.
       Home insurance segment is set to achieve a 100% growth as financial institutions have
       made home insurance obligatory for housing loan approvals.
       Health insurance is poised to become the second largest business for non-life insurers
       after motor insurance in next three years.
       A booming life insurance market has propelled the Indian life insurance agents into the
       ‘top 10 country list’ in terms of membership to the Million Dollar Round Table (MDRT)
       — an exclusive club for the highest performing life insurance agents.




                                                19
                            COMPANY PROFILE

Stock broking businesses in the UK. Kotak Group was established in 1985. Kotak Mahindra
Bank is the parent company of the group. Kotak Group entered into the life insurance business in
2001.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra
Bank Ltd. (76%) and Old Mutual plc. (24%). Old Mutual plc. is a world-Class international
financial services company. It was established in South Africa before 160 years.

OLD MUTUAL is the largest financial services business in South Africa, through its life
insurance, asset management, banking and general insurance operations. The company serves 4
million life insurance policyholders and employs over 13,000 South Africans in its local
operations.

In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of
specialist asset management skills through its 23 asset management businesses. The company’s
US Life business recorded sales of $4 billion at the end of 2002.The OLD MUTUAL Group has
the ability to cater for a variety of consumer segments and offers a comprehensive and
innovative range of products for all income groups.




                                               20
MISSION OF THE COMPANY:

“At Kotak Life Insurance, we aim to help customers take important     financial decisions at every
stage in life by offering them a wide range of innovative life insurance products, to make them
financially independent.”




MANAGEMENT OF THE COMPANY:

MR. UDAY KOTAK is the CEO of the company.




Other Top Management persons are as follows:-

Mr. Gaurang Shah (Managing Director)

He is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited. He is a
Chartered Accountant and a Cost and Works Accountant. He has also done his Company
Secretary ship from the Institute of Company Secretaries of India.

He has been with the Kotak Group for the past eight years where he has held different positions
of great responsibility and juggled multiple tasks effectively. His cumulative experience,
primarily in financial services, stands at over 21 years, several of those in building the retail
finance business.

At Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses and
leveraging the company's existing competencies and network to steer Kotak Life Insurance on its
ongoing growth path with even greater thrust. Mr. Shah has a commendable expertise in




                                               21
managing a large number of employees. He has been previously associated with Kotak Mahindra
Primus since its inception and has contributed towards its growth to become a Rs.2000 Cr plus
business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail
Assets for Kotak Mahindra Bank. The Retail Assets include commercial vehicles, personal loans,
structured products, car loans and loans against shares.




Mr. Nandip Vaidya (Vice President - Sales)

Mr. Nandip Vaidya is the Vice President - Sales at Kotak Life Insurance. Mr. Vaidya holds a
B.Tech (Mechanical) degree from IIT Mumbai and has also completed his Post Graduate
Diploma in Business Management from IIM - Ahmedabad.

He started his career as a Management Consultant at A.F. Fergusson. After completing 5 years
there, he moved onto various positions within the Kotak Mahindra group starting from Car
Financing (Kotak Mahindra Finance Ltd) to Stock broking & Distribution of investment
products/ Mutual funds (Kotak Securities). He set up the private banking business and private
equity fund for the Kotak group.




Mr. Eksteen de Waal (Head – Sales Training)

Mr. Eksteen de Waal is the Sales Training Head of Kotak Life Insurance. He joined on
secondment from Old Mutual South Africa for a period of two years. Eksteen is a post- graduate
in Law and practiced Law as well as lectured at South African Universities before joining the
Life Insurance Industry. He has over 23 years' experience in the Life Insurance Industry. He
worked for Sanlam Life in South Africa for 3 years before joining Old Mutual more than 20
years ago.

Eksteen started with Old Mutual as a Legal Adviser and after that held various positions. He sold
life assurance for some time, served as Head of Old Mutual's Training Division, Head of Old




                                                22
Mutual's Trust Company, Project Leader for implementing a new Sales Process with
McKinsey's, Head of Conventions and Motivation, Head of Agency Marketing and finally Head
of Banc assurance with Old Mutual Bank. In addition he played a role in the wider Industry.

He was Vice-President of the South African Insurance Institute for two years as well as Vice-
President of the Financial Planning Institute for three years. In this time he pioneered the
introduction of the CFP qualification into South Africa. He has traveled widely during his career,
working in the USA and England and also implemented Training Programme in Namibia,
Zimbabwe, Malawi and Kenai. His current role is to substantially upgrade the level of Training
and assist in the implementation of Performance Management Systems in Kotak Life Insurance




                                               23
                   BRANCH
                  MANAGER




ASSISTANT                                 BRANCH

 BRANCH                                  OPERATIONS

MANAGER                                  IN CHARGE



 SALES                                   OPERATION

MANAGER                                  EXECUTIVE




ASSISTANT

 SALES                                  OPERATIONS

MANAGER



  LIFE

ADVISOR




    Fig.: Hierarchy of KMOM Life Insurance Ltd.




                        24
AREAS OF BUSINESS:

Kotak Mahindra one of India's leading financial institutions was born in 1985 as Kotak Capital
Management Finance Limited. This company was promoted by Mr. Uday Kotak, Mr. Sidney A.
A. Pinto and Kotak & Company. Industrialists Mr. Harish Mahindra and Mr. Anand Mahindra
took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance
Limited.

It's been a steady and confident journey to growth and success.




In October 2005, Kotak Group acquired the 40% stake in Kotak Mahindra Prime held by Ford
Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM)
held by Kotak Group.

In March 2006, Kotak Group has agreed to buy 25% stake held by Goldman Sachs in KMCC
and KS subject to regulatory approvals.



                                               25
Kotak Mahindra is one of India's leading financial institutions, offering complete financial
solutions that encompass every sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to investment banking, the group caters to the financial needs of
individuals and corporate.The group has a net worth of around Rs.2,000 crore and employs
around 6,000 employees across its various businesses servicing around one million four hundred
thousand customer accounts through a distribution network of branches, franchisees,
representative offices and satellite offices across 216 cities and towns in India and offices in New
York, London, Dubai and Mauritius.

Evolution of Insurance business in Kotak Mahindra business is like this:-




                                                26
As stated above Kotak Mahindra Life Insurance has Joint venture with Old Mutual plc. Old
Mutual Plc is the 12th largest Insurance Company in the world. It has its base of over 4 million
life assurance policyholders. It has one of the best “Payouts” among insurers in the world. It has
one of the best “Solvency Ratios” among insurers in the world. A FTSE 100 financial services
group and ranks as a Fortune Global 500 company. The Old Mutual group manages in excess of
239 billion pounds in funds (Dec’06). The company is 160 years old and has prominent presence
in the United States and the United Kingdom




KOTAK GROUP IS INVOLVED IN THE FOLLOWING AREAS OF BUSINESS:




KOTAK MAHINDRA PRIME LTD.

Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group (Kotak
Group) formed to finance all passenger vehicles. The company is dedicated to financing and
supporting automotive and automotive related manufacturers, dealers and retail customers.

The Company offers car financing in the form of loans for the entire range of passenger cars and
multi utility vehicles. The Company also offers Inventory funding to car dealers and has entered
into strategic arrangement with various car manufacturers in India for being their preferred
financier.

As on March 31, 2008, KMP has a retail distribution network comprising of 54 branches
(including representative offices) covering about 100 locations in 17 states in the country and has
a wide network of Direct Marketing Associates, brokers and agencies supporting the distribution
network and servicing around 113,000 customers.




                                                27
KOTAK INVESTMENT BANKING

KIB is India's premier Investment Bank. Kotak Investment Banking (KIB) and Kotak
Institutional Equities represent the securities business of the Kotak Mahindra Group (KI),

Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach
and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak
Investment Baking’s core business areas include Equity Issuances, Mergers & Acquisitions,
Advisory Services and Fixed Income Securities and Principal Business.

Its strength lies in understanding the clients' businesses backed by a strong research team and an
extensive distribution network, which spans a wide variety of investors across the country. It is
also the first Indian Investment Bank to be registered with the Securities & Futures Authority in
the UK (through our wholly owned subsidiary) and the National Association of Securities and
Dealers in the USA.

It’s the first Indian Investment Bank to be appointed by the Government of India as a Co-lead
Manager in their international divestment of Gas Authority of India Ltd through a GDR offering.

Kotak Investment Bank today well positioned in an increasing globalize environment to provide
full service to its clients based either in India or overseas.




KOTAK MAHINDRA BANK LTD.

Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak
Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on
November 2, 1985 and obtained its ‘Certificate of Commencement of Business on February 11,
1986.

It commenced operations with Bill Discounting and soon started other fund-based activities like
corporate leasing & hire purchase, automobile finance and money market operations.
Subsequently, it also entered the funds syndication and the Investment banking business.

                                                   28
KOTAK MAHINDRA ASSET MANAGEMENT COMPANY

Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of
KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started
operations in December 1998 and has over 1, 35,000 investors in various schemes. KMMF offers
schemes catering to investors with varying risk- return profiles and was the first fund house in
the country to launch a dedicated gilt scheme investing only in government securities.




INTERNATIONAL SUBSIDIARIES

Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra
Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the
international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited
and in the USA, through Kotak Mahindra Inc. USA.

These companies are subsidiaries of Kotak Mahindra Capital Company (KMCC) – the
Investment Banking Division of the Group. Services offered include GDR and ADR trading and
broking, debt syndication, placement of Indian securities and advisory services. Kotak Mahindra
was the first Indian group to be registered with the Securities and Futures Authority, U.K. Also,

Kotak Mahindra is the first Indian group registered in the US providing service to both
Institutional investors and High Net worth Clients in the US for their investments into Indian
markets.




KOTAK SECURITIES

Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of India’s largest
brokerage and distribution house. Over the years Kotak Securities has been one of the leading
investment service providers catering to the needs of various investor categories both
institutional and non-institutional.

                                                29
The Private client group (PCG) of the Company provides value added investment advisory
services to high net worth individuals, NRI investors, trusts, corporate and Banks. The
investment product range offered by PCG covers equity investment and equity trading, equity
derivatives, portfolio management, IPO’s and Mutual funds.

Kotak Securities Ltd., Depository Participant with National Securities Depository Limited
(NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services wherein the
investors can use the brokerage services of the Company for executing the transactions and the
depository services for settling them.

Under the Portfolio Investment Scheme offered by the Company, the funds of the investors are
managed by a highly competent team comprising of Equity Strategist, a Portfolio Manager and a
team of equity, technical and derivatives analysts.

Kotak Securities Ltd., also an Approved Intermediary under the Securities Lending Scheme,
1997, facilitates clients to borrow and lend securities.




KMOM – PROGRESS TILL DATE:




       44 branches in 31 cities.


       7500 life advisors.



       1000employees of very good quality.



       Ranks 2nd in terms of average premium per policy.



       Ranks 4th in total advertising awareness.
                                                 30
KMOM – THE PARTNERSHIP AND LINEAGE:




                       A 26%-74% JOINT VENTURE BETWEEN




KOTAK MAHINDRA                       AND         OLD MUTUAL




KOTAK LIFE INSURANCE

    Brand equity

    Entrepreneurial employees

    Branch network

    Knowledge of the Indian market

    Access to customer base

    Distribution associates




                                           31
OLD MUTUAL PLC

       Domain knowledge

       Technology

       Product innovation

       Training expertise

       Global perspective

       System and processes

       Multi channel management




Old Mutual was established more than 150 years ago. Old mutual plc. is a world-class
international financial service company. It owns the largest companies in the following areas in
South Africa. They are:

       Life Insurance Company

       Asset Management Company

       Non-life insurance company

       Bank



                                               32
It has been developed into an International financial services group whose activities are focused
on asset gathering and asset management. The Old Mutual Group offers a diverse range of
financial services in three principal geographies: South Africa, the United States and the United
Kingdom. The company is listed on the London Stock Exchange with a market capitalization of
approximately $6 billion and is a member of the elite FTSE 100 index.

In the 2003 rankings of the World's 500 largest corporations by Fortune magazine, Old Mutual
climbed 87 places to position number 366 and was also listed as the 14th largest insurance
company in the world.

Old Mutual is the largest financial services business in South Africa, through its life insurance,
asset management, banking and general insurance operations. The company serves 4 million life
insurance policyholders and employs over 13,000 South Africans in its local operations.

In the USA, Old Mutual is one of the top ten fixed annuity businesses offering an array of
specialist asset management skills through its 23 asset management businesses. The company’s
US Life business recorded sales of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management, through Gerrard as one
of the leading private client stock broking businesses in the UK. The Old Mutual Group has the
ability to cater for a variety of consumer segments and offers a comprehensive and innovative
range of products for all income groups.




                                                33
                       PRODUCT PROFILE


PROTECTION PLANS:




                                        
                           Kotak Loan Protection Plan
   Kotak Loan Protection Plan is a protection plan that helps share the burden of
                                      your loan.
                                        
                        Kotak Term/Preferred Term Plan
    The Kotak Term/Preferred Term Plan is a pure risk cover plan that provides
                 you with a high level of protection at nominal costs.



                             Kotak Eternal Life Plans
      Kotak Eternal Life Plans are participating whole life plans that provide
                     enhanced protection till the golden age of 99.




SAVINGS & INVESTMENT PLANS:


                                       34
                          Kotak Smart Advantage
 Kotak Smart Advantage is an intelligent unit-linked plan that is based upon
    the idea of regular savings and systematic accumulation of wealth in the
                                    long term.



                        Kotak Safe Investment Plan
  Kotak Safe Investment plan is the ideal investment plan for you with its
     unique “Seal of Guarantee” offer that not just gives you the best of bull
         markets but also eliminates any capital loss in falling markets.



                              Kotak Flexi Plan
   Kotak flexi plan offers you an ideal market-linked investment plan that
    helps you create your own financial future by offering you the flexibility
                          and control over your money.
                      Kotak Platinum Advantage Plan
   Kotak Platinum Advantage Plan features capital protection, embedded
       investment advice, life cover and aggressive market linked growth
                                     options.




                          Kotak Easy Growth Plan
 Kotak Easy Growth plan, a single premium investment plan that generates
    value for you for whole life as well as provides protection to your family


                                     35
                         in case of unforeseen events.



                       Kotak Capital Multiplier Plan
 The Kotak Capital Multiplier Plan is the only plan of its kind that allows
                  you to enjoy returns even beyond maturity.



                         Kotak Money Back Plan
 This plan offers the key benefit of cash lump sums at periodic intervals of
       five years ensuring that you are able to meet any of your financial
                                  obligations.



                          Kotak Endowment Plan
 Kotak Endowment Plan is a participating endowment plan that provides
    you an avenue for long term regular investments to accumulate a lump
                               sum on maturity.




                       Kotak Premium Return Plan
 The premium Return Plan will get you the dual benefit of a risk cover and
               savings, with minimal paperwork and procedures.



                         Kotak Sukhi Jeevan Plan



                                    36
    Sukhi Jeevan is a long-term savings and protection plan that keeps pace
                  with your changing needs at every step of life.




RETIREMENT PLANS




                        Kotak Secure Retirement Plan
   An ideal retirement solution is one that gives you complete flexibility and
   peace of mind, not only while you save for your retirement but also after you
                                       retire.




                   Kotak Retirement Income (Unit Linked)


                                     37
   Kotak Retirement Income Plan is an ideal retirement solution that gives you
      complete flexibility and peace of mind, not only while you save for your
                         retirement but also after you retire.



                          Kotak Long Life Secure Plus
       Kotak Long Life Secure Plus is a unit-linked plan that ensures your
      investment gives maximum protection to secure your family's future and
                            their financial independence



                         Kotak Long Life Wealth Plus
    Kotak Long Life Wealth Plus is an intelligent investment plan that helps
      you builds your future net worth with power-packed features that actively
                    monitor and manage your investment growth



                         Kotak Retirement Income Plan
   The Kotak Retirement Income Plan is a savings plan designed to meet your
         post-retirement needs. It is a plan that gives you "Jeene ki azaadi".




CHILDREN PLANS

                                       38
                       Kotak Head Start Child Plans
 The head start child plans are specially tailored, cost effective plans that
  aim to give your children the financial means to pursue his or her dreams



                       Kotak Child Advantage Plan
 The Kotak Child Advantage Plan is an investment plan designed to meet
                      your child's future financial needs.
                                     




                                    39
                                 MARKET SHARE


If we look at the status of Kotak Life Insurance’s market share in comparison of other
private companies in terms of premium earned, the data will reflect:-

     No.                        INSURER                           Market Share (%)

1          Bajaj Allianz                                                          7.56

2          ICICI Prudential                                                       7.35

3          HDFC Standard Life                                                     2.87

4          SBI Life                                                               2.31

5          Birla Sun Life                                                         1.89

6          Tata AIG                                                               1.29

7          Max New York                                                           1.23

8          Aviva                                                                  1.14

9          Kotak Mahindra Old Mutual                                              1.11

10         ING Vysya                                                              0.79

11         Reliance Life                                                          0.54

12         Met Life                                                               0.40

13         Sahara Life                                                            0.06

14         Shriram Life                                                           0.03




                                          40
If we talk the growth of Insurance industry’s private players in recent years, the data will
reflect:-




Hence, it can be concluded that there is an intense competition among the private insurance
companies with a regular growth in all of them. Kotak life insurance has a market share of 1.11%
which is quite low but the company’s year after year growth is 334.5%. This shows a great deal
of satisfaction for the company.




                                               41
                           NEED OF THE STUDY

The need of the present study of is accomplished in the following points:-


        To know the consumers buying patterns so that the company may regulate its sales
       strategies.


       For the company, it is essential to know what the customers perceive about their
       products.


        Identification of the existing competition and preferences of people are essentially
       needed by the company.


       Since life insurance products deal with providing security to the customers, it is required
       to identify that the other objectives of people while purchasing the same.


       With the help of market segmentation, the company could evolve and explore the areas
       which are more beneficial to them.



        To gain the knowledge of insurance sector. This will give me more confidence in
       marketing the products given to me.




                                               42
          SIGNIFICANCE OF THE STUDY


The study will help the company in the following ways:-

       The company will be able to analyze its current consumer segment and can also
       explore new segments for their.

       The buying behavior pattern is an important tool for improving the customer base
       of the company

       This study can also have an impact on the awareness of people regarding various
       products of the company.

       An analysis of the same would lead the company to growth in terms of more
       customer oriented procedures.




                                         43
                    RESEARCH METHODOLOGY


Research always starts with a question or a problem. Its purpose is to question through the
application of the scientific method. It is a systematic and intensive study directed towards a
more complete knowledge of the subject studied.

Marketing research is the function which links the consumer, customer and public to the
marketer through information- information used to identify and define marketing opportunities
and problems generate, refine, and evaluate marketing actions, monitor marketing actions,
monitor marketing performance and improve understanding of market as a process.

Marketing research specifies the information required to address these issues, designs, and the
method for collecting information, manage and implemented the data collection process,
analyses the results and communicate the findings and their implication.

I have prepared my project on the basis of a survey on a sample selected from the entire
population and derive an opinion on that research.




THE MARKETING RESEARCH PROCESS:

As marketing research is a systemic and formalized process, it follows a certain sequence of
research action. The marketing process has the following steps:

     Formulating the problems
     Developing objectives of the research
     Designing an effective research plan
     Data collection techniques
     Evaluating the data and preparing a research report




                                               44
DATA COLLECTION:

THERE ARE TWO TYPES OF DATA COLLECTION METHODS:-

              Primary data

              Secondary data

   For my project, I decided on primary data collection method for observing working of
company and approaching customers directly in the field and through references to know their
interests in business with company and also make questionnaire for understanding of the buying
behaviours of customers in Dehradun city for the company. The data for this research project has
been collected through self administration. Due to time limitation and other constraints, direct
personal interview method is used. A structured questionnaire was framed as it is less time
consuming, generates specific and to the point information, easier to tabulate and interpret.
Moreover respondents prefer to give direct answers. In questionnaires open ended and closed
ended, both the types of questions has been used.




                                               45
SAMPLING PLAN:


Since it is not possible to study whole population, it is necessary to obtain representative samples
from the population to understand its characteristics.

       Sampling Units: Individual respondents for buying behaviour patterns and market
       segmentation study are selected randomly from different areas of Dehradun.

       Sample Technique: Random Sampling

       Research Instrument: Structured Questionnaire

       Contact Method: Personal Interview



SAMPLE SIZE:

Study of consumer buying behaviors and evolving market segmentation: 50respondents.



DATA COLLECTION INSTRUMENT:

The mode of collection of data is based on Survey Method and Field Activity. Primary data
collection is based on personal interview. I have prepared the questionnaire according to the
necessity of the data to be collected. The secondary data is collected from the company’s internal
sources as well as from the internet.


INCLUSION CRITERIA:

Consumers in the age group of 30-45 living in different parts of Dehradun city with 50
respondents of personal reference are included and only the new customers approached are
included in the study.




                                                46
EXCLUSION CRITERIA:

People with the age group of less than 30 years and more than 45 years are excluded from the
study. The current customers of kotak life insurance are also remained aside of the study.




RESEARCH LIMITATIONS:


       The research is confined to certain people of Dehradun and does not necessarily show a
       pattern applicable to all the population of the country.

       Some respondents were reluctant to divulge personal information which can affect the
       validity of all responses.

       In a rapidly changing industry, analysis on one day or in one segment can change very
       quickly. The environmental changes are vital to be considered in order to assimilate the
       findings.




                                                47
           DATA ANALYSIS & INTERPRETATION




 DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE
  COMPANIES



                          NO.OF
  COMPANY’S NAME                        SHARE (%)
                          RESPONDENTS

  L.I.C.                           28         56

  RELIANCE         LIFE
                                   2           4
  INSURANCE

  ICICI PRUDENTIAL                 6          12

  SBI LIFE                         10         20

  KOTAK                            4           8

           TOTAL                   50         100




                                  48
                              8%




                                                                               LIC
                 20%

                                                                               R EL



                                                                               IC IC I
                                                     56%

                                                                               SB I
                  12 %

                                                                               KOT A K

                         4%




INTERPRETATION
56% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that
percent of respondents while only 8% were preferring kotak life insurance.




                                               49
        DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY
           RESPONDENTS

                                       NO.OF
    BENEFITS                                                  SHARE (%)
                                       RESPONDENTS

    Cover Future Uncertainty                    25                        50

    Tax Deductions                              11                        22

    Future Investment                           14                        28

    TOTAL                                       50                       100




                       28%
                                                                Cover future
                                                                uncertainty
                                                                Tax deductions
                                                  50%

                                                                Future investment

                        22%




INTERPRETATION
50% of the respondents believe that covering future uncertainty is the biggest benefit of an
insurance policy.

Whereas, 22% and 28% of them believe that the other benefits are tax deduction and future
investments respectively.



                                                50
    DATA PROVIDES FEATURES OF INSURANCE                                        POLICY THAT
       ATTRACTED RESPONDENTS

       FEATURE                            NO.OF                     SHARE (%)
                                          RESPONDENTS

       Money Back Guarantee                          10                    20

       Larger Risk Coverance                         20                    40

       Easy Access to Agents                         7                     14

       Low Premium                                   6                     12

       Company’s Reputation                          7                     14

       TOTAL                                         50                   100




                             14%                  20%                Money back guarantee
                    12%                                              Larger risk coverance
                                                                     Easy access to agents
                                                                     Low premium
                      14%
                                                  40%                Company's reputation




INTERPRETATION

Majority of the respondent (40%) found larger risk coverage as the most attracted feature of all.




    DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE


                                                51
   RESPONDENTS


       POLICY TYPE               NO.                   OF SHARE (%)
                                 RESPONDENTS

       LIFE POLICY                          30                      60

       NON               LIFE               12                      24
       POLICY

       BOTH                                  8                      16

       TOTAL                                50                      100




                        16%


                                                               Life policy
                                                               Non-life policy
                 24%                                           Both
                                                 60%




INTERPRETATION
60% of the respondents have life insurance policy while 16% have both life as well as non-life
insurance policy.




                                                 52
    DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

                RESPONSE                         NO. OF                   SHARE
                                              RESPONDENTS                  (%)

     A saving tool                                      24                  48%

     A tax saving device                                12                  24%

     A tool to protect your family                      14                  28%

     TOTAL                                              50                    100




                                                              A saving tool
                        28%
                                                  48%         A tax saving
                                                              device
                                                              Family protection
                          24%
                                                              tool




INTERPRETATION

48% of the respondents have perception of Insurance being a saving tool.

24% of the respondents have the perception of Insurance being a tax saving device. But 28% of

the respondents are with the view that Insurance is a tool to protect your family.



                                                53
    DATA SHOWING PEOPLE HAVING AN INSURANCE POLICY


            RESPONSE                      NO. OF             SHARE (%)
                                       RESPONDENT
                                            S

   Yes                                         35                 70%

   No                                          15                 30%

   Total                                       50                  100




                       30%

                                                                       Yes
                                                                       No

                                            70%




INTERPRETATION

Of the sample size of 50 surveyed respondents 70% of the respondents are having Insurance
policy. 30% of the respondents are either not having any Insurance policy at present or their
policy is already matured.


                                             54
 DATA SHOWS BUYING PROCESS OF THE PEOPLE

       BUYING PROCESS                   NO. OF         SHARE (%)
                                     RESPONDENT
                                          S

    Customer approached                      20              40%
    Insurance company/Agent

    Company/agent approached                 30              60%
    customer

    Total                                    50              100




                                                                   Customer approached
                                                       40%         Insurance company/Agent

                        60%



                                                                   Company/agent
                                                                   approached customer




INTERPRETATION

40% of the respondents approached the Insurance Company / Agent. Whereas, 60% of the
respondents were approached by the Company /Agent.




                                           55
        DATA SHOWS SATISFACTION                            OF        RESPONDENTS               WITH
         RESPECT TO POLICY


             RESPONSE                        NO. OF                   SHARE (%)
                                          RESPONDENT
                                               S

   Satisfied                                      32                    64%

   Not satisfied                                  18                    36%

   Total                                          50                     100




                              35                                                satisfied


                                                                 65

                                                                                not satisfied




INTERPRETATION

64% of the respondents are more or less satisfied with their existing policy.

36% of the respondents are not satisfied with their existing policy.




                                                56
 DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

   RESPONSE                             NO. OF                SHARE (%)
                                     RESPONDENTS

   Paying tax                                 45                   90%

   Not paying tax                              5                   10%

   Total                                      50                    100




                                           10%

                                                                          paying tax
                                                    90%
                                                                          not paying tax




INTERPRETATION

Of the sample size of 50 respondents, 90% respondents are paying tax.

10% were those who did not came in the tax paying category.




                                              57
      DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX
      SAVING

     INVESTMENTS                NO. OF           SHARE (%)
                             RESPONDENTS
LIC                               14               28%
NSC                               10               20%
Bonds                             9                18%
PPF                               8                16%
PF                                6                12%
EPF                               3                 6%
TOTAL                             50                100




                             6%                           LIC
                 12%                       28%
                                                          NSC
                                                          Bonds
                                                          PPF
           16%
                                                          PF
                       18%              20%               EPF




                                   58
INTERPRETATION

   28% of the respondents save their tax by investing in LIC, which is the highest among all
    investments. This shows that most people, for getting taxes benefits invest in LIC.

   20% of the respondents do their tax saving by investing in National Saving Certificates
    (NSC).

   18% of the respondents to their tax saving by investing in bonds.




                                               59
 DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR
    INVESTMENT

            RESPONSE                       NO. OF                  SHARE (%)
                                        RESPONDENT
                                             S
    Saving & Returns                             22                       44%
    Security                                     18                       36%
    Both                                         10                       20%
    TOTAL                                        50                       100




                20%

                                                    44%        Savings & returns
                                                               Security
                                                               Both
               36%




INTERPRETATION

   44% of the respondents intent to gain saving and returns from their investment.

   36% of the respondent’s intent to gain security from their investments.

   Whereas, 20% of the respondents intent to gain both the benefits from their investments.



                                               60
 DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR
  BUYING INSURANCE

      RESPONSE               NO. OF           SHARE (%)
                          RESPONDENTS
  After 25 years              17                34%
  After 35 years              20                40%
  After 45 years               5                10%
  Anytime                      8                16%
  TOTAL                       50                 100




                   40%

                                        10%
                                                After 25 years
                                                After 35 years
                                                After 45 years
                                        16%     Anytime


                    34%




                                   61
INTERPRETATION

   34% of the respondents are with the view that insurance should be bought after the age of 25
    years.

   40% of the respondents are with the view that insurance should be buyed after the age of 35
    years.

   Whereas, 16% of the respondents are with the view that buying of insurance do not have any
    thing to do with age i.e. there is no age limitations. It can be purchased any time according
    to the need.




                                               62
 DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE
  COMPANIES

        RESPONSE                NO. OF          SHARE (%)
                             RESPONDENTS
Rigid plans                         18               36%
Non user friendly                   10               20%
Unsatisfactory services             9                18%
Non Aggressive                      3                 6%
Satisfactory                        4                 8%
Good                                6                12%
Very good                           0                 0%
TOTAL                               50               100

                                              Rigid plans
                       12%   0%
                                              Non user friendly
                 8%
                                         36% Unsatisfactory
                                              services
               6%                             Non aggressive

                                              Satisfactory

                                              Good
                 18%
                                              Very good
                                  20%




                                   63
INTERPRETATION:

   20% feel that Indian Insurance companies are Non-user friendly.

   36% of the respondents have the opinion that Indian Insurance Companies have Rigid plans.

   18% feel that services of Indian Insurance companies are Unsatisfactory.

   6% of the respondents are with the view that Indian Insurance companies are Non-
    aggressive.

   8% of the respondents feel that products and services of Indian Insurance companies is
    Satisfactory.

   Whereas only 12% feel that it is Good enough.

   And according to the data, no single person has felt that it is very good.




                                                64
   DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN
     INSURANCE COMPANY

     RESPONSE                NO. OF        SHARE
                           RESPONDEN        (%)
                               TS
A trusted name                 20           40%
Friendly service       &       8            16%
responsiveness
Good plans                     16           32%
Accessibility                  6            12%
TOTAL                          50           100



                                            A trusted name
                       12%

                                            Friendly service
                                     40%    &
                                            responsiveness
                 32%                        Good plans


                                            Accessibility
                             16%




                                    65
INTERPRETATION

   40% customers look for a trusted name in a company for insurance.

   32% customers look for a good plan in a company for insurance.

   Friendly service & responsiveness and Accessibility are also important factors looked by
    customers in a company.




                                             66
 DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A
   SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER
   SERVICE & PRODUCTS

              RESPONSE                      NO. OF                SHARE (%)
                                         RESPONDENT
                                              S
    Yes                                          23                    46%
    No                                           21                    42%
    Uncertain                                       6                  12%
    Total                                        50                   100%




                                  12%


                                                                                 46%
                                                                                          yes
                                                                                          no
                                                                                          uncertain

                  42%




INTERPRETATION:

The interested customers i.e. 46% are ready to go for insurance even away from a city if services
and products are worthwhile, which again is a good prospect (potential) for Kotak Life Insurance
to take them on their favour.

                                               67
                                   CONCLUSION
After a complete and thorough analysis of the buying patterns of consumers with the help of the
study of Kotak life insurance, we come at the conclusion that

       There is very tough competition among the private insurance companies as different
       companies are having different attributes to attract the customers.
       The most preferable and reliable company in the minds of consumers is LIC.
       The private players are constantly increasing their market share but still they are able to
       capture only 36% of the total market. This shows that a large market area has been
       untapped by the private companies.
       Kotak is not left behind in the present race of advertisement.
       For Kotak life insurance, it may be noted that only 4% customers were reluctant to invest
       in the company. This shows that the reputation of the company is not satisfactory.




                                                68
       SUGGESTIONS AND RECOMMENDATIONS

According to the results and conclusions of the above study, the following suggestions and
recommendations can be given to the company:-




       First and the foremost, the company should look to improve its reputation so that the
       customers may perceive it as a reliable company.
       Efforts should be made to improve the quality of services provided by the company to its
       customers because customers are satisfied only with quality.
       The customers are having incomplete knowledge about the products of the company.
       Hence, it must be ensured that full information about the plans is provided to them so that
       the customers can select the best out of them.
       In insurance industry, the agents/life advisors play a very crucial role. Hence, the
       company must hire competent persons with good communication skills who can satisfy
       the customers and are best in their job.
       It is suggested to develop new and attractive plans so that the competition in the market
       could be faced.




                                                  69
                          BIBLIOGRAPHY



  Sr.no                      Book                   Author

   1           Financial Markets and Services    Dr N.K.Gupta

   2                   Life insurance           Prof. O.S.Gupta.

   3              Marketing management           Philip kotler.

   4              Product brochure of KLI              -




WEB SITES

         www.kotaklifeinsurance.com
         www.licindia.com
         www.irda.org
         www.lifeinsure.com




                                        70
                           QUESTIONNAIRE
Dear Sir/Madam,

              I am a BBA student of GRAPHIC ERA UNIVERSITY,
DEHRADUN, and presently doing a marketing analysis for KOTAK LIFE
INSURANCE. I request you to kindly furnish information on the questionnaire
below.

I assure you that your identity shall not be disclosed and the data shall be used only
for academic purpose.




1.    ARE YOU EMPLOYED?
      YES     NO



      If YES, only then proceed



2.    DO YOU HAVE ANY INSURANCE POLICY?
      YES     NO




3.    WHICH INSURANCE POLICY DO YOU HAVE?


      LIFE                NON-LIFE                   BOTH




                                          71
4.   WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?
     (RANK THEM)


       a) LIC



     b) ICICIPRUDENTIAL



     c) SBI LIFE INSURANCE



     d) KOTAK LIFE INSURANCE



     e) RELIANCE LIFE INSURANCE



       g) ANY OTHER                     ________( Specify)



5.   FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?
     (Please Tick)


     a) <5Yrs   b) 5-10 Yrs c) 10-15 Yrs d) Any Other______

                                                (Specify)




                                   72
6.   WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE
     COVER?
                                    (RANK THEM)



     a) COVER FUTURE UNCERTAINITY



     b) TAX DEDUCTIONS



     c) FUTURE INVESTMENT



     d) ANY OTHER           _________ (Specify)



7.   WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY
     IT?
                                  (RANK THEM)



     a) LOW PREMIUM



     b) LARGER RISK COVERANCE



     c) MONEY BACK GUARNTEE




                              73
      d) REPUTATION OF COMPANY



      e) EASY ACCESS TO AGENTS



      f) ANY OTHER                _________ (Specify)



8.    YOUR MONTHLY INCOME?



      a)<4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)



9.    DO YOU REALLY THINK INSURANCE POLICY COVER IN
      TODAY’S SCENARIO IS NOT ESSENTIAL?



      _____________________________________________________



10.   WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

                                               (RANK THEM)



      a) A SAVING TOOL



      b) A TAX SAVING DEVICE



      c) A TOOL TO PROTECT FUTURE

                                   74
11.   HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?



      a) CUSTOMER APPROCHED INSURANCE COs



      b) INSURANCE COs APPROCHED CUSTOMER



12.   ARE YOU SATISFIED WITH THE POLICY?



      a) SATISFIED SAVING TOOL



      b) NOT SATISFIED



      c) NOT RESPONDING



13.   DO YOU PAY TAXES?



      YES                 NO




                                 75
14.   WHERE HAVE YOU INVESTED FOR TAX SAVING?

                                   (RANK THEM)

      a) LIC



      b) NSC



      c) BONDS



      d) PPF



      e) PF



      f) EPF



  15. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?



  a) SAVING & RETURNS



  b) SECURITY




                            76
  c) TAX BENIFITS



16. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

  a) AFTER 25 Yrs



  b) AFTER 35 Yrs



  c) AFTER 45 Yrs



  d) ANYTIME

17.HOW WOULD YOU RATE INDIAN INSURANCE COs?



  a) RIGID PLANS



  b) NON-USER FRIENDLY



  c) UNSATISFATORY SREVICES



  d) NON-AGGRESSIVE



  e) SATISFACTORY




                              77
  f) GOOD

g) VERY GOOD

18. WHAT WOULD YOU LOOK FOR IN AN INSURANCE COs?

                                         (RANK THEM)

  a) A TRUSTED NAME



  b) FRIENDLY SERVICE & RESPONSIVENESS



  c) GOOD PLANS



  d) ACCESSIBILITY



19. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER
AWAY FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?




  a) YES



  b) NO

  c) UNCERTAIN




                            78
THANK YOU




  NAME:_________________________

  AGE:



  ADDRESS:______________________

   ______________________________

  OCCUPATION:___________________




            79

				
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Description: Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance acts as a flexible money-saving scheme, which empowers you to accumulate wealth-to buy a new car, get your children married and even retire comfortably.