37665904 market potential of kotak mahindra life insurance by nitin kamble marketing

8/8/2019 37665904 Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing

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PROJECT REPORT ON

MARKET POTENTIAL OF KOTAK MAHINDRA LIFE INSURANCEFOR KOTAK MAHINDRA LIFE INSURANCE, PUNE

IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION TO PUNE UNIVERSITY

Submitted By NITIN D. KAMBLE

Under The Guidance Of PROF. YUVRAJ LAHOTI

VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE. MBA(2004-2006)


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ACKNOWLEDGEMENT

No study is big or small can be undertaken all by oneself.Behind this project too is guidance of those individual people to whom I will be always grateful. I express my deep sense of gratitude to Kotak Mahindra Group for giving me the opportunity of doing this project in their well-renowned organization which otherwisewould not have been easy. I am deeply indebted to Mr Nikhil Shah, Sales Executi

ve in Kotak Mahindra Life Insurance who selected me as a trainee to work with him and guided me throughout the project. I am grateful and would like to expresssincere thanks to my guide Proff. Lahoti Yuvraj for their valuable suggestion and guidance throughout this project. This tremendously helped me in execution ofthe entire Project.

Mr. Nitin Kamble (MBA 2004-2006)


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DECLARATION

I undersigned Mr. Nitin Kamble hereby declare that the project report written and submitted by me under the guidance of Proff. Lahoti is my original work. The empirical findings and data collected in this report are based on the informationcollected by me through fieldwork. I have not copied from any report submittedto any of the University/ Institution. I understand that any coping is liable to

be punishable by authorities.

Place:Pune Date: Signature


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CONTENTS

Sr.No 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. 11.

TitleExecutive Summary Introduction to topic Scope and limitations industry profile Company Profile Research Methodology Data Analysis And Interpretation Findings An

d Suggestions Annexure Conclusion Bibliography


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EXECUTIVE SUMMARY

The objective of the project was to be Market research & find out the Market Potential for Kotak Mahindra Life Insurance . For this we have to understand consumer response, time frame, personality constraints and emotions for assessing thepotential of insurance sector. So specifically the target of the project is to focus of the high network income groups and retailers for their investment portio

n. Project involved a blend of marketing where we were to interact we all kindsof retailers, wholesalers, real estate agents & other service group to gather information on site and tell them what are the new opportunities that are with Kotak Mahindra Life Insurance and tell them what are the benefits they will get ifthey insured with kotak group.The main task of project involved carrying the fieldwork where we supposed to visit all kind of retail outlets as well as non-retail business in major localities. The first half of my project involved in Kotakis to carry the fieldwork along with campaigning in different localities in Puneregion. Data collected from fieldwork were submitted to the company for futurerequirements and also to get back to the customers. The study undertaken for twomonths. As I have to target specifically to retailers and whole sellers who form the majority portion of the total market. We were given more than one month fo

r the collection of data and scanning of data. This report shows detail work onfollowing areas Pune Satara road Laxmi road Tilak road J.M. road Bibewadi area Market yard


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For this purpose Feedback form was prepared which gave a broader picture of thepeople about their existence investment segments. The form shows details regarding current savings and planning for their future events. Through this form we got to know what people think about private insurance sector and get the idea about different flaws in the insurance sector because it is seen that during interview few people had a idea about private players in the insurance sector and theirdevelopments. The questionnaire contains various aspects like profession, educa

tion, current savings, number of dependants, address etc. Second part of the study contains scanning the form/questionnaire making proper evaluation of given information and going back to them showing how they need to plan their future andthe direction to achieve their desired goals. Though, many respondents did not give all the details regarding current savings. For assessing the customer response following market research process followed Step 1:Define the objective: Firststep is defining the objective i.e. Market Potential for Kotak Life

Insurance researcher covered most of the areas, which had been instructed by thecompany. Step 2:Develop research plan: The second step was to develop the mostefficient plan for gathering the needed information. i) Data sources: Both primary & secondary data are taken into consideration. Primary data are data gathered

from field for specific research project. ii) Research approach: I have mainlycollected the primary data through survey & few cases by observations. iii) Research instrument: Questionnaire is used to collect most of the primary data.


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iv) Sample plan: after deciding on the research approach the instruments I decided sampling plan this cause for three decisions. a. Sampling unit: project was concentrated on retailers, whole sellers, real estate agents, service group & others for the sampling unit b.Sampling size: project consists of 165 respondents from different areas & from different professions. c. Contact method: once a sampling plan has been determined, marketing researcher need to decide how the subject should be contacted: mails, telephone, personal visit or online interview. In

my project research it was mostly personal interview and in some cases telephonic interviews was held.

Step 3: Collect the information: Data collection phase of the marketing researchgenerally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give all the detail information and mightnot be available and must be contacted or replaced. Others refused to co-operateand finally some respondents will be biased or dishonest to share information.Step 4:Analyze the information: The collected information needs to be analyzed thoroughly to extract the findings that will be useful to the company. Again thisdata must be tabulated and averages/measures are computed from various variables. Step 5:Present the findings: And the last step is present the findings that a

re relevant to the objectives.


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INTRODUCTION TO TOPIC

Life insurance is a contract between you and a life insurance company, which provides you a predetermined amount in case of your death, accidents or any uncertain events during the contract term. Buying insurance is extremely useful if oneis the principle-earning member in the family and unfortunate premature demise,your family can remain financially secured because of the life that you have pur

chased. The primary purpose of life insurance is therefore protection of the family for uncertain events for future. Life insurance is also seen as a tool to plan effectively for the future years, your retirement, education of the childrens and their future needs. Today, market offers insurance plans that not just cover you and your family but at the same time it helps to grow your wealth too. Life wasn t designed to be risk free. The key is not to eliminate risk, but to estimate it Accurately and manage it wisely.

Insurance sector have characteristic that give can boost to the growth of any economy .it is due to the savings done at the individual level and at micro levelit generates funds for infrastructure building as the cash flow is constant while the payout is differed, so that the insurance companies are becoming biggest i

nvestors in long gestation infrastructure development projects and hence have agreat Importance to the developing economy like India. Insurance sector with anannual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge.


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experience of working in an organization. So the fieldwork was essential to getexposure to various management practices in the field of marketing. The main purpose of the project was basically to find the market potential for kotak mahindra life insurance pune. It included extensive market surveys and meetings mainlywith the retailers, whole sellers and other merchants from different regions ofpune. The project is divided in two parts, for the first half is contains periodof 30 days in which I did research, surveys and meetings with the people to col

lect data. In the later part I met various retailer, whole sellers, real estateagents, stockiest and few others to promote and make them aware about the company. The survey also helped to provide details regarding various opportunities anddifferent plans and policies that are coming up in the company. This was usefulinformation for them to get the benefits and to know future growth prospects ifthey join with the company. Importance of the topic The topic gives broader picture about who is the market leader among all the insurance providers. The studyis all about finding out the market potential of kotak mahindra life insurancefor the pune region. Kotak group recently launched Kotak Mahindra Life Insurancealong with old mutual plc. as join venture. There are already 13 private insurance companies in the Indian market & what is the present position of kotak mahindra life insurance could be determined by market research and fieldwork. This da

ta will be helpful to determine what are the pros & cons kotak is facing in themarket, how do people perceive kotak group as life insurance providers.


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SCOPE AND LIMITATIONS

Scope of the study The study of potential of insurance business is concerned with market study i.e research and fieldwork. This study is going to help the KotakLife Insurance to find out market potential with other companies. The study will help the company to assess their performance and improve it where it is lacking. Research work is a basic function carried out by each organization. The study

of market potential of insurance is very helpful to find out who are the marketleaders in private companies as well as overall analysis. Availability of timewas also taken into account while decid8ing the particular method to meet the objectives. The entire study programmed was for the period of two months. The subject of the study was selected by looking the necessity and importance to find the market potential and give suggestions related to the topic.

Limitations: One of the major limitations of this study was lack of sufficient time as the subject was required lot of time. The time limit permitted to cover the major areas of Pune but not all the regions of the city. The study limits itself only to Kotak Mahindra Life Insurance.


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INDUSTRY PROFILEFive years after the life insurance sector was opened up to the private sector,market scenario for all these companies in not very much exiting. Already over Rs.15000 crore has been invested in the sector by major and their foreign partners. But that is obliviously not enough, a few thousand crores more will be needed. Because almost of the 13 private sector life insurance companies are incurringsubstantial losses. Some estimate suggests that private insurers made a combine

d loss of almost Rs 1000 crore in 2003-04.Things haven t changed much since. Bajaj Allianz Life Insurance, the second largest private sector life insurer, posted a loss of Rs 76.8 crore in the first nine months of the current fiscal. KotakMahindra Life Insurance registered a loss of Rs 41.22 crores over the same period. Birla Sun Life Insurance, which claims to be among the most efficient users of capital, posted a loss before interest and taxation of Rs 60.03 crore for theyear ended 31st March 2005.And just in the October-December quarter of 2005,Indias largest private sector insurer, ICICI Prudential posted a loss as the othershave run up in the first nine months of FY 06. The losses itself are not a majorconcern. Such under spread losses are neither abnormal, nor expected in the initial years. In this business, companies have to bear such losses if they want toreap the substantial long-term profits. But profits are still many years away.

At the moment, private sector life insurers are at a stage where any growth willonly add to their losses. In fact the insurance sector is seeing a strong growth-in terms of penetration. Life insurance premium to GDP has grown from 1.8 percent to 2.3 percent while the per capita premium paid has more doubled from Rs. 280 to Rs. 600. However, there is one big reason for alarm. Insurers do need access to substantial capital in order to keep up this growth despite their initiallosses. But many private sector


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insurers are struggling to raise the required capital. That s because the government has not yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies from 26 % of equity to 49 % as outlin3d by the previous government. And because of 26 % FDI cap, the burden of funding the growth falls on the Indian promoter. The need for capital is even more crucial in the context of the (IRDA) Insurance Regulatory and Development Authority regulation on solvency margins. In India, for every Rs 100 of claims payable to customers a life insurance

company must have assets worth Rs 150. OPTIMISTIC INDIAN MARKET FOR INSURANCE SECTOR: Indian market can be labeled as a untapped market, which in it s core holds immense potential for growth. The hike in FDI from 26% to 49% .this increasingcapital participation of international insurers will accelerate the developmentof the Indian insurance industry, through the greater deployment of technical competencies and innovative products and processes .As The purchasing power of Indian people is increasing, so we can predict that the no. of customers who can afford to investment in health, life, disabilityand pension products is going toincrease up to great level. According to SWISS Re Economic Research and Consulting.

300 250

2014 2012 2010

200 150 100 50 0 1 2 3 4 5 6

2008 2006 2004 2002 2000 1998 1996 Rs. Billion Years

Fig. INDIAN INSURANCE GROWT FORCAST


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AREAS OF OPPORTUNITIES 1) New Horizons of investment Insurance companies have shown an unquenchable thirst to offer customized solutions Based on individual risk appetite of customers rather than mundane, one size fits all endowenment. Based insurance products. We have a good example of ULIP (Unit links Insurance Plan)by LIC. It is a single largest innovation in life insurance industry. Life Insurance products are similar to investment product with less or risk coverage, signifying changing preferences of investors. ULP s score over mutual funds, since

they offer risk-cover, as well as returns by investing in stock markets, even out performing equity returns in certain instances. We can have the same plans from other private players like Bajaj-Allianze i.e. equity plan funds, ICICI Prudential maximizer, HDFC standard life growth fund. Total premium under return for unit-linked plans in the financial year 2004-2005 stood at Rs. 82.47 billion, andoutstanding growth of 422% over the previous year. 2) Indian Rural Market A large number of Indians lives in rural India, so this market should be tabbed by insurance companies and it require a different approach of sales services with respect to meeting such challenges as low awareness, irregular incomes and geographical distances. The focus has to be on simple coverage and return of premiums. Very few companies have plans for rural India. 3) Customized Solutions Competitive insurance market exploring the new customer segments, it includes pension plan

s and children plans. By 2026 India will have 179 million people who wear above60 years of age. According to that insurance companies should have a marketing plan. Special children plans are the current requirements, as the education is becoming more important and expensive. So such plans must be introduced by all insurance companies. ICICI Prudential and LIC have already done this.


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II. WHAT IS NEEDED TO BE EXPLORERED? 1) The industry in general faces the challenge of building the credibility of being a financial service provider while meeting a customer s expectation of what it means to be a financial services company. Financial service brands are based on insuring long-term financial security throw a broad range of inherently risky services and investment options. In the insurance sector, branding has typically involved the concept of stability; trustand protection from risks in time of crises, or even protecting from a crises th

row a standard set of products. It will help to establish what insurers stand for and promise and will eventually help to give a industry new image.

2) The altered scenario of the insurance market in India has brought in new anddifferentiated products and services offerings to the public and has opened newchallenges for insurance companies. Devising specific strategies to reach out tospecific segments of the market, different countries and across social strata has been one aspect of the challenge. The other more complex one has entailed designing the products, marketing them, ensuring the smooth selling of products, collecting premiums, managing claims, managing & investing the funds and managinga vast enterprise. This has created a need of strong Risk Management.

3) The core function of the marketing force of an insurance company is to generate awareness about the insurance products among the target market.

4) Branding the marketplace is similar to branding on a cattle ranch, the purpose of a branding program to differentiate our cow from the cattle of range. According to an article in the insurance marketing magazine, Feb-March 2002, brand strategy is one of the most critical parts of the underlying business strategy ofany organization. It will help to establish what insurers stand for and promiseand will eventually help to give a industry new image. This positioning helps togive credibility to


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sell Risk-Free products design to help customers insure that their family and assets are protected.

5) Branding is the new key challenge in the financial services industry. Life inthe 21st century will be longer with more choice in more fields of activity. The financial consequences of an increased life span are particularly likely to betough. Inevitably, this will lead to more complexity, which in turn necessitate

s greater clarity and appeal from the service providers. Branding is more relevant in the financial services market, which not only faces the problem of securing and retaining customers in an increasingly competitive marketplace but also experiences the need for heightened relevance of the brand proposition in a worldwhere brand has been termed the new religion.


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QUICK FACTS: Second largest mobilizer of savings after banks. Constitutes 15 % of gross domestic savings after banks. Rs 400,000 crore of assets under management. Rs 40,000 crore invested in infer-structure Share of retail customers to total-92 % Agency force 15 lakhs No. Of policies in force: 20 crore

- Employees: 200,000 HISTORY

1912: The Indian Life Assurance Companies Act enacted as the first stature to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both lifeand non-life insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized.LIC formed by an Act ofParliament, viz. LIC Act,1956,with a capital contribution of Rs.5 crore from theGovernment of India.


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Indian Promoter- HDFC Foreign Insurer Standard Life, UK

6.ICICI Prudential Life Insurance Indian Promoter Foreign Insurer ICICI Bank Prudential, UK

7.KOTAK MAHINDRA Life Insurance Indian Promoter- KOTAK Bank Foreign Insurer- OLDMUTUAL, South Africa. 8.Max New York Life Insurance Company Indian Promoter For

eign Insurer MAX India NEW YORK LIFE, US

9.MET LIFE Insurance Company Indian Promoter Foreign Insurer J & K Bank MET LIFE, US

10.SAHARA Life Insurance Company Ltd Indian Promoter Foreign Insurer 11.SBI LifeInsurance Indian Promoter Foreign Insurer 12.TATA AIG Indian Promoter Foreign Insurer TATA Group AIG, US SBI CARDIFF, France SAHARA INDIA Ltd. NONE


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OUR STORYThe Kotak Mahindra group was born in 185 as Kotak Capital Management Finance Limited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and that swhen the company changed its name to Kotak Mahindra Finance Limited. 1986 1987 1990 1992 Kotak Mahindra Finance Limited starts the activity of Bill Discouting.Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market. The Au

to Finance division is started. The Investment Banking Division is started. Takes over FICOM, one of India s financial retail marketing networks. Enters the Funds Syndication sector. Brokerage and distribution business incorporated into a separate company Kotak Securities. Investment banking division incorporated intoa separate company - Kotak Mahindra Capital Company. The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes significant stake in Ford Credit Kotak Mahindra Limited, for financingFord vehicles. The launch of Matrix Information Services Limited marks the Group s entry into information distribution. Enters the mutual fund market with thelaunch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business. Kotak Securities launches kotakstreet.com it s on-line broking site. Formal

1992 1995

1996

1998

2000

commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 2003 Matrix sold to Friday Corporation Launches Insurance Services. Kotak Mahindra Finance Limited converts to bank.


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KOTAK MAHINDRA A Lifetime of Value


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Old Mutual Old Mutual was established more than 150 years ago and has developedinto an International services group w focused on asset gathering and asset management. The old mutual Group offers a diverse range of financial services geographics : South Africa, the United States and United Kingdom. The company is listed on the London Stock Exchange capitalization of approximately $6 billon and ismember of the elite FSTS 100 index. In the 2003 rankings of the w corporations Fortune magazine, Old mutual climbed 87 places to position number 366 and was als

o listed 14th company in the world. Old Mutual is the largest financial servicesbusiness in South Africa, through its life insurance, asset management, and insurance operations. The company serves 4 million life insurance policyholders andemploys over 13 000 South Africa operations. In the USA Old Mutual is one of the top ten fixed annuity business offering an array of specialist asset management. 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 the leading private business in the UK. The Old Mutual Group has the ability to cater for variety of consumer segments and offers a comprehensive and in products for all income groups.


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Products: Individual Kotak Term Plan Kotak Preferred Term Plan Kotak Money BackPlan Kotak Child Advantage Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Retirement Income Plan (Unit-linked) KotakSafe Investment Plan Kotak Safe Investment Plan II Kotak Flexi Plan Kotak EasyGrowth Plan Riders Exclusions Under Riders Group Employee Benefits Kotak Term Plan Kotak Credit-Term Grouplan Kotak Complete Cover GroupPlan Kotak Gratuty Grouplan Kotak Superannuation Grouplan Rural Kotak Gramin Bima Yoj.


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RESEARCH METHODOLOGY

INTRODUCTION: Marketing Research is an systematic and objective study of the problems pertaining to the marketing of the goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is appliedto all the phases and aspects. METHOD OF DATA COLLECTION: Primary Data;

The major source for collecting primary data has been the interviews held with retailers, whole sellers, real estate agents, stockiest and few other segment ofmarket. The maximum prospects were visited directly at the shops and interviewedprovided they had time to spare. Some of them interviewed via tele calling andfew were interviewed after taking prior permission and appointment. The information given by them was satisfactory and relevant to the subject. Secondary Data:The sources of secondary data are;

INSTITUTION: Business Magazines News Paper Annual Reports / Company Periodicals

REFERENCES: Internet, Company websites Telephone Directory (BSNL and TATA Indicom) References from company employees Annual Reports / Company Periodicals


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STEP 2 Out of these various segments, the researcher targeted following - Retailers - Whole sellers - Stockiest - Real Estate Agents - Others Note: It was instructed by the company to target the people having net income between 15000 and above. The required data for above segments is to be such, which is helpful to know the background & potential of the prospects. For all that researcher collectedinformation as there, Name Present Age Address Ph No.E-mail-

-

Brief Information about family Personal Goals Retirement Plans Present monthly expenses Existing Investment Avenues


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SAMPLE DESIGN Sample size (165 people)

Retailers (60)

Whole Sellers(43)

Real Estate Agents (16)

Stockiest (16)

Others (30)


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DATA COLLECTION TECHNIQUES: Questionnaire Method Telephone Interview Method

QUESTIONNAIRE METHOD The individual questionnaire of the survey was designed forpopulation between age group of 18 60 years of age who can be the prospect of becoming Kotak Mahindra Life Insurance clients from different areas of PUNE. In total 165 questionnaires were completed who were the samples for research work. SAMPLE SIZE: The sample size of the respondents was taken as 165 considering the

scope and constraints of the study. FIELD WORK: The fieldwork was conducted fora period of 60 days in different commercial areas of PUNE. Interviews were conducted from respondents across segments, above 18 years of age and as per their convenience. So as to contrive representative sample. The interview and presentation mode by researcher were carried for the duration of 20 minutes.


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DATA ANALYSIS AND INTERPRETATION

1. Investment options preferred by respondents.

Sr. No Investment Options No. Of Respondents 1 Insurance 75 2 Fixed Deposit 20 3Post 20 4 PPF 22 5 Mutual Fund 8 6 Shares 5 7 Daily Collection 15 TOTAL 165

Respondents InvestmentsInsurance 75 20 20 15 5 8 22 Fixed Deposit Post PPF Mutual Fund Shares Daily Collection

Out of total respondents, maximum i.e. 75 respondents think Insurance is a saferoption to invest the money. It gives them long-term benefits for not only individual but for the entire family. Thus, people find insurance safe and better option rather than investing in FD, Post, Mutual Funds, Shares etc.


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2. Need of Life Insurance

Yes No Total

135 30 165

Need of Life Insurance

No 18%

Yes 82%

Yes No

Around 82 % of the total samples think that insurance is essential part of the life. But for everyone the need for life insurance has different reasons.18 percent of the people think other options are better than life insurance. Following factors determine the need for life insurance.

Factors to determine need for L.I No. Of respondents Security/Safety 55 Savings15 Long term Investments 35 Tax Saving 30 Total 135

Still majority i.e. 82% people think that insurance is essential. However safetyis major concern when people see insurance as investment.


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3.Awareness about the Insurance Companies.

Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC Aviva Total

No. Of respondents 115 65 95 75 35 105 60 550

Awareness about Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC Aviva

105 35 75

60 115

65 95

Among all the private players in the market ICICI prudential and HDFC Standard Life are among the most popular and known brands in the market. These two brandsare way ahead of the Kotak Mahindra Life Insurance and others. These two Life In

surance companies do effective advertising that made them known brands in the market


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4. Reliable companies among the respondents.

Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC Aviva Total

Respondents 75 20 55 40 15 60 35 300

Reliable Companies as per market ICICI Prudential Kotak Mahindra 35 60 20 40 5575 Bajaj Allianz Tata AIG Max New York Life HDFC Aviva

15

Among all the samples ICICI and HDFC are believed as the most reliable companiesamong all the private companies in the market. Following are the factors that determine why these two companies are preferred and believed by the people.


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Factors determining reliability Brand Name Safety Peer pressure ROI Previous experience Total

Response 45 40 55 70 45 255

Reliability Factors Brand Name 18% 26% 18% Peer pressure 22% 16% ROI Previous experience Safety

People are positive about ICICI and HDFC as reliable companies because of theirReturns, Brand name, and Previous experience and also there is lot of peer pressure among


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5. Present Insurance holders

Yes No Total

145 20 165

Insurance holders

200 100respondent s

Series1

0 Series1

Yes 145

No 20

Insurance Companies LIC ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG M

ax New York Life HDFC SBI Total

Market Share 85 20 15 10 8 17 5 5 80


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Market Share of each company3% 3% 10%

LIC ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC9% 6% 12% 52%

5%

SBI

Among the total market share LIC still has majority share in market, holding 52%of the total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and HDFCareleaders


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6. Total Savings for Life Insurance.

Savings (Rs) 5000-10000 10000-20000 20000-40000 >40000 Total

Respondents 47 75 31 12 165

Savings

Savings In Rupees 80 60 40 20 0 500010000 1000020000 2000040000 >40000

Series1

No Of Clients

Among the total respondents 75 people save anything between Rs. 10000- Rs15000.Thus we can say that still people are doing good amount of savings in insurance.It came to know that all the respondents have some part of their savings in insurance.


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7.Benefits from Life Insurance Policy.

Benefits Child Education Personal Goals Marriage Retirement Savings Total

Responses Of Clients 35 90 45 85 75 330

Benefit Factors

23%

11% 26%

Child Education Personal Goals Marriage Retirement Savings

26%

14%

Personal goals, retirement, savings are the prime benefits for which people usua

lly invest in insurance. The same response was found during the research work. It is good sign for the insurance business, as people perceive insurance for achieving the different goals in the life.


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8. Awareness about Kotak Life Insurance.

Awareness Yes No Total

Response 70 95 165

Brand Aw areness

100 Response 80 60 40 20 0 Yes No Series1

Around 95 respondents i.e. 58% didn t have any idea about Kotak Mahindra Life Insurance. This shows that there is lack of awareness in the market, which need tobe taken care trough advertising.


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9.Awareness about different plans of Kotak Life Insurance.

Kotak Plans Awareness Yes No Total

Response 20 145 165

Awareness of Kotak Plans

200 Respondenes 150 100 50 0 Yes No Response

As there in lack of awareness, maximum respondents don t know about the plans and policies of Kotak Mahindra.This Company needs to promote their different plansthrough effective advertising to make people known.


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10.Future prospects for Kotak.

Interested Prospects Yes No Cant Say Total

Response 25 75 65 165

Response For Kotak

Cant Say 39%

Yes 15%

Yes No Cant Say

No 46%

15 percent of the total respondents said they are interested to buy the policy from Kotak Mahindra Life Insurance. Out of the remaining respondents 46 percent didn t show any interest in Kotak and others were not sure whether to buy the pol

icy from Kotak or not.


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OBSERVATION AND FINDINGS

OSERVATION: The researcher has taken interview of given various segments as Retailers, Whole sellers, Real-Estate Agents, Stockiest and others and came to knowthe facts as follows. RETAILERS: Belief: Retailers contribute to the major portion of any market. Therefore, retailers are good prospects for insurance business. Normally it is believed that they spare very less time with other people other

than their customers. Retailers are quite busy with their customers and other related work. Facts: Though some beliefs are found correct but observation show other side of the curtain i.e. - They were quite generous when they knew that they were getting some information. - They spare good amount of time if one presented the company and himself properly. - Retailers give sufficient information ifthey believe in the work. WHOLE SELLERS Belief : Whole sellers are believed to be among the busiest people in their work. They are actively involved in loading,unloading, dispatching, billing etc. Facts: - Whole sellers are not ready whenwe approached spontaneously to provide some information. - They provide sufficient information if they contacted when they have free time.


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- Most of them were not really comfortable to give any sort of personal and financial information. - These people runs huge business so these are highly potential prospects for any business. REAL ESTATE AGENTS Belief: These people are not so busy as they have selective and limited no. of customers. But many of these agents are out with their clients on their sites thus it becomes really difficultto meet them. They are believed, as they don t entertain others. Facts: - Appointments need to be taken before visiting to their places. - These agents have ver

y good contacts, which means good customer base. So they give bigger and betterclients for insurance business. STOKISTS/COMPANY OUTLETS Belief: These are believed as high-class people and usually prefer to talk with senior executives of any company. Facts: - These people should be given a call before visiting their place, as they don t appreciate direct visits by any people. - Good presentation is required to make them talk for a while. - A highly potential customer if one makes them believe in company by providing detail information regarding company its present and future growth. OTHERS These include house-wife, pensioners etc.


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Belief: They are supposed to have sufficient time and believed as the working persons at home normally influence these people. Facts: - Most of the hose-wife were shy to talk with strangers. - These people are dependent for their decisions.- Not a very good prospect for insurance business.


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FINDINGS:

A): BRAND Knowledge 1. It is found during research that 58 percent were lackingany sort of knowledge and information about Kotak as life insurance provider. 2.From the total 165 respondents, 118 respondents save good amount of money i.e.between Rs 10000 to Rs. 40000 in insurance. Remaining people save anything between Rs 5000 to Rs 10000.Thus it shows as everyone has some part of savings in ins

urance, which is good sign for insurance sector. 3. Majority i.e. 53% respondents have their personal goals and retirement plans as prime concern for buying insurance. 4. Out of 165 samples, 145 respondents i.e. around 88 % of them have insurance cover in different private insurance and government

organizations.

B): PRODUCT Knowledge 1. 42 percent had just heard about Kotak Mahindra but werelacking knowledge about different plans. Out of these 42 percent only 7 percentpeople were insurance holders of Kotak Mahindra Life Insurance. 2. It is foundthat still (LIC) Life Insurance Corporation of India rules when it comes to trust for insurance providers, among private sectors its ICICI Prudential, HDFC Stan

dard Life, Bajaj Allainz are among market leaders. 3. 4. Still 82 percent of samples think insurance is essential for various reasons. Many respondents found saying HDFC and ICICI as being more reliable insurance providers in terms of returns, peer pressure, previous experience than their competitors.


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SUGGESTIONS

1.

More visibility through advertising Media Advertising T.V Channels, Radio Stations, Internet pop-ups, Video Clips

during the intermission in Theaters. Press Advertising Leading News Papers likeTimes of India, Economic Times,

Hindustan Times, Indian Express and few local language newspapers. Campaigning,Rallies, Sponsorships for the local institutional and social events. All these forms of advertising could be effectively used to create brand awareness for Kotak Mahindra Life Insurance. 2. They need to concentrate on service factor by hiring or recruiting professional people for effective presentation and communication skills. 3. They need to open more branches/offices at the major localities indifferent cities and if possible in towns. 4. They should hire a Brand Ambassador/Ambassadress from Cricket or Film industry as people from these two fields influence many people in the society. This would promote the company not only withi

n India but also at global standards. This might create strong awareness and give popularity to the company as millions of people are addressed at one time. 5.They need to search for management trainees whom they can provide proper training who could turn out as future employees of the company. 6. Good amount of incentives and basic salaries should be given to the employees to make them perform better. 7. Proper training facilities should be given to the new employees, whichwill help them to get fair idea about the company and its policies.


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8. Feedback should be taken from the present clients to know whether they are satisfied and if they have any problems regarding the terms and service. This willcertainly help to improve the overall performance of the company. 9. Special schemes like Lucky Draws, Trip to foreign countries; Attractive prizes could be used for promotion. 10. Should develop the plans that are attractive. Also they should develop new plans that are not launched by any other companies to take first launcher advantage.


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ANNEXURE1.Personal detail: Name: Age(Yrs): Phoen No. E-mail Gender: Office Address Residential Address

2.How will you rate following investment options on safety as parameter on scale? a) 0-3 Poor b) 3-7 Average c) 7-10 Good

1.Insurance 3.Post 5.Mutual Fund 7.Daily Collection

2.Fixed Deposit 4.PPF 6.Shares

3.Do you think it is essential to have Life Insurance? a) Yes If Yes, Why? 1.Safety/Security 3.Savings 2.Long term investment 4.Tax saving b) No

4.Which of the following companies are you aware as insurance provider?


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1.ICICI Prudential 3.BAJAJ Allainz 4.Max New York Life 6.AVIVA Life Insurance

2.Kotak Mahindra Life Insurance 4.Tata AIG 5.HDFC Standard Life Insurance

5. Which of the following companies you consider mast reliable to invest? 1.ICICI Prudential 3.BAJAJ Allainz 4.Max New York Life 6.AVIVA Life Insurance If Yes,Why? 1.Brand Name 3.Peer-pressure 5.Previous experience 6.Do you have insurance

cover or policy? 1.Yes If Yes, which? 1.ICICI Prudential 3.BAJAJ Allainz 4.Max New York Life 6.AVIVA Life Insurance 2.Kotak Mahindra Life Insurance 4.Tata AIG 5.HDFC Standard Life Insurance 8.SBI 2.No 2.Safety 4.ROI 2.Kotak Mahindra Life Insurance 4.Tata AIG 5.HDFC Standard Life Insurance

7.Approximately how much money you invest in Life Insurance from your total savings? 1.Rs5000-Rs10000 3.Rs20000-Rs40000 2.Rs10000-Rs20000 4.Rs > 40000


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8.What benefits you avail for investing money in insurance? 1.Child Education 3.Marriage 5. Savings 9.Are you aware about the Kotak Mahindra Life Insurance? 1.Yes 2. No 2.Personal Goals 4. Retirement

10.Are you aware about different plans of Koatk Mahindra such as; 1.Kotak FlexiPlan 2.Kotak Retirement Income Plan 3.Kotak Capital Multiplier Plan 4.Kotak EasyGrowth Plan 5. Kotak Child Advantage Plan 11.In the near future would you be in

terested to buy any policy from Kotak Mahindra Life Insurance? 1. Yes 2. No 3. Cant Say


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CONCLUSION

After all the research work it can be said that Private Insurance companies havegood market potential in the coming years. There is steady growth in all the companies from last 2-3 years. Despite the fact that India boosts saving rates ofaround 25 percent, less than 5 percent is spent on insurance. So there is lot ofopportunities to tap the market provided these companies create trust among the

people. In case of Kotak Mahindra Life Insurance, they need to develop a Brandname in the market, which is only possible with effective advertising and good service. They should promote their products throughout the country and target specific group or class for each plan or policy. This will make them concentrate onall the plans, which means maximum portion of the so market can be covered.


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BIBLIOGRAPHY

Company websites:

www.kotak.com www.kotaklifeinsurance.com

Research Methodology:

C.R. Kothari

Marketing Management: Rajan Saxena


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37665904 market potential of kotak mahindra life insurance by nitin kamble marketing

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