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A PROJECT REPORT ONMARKET POTENTIAL OF KOTAK MAHINDRA LIFE
INSURANCE FORKOTAK MAHINDRA LIFE INSURANCE, LUCKNOWIN PARTIAL
FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION
Supervision Name:-
Submitted By:-Mr.Nanjyoti Singh Karan Kumar
Marketing Head PGDM (3rd sem)
.
KARAN KUMARI E M MANAGEMENT COLLEGE
ANWARI BARABANKI
(2011-2013)PREFACEIt is mandatory for every student of POST
GRADUATE DIPLOMA IN MANAGEMENT from I E M college , Lucknow undergo
project training at organization location with a project on live
problem.
This project has been faith fully experience for me. Now I have
broad idea of functioning of organization and this will be every
helpful for me in the coming days.
KARAN KUMAR(PGDM 3rd Sem )
ACKNOWLEDGEMENTNo 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
otherwise would not have been easy.I am deeply indebted to Mr.Nav
jyot singh, Marketing Head in Lakshya investment and solution who
selected me as a trainee to work with him and guided me throughout
the project. I am grateful and would like to express sincere thanks
to my guide Arun Murya ( Lecturer,SCM Lucknow ) for their valuable
suggestion and guidance throughout this project.
This tremendously helped me in execution of the entire
Project.KARAN KUMAR (PGDM 3rd sem)
DECLARATIONI hereby declare that the project report written and
submitted by me under the guidance of Arun Murya (Lecture , SCM
Lucknow) is my original work. The empirical findings and data
collected in this report are based on the information collected by
me through fieldwork. I have not copied from any report submitted
to any of the University/ Institution.
I understand that any coping is liable to be punishable by
authorities.
Place: Lucknow Date: Signature KARAN KUMAR
TABLE OF CONTENTSTOPIC NAME
PREFACEACKNOWLEDGMENTDECLARATION
EXECUTIVE SUMMARY
CHAPTER-1
INTRODUCTION
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
LIMITATIONS
EXECUTIVE SUMMARYThe 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 the
potential of insurance sector. So specifically the target of the
project is to focus of the high network income groups and retailers
for their investment portion.
Project involved a blend of marketing where we were to interact
we all kinds of 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 if they
insured with kotak group. The main task of project involved
carrying the field work 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 Kotak is to carry the
fieldwork along with campaigning in different localities in
lucknow. Data collected from fieldwork were submitted to the
company for future requirements and also to get back to the
customers. The study undertaken for two months. 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 for
the collection of data and scanning of data. This report shows
detail work on following areas
lucknow road
Ring road
vikas nagar road
kurshi road
indra nagar area
jankipuram road.For this purpose Feedback form was prepared
which gave a broader picture of the people 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 their developments. The
questionnaire contains various aspects like profession, education,
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
and the 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:First step is defining the
objective i.e.Market Potential for Kotak Life Insurance researcher
covered most of the areas, which had been instructed by the
company.
Step 2: Develop research plan:The second step was to develop the
most efficient 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 mainly collected the primary data
through survey & few cases by observations.
iii) Research instrument: Questionnaire is used to collect most
of the primary data.
iv) Sample plan: After deciding on the research approach the
instruments 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 research generally was the most time consuming period. In
case of survey few problems arise likewise some respondents may not
give all the detail information and might not be available and must
be contacted or replaced. Others refused to co-operate and 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 this data 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 are relevant to the objectives.
LAKSHYA INVESTMENT AND SOLUTION:-Lakshya Investment and Solution
is a business to provide insurance and investment products to every
citizen of our country. Company's aim to provide Insurance and will
give golden opportunity, to earn higher income and social welfare
activities to all employees. The dream was pursued with relentless
energy without losing focus on the need to provide perfect
investment solutions for the clients. This drive for offering the
best services and solutions has attracted. The Lakshya Investment
and Solution Group stands tall amongst the myriad opportunities
available in the Indian financial markets. It is the stringent
standards of quality and services adopted by the Group that has
helped it to keep pace with the expeditious changes in the Indian
Economy as well as meet the complexities of the of the Indian
Capital market.SERVICES
LIC
KOTAK MAHINDRA
BAJAJ ALLIANZ
BIRLA SUN LIFE
RELIANCE
HDFC MUTUAL FUNDS
ICICI PRUDETIAL MUTUAL FUND
BARTI AXA LIFE INSURANCE
FUTURE GENERALI
TATA AIA
DLF PRAMERICA LIFE INSURANCE
RELIANCE LIFE INSURANCE
HDFC MUTUAL FUND
STAR PERSOAL AND CARING INSURANCE
CHAPTER -1
INTRODUCTION OF THE STUDYLife 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 one is the
principle-earning member in the family and unfortunate premature
demise, your family can remain financially secured because of the
life that you have purchased.
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 children s 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
level it generates funds for infrastructure building as the cash
flow is constant while the payout is differed, so that the
insurance companies are becoming biggest investors in long
gestation infrastructure development projects and hence have a
great Importance to the developing economylike India. Insurance
sector with an annual growth rate of 15-20% and the largest number
of life insurance policies in force, the potential of the Indian
insurance industry is huge.
Total value of the Indian insurance market (2004-05) is
estimated at Rs. 4500 crores (US$10 billion). According to
government sources, the insurance and banking services contribution
to the country's gross domestic product (GDP) is 7% out of which
the gross premium collection forms a significant part. The life
Insurance industry in India grew by an impressive 36%, with premium
income from new business at Rs. 253.43 crores during the fiscal
year 2004-2005, braving stiff competition from private insurers.
RNCOS s report, Indian Insurance Industry New Avenues for Growth
2012 , finds that the market share of the state behemoth, LIC, has
clocked 21.87% growth in business at Rs.197.86 billion by selling
2.4 billion new policies in 2004-05. But this was still not enough
to arrest the fall in its market share, as private players grew by
129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion
in 2003-04.OBJECTIVE OF THE STUDYThe report discusses the work done
by the trainee KARAN KUMAR, student of
I E M COLLEGE. The purpose of training was to have practical
experience of working in an organization. So the fieldwork was
essential to get exposure 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 Lucknow. It included
extensive market surveys and meetings mainly with the retailers,
whole sellers and other merchants from different regions of
Lucknow. The project is divided in two parts, for the first half is
contains period of 30 days in which I did research, surveys and
meetings with the people to collect data. In the later part I met
various retailer, whole sellers, real estate agents, stockiest and
few others to promote and make them aware about the company.
The survey also helped to provide details regarding various
opportunities and different plans and policies that are coming up
in the company. This was useful information for them to get the
benefits and to know future growth prospects if they join with the
company.
IMPORTANCE OF THE STUDYThe study gives broader picture about who
is the market leader among all the insurance providers. The study
is all about finding out the market potential of Kotak Mahindra
Life Insurance for Lucknow.
Kotak group recently launched Kotak Mahindra Life Insurance
along with old mutual policy as a joint 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 data will be helpful to determine what are the pros &
cons Kotak is facing in the market, how do people perceive Kotak
group as life insurance providers.
SCOPE AND LIMITATIONS OF THE STUDYScope 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 Kotak
Life 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 market leaders in private companies
as well as overall analysis.
Availability of time was also taken into account while deciding
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 Lucknow but
not all the regions of the city. The study limits itself only to
Kotak Mahindra Life Insurance.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGYINTRODUCTION: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
applied to all the phases and aspects.
METHOD OF DATA COLLECTION:-Primary DataThe major source for
collecting primary data has been the interviews held with
retailers, whole sellers, real estate agents, stockiest and few
other segment of market. The maximum prospects were visited
directly at the shops and interviewed provided they had time to
spare. Some of them interviewed via tele calling and few 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
QUESTIONNAIRE METHOD
This method is used to collect general information about the
company like total number of employees viz. agents, sales
executive, management trainees, front line staff etc. Sales
executive provided this information. This information helped to
know the basic knowledge about the company before doing the actual
research.
RESEARCH DESIGN:SAMPLING UNITS:
This combines all those respondents in the market who can be the
future prospects of being a part as an insurer of Kotak Mahindra
Life Insurance. Some of them are retailers, whole sellers, real
estate agents, stockiest and few others from different commercial
areas of LUCKNOW.
As instructed by the company- following are the few
segments.
1)Business- Class
2) AgentsGeneral Insurance Agents
-Postal Agents
-Travel Agents
-Real Estate Agents
3) Service Class
-Professor / Teachers
-Office Staff, Banks Staff
-Government Employees
4)Mutual Fund Agents
5)Tax Consultants
6) Investment Consultants
7) Share Brokers
8) Financial Advisors
9) Chartered Accountants / Company Secretaries
10) Others- House wife , Medical Representatives
QUESTIONNAIRE METHOD
This method is used to collect general information about the
company like total number of employees viz. agents, sales
executive, management trainees, front line staff etc. Sales
executive provided this information. This information helped to
know the basic knowledge about the company before doing the actual
research.
RESEARCH DESIGN:SAMPLING UNITS:
This combines all those respondents in the market who can be the
future prospects of being a part as an insurer of Kotak Mahindra
Life Insurance. Some of them are retailers, whole sellers, real
estate agents, stockiest and few others from different commercial
areas of LUCKNOW.
As instructed by the company- following are the few
segments.
1)Business- Class
2) AgentsGeneral Insurance Agents
-Postal Agents
-Travel Agents
-Real Estate Agents
3) Service Class
-Professor / Teachers
-Office Staff, Banks Staff
-Government Employees
4)Mutual Fund Agents
5)Tax Consultants
6) Investment Consultants
7) Share Brokers
8) Financial Advisors
9) Chartered Accountants / Company Secretaries
10) Others- House wife , Medical Representatives
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 collected information as
there,
NamePresent AgeAddressPh No.- E-mail-
-Brief Information about family
-Personal Goals
-Retirement Plans
-Present monthly expenses
-Existing Investment Avenues
SAMPLE DESIGN Sample size (165 People)
Retailers (60)Whole
Sellers(43)
Realestate (17)
Stockiest (16)Others (30)
TOOLS AND TECHNIQUES
OF
ANALYSIS
DATA COLLECTION TECHNIQUES:-Questionnaire Method
-Telephone Interview MethodQUESTIONNAIRE METHOD
The individual questionnaire of the survey was designed for
population 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 LUCKNOW. 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 for a period of 25 days in different
commercial areas of Lucknow. 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.
CHAPTER-2
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 incurring substantial losses. Some estimate suggests that
private insurers made a combined 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.
-Kotak Mahindra 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 the year 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 others have run up in the first nine months of
FY 06.
The losses itself are not a major concern. 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 to
reap 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 will only 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 initial losses. But many private sector
insurers are struggling to raise the required capital. That s
because the government hasnot yet raised the ceiling for Foreign
Direct Investment (FDI) in insurance companies from 26 % of equity
to 49 % as outlined 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 Insurance Regulatory and Development
Authority (IRDA) 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 increasing capital participation
of international insurers will accelerate the development of 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, disability and pension products is going to increase
up to great level.
AREAS OF OPPORTUNITIES1) 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 allendowenment. 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. ULIP 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, and
outstanding 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 plans and children
plans. By 2026 India will have 179 million people who wear above 60
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.
What Is Needed To Be Explore red ?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, trust and protection from risks in time
of crises, or even protecting from a crises throw 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 and differentiated products and services offerings
to the public and has opened new challenges for insurance
companies. Devising specific strategies to reach out to specific
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 managing a 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 market place 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 of any organization. It will help
to establish what insurers stand for and promise and will
eventually help to give a industry new image. This positioning
helps to give credibility to
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 in the 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 be tough.
Inevitably, this will lead to more complexity, which in turn
necessitates 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 world
where brand has been termed the new religion.
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 Infra-structure. Share of retail
customers to total-92 %
Agency force 15 lakhs
No. Of policies in force 20 crore
Employees: 200,000 HISTORY1912: 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 life and
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 of Parliament, viz. LIC Act,1956,with a capital
contribution ofRs.5 crore from the Government of India.
ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS.
Insurance sector is seeing a strong growth in terms of
penetration, life insurance to premium to GDP has grown from 1.8
percent to 2.3 percent while the per capita premium paid has more
than doubled from Rs 280 to Rs 600.Despite the fact that India
boosts a saving rat of around 25 percent, less than 5 percent is
spent on insurance.
The insurance landscape in India is undergoing major changes.
Close to foreign competition since nationalization in 1956,the life
insurance industry had been protected from competitive
pressures.
Now with the re-opening of the sector, several new players have
entered the scene. Besides, Kotak Mahindra Life Insurance there are
12 other private players working in insurance sector which are as
follows.
1) Amp Sanmar Assurance Company Ltd.
Indian PromoterReliance Group
Foreign InsurerNone
2) Aviva Life Insurance Company Ltd.
Indian Promoter DABUR Foreign InsurerAVIVA,UK
3) Bajaj Allainz Life Insurance Company Ltd.
Indian Promoter BAJAJ Auto. Foreign InsurerALLIANZ, Germany
4) Birla Sun Life Insurance Company.
Indian PromoterADITYA BIRLA Group
Foreign Insurer SUN LIFE, Canada
5) Hdfc Standard Life Insurance Company.
Indian Promoter- HDFC
Foreign InsurerStandard Life, UK
6) Icici Prudential Life Insurance
Indian PromoterICICI Bank
Foreign InsurerPrudential, UK
7) Kotak Mahindra Life Insurance
Indian Promoter- KOTAK Bank
Foreign Insurer- OLD MUTUAL, South Africa.
8) Max New York Life Insurance Company
Indian PromoterMAX India
Foreign InsurerNEW YORK LIFE, US
9) Met Life Insurance Company
Indian PromoterJ & K Bank
Foreign InsurerMET LIFE, US
10) Sahara Life Insurance Company Ltd
Indian Promoter SAHARA INDIA Ltd. Foreign InsurerNONE
11) SBI Life Insurance
Indian PromoterSBI
Foreign InsurerCARDIFF, France
12) Tata AigIndian PromoterTATA GroupForeign InsurerAIG, US
COMPANY PROFILE THE KOTAK MAHINDRA GROUPKotak Mahindra is one of
Indias leading financial institutions, offering complete financial
solutions that encompass every sphere of life. Form commercial
banking of 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 over Rs. 1,800 corer and employs
over 4,400 employees in its various business. With a presence in 82
cities. I India and offices in New York, London, Dubai and
Mauritius, it services a customer base of over 5,00,000.
Kotak Mahindra has international partnerships with Goldman Sachs
(one of the world s largest investment banks and brokerage firms)
and Old Mutual (a large insurance, banking and asset management
conglomerate).
OUR MANAGEMENT FOR LIFE INSURANCE Mr.GaurangShah
(ManagingDirector).
Mr. G Murlidhar (Chief Financial Officer) Mr. Nandip Vaidya
(Vice President - Sales) Mr. Arun Patil (Vice President - Sales
& Management Development) Mr. Eksteen de Waal (Head Sales
Training)
OUR STORYThe Kotak Mahindra group was born in 1985 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 s
when the company changed its name to Kotak Mahindra Finance
Limited.
1986Kotak Mahindra Finance Limited starts the activity of Bill
Discouting.
1987Kotak Mahindra Finance Limited enters the Lease and Hire
Purchase market.
1990The Auto Finance division is started.
1992The Investment Banking Division is started. Takes over
FICOM, one of India s financial retail marketing networks.
1992Enters the Funds Syndication sector.
1995Brokerage and distribution business incorporated into a
separate company Kotak Securities. Investment banking division
incorporated into a separate company - Kotak Mahindra Capital
Company.
1996
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 financing Ford
vehicles. The launch of Matrix Information Services Limited marks
the Group s entry into information distribution.
1998Enters the mutual fund market with the launch of Kotak
Mahindra Asset
Management Company.
2000Kotak Mahindra ties up with Old Mutual plc. for the Life
Insurance Business.
Kotak Securities launches kotakstreet.comit s on-line broking
site. Formal commencement of private equity activity through
setting up of Kotak Mahindra Venture Capital Fund.
2001Matrix sold to Friday Corporation Launches Insurance
Services.
2003Kotak Mahindra Finance Limited converts to bank.
KOTAK MAHINDRA:-A Lifetime of Value
Old MutualOld Mutual was established more than 150 years ago and
has developed into an International services group 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
is member of the elite FSTS 100 index. In the 2003 rankings of the
corporations Fortune magazine, Old mutual climbed 87 places to
position number 366 and was also listed 14th company in the
world.
Old Mutual is the largest financial services business in South
Africa, through its life insurance, asset management, and insurance
operations. The company serves 4 million life insurance policy
holders and employs over 13000 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.
Products:
1) Individual:-Kotak Term Plan
Kotak Preferred Term PlanKotak Money Back Plan Kotak Child
Advantage Plan
Kotak Capital Multiplier Plan
Kotak Retirement Income Plan
Kotak Retirement Income Plan (Unit-linked) Kotak Safe Investment
Plan
Kotak Safe Investment Plan II Kotak Flexi Plan
Kotak Easy Growth Plan
Riders
Exclusions Under RidersGroup :-Employee Benefits
Kotak Term Plan
Kotak Credit-Term Grouplan Kotak Complete Cover GroupPlan Kotak
Gratuty Grouplan
Kotak Superannuation Grou planRural :-
Kotak Gramin Bima Yojna.
CHAPTER-3
DATA ANALYSIDATA ANALYSIS AND INTERPRETATION1. Investment
options preferred by respondents.Sr. NoInvestment OptionsNo. Of
Respondents
1Insurance75
2Fixed Deposit20
3Post20
4PPF22
5Mutual Fund8
6Shares5
7Daily Collection15
TOTAL165
INTERPRETATIONOut of total respondents, maximum i.e. 75
respondents think Insurance is a safer option 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 ,Share
etc.
2. Need of Life InsuranceYes135
No30
Total165
INTERPRETATIONAround 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 determinened forL.INo. Of respondents
Security/Safety55
Savings15
Long term Investments35
Tax Saving30
Total135
Still majority i.e. 82% people think that insurance is
essential. However safety is major concern when people see
insurance as investment.
3.Awareness about the Insurance Companies.Insurance CompaniesNo.
Of respondents
ICICI Prudential115
Kotak Mahindra65
Bajaj Allianz95
Tata AIG75
Max New York Life35
HDFC105
Aviva60
Total550
INTERPRETATION
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 brands are way ahead of the Kotak Mahindra
Life Insurance and others. These two Life Insurance companies do
effective advertising that made them known brands in the market
4. Reliable companies among the respondents.Insurance
CompaniesRespondents
ICICI Prudential75
Kotak Mahindra20
Bajaj Allianz55
Tata AIG40
Max New York Life15
HDFC60
Aviva35
Total300
INTERPRETATION
.Among all the samples ICICI and HDFC are believed as the most
reliable companies among all the private companies in the market.
Following are the factors that determine why these two companies
are preferred and believed by the people.
5. Present Insurance holdersYes145
No20
Total165
PRESENT MARKET SHARE:-Insurance CompaniesMarket Share
LIC85
ICICI Prudential20
Kotak Mahindra15
Bajaj Allianz10
Tata AIG8
Max New York Life17
HDFC5
SBI5
Total 165
INTERPRETATION: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
HDFC are leaders
6. Total Savings for Life Insurance.Savings (Rs)Respondents
5000-1000047
10000-2000075
20000-4000031
>4000012
Total165
INTERPRETATION
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.
7.Benefits from Life Insurance Policy:-BenefitsResponses Of
Clients
Child Education35
Personal Goals90
Marriage45
Retirement85
Savings75
Total330
INTERPRETATION
Personal goals, retirement, savings are the prime benefits for
which people usually 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.
8. Awareness about Kotak Life Insurance.AwarenessResponse
Yes70
No95
Total165
Brand Aw are ne s s100
806040200
Yes No
Series1INTERPRETATION
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 to be taken care trough advertising.
9.Awareness about different plans of Kotak Life Insurance.Kotak
PlansAwareness Response
Yes20
No145
Total165
Awareness of Kotak Plans200150100
Response500Yes NoINTERPRETATION
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 plans through effective advertising to
make people known.
10.Future prospects for Kotak.Interested ProspectsResponse
Yes25
No75
Cant Say65
Total165
INTERPRETATION
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 policy from Kotak or
notOBSERVATION & FINDING
OBSERVATION AND FINDINGSOSERVATION:The researcher has taken
interview of given various segments as Retailers, Whole sellers,
Real-Estate Agents, Stockiest and others and came to know the 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 if they 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 when we approached
spontaneously to provide some information.
- They provide sufficient information if they contacted when
they have free time.
- 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 AGENTSBelief: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 difficult to 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 very good contacts, which means good
customer base. So they give bigger and better clients for insurance
business.
STOKISTS COMPANY OUTLETSBelief: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.
OTHERSThese include house-wife, pensioners etc.
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.
FINDINGS:A): BRAND Knowledge:1.It is found during research that
58 percent were lacking any 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 insurance, 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 insurancecoverindifferentprivateinsuranceandgovernment
organizations.
B): PRODUCT Knowledge:1.42 percent had just heard about Kotak
Mahindra but were lacking knowledge about different plans. Out of
these 42 percent only 7 percent people were insurance holders of
Kotak Mahindra Life Insurance.
2.It is found that still (LIC) Life Insurance Corporation of
India rules when it comes to trust for insurance providers, among
private sectors its ICICI Prudential, HDFC Standard Life, Bajaj
Allainz are among market leaders.
3.Still 82 percent of samples think insurance is essential for
various reasons.
4.Many respondents found saying HDFC and ICICI as being more
reliable insurance providers in terms of returns, peer pressure,
previous experience than their competitors.
CHAPTER-4
SUGGESTIONS & RECOMMENDATIONS1.More visibility through
advertisingMedia Advertising T.V Channels, Radio Stations, Internet
pop-ups, Video Clips during the intermission in Theaters.
Press Advertising-Leading News Papers like Times 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 in different 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
within 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, which will help them to get fair idea about the company
and its policies.
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 will certainly 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.
CHAPTER-5CONCLUSIONAfter all the research work it can be said
that Private Insurance companies have good 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 of
around 25 percent, less than 5 percent is spent on insurance. So
there is lot of opportunities to tap the market provided these
companies create trust among the people.
In case of Kotak Mahindra Life Insurance, they need to develop a
Brand name 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 on all the plans,
which means maximum portion of the so market can be covered.
BIBLOGRAPHYBIBLIOGRAPHYCompany websites:
www.kotak.com www.kotaklifeinsurance.comResearch
Methodology:
C.R. KothariMarketing Management:Rajan Saxena ANNEXURE
ANNEXURE1.Personal detail: Name: Age(Yrs): Phoen No. E-mail
Gender:
Office AddressResidential Address
2.How will you rate following investment options on safety as
parameter on scale?
a) 0-3Poor
b) 3-7 Average c) 7-10 Good
1.Insurance2.Fixed Deposit
3.Post4.PPF
5.Mutual Fund6.Shares
7.Daily Collection
3.Do you think it is essential to have Life Insurance?
a) Yesb) No
If Yes, Why?1.Safety/Security2.Long term investment
3.Savings4.Tax saving
4.Which of the following companies are you aware as insurance
provider?
1.ICICI Prudential2.Kotak Mahindra Life Insurance
3.BAJAJ Allainz4.Tata AIG
4.Max New York Life5.HDFC Standard Life Insurance
6.AVIVA Life Insurance
5. Which of the following companies you consider mast reliable
to invest?
1.ICICI Prudential2.Kotak Mahindra Life Insurance
3.BAJAJ Allainz4.Tata AIG
4.Max New York Life5.HDFC Standard Life Insurance
6.AVIVA Life Insurance
If Yes, Why?1.Brand Name2.Safety
3.Peer-pressure4.ROI
5.Previous experience
6.Do you have insurance cover or policy?
1.Yes2.No
If Yes, which?1.ICICI Prudential2.Kotak Mahindra Life
Insurance
3.BAJAJ Allainz4.Tata AIG
4.Max New York Life5.HDFC Standard Life Insurance
6.AVIVA Life Insurance8.SBI
7.Approximately how much money you invest in Life Insurance from
your total savings?
1.Rs5000-Rs100002.Rs10000-Rs20000
3.Rs20000-Rs400004.Rs > 40000
8.What benefits you avail for investing money in insurance?
1.Child Education2.Personal Goals
3. Marriage4. Retirement
5. Savings
9.Are you aware about the Kotak Mahindra Life Insurance?
1.Yes2. No
10.Are you aware about different plans of Koatk Mahindra such
as;
1.Kotak Flexi Plan
2.Kotak Retirement Income Plan
3.Kotak Capital Multiplier Plan
4.Kotak Easy Growth Plan
5. Kotak Child Advantage Plan
11.In the near future would you be interested to buy any policy
from Kotak Mahindra
Life Insurance?
1. Yes
2. No
3. Cant SaY
Response
Respondenes
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