CHAPTER 1

INTRODUCTION
A student of management gets an opportunity to apply and test the theoretical knowledge which he attains through his academic study, only when he gets acquainted with the functioning of an organization ; either as an employee or as an apprentice/ trainee. This is because novice is able to correlate the theoretical principals with the actual working environment only in such a situation.

With the aforesaid fact in mind, an attempt has been made, observe the working of a manufacturing organization very closely and assess the performance of its different departments / divisions and various systems and procedure installed there in. so a manufacturing concern (ltd company) which is one of the market leaders in its field of operation has been selected for the study. Market potential is the limit approached by market demand on industry marketing expenditure approach infinity for a given marketing environment. A market is a set of all actual and potential buyers for might exist for a particular market offer. The market is the set of consumers who profess a sufficient level of interest in a market.

The issue of market potential seems to be the key in assessing the sustainability challenge of a product/service. This element forms the linchpin to constructing the Eco-space Audit that incorporates the notion of sustainable consumption or end use levels.

It is important to distinguish between products that have full market potential and products/services that are still increasing their market share. A factor 10 improvement of a product that is fully penetrated into the market at a global level (so for 6 billion consumers) indeed leads to a factor 10 reductions in final consumption of resources in an absolute sense. If a product has a low market penetration this is not the case. For the example, think of computers with a penetration level of somewhere around 20-30% in industrialized countries. At the global market level this is probably only 5%.Here it is clear that a factor 10 improvement in this technology will not be sufficient if we accept that in the long term we will be living in a world with 10 billion consumers with (on average !) relatively high levels of free disposable income.

1.1 INDUSTRY PROFILE

Variety is the spice of life, unless you're in the insurance business. Traditionally, the most successful insurance firms generally take on the least risk. However, factors such as deregulation, globalization, the Internet, and the events of September 11 are shaking up the industry.

The life insurance industry (about 60% of worldwide premiums) has changed the most profoundly in the products it sells. Over the last quarter of a century, life insurers such as AXA, ING Group, Nippon Life, and Assicurazioni General, have seen their business shift from life insurance coverage to annuity products. This fundamentally changes the way life insurance firms do business, as they concentrate

on managing investment risk, rather than the mortality risk of an individual. As a result, insurance firms now compete more directly with financial services firms.

The Gramm-Leach-Bliley Act in the US and "Big Bang" financial deregulation in Japan opened the door for banks and insurance firms to combine their businesses. In Europe, global financial services titans already exist, notably German insurance company Allianz (with stakes in Deutsche Bank, HVB Group, and Dresdner Bank), and Swiss bank Credit Suisse , Foreign firms seeking inroads to the US and Japan finds themselves freed from regulatory shackles, too. As regulatory barriers fall, consolidation among insurance groups, particularly nonlife insurers, is on the rise. The top 10 property/casualty companies (including State Farm, Aviva, American International Group, and Zurich Financial Services) already account for almost half of all premiums written. A dwindling number of local firms are left to fight for the remaining scraps of market share.

The Internet has changed the way insurers are doing business. Companies are continuing to offer more products via the virtual highway, thus increasing the competitive marketplace. With the insurance markets in the US and Japan becoming saturated, growth in other markets (particularly South America) is imperative for a company's success, as well. The attacks on the World Trade Center have changed the face of the insurance industry; issues such as asbestos claims and liability suits have taken a backseat to the mad scramble of how to cover terrorism. As a result of September 11, and to a lesser degree the Enron scandal, premiums are rising and underwriting standards are tightening. A slew of new ventures have started up (primarily IqBermuda), as insurers see the possibility of lucrative business. 3

In 2004 the insurance industry came under scrutiny when New York Attorney General Eliot Spitzer sued Marsh & McLennan, the world's largest insurance brokerage, for price fixing and for accepting kickbacks. As a result, Jeffrey Greenberg was forced to resign as CEO of Marsh & McLennan, along with five other executives who admitted to rigging bids. The probes continue as Spitzer and other officials look to clean up the industry.

1.2 About Life Insurance

There are three parties in a life insurance transaction: the insurer, the insured, and the owner of the policy (policyholder), although the owner and the insured are often the same person. Another important person involved in a life insurance policy is the beneficiary. The beneficiary is the person or persons who will receive the policy proceed upon the death of the insured.

Life insurance may be divided into two basic classes. They are I. Term II. permanent

Term life insurance provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value.

Permanent life insurance is life insurance that remains in force until the policy matures, unless the owner fails to pay the premium when due.

Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy.

Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. A universal life policy includes a cash account. Premiums increase the cash account

COMPANY PROFILE Bajaj Allianz Life Insurance Co. Ltd is a joint venture between two leading conglomerates Allianz AG, one of the worlds largest insurance companies and Bajaj Auto, one of the biggest 2 and 3 wheeler manufactures in the world. We at Allianz Bajaj realize that you seek an insurer who can trust your hard earned money with Allianz AG with over 110 years of financial experience in over 70 countries and Bajaj Auto trusted for over 55 years in the Indian Market, together are committed to offer you financial solutions that provide all the security you need for your family and yourself.

ALLIANZ GROUP Allianz Group is one of the worlds leading insurers and financial services providers. Founded in 1890 in Beslin, Allianz is now present in over 70 countries with almost 174000 employees. At the top of the international group is the holding company Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers world wide with a comprehensive range of services in the areas of property and Casualty Insurance, Life and Health Insurance, Asset Management and Banking.

ALLIANZ AG A GLOBAL FINANCIAL POWER HOUSE

World wide 2nd by gross written premiums Rs. 4,46,654 cr. 12th largest corporation in the world 49.8% of global business from Life Insurance Established in 1890, 110 years of Insurance expertise To countries, 173,750 employees world wide

BAJAJ GROUP Bajaj Auto Ltd the flagship company of the Rs.8000 crore Bajaj group is the largest manufacturer of two wheelers and three wheelers in India and one of the largest in the world. A STRONG INDIAN BRAND HAMARA BAJAJ One of the largest 2 & 3 wheeler manufacturers in the world 21 million + vehicles on the road across the globe managing funds of over Rs. 4000 cr. Rs. 4,744 cr. Turnover & profits of 538 cr in 2002 03

It has joined hands with Allianz to provide the Indian consumers with a distinct option in terms of Life Insurance products.

BAJAJ ALLIANZ LIFE INSURANCE Is the fastest growing private life insurance company in India Currently has over 400000 satisfied customers One of Indians leading private life insurance companies We have customer care centers in 155 cities with 30000 Insurance Consultant providing the finest customer service SHARED VISION A house hold name in India, teams up with a global conglomerate of Bajaj Auto Ltd, the flagship company of the Rs.8000 crore Bajaj group is the largest manufacturer of two wheelers and three wheelers in India and one of the largest in the world. A household name in India, Bajaj Auto has a strong brand image and brand loyalty synonymous with quality and customer focus. With over 15000 employees the company is a Rs.4000 crore auto gaint, is the largest 2/3 wheeler manufacturer in India. It is the 4th largest in the world. AAA rated by Crisit, Bajaj Auto has been in operation for over 55 years. As a promoter of Bajaj Alliance Life Insurance Co. Ltd, Bajaj Auto has the following to offer. A strong brand equity A good market reputation as a world class organization A 10 million strong base of retail consumers using Bajaj products An extensive distribution system

INDIAN OPERATIONS
Growing at a break neck pace with a strong pan Indian presence Bajaj Allianz has emerged as a strong player in India. Bajaj Allianz Life Insurance Company Limited is a joint venture between two leading conglomerates Allianz AG and Bajaj Auto Limited characterized by global presence with a focus and driven by customer, orientation to establish high earnings potential and financial strength, Bajaj Allianz Life Insurance Company Limited was incorporated on 14th March 2001. the company received the (IRDA) Insurance Regulatory and Development Authority Certificate of Registration (r3) NO 116 on 3rd August 2001 to conduct life Insurance business in India.

TIE UP WITH BANKS

Pioneers of Bancassurance in India:- Having pioneered the phenomenon, Banc assurance is one of our core business strategies. Two of the strong Banc assurance tie ups are :-

Standard chartered Bank Syndicate Bank

PRODUCT PROFILE

Uncertainty is the only certainty in life. If the breadwinner of a family dies, the income to the family ceases. If the breadwinner does not die, but retires from service, even then the regular income to the family ceases. Thus life insurance has to cover both the contingencies of death or survival. They vary according to contingency

provided for according to age, according to family size etc. Each plan of insurance provides for a kind of need.

Family :- Protection of the interests of the family against loss of income due to death of the bread winners. Children:Old Age:Provision for education, marriages and start in life Post retirement income for self and family / dependents

Special needs:- Disability, accidents, expenses for treatment of diseases, loss of income due to sickness etc. These are some basic elements in a life insurance products. Risk cover : Benefit payable in the event of death Saving : Benefit payable in the event of survival

PRODUCT OF BAJAJ ALLIANZ

a) ALLIANZ BAJAJ INVEST GAIN This is a participating endowment plan (with regular and limited premium payment term options) with minimum guaranteed benefits at maturity or death or maturity benefit will be the sum assured. Besides the policy holder can opt for riders like family income benefit, Comprehensive Accident Protection (comprising Accident Death Benefit, Accidental Permanent partial and Total disbility Benefit, waives of premium Benefit) critical illness Benefits and Hospital cash Benefit with the regular terms.

Eligibility Conditions and Limits CONDITIONS Minimum Age at Entry INVEST GAIN ECONOMY 0 (risk commences at age 7) Minimum Age at Entry 65 50 Minimum Age at Maturity 70 70 Minimum Term 5 Maximum Term 40 Minimum Sum Assured 50000 Maximum Sum Assured No limit Minimum Premium Rest 5000 for Annual mode, Rs. 25000 for H yearly, Rs. Limits Premium payment Term 2000 for quarterly, Rs. 700 for monthly. Equal to policy term or limited as per table INVEST GAIN GOLD/DIAMOND/PLATINUM 18

These are total of 4 product packages available in INVEST GAIN PACKAGE Invest Gain Economy Invest Gain Gold Invest Gain Diamond Invest Gain Platinum IN BUILT BENEFITS Base Package Base Package = In built Term cover (Additional Death Benefits) Base Package + In built DoubleTerm cover (Additional Death Benefits) Base Package + In built TripleTerm cover

The customer may select any 1, 2, 3 or 4 or any combination or all of the following additional benefits with any of the packages. 1. Family Income Benefits 2. Comprehensive Accident Protection

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3. Critical Illness Benefits 4. Hospital Cash Benefits Of the above 4 benefits only Family income benefit will be available for limited premium payment terms.

7 at the time of death, then the premiums paid are refunded. b) ALLIANZ BAJAJ CASH GAIN This regular premium payment participating money backs plan with minimum guaranteed benefits at survival (through regular cash benefit during the policy term including maturity.). The guaranteed minimum death benefits will be the Sum Assured which will be the irrespective of the cash benefits already paid.

Eligibility Conditions and Limits Minimum and maximum age at entry for all the additional benefits viz. Family Income Benefit (FIB), Comprehensive Accident Protection (CAP), Critical illness and Hospital cash is 18 years and 50 years. Comprehensive Accident Protection, Critical illness and hospital cash coverage expires at attained age 65 or at maturity whichever is earlier Issue ages 12 to 55 attained at entry, depending on the package

There are a total of 4-product package available in cash gain. Package Cash Gain Economy Cash Gain Gold Cash Gain Diamond Cash Gain Platinum In built Benefits Base Package Base Package = In built Term cover Base Package + In built DoubleTerm cover Base Package + In built Triple Term 11

cover Death Benefit In case of death of maturity after 15 full policy years, the company may pay terminal bonus for in force policies. Survival / Maturity Benefit In case of survival on to maturity all declared reversionary bonuses plus interim bonus plus a possible terminal bonus is paid on Maturity in addition to 50% of the sum assumed. Premium Discount Premium Discount will be offered for all policies where the sum assured exceeds the minimum sum assured by at least 10000. Then discount is Rs. 96 for each full Rs. 10000 by which the sum assured exceeds the minimum sum assured Rs. 50000.

c) ALLIANZ BAJAJ CHILD GAIN This is a participating endowment plan with minimum guaranteed benefits payable on the child attaining specific ages after the premium payment term but during the policy term that ends with the final payouts. The main life assured (LA) is the child with the policy holder (parent / legal guardian) being the counter life assured (CLA).

Eligibility condition and limits. The premium payment term is to be ascertained as the period from the date of commencement till the policy anniversary following the birthday when the child attain 18 years old age. The policy term will be between 11 to 24 years for the age of child = 24 at maturity and 8 to 21 for age of child = 21 at maturity. The policy term is to be ascertained the period from the date of the commencement till the due date of the last guaranteed payout as opted. 12

The policy term age of policyholder (CLA) should not exceed 70 for this plan. There are total of 4 product packages available in child gain.

Allianz Bajaj child gain 21 Allianz Bajaj child gain 24 Allianz Bajaj child gain 21 Plus Allianz Bajaj child gain 24 Plus Start of life benefit

Base package + premium benefit + family income benefit. Base package + premium wavier benefit + family income benefit. Base package + premium wavier benefit + family income benefit+ start of Life Benefit. Base package + premium wavier benefit + family income benefit+ start of Life Benefit

For a nominal amount an additional sum assured subject to a maximum limit of Rs.10 lacs per policy will become payable to enable the child start. His/her professional life smoothly, in case of an unfortunate death or accidental permanent total disability of the policy holder (CLA) during the term of the policy.

Death Policy On death of the Counter Life Assured (CLA) All future premiums shall be waived Family Income Benefit shall commence @ 1% of sum assured per month. Guarnteed payout shall continue as per schedule.

ALLIANZ BAJAJ SWARNA VISHRANTI This is a participating retirement capital building plan with life cover, to help people to save and plan for their retirement. This is specially useful for self-employed people, businessman and employees who do not have any pension cover to provide them with 13

a regular income post retirement. This plan also acts as an important supplement to the retirement income for salaried people. The product is also attractive as it offers tax relief under section 80 CCC(1) up to a ceiling of Rs.10,000/- per annum. It is a regular premium paying fixed different period plan, which will provide annually on reaching a predetermined age (age at vesting) at the end of the deferment period. Eligibility conditions and Limits Issue age 18 up to 50 for all the additional benefits via Term Cover Benefit, Family Income Benefit FIB), Comprehensive accident protection, critical illness and hospital cash. Comprehensive accident protection, critical illness and hospital cash coverage exoires at vesting age or attained age 65 which ever is earlier.

1 2 3 4 5 6 7 8 9

Eligibility Minimum Sum Assured Maximum Sum Assured Minimum age at entry Maximum age at entry Minimum Deferment Period Maximum Deferment period Minimum age at vesting Maximum age at vesting Minimum Premium

Limits Rs.50,000/- for Regular Premium No Limit 18 65 5 40 45 70 Rs.5000/- for the Annual Mode Rs.2500/- for half years Rs.2000/- for quarterly and Rs.700/- for monthly mode.

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Death Benefit In case of death during the deferment period, the spouse will have the following options: (a) Receive immediately the sum assured and accrued bonuses in one lump sum or (b) Purchase an immediate annuity policy from Allianz Bajaj or any other company for the full amount or a part of sum assured and Assured Bonuses. ALLIANZ BAJAJ RISK CARE This is non-profit level premium and single premium term Insurance plan providing basically death cover equal to the sum assured. There are no survivator maturity benefits. Besides the policies other than the single premium paln, the policy holder can opt for additional benefits like- critical illness benefits and hospital cash benefit and accidental death benefits, accidental permanent total/ partial disability benefit. Eligibility conditions and limits. Policy term can be selected for all terms between 5 to 40 years. Ages 18 to 50 attained at entry for all packages. There are two premium payment options available: Regular premium and single premium. For regular premium payment option, the premium payment term is equal to the policy term. Coverage provided till maturity for all additional benefits.

Eligibility Minimum age at entry Maximum age at entry Maximum age at Maturity Minimum term 15

Conditions 18 50 65 5

Maximum term Minimum sum assured (Rs) Maximum sum assured (Rs) Minimum Premium (Rs)

40 Rs.100,000/Rs.10,00,000/800/- for yearly and 600/- for yearly. Minimum single premium Rs.1600/-

Death Benefit The death benefit will be the sum assured. The policy terminates on death of the policy holder. Survival/ Maturity benefit This is pure term insurance plan. There are no survival/maturity benefits payable under this plan. Surrender value Not available under Allianz Bajaj risk care Loans No loans are available in Allianz Bajaj risk care. Premium discount Premium discount will be offered for all policies where the sum assured exceeds the minimum sum assured of Rs.100,000/- by at least Rs.10,000/Flexibility In Coverage At each policy anniversary the policy holder has the option to adjust his coverage level of the additional benefit combinations. Additional benefit combination 2 (Critical illness Benefit and Hospital cash Benefit) can be taken at issue only. These benefits can not be included subsequently at any policy anniversary.

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Compensation Structure of Sales Manage for FY 2006-07 Keeping the contrasting views received on salary increases and decreases of Sales Managers in mind, it has been decided to rationalize the salary structure and redesignate the STMs. This does away with the disparity in earnings at Satellite and Hub and brings in uniformity across the country. Now there will be flexibility given in both Hubs and Satellites to appoint Sales Manager at Grade 1,2 or 3 which will be totally at the discretion of the Branch Managers and Chief Managers and keeping in view their past experience and last CTC drawn. However, in Metros i.e. Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Banglore, Pune and Ahmedabad, Sales Managers can be appointed at Grade 4 also with Rs. 22000 monthly CTC. Any STM whose level is intervening in the current grade, fitment for those STMs will be done in the next level and the remaining STMs will only be re-designated as per the table given below.

All the Sr. STMs with Rs. 22000 monthly CTC will be placed in the Executive Sales Manager cadre with Rs. 24000 monthly CTC with effect from 1st April 2006. There will be uniform 6 Grades of Sales Managers in both Hubs and Satellites, their grades, salaries and targets will be as per the below given table. This Compensation and targets will be applicable from 1st April 2006.

The movement of Sales Manager from one grade to next higher grade is subject to his achievement of the norms within 6 months. If he doesnt achieve norms in 6 months, then he would have to achieve the norms for 1 year to be eligible for promotion to next higher grade. However, if he doesnt qualify the norms for 1 year, then he will have to achieve the next cycle of 6 months norms, to be promoted to next higher grade. 17

If any Sales manager achieves the norms in less than 6 months, he doesnt have to wait for 6 months to be promoted to next grade, instead he will be promoted in next higher grade from the 1st of the following month in which he attains the norms. Therefore, there will not be any double promotion.

New Sales Manager Levels and their Respective Targets

Promotion Norms if Promotion Target is norms for achieved 1st CTC monthly Revised Current Designati Designation on s) (Rs.) Rated FYP 1year, then is Minimum (Rs.) Rated FYP is (Rs.) Junior Junior Sales Trainee STM Grade2 Satellite STM Manager Assistant Sales Grade 2 Grade 1 =10000+2000 15000 =12000+3000 18 9 18 5,00,000 10,00,000 12000 6 12 4,00,000 7,50,000 Grades Reimbursement Ics (Including d No of Size Minimum more than Qualifie Unit Then but not 6months, 6months After

Manager Grade1 Satellite STM Probationary STM Senior 22000 Senior STM Sales Manager Executive 24000 Sales Manager Mentor 28000 Sales Manager Grade 6 =24000+4000 Norms qualify as per the Deputy Area Managers Grade 5 =20000+4000 To get further promotion, he will have to 12 26 10,00,000 19,00,000 Grade 4 =18000+4000 12 24 8,50,000 16,00,000 Sales Grade 3 Manager =15000+4000 19000 11 22 6,50,000 12,50,000

There is no change in the incentive structure of the Sales Manager and the same will continue to apply for the FY 2006-07. Reimbursement for Sales Manager will be against Mobile and Conveyance bills (local Conveyance) which should be claimed together. (Separate Circular Follows). The concept of CCA is done away with. In case of any ambiguity in interpretation, the interpretation of HOS will be final and binding. The salary, grades and target structure of sales manager is subject to change at any time at the discretion of management.

Commission to IC

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1)

FOR CHILD GAIN / RISK CARE / TERM CARE and above)

40% total (15years

Premium Year 1 payment term 15 years or more 10 to 14 years 5 to 9 years 25% 20% 10% Year 2 7.5% 7.5% 5% Year 3 7.5% 7.5% 5% Year 4+ 5% 5% 5%

In addition an additional first year commission of up to 60% of the first commission will be payable to the agents

The commission rate for single premium is 2%.

2)

CASH GAIN Premium

40% total % of 2nd and 3rd % of Subsequent

% of First Year

Payment Term Premium year premium years premium 15,20,25,30 25 7.5 5 In addition an additional first year commission of up to 60% of the first year commission will be payable to the agents.

3)

LIFTIME CARE Premium

Year 1

40% TOTAL (15years and above) Year 2 7.5% 7.5% Year 3 7.5% 7.5% Year 4+ 5% 5%

payment term 15 years or more 10 to 14 years

25% 20%

In addition an additional first year commission of up to 60% of the first year commission will be payable to the agents.

1.5 SCOPE OF STUDY

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To acquire an overall idea of the organization and to know how theoretical aspects of management are applied in real functioning of organization. It also includes a detailed study on the analysis of the past performance and future trends of the company. This study will give an insight into understanding the perception of Insurance Agents about the product & Services of Bajaj allianz Standard Life Insurance Also it helps to acquire knowledge about the organization structure and its activities.

The study will also help the company to understand about the situation on the following areas. The competitors of Bajaj allianz Standard Life Insurance in kollam Whether Bajaj allianz Standard Life Insurance Products are successful or not.

1.6 MARKET POTTENTIALITY- AN OVERVIEW

MARKET POTTENTIALITY
Market potential is the limit approached by market demand on industry marketing expenditure approach infinity for a given marketing environment. A market is a set of all actual and potential buyers for might exist for a particular market offer. The market is the set of consumers who profess a sufficient level of interest in a market. The issue of market potential seems to be the key in assessing the

sustainability challenge of a product/service. This element forms the linchpin to constructing the Eco-space Audit that incorporates the notion of sustainable consumption or end use levels.

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Customer needs today are increasingly complex, even as product life cycles get Increasingly shorter. In the resulting pressure to accelerate type to market, it's critical, however, that companies not lose sight of the basics-develop products that customers want when they want them. This way, success in the market place increases as product s enjoy higher-than-average market acceptance.

Many companies in fact have started to focus on more research to analyse the market". They have found that they have to reduce the cost of product and services to penetrate into the market. The need to gain market acceptance is very important in the current scenario. Yet, most of the time companies are not doing this. The answer starts with recognizing that no matter how good your research is, a new product will always have a gap in potential. This is the gap between your knowledge and what the customer wants after launch. What is the best way to get from "almost there'" to "right on target'' for market acceptance? One such tool is the PDCA, cycle. W.Edwards Doming developed this management tool in the 1940s and 1950s as a strategy to gain more advantage in the market. You can use it to get to market acceptance more quickly. This helps to overcome the competition also. The strategy is 1. Plan to do something 2. Do it 3. Check the results 4. Adapt

The PDCA cycle has two major advantages 22

(1). The Process never ends, and therefore, (2) small but quick improvements are perfectly acceptable.

HOW WE CAN PENETRATE INTO THE MARKET Companys characteristically develop their own strategies for reducing perceived risk. These risk-reduction strategies enable them to act with increased confidence when introducing new product and services, even though the consequences of such decisions remain somewhat uncertain. This is mainly with the part related with customers. While introducing the new product and services the company will deals with the following factors. They are Information about the products and services. Creating Brand Loyalty. Creating Brand Image. How they are different from others. Information about product Quality. Security and belief about the service / product. Customer Satisfaction. Market Acceptance. CORPORATE IDENTITY, BRAND IDENTIYT AND BRAND IMAGE It is important to distinguish between corporate identity, brand identity and brand image. Corporate identity is concerned with the visual aspects of a company's presence. When companies undertake corporate identity exercises, thy are usually modernizing their visual image in terms logo, design, and collaterals. Such efforts do not normally entail a change in brand values so that the heart of the brand

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remains the same -what it stands for, or its personality. Unfortunately, many companies do not realize this fallacy, as they are sometimes led to believe by agencies and consultancy "companies that the visual changes will change the brand image. But changes to logos, sign age and even outlet design do not always change consumer perceptions of quality, service, and the intangible associations that come to the fore when the brand name is seen or head. The best that such changes can do is to reassure consumers that the company is concerned about how it looks. Brands do have to maintain a modern look, and the visual identity needs to change over time. But the key to successfully affecting a new look is evolution, not revolution. Totally changing the brand visuals can give rise to consumer concerns about changes of ownership, or possible changes in brand values, or even unjustified extravagance. If there is a strong brand

personality to which consumers are attracted, then substantial changes may destroy emotional attachments to the brand. People do not expected or like wild swings in the personality behavior of other people, and thy are just as concerned when the brands to which they have grown used exhibit similar "schizophrenic" changes On the other hand, if the intention is to substantially improve the standing of the brand, then corporate identity changes can be accompanied by widespread changes to organizational culture, quality and service standards. If done well, and if consumers experience a great new or improved experience, then the changes will, over the longer term, have a corresponding positive effect oil brand image. If you are spending a vast amount of money on corporate identity, it is as well to remember this. Brand identity is the total preposition that a company makes to consumers-the promise it makes. It may consist of features and attributes, benefits, performance, quality, service support, and the values that the brand possesses. The 24

brand can be viewed as a product, a personality, a set of values, and a position it occupies in people's minds. Brand identity is everything the company wants the brand to be seen as. Brand image, on the other hand, is the totality of consumer perceptions about the brand, or how they see it, which may not coincide with the brand identity Companies have to work hard on the consumer experience to make sure that what customers see and think is what they want them to. Now leading-edge companies are becoming extremely sophisticated at measuring what customer's value, and correlating these data with their behavior and their projected future intentions. The results ate pinpointed marketing strategies that win, and win big. Recent empirical research shows that a business's customer value position, relative to competitors, has a dramatic impact on its market-share gain and profitability. Businesses that achieve a superior customer value position average profit margins on sales three times greater than businesses that are pushed into an inferior customer value position.

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CHAPTER II

RESEARCH METHODOLOGY
INTRODUCTION
An organized, systematic, data-based, critical, objective, scientific inquiry or investigations into a specific problems undertaken with the purpose of finding answers or solutions to it. In essence, research provides the needed informations that guide to make inform the decisions to successfully deal with the problems. It comprises of defining and redefining of problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data making alterations and reaching conclusion.

2.1 OBJECTIVES OF STUDY Primary Objective

The primary objective of the study is to determine the market potential of the Bajaj allianz Standard Life Insurance among

Secondary Objectives
The secondary objectives of the study are a) To study the comparative analysis with the competitors. b) To find out how far the Bajaj allianz Standard Life Insurance Products and Services has achieved its objective of capturing attention and creating corporate image. c) To know the effectiveness of sales promotional activities. d) To determine the suitable Marketing channel. e) To know the perception of Agents about the Insurance Products. f) To suggest necessary measures to improve the services

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2.2 METHODOLOGY RESEARCH DESIGN

The research was carried out to find out the Market Pottential of Bajaj allianz Standard Life Insurance. Descriptive type of research was adopted to describe the state of affairs, as it exists at present. It helps to portray accurately the characteristics of a particular group of individuals. SIGNIFICANTS OF PROJECT Bajaj allianz wanted to know the Thus it required a detailed analysis of the market potential of Life Insurance. market regarding the agents

expectation, customer perception,

customer awareness of the product, customer

preferences, customer satisfaction etc. The project was carried out as a live project by giving at most importance to the feasibility. The market analysis was conducted at kollam, a big business city of Kerala, which thus could give a near perfect view of the market. The project analyzed different aspects of market research, agents expectation, customer satisfaction, consumer awareness of the product and its features, etc. The project resulted in much benefit for Bajaj allianz such as

To Know about the Competitors. Consumers perception about the product and services. Consumer awareness of the product and its features were studied, Satisfaction level of customers and agents were studied.

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PROBLEM IDENTIFICATION The company wanted to analyse the market for life insurance, Competitors details, and customer satisfaction about Bajaj allianz.

PROBLEM DEFINITION To analyse the market of Bajaj allianz product and services, one has to analyse the perception of the agents and customers about the product, awareness of the product and its features, the satisfaction level of the existing etc. It should also analyse the factors that influence the buying behaviour of the customer.

THE MARKETING RESEARCH PROCESS Marketing research may be defined as a systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Effective marketing research involves the five steps shown below:

Step 1: Define the Problem and Research Objectives Management must not define a problem too broadly or too narrowly. Step 2: Develop the Research Plan The second stage of marketing research calls for developing the most efficient plan for gathering the needed information. Designing a research plan calls for decisions of data sources, research approaches, research instruments, sampling plan and contact methods. Step 3: Collect the Information: The data collection phase of marketing research is generally the most expensive and the most prone to error. In the case of surveys, four major problems 28

arise. Some respondents will not be at home and must be recontacted or replaced. Other respondents will refuse to cooperate. Still others will give biased or dishonest answers. Finally, some interviewers will be biased or dishonest. Step 4 : Analyze the Information: The next-to-last step in the marketing research process is to extract findings from the collected data. The researcher tabulated the data and develops frequency distributions. Averages and measures of dispersion are computed for the major variables. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings. One of the tools for analyzing the collected data is through hypothesis testing.

Step 5: Present the findings As the last step the researcher presents the findings to the relevant parties. The researcher should present major findings data relevant lo major marketing decisions facing management.

2.3 SOURCES OF DATA

The researcher can gather secondary data, primary data of both. Secondary data are that were collected for another purpose and already exist somewhere. Primary data are data gathered for specific purpose or for a specific research project. A customer or prospect database is organized collection of comprehensive data about individual customer, prospects of suspects that is current, accessible and actionable for marketing purpose such as lead generation, lead qualification, sale of product or service, or maintenance of customer relationship.

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COLLECTION OF DATA The researcher has taken efforts to study the market through data collection. Data has been collected through both primary and secondary sources.

Primary Sources The researcher has prepared questionnaires to collect market views about the product. Response was encouraging as most people were willing to supply information through questionnaires. The questions were willing to supply information through questionnaires. The questions were adapted to the status and education level of persons thus avoiding inconvenience and misinterpretation. The questionnaires were used to collect information from Kollam city. It took quite a considerable amount of time to collect information through these sources. Questionnaires A questionnaire consists of a set of question presented to respondents for their answers. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data: Questionnaire need to be carefully

developed, tested, and debugged before they are administered on a large scale. In preparing a questionnaire, the professional marketing researcher carefully chooses the questions and their from, wording and sequence. The form of the question asked can influence the response, Marketing researchers distinguish between closed-end and open-end questions. Closed-end questions specify all the possible answers. Open-end questions allow respondents to answer in their own words. Closed-end questions provide answers that are easier to interpret and tabulate. Open-end questions often reveal more because they do not constrain respondent's answers. One of the tools used for testing hypothesis is Chi-Square test, which is as follows. 30

Secondary Data Secondary sources have been depended upon to collect information, which the researcher finds practicable to collect as first hand information. Past data collected by others, website of the company, brochures, Internet etc were the sources has been very useful in data analysis. The data collected from both primary and secondary sources have been used productively by the researcher for data analysis, which in turn helped in bringing out excellent results. Primary data are collected in five ways: groups, surveys, behavioral data and experiments. observation, focus

Observational Research
Fresh can be gathered by observing relevant actors and settings Focus Group Researcher A focus group is gathering of 6 to 10 people who are invited to spend a few hours with a skill moderator to discuss a product, service, organization or other marketing entity. The moderator needs to objective, knowledgeable on the issue and skilled in group dynamics. Survey Research Surveys .are best suited for descriptive research. ! Companies undertake surveys to learn about people's knowledge, believes, preferences and satisfaction and to measure these magnitudes in the general population. Behavioral Data Customer leave traces of their purchasing behavior in store scanning data, catalog, purchase records, and customer database. Much can be learned by analyzing

31

this data. Customer's actual purchases reflect revealed preferences and often are more reliable than statements they offer to market researchers. Experimental Research The most scientifically valid research is experimental research. The purpose of experimental research is to capture cause and affect relationship by eliminating competing explanations of observed findings.

Type of study
Descriptive study has been adopted to collect the data from the Insurance Agents to know their opinion about Bajaj allianz Standard Life Insurance. The study was focused on understanding the market potential of Bajaj allianz Standard Life Insurance Products and Services among Insurance Agents In Kollam City. The sample size was hundred and the target of the population was Insurance Agents in Kollam.

Research Approach
Survey was done in and around of Kollam city. The main places includes Pattom, Thampanoor, Vellayambalam, Vazhuthakadu, etc..

2.4 SAMPLING DESIGN Sample unit

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

Sample Size
Samples from hundred Agents in and around Kollam city has been selected for the study.

Sampling Procedure
32

Simple random sampling technique is used for collecting data from the population.

Research Instrument.
Structured questionnaire was used to collect the information from Insurance Agents. Questionnaire is a mixture of open ended, closed ended and ranking scale.

2.5 TOOLS USED FOR ANALYSIS

The tools used for the analysis are Percentage analysis, which is a common tool used in which data are reduced to standard form with equal base to 100, which helps relative comparison. Percentage analysis = Chi-Square Test The Chi-Square test is an important test amongst the several tests of significance developed by. statisticians. Chi-Square symbolically is a statistical measure used in the context of sampling analysis for comparing a variance to theoretical variance. As a non-parametric test, it "can be used to determine if categorical data shows dependency or the two classifications are independent. It can be also used to make comparisons between theoretical populations and actual data when categories are used". The test is, in fact, a technique through the use of which it is possible for all researchers to (1) test the goodness of fit (2) test the significance of association between two attributes, and (3) test the homogeneity or the significance of population variance. No. of respondents 100

33

Conditions for the Application of Chi-square Test. The following conditions would be satisfied before chi-square test can be applied: 1. Observations receded and used are collected on a random basis: 2. All the items in the sample must be independent: 3. The overall number of items must also be reasonably large. . It should normally be at least 50, howsoever small the number of groups maybe.

Step involved in Applying Chi-square Test The various steps involved are as follows:

1. First of all calculate the expected frequencies on the basis of given hypothesis or on the basis of null hypothesis. Usually the expected frequency for my given cell is worked out as under: EF = Row total for the row of that cell x Column total for the column of that cell

Grand Total

EF = Expected Frequency of the cell 2. Obtain the difference between observed and expected frequencies and find out the squares of such differences i.e., calculate (Oij-Ejj)2 3. Divide the quantity (Ojj-Ejj)2 obtained as stated above by the corresponding frequencies to get (Ojj-Ejj)2/Eij and this should be done for all the cells frequencies or the group frequencies. 34

4. Find the summation of (Ojj-Ejj)2/Eij values or what we call this is the required chi-square value. The Chi-Square value obtained as such should be compared with relevant table value of chi-square and then influence be drawn as stated above.

2.6 LIMITATIONS OF STUDY

All the datas collected cannot be said as fully accurate. Cooperation from some Agents is very limited because of the restrictions from their management. It was difficult to see the Agents, as they were busy in their business hours. Simple random sampling has its own drawbacks hence there can be loss in the precision. The study was mainly focused on Insurance Agents rather than end users i.e., customers. Compared to total population sample size is very small. The study was restricted to a small part of Kerala. Cooperation from respondents is limited at certain times.

35

2.7 ANALYSIS AND INTERPRETATION

Table No: 2.7.1 1. The Table showing the different Life Insurance sector, which are familiar among the customers in agents opinion. Particulars LIC, Reliance Bajaj allianz , Birla sunlife, ICICI Prudential, others Total Source Primary Data
10% 9% 44%

Respondents 44 10 17 9 18 2 100

Percentage 44% 10% !7% 95 18% 2% 100%

17%

2%

18%

Figure:2.7.1 The above figure shows the different Life Insurance sectors, which are familiar among the customers in agents opinion. Inference: From the above table we can understand that, most of the customers are awrare of Life insurance corporation of India. Among the Private Insurance sector,

36

Bajaj allianz, ICICI Prudential and are having more potentiality. Metlife Insurance and Birla Sun Life Insurance are also having some market.

Table No: 2.7.2 2. The Table showing the toughest competitor for Bajaj allianz. Brand LIC reliance ICICI Prudential Others Total Respondents 61 18 15 6 100 Percentage 61% 18% 15% 6% 100%

Source Primary Data

70 60 50 40 30 20 10 0 LIC reliance ICICI Others

Figure: 2.7.2 The above figure shows the toughest competitor for Bajaj allianz. Inference: From the hundred samples collected, 61 percent of agents say LIC is the toughest competitor for Bajaj allianz reliance and ICICI Prudential are the second and third toughest competitors for Bajaj allianz with eighteen and fifteen percentage. So more promotional tools should be given to overcome the competition

37

Table No:2.7.3 3. Table showing years of dealing with Bajaj allianz Financial Products by Agents. Years 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs 5 and above Total Respondents 34 21 17 17 11 100 Percentage 34% 21% 17% 17% 11% 100%

Source Primary Data

29%

16%

13% 22% 13% 1% 6%

Figure:2.7.3 The above figure shows the of dealing with Bajaj allianz Financial Products by Agents Inference: From the analysis, it is clear that thirty four percent of agents dealing with Bajaj allianz only 1-2 years experince. The respondents who are dealing for 2-3 years, 3-4 years and 4-5 years are twenty one percent, seventeen percent and seventeen

38

percent respectively. So year by year the number of customers are increasing to deal with the financial products. So there is a wider market for the Bajaj allianz Products.

Table No: 2.7.4 4. The Table showing the fast moving Life Insurance presently. Particulars LIC reliance Bajaj alianz ICICI Prudential Others Total Respondents 61 11 12 10 6 100 Percentage 61% 11% 12% 10% 6% 100%

Source Primary Data

70 60 50 40 30 20 10 0 LIC Reliance Bajaj Alliance ICICI Others

Figure:2.7.4 The above figure shows the the fast moving Life Insurance presently. Inference: From the hundred samples collected, 61 percent of agents say LIC is the fast moving Life Insurance. Bajaj allianz has a potential market with twelve

percentage. Bajaj Allianz and ICICI Prudential are in the next places with eleven and 39

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

Table No:2.7.5 5. Table showing the factors that are influencing the customers from agents opinion in selecting Bajaj Allianz products. Particulars Security Service Schemes Brand Name Others Total Source Primary Data
32% 17% 1%

Respondents 33 17 44 7 1 100

Percentage 33% 17% 44% 7% 1% 100%

7%

43%

Figure:2.7.5 The above figure shows the the factors that are influencing the customers from agents opinion in selecting Bajaj allianz products Inference: From the analysis, forty two percent of respondents are selecting security as the major factor for selecting the Bajaj allianz products. Seventeen percent of

40

respondents are selecting service and thirty three percent of respondents are having the opinion with brand name. So it is clear that the customer prefers Security and service as the majer factor rather than other factors.

Table No: 2.7.6 6. Table showing whether Bajaj allianz is in a full swing or not. Particulars Full Swing Zero Swing Respondents 63 37 Percentage 63% 37%

Source Primary Data

70 60 50 40 30 20 10 0 Yes No

Figure: 2.7.6 The above figure shows whether Bajaj allianz is in a full swing or not.

Inference: From the study, we can understand that sixty three percent of respondents in the market go for full swing and of thirty seven percent of respondents in the market go for Zero swing. So there is a wider and prospective market for the company to explore. 41

Table No:2.7.7 7. Table showing the satisfaction of customers from agents opinion about products and services provided by Bajaj allianz with respect to competitors. Particulars Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Source Primary Data Respondents 38 24 37 1 0 100 Percentage 38% 24% 37% 1% 0% 100%

40 30 20 10 0 H.S S N D H.D

Figure:2.7.7 The above figure shows the satisfaction of customers from agents opinion about products and services provided by Bajaj allianz with respect to competitors. Inference: Thirty eight percent of samples are highly satisfied with the products and services provided by the company. Twenty four percent of respondents are satisfied and thirty seven percent of respondents are having neutral opinion. Only one percent 42

of samples are dissatisfied with the products and services provided by the company. So we can understand that the majority of customers are having with the products and services. Table No: 2.7.8 8. Table showing the level of trust about Bajaj allianz products and services with respect to competitors. Particulars Highly trusted Trusted Neutral Untrusted Not Sure Total Source Primary Data
46%

Respondents 2 46 48 3 1 100

Percentage 2% 46% 48% 3% 1% 100%

48% 2% 1%3%

Figure : 2.7.8 The above figure shows the level of trust about bajaj allianz products and services with respect to competitors Inference: From the hundred samples taken it was found that two percent of agents are highly trusted with the services provided by the company. The agents who are trusted in Bajaj Allianz and are having neutral opinion are forty-six and forty eight percent respectively. Only three percent of agents are Untrusted with the company and one

43

percent having the opinion of not sure. From this we can evaluate that the level of trust in Bajaj Allianz Company is good.

Table No: 2.7.9 9. Table showing the satisfaction of agents towards the promotional tools adopted by Bajaj Allianz with respect to competitors. Factors Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Source Primary Data Respondents 17 38 43 2 0 100 Percentage 17% 38% 43% 2% 0% 100%

50 40 30 20 10 0 H.S S N D H.D

Figure: 2.7.9 The above figure shows the satisfaction of agents towards the promotional tools adopted by Bajaj allianz. Inference: Seventeen percent of samples are highly satisfied with the promotional tools adopted by the company. Thirty eight percent of respondents are satisfied and forty three percent of respondents are having neutral opinion. Only two percent of 44

samples are dissatisfied with the promotional tools adopted by the company. So we can understand that the majority of agents are satisfied with the promotional tools adopted by the company.

Table No: 2.7.10 10. Table showing the satisfaction of agents towards the present marketing channel. Particulars Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Respondents 9 51 40 0 0 100 Percentage 9% 51% 40% 0% 0% 100%

Source Primary Data

60 50 40 30 20 10 0 H.S S N D H.D

Figure:2.7.10 The above figure shows the satisfaction of agents towards the present marketing channel. Inference:

45

From the analysis, nine percent of respondents are highly satisfied with the present marketing channel. Fifty one percent of respondents are satisfied and fourty percent of respondents are having neutral opinion. So it is clear that the companys marketing channel is very good since there is no dissatisfaction level among the agents. Table No: 2.7.11 11. Table showing the satisfaction of agents with the commission company gives for Life Insurance with regards to competitors. Particulars Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Source Primary Data Respondents 10 29 52 9 0 100 Percentage 10% 29% 52% 9% 0% 100%

60 50 40 30 20 10 0 H.S S N D H.D

Figure:2.7.11 The above figure shows the satisfaction of agents with the commission company gives for Life Insurance with regards to competitors. Inference:

46

From the analysis, ten percent of agents are highly satisfied with the commission given by the company. The agents who are satisfied and are having neutral opinion about the commission are twenty nine and fifty two percent respectively. Only nine percent of agents are dissatisfied with the commission. From this we can evaluate that the satisfaction level of agents about the commission is fairly good.

Table No: 2.7.12 12. Table showing the opinion of agents regarding the margin in commission paid by the company. Particulars Yes No Total Source Primary Data Respondents 61 39 100 Percentage 61% 39% 100%

61%

39%

Figure: 2.7.12 The above figure shows the opinion of dealers regarding the margin in commission paid by the company.

Inference: 47

The sample size taken was hundred. Here sixty one percent of sample size says that, they get a fair commission with the margin of profit get by selling the Insurance products. Thirty nine percent of samples say, they dont get a fair margin of profit in selling the product. From this we can understand that majority of agents are satisfied with the margin of commission.

Table No: 2.7.13 13. Table showing the Satisfaction of customers in agents opinion towards the service provided by the company with regards to competitors. Particulars Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Source Primary Data
S

Respondents 21 40 36 3 0 100

Percentage 21% 40% 36% 3% 0% 100%

H.S H.D D N

Figure: 2.7.13 The above figure shows the Satisfaction of customers in agents opinion towards the service provided by the company with regards to competitors. Inference:

48

From the hundred samples taken it was found that twenty one percent of dealers are highly satisfied with the services provided by the company. The agents who are satisfied and are having neutral opinion about the services provided by the company are fourth and thirty six percent respectively. Only 3% of agents are dissatisfied with the services of the company. From this we can evaluate that service provided by the company is good.

Table No: 2.7.14 14. Table showing agents opinion towards support from the company for improving the sales. Particulars Yes No Total Source Primary Data Respondents 65 35 100 Percentage 65% 35% 100%

70 60 50 40 30 20 10 0 Yes No

Figure: 2.7.14 The above figure shows the agents opinion towards support from the company for improving the sales.

Inference: 49

From the analysis, Sixty five percent of the sample says they need more support from the company. While thirty five percent of the samples say they dont need more support from the company. From this we can understand that they need more support from the company to improve the sales.

Table No: 2.7.15 15. Table showing the time gap for meetings that are arranged for the agents to analyse the current market. Particulars Thrice in a month Twice in a month Once in a month Not at all. Toatal Source Primary Data Respondents 64 30 6 0 100 Percentage 64% 30% 6% 0% 100%

70 60 50 40 30 20 10 0 Thrice twice Once not at all

Figure: 2.7.15 The above figure shows the time gap for meetings that are arranged for the agents to analyse the current market. 50

Inference: From the analysis, 64% of agents says meetings should be conducted thrice in a month to analyse the current market. 30% percentage of agents opinion is that meetings should be conducted twice in a month and only 6% stands for once in a month. No agents are not against the meetings to analyse the current scenario.

Table No: 2.7.16 16. The Table showing expectation of agents from Bajaj Allianz Standard Life Insurance Company. Particulars Advertisement Service Support Financing Scheme Other Promotional activities Total Source Primary Data Respondents 8 31 40 21 100 Percentage 8% 31% 40% 21% 100%

Ad

Service

finance

Promotion

Figure2.7.16

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The above figure shows the agents expectation from Bajaj Allianz standard Life Insurance Company. Inference: From the hundred samples collected, 8% of agents expectation is towards the advertisement, 31% of agents expectation towards service support and for financing schemes and promotional activities are 40% and 21% respectively. So it is clear that most of the agents are expecting for financing scheme.

Table No: 2.7.17 17. The Table showing the customer awareness about the various products and services of Bajaj Allianz. Particulars Yes No Total Respondents 53 47 100 Percentage 53% 47% 100%

Source Primary Data

54 52 50 48 46 44 Yes No

Figure 2.7.17 The above figure shows the customer awareness about the various products and services of Bajaj Allianz.

52

Inference: According to the perception of insurance agents, 53% of customers are aware of the various products and services provided by Bajaj allianz. 47 % percentage of public is not aware about the products of Bajaj allianz Standard Life Insurance.

Table No: 2.7.18 18. Table showing the category of people who shows more interest in life Insurance Particulars 18-24 25-35 36-45 45-above total Source Primary Data Respondents 10 30 55 5 100 Percentage 10% 30% 55% 5% 100%

60 50 40 30 20 10 0 18-24 24-35 36-45 45above

Figure2.7.18

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

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Inference: From the analysis, it is clear that fifty five percent of peoples are from 3645 category. So life insurance is more potential among these category.

Table No: 2.7.19 19. Table showing the customers consideration about Life Insurance Particulars Essential Not essential No Opinion Total Respondents 74 16 10 100 Percentage 74% 16% 10% 100%

Source Primary Data

80 70 60 50 40 30 20 10 0 Essential Not essential No Opinion

Figure2.7.19

The above figure shows the customers consideration about Life Insurance.

54

Inference: From the analysis, it is clear that seventy four percent of customers are considering the Life Insurance is an essential one in their life. So we can understand that, Customers opinions about life insurance are positive.

Table No: 2.7.20 20. The Table showing the expectation of customers about the returns. Particulars Very High High No Opinion Total Source Primary Data Respondents 81 18 1 100 Percentage 81% 18% 1% 100%

V.H

N.O

Figure2.7.20 The above figure shows the expectation of customers about the returns.

Inference:

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The sample taken was hundred. Eighty one percent of customers are having high expectation in returns. So it is the responsibility of the company to give maximum services to gain the belief of the customers.

Table No: 2.7.21 21. Table showing the completion level faced by the company from the agents view. Particulars Yes No Total Respondents 61 39 100 Percentage 61% 39% 100%

Source Primary Data

61%

39%

Figure2.7.21

The above figure shows the competition level faced by the company from the agents view.

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Inference: The sample size taken was hundred. Here sixty one percent of sample size says that, the competition faced by the company in Insurance products are very high. Thirty nine percent of samples say, the company is not facing too much competition in selling the product.

Table No: 2.7.22 22. Table showing the opinion about the introduction of new products and services. Particulars Yes No No Opinion Total Source Primary Data Respondents 66 31 3 100 Percentage 66% 31% 3% 100%

70 60 50 40 30 20 10 0 Yes No No Opinion

Figure2.7.22 The above figure shows the opinion about the introduction of new products and services.

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Inference: From the analysis, sixty six percent of agents are highly satisfied with the introduction of new products and services by the company. The agents who are having neutral opinion about the new products arethirty sux two percent r. Only three percent of agents are dissatisfied with the introduction of new products and services .

Chi-Square test
Particulars Highly satisfied Satisfied Promotion 17 38 Sales 9 51 40 100 Total 26 89 85 200

Neutral / Dissatisfied 45 / Highly dissatisfied Total 100

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

Null hypothesis There is a positive relation ship between promotion and sales. Alternative Hypothesis The promotion and sales are independent to each other. Contigency Table

58

Sl.No
1 2 3 4 5 6

O
17 9 38 51 45 40

E
13 13 44.5 44.5 42.5 42.5

(O-E)2
16 16 42.25 42.25 6.25 6.25

(O-E)2 /E
1.23 1.23 0.949 0.949 0.147 0.147

(O-E)2 E

4.652

Degrees of freedom = (r-1) (c-1) = (3-1) (2-1) = 2 Level of significance = 5% Table Value = 5.99 ( 5% level of significance at 2 degrees of freedom ) Conclusion Calculated value is less than the table value. Therefore, null hypothesis is accepted and alternative hypothesis is rejected. So promotion and sales are dependent to each other

2. To find out whether the different insurance schemes are capable to increase the sales with respect to the sex category of agents. Statistical tool used- Chi-Square test Null hypothesis Insurance schemes are capable to increase the sales Alternative Hypothesis Insurance schemes and increment in sales are independent Opiniom of agents about schemes To a very To some extent 59 Not sure Not at all Total

great extend Male Female Total 16 12 28 17 14 31 18 6 24 13 4 17 64 36 100

Significant Level = 5% Calculated value = 3.82 Degree of freedom = (r-1) (c-1) = (2-1) (4-1) =3 Table value = 7.81 Sl.No 1 2 03 4 5 6 7 8 Oi 16 17 18 13 12 14 6 4 Ei 17.92 19.84 15.36 10.88 10.08 11.16 8.64 6.12 Total 60 (Oi-Ei)2/Ei 0.21 0.41 0.41 0.42 0.11 0.73 0.82 0.72 3.82

Inference: Here it is clear that calculated value is less than the tabular value. Therefore, null hypothesis is accepted and alternative hypothesis is rejected. Conclusion We can understand that Insurance schemes play a major role in increasing the sales.

CHAPTER III FINDINGS SUGGESTIONS AND CONCLUSION

Findings

Bajaj allianz Standard Life Insurance is successful in the market .

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 According to agents, buying decisions are mainly based on product schemes and services. The most familiar life insurance company is Life Insuarance Corporation of India. It has found that, the toughest competitors for Bajaj allianz Standard Life insurance in the market are 1. L.I.C 2. Bajaj Allianz 3. ICICI Prudential 4. Birla Sun Life Insurance. The service provided by Bajaj allianz Standard Life insurance are satisfactory Brand name plays a major role among the end users i.e. customers The goodwill of company is very high The promotional tool adopted by Bajaj allianz for the agents are satisfactory. Customers are considering Life Insurance as one of the essential factor in their life. The customers belief in returns from investment is very high. This is based on the opinion from the Insurance agents.

In the Current scenario, the completion level among the Insuarance companies is very high.

The agents opinion for introducing new products and services in life insurance sector is positive.

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

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The customers are satisfied with the products and services provided by the company.

More promotional tools should be introduced to overcome the competion and to capture new customers.

The level of trust by the customers in Bajaj allianzproducts is satisfactory. The present marketing channel of Bajaj allianz is good than the competitors. The company is giving a fair commission to the Insurance agents than the competitors.

The Bajaj allianz Insurance agents are satisfied with the commission paid by the company.

The agents are expecting more support from the company to improve their performance. It includes Financing, Promotions More Discussions.

The category of customers who are having high belief in Life Insurance falls between 36-45. Classification based on performance will helps the agents to gain more

and thus results in the increment of sales as well as the improvement in their performance. i.e; agents should be treat differently. Organization climate is satisfactory for the agents to work.

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Suggestions

Competition is high in the market so more techniques and tools should be used to overcome the competition.

From the survey it was found that, most of the agents had the opinion that they need more support from the company to improve the performance.

More meetings should be conducted to analyze the current market. Agents should be treated differently Target should be specified. Grade system should be implemented. More concentration should be given to city limits. More advertisements should be given. Customer relationship should made better. More services should be offered to customers.

CONCLUSION

64

The research project which I carried out at bajaj allianz was a knowledgeable experience. The working environment was very interesting. The ways of dealing and tackling employees problems as well s in taking their positive suggestions was carried out by the company in an acceptable manner. During the course of my project all employees were very co-operative and enthusiastically filled the questionnaires. Bajaj allianz products have been penetrated into the market very well. The Companys products and services and distribution channel are very effective. They have got a good impression among the public.

REFERENCES

Marketing management Philip Kolter Brochures of Veekshanam daily. 65

Personnel management - CB mamoria. Principles and practice of Management - L.M. Prasad Business organization and management M.C. Shukla. Research Methodology Kothari.

MARKET POTENTIAL OF BAJAJ ALLIANZ STANDARD LIFE INSURANCE [Focused on dealers]

Personal Details 1) Dealers Name: 66 2) Place:

3) Which is the most familier Life Insurance company for the customers? LIC Others 4) Which do you think is the toughest competitor for Bajaj allianz Standard Life Insurance? LIC ICICI Prudential Bajaj Allaince Others ICICI Prudential Bajaj Allianz Bajaj allianz

5) How long are you dealing with Bajaj allianz financial products? 2-4yrs 4-6yrs 6-8yrs 8-10yrs 10 and above

6) Which is the fast moving Life Insurance presently? LIC Bajaj allianz ICICI Prudential Bajaj Allaince others

a) Specify the reason: Security Service Schemes Brand name others

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

8) In your opinion rank these Life Insurance, Rank 1 best 2 next best, etc LIC Bajaj allianz ICICI Prudential Bajaj Allaince Others

9) Is the customer is satisfied with product and services provided by Bajaj allianz Standard Life Insurance with respect to competitors? Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

67

10) Are you satisfied with the promotional tools adopted by the company with respect to competitors? Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

11) Can you mention the Customers level of trust in Bajaj allianz Standard Life Insurance? Highly Trusted Trusted Neutral Untrusted Not Sure

12) Are you satisfied with the present marketing channels? Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

13) Are you satisfied with the commission the company gives with regards to competitors? Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

14) Do you get fair margin in the commission paid by the Company? Yes No

15) Is the customer is satisfied with the services provided by the company with regards to competitors? Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

16) Do you require any further support from the company for improving the sales? Yes No

17) How often meetings are conduced to analyse the current market? Thrice in a month Once in a month Twice in a month Not at all

18) What is your expectation from Bajaj allianz Standard Life Insurance? Advertisement Financing scheme Service support other promotional Activities

19) Whether customer knows about the various Products and services of Bajaj allianz 68

Standard Life Insurance Yes No

20) which category of people shows more response towards life insurance. 18-24 25-35 36-45 45 above

21) customers are treated Life Insurance as Essential Not essential No Opinion

22) The expectation of cistomers about the returne is Very High High No Opinion.

23) Is the company is facing any competion in the current scenario. Yes No

24) Your opinion in introducing new bajaj allianz products / service Yes No No Opinion

25) ur opinion in companys promotional and sales activities are Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

26) Do you think Different schemes help to increase the sales. Yes No

69