A PROJECT REPORT ON CONSUMER BEHAVIOR TOWARDS BIRLA SUNLIFE INSURANCE LTD.
A training report submitted in partial fulfillment fulfillment of the requirement for the degree of
MASTERS OF BUSINESS ADMINISTRATION (2013-2015) Sub. By : Navdeep Navdeep Goyal MBA – II Roll No.: 13!"#3$
BABA FARID COLLEE OF MANAEMENT AND TECHNOLO! D E O N " B A T H I N D A 1
T# $%#& ' &* +#,+,
This is to certify that the project report titled ‘ CONSUMER BEHAVIOUR TOWA TO WARD RDS S BIRL BIRLA A SUNL SUNLIF IFE E INSU INSURA RANC NCE E LT LTD. D.// carr carrie ied d ou outt by NAVD NAVDEE EEP P O O!A !AL L has has been been acco accomp mpli lish shed ed un unde derr the the gu guid idan ance ce and and supervision of M. MUNISH SHARMA and M. INN!. This project is being submitted by him in the partial fulfillment of requirements for the award of the Master of Business Administration from Baba farid college of management and technology, bathinda This is an original wor! and has not been submitted by her anywhere else for the award of any degree All sources of information and help have been duly mentioned mentioned and ac!nowledged ac!nowledged "ignature of faculty guide# $ate#
%
ACNOWLEDEMENT & feel immense pleasure to give the credit of my project wor! not only to one individual as this wor! is integrated effort of all those who are concerned with it & want to than!s to all those individuals who guided me to move on the trac! This report entitled '()*"+M- B.A/&)+- T)0A-$" B&-A "+* &2 &*"+-A*( &M&T$3 is the outcome of my summer training at B&-A "+*&2 &*"+-A*( (o udhiana udhiana & sincerel sincerely y e4press e4press my gratitud gratitudee and lot of than!s than!s to Mr Munis Munish h "har "harm ma 5 Mrs Mrs 6in 6inny ny and and othe otherr sta staff ff membe embers rs of B&- B&-A A "+*& +*&2 2 &*"+ &*"+-A -A* *( (), u ud dhian hianaa for help helpiing me in completing my project wor! and ma!ing it a great success & would li!e to e4press my deep sense of gratitude to staff of Baba farid college college of managem management ent who introduced introduced me to the subject subject and under under whose guidance & am able to complete my project ast but not least, & would than! all my friends, faculty members and all respondents who rendered their precious time for contributing their s!ills and fill fill the questi questionn onnair aire, e, which which made made my projec projectt mo more re appeal appealing ing and attractive NAVDEEP O!AL
7
PREFACE
After After having having und underg ergone one the practi practical cal train training ing with with 'B&-A 'B&-A "+*& "+*&2 2 &*"+-A*( T$3 & have been able to understand the importance and necessity of obtaining a professional degree in management The wor!ing of various organs of organi8ation is captured over here which correlates with one another as it further adds the vastness of my study .ence my attempt is to cover all the organi8ational activities and related facts so as to have better control over my primary subject of study The increased significance of understanding pivot for modern researches $ynamic behavior of human resources shows a greater comple4ity to be overcome by researches and there is a vast scope left to be undergone Todays • (omple4 organi8ation structure • &ncreasing
importance of human resources
• &ncreasing
comple4ity of job designing and organi8ation
.enc .encee my stud study y incl includ udes es hu hum man rela relate ted d aspe aspect ctss with with refe refere renc ncee to organi8ational functioning 1 &n9depth &n9depth Analytic Analytical al study and observa observation tion of procedu procedures res and system system of mar!eting which are prevalent in common environment % Manage Manageme ment nt polici policies es and practic practices es determ determine ine the succes successs of entire entire organi8ational functioning *o matter whether it is recruitment policy or rela relate ted d to othe otherr depa depart rtme ment nt,, it has has a sign signif ific ican antt impa impact ct ov over er recruitment This project gives us an opportunity to get !nowledge how business can effected and how to handle different situations which organi8ation faces
:
Table of Contents
A...............................................................................................................................1 PROJECT REPORT.................................................................................................1 Table of Contents................................................................... Contents.............................................................................................. ......................................... .............. . 5 EXECUTIVE SUMMARY................ SUMMARY........................................... ...................................................... .......................................................6 ............................6 CHAPTER -1................................................... -1.............................................................................. ............................................................... .................................... 1 I!TRO"UCTIO!.............................. I!TRO"UCTIO!......................................................... ...................................................... ................................................... ........................ 1 A#OUT...........................................................................................................................1 PROJECT TOPIC............................................ TOPIC........................................................................ ....................................................... ................................... ........ 1 CHAPTER -$............................................... -$.......................................................................... ..................................................... .......................... .......... $ I!TRO"UCTIO!........................................................................................................$ A#OUT.......................................................................................................................$ I!SURA!CE SECTOR.......................................... SECTOR..................................................................... ..................................................... .......................... $ H%sto&' of %ns(&an)e.................................................................. %ns(&an)e.................................................................................................... .................................. $1 T'*es of %ns(&an)e.....................................................................................................$+ T'*es of %ns(&an)e )o,*an%es...................................................................................$5 S%e of lobal %ns(&an)e %n/(st&'................................................................................$6 0%nan)%al %ab%l%t' of %ns(&an)e )o,*an%es..................................................................$2 Healt3 %ns(&an)e.................................................. %ns(&an)e.............................................................................. ........................................ ....................... ........... $2 "ental %ns(&an)e.................................................. %ns(&an)e.............................................................................. ........................................ ....................... ........... $2 PRESE!T SCE!ARIO O0 I!SURA!CE I!"USTRY........................................ I!"USTRY.................................................... ............ $4 CHAPTER -................................................... -.............................................................................. ............................................................... .................................... 1 A#OUT...........................................................................................................................1 A"IYTA #IRA 7ROUP...................... 7ROUP................................................. ...................................................... ................................................ ..................... 1 CHAPTER -+................................................... -+.............................................................................. ............................................................... .................................... + I!TRO"UCTIO!.............................. I!TRO"UCTIO!......................................................... ...................................................... ................................................... ........................ + A#OUT...........................................................................................................................+ #IRA SU! I0E I!SURA!CE COMPA!Y................................................................... COMPA!Y................................................................... + CHAPTER -5................................................... -5.............................................................................. ............................................................... .................................... +$ O#JECTIVE O0 THE STU"Y........................................................................................+$
;
A!"...............................................................................................................................+$ RESEARCH METHO"OO7Y......................................................................................+$ CHAPTER -6................................................... -6.............................................................................. ............................................................... .................................... +4 I!TREPRETATIO!........................................................................................................+4 A!"...............................................................................................................................+4 "ATA A!AYSIS............................................................. A!AYSIS........................................................................................................... .............................................. +4 CHAPTER -2................................................... -2.............................................................................. ............................................................... .................................... 56 SU77ESTIO!S.............................................................................................................52 A!"...............................................................................................................................52 RECOMME!"ATIO!S..................................................................................................52 CHAPTER 8 4................................................. 4............................................................................ ............................................................... .................................... 6 APPE!"IX.....................................................................................................................6 A!"...............................................................................................................................6 #I#IO7RAPHY............................................................................................................6 #I#IO7RAPHY............................................................................................................6$ S9OT A!AYSIS...................... A!AYSIS................................................. ...................................................... ......................................................... .............................. 6 CO!CUSIO!...............................................................................................................65
EXECUTIVE SUMMARY
B&-A "+* &2 &*"+-A*( ()M
B"AM(?, the investment managers of Birla Mutual 2und, is a joint venture between companies of Aditya Birla Management (orporation imited and "un ife Assurance (ompany of
@
(anadaB"AM( strives to provide transparent, ethical and research9based investment and wealth management services
Birla "un ife $istribution (ompany imited offers investment advisory and financ financial ial produc productt distri distribut bution ion throug through h its netwo networ! r! of agents agents locate located d across the country The products offered are mutual funds, 6overnment of &ndia -elief bonds, and bonds of public financial institutions, select fi4ed deposits and &nitial equity and debt public offerings The compan company y also also distri distribut butes es the insura insurance nce produc products ts of Birla Birla "un ife ife &nsurance (ompany imited Both these companie companiess having having their their own status status in all over the world, both these companies are most popular companies As we !now it is joint venture between "un ife Assurance (ompany of (anada and Aditya Birla Management (orporation imited Aditya Birla group is very famous company in &ndia this company e4pand their business they having their cement factory and instead of this they having many other wor!s this detail we get after reading this project report The Aditya Birla 6roup is a +" %: billion conglomerate with a mar!et capitali8ation of +" 71; billion >as on 71st $ecember %C? and is one of the largest business houses in &ndia &t enjoys a leadership position in all the sectors in which it operates operates &t is anchored by a force of 1, 1, employees, belonging to %; nationalities &ts operations span % countries across si4 contin continent entss and are rec!on rec!oned ed as &ndiaD &ndiaDss first first mu multi ltinat nation ional al corpor corporati ation on .eadquartered in Mumbai, &ndia, over ; per cent of the 6roupEs revenues C
flow from its overseas operations The 6roup nurtures a wor! culture where success is built on learning and innovation The Aditya Birla 6roup was recently been adjudged 'The Best mployer in &ndia and among the top % in Asia3 by the .ewitt, conomic Times and 0all "treet Fournal "tudy %C
&ndia with about % million middle class household shows a huge untapped potential for players in the insurance industry "aturation of mar!ets in many developed economies has made the &ndian mar!et even more attractive for global insurance majors The insurance sector in &ndia has come to a position of very high potential and com competi petiti tive vene ness ss in the the mar! mar!et et &ndi &ndian ans, s, have have alwa always ys seen seen life life insurance as a ta4 saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice (onsumers remain the most important centre of the insurance sector After the entry of the foreign players the industry is seeing a lot of compet competiti ition on and thus thus impro improvem vement ent of the custom customer er servic servicee in the industry industry (omputer (omputerisati isation on of operation operationss and updating updating of technolog technology y has become imperative in the current scenario 2oreign players are bringing in international best practices in service through use of latest technologies
G Th Thee insu insura ranc ncee agen agents ts still still remai remain n the the main main sourc sourcee thro throug ugh h whic which h insurance products are sold The concept is very well established in the country li!e &ndia but still the increasing use of other sources is imperative B"& B"& is grow growin ing g very very spee speedy dy all all ov over er the the &ndi &ndiaa Thi Thiss grow growth th rate rate is increasing continuously instead of the mar!et competition now these days there are many companies competing with each other Today there are many companies wor!ing for insurance and these are li!e B&-A "+*&2 &*"+-A*( BAFAF A&A*H I
&(&(& <-+ &*"+-A*( ".A-A &2 &*"+-A*( &( tc
J
CHAPTER -1
INTRODUCTION
ABOUT
PROJECT TOPIC
PROJECT TITLE-
1
The proj The projec ectt titl titlee is in the the dept depth h stud study y of ()*" ()*"+M +M- B.A B.A/& /&))T)0A-$" 'B&-A "+* &2 &*"+-A*( &M&T$3
INTRODUCTION&n the present constantly developing scenario rapidly changing technology and consumerEs tastes and preferences have become order of the day To survive in the mar!et , a firm has not only to be constantly innovating for new process , designs and materials , but also !eeping it well aware about the latest trend and tastes (onsumer behavior provides invaluable clues and guidelines to mar!eters on new technological and product frontiers , which they should e4plore for survival of their business with adequate profits The heterogeneity among people across the world ma!es understanding cons consum umer er bu buyi ying ng beha behavi vior or is real really ly a chal challe leng ngin ing g tas! tas! Th Thee cons consum umer er identity ,his beliefs ,specific needs , attitudes and the !ind of product and brands available in that product category influence his buying behavior The mar!eting mar!eting efforts efforts of a firm have a profound profound impact impact on the buying buying behavior of customers Therefore mar!eters attempt to obtain an in9depth !nowledge of customers buying behavior The success or failure of a product or service is dire direcctly tly rela elated ted to the the bu buyi ying ng beha ehavio vior of cust ustom omeer .en .ence to understanding of the buying behavior of the customers helps mar!eters mar!eters come up with innovative product mi4es 2inally, buyer behavior acts as an imperative tool in the hands of mar!eters to forecast the future buying behavior of the customers and device mar!eting strategies accordingly in order to create long term relationship with the customers
MEANIN OF CONSUMER BEHAVIOUR 11
(onsumer behavior is the study of how individuals ma!e decisions to spend their available resources >time, money and effort? on consumption related item >what they buy, when they buy, where they buy, how often they buy and use a product or services? There heterogeneity among people across the world ma!es understanding consum consumer er behavi behavior or an intric intricate ate and challe challengi nging ng tas! tas! The consum consumerE erEss identity, his beliefEs, specific needs, attitudes and the !ind of product and brand available in that product category influence his buying behavior The mar!eting efforts of a firm have a profound impact on the buying decisions of the the cust custom omer ers s Th Ther eref efor ore, e, mar! mar!et eter erss atte attemp mptt to ob obta tain in an in9d in9dep epth th !now !n owle ledg dgee of cust custom omer erss bu buyi ying ng beha behavi vior or Th Thee succ succes esss or fail failur uree of a product or service is directly related to the buying behavior of customers .ence, an understanding of buying behavior of customers helps mar!eters to come up with innovative products mi4es 2inally, buyer behavior acts as an imperative rule in the hands of mar!eters to forecast the future buying behavior of customers and device mar!eting stra strate tegi gies es acco accord rdin ingl gly y in orde orderr to crea create te long long term term rela relati tion onsh ship ip with with customer
BU!IN DECISION PROCESS (onsumers pass through different stages before actually buying of products which are as follows# 1 &dentify &dentify the the problem problem K need recognit recognition ion % 6ather 6ather inform information ation about about produ products cts and brands brands 7 valuate valuate the alterna alternative tive and select select the best best possible possible alternativ alternative e :
1%
The process of buying starts when a person relies that he has a problem or an unsatisfied need A need can be aroused internally within the person, for e4ample, hunger or buy an e4ternal stimulus An e4ternal stimulus such as an advert advertise iseme ment nt or the attrac attractiv tivene eness ss of the produc productt pac!ag pac!agee may may also also trigger a need in a person "ources of problem recognition include# • • • • • •
An item is out of stoc! $issatisfaction with a current product or service (onsumer needs and wants -elated productsKpurchases productsKpurchases Mar!eter9induced *ew products
INFORMATION INFORMATION SEARCH
A consumer who reali8es a need of a product will try to gather information regarding the product &nformation can be gathered from several sources li!e, 1
EVALUATION OF ALTERNATIVES
17
&n this stage, customer analysis the information available with him in order to select the right brand or product The criteria to evaluate a product may diff differ er depe depend ndin ing g eith either er on the the bu buyi ying ng situ situat atio ion n or on the the leve levell of involvem involvement ent required required 2or high value and infreque infrequently ntly purchased items, customers can be involved in detailed analysis of information .owever, for low involvement or low priced product, customers can use simple criterion, such as price (ustomers can give a certain level of attention to different features and characteristics of a product
PURCHASE DECISION
"election or purchase of a particular brand is depending on the evaluation criteria and ratings The purchase decision also depends upon the availability of brands This stage also accounts for a large number of sub divisions about purchasing a product product li!e# 1 % 7 : ; @ C
"eller "eller and and locat location ion of store store Time Time of pu purc rcha hase se "i8e "i8e of of the the prod produc uct t
POST PURCHASE BEHAVIOR
A customer evaluates the performance of a product after buying it .e will also compare the performance of the product with that of itEs competitors product The consumer will be either satisfied or dissatisfied after this evaluation BuyerEs post purchase feelings are of significant importance to mar!eters The post purchase evaluation might either lead to repeat purchase 1:
and the buyer tal!ing favorably about the product to other or the buyer may tal! negative about the firmEs product
FACTORS INFLUENCIN CONSUMER BEHAVIOR
1 (+T+- (+T+- 2A(T)-" 2A(T)-" ♦
(+T+-
♦
"+B(+T+-
♦
")(&A (A""
% ")(&A ")(&A 2A(T)-" 2A(T)-" ♦
-2-*( 6-)+<"
♦
2AM&=
7 <-" <-")* )*A A 2A( 2A(T) T)-" -" ♦
A6 A*$ &2(=( "TA6
♦
)((+
♦
&2"T=
: <"=(.))6&(A 2A(T)-" ♦
M)T&/AT&)*
♦
<-(
♦
B&2" A*$ ATT&T+$
1;
A (+T+-A 2A(T)-" 2A(T)-" The culture factors that influence consumer9buying behavior include the following# CULTURE-
(ulture is considered as a set of rules, values, beliefs, behavior and concepts that is common to and binds together the members of a society &t is usually passed on from one generation to the other $uring our lives, there is constant L conscious and unconscious L pressure on us to display certain types of behavior SUBCULTURE-
very culture has its own set of subculture A subculture is a culture followed by a group of people within a culture that is distinctly identified within a larger society These groups have a similar habits, behavior patterns, shared value system, buying behavior on the basis of their age, religion, common e4periences or even geographic location To tac!le the problem created by subculture differences mar!eters need to understand the requir requirem ement entss of the sub subcul cultur turee groups groups and adopt adopt strate strategie giess li!e li!e alteri altering ng the produc product, t, promo promotio tion, n, pac!ag pac!aging ing or price price suitab suitable le to these these groups
SOCIAL CLASS"ocial class refers to the classification of members of society into a hier hierar arch chy y of dist distin inct ct clas classe sess so that that ever every y indi indivi vidu dual al in a clas classs has has appro4imately same position in the society Most societies in the world have different social class structure Members of each social class are free to move in an upward or downward direction within the social class, on the basis of their social structure "ocial class can be divided into following parts#9
1@
1 U +4This class consists of people who are rich and posses considerable wealth, for e4ample, people with large businesses and wealthy corporate e4ecutives % U U &'4 &'4 +4+4 This class consists of well9 educated people holding top class positions in middle si8e firms, or professionals who are successful 7 M'4 M' 4 +4+4 This class consists of white collar wor!ers li!e middle level and junior e4ecutives, sales people, academicians, small business owners, etc : L#$ L#$ +4+4 This class consists of blue collar wor!ers li!e laborers, semi s!illed and uns!illed in the unorgani8ed sector B SOCIAL SOCIA L FACTORSFACTO RS2amily, friends, formal social groups, colleagues at wor! and consumer action groups influence the consumerEs buying behavior significantly An individualEs family greatly influences the buying patterns of the individual
S#+'4 6+# ',+47 6#44#$',8 6+#1. R6,+ R6,+ #7#7An individualEs attitude, value and behavior are influenced by different >small? groups and they have a direct or indirect influence on the individual Buying behavior of consumers is largely influenced by the reference group to which they belong or aspire to belong 2. F&'4* F&'4*A family is defined as a two or more persons related by blood, marriage or adoption and reside together A family is a small reference group but it is prominent in influencing consumer behavior 2amilies go through various 1C
stages of life cycle 2or e4ample, the consumer demands of a bachelor are different from those of a newly married couple, or a family with children K no children, older couples with dependent children, older couples with no dependent children and solitary survivors C. PERSONAL FACTORSFACTORSThese These are differ different ent person personal al factor factors, s, which which affect affect the buy buying ing decisi decision on process These factors are are as follows#9 1. A8 , , 4'6+*+4 4'6+*+4 88(hanges in a society have led to the creation of different categories li!e coup couple less gett gettin ing g marr marrie ied d late late in life life,, sing single le pare parent nts, s, etc etc,, besi beside dess the the traditional life cycle stages which included young singles, married couples and lone survivors 2. O++7'#, , F',,+'4 7)ccupation and income level of persons have a major impact on his savings and buying behavior 2or e4ample, blue collar will indulge in purchasing clothes, shoes, etc, which he cam wear to wor! "imilarly, companyEs chairman may buy clothes, accessories and other products and services that suit his lifestyle 3. L'6 L'6 *4 *4 An individualEs way of leading his life will determine his lifestyle 2actors such as wor! life, interests, interests, social groups, groups, etc, influence influence the lifestyle lifestyle of an individual D. PS!CHOLOICAL PS!CHOLOICAL FACTORS9
elements behind the purchasing decision of customers )ne of the most widely !nown theories, the hierarchy of need, was proposed by Abraham Maslow and e4plains why people are driven by particular need at particular time 2. P+'#,P+'#,
1J
CHAPTER -2
INTRODUCTION
ABOUT
INSURANCE SECTOR
%
INDUSTR! PROFILE
H'#* #6 ',7,+
arly methods of transferring or distributing ris! were practiced by (hinese and Babylonian trad trader erss as long long ago ago as the 7rd 7rd an and %nd millennia B( respectively (hinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single capsi8ing The Babylonians developed a system which was recorded in the famou famouss (ode of .ammurabi, .ammurabi , c 1C; B(, and practiced by early Mediterranean Mediterranean sailing merchants merchants &f a merchant received a loan to fund his shipment, he would pay the lender an additional sum in e4change for the lenderDs guarantee to cancel the loan should the shipment be stolen Achaemenian monarchs were the first to insure their people and made it official by registering the insuring process in governmental notary offices The insurance tradition was performed each year in *orou8 >beginning of the &ranian *ew =ear? the heads of different ethnic groups as well as others willing to ta!e part, presented gifts to the monarch The most important gift was presented during a special ceremony and when a gift was worth more than 1, $erri! >Achaemenian gold coin weighing I7;9I:%? the issue was registered in a special office This was advantageous to those presented such such specia speciall gifts gifts 2or 2or others others,, the presen presents ts were were fairl fairly y assess assessed ed by the confid confidant antss of the court court Then Then the assess assessme ment nt was regist registere ered d in specia speciall offices The aim of registering was that whenever the one who presented the gift registered by the court was in trouble, the monarch and the court would help him or her Fahe8, a historian and writer, writes in one of his boo!s on ancient &ran# and whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc the one in charge of this in the court would chec! the registration &f the registered %1
amount e4ceeded 1, $erri!, he or she would receive an amount of twice as muchN
The 6ree!s and 6ree!s and -omans introduced -omans introduced the origins of health and life insurance c @ A$ when they organi8e organi8ed d guilds guilds called called Nbenevolen Nbenevolentt societiesN societiesN which acted to care for the families and families and funeral e4penses funeral e4penses of members upon death death 6uilds in 6uilds in the Middle Ages served Ages served a similar purpose The Talmud deals Talmud deals with several aspects of insuring goods goods Before insurance was established in the late 1Cth century, Nfriendly societiesN e4isted in ngland, in which people donated amounts of money to a general sum that could be used in case of emergency "eparate insurance contracts >ie insurance policies not bundled with loans or other !inds of contracts? were invented in 6enoa in 6enoa in the 1:th century, as were were insura insurance nce poo pools ls bac!ed bac!ed by pledge pledgess of landed landed estates estates These These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance &nsurance became far more sophisticated in post9-enaissance post9-enaissance urope, urope, and speciali8ed varieties developed Toward the end of the seventeenth century, the growing importance of ondon as a center for trade led to rising demand for marine insurance &n the late 1@Is, Mr dward loyd opened a coffee house which became a popular haunt of ship owners, merchants, and shipsE captains, and thereby a reliable source of the latest shipping news &t became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures Today, loydDs of ondon remains ondon remains the leading mar!et for marine and other specialist types of insurance, but it wor!s rather differently than the more familiar !inds of insurance &nsurance as we !now it today can be traced to the 6reat 2ire of ondon, ondon , which in 1@@@ devoured 17,% houses &n the aftermath of this disaster *icholas Barbon opened Barbon opened an office to insure buildings &n 1@I he established %%
nglandDs first fire insurance company, NThe 2ire )ffice,N to insure bric! and frame homes The first insurance company in the +nited "tates provided "tates provided fire insurance and was formed in (harles Town >modern9day (harleston?, (harleston?, "outh (arolina, (arolina, in 1C7% Benjamin 2ran!lin helped 2ran!lin helped to populari8e and ma!e standard the practice of insurance, particularly against fire in fire in the form of perpetual of perpetual insurance insurance &n 1C;%, he founded the
%7
T* #6 ',7,+
Any ris! that can be quantified probably has a type of insurance to protect it Among the different types of insurance are# •
•
•
•
•
•
A7#&#;'4 A7#&#;'4 ',7,+, also !nown as auto auto insur insuranc ancee " car insurance and in the +O motor insurance , is probably the most common form form of insu insura ranc ncee and and may may cove coverr bo both th lega legall liability liability claims against the driver and and loss of or damage to damage to the vehicle itself vehicle itself )ver most of the +nited "tates purchasing "tates purchasing an auto insurance policy is required to legally operate a motor vehicle on public roads -ecommendations for which policy limits should be used are specified in a number of boo!s &n some jurisdictions, bodily injury compensation for automobile accident victims has been changed to *o to *o 2ault systems, 2ault systems, which reduce or eliminate the ability to sue for compensation but provide automatic eligibility for benefits
C74* C7 4* ',7,+ ',7 ,+ insures against accidents, not necessarily tied to any specific property C' C ' ',7,+ ',7 ,+ pays some or all of a loan bac! loan bac! when certain things happen to the borrower such as unemployment, unemployment , disability, disability, or death death 2inancial loss insurance protects insurance protects individuals and companies against various financial ris!s H4% H4 % ',7,+ ',7 ,+ covers medical bills medical bills incurred incurred because because of sic!ness or accidents L';'4'* ',7,+ cove covers rs lega legall clai claims ms agai agains nstt the the insu insure red d ife insurance provides insurance provides a cash benefit to a decedentDs family or other
designated beneficiary, and may specifically provide for burial, burial, funeral and funeral and other final e4penses o
Annuities provide Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as %:
insurance insurance Annuities Annuities and pensions that pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will retiree will outlive his or her her fina financ ncia iall reso resour urce ces s &n that that sens sense, e, they they are are the the comp comple leme ment nt of life life insurance
•
•
•
•
T#4 &,, ';'4'* ',7,+ provides benefits when a person is permanently disabled and can no longer wor! in their profession, often ta!en as an adjunct to life insurance M', M' , I,7 I ,7,+ ,+ covers the loss or damage of goods at sea Marine insu insura ranc ncee typi typica call lly y comp compen ensa sate tess the the owne ownerr of merc mercha hand ndis isee for for loss losses es sust sustai aine ned d from from fire fire,, ship shipwr wrec ec!, !, etc etc,, bu butt e4cl e4clud udes es loss losses es that that can can be recovered from the carrier P#4''+4 '< ',7,+ can can be ta!e ta!en n ou outt by bu busi sine ness sses es with with oper op erat atio ions ns in countries in whic which h ther theree is a ris! ris! that that revolution revolution or other political conditions political conditions will result in a loss P#* ',7,+ provides protection against ris!s to property, such such as fire fire,, theft or weather damage damage This includes speciali8ed forms of insu insura ranc ncee such such as fire insurance insurance,, flood flood insurance insurance,, earthqua!e insurance, insurance, home insurance, insurance, inland marine insurance or boiler or boiler insurance insurance
T* #6 ',7,+ +#&,' &nsurance companies may be classified as •
•
Life ',7,+ +#&,' , who sell life insurance, annuities and pensions products
Non-life # general insurance companies, who sell other types of insurance
%;
&n mo most st coun countr trie ies, s, life life and and no non9 n9li life fe insu insure rers rs are are subj subjec ectt to diff differ eren entt regulatio regulations, ns, ta4 ta4 and accounting accounting rules The main reason for the distinction between the two types of company is that life business is very long term in nature P coverage for life assurance or a pension can cover ris!s over many decades decades By contr contrast ast,, non non9li 9life fe insura insurance nce cover cover usu usuall ally y covers covers a sho shorte rterr period, such as one year year &nsura &nsurance nce compan companies ies are genera generally lly classi classifi fied ed as either either mutual or sto%& companies This is more of a traditional distinction as true mutual companies are becoming rare Mutual companies are owned by the policyholders, while stoc!holders, >who may or may not own policies? own stoc! insurance companies Reinsurance Reinsurance companies companies are insurance insurance companies companies that sell policies policies to other other insu insura ranc ncee comp compan anie ies, s, allo allowi wing ng them them to redu reduce ce thei theirr ris! ris!ss and and prot protec ectt themselves from very large losses The reinsurance mar!et is dominated by a few very large companies, with huge reserves Captive Insurance companies may be defined as limited purpose insurance comp compan anie iess esta establ blis ishe hed d with with the the spec specif ific ic ob obje ject ctiv ivee of fina financ ncin ing g ris! ris!ss emanating from their parent group or groups This definition can sometimes be e4tended to include include some of the ris!s ris!s of the parent companyDs companyDs customers
&n short terms, it is an in9house self9insurance vehicle (aptives may ta!e the form of a NpureN entity >which is a 1Q subsidiary of the self9insured parent company? of a NmutualN NmutualN captive >which insures the collective collective ris!s of indust industry ry memb members ers? ? and of an Nassoc Nassociat iation ionNN captiv captivee >which >which self9i self9insu nsures res individual ris!s of the members of a professional, commercial or industrial association? S'= #6 84#;4 ',7,+ ',7*
6lobal insurance premiums grew by JCQ in %: to reach 77 trillion This follows 11CQ growth in the previous year ife insurance premiums grew by JIQ during the year due to rising demand for annuity and pension products *on9life insurance premiums premiums grew by J:Q as premium rates %@
increased )ver the past decade, global insurance premiums rose by more than a half as annual growth fluctuated between %Q and 1Q F',,+'4 :';'4'* #6 ',7,+ +#&,' +#&,'
2inancial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract An insurance premium paid currently provides coverage for losses that might arise many years in the future 2or that reason, the viability of the insurance carrier is very important &n recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage >or coverage only from a government9bac!ed insurance pool with less attractive payouts for losses? A number of independent rating agencies, such as BestDs, provide information and rate the financial viability of insurance companies H4% ',7,+
.ealth insurance, which is coverage for individuals to protect them against medical costs, is a highly charged and political issue in the +nited "tates, which does not have sociali8ed health coverage &n theory, the mar!et for health insurance provision should function in a manner similar to other insu insura ranc ncee cove covera rage ge,, bu butt the the s!yr s!yroc oc!e !eti ting ng cost cost of heal health th cove covera rage ge has has disrupted disrupted mar!ets mar!ets around around the globe, but perhaps perhaps mos mostt glaringly glaringly in the +"
$ental insurance, li!e health insurance, is coverage for individuals to protect them against dental costs $ental insurance usually goes hand9in9hand with health insurance, with most people in the +nited "tates receiving it included in their health insurance plan from their employer Along with receiving dental dental insura insurance nce from from you yourr emplo employer yer,, there there are ways ways to recei receive ve dental dental insura insurance nce throug through h resell resellers ers and compan companies ies for indivi individua duals ls and famili families es although this way tends to be too e4pensive for most people
%C
OVERVIEW OF INDIAN INSURANCE SECTOR The &nsurance sector in &ndia governed by &nsurance Act, 1J7I, the ife &nsu &nsura ranc ncee (orp (orpor orat atio ion n Act, Act, 1J 1J;@ ;@ and and 6ene 6enera rall &nsu &nsura ranc ncee Busi Busine ness ss >*at >*atio iona nali lisa sati tion on?? Act, Act, 1J 1JC% C%,, &nsu &nsura ranc ncee -egu -egula lato tory ry and and $eve $evelo lopm pmen entt Authority >&-$A? Act, 1JJJ and other related Acts 0ith such a large population and the untapped mar!et area of this population &nsurance happens to be a very big opportunity in &ndia Today it stands as a business growing at the rate of 1;9% per cent annually Together with ban!ing services, it adds about C per cent to the countryEs 6$< &n spite of all this growth the statistics of the penetration of the insurance in the country is very poor *early IQ of &ndian populations are without ife insurance cover and the .ealth insurance This is an indicator that growth potential for the insurance sector is immense in &ndia &t was due to this immense growth that the regulations regulations were introduced introduced in the insurance insurance sector sector and in continuat continuation ion 'Mal 'Malho hotr traa (omm (ommit itte tee3 e3 was was cons consti titu tute ted d by the the go gove vern rnme ment nt in 1J 1JJ7 J7 to e4amine the various aspects of the industry The !ey element of the reform process was
PRESENT SCENARIO OF INSURANCE INDUSTR!
&ndia &ndia with with about about % % millio million n middle middle class class househo household ld shows shows a huge huge untapped potential for players in the insurance industry "aturation of mar!ets in many developed economies has made the &ndian mar!et even more attractive for global insurance majors The insurance sector in &ndia has come to a position of very high potential and com competi petiti tive vene ness ss in the the mar! mar!et et &ndi &ndian ans, s, have have alwa always ys seen seen life life insurance as a ta4 saving device, are now suddenly turning to the private sector that are providing them new products and variety for their choice %I
(onsumers remain the most important centre of the insurance sector After the entry of the foreign players the industry is seeing a lot of compet competiti ition on and thus thus impro improvem vement ent of the custom customer er servic servicee in the industry industry (omputeri8a (omputeri8ation tion of operation operationss and updating updating of technolog technology y has become imperative in the current scenario 2oreign players are bringing in international best practices in service through use of latest technologies The insu insuran rance ce agent agentss still still rema remain in the the main main sourc sourcee throug through h which which insurance products are sold The concept is very well established in the country li!e &ndia but still the increasing use of other sources is imperative At present the distribution channels that are available in the mar!et are listed below • $irect selling • (orporate • 6roup
selling
• Bro!ers •Banc
agents
and cooperative societies
assurance
(ustomers have tremendous choice from a large variety of products from pure term >ris!? insurance to unit9lin!ed investment products (ustomers (ustomers are offered unbundled products with a variety of benefits as riders from which they can choose More customers are buying products and services based on their true needs and not just traditional moneybac! policies, which is not considered very appropriate for long9term protection and savings There is lots of saving and investment plans in the mar!et .owever, there are still some !ey new products yet to be introduced 9 eg health products The The rura rurall cons consum umer er is no now w e4hi e4hibi biti ting ng an incr increa easi sing ng prop propen ensi sity ty for for insurance products A research conducted e4hibited that the rural consumers are willing to dole out anything between -s 7,; and -s %,J as premium each year &n the insurance the awareness level for life insurance is the high highes estt in rura rurall &ndi &ndia, a, bu butt the the cons consum umer erss are are also also awar awaree abou aboutt mo moto tor, r, accidents and cattle insurance &n a study conducted by MA-T the results showed that nearly one third said that they had purchased some !ind of insurance with the ma4imum penetration s!ewed in favor of life insurance
%J
The study also pointed out the private companies have huge tas! to play in creating awareness and credibility among the rural populace The perceived benefits of buying a life policy range from security of income bul! return in future future,, daught daughterD erDss marria marriage, ge, chil childr drenD enDss educat education ion and and good good return return on on savings, in that order, the study adds
7
CHAPTER -3
ABOUT
ADI!TA BIRLA ROUP
PROFILE OF ADIT!A BIRLA ROUP
71
The A'* B'4 #7 is a multinational corporation based in Mumbai, Mumbai, &ndia &ndia and operation operationss in % countries countries including including Thailand, Thailand, aos, aos, &ndonesia, &ndonesia,
The origins of Aditya Birla 6roup can be traced bac! to the 1Jth century when "eth "hiv *arayan Birla started trading in cotton in the town of
group attained new heights and it became worldDs largest producer of viscose staple fiber, the largest refiner of palm oil, the third largest producer of insulators and the si4th largest producer of carbon blac! After Aditya BirlaDs demise his son Oumar Mangalam Birla too! over the charge of the group and under his leadership the group has sustained the numero uno position in the sectors in which it operates
M># A+%':&, #6 A'* B'4 #7 • • • • • • • •
argest single location copper smelter argest aluminium rolling company *o1 in viscose staple staple fibre The third largest producer of insulators The fourth largest producer of carbon blac! The eleventh largest cement producer and the second largest in &ndia Among the best energy efficient fertili8er plants Among the worlds top 1; and &ndiaDs top three B<) company
77
CHAPTER -?
INTRODUCTION
ABOUT
BIRLA SUN LIFE INSURANCE COMPAN!
7:
COMPAN! PROFILE
This company is a merge between two companies Aditya Birla 6roup Both these companies are famous About this company it is also !nown as B"& in mar!et this company spent their carrier just C years in mar!et but now this company stand in mar!et in a remar!able position
1 Birla Birla "un ife &nsur &nsuranc ancee pione pioneere ered d the unique unique U,' U,' L',< L',< L'6 L'6 I,7,+ S#47'#, in &ndia
% 0ithin : years of its launch, B"& has cemented itsposition as a leading player in the
: Multi $istribution (hannels9 $irect "ales 2orce, Alternate (hannels and 6roup offering convenient channels of purchase to customers
; 0eb9enabled &T systems for superior customer services @ 2irst to have issued policies over the &nternet C (orp (orpor orat atee go gove vern rnan ance ce and and a high high degr degree ee of tran transp spar aren ency cy in all all business practices and procedures procedures
I 2irst to have an operational Business (ontinuity
7;
BIRLA SUN LIFE INSURANCE INSURANCE Birla sun life insurance company limited is a joint venture between the Aditya Birla 6roup and the sun ife 2inancial services of (anada &t started its operat operation ionss in March March % %1 1 after after receiv receiving ing its regist registrat ration ion licens licensee in Fanuary %1 B"&Es core strategy since inception has been toE create valueE for all its sta!eholders This has been driven through innovative and customer focused products and a multi channel distribution capability in individual and group insurance The company started its operations with the launch of innovative unit9lin!ed insurance products, being the first private life insurance company in &ndia to do so The company has geared up through superior value creation and technology in fulfilling its aims to provide multiple products and and bene benefi fits ts grea greate terr inve invest stme ment nt op oppo port rtun unit itie iess and and to prov provid idee the the vast vast investor popular in &ndia with better liquidity and security The transition of the insurance industry in &ndia from a public monopoly to a compet competiti itive ve enviro environm nment ent presen presents ts intere interesti sting ng opp opport ortuni unitie tiess both both to the insurance players as well as to the customers B"& plans to spot emerging trends and capitali8e on these opportunities for the benefit of its customers B"& B"& aims aims at bein being g a lead leader er in prod produc uctt inno innova vati tion on with with new new prod produc ucts ts designed to cater to specific customer needs The company has a clear thrust on investment lin!ed insurance products and believes in ma4imi8ing ma4imi8ing investment returns for the policyholders &ts unit9 lin!ed lin!ed produc products ts offer offered ed varied varied inves investm tment ent option optionss for for policy policyhol holde ders rs to choose, based on their ris! appetite B"& has been fully complying with its rural services networ! of the group is being tapped for this purpose &ts clients have already appreciated the companyEs superior underwriting processes and infrastructure &ts direct sales force of more than @, high quality licensed insurance advisors in major cities and towns in &ndia are the companyEs flag bearers The companyEs insurance advisors in major cities and towns in &ndia are the companyEs flag bearer The companyEs insurance adviso advisors rs have have qualif qualified ied for for the prest prestigi igious ous Millio Million n $ollar $ollar -ound -ound Table Table 7@
>M$-T?, ()T and T)T, one of the highest international honors in the life insurance industry, in all the years of its operations
Birla sun life insurance pioneered the unique +nit in!ed ife &nsurance "olutions in &ndia 0ithin : years of its launch, B"& has cemented its position as a leading player in the private private life insurance industry There has been focus on &nvestment in!ed &nsurance
♦
Multi $istribution channels 9 $irect "ales 2orce, Alternate (hannels and 6roup offering convenient channels of purchase to customers 0eb9 enabled &T systems for superior customer services
♦
2irst to have issued policies over the &nternet
♦
(orp (orpor orat atee go gove vern rnan ance ce and and a high high degr degree ee of tran transp spar aren ency cy in all all business practices and procedures procedures ♦ 2irst to have an operational Business (ontinuity
♦
"trong fundamentals based on the Aditya Birla groupDs groupDs local insight and "un ife financials global financials global e4pertise
VISION To create long term value along with mar!et leadership MISSION
To help people mitigate ris!s of life, accident, health and money at all stages and under all circumstances nhance the financial future of our customers, including enterprises
7C
M># P4* O6 B'4 S7, L'6 I,7,+
VALUES
7I
R &ntegrity R (ommitment R
74%
100% Equity Share
26%
V'#7 #7+ #66 ;* BSLI 7J
2le4i ife ine 2le4i (ash 2low 2le4i "ave
BSLI A+%':&, • B"&
!nown for best practices that were adopted by &-$A for the industry
• B"&
pioneered +&
• B"&
has the best claim ratio in the industry9 An outstanding 7%Q
• B"&
is the 7rd largest in the group segment :
• B"&
has been considered a role model for Banc assurance in the industry 5 has C ban! relationships B"& B"& is rapidl rapidly y develo developin ping g its altern alternate ate channe channels, ls, with with 1JC 1JCS S relati relations onship hips, s, includes premier relations li!e A- insurance, +T& securities 5 -eliance retail
•
•
I&#: &< % "ales growth of 17IQ =T$ 2ebEI against private
industry growth of J:Q and top C playersE growth of 1Q, ',+',8 &< % 6#& 5.3@ # .3@. •
S#,8 S#,8 67, 6#&, 6#&,+ + 1% month &nvestment performance best in &ndustry
for most of the leading funds
:1
CHAPTER -5
OBJECTIVE OF THE STUD!
AND
RESEARCH METHODOLO!
RESEARCH -esearch refers to the systematic method consisting of enumerating of problem, formulating the hypothesis, collecting the facts or data, analy8ing the facts and reaching certain conclusions either in the form of solutions towards the concerned problem or in certain generali8ations for some theoretical formulation formulation :%
NEED FOR RESEARCH very mar!et has to be competitive in his operation to survive and also able to ma!e more profits To achieve their objectives they must be careful about their customers They must !now the satisfaction level of the customer (ustomer is the !ing of the mar!et TodayEs mar!et is directed by the customer, so it is necessary for each and every type of business to !now about the varying nature of their customers, by which they can provide best services to them By this they will be able to retain the customer for a long period All this results in increased sales, higher mar!et share and more profits &f a company !nows about the needs and behavior of its customers, then it can develop its strategies strategies according according to their their need need &t is also said that the cost of attracting a new customer is five times more than as e4isting customer "o a company should try to satisfy its customers "o thatEs why 'B&-A "+*&2 &*"+-A*( T$3 has decided to do a research to !now the buying behavior of its customers, because they want to !now about the view point of its customers
OBJECTIVES OF THE RESEARCH
The objectives of the research are as follows#9 1 To access access the aware awareness ness of the people people about about the the policies policies of of the sun life :7
% To !now !now about about the view points points of the custom customers ers toward towardss the B&-A "+*&2 &*"+-A*( T$ 7 To acce access ss the the leve levell of sati satisf sfac acti tion on towa toward rdss the the po poli lici cies es of B&-A "+*&2 &*"+-A*( T$ : To !now about about the e4pecta e4pectatio tion n of the custom customers ers toward towardss the different policies
RESEARCH METHODOLO!
M,',8 #6 R+% M%##4#8*9::
A research methodology defines what the activity of research is, how to proceed, how to measure measure progress, and what what constitutes success M%##4#8* is defined as 1 Nthe Nthe anal analys ysis is of the the prin princi cipl ples es of meth method ods, s, rule rules, s, and and po post stul ulat ates es employed by a disciplineN or % Nthe developm development ent of methods, methods, to be applied applied within within a discipline disciplineNN 7 Na particul particular ar procedur proceduree or set of of procedure proceduresN sN
-esearch methodology is a way to systematically solve the research problem &t may be understood as a science of studying how research is done scientifically &t is necessary for the researcher to !now not only the research methodsK techniques but also the methodology -esearcher not only need to !now how to develop certain indices or tests, how to calculate the mean, median, mode or the standard deviation or chi9square, how to apply a particular research technique, but they also need to !now which of these methods or techniques, are relevant and which are not
R+% &%##4#8* # ; # 6# % 7* ' 6#44#$I,'6'+'#, #6 % #;4&The resear research ch projec projectt relate relatess to ‘()*" ‘()*"+M +M- B.A/ B.A/&)&)- T)0A-$ T)0A-$" " B&-A "+*&2 &*"+-A*( T$E &n it the problem proposed is to be researched is find out what is the behavior of the consumer towards the diff differ eren entt po poli lici cies es or the the inve invest stme ment nt plan planss of the the B&- B&-A A "+* "+*&2 &2 &*"+-A*( T$
P4,,',8 % +% '8,A suitable design has to be planned for any mar!et research &t is the mar!et plan specifying the procedure for collecting 5 analy8ing the needed information As per objective of the study mainly there are four types of research design vi8# e4perimental, diagnostic, descriptive 5 e4ploratory
:;
.ere e4ploratory research design is proposed with focus on discovering of ideas 5 insight about the particular problem P4,,',8 % &4 '8,The target for the the study was consumers consumers of udhiana "urvey has been done using questionnaire method, open and close9 ended questions being included in the questionn questionnaire aire The secondar secondary y data for the researc research h study has been coll collec ecte ted d from from vari variou ouss maga maga8i 8ine nes, s, news newspa pape pers rs,, jour journa nals lsE, E, bo boo! o!ss and and websites Major mar!et players in the products the relevant areas have also been consulted for the research S&4 '=The sample si8e of the research project has been ta!en 1 of the customers of udhiana D +#44+'#,The relevant data for the research project is hybrid of primary and secondary data P'&* +sing personal interview technique, survey, questionnaire 5 observation method the data has been collected from targeted focus groups, which are customers The primary data collection for judgment sampling has done This purpose has been formatted with both open 5 close ended structured questions S+#,* &n addition to the reactions of the selected consumers segments, the factual inform informati ation on histor historic ic bac!gr bac!groun ound d includ including ing the sales sales volum volumee by vario various us manufactures of the product has been collected with the help of various tradeK tradeKbus busine iness ss journa journals, ls, compan company y maga8 maga8ine ines, s, brochu brochures res,, and compan company y reports and concern trade association reports
:@
LIMITATIONS OF THE STUD!
imitations of the study are as follows#9 1 The preparati preparation on and interpr interpretati etation on of data may may not be 1Q free free from errors and may be effected by the respondents biased mindset to some e4tend % "ampling "ampling si8e si8e of targeted targeted custom customer er is small, small, so the response response may not not give true reflections of the mental framewor! of the population 7 FudgmentK FudgmentK convenie convenience nce sampling sampling will will be used, used, so the data may may not be of that that qualit quality y level level as obtain obtained ed by comple complete te enume enumerat ration ion surve survey y which is not possible due to financial and time constraints
:C
CHAPTER -
INTREPRETATION
AND
DATA DATA ANAL ANAL!SIS !SIS
ANAL!SIS 120
1 Are you aware about B&-A "+*&2 TOTAL &*"+-A*( T$U YES 100 *) > ? s =" > ? t n e d n o p s e r f o . o n
80 Series1
60
Series2 40 20 YES 0
NO
NO
TOTAL
:I
I,'#, The above analysis shows that all the respondents are aware about Birla "un ife &nsurance ltd
% .ow do you come to !now about B&-A "+*&2 &*"+-A*( T$U ANY ANY OT(E! OT(E! $!EN&S T.V 2% '% 13%
T.V NEWSAE!
NEWSAE ! 24%
A"ENTS A"ENTS $!EN&S ANY OT(E! OT(E!
A"ENT A"ENTS S #2%
I,'#, The above table shows that out of the 1 respondents ;% respondents came to !now about Birla "un ife from agents, %: from newspapers, 17 from T/, J from friends and % from any other sources
7 Are you satisfied with the policies provided by B&-A "+* &2 &*"+-A*( T$U :J
Sstisfation !e"e!
NO 26%
YES NO YES 74%
INTERPRETATION 2rom the above analysis we came to !now that out of 1 respondents C: respon responden dents ts are satisf satisfied ied with with the polici policies es provid provided ed by Birla Birla "un ife ife insurance and %@ respondents are not satisfied with the policies provided by Birla "un ife insurance insurance &t means that mostly people are satisfied satisfied with the policies provided by by B"&
: .ow you rate the policies provided by B&-A "+*&2U
Ratin# t$e po!iies
E)*ELLENT 20%
"OO& '% AVE!A"E 16%
"OO& AVE!A"E VE!Y "OO& E)*ELLENT
VE!Y "OO& ##% INTERPRETATION The above analysis shows that out of 1 respondents ;; rate the policies of Birla "un ife &nsurance as very good, 1@ rate it as average, J rate it as good and % rate it as e4cellent
; 0hat you li!e in the policies of B&-A "+*&2 &*"+-A*(U
;
INTERPRETATION The above table shows that out of 1 respondents :; respondents li!e the policy because of low premium allocation charges, 7I li!e it because of rate of return, J li!e it because of surrender value and I li!e it because of affordable premium
@ .ow you feel the behavior of B"&Es employers employers while interacting interacting with themU Be$a"ior of BS%I&s BS %I&s e'p!o(ers e'p!o(ers
"OO& 4%
AVE!A"E 12%
E)*ELLENT 37%
"OO& AVE!A"E AVE!A"E VE!Y "OO& E)*ELLENT
VE!Y "OO& 47%
INTERPRETATION Re!ia)i!it( Re!ia)i!it( of BS%I BS% I The above analysis shows that out of 1 respondents : respondents feel the behavior of B"&Es employers as good, 1% feel the behavior of B"&Es employers as average, :C feel the behavior of B"&Es employers as very NO good, and 7C feel the behavior of B"&Es employers as e4cellent 11%
C $o you thin! that B"& is reliable in the coming futureUYES NO
YES
;1
INTERPRETATION The above table shows that out of the 1 respondents IJ respondents feel that the B"& is reliable in the coming future and 11 respondents feel that B"& is not reliable in the coming future
I I $o yo you u thin thin! ! that that B&- B&-A A "+* "+*&2 &2 is wor! wor!in ing g bett better er than than its its competitorsU
NO 26% YES NO
YES 74%
INTERPRETATION The above table shows that out of 1 respondents C: respondents thin! that B"& is wor!ing better than its competitors and %@ respondents thin! that B"& is not wor!ing better than its competitors
J Are you satisfied with the after sales services provided by B"&U ;%
Satisfation a)o*t after sa!es ser"ies
NO 12%
YE S
YES 88%
INTERPRETATION 2rom the above analysis & came to !now that out of 1 respondents II respondents are satisfied with the after sales services provided by Birla "un ife &nsurance ltd and 1% respondents are not satisfied with the after sales services provided by Birla "un ife &nsurance ltd This means that mostly people are satisfied with the after sales services provided by Birla "un ife &nsurance ltd
1 1 $o yo you u thin thin! ! that that the the plan planss prov provid ided ed by B&- B&-A A "+* "+*&2 &2 are are beneficialU
NO 22% YES NO
YES 78%
;7
INTERPRETATION The above table shows that out of 1 respondents CI respondents thin! that the plans provided by Birla "un ife are beneficial and %% respondents thin! that the plans provided by Birla "un ife are not beneficial
FINDINS OF THE STUD!
2indings of the research study are as follows#9
2rom the survey, we came to !now that most of the people are aware about the 'B&-A "+* &2 &*"+-A*( &M&T$3
;:
2rom the survey, we came to !now that most of the people those who are insured are satisfied with the policies provided by B&-A "+* &2 &*"+-A*( &M&T$
The survey shows that most of the people rate the policies of B&-A "+* &2 &*"+-A*( are very good but not e4cellent This means that they want something e4tra in their policies
The survey shows that mostly people li!e low premium allocation charges and rate of return in the policies of B&-A "+* &2 &*"+-A*( &M&T$
2rom the survey, we came to !now that most of the people li!e the behavior of the B"&Es employees as very good This means that they treat their customers well
2rom the survey, we came to !now that most of the people have reliability in 'B&-A "+* &2 &*"+-A*( &M&T$3
2rom 2rom the the surv survey ey,, we came came to !n !now ow that that 'B&'B&-A A "+* "+* &2 &2 &*"+-A*( &M&T$3 is wor!ing better than its competitors or in the other words it is satisfying the customers
The survey shows that most of the people thin! that the plans of B"& are beneficial
;;
2rom the survey, we came to !now that people want the policies which have maturity period of above 1; years This means that customers want long term policies
2rom 2rom the the surv survey ey,, we came came to !n !now ow that that 'B&'B&-A A "+* "+* &2 &2 &*"+ &*"+-A -A*( *( &M& &M&T T$3 $3 has has a very very go good od imag imagee amon among g the the people This shows that people believe in brand name of 'B&-A "+* &2 &*"+-A*( &M&T$3
CHAPTER - ;@
SUESTIONS
AND
RECOMMENDATIONS
SUESTIONS AND RECOMMENDATIONS
The suggestion and recommendations are as follows
&t is suggested that company need to establish new branches in villages and small cities by this company can move more better
;C
Theree shou Ther should ld be cash cash depo deposi sitt faci facili lity ty in each each and and ever every y branch of the company so that customer can get better services
There There sho should uld be limit limit of finan financia ciall adviso advisorr und under er agency agency manager and the limited amount of these advisor can handle it easily
The company should also need to begin some small duration and small amount of investment because in &*$&A there are many peoples who are wor!ing in poor line or below poverty line
The company has to start monthly premium plans to attract the customers
They need They need to ma!e ma!e some some pres presen enta tati tion on amon among g the the sm smal alll villages this ma!e people education about insurance sector
Their is need to use proper advertisement channels to ma!e a good brand image
There should need to attract the advisors there is need to pay some basic salary
&n this survey & also get that ma4imum customers changing changing their mind now they going to prefer B"& products
;I
2rom this survey & also get now B&-A "+*&2 &*"+-A*( having a good brand image in the eyes of customers
;J
CHAPTER –
APPENDI
AND
BIBLIORAPH!
UESTIONNAIRE
PERSONAL DETAIL
@
*AMVVVVVVVVVVVVVVVVVVVVVVV *AMVVVVVVVVVVVVVVVVVVVVVVV A$$-""VVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVV ()*TA(T *)VVVVVVVVVVVVVVVVVVVVVVVV *)VVVVVVVVVVVVVVVVVVVVVVVVV V )((+ ? B+"&*"" > ? "T+$*T > ? <-)2""&)* > ? 1 Are you aware about B&-A "+*&2 &*"+-A*( T$U =" > ? *) > ? % .ow do you come to !now about B&-A "+*&2 &*"+-A*( T$U T/ > ? *0" ? A6*T > ? 2-&*$ > ? A*= )T.- > ? 7 Are you satisfied with the policies provided by B&-A "+*&2 &*"+-A*( T$U =" > ? *) > ? : .ow you rate the policies provided by B&-A "+*&2U 6))$ > ? A/-A6 > ? /-= 6))$ > ? W(*T > ? ; 0hat you li!e in the policies of B&-A "+*&2 &*"+-A*( U -AT )2 -T+-* > ? A22)-$AB <-M&+M > ? )0 <-M&+M <-M&+M A)(AT&)* A)(AT&)* (.A-6" (.A-6" > ? "+--*$- /A+ > ? @1
@ .ow you feel the behavior of B"&Es employers employers while interacting interacting with themU 6))$ > ? /-= 6))$ > ? A//-A6 A6 > ? W( W( * *T T> ? C $o you thin! that that B"& is reliable in the coming coming futureU =" > ? *) > ?
I I $o yo you u thin thin! ! that that B&- B&-A A "+* "+*&2 &2 is wor! wor!in ing g bett better er than than its its competitors U =" > ? *) > ? J $o yo you u thin thin! ! that that the the plan planss prov provid ided ed by B&- B&-A A "+* "+*&2 &2 are are beneficial U =" > ? *) > ? 1 Any suggestions suggestions and recommendation recommendation U VVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVV VVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVV VVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVVVVVVVVVVVVVV VVVVVVVVVVVVVVVVV VVV
T.A*O"
BIBLIORAPH!
•
http#KKwwwadityabirlacomKourVcompaniesKjointVventuresKbirlasun lifeVinsurancehtm @%
•
http#KKenwi!ipediaorgKwi!iK( http#KKenwi!ipediaorgKwi!iK(onsumerVbehav onsumerVbehaviour iour
•http#KKwwwbirlasunlifecom http#KKwwwbirlasunlifecomKBirla"unifeK&n KBirla"unifeK&nsuranceKB"&VM
utusK(ompanyV
http#KKwwwbirlasunlifecom http#KKwwwbirlasunlifecomKbirlasunlifeKind KbirlasunlifeKinde4asp4 e4asp4
http#KKwwwbirlasunlifecomKBirla"unifeK&n KBirla"unifeK&nsuranceKB"&VM
•http#KKencyclopediathefreedictio http#KKencyclopediathefreedictionarycomK-esearc narycomK-esearchSmethodology hSmethodology
B##<
-ajan sa4ena 'Mar!eting Management3
-esearch Methodology
by Oothari
SWOT ANAL!SIS
"T-*6T." 1 2inanc 2inancia iall "ound "oundnes nesss % arge arge (ust (ustome omerr Base Base @7
7 : ; @ C
Bran Brand d *ame *ame (ustom (ustomer er loyal loyalty ty 2le4 2le4ib ibil ilit ity y (ontin (ontinues ues 6rowt 6rowth h 6ood 6ood &m &mag agee
WEANESS 1 ac! ac! of branc branches hes in in rural rural areas areas % Becaus Becausee of non availab availabili ility ty of electro electronic nic cash servic services es the monthly premium facility can not be provided to the spo!e branch customer customer 7 *on availab availabilit ility y of cash deposit deposit in spo!e branc branches hes : *on availab availabilit ility y of intranet intranet facil facility ity ; ac! ac! of tradition traditional al plans plans OPPURTUNTIES 1 oo oo!i !ing ng to estab stabli lish sh their heir bra branche nchess in sm smaall citi citiees and villages % oo!ing oo!ing to cover cover large large insure insured d people people 7 oo!ing oo!ing to launch new product productss in mar!et to attract attract custome customer r : oo!ing oo!ing to reach reach at at first first position position ;
THREATS
1 Mutu Mutual al fund funds s % &( 7 Ma4 new =or! life insurance insurance @:
: "har "haree Mar Mar!e !ett ;
CONCLUSION
The training period has been a very valuable e4perience for me from the entire study conducted & became well acquainted with the 'B&-A "+* @;
&2 &*"+-A*( &M&T$3 and the various processes followed by it The mar!et share of 'B&-A "+* &2 &*"+-A*( &M&T$3 is : Q for for the the last last qu quar arte ter r $uri $uring ng the the trai traini ning ng peri period od we cam came to !n !now ow that that 'B&-A "+* &2 &*"+-A*( &M&T$3 has a very strong customer base The employees of 'B&-A "+* &2 &*"+-A*( &M&T$3 are very dedicated towards their wor! and wor!ing for the betterment of the organi8ation The policies provided or offered by the 'B&-A "+* &2 &*"+ &*"+-A -A*( *( &M& &M&T T$3 $3 are are very very bene benefi fici cial al for for the the vari variou ouss type type of customers $uring the survey of our project report we came to !now that people are very satisfy with the policies of the company and they have the reliability regarding their investments 0or!ing with the 'B&-A "+* &2 &*"+-A*( &M&T$3 we came to !now that people want low premium and monthly premium plans Most of the the peop people le are are awar awaree abou aboutt the the 'B&'B&-A A "+* "+* &2 &2 &*"+ &*"+-A -A*( *( &M&T$3 but the people of villages are not too much aware about it, so company should try to advertise itself through the radio by which the people of villages can also come to !now about it Through the survey we also came to !now that 'B&-A "+* &2 &*"+-A*( &M&T$3 has a very strong brand image among the people and it is the major competitor of &(, MAW *0 =)-O, and BAFAF A&A*H
@@
