Professional Documents
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Marketing Strategy
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategies includes all basic and longterm activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives.
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Marketing Mix
A mixture of several ideas and plans followed by a marketing representative to promote a articular product or brand is called marketing mix. Several concepts and ideas combined together to formulate final strategies helpful in making a brand popular amongst the masses form marketing mix.
The elements of marketing mix are often called the four Ps of marketing.
1) PRODUCT A product means what we produce. If we produce goods, it means tangible product and when we produce or generate services, it means intangible service product. A product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and therefore services are their product. In India, the Life Insurance Corporation of India (LIC) and the General Insurance Corporation (GIC) are the two leading companies offering insurance services to the users. Apart from offering life insurance policies, they also offer underwriting and consulting services. 2) PRICING With a view of influencing the target market or prospects the formulation of pricing strategy becomes significant. The pricing in insurance is in the form of premium rates. The three main factors used for determining the premium rates under a life insurance plan are mortality, expense and interest. The premium rates are revised if there are any significant changes in any of these factors. Mortality: (deaths in a particular area) When deciding upon the pricing strategy the average rate of mortality is one of the main considerations. In a country like South Africa the threat to life is very important as it is played by host of diseases. Expenses: The cost of processing, commission to agents, reinsurance companies as well as registration are all incorporated into the cost of installments and premium sum and forms the integral part of the pricing strategy.2 | Journal of Management and Science - JMS ISSN 2250-1819 (Online) / ISSN 2249-1260 (Printed)
Interest: The rate of interest is one of the major factors which determines people's willingness to invest in insurance. People would not be willing to put their funds to invest in insurance business if the interest rates provided by the banks or other financial instruments are muchgreater than the perceived returns from the insurance premiums.
3) PLACE
This component of the marketing mix is related to two important facets i) Managing the insurance personnel, and ii) Locating a branch. The management of agents and insurance personnel is found significant with the viewpoint of maintaining the norms for offering the services. This is also to process the services to the end user in such a way that a gap between the services- promised and services -- offered is bridged over. In a majority of the service generating organizations, such a gap is found existent which has been instrumental in making worse the image problem. The transformation of potential policyholders to the actual policyholders is a difficult task that depends upon the professional excellence of the personnel. The agents and the rural career agents acting as a link, lack professionalism.
4) PROMOTION The insurance services depend on effective promotional measures. In a country like India, the rate of illiteracy is very high and the rural economy has dominance in the national economy. It is essential to have both personal and impersonal promotion strategies. In promoting insurance business, the agents and the rural career agents play an important role.
Due attention should be given in selecting the promotional tools for agents and rural career agents and even for the branch managers and front line staff. They also have to be given proper training in order to create impulse buying. Advertising and Publicity, organisation of conferences and seminars, incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions, participation in fairs and festivals, rural wall paintings and publicity drive through the mobile publicity van units would be effective in creating the impulse buying and the rural prospects would be easily transformed into actual policyholders.
5) PEOPLE Understanding the customer better allows to design appropriate products. Being a service industry which involves a high level of people interaction, it is very important to use this resource efficiently in order to satisfy customers. Training, development and strong relationships with intermediaries are the key areas to be kept under consideration. Training the employees, use of IT for efficiency, both at the staff and agent level, is one of the important areas to look into. Human resources can be developed through education, training and by psychological tests. Even incentives can inject efficiency and can motivate people for productive and qualitative work.
6) PROCESS The process should be customer friendly in insurance industry. The speed and accuracy of payment is of great importance. The processing method should be easy and convenient to the customers. Installment schemes should be streamlined to cater to the ever growing demands of the customers. IT & Data Warehousing will smoothen the process flow.
IT will help in servicing large no. of customers efficiently and bring down overheads. Technology can either complement or supplement the channels of distribution cost effectively. It can also help to improve customer service levels. The use of data warehousing management and mining will help to find out the profitability and potential of various customers product segments.3 | Journal of Management and Science - JMS ISSN 2250-1819 (Online) / ISSN 2249-1260 (Printed) A. Flow of activities: all the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. B. Standardization: banks have got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. C. Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. D. Number of stores: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. E. Simplicity: in banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further.
7) PHYSICAL DISTRIBUTION Distribution is a key determinant of success for all insurance companies. Today, the nationalized insurers have a large reach and presence in India. Building a distribution network is very expensive and time consuming. Technology will not replace a distribution network though it will offer advantages like better customer service. Finance companies and banks can emerge as an attractive distribution channel for insurance in India. In Netherlands, financial services firms provide an entire range of products including bank accounts, motor, home and life insurance and pensions. In France, half of the life insurance sales are made through banks. In India also, banks hope to maximize expensive existing networks by selling a range of products.The physical evidences include signage, reports, punch lines, other tangibles, employees dress code etc. A. Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services.
B. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers. Banking marketing consists of identifying the most profitable markets now and in future, assessing the present and future needs of customers, setting business development goals, making plans-all in the context of changing environment.
1. Consumer
The principle of four Cs of marketing states that your customer should be your prime focus. Unlike the traditional marketing mix where the primary focus is on Products, in the 4 Cs model, the primary focus is on the customer. Thus the companies which follow this model believe in making products which satisfy their customers. They are generally ready to offer customizable products and because they have a general set of target customers, this principle is only applicable for smaller market segments and not for mass markets. For mass markets, the traditional marketing mix can be used.
2. Cost
Cost is equivalent to Pricing in the traditional marketing mix. Cost is a very important consideration during consumer decision making and hence in the 4 Cs principle, the cost variable is given special attention. The 4 Cs model generally plans on the basis of Customers and not products. And hence they have to plan the cost of the product on the basis of their customer. If you are targeting a SEC A segment, then the costing of the product needs to be premium to have proper psychological positioning. On the other hand, if your product is for the SEC B and SEC C classes, then it needs to have a lower costing. Thus over here, costing of the product depends on the customer.
3. Communication
The concept of communication remains same for both, the traditional marketing mix as well as for the 4 Cs of marketing. Off course, the marketing communications for a company following the 4 Cs of marketing is completely different as it needs a completely different Segmentation, targeting and positioning. As said before, the 4 Cs of marketing are generally used for Niche products. The media vehicles used for marketing communications for a mass product and that for a niche product are different. A niche marketing company might use more of BTL rather than ATL whereas in a mass marketing company, ATL communications are very important.
4. Convenience
Convenience is equivalent of distribution or placement of the traditional marketing mix. When you have a niche customer base, the convenience of the customer in acquiring your product plays a critical role. Take a niche product like Heavy machinery as an example or even products like television and air conditioners. What if the companies who sell these products do not give you delivery and installation. You will not buy the product as you wont be ready to pick up the machine and install it yourself. You will be looking out for your own convenience. Thus convinience, like distribution, plays a critical role. The customer will not buy your product if it is not convenient to him.
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1.3
In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. The Oriental Life Insurance Company, the first corporate entity in India offering life insurance coverage, was established in Calcutta in 1818 by BipinBehariDasgupta and others. Europeans in India were its primary target market, and it charged Indians heftier premiums. The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included:
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Indian Mercantile
General Assurance
The first 150 years were marked mostly by turbulent economic conditions. It witnessed, India's First War of Independence, adverse effects of the World War I and World War II on the economy of India, and in between them the period of world wide economic crises triggered by the Great depression. The first half of the 20th century also saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. This had adversely affected the faith of the general public in the utility of obtaining life cover.The LIFE INSURANCE Act and the Provident Fund Act were passed in 1912, providing the first regulatory mechanisms in the Life Insurance industry. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound ventures fail. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry.
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Why life Insurance :Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void.
1. Protection
3. Liquidity
2. Aid to Thrift
4. Tax Relief
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Nationalization
In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram KishanDalmia, owner of the Times of India newspaper, was sent to prison for two years. Eventually, the Parliament of India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance Corporation of India was created on 1956-09-01, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, including the life insurance. The company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices.
a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers is evidenced in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatization was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average.
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1.4 Introduction
COMPANY PROFILE
Founder
Few men in history have made as dramatic a contribution to their country's economic progress as did the founder of Reliance, Shri. Dhirubhai H. Ambani. Fewer still have left behind a legacy that is more enduring and timeless. As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India's capital markets, and the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of India's greatest wealth creator. In one lifetime, he built from scratch, India's largest private sector enterprise. When Dhirubhai embarked on his first business venture, he had a seed capital of only about US$ 300 (around Rs. 14,000). Over the next three and a half decades, he converted this fledgling enterprise into a 60,000 crore colossusan achievement which earned Reliance a place on the global Fortune 500 list, the first ever Indian private company to do so.
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Dhirubhai is widely regarded as the father of India's capital markets. In 1977, when Reliance Textile Industries Limited first went public, the Indian stock market was a place patronised by a small club of elite investors which dabbled in a handful of stocks. Undaunted, Dhirubhai managed to convince a large number of first-time retail investors to participate in the unfolding the Reliance story and put their hard-earned money into the Reliance Textile IPO, promising them in exchange for their trust, substantial return on their investments. It was to be the start of one of the greatest stories of mutual respect and reciprocal gain in the Indian market. Under Dhirubhai's extraordinary vision and leadership, Reliance scripted one of the greatest growth stories in corporate history anywhere in the world, and went on to become India's largest private sector enterprise. Throughout this amazing journey, Dhirubhai always kept the interests of the ordinary shareholder above all else; in the process making millionaires out of many of the initial investors in the Reliance stock, and creating one of the world's largest shareholder families.
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1.5
Reliance Capital Limited announced the launch of its life insurance business on February 1, 2006. This was after obtaining the required regulatory approvals from the Registrar Of Companies and the Insurance Regulatory and Development Authority. Reliance Life Insurance is amongst the leading private sector life insurance companies in terms of new business premium with a market share of 5% of the private sector life insurance industry. The company has over 9 million policy holders with a strong distribution network of close to 1,230 branches with over 100,000 agents as of March 31, 2013. Reliance Life offers life insurance products targeted at individuals and groups, catering to four distinct segments: protection, children, retirement and investment plans. Rated amongst the Top 3 Most Trusted Service Brands in the Insurance Category, the company aims to emerge as a transnational life insurer of global scale and standards. Reliance Capital has interests in asset management and mutual funds, stock broking, and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under section 45IA of the Reserve Bank of India Act, 1934. Reliance Capital sees immense potential in the rapidly growing financial services sector in India and aims to become a dominant player in this industry and offer fully integrated financial services. R.L.I. is another step forward for Reliance Capital Limited to offer need based Insurance solutions to individuals and Corporates.
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Journey So Far
2005 August: Anil Dhirubhai Ambani Group (ADAG) announces the acquisition of 100 percent shareholding in AMP Sanmar Life Insurance Co Ltd. 2006 January 17: Mr. Nandgopal participates in a one-day conference on Optimising growth opportunities through Distribution Matrix: Emerging Bancassurance organized by the Asia Insurance Post at the Taj President, Mumbai. February 1: Rliance Life Insurance officially launched. February 16, 17, 18: Strategy meet at the Reliance Management Institute. Amongst those who participate are the CEO, COO, Functional Heads, Regional Managers and Regional Sales Managers.
February 26: A Puja held at the Churchgate office situated in Express Building, 4th Floor, 14 E Road, Mumbai. March 1: Churchgate office inaugurated by Mr. Amitabh Jhunjhunwala, Mr. Amitabh Chaturvedi and Mr. Nandgopal. March 6: Shifting to the new premises at Churchgate commences. March 7: The new office at Chennai, at the Trapezium, First Floor, # 39, Nelson Manickam Road, inaugurated by their CEO Mr. Nandgopal, Mr. KV Srinivasan and Mr. Sureshbabu also graced the occasion.
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Types of Products
There are various types of plans provided by RLI are: 1) Traditional Plans 2) Unit Linked Plans 3) Mediclaims
Term Plans
Reliance Term Plans is a pure life insurance plan that offers you an affordable and comprehensive coverage for a limited period of time to suit your needs. Now you can provide financial security to your family, in the most cost effective manner.
Higher insurance protection at economical rates Optional 'Accidental and Disablement Rider' to enhance your protection Protect your family against financial liabilities such as loss of income
outstanding loans.
and
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Rider Benefit: You also have the option to add Accidental Death Benefit and Total and Permanent Disablement Rider. Accidental Death Benefit & Total & Permanent Disablement Rider: Accidents are unfortunate and sometimes fatal. You can customize your basic Policy with an Accidental Death Benefit and Total and Permanent Disablement Rider. The Accidental Death Benefit is payable if death occurs directly as a result of an accident and is intimated within 90 days of it occurrence. The Benefit payable is equal to the Rider Sum Assured. The minimum Sum Assured is Rs. 25,000 and the maximum under all Policies taken together is Rs.50,00,000. The Total and Permanent Disablement Rider is payable if the Life Assured becomes totally and permanently disabled directly as a result of an accident. The Disablement Benefit is equal to the basic Sum Assured paid in ten equal annual instalments. Total and Permanent Disablement is defined as the total and irrecoverable loss of sight of both eyes, or loss by severance of two limbs at or above wrist or ankle, or total and irrecoverable loss of the sight of one eye and loss by severance of one limb at or above wrist or ankle for a period of at least six months. Inbuilt Waiver of Premium In the Life Assured becomes totally and permanently disabled, then Reliance Life Insurance will waive all future premiums under the basic Policy and Riders up to a limit of Rs. 40,000 p.a.
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Guaranteed loyalty and maturity additions Double Sum Assured payable in case of accidental death An additional Sum Assured up to Rs. 50 Lacs is payable on accidental deaths Future premiums waived off Optional rider benefits to enhance protection cover
Benefits Flexible Premium Paying modes Life cover benefit Money Back Benefit Maturity Benefit Rider Benefit
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Retirement Plans
You are a young and earning individual. The income you earn allows you to enjoy life, your only worry being whether you will be able to continue the same lifestyle after retirement. A Reliance Retirement Plan will help you save money for your retirement. It ensures that you continue to get some income after retirement thereby ensuring that you do not have to depend on any other person or make any compromises to maintain the same lifestyle. Invest in a Reliance Retirement Plan today and enjoy life after retirement on your own terms.
Endownment Plans
Turn your dreams into a reality with Reliance Endowment Plans. Get the freedom to decide your Sum Assured based on your current financial position and your expected future expenses. So, go ahead and dream big!
5 Reasons to buy On maturity receive Sum Assured plus bonuses Wealth creation through bonus additions More Value for money by way of High Sum Assured Rebate Enhance life cover by opting for the following Riders - Reliance Term Life Insurance Benefit Rider, Reliance Critical Conditions Rider and Reliance Accidental Death and Total and Permanent Disablement Rider, and Reliance Life Insurance Family Income Benefit Rider Avail Policy Loan after three years
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Benefits
Life Cover Benefit: In case of unfortunate death of the life assured before the maturity date, we will pay the basic sum assured to the nominee, provided the policy is in force and all due premiums have been paid. The policy terminates on payment of death benefit.
Maturity Benefit: On survival of the life assured for the entire policy term, we shall pay the basic sum assured, provided the policy is in force and all due premium have been paid. The policy terminates on payment of maturity benefit.
Rider Benefits: Choose to add the following rider benefits on commencement of the policy or on any policy anniversary during the policy term. The frequency of rider premium will be same as the frequency of premium under the base plan.
Child Plans
Additional Benefits 1) More value for your money by way of High Sum Assured rebate 2) Choose to enhance protection through three Riders Reliance Critical Illness Rider, Reliance Accidental Death and Total and Permanent Disablement Rider and Reliance Life Insurance Family Income Benefit Rider
Life Cover Benefit: In the unfortunate event of loss of life, your Beneficiary will receive the Sum Assured Immediately and all future premiums will be waived.
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Guaranteed Fixed Benefit: Get 25% of Sum Assured every year on the last four Policy Anniversaries irrespective of the survival of the Life Assured. For example if you have taken a Policy for Rs. 1 lakh for 20 years, then Fixed Benefits payable will be Rs. 25,000 each at the end of 17th, 18th, 19th and 20th year.
Maturity Benefit: On maturity you get accumulated bonuses irrespective of the survival of the Life Assured.
Rider Benefit: You also have the option to add two additional Benefits to customize the policy as per your needs. A. Accidental Death Benefit and Total and Permanent Disablement Rider B. Critical Conditions Rider
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2) Inter Office Connectivity: All their Branch / Area and Regional offices will be interconnected to their Data Centre with a 24x7 access to Core Applications like Lotus Mail, Life-Asia and Internet Applications. This will enable their associates to work faster and better with high-speed Internet connectivity and also ensure faster Turn Around Time for their customers.
3) Customer Care Centre: They will host a centralized Customer Care Centre at Dhirubhai Ambani Knowledge City at Navi Mumbai, which cater services to internal and external queries and complications. A customer Relationship Management Tool (CRM) and Lead Management System (LMS) are in progress.
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4) Web Portal: This portal will be an interface between both internal employees and their external users. Some of the functions included in their portal are Policy Tracking Systems, Corporate News, Quality Checking System, Under Writing Medical System, and Agent Management System etc.
5) R World: Reliance Mobile R-World will provide online information about their Company, Products, and Policy Services to their existing customers, Agents/Advisors and Lead Generators.
6) SMS Alerts: SMS Alerts will be provided to their Sales Managers about the latest happenings like Contests and Campaigns, Employee Alerts will include Company News and Welcome/Birthday/Anniversary message etc. Customer Alerts will include
Welcome/Birthday/Anniversary message, Policy Dispatch Details, Policy Servicing SMS like Premium Receipt and Renewal Premium reminders etc.
7) Life and Group Asia: Single Life and Group Life details will be captured and managed by Life and Group Asia. A common middleware between these applications will enable Group Life Customers to view their individual Single Life Insurance Plan details taken with Reliance Life Insurance and vice versa.
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8) Advisor Lounge: It is a dedicated area for Reliance Life Insurance Agents/Advisors in all the branches across India. This Lounge will be equipped with desktops and printers with Internet connectivity, where their Advisors can bring in the prospects and can have discussions across the table and they can create and print quotes. The Agents/Advisors can use this area to service their existing customers.
9) Document Management System: DMS will enable both policy issuance and contract servicing through an automated workflow, which yields a faster Turn around Time to both internal and external users. This application will enable them to have a paperless office and thus mitigate the risk of losing vital records/papers.
10) Wireless Data Access: This will enable identified Top Sales Managers and Top Advisors to access real time data for both LMS and CRM on the fly through Handheld PDA device.
11) SAP ERP Modules: SAP (Finance and HR Modules), will automate the Expense, Travel and Leave Management Systems.
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CORPORATE OBJECTIVE
At R.L.I. we strongly believe that as is different at every stage, insurance must offer flexibility and choice to go with that stage. We are fully prepared and committed to guide you on insurance products and services through our well-trained advisors, backed by competent marketing and customer services, in the best possible way. It is our aim to become one of the top private insurance companies in India and to become a cornerstone of RLI integrated financial services business in India.
CORPORATE MISSION
The mission of Reliance Life Insurance Company Limited is to be the best in every spherebusiness results, customer care and employee focus. The aim of the company is to Think Bigger and Think Better. To set the standard in helping our customers manage their financial future.
FUTURE PLANS
Forty-four new branches to be opened across the country in the coming months; and a pan India presence with 162 branches in the coming year. A state-of-the-art customer care centre will provide continuous, responsive services to the caller and promptly address queries, collate feedback and suggestions from the caller, who may be both prospective and existing clientele and from channel partners in Chennai and Mumbai. It will be launching additional products aimed at providing unparalleled service to its valued clientele.
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2.1
Objectives of Study
The main objectives of study are: To understand why customer buy a particular product. To know the marketing opportunities. To get some good market exposure by dealing with the prospects face to face. To improve our ability to sell a financial product like life insurance. To know the perception of the consumer about life insurance. To get a deep knowledge of the financial product like insurance.
2.2
Research
Definition
The process of gathering, analyzing and
interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face.
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Research has been defined in a number of different ways. A broad definition of research is given by Phillip Kotler "Marketing research is systematic problem analysis, model building and fact-finding for the purpose of improved decision-king and control in the marketing of goods and services"
AMA states - "The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services." According to Richard D. Crisp, MR is "The systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing." The Merriam-Webster Online Dictionary defines research in more detail as "a studious inquiry or examination; especially : investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws".
Characteristics of Research
Collecting, Organising and evaluating data. Systematic problem solving which identifies variables and tests relationship between them. Discovering new facts or verify and tests old facts. Logical, so producers can be developed and understood by others. Empirical, so decisions are based on data collected. Reductive, so it investigates a small sample which can be generalised to large populations.
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example, measuring the number of times someone does something under certain conditions) or qualitative (for example, asking people how they feel about a certain situation). Research methodologies are generally used in academic research to test hypotheses or theories. A good design should ensure the research is valid, i.e. it clearly tests the hypothesis and not extraneous variables, and that the research is reliable, i.e. It yields consistent results every time.
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Identifying & Defining problem Choice of Research Design Determining sources of data Processing & Analyzing collected data
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Literature review
This may be an attempt to summarise or comment on what is already known about a particular topic. By collecting different sources together, synthesising and analysing critically, it essentially creates new knowledge or perspectives. There are a number of different forms a literature review might take. A systematic review will generally go to great lengths to ensure that all relevant sources have been included. Details of the search strategies used and the criteria for inclusion must be made clear.
Case study
This will involve collecting empirical data, generally from only one or a small number of cases. It usually provides rich detail about those cases, of a
predominantly qualitative nature. There are a number of different approaches to case study work and the principles and methods followed should be made clear. A case study generally aims to provide insight into a particular situation and often stresses the experiences and interpretations of those involved.
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Survey
Where an empirical study involves collecting information from a larger number of cases, perhaps using questionnaires, it is usually described as a survey. Alternatively, a survey might make use of already available data, collected for another purpose. A survey may be cross-sectional or longitudinal. Because of the larger number of cases, a survey will generally involve some quantitative analysis.
Experiment
This involves the deliberate manipulation of an intervention in order to determine its effects. The intervention might involve individual pupils, teachers, schools or some other unit. An experiment may compare a number of interventions with each other, or may compare one to a control group. If allocation to these different treatment groups is decided at random it may be called a true experiment; if allocation is on any other basis it is usually called a quasi-experiment.
Observational Design
This type of research design draws a conclusion by comparing subjects against a control group, in cases where the researcher has no control over the experiment. There are two general types of observational designs. In direct observations, people know that you are watching them. Unobtrusive measures involve any method for studying behaviour where individuals do not know they are being observed. An observational study allows a useful insight into a phenomenon and avoids the ethical and practical difficulties of setting up a large and cumbersome research project.
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Descriptive Design
Descriptive research designs help provide answers to the questions of who, what, when, where, and how associated with a particular research problem; a descriptive study cannot conclusively ascertain answers to why. Descriptive research is used to obtain information concerning the current status of the phenomena and to describe "what exists" with respect to variables or conditions in a situation.
Correlational Design
A correlation is a relationship between two variables. These factors can be characteristics, attitudes, behaviours, or events. Correlational research attempts to determine if a relationship exists between the two variables, and the degree of that relationship. A social researcher can use case studies, surveys, interviews, and observational research to discover correlations. Correlations are positive, negative, or nonexistent.
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This introduction to case study research draws upon their work and proposes six steps that should be used:
Select the cases & determine data gathering & analysis techniques
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Types of Data
Primary Data:
Data that has been collected from first-hand-experience is known as primary data. Primary data has not been published yet and is more reliable, authentic and objective. Primary data has not been changed or altered by human beings, therefore its validity is greater than secondary data.
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Sources of Primary Data: Sources for primary data are limited and at times it becomes difficult to obtain data from primary source because of either scarcity of population or lack of cooperation. Regardless of any difficulty one can face in collecting primary data; it is the most authentic and reliable data source. Following are some of the sources of primary data. Experiments: Experiments require an artificial or natural setting in which to perform logical study to collect data. Experiments are more suitable for medicine, psychological studies, nutrition and for other scientific studies. In experiments the experimenter has to keep control over the influence of any extraneous variable on the results. Survey: Survey is most commonly used method in social sciences, management, marketing and psychology to some extent. Surveys can be conducted in different methods.
Questionnaire: is the most commonly used method in survey. Questionnaires are a list of questions either open-ended or close -ended for which the respondent give answers. Questionnaire can be conducted via telephone, mail, live in a public area, or in an institute, through electronic mail or through fax and other methods.
Interview: Interview is a face-to-face conversation with the respondent. In interview the main problem arises when the respondent deliberately hides information otherwise it is an in depth source of information. The interviewer can not only record the statements the interviewee speaks but he can observe the body language, expressions and other reactions to the questions too. This enables the interviewer to draw conclusions easily.
Observations: Observation can be done while letting the observing person know that he is being observed or without letting him know. Observations can also be made in natural settings as well as in artificially created environment.
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Secondary Data:
Data collected from a source that has already been published in any form is called as secondary data. The review of literature in nay research is based on secondary data. Mostly from books, journals and periodicals. Sources of Secondary Data: Secondary data is often readily available. After the expense of electronic media and internet the availability of secondary data has become much easier. Published Printed Sources: There are variety of published printed sources. Their credibility depends on many factors. For example, on the writer, publishing company and time and date when published. New sources are preferred and old sources should be avoided as new technology and researches bring new facts into light.
Books: Books are available today on any topic that you want to research. The use of books start before even you have selected the topic. After selection of topics books provide insight on how much work has already been done on the same topic and you can prepare your literature review. Books are secondary source but most authentic one in secondary sources.
Journals/periodicals: Journals and periodicals are becoming more important as far as data collection is concerned. The reason is that journals provide up-to-date information which at times books cannot and secondly, journals can give information on the very specific topic on which you are researching rather talking about more general topics.
Magazines/Newspapers: Magazines are also effective but not very reliable. Newspaper on the other hand are more reliable and in some cases the information can only be obtained from newspapers as in the case of some political studies.
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Published Electronic Sources: As internet is becoming more advance, fast and reachable to the masses; it has been seen that much information that is not available in printed form is available on internet. In the past the credibility of internet was questionable but today it is not. The reason is that in the past journals and books were seldom published on internet but today almost every journal and book is available online. Some are free and for others you have to pay the price.
Unpublished Personal Records: Some unpublished data may also be useful in some cases.
Diaries: Diaries are personal records and are rarely available but if you are conducting a descriptive research then they might be very useful. The Anne Franks diary is the most famous example of this. That diary contained the most accurate records of Nazi wars.
Letters: Letters like diaries are also a rich source but should be checked for their reliability before using them.
Governement Records: Government records are very important for marketing, management, humanities and social science research.
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2.6
Sample Sampling
Sampling is a method of selecting experimental units from a population so that we can make decision about the population.
Sampling Design
Sampling design is a design, or a working plan, that specifies the population frame,sample size, sample selection, and estimation method in detail. Objective of the sampling design is to know the characteristic of the population.
Population
A group of individuals or items that share one or more characteristics from which data can be gathered and analyzed.
Sampling Unit
A sampling unit is one of the units into which an aggregate is divided for the purpose of sampling, each unit being regarded as individual and indivisible when the selection is made. In this project sample unit is 200.
Sample Size
The number of sampling units which are to be included in the sample. In the case of a multi-stage sample this number refers to the number of units at the final stage in the sampling. Sampling aize is the number of observations used for calculating estimates of a given population. The sample size in this is 100.
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Sampling Area
Population is the specific group of people, firms etc. which form the pivotal point of research project. For developing and using the sample it becomes the primary duty of the researcher to define the population from which to draw samples. Sample population is: General Public, Friends and Relatives. Sampling Area is Delhi & NCR Region.
Sampling Technique
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judemental and convinent
Sampling Instruments
Things used for taking sampling or make a sample is termed as a sampling instruments. For eg.: Questionnaire, internet, books etc.
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Series 1
30% 25% 20% 15% 10% 5% 0% Family Friends Agents Others Series 1
Interpretation After the survey it was found that most of the respondents took policy or life
insurance cover from the suggestions of their friends or family. And only 23 respondents took policy on the recommendation of the agents.
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Chart Title
Interpretation The good thing is that atleast the corporates were quite eager to find out what RLI has to offer where the major 39% of the corporates were not even interested in the products as they are quite satisfied by the LIC and they are not in breaking their long relationship with them. The private players will have to play a long battle in order to ensure that they are serious player in the market.
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60 50 40 30 20 10 0 Series1
Series1
Interpretation Thus we see that companies are comfortable in having business with govt. owned companies as they feel its safe & secure to have business with them which is followed by SBI as it is the biggest bank and then followed by.
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50 45 40 35 30 25 20 15 10 5 0 Tax Benefit Savings Risk Cover Return/Yield Preference 4 Preference 3 Preference 2 Prefernence 1
Interpretation We can see from the table and the graph that the number one motive of people about investing in life insurance is risk coverage, which is the main theme of life insurance followed by Tax benefit. The third position is of saving and fourth is Return. This shows that still people consider other financial tools more viable for return and life insurance is for Tax benefit and risk cover.
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5) Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy?
(a) Reliance Life Insurance (b) LIC This is the most important question as it reflects the scope of the study. It is the main theme of this questionnaire. Prior to 2000 LIC was the only player in the life insurance market and it had the total market. So people had to go to LIC for buying life insurance policy. But after the entry of private players in 2000, some people have also turned to private life insurers. Reliance Life Insurance Company Limited is newly launched company. So it has fewer customers as compared to LIC. But the ULIP plans are sold more of Reliance life insurance as compared to LIC in todays environment. Now lets see what people say:
People Preference
30%
As evident from the chart that 30% of people would prefer Reliance Life Insurance while 70% would prefer LIC.
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S.NO 1 2 3 4
TYPE OF CHOICE More returns Complimentary gift Guaranteed Bonus and returns High growth rate
% AGE 35 10 30 25
Percentage
25% 35% More Returns Complimentary Gift Guaranteed Bonus & Returns High growth rate 30% 10%
Interpretations: Mostly People are taking the policies for getting more future returns and for future bonuses. Various other benefits that they see are growth rate of firm,status, complimentary gifts etc.
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Percentage
50% 40% 30% 20% 10% 0% Very High Moderate Low Percentage
High
Interpretations: Premium that is there varied from the cover or type of the policy that a person is taking and benefit they want to get. Some says that the premium they are paying mostly say that the premium is moderate and according to the benefits they are getting to it.
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8) . Effective punch line S.NO 1 2 3 4 TYPE OF CHOICE Your partner for life Making life easier for you Your dreams, at every step of life With you always % AGE 40 25 20 15
Percentage
40% 30% 20% 10% 0% Your partner for life Making life easier for you your dreams, at every step of life With you always Percentage
Interpretations: As every company uses different punch lines to attract the customers. Mainly the line that forces and put a strike on persons mind is of LIC i.e your partner for life.
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S. No.
Type of Plan
Percentage
Term Insurance
10%
Pure Endownment
30%
Whole Life
45%
Non Life
38%
Percentage
Term Insurance 8% Non Life 31%
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S.NO 1 2 3 4
% AGE 15 10 40 35
Percentage
15% 35% 10%
40%
Interpretation: 15% of people influenced by print media. 10% of people influenced by print media. 40% of people influenced by print media. 35% of people influenced by print media.
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FINDINGS
The conventional segments comprising primarily of companies in financial services, seems to be extremely saturated and difficult to penetrate at least in the fiercely competitive markets of major cities.
I strongly feel that efforts towards expansion of life insurance distribution should be made in non-conventional segments. The segments should be such that there exists an urge to grow and explore new avenues for earning .
My experience with the NGO's goes on to reaffirm this aspect. Segments such as marketing companies could also be explored further as they provide a big advantage of existing on rolls sales force, client databases and marketing skills.
Also I need to compare/study the offer given by other Private Players to its corporate agents especially during the initial years.
Aspects such as financial support in meeting expenses or higher commissions in the initial years came about during our discussions with a few people who were seriously considering entering into Life Insurance distribution.
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LIMITATIONS
i.
The geographical area was very much limited to residential area & so the results are not particularly reflection of the current behavior.
ii.
iii.
Due to limited time period and constrained working hours for most of the respondents, the answers at times were vague enough to be ignored.
iv.
Most of the people in India take their policies in the period preceding March(For tax saving purposes) & so the response to initial contacts were not all encouraging and that has been the primary reason in the inability to qualify the results large enough so as to deduce any relevant outcomes.
v.
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RECOMMENDATIONS
i.
ii.
Plenty of advertisement should be done through T.V, Newspaper and Radio as these medias are having maximum recall value.
iii.
iv.
More business opportunity seminars should be conducted to make people aware of the offer given.
v.
The company should quite frequently send their agent to the customer so that they should be aware of the latest offer.
vi.
The company should attempt to open more and more of its branches in the country so as to promote their product publicit.
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CONCLUSION
The current state of insurance distribution in India is still in flux. On one hand, insurers are awaiting regulations to be approved for brokerages and bane assurance to be truly launched. On the other hand they are trying the corporate model of intermediaries in addition to the traditional models in the market. There is no right and wrong in all this. The success of marketing insurance depends on understanding the social and cultural needs of the target population, and matching the market segment with the suitable intermediary segment. In addition a major segment of the Indian population has low disposable income, meaning that every penny won will be obtained after a lot of persuasion and the expected value for money is high. All intermediaries cant sell all lines of business profitably in all markets. There should be clear demarcation in the marketing strategies of the company from this perspective. Clients should also receive price differentials for using different channels. This is not a new concept, as the public sector Property Casualty companies are giving discounts in lieu of agency commission. The channel composition should not be homogeneous but should reflect the larger society. For example i. Agents from different economic, social strata and different age and gender.
ii.
Banc assurers ranging from multinational banks to micro credit lending agencies.
iii.
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BIBLIOGRAPHY
Website
http://en.wikipedia.org/wiki/Reliance_Life_Insurance http://www.reliancelife.com/
http://www.sebi.com http://www.nse..com
http://www.reliancecapital.co.in/ourbusiness_rli.html
Magazines
Mehra,Puja, India Today (27th MAY2006) PAGE 43 Sinha, Prabhakar, The times Of India (16th MAY2006) PAGE 1 Brunch(16th july 2006)
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Annexure
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5) Would you prefer Reliance Life Insurance or LIC for buying the life insurance policy?
Reliance Life Insurance LIC
More returns Complimentary gift Guaranteed Bonus and returns High growth rate
7) Our views about the premiums paid for and insurance policy is
Very high Moderate Low
High
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