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Marketing strategy of Reliance Money

ARYA SCHOOL OF MANAGEMENT STUDIES, ROURKELA


CENTRE CODE: 03039

A
PROJECT REPORT
ON

Marketing Strategy of Reliance Money

Submitted for the Partial Fulfillment of the Requirement for the Degree of Master of Business Administration (M.B.A), under SMU Under the guidance of Prof. Sunil Kumar Mr. Manas Ranjan Pattanaik (Faculty, ASMS, RKL) Submitted By

Kalandi Mohanty
REGD. NO. - 521072030 MBA (2009-11)
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DECLARATION

I hereby declare that this summer project report titled Marketing

Strategy of Reliance Money

is the result of my own effort in the

training, which I did as a part of the curriculum for the fulfillment of Master of Business Administration (MBA) degree. It has not been duplicated from any other earlier works and all information provided in this report is genuine. This report submitted for the partial fulfillment of MBA program. It has not been submitted to any other university or for any other degree.

Place : Date : -

Kalandi Mohanty Regd no:- 521072030

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ACKNOWLEDGEMENT
INSPIRATION LEADS TO DEDICATION, DEDICATION LEADS TO ACOMPLISHMENT, ACOMPLISHMENT LEADES TO ACKNOWLEDGMENT. First and foremost I thank god, my friend for blessing showered on me. All my efforts will remain meaningful authorities, who helped me more than I expected, while I working on my project. I have project privilege of undergoing major concurrent project for one month at Reliance Money Rourkela. I would like to express my sincere gratitude to Sir. Sunil Kumar (Senior Manager) for providing me an opportunity to under take major concurrent project and guidance through out the project to complete successfully. I extend my sincere thanks and acknowledgement to all the Officer/Executive of Reliance Money, Rourkela, who extended their wholehearted guidelines and their co-operation, in spit of their schedule in completing my project work successfully. I would like extend my sincere feeling of gratitude to Sri RK Hota (GM), Dr. Nilachal Sahoo (Sr.General Manager) and Prof. Sunil Kumar. Finally I thank to all the faculty member of our institute who have given me their valuable suggestions from time to time Name: Kalandi Mohanty Branch: MBA (marketing) Session: (2010-2012) Regd.No:521072030

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TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Kalandi Mohanty has done his project entitled Marketing Strategy of Reliance Money. He has done his project with much sincerity and wish him good luck in future.

Mr. Sunil Kumar


(Senior Manager)

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UNIVERSITY STUDY CENTRE CERTIFICATE This is to certify that the project report entitled Marketing Strategy of Reliance Money submitted in partial fulfillment of the requirements for the degree of Master of Business Administration of Sikkim Manipal University of Health, Medical & Technological Sciences. Kalandi Mohanty has worked under my supervision and guidance and that no part of this project report has been submitted for any award of any other Degree, Diploma, Fellowships or any other similar titles and that work has been published in any journal or magazine.

Reg. No: 521072030

Certified

Place: Rourkela Date :

Mr. Manas Ranjan Pattanaik MBA

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EXAMINERS CERTIFICATION

The Project report of Kalandi Mohanty Marketing Strategy of Reliance Money is approved and acceptable in quality and form.

Internal Examiner

External Examiner

Name :

Name :

Qualification:

Qualification :

DESIGNATION: -

DESIGNATION: -

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CONTENTS
CHAPTER NO. CHAPTER I TOPIC INDUSTRY PROFILE CHAPTER II DEMAT ACCOUNT MUTUAL FUND LIFE INSURANCE GENERAL INSURANCE 38 - 42 PAGE NO. 9 - 37

ABOUT THE COMPANY COMPANY PROFILE VISION AND MISSION ORGANISATIONAL HIERARCHY

CHAPTER III

PRODUCT OFFERING TRADING PORTAL FINANCIAL PRODUCT VALUE ADDED SERVICES CREDIT CARD GOLD COIN RETAILING

43-64

CHAPTER IV

MARKETING STRATEGY WHAT IS GOOD MARKETING ASPECTS OF GOOD MARKETING STP CONCEPT STRATEGY 4 PS OF MARKETING DISTRIBUTION CHANNEL TELEMARKETING CANOPY

65 - 83

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CHAPTER VII ADVERTISEMENT

Suggestions & recommendations


FINDINGS SUGGESTION

84 - 86

CHAPTER VIII

CONCLUSION

86-87

CHAPTER IX

QUESTIONNAIRE

87 - 89

CHAPTER X

APPENDIX BIBLIOGRAPHY

90

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INDUSTRY PROFILE DEMAT ACCOUNT
Online trading refers to the buying and selling of shares /bonds/stocks/contracts with the use of internet. In this the shares are not issued in the physical form rather they are transferred in the dematerialized form to the Demat account directly. In India, a Demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker. If we want to save our money, then we have to open a savings account with a Bank. Such like that if we want to bye and sell shares, then we need to open a Demat account with a depositary participant registered with SEBI, NSE, and BSE. Demat denotes the dematerialization of shares. Demat account along with a trading account from a DP facilitate us to bye and sell shares online and to store the shares online without any bonded paper stuffs. Demat account facilitates faster transaction when compared with the older traditional trading method, (i.e.)
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the share buyer have to inform to the broker regarding his purchase decision and then the broker forward it to the stock exchange, then they allot the shares to the respective buyer and send him a registered share certificate via postal department. The investor has to wait for 5 days for his transaction. But now due to the entry of Demat account and online share trading platforms the investors can buy and sell any volume of shares online by one mouse click! This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.Under Section 68 B of the Companies Act, inserted by the Companies (Amendment) Act, 2000, it is mandated that every Initial Public Offer (IPO) made by a listed company in the excess of Rs. 10 Crores has to be issued in dematerialized form by complying with the requisite provisions of the Depositories Act, 1996. Until the late eighties, the common man kept away from capital market and thus the quantum of funds mobilized through the market was meager. A major problem, however, continued to plague the market. The Indian markets were
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drowned in shares in the form of paper and hence it was problematic to handle them. Fake and stolen shares, fake signatures and signature mismatch, duplication and mutilation of shares, transfer problems, etc. The investors were scared and were under compensated for the risk borne by them. The century old system of trading and settlement requires handling of huge volumes of paper work. This has made the investors, both retail and institutional, wary of entering the capital market. However, lack of modernization become a hindrance to growth and resulted in creation of cumbersome procedures and paper work. However, the real growth and change occurred from mid-eighties in the wake of liberalization initiatives of the Government. The reforms in the financial sector were envisaged in the banking sector, capital market, securities market regulation, mutual funds, foreign investments and Government control. These institutions and stock exchanges experienced that the certificates are the main cause of investors` disputes and arbitration cases. Since the paper work was not matching the rapid growth so there was a need for a better system to ensure removal of these impediments. Government of India decided to set up a fully automated and high technology based model exchange that could offer screen-based trading and depositories as
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the ultimate answer to all such reforms and eliminate various bottlenecks in the capital market, particularly, the clearing and settlement system in stock exchanges. A depository in very simple terms is a pool of pre-verified shares held in electronic mode which offers settlement of transactions in an efficient and effective. Advantages of Demat a/c are as follows: SEBI has made it compulsory for trades in almost all scrips to be settled in Demat mode. Although, trades up to 500 shares can be settled in physical form, physical settlement is virtually not taking place for the apprehension of bad delivery on account of mismatch of signatures, forgery of signatures, fake certificates, etc. No stamp duty is levied on transfer of securities held in Demat form. Instantaneous transfer of securities enhances liquidity. It eliminates delays, thefts, interceptions and subsequent misuse of certificates. Change of name, address, registration of power of attorney, deletion of deceased's name, etc. - can be effected across companies by one single instruction to the DP.
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Each share is a market lot for the purpose of transactions - so no odd lot problem. Any number of securities can be transferred/delivered with one delivery order. Therefore, paperwork and signing of multiple transfer forms is done away with. It facilitates taking advances against securities on low margin/low interest. Demat system not only provides smooth and hassle-free way of dealing in shares, it also does away with all the associated tensions. Bad deliveries are minimized. Postal delays and loss of shares in transit is prevented. Immediate transfer of shares and securities. Less paper work (reduction in huge volumes). Faster settlement cycles and payouts. The demat system totally avoids the associated heartburns arising from theft of shares, mutilation, forgery, counterfeit shares and loss of shares during a natural calamity. Nomination facility. Holding investments in equity and debt instruments in a single account.

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MUTUAL FUND History of Indian Mutual Fund
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases.

First Phase 1964-87


Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
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established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 Crores

Third Phase 1993-2003 (Entry of Private Sector Funds)


With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.

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The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds.

Fourth Phase since February 2003


In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund,
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conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth.

The graph indicates the growth of assets over the years.

Concept of Mutual Fund


A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in

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capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

Organization of a Mutual Fund

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There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund. They are as follows

Sponsors
The sponsor is the company which sets up the mutual fund. It means anybody corporate acting alone or in combination with another body corporate established a mutual fund after initiating and completing the formalities.

Trustees
The management of the mutual fund is subject to the control of the board of trustees of the fund. They guide the operations of the fund and carry the crucial responsibility to see that AMC always act in the best interest of the investors.

Asset Management Company (AMC)


The mutual fund is operated by a separately established asset management company (AMC).It manages the funds of the various schemes. It is entrusted with the specific task of mobilizing funds under the scheme.

Custodian
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A custodian is a person carrying on the activities of the safekeeping of the securities or participating in any clearing system on behalf of the clients to effect deliveries of the securities.

(Mutual Fund Operation Flow Chart)

TYPES OF MUTUAL FUND SCHEMES


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Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry. By Structure ; Open-Ended Schemes Close-Ended Schemes Interval Schemes By Investment Objective; Growth Schemes/Equity Schemes Income Schemes/Debt Schemes Balanced Schemes Money Market Schemes

Investment by Structure

Open-ended Schemes:
An open-end scheme accepts funds from investors by offering its units or shares on a continuing basis i.e. an investor can invest in an open-ended schemes whenever he wants and he can purchase units at the market price at that moment. Open-end scheme permits investors to withdraw funds on a continuing
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basis under a re-purchase arrangement. Open-end scheme has no maturity period. The open-end schemes are ordinarily not list on the secondary market.

Close-ended Schemes:
The subscription to a closed-end scheme is kept open only for a limited period (usually one month to three months). After that he cannot invest in that fund. A closed-end scheme does not allow investors to withdraw funds as and when they like. A closed-end scheme has a fixed maturity period (usually five to fifteen years). The closed-end schemes are listed on the secondary market.

Interval Schemes:
Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.

Investment by Objective

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Equity Schemes
An EQUITY FUND invests mainly in stocks and shares of companies. EQUITY FUNDS typically aim to generate long term growth in the unit capital. There are a variety of ways in which an equity portfolio can be created for investors. There are thus the following choices in equity funds:

Simple equity funds Industry Specific funds Index funds ELSS


They are ideal for investors having a long term perspective, Speculative outlookthe equity cult, who would like to make gains in the shortest period of time and investors in their prime earning years-specifically the young who have a decent earning and can take some kind of risk.

Debt Schemes

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A DEBT FUND invests mainly in debt instruments like bonds and debentures, with high and consistent dividend payout. These funds give decent returns but the capital appreciation is not much. There are a variety of ways in which a debt portfolio can be created for investors. Retired people and others with a need for stability and regular income. Investors who need some income to supplement their earnings. There are thus the following choices in debt funds: Liquid and Money market funds Gilt Funds Monthly Income Plan
Floating rate funds

Balanced Schemes
A BALANCED FUND invests in both equity and debt instruments. It aims to generate growth and income by periodically distributing its assets over both types of securities. These funds are ideal for investors looking for a combination of income and moderate growth.

Money Market Schemes


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This type of fund's main objective is to hold investment instruments that are liquid and secure. This type of fund is usually held on a short-term basis, and the NAV is often fixed at $10. Examples: Treasury bills, banker's acceptances, and short term notes. One thing an investor should be aware of is that these funds are NOT guaranteed like a GIC, and hold NO fixed return, but are low risk and do pay interest.

ADVANAGES OF MUTUAL FUND Reduction of risk Professional Management Tax benefits Low transaction costs Well regulated Liquidity Diversification Return potential Transparency Flexibility

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Choice of schemes

DISADVANTAGES OF MUTUAL FUND


No control over costs Dilution No tailor made portfolio Managing a portfolio of funds

LIFE INSUARNCE
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HISTORY
Insurance has been known to exist in some form or other since 3000 BC. The Chinese traders, travelling treacherous river would distribute their goods among several vessels, so that the loss from any one vessel being lost, would be partial and shared, and not total. The Babylonia traders would agree to pay additional sums to lenders, as the price for writing off the loans, in case of shipment being stolen. The inhabitants of Rhodes adopted the principle of general average, whereby, if goods are shipped together, the owner would bear the losses in proportion, if loss occurs, due to jettisoning during distress. The Greeks had started benevolent societies in the late 7th century AD, to take care of the funeral and families of members who died. The friendly societies of England were similarly constituted. The Great Fire of London in 1666, in which more than 13000 houses were lost, gave a boost to insurance and the first fire insurance company, called the Fire Office, was started in 1680.The origin of insurance business as in vogue at present is traced to the Lloyds Coffee House in London. Traders, who used to gather in the Lloyds coffee house in London, agreed to share the losses to their goods while being carried by ship. The losses used to occur because of pirates who rubbed on the high seas or because of bad weather spoiling the

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goods or sinking the ship. In India, insurance began in 1818 with life insurance being transacted by an English company, the Oriental Life Insurance Co. Ltd. In Calcutta. The first Indian insurance company was the Bombay Mutual Assurance Society Ltd. Formed in 1870 in Mumbai this was followed by the Bharat Insurance Co. in 1896in Delhi, The Empire of India in 1897 in Mumbai, the United India in Chennai, the National Indian and the Hindustan Cooperative in Kolkata.First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban
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areas and targeted the higher echelons of society. Unethical practices adopted by some of the players against the interests of the consumers then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of

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Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

Some facts about insurance industry in India


The domestic insurance industry in India is estimated to be around US$ 60.5 billion by 2010, of which US$ 35 billion will come from rural and semi-urban areas. While the life insurance market is expected to grow to US$ 35 billion, nonlife insurance market will touch an estimated US$ 25 billion.

With the largest number of life insurance policies in force in the world, Indias insurance sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per cent in 1999-2000, far ahead of China where insurance accounts for just 1.7 per cent of the GDP and even the US where insurance penetration stands at 4 per cent of the GDP. One area that continues to cause concern is the number of customer grievances in insurance, especially in a few specific classes. This calls for more transparency in designing the contract wording and on insisting that the applicant is sufficiently informed about the coverage and more particularly the exclusions. In addition, the legislation itself requires to be transformed to meet the needs of the emerging markets. The Law Commission of India which has gone extensively into the various insurance laws has submitted its report. Further, the
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expert committee headed by Mr. K.P. Narasimhan has also submitted its proposals requiring amendments to the laws. The demand for health insurance covers has seen a healthy increase, and today the sector is the fastest growing segment in the non-life insurance industry in India, which grew at over 40% last year. It is also emerging as an increasingly significant line of business for life insurance companies. During the last five years, the premium from health insurance products in non-life companies has grown from 675 crore in 2001-02 to Rs 3200 crore in 2006-07, almost 5 times its level 5 years back. While this rate of growth appears to be very healthy, it is on a low base, and health insurance penetration in the country continues to be low. Only about 25 million persons are presently covered for health through commercial insurance, in a country of over 1.1 billion people. Overall, the Indian health sector is still characterized by the near absence of any significant risk protection against major health-related expenditure, as insurance and other organized forms of payment for health services, including ESIS, CGHS and other such schemes barely constitute a tenth of all health expenditure in the country. Almost four-fifths of the health spending in the country is private, out-of-pocket expenditure. In the absence of such protection, the financial impact of hospitalization can be very pronounced, and indeed is reported as one of the leading causes of impoverishment in the country.
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Indian insurance companies recorded a 19.9 per cent growth in premium in dollar terms (adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9 per cent. This rate of growth of the industry looks particularly impressive when seen against the fact that the combined penetration of both life and non-life is less than 2 per cent of the GDP compared to world average of 7.52 per cent. Clearly, the scope for growth is enormous. Led by the Life Insurance Corporation (LIC), the life insurance industry registered a growth of 110 per cent in fiscal 2006-07, taking the total business to US$ 19.2 billion from the previous years US$ 9.1 billion. The life insurance market has grown rapidly over the past six years, with new business premiums growing at over 40 per cent per year owing to the entry of a host of new players with significant growth aspirations and capital commitments. The total life insurance market premiums is likely to more than double from the current US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by McKinsey. The study titled India Insurance 2012: Fortune Favors the Bold, expects a rise in premiums between 5.1 and 6.2 per cent of the GDP in 2012 from the current 4.1 per cent driven by greater insurance intensity per capita as the average per capita income increases and rise in penetration in urban and rural
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areas. The life insurance premium contributions per capita have jumped from a little over US$ 7 in 1999-2000 (pre-liberalization) to US$ 38.5 in 2006-07. Life insurance penetration in India - which was less than 1 per cent till 1990-91 increased to 2.53 per cent in 2005, and to 3 per cent in 2006-07. While the impetus for growth has come from both public and private insurers, the number of players in this segment have also increased to 16 (15 in private sector), with Life Insurance Corporation (LIC) being the dominant player (market share of over 74 per cent).

Major players in the Life Insurance industry


Life Insurance Corporation of India (LIC) HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. Reliance Life Insurance Company Ltd. ICICI Prudential Life Insurance Co. Ltd. Om Kotak Mahindra life Insurance Co. Ltd. Birla Sun Life Insurance Co. Ltd. Tata AIG Life Insurance Company Ltd.

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SBI Life Insurance Company Limited ING Vysya Life Insurance Company Pvt. Ltd. Allianz Bajaj Life Insurance Company Ltd. MetLife India Insurance Company Pvt. Ltd. AMP SANMAR Assurance Company Ltd. Dabur CGU Life Insurance Company Pvt. Ltd.

GENERAL INSURANCE Introduction


The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India

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Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a holding company, having these four companies as its subsidiaries.

Some of the important milestones in the general insurance business in India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

1968 - The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance

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Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. The general insurance industry grew 11.6 per cent between April and November in 2007-08 with robust performances by private players. The 13 non-life insurers collected US$ 4.7 billion in premium against US$ 4.2 billion in the same period last year. While the public sector could increase its premiums by just 3.57 per cent, 9 private sector players clocked premium growth of 26.49 per cent. Private sector players market share has grown to about 40 per cent in FY08 as compared to the public sectors 60 per cent.

Major players in the General Insurance industry


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General Insurance Corporation of India (GIC) Royal Sundaram Alliance Insurance Co. Ltd. Bajaj Allianz General Insurance Co. Ltd. Reliance General Insurance Co. Ltd. ICICI Lombard General Insurance Co. Ltd. Cholamandalam General Insurance Co. Ltd. TATA AIG General Insurance Co. Ltd. IFFCO Tokio General Insurance Co. Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd.

COMPANY PROFILE
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Introduction
Reliance Money is a group company of Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group. Reliance Money, the financial products distribution company of Anil Dhirubhai Ambani Group, today unveiled the new brand identity for Travelmate Services and announced major business plans for its Money Changing Services and FullFledged Money Transfer business. Travelmate Services, a part of Kuoni Group, was acquired by Reliance in November 2006 and is now a wholly owned subsidiary of Reliance Capital. The company has been in the Money Transfer Services (MTS) and Full-Fledged Money Changing (FFMC) business in the country since 1993. Reliance Money, which started operations in April 2007, is adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh customers. And the traded volumes have crossed about Rs 1,200 crore.

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Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Its endeavor is to change the way India transacts in financial markets and avails financial services. Reliance Money is a single window, enabling you to access, amongst others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPOs, Life Insurance, General Insurance, Offshore Investments, Money Transfer, Money Changing and Credit Cards. Reliance Money, the financial products retail arm of Reliance Capital, a company owned by the Anil Dhirubhai Ambani Group (ADAG), has decided to expand distribution network in rural areas. In a massive inclusive growth initiative, first of its kind in Indian corporate history, which would provide employment to 50,000 rural youth, the company has decided to extend its rural reach this fiscal by setting up 10,000 franchised outlets in 5,165 of the 5,645 tehsils (talukas) of the country, according to a Hindu Business Line. Reliance Money has already identified and appointed franchisee partners in 1,001 tehsils with the help of Rural Relations, a rural consumer-focused organization. Reliance ADAG expects to garner 10 to 20% of its total business through this rural thrust. Reliance Money plans to provide insurance plans for cattle, crop, bullock cart and tractor, term insurances (Rs 25 to Rs 50 pay out for a years coverage), and
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Systematic Investment Plans (monthly installment of Rs 50 to100). While the company has already established its presence in Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Gujarat and West Bengal, it is now expanding into Uttaranchal, Chhattisgarh, Rajasthan, Tamil Nadu and Orissa.

VISION
To build a global enterprise for all our stakeholders and a great future for our country by giving millions of young Indians the power to shape their destiny: The means to realize their full potential.

MISSION
To create and nurture a world-class, high performance environment aimed at delighting our customers by providing endless financial products in all part of the country.
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Reliance Money is a distribution house. Along with the products of reliance capital it also sells the financial products of other companies like ICICI, HDFC, TATA AIG, Birla sunlife, etc. Its main product is Demat account. Along with the Demat account it also sells life insurance, general insurance, mutual fund, gold coins etc. ORGA

National head Zonal Head Zonal Head Regional Head Zonal Head Regional Head Zonal Head Regional Head Regional Head Cluster head Center Manager

Cluster head

Center Manager

BDMs

BDMs

BDMs

BDMs

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NIZATIONAL HIERARCHY National Level Zonal Level Regional Level Divisional leve Branch Level Area Level BDMs : : :
.

: National Head : Zonal Head : Regional head Cluster Head Center Manager Business Development Managers (BDM) (previously

PRODUCT OFFERING
1. Trading Portal (with almost negligible brokerage )

Equity Broking Commodity Broking Derivatives ( Futures & Options ) Offshore Investments (Contract For Differences) D-Mat Account.

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2. Financial Products
Mutual Funds Life Insurance ULIP plan Term Plan Money Back Plan General Insurance o Vehicle/Motor Insurance o Health Insurance o House insurance
IPOs NFOs

3. Value-Added Services

Retirement Planning
Financial Planning Tax Saving Children Future Planning

4. Credit Cards

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PRODUCT FEATURES; DEMAT ACCOUNT There are many broking houses doing business in India and they charge a brokerage on every transaction made online or offline. (Buying and Selling are treated as separate transaction). Reliance Moneys advantage over others is that its charging the lowest brokerage in the market which is just 1 paisa on every executive trade irrespective of the volume traded. Reliance Money, the brokerage and distribution arm of Reliance ADA Group, aims to tap investors in the smaller towns and cities through a flat fee structure. The current leaders in the retail broking segment like ICICI Direct, India Infoline and India bulls offer a pay per use model where the customer pays a percentage of the amount transacted by him. Reliance Moneys brokerage rates are quite competitive. The new wonder is Reliance Money's pre-paid card for stock market brokerage. Reliance Money, the financial services division of Anil Dhirubhai Ambani Group[DEPT OF MBA] Page 45

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promoted Reliance Capital, is bringing to the market pre-paid cards in denominations of Rs500, Rs1,350 and Rs2,500 with validity period of two months, six months and twelve months respectively. These cards would offer brokerage at one-third of the rate being charged by institutional and individual brokerage houses. Sample this. For a pre-paid card worth Rs500, an investor can trade up to Rs90 lakh in futures and option segment or can undertake intra-day trade of similar amount. Besides, an investor can undertake a delivery-based activity of Rs10 lakh. The Rs1350 worth pre-paid card, total trading limit would reach Rs 3 crore, of which Rs 2.70 crore is for the F&O segment and balance Rs30 lakh for deliverybased activities. For Rs2500 pre-paid card, total trading limit is fixed at Rs16 crore, that include F&O limit of Rs15.40 crore and balance Rs 60 lakh for delivery-based broking. Converted to percentage terms - Reliance Money offers most competitive brokerage rates - 0.01% for delivery trades and 0.001% for non-delivery trades (fixed fee of Rs500/- for delivery trades up to Rs10 lacs and/or non-delivery trades
up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and between 0.05% and 0.10% for non delivery trades. Target low level of retail penetration
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in India - less than 3 per cent of household financing savings makes it into equity markets. Reliance Money consumers can trade in equities, commodities and offshore Investments
Fee structure and validity limits (+ Rs. 750/- as registration)

IPOs, Mutual Funds, Insurance, Money transfer and Money Changing - all through single window, both off-line and online. Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore Investment products to Indian consumers as per guidelines.

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Access Fees (Rs.) Validity (Whichever is earlier) Time Validity Turnover Validity 500 1000 1500 2000 12 months 2 months 6 months 12 months 1 lac 2 cr 3 cr 6 cr Intraday Turnover Rs. 2 lac Rs. 90 lac Rs. 2.7 cr Rs. 5.4 cr Rs. 10 lac Rs. 30 lac Rs. 60 lac Delivry Turnover Turnover Limit

FEE

Unutilised delivery limit may be added to intraday limit

2000

12 months

6 cr

Rs. 5.4 cr

Rs. 60 lac

Unutilised delivery limit may be added to intraday limit

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STRUCTURE
1. Two way authentication: Reliance offers its customers with a token (an

electronic gadget) that generates a password, which are a third level of security in addition to the customer log in and a password provided. The password generated by the token is valid only for a period of 20 seconds. If the web page expires, for the fresh login, a new password generated by the token has to be keyed in by the customer. 2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which is very less with respect to the other DPs in the market. 3. User friendly software: The portal offered is very easy to understand and use. 4. Forex and offshore investment: Reliance provides the offshore facility which no other AMC is providing in the market.
5. Better research and news: Reliance offers news from the DOW JONES and REUTERS. "Reliance Mutual Fund schemes are managed by Reliance Capital Asset

Management Limited., a subsidiary of Reliance Capital Limited, which holds 93.37% of the paid-up capital of RCAM, the balance paid up capital being held by minority shareholders."

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Reliance Capital Asset Management Limited (RCAM) was approved as the Asset Management Company for the Mutual Fund by SEBI vide their letter no IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations, 1996. Pursuant to this IMA, DIFFERENT SCHEMES OF RELIANCE MUTUAL FUND The different schemes offered to various kinds of investors by Reliance mutual fund can be broadly classified into three categories Equity, Debt and sector specific. Each of these categories has different investment objectives and therefore has different portfolio. Equity Schemes
Reliance Growth Fund Reliance Vision Fund Reliance NRI Equity Fund Reliance Equity Opportunities Fund Reliance Quant Plus Fund (formerly Reliance Index Fund) Reliance Tax Saver Fund

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Reliance Equity Fund Reliance natural resources fund Reliance Regular Saving Fund Reliance Long Term Equity Fund Reliance Equity Advantage Fund

Debt Schemes

Reliance Income Fund Reliance Medium Term Fund Reliance Short Term Fund Reliance Liquid Fund Reliance Monthly Income Plan Reliance Gilt Securities Fund Reliance Floating Rate Fund Reliance NRI Income Fund Reliance Interval Fund Reliance Liquid Plus Fund Reliance Fixed Horizon Fund- I, II, III, IV, V, VI, VII Reliance Fixed Tenor Fund Reliance Fixed Horizon Fund- Plan C

Sector Specific Schemes

Reliance Banking Fund


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Reliance Pharma Fund Reliance Media and Entertainment Fund Reliance Diversified Power Sector Fund Along with the mutual funds of Reliance, Reliance Money also sells the mutual funds of other companies like ICICI, HDFC, Kotak Mahindra, Birla Sunlife, cholamandalam, etc.

Reliance Mutual Fund has launched Forty Three Schemes till date, namely: ABOUT RELIANCE LIFE INSURANCE
Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock broking, life 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 45-IA of the Reserve Bank of India Act, 1934.

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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. Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life Insurance solutions to individuals and Corporate. Achievements RLIC has been one of the fast gainers in market share in new business premium amongst the private players with an incremental market share of 4.1% in the Financial Year 2007-08 from 3.9% in April 07 to 8% in Feb 08. ( Source: IRDA) Also continues to be amongst the fast growing Private Life Insurance Companies with a YOY growth of 195% in new business premium as of Mar08. A Company that has crossed 1.7 Million policies in just 2 years of operation, post takeover of AMP Sanmar business. Initiated Express Life An Unique Over the Counter sales process for Unit Linked Insurance Policies in the Industry.
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Accomplished a large distribution ramp-up in the Industry in a short span of time by opening 600 branches in 10 months taking the overall branch network above 740. RLIC continues to be one of the two Life Insurance companies in India to be certified ISO 9001:2000 for all the processes. Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007Certificate of Merit in the Financial Services category by Council for Fair Business Practices (CFBP). PLANS OFFERED BY RELIANCE LIFE INSURANCE
PRODUCTS

FOR INDIVIDUALS EMPLOYERS LIABILITY SOLUTIONS PROTECTION PLANS SAVINGS AND INVESTMENT PLANS RETIREMENT PLANS CHILD PLANS EMPLOYEE PROTECTION SOLUTIONS EMPLOYEE VOLUNTARY BENEFITS

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2. SAVINGS AND INVESTMENT PLANS

In life, you have always given your family whatever they have wanted. Yet, there are some promises you have to fulfill, such as taking your family for a vacation, or buying that dream house. Set aside some money to achieve these specific goals with the help of Reliance Savings & Investment Plans. The plan allows you to experience the joys of life and provide for your familys needs. By this plan one can save the money while making an investment.
3. 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.

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4. CHILD PLANS

Being a parent is one of the joys of life. Your child looks up to you and depends on you for love, protection and support. You want to provide your child with the best in life. The Reliance Child Plan helps you save systematically so that you can secure your childs future needs. Be it higher education, his or her first home or any other requirement, you will always be there for your child when he or she needs you.

Protection plan

Savings and investment plan

Retirement plans

Child plans

1. Reliance Term Plan

1. Reliance Super InvestAssure Plan

1. Reliance Total Investment Plan Series II- Pension

1. Reliance Child Plan

2. Reliance Simple Term Plan 3. Reliance Special Term Plan

2. Reliance Super InvestAssure Plan Plus 3. Reliance Total Investment Plan Series I

2. Reliance Super Golden 2. Reliance Secure Child Years Plan Plan

3. Reliance Super Golden 3. Reliance Super Years Plan Value InvestAssure Plan

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Insurance 4. Reliance Credit Guardian Plan 5. Reliance special Credit Guardian Plan 4. Reliance Wealth + Health Plan 5. Reliance Super Automatic Investment Plan 6. Reliance Endowment Plan 6. Reliance Money Guarantee Plan 6. Reliance Super Automatic Investment Plan 7. Reliance Special Endowment Plan 8. Reliance Connect 2 Life Plan 9. Reliance Whole Life Plan 10. Reliance Wealth + Health Plan 11.Reliance Cash Flow 7. Reliance Cash Flow Plan 8. Reliance Super Market Return Plan 9. Reliance Endowment Plan 10. Reliance Special Endowment Plan 11. Reliance Whole Life 7 Reliance Money Guarantee Plan 4. Reliance Super Golden 4. Reliance Wealth + Years Plan Plus 5. Reliance Wealth + Health Plan Health Plan

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Plan Plan 12. Reliance Super Golden Years Plan 13. Reliance Super Golden Years Plan Value 14. Reliance Super Golden Years Plan Plus 15. Reliance Connect 2 Life Plan 16. Reliance Imaan Investment Plan 17. Reliance Savings Linked Insurance Plan

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FOR CORPORATES
As an employer, you believe in providing the best opportunities for your employees while keeping the interests of the company in mind. How will you strike a balance between the two? Reliance Life Insurance offers you a win-win solution with Solutions for Groups. Not only are your employees covered for life from accidents and disablements, you can also efficiently manage their future with gratuity and pension plans.
1. Employers Liability Solutions

A. Group Superannuation B. Group Gratuity C. Group Leave Encashment Plan


2. Employee Protection Solutions

A. Reliance Group Credit Shield Plan B. Reliance Group Term Assurance Plan

C. Group Term Insurance Plan- EDLI

3. Employee Voluntary Solutions A. Group Savings Linked Insurance


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GENERAL INSURANCE
Fundamentals of General Insurance companies are business houses. The product they sell is financial protection. To succeed and survive, they must cover their costs, which include payments to cover the losses of policyholders, as well as sales and administrative expenses, taxes and dividends. Insurance companies have two sources of income for covering these costs: premium and investment income. The premium are collected on a regular basis and invested in Government Bonds, Gift stocks, mutual funds, real estates and other conservative avenues. However, investment income depends on market conditions, interest rates, economy etc and varies from year to year. Because of the uncertainty associated with the investment income, insurance companies must generate enough income form premium to cover the bulk of their expenses. The primary function of insurance is to provide protection against financial losses caused by unforeseen events. This protection is available to individuals, businessmen and large companies alike.

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Types of General Insurance Health
Individual Mediclaim Group Mediclaim Reliance Health Wise Policy

Personal Accident
Personal Accident Group Personal Accident

Fire
Standard Fire and Special Perils Consequential Loss (Fire) Industrial All Risks

Engineering
Erection All Risks/Storage-cum-Erection Contractors All Risks Contractors Plant and Machinery
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Machinery Breakdown Insurance Machinery Loss of Profits Insurance Boiler and Pressure Plant Insurance Electronic Equipment Insurance

Marine
Marine Cargo Insurance

Motor
Private Car Comprehensive

Liability
Directors and Officers Liability Public Liability (Act) Public Liability Product Liability Professional Indemnity Workmens compensation

Miscellaneous
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Industry Care Commercial Care Office Package Fidelity Guarantee Burglary and Housebreaking Money Insurance Householders Package Shopkeepers Package

Travel
Individual and Family Asia Student Corporate

BASIC FEATURES
Hospitalization Expenses Daycare Treatment

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Domiciliary Hospitalization Pre and Post Hospitalization Coverage of Pre-Existing Diseases Critical Illness Cover Donor Expenses

VALUE ADDED FEATURES


Expenses of accompanying person at the Hospital Local Road Ambulance Services Recovery Benefit Cost of Health Check up Nursing Allowance Hospital Daily Allowance

POLICY FEATURES
Income Tax Benefit Sum Insured Pre-insurance Health Check up

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MARKETING STRATEGY
What is marketing?
According to Kotler marketing is an organizational function and a set of processes for creating, communicating and delivering value to the customer and for managing customer relationship in ways that benefits the organization as well as its stakeholders. It is the art of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Definition of marketing depends upon the core concepts like needs, wants, demands, targeting, positioning, segmentation, products, services, value, satisfaction

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Aspects of good marketing
Create Awareness

Induce Trial

Demonstrate Benefits

Build Brand Preference

STP concept
Segmentation: Segmentation is essentially the identification of subsets of buyers within a market who share similar needs and who demonstrate similar buyer behavior. The world is made up from billions of buyers with their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the same set of needs and buyer behavior. Such a group is known as a 'segment' . Segmentation is that part of the population on which the company gives its focus and tries to get its customers from that area. Reliance money mainly gives focus on people who are above 18 to 20 years.

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Targeting: It is the second stage of STP concept. After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' it/them. Resources and effort will be targeted at that segmentation. It targets the people whose income range is above Rs. 2.4 lacs and also to the business people. Positioning: It is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. Reliance money tries to position it as the safest firm for equity, commodity, Forex transaction by providing additional security to its customers and also as the low cost brokerage firm. Strategy Marketing strategy is the process which allows the organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Reliance Moneys strategy is designed in such a way that which focuses on the customer satisfaction.

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Marketing strategy is the written plan which combines product development, promotion, distribution, and pricing approach, identifies the firm's marketing goals, and explains how they will be achieved within a stated timeframe. It determines the target market segmentation, positioning, marketing mix and allocation of resources. According to market dominance it belongs to the challenger type. It follows the horizontal integration strategy. Because its main product is the demat account. But along with the demat account it also sells life insurance, general insurance, mutual funds of Reliance as well as of other companies. It is also known as the distribution house of Reliance Capital because it distributes the products of different organizations along with products of Reliance. Reliance Money provides its products to its different customers according to his/her needs. For example for a customer whose trading power is very low it gives him the demat account of Rs. 1250/- If a customer is a heavy trader than it gives him the demat account of Rs. 2750/- and if a customer is in between these two then it gives him the demat account of Rs. 1750/- or of Rs. 2350/- It also provides a token which gives the customer extra security because at the time of
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login along with the user ID and password, the token key is also required. This token key number is a 7 digit number which changes after every 32 seconds. So another person cannot login to the account even if he knows the user ID and password as he does not have the token number. Because of this it is very secure. They are also providing the services at a lower cost. Reliance Money charges the least brokerage charges in India. They charge only 0.01% for delivery and 0.05% for intraday which very very less as compared to other brokerage firms in India.

4Ps of Marketing
Product: the product of Reliance Money is the Demat account. It also provides the Credit Card services. Along with the demat account it also sells other financial products like Life insurance , General insurance, Mutual Fund, Gold coins, Money transfer, Forex exchange, etc. it also provides the offline trading facilities through Reliance Money partners in 5000 cities across India and through phone calls by dialing 022-39886000. In Demat account one has various investment options line Equity Trading at NSE/BSE, Derivatives Trading, IPO Investment, Commodity Trading, Forex Trading, etc.

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Price:
The price they charge to open the Demat account is Rs. 1250. Out of which Rs. 750/- goes towards the administration and other charges and the rest Rs. 500/goes towards the purchasing a limit card which determines the turnover limit and validity period of the account. If a customer is a heavy trader then he can opt for a higher limit card to increase his/her purchase limit and validity.

Place:
Reliance Money branches are present all over India. Reliance Money has around 10,000 branches in around 5,000 cities in India. Their main target is the metro cities and other big cities in India.

Promotion:
The products are mainly sold because of the sales people. So Reliance Money mainly promotes or encourages its sales force to sell more. It also conducts monthly campaigns and rewards the sales

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Distribution Channel/Channel Marketing
There are three distribution channels to distribute the products and services of Reliance Money. They are as follows

Distribution Head

Capital Market Channel

Emerging Market Channel

Direct Sales Channel

1.

Capital market channel:

This channel deals with the distribution of Demat accounts. In this channel there is a team leader who is responsible for the sales in that territory. He also assigns the tasks to his team members. So it is a group effort to attain the target.
2. Emerging market channel:

This channel deals with the distribution of products like life insurance, general insurance, mutual fund, etc. of Reliance Money. In this there is a team head who assigns the task to the subordinates.

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3.Direct sales channels:

This channel distributes the products like life insurance, general insurance, mutual fund of other companies like ICICI, HDFC, Cholamandalam, Birla life insurance, TATA AIG etc. in this there is no team leader. Everyone has to do the task individually.
They have tie-up with the DTDC courier to fasten the delivery of their products and services.

TELEMARKETING
Telemarketing is a method of direct marketing in which a salesperson solicits to prospective customers to buy products and services over the phone. It makes lead generation for the business or if converted to sales builds business for the company. Reliance Money has tie-up with different banks like ICICI, HDFC, AXIS, IDBI and other banks. So it gets data about the customers of these banks. This also makes it easier for cold calling, lead generation and convert it to sales. First they segregate the data collected from these banks and then find out who could be the prospective customers. Then they call from the Reliance Money office and fix an appointment with them. During the meeting they tell about the product and
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make the prospective customer to understand about the features of the product/service and clarify their doubts. Then they try to convert it to sales. Canopy Reliance Money sets up canopy at different places to make aware about its products to the people who are unaware about them. It is used as a promotional tool and also helps in brand awareness. I have also got a chance to attend a canopy for two days. It has also helped in lead generation. ADVERTISEMENT It makes its advertisement through news, press release, e-brochures and TV commercials.

e-Sponsored programme : Reliance Money in partnership with CNBC Awaaz, NSE and NSDL presents Pehla Kadam a national - level investor education programme, focusing on guiding and educating first time investors on the hows and whys of investment. It is a one-stop destination providing solutions to all the dilemmas a new investor faces at the start of any investment.

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SWOT ANALYSIS The overall evaluation of a companys strength, weakness, opportunities and threats is called as SWOT analysis. Its a way of monitoring the external and internal marketing environment. Strength and Weakness are internal. Opportunity and Threat are external.

STRENGTH

WEAKNESS

Brand image RELIANCE Good database Low pricing Extra security Aggressive sales force

Lack of loyal clients Long time for customer query

clarification Lack of any software for customers of Demat account


THREATS

OPPURTINITY

Increased spending power of customers Rural markets are out of reach Only around 20% people are insured in the country

Competition from existing players Competition competitors from emerging

Unpredictable SENSEX

Unpredictable SENSEX Changing mindset of people

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RESEARCH METHODOLOGY OBJECTIVE The objective of the study is to find out the investment pattern of customers and awareness about Reliance Money. Type of Research Size of sample : Exploratory Research : 50

Area of research study : Bhubaneswar Sampling procedure : Convenient sampling

METHOD OF DATA COLLECTION Primary data: Procedure of data collection : Survey Tools for data collection : Questionnaire LIMITATIONS

1. The sample size is very less, hence the response of just 50 respondents does not imply for the whole population.
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2. The findings of the survey are based on the opinion of respondents and there is no way of assessing the truth of the statement. 3. There are some respondents bias which cannot be overcome.

DATA INTERPRETATION

1. PREFERENCE OF INVESTMENT
derivatives 10% shares 48%

bonds 18%

mutual funds 24%

Interpretation: it shows that most of the people are now investing in the share market rather

than in the mutual funds. So the customers are more aware about the share market now-adays.

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2. AWARENESS OF ONLINE TRADING

no 16% yes 84%

Interpretation:

It shows that most of the people are aware about the online trading of shares. This all happened because of the development in the IT industry. People know about the computers and they are able to trade online.

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3. AWARENESS ABOUT RELIANCE MONEY

no 24%

yes 76%

Interpretation:

Most of the people are aware about the Reliance Money as a brand. This brand awareness will help in the future to increase the market share of Reliance Money and it is a good sign for Reliance Money.

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4. MARKET SHARE

kotak mahindra 12%

India bulls 12%

Others 14%

India infoline 18% Reliance Money 22%

ICICI Direct 22%

Interpretation:
From the pie chart it is very much clear that ICICI and Reliance Money has equal market share in the market. Its closest competitors are ICICI and India Infoline.

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5. SATISFACTION OF CUSTOMERS WITH CURRENT BROKER

no 30%

yes 70%

Interpretation: From the graph it is very clear that around 1/3rd of the customers i.e. 30% are not satisfied with the present brokers. So there is a chance that Reliance Money can convert these people to its customers.

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6. SATISFACTION LEVEL
80% to 100% 20% 60% to 80% 42% 40% to 60% 10%

below 20% 14% 20% to 40% 14%

Interpretation: From the graph it is very much clear that satisfaction level of around 38% people are below 60%. Only 42% people have a satisfaction level of more than 80%. It will help in increasing the market share of the company.

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7. FREQUENCY OF TRADING
daily 26%

yearly 10% monthly 24%

weekly 40%

Interpretation: Share market gives the maximum return in todays world. Maximum people are doing the trading daily and weekly manner. But 24% people are doing it in a monthly basis and 10% on yearly basis. It shows that there are very less people who invest in share market for a longer period.

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8. INVESTMENT PATTERN AS PERCENTAGE EARNING

10% TO 25% 50% below 10% 38% 25% TO 50% 10% above 50% 2%

Interpretation: It clearly shows that half the people are investing around 10% to 25% of their earning. There are only few players who are investing more than 50% of their earning. This is because of the volatile nature of the share market 88% people are investing below the 25% of their investment.

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CONCLUSIONS, FINDINGS AND SUGGESTIONS FINDINGS

Most of the people are investing in shares now-a-days. So there is a huge market for the brokerage firm.

The people who invest in share they know about Reliance Money and most of the people are aware about Reliance Money.

Reliance Money has a great market share in the area. It is around 22% which is a good sign. It can be a market leader.

Nearly 30% of the people are not satisfied by their current brokers and satisfaction level is below 50% for 35%-40% customers. So they may change their brokerage firms. Reliance Money can acquire these customers.

Reliance Money provides the service at a cheaper cost as compared to other brokerage firms in India.

They are present in all over India. They have around more than 10,000 branches in all over India.

The customers are happy with the brokerage cost.

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During interaction with the customers of Reliance Money, I found that they are not happy with the customer service of Reliance Money.

SUGGESTIONS Based on the findings of the project I would like to suggest the following

After sales services are very important for getting new references. So trained telesales should be appointed for this purpose.
Reliance Money should mention in written that it charges only 1 paisa

on selling and not on buying because people are thinking that there are some underlying charges involved. Along with the limit card they have to go for the percentage brokerage i.e. the charges should be charged based on the transaction amount or turnover. It should provide regular training programs for the advisors in order to update their knowledge. Reliance Money has different financial products like form Demat account to general insurance. Each advisor is not aware about all the products. So for them special training programs should be conducted.

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Reliance Money does not provide any software to the customers. Its competitors are providing software to their customers. Also software makes the customers feel easy for trading. So Reliance Money should provide software to its customers. Many people are not aware about the ULIP plan of life insurance. So there is a huge scope to sell these ULIP policies to the customers.
CONCLUSION Based on the markets survey and SWOT analysis and other market conditions I have come to the following conclusions Although Reliance Money is a new entrant to the market it became able to hold a strong position in todays market. The sales force of Reliance Money mostly consists of youngsters. They can be motivated easily to do a good job as they have a long career to go for. The stock market is very buoyant in the past 2-3 years. It also gives the maximum return from all the investment options one have. So many people are interested in stock market. Because of the recession most of the people are now not investing in stock market. But as market going to stabilize the people will again invest in equity. `
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Till now people know about only two types of insurance plans i.e. term plan and endowment plan. They do not know about the ULIP plans. ULIP plan also provides the high return as compared to other plans. So there is a market for the ULIP plan. Also according to a survey only 18%-20% of people are insured. So there is a huge market potential for the insurance sector. Mutual Fund is also a good option for investment. It minimizes the risk with a higher return. Some people think that it a type of gambling. With FDI limit being relaxed a lot of avenues will open up in the insurance sector and insurance companies are expected to come up with new good plans with a great deal of customization and flexibility.

Questionnaire Form
1. In which of the financial instruments do you invest? a. Shares b. Mutual funds 2. Are you aware of online share trading? a. Yes 3. Have you heard about Reliance Money? a. Yes
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c. Bonds d. Derivatives

b. No

b. No
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4. With which company do you have your demat account? a. ICICI b. Reliance Money c. India Infoline d. Kotak Mahindra e. India Bulls f. Others

5. What differentiates your share trading company from others? (in regards of brokerage, satisfaction, services, products, etc.) 6. Are you currently satisfied with your share trading company? a. Yes 7. What is your satisfaction level? a. Below 20% b. 20% to 40% c. 40% to 60% 8. How often do you trade? a. Daily b. Weekly c. Monthly d. Yearly d. 60% to 80% e. 80% to 100% b. No

9. How do you rate these share trading companies? (from 1 to 5)(ICICI, Reliance Money, India infoline, Kotak Mahindra, India bulls, Others) 10.What do you think you require with your Demat account?

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Personal Data
Name Age Sex Phone number Occupation M F

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BIBLIOGRAPHY
Kotler India Today Magazine http://www.amfiindia.com www.finance.indiamart.com www.investorguide.com
http://www.quickmba.com/marketing/market-segmentation/ http://www.marketingteacher.com/Lessons/lesson_targeting.htm

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