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Brand Image of Bajaj life insurance
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PROJECT REPORT BAJAJ ALLIANZ
1.1 INTRODUCTION TO THE STUDY
Brands are represented in the mind of the consumers through images. Consumers do
not live in an objective and real world. Rather their world is tending to be subjective
and personal. It is the image of the world that mediates between the consumer and the
external real world. A brand is not what actually it is, rather what it perceived as.
Hence image building is crucial task for marketers. It is the brand image which would
either ‘steer away” or “steer towards” a consumer from a brand. Imagery perspective
lays stress on symbolism and imagery aspect of a brand. It is the imagery overhand
above the physical product that may make brand more relevant and meaningful to the
consumers in certain cases.
Brand Image building is “The effort to differentiate the brand psychologically rather
than physically”
According to Sengupta “Brand Image” is the totality of the impressions about the
brand” This according to him includes its physical, functional and psychological
aspects of the brand.
Bajaj Allianz Life Insurance Company Limited is a union between Allianz AG, the
world’s largest insurance companies and Bajaj Auto, one of the biggest 2- & 3-
wheeler manufacturers in the world. Allianz AG is a leading insurance conglomerate
globally and the largest asset manager in the world, managing assets worth over 996
billion Euros. Allianz AG has 115 years of financial experience in over 70 countries
and Bajaj Auto is the most trusted name in the Indian market for over 55 years
together are committed to offering financial solutions that provide all the security one
need for ones family and oneself.
The Project work titled “A Study on the Brand Image of Bajaj Allianz Life Insurance
Company with Special reference to Quilon District” was a modest attempt to
understand the people’s perception of Bajaj Allianz and its products. Determination of
the Company’s Marketing Communication Objective was one of the major purposes
of the study.
Dept Of Management Science 1 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
1.2 TITLE OF THE PROBLEM
“A Study on the Brand Image of Bajaj Allianz Life Insurance Company among
Keralites”
The study aims to find out people’s perception of Bajaj Allianz and its products.
Marketing Communication should always be based on certain predetermined
objectives like creating awareness, creating a liking etc, which is very essential for
effective communication between the buyer and seller. Determination of the
Company’s Marketing Communication Objective was one of the major purposes of
the study.
1.3 NEED FOR THE STUDY
After liberalization large number of Multi National Companies has crossed the
national boundary of our country. Increase in competition and the plan for expansion
has compelled the company to analyse the Brand Image of the company in relation to
its competitors.
As the company plans to increase its sales there is a need to communicate with the
customers through various Medias. For this purpose the company’s marketing
communication objectives should be determined.
Bajaj-Allianz Life Insurance Company is required to know the customers perception
towards their product. Today Insurance industry is one of the sectors which are fast
growing. Recently there is a shift in the Insurance Industry that is many private Multi
National Life Insurance Companies has entered India. This has increased the
competition to a great extend. So the company wants to know the present demand for
Insurance so that they can adjust their market performance accordingly.
Dept Of Management Science 2 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
1.4 OBJECTIVES OF THE STUDY
1.4.1 General Objectives
a. To analyze the Brand Image of Bajaj Allianz Life Insurance Company in
relation to other companies
b. To determine the Marketing Communication Objectives of the company
c. To provide suggestions to the company based on the findings of the study
1.4.2 Specific Objectives
a. To find out the awareness of Bajaj Allianz Life Insurance Company
b. To find out the parameters for rating an Insurance Company
c. To find out the relevance of ethics and transparency in Insurance
d. To find out the most dissatisfying factor that should be rectified by Insurance
Companies.
e. To determine the factors that represent the Brand Image of an insurance
company
1.5 SCOPE OF THE STUDY
a. The study covers the people from different parts of Quilon district
b. The study is aimed at-
Analyzing the Brand Image of Bajaj Allianz Life Insurance Company in relation to other companies
Determination of the Marketing Communication Objectives of the company
c. The study has a time span of six weeks
Dept Of Management Science 3 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
1.6 RESEARCH METHODOLOGY
1.6.1 RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure. In fact the research design is the conceptual framework within which
research is conducted; it constitutes the blueprint for the collection, measurement and
analysis of data.
1.6.2 RESEARCH PROBLEM
A brand is not what actually it is, rather what it perceived as. Hence image building is
crucial task for marketers. It is the brand image which would either ‘steer away” or
“steer towards” a consumer from a brand. Brand Image building is “The effort to
differentiate the brand psychologically rather than physically”
This research analyses the Brand Image of Bajaj Allianz Life Insurance Company in
relation to its competitors.
1.6.3DEFINITION OF KEY TERMS
Descriptive Research
Descriptive research includes surveys and fact-finding enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs as it
exists at present.
Convenience sampling –
When population elements are selected for inclusion in the sample based on the ease
of access.
Population
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PROJECT REPORT BAJAJ ALLIANZ
All the items under consideration in any field of enquiry constitute a ‘universe’ or
‘population’
Sample size
This refer to the number of items to be selected from the universe to constitute a
sample. The size of sample should neither be excessively large, nor too small, it
should be optimum.
Sampling unit
A decision has to be taken concerning a sampling unit before selecting a sample, it
may be an individual.
Sampling error
Sample surveys do imply the study of a small portion of the population and as such
there would naturally be a certain amount of inaccuracy in the information collected.
This inaccuracy may be termed as sampling error. Sampling errors are those errors
which arise on account of sampling and they generally happen to be random
variations in the sample estimates around the true population values.
1.6.4 TYPE OF RESEARCH: DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact-finding enquiries of different kinds.
The major purpose of descriptive research is a description of the state of affairs as it
exists at present. The main feature of this type of research is that the researcher has no
control over the variables. He can only report what has happened or what is
happening.
1.6.5 TYPE OF SAMPLING
Convenient sampling has been used for the purpose of drawing samples from the
population.
1.6.6 POPULATION / UNIVERSE
The population of the study consists of the working public in Quilon District
Dept Of Management Science 5 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
1.6.7 SAMPLING UNIT
The sample unit chosen by the researcher for the purpose of the study is “ an
employed person, in Quilon District”
1.6.8 SAMPLE SIZE
The sample size chosen by the researcher for the purpose of this study is 100 Working
Public in Quilon District
1.6.9 SOURCE OF DATA
Primary Data
Questionnaires were used for collecting Primary Data
Secondary Data
Secondary data were collected from figures, statistics and tables from the company’s
annual publications, memorandums of settlement, websites and from library books
1.6.10 TOOLS FOR ANALYSIS AND INTERPRETATION
The following are the major tools that were used by the researcher for analysis and
interpretation
Percentage Analysis
Ranking Analysis
1.7 LIMITATIONS OF THE STUDY
No study is fully complete in itself – said the elders. Even then not taking
opportunistic shelter in this proverbial saying , the researcher is fully aware of the
many lacunas in this piece of survey , which is presented below
Due to time constraints and busy schedules of the people it was difficult to
interact with them completely
Dept Of Management Science 6 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Convenient Sampling was used and hence all the limitations pertaining to this
may also become part of the findings of the study
The sample size was limited
Had these deficiencies not been there, the outcome of this survey would have been
more interesting and fruitful that what it is in the present form. Alas! As this is only a
pilot survey of small sample size, the same can be expanded to a more efficient and
highly useful study. I hope that this effort would really be useful to the company
management.
Dept Of Management Science 7 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
2 INTRODUCTION TO INSURANCE
There is a fundamental relationship between demography and life insurance business.
India is a vast country and its huge population around 100 crores is the second largest
in the world. As such, in terms of population, India has immense potential for
extending life insurance cover. But to make a realistic assessment of this potential,
apart from the very important factors like age group, income level, sex wise
distribution, literacy level, etc., it is necessary to consider other relevant factors like
varieties of social structure, composition of urban and rural population, etc., in various
parts of the country as also many “invisible” factors like various religious faith and
social values.
Real assessment of the life insurance potential of our country is also a very complex
exercise due to wide “variance” in all aspects of Indian circumstances, and as such
any crude estimate for Indian market without carefully refined analysis can only be
misleading.
The changing economic pattern of our country, changing political scenario, rapid
proliferation of information technology, the resulting changes in the social values,
etc., will also in near future virtually reshape the Indian financial market and
consequently the future potential of life insurance business in this country.
PURPOSE & NEED OF INSURANCE:
The business of insurance is related to the protection of the economic value of assets.
Every asset has a value. Assets are insured, because they are likely to be destroyed or
made non-functional, through an accidental occurrence. Such possible occurrences are
called perils. Fire, floods, breakdowns, lightning, earthquakes, etc., are perils. The
damage that these perils may cause the asset, is the risk that the asset is exposed to.
The risk only means that there is a possibility of loss or damage. It may or may not
happen. There has to be an uncertainty about the risk. Insurance is done against the
contingency that it may happen. Insurance is relevant only if there are uncertainties. If
there is no uncertainty about the occurrence of an event, it cannot be insure against.
Conceptually, the mechanism of insurance is very simple. People who are exposed to
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PROJECT REPORT BAJAJ ALLIANZ
the same risks come together and agree that, if any one of the ‘members’ suffers a
loss, the others will share the loss and make good to the person who lost.
The manner in which the loss is to be shared can be determined before hand. It may
be proportional to the likely loss that each person is likely to suffer. Which is
indicative of the benefit he would receive if the peril befell him? The share could be
collected from the members after the loss has occurred or the likely shares may be
collected in advance, at the time of admission to the group. Insurance companies
collect in advance and create a fund from which the losses are paid.
HOW INSURANCE WORKS:
People facing common risks come together and make their small contributions to a
common fund. The contribution to be made by each person is determined on the
assumption that while it may not be possible to tell beforehand, which person will
suffer, it is possible to tell, on the basis of past experiences, how many persons, on an
average, may suffer losses. The following example explains the above concept of
insurance.
There are 1000 persons who are all aged 50 and are healthy. It is expected that of 10
persons may die during the year. If the economic value of the loss suffered by the
family of each dying person is taken to be Rs. 20,000 the total loss world work out to
Rs. 2,00,000/- if each person of the group contributes Rs.200/- a year, the common
fund would be Rs.2,00,000/-. This would be enough to pay Rs.20, 000 to the family of
each of the ten persons who die. Thus the risks in cases of 10 persons are shared by
1000 persons.
THE BUSINESS OF INSURANCE:
Dept Of Management Science 9 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
The business of insurance done by insurance companies, called insurers, is to bring
together persons with common insurance interest (sharing the same risks), collecting
the share or contribution (called premium) from all of them, and paying out
compensations (called claims) to those who suffer. The premium is determined on the
same lines as indicated in the example above with some additions made for the
expenses of administration.
The business of insurance is nothing but one of sharing. It spreads losses of an
individual over the group of individuals who face common risk. People who suffer
loss get relief because their loss is made good. People who do not suffer loss are
relieved because they were spared the loss.
The insurer is in the position of a trustee as it is managing the common fund for and
on behalf of the community. It has to ensure that nobody is allowed to take undue
advantage of the arrangement. That is to say that the management of the business
requires care to prevent entry into the group of people whose risks are not of the same
kind as well as paying claims on losses that are not accidental. The decision to allow
entry is the process of underwriting of risk. Both underwriting and claim settlement
have to done with great care.
TYPES OF INSURANCE
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Life insurance General insurance Social
insurance
Property insurance Liability insurance
Marine Fire Automobile Cattle Machinery Theft
Fidelity Motor Employees
Insurance Insurance Insurance
The insurance can be classified into three categories from business point of
view
i) Life insurance
ii) General insurance
iii) Social insurance
i) LIFE INSURANCE:
Life insurance is different from other insurance in the sense that, here, the
subject matter of insurance is life of human being. The insurer will pay the fixed
Dept Of Management Science 11 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
amount of insurance at the time of death or at the expiry of certain period. At present,
life insurance enjoys maximum scope because the life is the most important property
of the society or an individual. Each and every person requires the insurance. This
insurance provides protection to the family at the premature death or gives adequate
amount at the old age when earning capacities are reduced. Under personal insurance
a payment is made at the accident. The insurance is not only a protection but is a sort
of investment because a certain sum is returnable to the insured at the death or at the
expiry of a period.
According to the US Life Office Management Association inc. (LOMA) life
insurance is defined as follows: “Life insurance provides a sum of money if the
person who is insured dies whilst the policy is in effect:.
Life insurance today covers a number of contingencies relating to human life –Ds:
DEATH, DISABILITY, DISEASE, and DESTITUTION.
(e.g . . . prolonged old age).
A human life is also an income generating asset. This asset also can be lost through
unexpectedly early death or made non-functional through sickness and disabilities
caused by accidents. Accidents may or may not happen. Death will happen, but the
timing is uncertain. If it happens around the time of one’s retirement, when it could be
expected that the income will normally cease, the person concerned could have made
some other arrangements to meet the continuing needs. But if it happens much earlier
when the alternate arrangements are not in place, insurance is necessary to help those
dependent on the income.
In the case of a human being, he may have made arrangements for his needs after his
retirement. These would have been made on the basis of some expectations like he
may live for another 15 years, or that his children will look after him. If any of these
expectations do not become true, the original arrangement would become inadequate
and there could be difficulties. Living too long can be as much a problem as dying too
young. These are risks, which need to be safeguarded against. Insurance takes care.
Insurance does not protect the asset. It does not prevent its loss due to the peril. The
peril cannot be avoided through insurance. Insurance only tries to reduce the impact
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PROJECT REPORT BAJAJ ALLIANZ
of the risk on the owner of the asset and those who depend on the asset. It
compensates, may not be fully, the losses. Only economic or financial losses can be
compensated.
ii) GENERAL INSURANCE:
The general insurance includes property insurance, liability insurance and other forms
of insurance. Fire and marine insurance are strictly called property insurance. Motor,
theft, fidelity and machines insurance include the extent of liability insurance to a
certain extent. The strictest form of liability insurance is fidelity insurance, whereby
the insurer compensates the loss to the insured when he is under the liability of
payment to the third party.
A. PROPERTY INSURANCE:
Under the property insurance, property of a person / persons is insured against a
certain specified risk. The risk may be fire or marine perils, theft of property of goods,
damage to property at accident.
a) Marine Insurance:
Marine insurance provides protection against loss of marine perils. The
marine perils are collision with rock, or ship, attacks by enemies fire
and capture be pirates etc. these perils cause damage, destruction or
disappearance of the ship and cargo and non-payment of freight. So
marine insurance insure ship (Hull), cargo and freight. Previously only
certain nominal risks were insured but now the scope of marine
insurance had been divided into two parts:
(I) Ocean marine insurance and (ii) Inland marine insurance.
The former insures only the marine perils while the latter covers inland peril, which
may arise with the delivery of cargo (goods) from the godown of the insured and may
extend up to the receipt of the cargo by the buyer (importer) at his godown.
Dept Of Management Science 13 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
b) Fire Insurance:
Fire insurance covers risks of fire. In the absence of fire insurance, the
fire waste will increases not only to the individual but to the society as
well. With the help of fire insurance, the losses arising due to fire are
compensated and the society is not losing much. The individual is
protected from such losses and his property or business or industry will
remain approximately in the same position in which it was before the
loss.
c) Miscellaneous Insurance:
The property, goods, machine, furniture, automobile, valuable articles,
etc, can be insured against the damage or destruction due to accident or
disappearance due to theft. There are different forms of insurances for
each type of the said property whereby not only property insurance
exists but liability insurance and personal injuries are also insured.
B. LIABILITY INSURANCE:
The general insurance also includes liability insurance whereby the insured is liable to
pay the damage of property or to compensate the loss of personal injury or death. This
insurance is seen in the form of fidelity insurance, automobile insurance machine
insurance, etc.
C. OTHER FORMS:
Besides the property and liability insurances, there are certain other insurances, which
are included under general insurance. The examples of such insurances are export-
credit insurances, state employees insurance, etc, whereby the insurer guarantees to
pay certain amount at the certain events. This insurance is extending rapidly there
days.
iii) SOCIAL INSURANCE:
Dept Of Management Science 14 MESCE Kuttippuram
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The social insurance is to provide protection to the weaker section of the society who
is unable to pay premium for adequate insurance. Pension plans, disability benefits,
unemployment benefits, sickness insurance and industrial insurance are the various
forms of social insurance.
INSURANCE SECTOR
The insurance industry worldwide faces challenges in terms of acts of terrorism,
hardening of reinsurance rates and changing global risk architecture. The opening up
of the Insurance sector to private players has led to the introduction of a number of
new products and the Indian market is one of the fastest growing insurance markets.
Insurance business in India is growing at the rate of 15-20%annually and IRDA has
estimated that it is currently of the order of Rs.812.50 cr.5 when combined with
banking services, it adds about 7% of the country’s GDP.Insurance penetration (i.e.,
Premiums as percentage of GDP) has increased from 2032% in 2000 to 2.88% in
2003. Like wise, insurance density (i.e., premium per capita) has increased from
Rs.435.897 in 2000 to Rs.722.092 in (2003)
In line with the economic reforms that were ushered in India in early nineties, the
Government set up a Committee on Reforms (popularly called The Malhotra
Committee) in April 1993 to suggest reforms in the insurance sector. The Committee
recommended throwing open the sector to private player to usher in competition and
bring more choice to the consumer.
MALHOTRA REPORT 1994:
The Government of India appointed a committee under the chairmanship of late R.N.
Malhotra, popularly known as the “Malhotra Committee” for suggesting reforms in
the insurance sector.
The committee submitted its report in January recommending that
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PROJECT REPORT BAJAJ ALLIANZ
1. Government stake in the insurance companies to be brought down to 50% all
the insurance companies should be given greater freedom to operate.
2. Private companies with a minimum paid up capital of Rs.1 billion should be
allowed to enter the industry. No company should deal in both life and general
insurance though a single entity. Foreign companies may be allowed to enter
the industry in collaboration with domestic companies.
3. The insurance Act to be changed. The committee felt the need to provide
greater autonomy to insurance companies in order to improve their
performance and enable them to act as independent companies with economic
motives. For this purpose, it proposed setting up an independent regulatory
body.
PRIVATISATION OF LIFE INSURANCE:
Indian life insurance market was virtually the monopoly of the nationalized life
insurance company, namely the LIFE INSURANCE CORPORATION OF INDIA.
Central Government’s postal life insurance is open mainly to govt. employees only
and central govt. has allowed some state govts and some central govt. departments
and organizations to self-insurance their own employees.
Liberalization of financial services in India started in 1991. The government of India
constituted a committee under R.N. Malhotra for suggesting reforms in the insurance
sector. The committee called “Malhotra Committee” submitted its report in January
1994. Malhotra committee recommended the opening up of the insurance sector. It
suggested a statutory body called Insurance Regulatory Authority (IRA) to reflect on
the development of the insurance sector.
INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY:
The IRDA was established to regulate, promote & ensure orderly growth of
the life & general insurance industry.The authority consists of the following members:
1. A chairperson
2. Not more than five whole life members
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3. Not more than four part time members
The member’s world is appointed by the Central Government. The tenure of the
chairperson and members world is 5 years.
FUNCTIONS OF IRDA
The IRDA exercises all powers & functions of controller of insurance
Protection of the interests of the policy holders.
To issue, renew, modify, withdraw or suspend certificate of
registration.
To specify requisite qualifications & training for insurance
intermediaries & agents.
To promote & regulate professional organizations connected with
insurance
To conduct inspection/investigations etc
To prescribe method of insurance accounting
To regulate investment of funds and margins of solvency
To adjudicate upon disputes.
To conduct inspection & audit of insurers, Intermediaries & other
organizations concerned with insurance.
IMPACT OF PRIVATISATION ON INSURANCE SECTOR IN INDIA
Market expansion:
There has been an overall expansion in the market. This has been possible due to
improved awareness levels thanks to the large number of advertising campaigns
launched by all the players. The scope for expansion is till unlimited as virtually all
the players are concentrating on large cities and towns-expect by LIC to an extent
there was no significant attempt to tap the rural markets.
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PROJECT REPORT BAJAJ ALLIANZ
New Product Offerings:
There has been a plethora of new and innovative product offered by the new players,
mainly from the stable of their international partners. Customers have tremendous
choice from a large variety of products from pure term (risk) insurance to unit-linked
investment products. Customers are offered unbundled products with a variety of
benefits as riders from which they can choose. More customers are buying products
and services based on their true needs and not just traditional money back policies,
which is not considered very appropriate for long-term protection and savings.
However, there are till some key new products yet to be introduced –e.g. health
products.
Customer Service:
Not unexpectedly, this was one area that witnessed the most significant change with
the entry of new players. There is an attempt to bring in international best practices in
service and operational efficiency through use of latest technologies. Advice and need
based selling is emerging through much better trained sales force and advisors. There
is improvement in response and turnaround times in specific areas such as delivery of
policy receipt, policy document, premium notice, final maturity payment, settlement
of claims etc. However, there is a long way to go and various customer surveys
indicate that the standards are still below customer expectation levels.
Channels of Distribution:
Till four years back, the only mode of distribution of life insurance products was
through Agents. While agents continue to be the predominant distribution channel,
today a number of innovative alternative channels are being offered to consumers.
Some of them are banc assurance, brokers, the internet and direct marketing.
The entry of many of the global insurance into the Indian market is the form of joint
ventures with Indian companies. Some of the key names are Prudential, AIG, New
York Life, Allianz, Standard life, Sun Life Canada and Old Mutual. The entry of new
players has rejuvenated the erstwhile monopoly player LIC, which has responded to
the competition in an admirable fashion by launching new products and improving
service standards
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MAJOR PLAYERS IN THE FIELD OF LIFE INSURANCE
Birla sun Life Insurance Co.Ltd.
DaburCCU Life Insurance Company Pvt.Ltd.
Bajaj Allianz Life insurance Co.Ltd
ICICI Prudential Life Insurance Co.Ltd.
Life Insurance Corporation of India
Max New York Life Insurance Co.Ltd.
Om Kotak Mahindra Life insurance Co.Ltd.
SBI Life Insurance Co.Ltd.
HDFC Standard Life Insurance Co.Ltd.
Tata AIG Life Insurance Co.Ltd.
Reliance Life Insurance Co.Ltd
MAJOR PLAYERS IN THE FIELD OF GENERAL INSURANCE
The non-life sector primarily consists of fire and miscellaneous risk insurance
policies. Also, since motor vehicle cover is compulsory in India, it acts as another
chief source of business in the non-life sector.
Allianz Bajaj General insurance Co.Ltd.
ICICI Lombard General Insurance
IFFCO Tokyo General Insurance
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Reliance General Insurance
Royal Sundaram Alliance Insurance
PROFILE OF MAJOR INSURANCE COMPANIES IN INDIA
1. Bajaj Allianz
Bajaj Allianz is a joint venture between Allianz AG one of the world's largest
insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler
manufacturers in the world. Bajaj Allianz is into both life insurance and general
insurance.
Allianz Group is one of the world's leading insurers and financial services providers.
Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost
174,000 employees. Bajaj group is the largest manufacturer of two-wheelers and
three-wheelers in India and one of the largest in the world.
Today, Bajaj Allianz is one of India's leading and fastest growing insurance
companies. Currently, it has presence in more than 550 locations with over 60,000
Insurance Consultants
2. AMP Sanmar Assurance Company Limited
AMP Sanmar Life Insurance was a joint venture between AMP, Australia and the
Sanmar Group. Headquartered in Chennai, AMP Sanmar had over 90 offices across
the country, 9,000 agents and more than 900 employees.
3. Aviva Life Insurance Company India Pvt. Ltd.
Aviva Life Insurance Company India Pvt. Ltd is a joint venture between Aviva of UK
and Dabur, one of India's leading producer of traditional healthcare products. Aviva
holds a 26 per cent stake in the joint venture and the Dabur group holds the balance
74 per cent share. Aviva is UK's largest and the world's sixth largest insurance Group.
It is one of the leading providers of life and pensions products to Europe and has
substantial businesses else where around the world.
Aviva pioneered the concept of Bancassurance in India.Aviva has 40 Branches in
India (including rural branches) supporting its distribution network. Through its
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Bancassurance partner locations, Aviva products are available in 378 towns and cities
across India
4.. Birla Sun Life Insurance Company Limited
Birla Sun Life Insurance Company Limited is a joint venture between Aditya Birla
Group and Sun Life Financial of Canada. Aditya Birla Group is an Indian
multinational conglomerate with presence in India, Thailand, Indonesia, Malaysia,
Philippines, Egypt, Canada Australia ,and China.
Sun Life Assurance, Sun Life Financial's primary insurance business, is one of the
leading insurance companies of the world and ranks amongst the largest international
financial services organisations in the world. The Group has presence in several
countries such as Canada, United States, Philippines, Japan, Indonesia, India and
Bermuda.
5. HDFC Standard Life Insurance Company.Limited
HDFC Standard Life Insurance Company.Limited. is a joint venture between HDFC
Ltd., India's largest housing finance institution and Standard Life Assurance
Company, Europe's largest mutual life company. It was the first life insurance
company to be granted a certificate of registration by the IRDA on the 23rd of
October 2000.HDFC Standard Life Insurance Co. is a joint venture between HDFC
Ltd., India's largest housing finance institution and Standard Life Assurance
Company, Europe's largest mutual life company. It was the first life insurance
company to be granted a certificate of registration by the IRDA on 23rd
October2000.
Standard Life, UK was founded in 1825 and has experience of over 180 years.
Companies. The company is rated as "very strong" by Standard & Poor's (AA) and
"excellent"byMoody's(Aa2).
HDFC Standard Life's cumulative premium income, including the first year premiums
and renewal premiums is Rs. 672.3 Crores for the financial year, Apr-Nov 2005. So
far the company has covered over 11,00,000 individuals and has declared 5th
consecutive bonus in as many years for its 'with profit' policyholders.
6. ICICI Prudential Life Insurance Company
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PROJECT REPORT BAJAJ ALLIANZ
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudential plc, a leading international financial
services group headquartered in the United Kingdom.
ICICI was established in 1955 to lend money for industrial development. Today, it
has diversified into retail banking and is the largest private bank in the country.
Prudential plc was established in 1848 and is presently the largest life insurance
company in the UK. ICICI Prudential is currently the No. 1 private life insurer in the
country. For the financial year ended March 31, 2005, the company garnered Rs 1584
crore of new business premium for a total sum assured of Rs 13,780 crore and wrote
nearly 615,000 policies.
7. ING Vysya Life Insurance Company Limited
ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank
and ING Group of Holland, the world's 4th largest financial services group, with
presence across 50 countries, and a heritage of over 150 years.
ING Vysya Life Insurance Company Private Limited entered the private life
insurance industry in India in September 2001. With in a short span of time ING
Vysya Life Insurance has registered an impressive growth. The company currently
has over 10,000 active advisors working from 75 branches (in 30 cities) across the
country and over 2300 employees.
8. Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak
Mahindra Bank Ltd.(KMBL), and Old Mutual plc. Kotak Mahindra is one of India's
leading financial institutions and offers a range of financial services such as
commercial banking, stock broking, mutual funds, life insurance, and investment
banking.
Old Mutual was established more than 150 years ago and offers a diverse range of
financial services in South Africa, the United States and the United Kingdom. The
company is listed on the London Stock Exchange with a market capitalization and has
its headquarters in London.
9. Life Insurance Corporation of India (LIC)
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PROJECT REPORT BAJAJ ALLIANZ
Life Insurance Corporation of India (LIC) is an autonomous body authorized to run
the life insurance business in India with its Head Office at Mumbai. It has been
established by an act of the Parliament and started functioning from 1/9/1956.
LIC is the biggest insurance player in the country. Out of the total premium of Rs
3766 crore generated by the insurance industry through group business in the year
2005-06, LIC alone accounted for Rs 3051 crore.
In the financial year 2005-06, LIC has grown at 30.68%. In respect of number of lives
insured, LIC has shown a growth of over 152%. In respect of number of schemes, LIC
has a growth of 2%. LIC's market share in number of individuals covered and number
of policies stands at 77% and 81%, respectively.
10. MetLife India Insurance Co. Pvt Ltd
MetLife India Insurance Co. Pvt Ltd is a joint venture between MetLife Group and its
Indian partners. The Indian partners include J&K Bank, Dhanalakshmi Bank,
Karnataka Bank, Karvy Consultants, Geojit Securities, Way2Wealth, and Mini
Muthoothu.
Met Life Group has presence in America and Asia and has an experience of over 137
years in providing financial services. The MetLife companies are the number one life
insurer in the U.S. with approximately US $2.8 trillion of life insurance in force.
MetLife serves 88 of the top one hundred FORTUNE 500 companies. MetLife
entered Indian insurance sector in 2001.
11. Reliance Life Insurance Company Limited
Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the
Reliance - Anil Dhirubhai Ambani Group. The company acquired 100 per cent
shareholding in AMP Sanmar Life Insurance Company in August 2005. Taking over
AMP Sanmar Life provided Reliance Life Insurance a readymade infrastructure and a
portfolio.
12 . SBI Life Insurance Company Ltd
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PROJECT REPORT BAJAJ ALLIANZ
India’s largest bank and Cardiff S.A. a leading insurer in France came together to
form SBI Life. State Bank of India is the largest banking franchise in India. Along
with its 7 Associate Banks, SBI Group has a network of over 14,000 branches across
the country, the largest in the world.
Cardiff is a wholly owned subsidiary of BNP Paribas, which is The Euro Zone's
leading Bank. BNP is one of the oldest foreign banks with a presence in India dating
back to 1860.
3 INTRODUCTION TO BAJAJ ALLIANZ LIFE INSURANCE
A PARTNERSHIP BASED ON SYNERGY:
Bajaj Allianz Life Insurance Company Limited is a union between Allianz AG, the
world’s largest insurance companies and Bajaj Auto, one of the biggest 2- & 3-
wheeler manufacturers in the world. Allianz AG is a leading insurance conglomerate
globally and the largest asset manager in the world, managing assets worth over 996
billion Euros. Allianz AG has 115 years of financial experience in over 70 countries
and Bajaj Auto is the most trusted name in the Indian market for over 55 years,
Dept Of Management Science 24 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
together are committed to offering financial solutions that provide all the security one
need for ones family and oneself.
At Bajaj Allianz, customer delight is the guiding principle. Ensuring world-class
solutions by offering customized products with transparent benefits, supported by the
best technology is the business philosophy.
ALLIANZ AG
Allianz, one of the leading global insurance companies with its headquarters in
Munich, Germany, was established in 1890. With over 700 subsidiaries and
approximately 181,635 employees worldwide, Allianz global network extends to over
70 countries. Allianz’s shares are offered at the 5 leading international stock
exchanges: Frankfurt, London, Paris, Zurich and New York. Allianz AG, Germany
Allianz AG is in the business of General (Property & Casualty) Insurance; Life &
Health and Asset Management and has been in operation for over 110 years. Allianz
is one of the largest global composite insurers. Further, the group provides Risk
Management and Loss Prevention Services. Allianz has insured most of the world’s
largest infrastructure projects (including Hongkong Airport and Channel Tunnel
between U.K and France), further Allianz insures the majority of the fortune 500
companies, besides being a large industrial insurer, Allianz has a substantial portfolio
in the commercial and personal lines sector, using a wide variety of innovative
distribution channels.
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PROJECT REPORT BAJAJ ALLIANZ
BAJAJ LIMITED: THE PROMOTERS
Incorporated in 1945 under the leadership of Mr.Rahul Bajaj, CMD; Bajaj Auto Ltd
has grown into the world’s largest 2 & 3 - wheeler manufacturer having a network of
over 375 across India and distribution network over 60 cities. Having AAA Rated,
Bajaj Auto, over the years, has been continuously working on developing an
environment friendly vehicle. The company is ranked 4th in the world in terms of its
sales volumes and is also the largest exporter of 2 & 3 wheelers. Based on its own
brand of globalization Bajaj has vigorously built its distribution network over 60
countries worldwide.
BAJAJ ALLIANZ -A GROWING FORCE
The fastest growing private life insurance company in India with a
growth rate of 380%.
Bajaj Allianz has a sales of over 8, 50,000 policies to satisfied
customers.
Bajaj Allianz has a countrywide network of 500 offices.
Bajaj Allianz is Ranked No.1 among private life insurance companies
in India.
Assets under management of Bajaj Allianz are Rs.936 Cr.
Bajaj Allianz has a shareholder capital base of Rs.267 Cr.
Bajaj Allianz is geared to perform.
The Products of the company are tailored to suit everyone’s needs.
Decentralized organization structure of the company enables faster
response.
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PROJECT REPORT BAJAJ ALLIANZ
Wide reach to serve customers better-a network of 500 offices across
India.
Bajaj Allianz has specialized departments for Banc assurance,
Corporate Agency and Group Business.
Well networked with the state-of-the-art IT systems.
High standards of customer service and simplified claim settlement
process in the industry has lead the company to rank No:1 among the
private Life Insurance Companies
The company has its own Website to provide assistance and
information across all products and services, online buying and online
renewals.
Bajaj Allianz has its own Toll free number to answer all queries,
accessible from anywhere in the country - 1600225858.
A strong telemarketing and direct marketing team adds to the
strengths of the company
The company has a Strong branch network in over 450 towns and
growing everyday.
Over 5000 sales team managers.
Over 60,000 insurance consultants.
In 2004, 3 COT and 117 MDRT qualifiers.
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PROJECT REPORT BAJAJ ALLIANZ
VISION AND MISSION STATEMENT
SHARED VISION
“To be the best life insurance Company in India to buy from, work for & to invest
in.”
SHARED MISSION:
1. To be in the Top 2 life insurance companies in India by new business and in
force business.
2. To have PAN presence by locating in all 500 districts and have at least 100
branches and an agency force of at least 20,000.
3. To provide highest quality service by ensuring
. Highest customer retention in the industry.
. Every customer will be contacted by us at least once per year.
. Response to customers / agents within 48 hours.
. Embrace technology to optimize efficiencies.
. To be able to offer to the customer from one point-life, health, pensions,
general and mutual funds.
4. To achieve the return on investment required by our shareholders on a
continuing basis.
5. Acknowledge the distinctive of all members of our team by-
. Rewarding contribution and performance equitably.
Dept Of Management Science 28 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
. Providing development opportunities to allow our team to enhance shill
and fulfill aspirations.
SHARED VALUES
Bajaj Allianz will
1. Be a winning team.
2. Have a passion for excellence and avoid bureaucracy.
3. Be empowered, the confidence to take decisions quickly and be accountable.
4. Be driven to achieve results, to deliver.
5. Be professional and social committed.
6. Be open to ideas, sharing, transparent & trusting.(=boundary less)
7. Focus everything we do on our customer.
8. Make Bajaj Allianz a “great place to work”.
9. Have a sense of humor.
SUPERIOR TECHNOLOGY:
In order to ensure speedy and accurate processing of your needs, we have established
world class technology, with renowned insurance software, which networks all our
offices and intermediaries using the web, policies can be issured from any office
across the country for retail products.
Unique, user friendly software developed to make the process of issue of policies and
claims settlement simpler (e.g. online insurance of marine policy certificate).
Unique forms of Risk Cover
Special PA cover for Amarnath Yatris
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PROJECT REPORT BAJAJ ALLIANZ
Film insurance
Event management cover
Sport & Entertainment insurance package
Risk management – our expertise
Our service methodology is tried, tested and proven the world over and
involves.
Risk identification, inspections
Risk analysis, portfolio review and gap analysis
Risk retention
Risk transfer, to an insurer as well as reinsurer (as required)
Creation of need based products
Ongoing dialogue and proactivity
CLAIMS PHILOSOPHY:
The Bajaj Allianz team follows a service that aims at taking the anxiety out of claims
processing. We pride ourselves on a friendly and open approach. We are focused
towards providing you a hassle free and speedy claims processing.
Be flexible and settle fast
Ensure no claim file to be seen by more than 3 people
Check processes regularly against the global Allianz OPEX (Operational
Excellence) methodology. Sold over 1 million since inception.
CUSTOMER ORIENTATION:
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PROJECT REPORT BAJAJ ALLIANZ
At Bajaj Allianz, our guiding principles are customer service and client satisfaction.
All our efforts are directed towards understanding the culture, social environment and
individual insurance requirements – so that we can cater to all your varied needs.
EXPERIENCED AND EXPERT SERVICING TEAM:
We are driven by a team of experienced people who understand Indian risks and are
supported by the necessary international expertise required to analyze and assess
them.
4.1LITERATURE SURVEY
NEED FOR BRANDING IN INSURANCE
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PROJECT REPORT BAJAJ ALLIANZ
Branding is the new key challenge in the financial services industry. Life in the 21st
century will be longer with more choice in more fields of activity. The financial
consequences of an increased life span are particularly likely to be tough. Inevitably,
this will lead to more complexity which in turn necessitates greater clarity and appeal
from the service providers.
Branding is more relevant in the financial services market which not only faces the
problem of securing and retaining customers in an increasingly competitive
marketplace but also experiences the need for heightened relevance of the brand
proposition in a world where brand has been termed the new religion.
Focus and strategy are essential to the development of brand in any sector but the less
tangible world of financial products historically has escaped the branding issues that
have governed development and culture in other industries.
If there was one industry which least considered branding as an essentiality it would
be the insurance industry. It was always felt as an abstract service or a fallback, more
like a safety net. But it is more often than not sold through intermediaries who have
already done the task of sifting through competitive products to select the most
appropriate one.
But with liberalisation of the industry, players have to realise the need for branding in
a competitive environment. Insurance companies need to strive for greater customer
focus regardless of whether the customer is the end user or the intermediary.
The global insurance industry itself is witnessing a period of consolidation and
companies are thinking about how brand equity can work to their advantage. The
European trend for bancassurance that created giants like AXA and Winterthur set a
precedent followed in Lloyds TSB's acquisition of Scottish Widows.
But in turn, increased competition and customer choice mean greater expectations and
the medium of channel delivery cannot be overlooked. With the Internet redefining
the way business is done, the brand proposition needs to be convincing in a new
Dept Of Management Science 32 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
dimension. In cyberspace, clear corporate branding is even more vital in the absence
of physical presence and issues of trust and reliability are more imperative.
In India, the LIC has been successful in creating a strong brand. In rural India, the
LIC is especially synonymous with insurance. But in the wake of competition it has to
do a considerable brand building exercise at least in urban India.
On the other hand the general insurers have a lot of work to do. There is hardly any
brand identity and leave alone loyalty. If the general insurers do not realise the
importance of branding they would be definitely knocked off their feet by the strong
foreign brands.
Adequate time, investment and longer-term management of the brand are essential,
not only for success but also survival. All brands need to be built around well-
differentiated and credible positioning that springs from the organisation's history.
The brand must not only be believed but lived by management and employees.
An additional factor is the strong sales orientation that defines the way insurance
companies operate. More often than not the industry fails to be marketing-driven.
Equally, lack of direct contact with the end user compounds targeting difficulties
which leads cyclically back to the question of whether the brand should be focused at
the intermediary or customer.
Finally the same principles apply whether it is branding a cigarette or an insurance
company. Customers want and expect good service. They need to be presented with
credible and attractive propositions that deliver value whether it is an everyday or
once-a-lifetime option.
Source :www.insuremagic.com
BRAND IMAGE KEY TO INSURANCE COMPANIES ' GROWTH'
C.J. Punnathara
Dept Of Management Science 33 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Kochi , Dec. 25
IN the fiercely competitive world of the services industry, image building and brands
are becoming increasingly imperative for insurance companies
"The days when insurance companies wait for the customers to step in are over. We
have to re-build our brands and images in order to attract and retain customers
currently flooded with alternative choices. Technology and customer loyalty are two
independent facets of the picture, but they have to be consistently reinforced with the
right image and brand," says experts.
Realising the emerging needs of the times, SBI has appointed 11 regional
correspondents across all their regional offices, to interact with the media, handle
public relations, build up the brand image of the their insurance company, interact
with government officials and other important people.
"Building a new corporate brand image is becoming mandatory for all the insurance
companies in the country. The world of insurance in India had been transformed with
the advent of the new generation private sector insurance companies, with their high
levels of automation, new and technology savvy products, high decibel brand
building, and smart and swank branches.
These new insurance companies also had the inherent advantage of starting with the
right brand and image suited for the current times, a senior banker said.
Some of the insurance companies have re-designed their logo and the colour and
display style of their names.Smaller insurance companies are also making major
inroads. "We were one of the first old-generation banks to re-launch logo three years
ago. Source :www.insuremagic.com
BANACASSURANCE-BUILDING A SUCCESSFUL PRODUCT STRATEGY ’
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What needs to be delivered
Simple range of basic Bancassurance products
Products easily understood by customers & sales people
Basic product designs, but distinctive & tailored to each bank
Tailored to the needs of target customer segments
Proven to meet identified needs
Product design with inbuilt loyalty triggers
Branding that meets customer expectations
Source : www.insuremagic.com
WHERE EMPLOYEE ATTITUDES MEET BRAND IMAGE
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Rick Garlick, Ph.D. (Maritz Research) in his article" Where employee attitudes
meet Brand Image” Published by The Wise Marketer in October 2003 states
that:
Strong brands rule for employees and customers alike. The impact of a strong brand
image is both direct and indirect: while customers may, at least in part, be drawn to a
brand because of its reputation, talented employees may also be drawn to companies
which they've identified as 'a great place to work'. In turn, those employees show
greater commitment, stay longer, and feel a greater sense of personal loyalty. They
continue as guardians of the brand image as the company's culture becomes
permanently ingrained in their hearts and minds.
The brand is the personification of the company. Guiding brand values, modeled
consistently by senior leaders, and owned at every level of the company, translate into
a brand identity that appeals to consumers. When the culture of the organization
consistently reinforces the brand's core values and principles, employees become 'true
believers' and advocates for the brand.
Companies strengthen their brand image by helping employees consistently deliver
the brand promise to customers who, in turn, see it reinforced that their perceptions of
their chosen brand are correct. This closed-loop approach to brand management can
pay dividends in many ways, including more efficient operations and labour
utilization, improved service, and consistently satisfied customers who also become
advocates for the brand.
HAVING A BRAND IMAGE IS NOT A “HAVE OR HAVE NOT”
PROPOSITION
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PROJECT REPORT BAJAJ ALLIANZ
Having a brand image is not a “have or have not” proposition. Everyone has one. The
problem is that you might have more than one brand image, depending on whom you
ask. You know yourself, but depending on whom you talk to, others may think you’re
something completely different. That’s when a brand image company like Brand
Identity Guru Inc. can help. Brand Identity Guru Inc. is a brand image company that
identifies your most powerful brand image and then works to make it your only brand
image.
The phrase “brand image” gained notoriety when sales patterns began to show that
feelings and visuals associated with brands were powerful motivators to purchase
products. It isn’t just products that consumers buy. It’s their associated personalities
and values. Great brand images are instant, positive and unique among competitors.
Brand images can be reinforced through such vehicles as packaging, ads, promotions,
customer service and word-of-mouth.
Good brand images are easy to see. Volvo is a good one. Immediately you think
“safety.” That’s a brand image. A weak brand images, on the other hand, elicits a
slower and less certain reaction. What does GM stand for? Who knows? But GM has
a few strong sub-brands. Everyone knows what a Corvette is about…HIGH-SPEED
FUN!
Source: www.brandidentityguru.com/brand_image_company.htm
Larry Light (McDonald's chief global marketing officer), Branding Asia Journal
Says:
"Identifying one brand position, communicating it in a repetitive manner is old-
fashioned, out of date, out of touch." Even more bluntly, Light highlights "the end of
brand positioning as we know it," calling it "marketing suicide." Even a top executive
at advertising giant Leo Burnett is willing to stand before his CEO peers and admit,
"the old ways of marketing are not working any more."
RALPH LAUREN: CONTINUED STRENGTH IN BRAND IMAGE
Tim Hussar submits:
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Ralph Lauren (RL) has had a nice six months. The stock has seen a 38% increase in
that time period and they posted strong results in their last quarter.
They had strong growth in their retail and wholesale segments and predicted low
double digit revenue growth for this quarter, while upping their expected earnings per
share to $3.50-3.60 for the full year. The strength behind this continued earnings
growth lies in Ralph Lauren's brand image. They have always been the premier
American luxury clothier and will continue to foster that image.
Source : retail.seekingalpha.com/article/25347
IOB: NARAYANASAMI BETS ON BRAND IMAGE
T.S. Narayanasami, Chairman and Managing Director, Andhra Bank, is set to take
over as the new Chairman and Managing Director of Indian Overseas Bank (IOB).
Narayanasami told Business Line, "The brand image of IOB and its network with
branches located in strategic and potential centres are a source of strength to the bank.
IOB also has the advantage of leveraging on its overseas presence, though limited."
Source: sify.com/finance/fullstory.php?
BRAND IMAGE OF KBL
KBL has a strong brand image in fluid-handling products across the globe.The
company has been active in this industry for more than 80 years; this experience has
facilitated it in having a better understanding of customer requirements. KBL been
able to leverage its brand image to penetrate the EU market.
Source : (www.ibef.org)
FRAMEWORK OF BRAND EQUITY FORMATION
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PROJECT REPORT BAJAJ ALLIANZ
Graham Fedrick in his article “Framework of Brand Equity Formation”
Published by Branding Asia .com says that:
Basic Brand Tracking is a scorecard that permits a brand equity assessment of a
brand. Measuring brand equity provides clients with a basis for judging the
effectiveness of brand building activities and helps them diagnose exactly how the
brand, as an asset, is progressing over time (measuring, for example, growth in
awareness, familiarity, commitment, etc-compared to key competitors). The
assessment helps identify the critical forces behind a brand's success, failure, and all
points in between, to improve the effectiveness of brand building activities.
Analytically, the drivers of the brand and changes in marketplace dynamics, relative
to the key constituencies, are modeled. Typical output is:
An assessment of the brand vis-à-vis key current and potential competitors on each of
the components, with a special focus on distinction and commitment components;
Perceptual maps that graphically show the position of the brand on key component
elements;
Differences in the drivers of commitment by audience;
Changes in the brand vis-à-vis its competitors versus the benchmark wave;
Changes in marketplace dynamics versus the benchmark wave; and,
Recommendations regarding brand strategy.
Brand Reputation: The Corporate Social Responsibility field has contributed several
approaches that are well suited for measuring brand equity. Our proprietary reputation
measurement system is a useful framework for measuring brand equity among
stakeholders (it groups stakeholders into customers, society, employees, and capital
providers, all within the umbrella of targets of Super Brand).
The model uses brand association patterns to show the degree to which stakeholder
groups contribute to brand reputation according to specific parameters like overall
Dept Of Management Science 39 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
opinion, loyalty, satisfaction, and advocacy. Brand reputation measurement can be
used in specific situations, and an argument can be made that reputation research is
also an appropriate general-purpose brand measurement tool. Brand Permission
measures the extent to which customers accept a brand as a legitimate competitor for
their business, in whatever business sector. The brand permission concept is quite
simple. We recognize that in any given market, brand imagery will resonate-
sometimes more strongly, sometimes less so-and that this will profoundly impact the
potential success of a brand relative to its competition. We use the terms
THE IMPORTANCE OF BRAND IMAGE IN STARTING UP COMPANY’S
Scott D white in his article “The importance of Brand Image in starting up
Company’s” Published by U X Matters, February 10th 2006 says:
A brand is not just a logo; it is all your ethics and persona. This includes your style of
design, your execution of that design, your attitude, your logo, your marketing; your
internal policies and even your business process can all influence your brand image. If
image is everything then this image needs to be right. Most companies are so worried
about their image to the end user that they forget about communicating this to
employees which can create mixed messages when these employees are representing
the company elsewhere. Make sure all of your staff are on board and believe
passionately in your brand and key messaging. Also your suppliers are good
advocates for your brand and they will also spread the word about your service and
style of approach.
Brand = the sum of all perceptions resulting from every point of contact a person
has with a company either directly or indirectly over time.
DEFINING CORPORATE IDENTITY, BRAND IDENTITY AND BRAND
IMAGE
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PROJECT REPORT BAJAJ ALLIANZ
Nick Wreden (2006) in his article “Defining Corporate identity, Brand Identity
and Brand Image”, published by E-zine articles says that:
Corporate identity is a company’s visual presence, which involves the corporate logo
and design strategy for corporate marketing collateral. Corporate identity does not
encapsulate brand identity, which is best defined as the soul of your company.
However, a corporate identity may, and often does, reflect a brand identity Brand
Identity - It’s the essence of your company Brand identity is the complete package of
a business to its customers. It includes the company’s service reputation, product
quality, features, benefits, performance and value. It is the summation of all these
things, which create brand identity. Brand Image is the market’s perception of your
brand identity, which may or may not coincide with your intended brand identity.
Companies must work hard at the daunting task of getting brand identity and image to
align…or hire a true branding .
A BRAND NEW "WAR OF THE WORDS" HAS JUST STARTED...
Naseem Javed in his article“A Brand New "War of the Words" Has Just
Started...”published by The Canadian Association says:
How Associations Can Improve Corporate Images & Name Identities
In the old strategy the key for success was in the total image, including the logo
design and color. The name of a corporation was not the key issue, but rather a part of
a jigsaw puzzle. The emphasis was placed on the logo, specific colors and graphic
designs, tag lines and other paraphernalia, to create a total visual-identity experience.
The rule of cyber domination is very simple: It all boils down to a powerful name,
which equals to a powerful domain name (or URL,) which is then used as a key to
find and unlock the Web site in a complex global maze. It is all based on how well
you can remember the name, how easily you can type in, how to find the corporation
right upfront on a search engine and how to get instant accessibility.
This is a very big change and has created a noticeable shift in how companies built
global corporate images in cyber space. This shift also explains the rush of advertising
Dept Of Management Science 41 MESCE Kuttippuram
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agencies, as well as advertisers’ confusion regarding cyber marketing. In today’s
corporate world, the key to success, or the “magic”, clearly lies in the name -- a URL
to set the company apart in the global e-commerce arena. Let’s face it, when a name
cannot be found easily on the net, the corporation is no longer in cyber domination –
rather, it is in cyber oblivion. Forget the total corporate identity and image experience.
Follow the new rules and audit your Association's names and brands.
CREATING A POSITIVE BRAND IMAGE TO INCREASE MARKET SHARE
Cavelle Francisin in his article “Association: Creating a positive Brand image to
increase market share” published by Rockbridge Articles
Consumers tend to view a brand's image as an integral part of the product or service
they are purchasing. They are not only buying the actual product or service, but the
status, prestige and perceived benefits associated with the organization that is doing
the selling - intangible qualities that differentiate the item of choice from all other
similar offerings in the marketplace. Consider this: the majority of foods we purchase
have brand images associated with particular items that make consumers perceive the
products in a more favorable light (e.g., Lean Cuisine). Similarly, this applies to the
vehicles we drive (Mercedes Benz), our credit cards (American Express), the clothes
we wear (Tommy Hilfiger) and even the statement we can make with a particular
brand of pen (Mont Blanc) In a marketplace cluttered by clones and homogeneous
products and services, it is important to create a brand image that differentiates itself
from competitors and suggests integrity, dependability, and high quality with an
emphasis on excellent service. This is the key to ensuring customer satisfaction and
loyalty, which in turn translates into a larger market share for the company concerned.
INSURANCEINSURANCE
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India’s Insurance Business Likely To Jump By 500% In 2010: ASSOCHAM
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has
projected about 500% hike in the size of domestic insurance business which will grow
to US$ 60 billion by 2010 from the current size of around US$ 10 billion as the
growing competitive age is developing a larger appetite among people for wider
insurance coverage.
A large part of rural India is still untapped due to poor distribution, large distances
and high costs relative to returns. Urban sector insurance is estimated to reach US $25
billion by 2010, life insurance US $15 billion and non-life insurance US $10 billion
Table No:1
Projected figures by 2010
A town/village where population is less than 25000
CategoryRural & Semi-Urban Urban Total
Life Insurance20 15` 35
Non-Life Insurance15 10 25
Total35 25 60
Source :Secondary Data Source :Secondary Data
BUOYANT RURAL MARKETS-IMMENSE POTENTIAL FOR INSURANCEBUOYANT RURAL MARKETS-IMMENSE POTENTIAL FOR INSURANCE
Dept Of Management Science 43 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
The Indian economy registered a good GDP growth rate of 8.2%during 2003-04 asThe Indian economy registered a good GDP growth rate of 8.2%during 2003-04 as
against 4.3% during the year 2002-03. The acceleration in the GDP growth rateagainst 4.3% during the year 2002-03. The acceleration in the GDP growth rate
during 2003-04 can be attributed to good and timely monsoons and the resultantduring 2003-04 can be attributed to good and timely monsoons and the resultant
resurgence of agriculture. Agriculture and allied activities contributed 25% to theresurgence of agriculture. Agriculture and allied activities contributed 25% to the
growth rate of GDP as against a negative contribution of 31% in 2002-03.growth rate of GDP as against a negative contribution of 31% in 2002-03.
With the resurgence in agricultural growth, the rural markets have become buoyantWith the resurgence in agricultural growth, the rural markets have become buoyant
and it is time for insurers to tap the highly underinsured as well as uninsured ruraland it is time for insurers to tap the highly underinsured as well as uninsured rural
market.market.
The opportunities for the insurance companies are because of the huge population andThe opportunities for the insurance companies are because of the huge population and
the steady growth of agriculture and allied sectorsthe steady growth of agriculture and allied sectors
Table No:2
Population spread in Indian Villages
Population Strata No: of Villages % Of Population
Above 10,000 1831 0.3
5-10,000 7145 1.3
2-5000 46754 8.4
1-2000 94658 16.9
500-1000 136232 24.7
Below 500 340380 48.7
Source :Insurance Chronicle,ICFAI, August 2005Source :Insurance Chronicle,ICFAI, August 2005
RURAL POPULATION AND INSURANCE PENETRATIONRURAL POPULATION AND INSURANCE PENETRATION
Dept Of Management Science 44 MESCE Kuttippuram
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According to a study conducted by FICCI_ING on insurance penetration in rural areasAccording to a study conducted by FICCI_ING on insurance penetration in rural areas
, a high level of awareness about insurance, particularly life insurance was seen. about, a high level of awareness about insurance, particularly life insurance was seen. about
one third of the respondents owned some insurance product or the other. among thoseone third of the respondents owned some insurance product or the other. among those
who owned insurance, there was a feeling of being under insured and those who didwho owned insurance, there was a feeling of being under insured and those who did
not have one felt the need for insurance coverage. Insurance was largely seen as a risknot have one felt the need for insurance coverage. Insurance was largely seen as a risk
cover instrument and not so much as an investment option. Further statistics showscover instrument and not so much as an investment option. Further statistics shows
that rural population has lower exposure. The agents per 1,000 people are aroundthat rural population has lower exposure. The agents per 1,000 people are around
0.25,which is very low in comparison to that of the urban market.0.25,which is very low in comparison to that of the urban market.
Table No:3Table No:3
RURAL POPULATION AND INSURANCE PENETRATIONRURAL POPULATION AND INSURANCE PENETRATION
Total Population (as on July 2002)Total Population (as on July 2002) 1.05 Billion1.05 Billion
Rural PopulationRural Population 72.22%72.22%
Urban PopulationUrban Population 27.78%27.78%
Insurance penetration in rural marketInsurance penetration in rural market 20.00%20.00%
Though the prospects in the rural sector are promising, the real challenge lies inThough the prospects in the rural sector are promising, the real challenge lies in
distributing and delivering systems cost effectively and efficiently. distributing and delivering systems cost effectively and efficiently.
Source :Insurance Chronicle, ICFAI, August 2005Source :Insurance Chronicle, ICFAI, August 2005
THE HEALTH INSURANCE INDUSTRY IN INDIA
Dept Of Management Science 45 MESCE Kuttippuram
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Walter De Oude & Rajagopalan Krishnamurthy in their article “The Health
Insurance Industry in India” (2006) examines the key issues facing the health
insurance sector. Currently less than 15% of the Indian population has some kind of
health insurance cover which includes Central Government Health Scheme, Railway
Health Scheme, and Employee’s State Insurance Scheme. On an average, every
family spends up to 10% of annual household consumption towards healthcare needs.
Calculation of amount of medical insurance is difficult because it depends on the area
of cover such as hospital, chronic illness, critical illness or travel. The new private
non-life insurance e companies have introduced a few innovations, such as direct tie-
ups with healthcare providers, providing ‘cashless’ settlement as an option, the
provision of pre- and post-hospitalization benefits and coverage for pre existing
illness.
Health insurance remains vastly underdeveloped in India. The state owned
companies had little focus upon the developing line of business on a systematic and
profitable basis. The health portfolio that had a loss ratio of about 78% in 2003
deteriorated to 98% in the following year.
Source: Insurance Chronicle The ICFAI University Press -Feb 2006
LOW PENETRATION OF HEALTH INSURANCE SCHEMESLOW PENETRATION OF HEALTH INSURANCE SCHEMES
Dept Of Management Science 46 MESCE Kuttippuram
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The major reasons for low penetration of health insurance schemes in India, as statedThe major reasons for low penetration of health insurance schemes in India, as stated
by Sarabanti Chakravarti in his article “Reasons behind low penetration of Healthby Sarabanti Chakravarti in his article “Reasons behind low penetration of Health
Insurance Schemes in India” are the followingInsurance Schemes in India” are the following
1.hazards in claim settlement1.hazards in claim settlement
2.Lack of interest among the population of good health due to low propensity of2.Lack of interest among the population of good health due to low propensity of
ailmentailment
3.Information Lag3.Information Lag
4.Lack of Out Patient Coverage4.Lack of Out Patient Coverage
Table No:4
MAJOR REASONS BEHIND LOW PENETRATION OF HEALTHMAJOR REASONS BEHIND LOW PENETRATION OF HEALTH
INSURANCE SCHEMESINSURANCE SCHEMES
Reasons Reasons % of population considers this % of population considers this clause as a hindrance of their clause as a hindrance of their selectionselection
1.Hazard in claim settlement1.Hazard in claim settlement 7070
2.Lack of interest among the population of2.Lack of interest among the population of
good health due to low propensity of ailmentgood health due to low propensity of ailment
2626
3.Information Lag3.Information Lag 6060
4.Lack of Out Patient Coverage4.Lack of Out Patient Coverage 8080
Source :Insurance Chronicle, ICFAI, August 2005Source :Insurance Chronicle, ICFAI, August 2005
LIFE INSURANCE PREMIUM AS PERCENTAGES OF THE GROSS
DOMESTIC SAVING (GDS) AND THAT OF GROSS DOMESTIC PRODUCT(GDP)
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Rank Country % of GDS % of GDP
1. United Kingdom 52.50 7.31
2. South Africa 51.55 10.32
3. Japan 32.46 10.10
4. France 26.20 4.91
5. USA 25.20 3.63
6. South Korea 23.66 9.10
7. Finland 23.10 4.98
8. Switzerland 21.92 5.99
9. Netherlands 19.04 4.51
10. Israel 18.84 4.41
11. Sweden 17.88 3.51
12. Australia 17.78 3.48
13. Canada 17.05 3.04
14. Zimbabwe 15.88 6.27
15. Ireland 14.96 4.59
16. Greece 13.87 1.12
17. New Zealand 12.75 3.04
18. Taiwan 12.29 3.64
19. Denmark 12.00 2.71
20. Spain 11.68 2.23
21. Germany 11.40 2.80
22. Norway 9.57 2.33
23. Belgium 9.13 2.38
24. Portugal 8.76 1.65
25. Austria 6.96 2.10
26. Chile 6.96 1.95
27. India 5.95 1.29
28. Italy 5.60 1.13
29. Malaysia 5.35 2.30
30. Singapore 4.72 2.73
Source: Roy (1999). Figures for 1994.
Walter de Oude and Rajagopalan Krishnamurthy (health insurance, Feb 2006)Walter de Oude and Rajagopalan Krishnamurthy (health insurance, Feb 2006) in their article “The health insurance industry in India & its growing potential”in their article “The health insurance industry in India & its growing potential”
Dept Of Management Science 48 MESCE Kuttippuram
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They emphasis that ensuring public health is the principal responsibility lay down byThey emphasis that ensuring public health is the principal responsibility lay down by
the Indian constitution. The central government provides about 15% of the fundingthe Indian constitution. The central government provides about 15% of the funding
needs mostly for national health programs. The family planning and healthcareneeds mostly for national health programs. The family planning and healthcare
initiatives of the government have so far effective in reducing birthrates andinitiatives of the government have so far effective in reducing birthrates and
improving mortality rates. According to the WHO report published in 2002 Indiaimproving mortality rates. According to the WHO report published in 2002 India
ranked 13ranked 13thth from the bottom in terms of public spending on health. from the bottom in terms of public spending on health.
Although India’s public spending is low, overall health spending improved due toAlthough India’s public spending is low, overall health spending improved due to
higher private spending. Currently less than 15% of the Indian population has somehigher private spending. Currently less than 15% of the Indian population has some
kind of health insurance cover.kind of health insurance cover.
Health insurance remains vastly underdeveloped in India. The state owned companiesHealth insurance remains vastly underdeveloped in India. The state owned companies
had little focus upon the developing line of business on a systematic and profitablehad little focus upon the developing line of business on a systematic and profitable
basis. The health portfolio that had a loss ratio of about 78% in 2003 deteriorated tobasis. The health portfolio that had a loss ratio of about 78% in 2003 deteriorated to
98% in the following year.98% in the following year.
Anyway the Third Party Agreement (TPA) has however given rights to some tensionAnyway the Third Party Agreement (TPA) has however given rights to some tension
between the healthcare providers and the health insurance companies.between the healthcare providers and the health insurance companies.
((Source: Insurance Chronicle The ICFAI University Press -Feb 2006)Source: Insurance Chronicle The ICFAI University Press -Feb 2006)
Jack Burke (Insurance marketing, July 2004) in his article “CROSS SELLING”Jack Burke (Insurance marketing, July 2004) in his article “CROSS SELLING”
HeHe emphasis that people depend on insurance agents or brokers for the selection ofemphasis that people depend on insurance agents or brokers for the selection of
and buying of policies related to life, health, automobiles etc. but it has been foundand buying of policies related to life, health, automobiles etc. but it has been found
that most agents or brokers specialize in selling policies related only to particularthat most agents or brokers specialize in selling policies related only to particular
field. The statistics showed that the average American had 7.2 insurance policies i.e.,field. The statistics showed that the average American had 7.2 insurance policies i.e.,
selling more than one policy to their client. This can be specified as cross selling orselling more than one policy to their client. This can be specified as cross selling or
multiline marketing. More policies per client mean lower acquisition cost, highermultiline marketing. More policies per client mean lower acquisition cost, higher
client retention and greater profit.client retention and greater profit.
(Source: Insurance chronicle The ICFAI University Press, July-2005)(Source: Insurance chronicle The ICFAI University Press, July-2005)
Ethics, integrity, and trust in Insurance sectorEthics, integrity, and trust in Insurance sector
Emanuel levyEmanuel levy
Dept Of Management Science 49 MESCE Kuttippuram
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Here it is gratified to except the insurance business from this decent to unethicalHere it is gratified to except the insurance business from this decent to unethical
practices .a look at the record reveals that aside from a few abuses, this industry haspractices .a look at the record reveals that aside from a few abuses, this industry has
behave with commendable integrity .in contrast, look at the scandalous spate of ripbehave with commendable integrity .in contrast, look at the scandalous spate of rip
offs by top executives of corporate giants like Tyco, world com and many othersoffs by top executives of corporate giants like Tyco, world com and many others
during the past four to five years .probably these unethical and criminal activities willduring the past four to five years .probably these unethical and criminal activities will
move off the front pages.move off the front pages.
Of course this is not to say that up to the recent Enron they where not incidents of Of course this is not to say that up to the recent Enron they where not incidents of
high level embezzlement and corporate theft but the current incidents may relate tohigh level embezzlement and corporate theft but the current incidents may relate to
an overall decline moral standards abetted by technology that facilitatedan overall decline moral standards abetted by technology that facilitated
indefinable ,manipulative and geographically unlimited high dollar transactions. indefinable ,manipulative and geographically unlimited high dollar transactions.
The phenomenal ability of the business to protect the trillions of dollars of exposure The phenomenal ability of the business to protect the trillions of dollars of exposure
world wide and to do it profitably can be attributed to all the factors mentioned aboveworld wide and to do it profitably can be attributed to all the factors mentioned above
as well as the tradition of a work and professional ethic that almost appears inherited. as well as the tradition of a work and professional ethic that almost appears inherited.
Source: Insurance chronicle the icfai university Press, march 2007Source: Insurance chronicle the icfai university Press, march 2007
4.2 THEORETICAL BACKGROUND
EVOLUTION OF BRANDS
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Branding began much before the term entered in the jargon of marketing thought. It
can be traced to ancient civilizations. The Greeks and Romans and people before them
employed various ways to promote their wares. These were wines, ointments or
metals. The Greeks also uses town criers to announce the arrival of ships with
particular cargos
Branding becomes an imperative when identity is lost due to homogeneity, branding
in the simplest form a differentiator. If one traces the etymology the word brand has
its origin in the old news word”brandr”.IT means “to burn”.Inthe early times ,the
farmers used to burn a mark or a symbol on the animals to identify ones live stock.
Branding has always an important aspect of marketing .In the sixteenth century
distillers uses branding in their own way. They burned or branded their name on the
wooden containers. It is the purpose that the whiskey of one distiller could be
identified from that of others .Consumer identification practices with the product and
protection continues to be guides of branding practices today.
The brand concept evolved further in the eighteen century. Earlier the producers name
identified the products. It is some kind of corporate umbrella branding. In fact identity
of the producer is used to the brand name. For instance, Smirnoff vodka takes its
name from Smirnoff family which went into vodka business in the year 1818, Ford
automobiles adorned the name that came from the Ford family.
The real boost to branding came in the middle of the twentieth century. Originally the
production was craft based and localized. Since the craft is producer specific, the
output was automatically differentiated. Also craft is time-consuming, it limited
production to low level. Hence markets were small and localized. But dawning to
industrial wave altered the production methodologies. The industrialization brought
assembly lines, large corporations and standardization. The plants began to use
similar technology, churning out similar products. This left one product virtually
indistinguishable from other. Consumer good industries, especially the non durables,
were the first once influenced by this phenomenon.
Dept Of Management Science 51 MESCE Kuttippuram
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Brand Image
According to Sengupta:
“Brand Image” is the totality about the impressions about the brand. This according
to him includes its physical, functional and psychological aspects of the brand.
According to Christian Restall:
“ Brand Image is the measurable aspects of the brand”
According to Oglivy
“personality and brand image are the same”
Aaker has the following say about brand image,
”An association and image both represent perceptions which may or may not reflect
objective reality…….as image of competence based upon the appearance of a doctors
office and the manners of his staff rather than on the objective measure of the health
of former patients”.
Kapferer thinks that brand identity is from the sender’s side while brand image is
from receiver’s side.
Meryl Paule Gardner
He examines the constituents of brand image and calls them “brand thoughts”. For
instance, many may not evaluate the company or even the product while evaluating a
brand. Blind test conducted for soft drinks, instant coffee and perfumes reveals that
the consumers could not really differentiate the brands when their name was
concealed from them. But certain things like bran features and information obviously
affect the brand image. Communication which includes advertising seems to be every
important influence of the brand image besides the product or brand itself.
Joseph Plummer
He indicates that brand image has three components:
Dept Of Management Science 52 MESCE Kuttippuram
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Product attributes
Consumers benefit
Brand personality
That is Plummer treats Brand image as a subset of image .Brand image would
stem from three sources .These are:
Provider driven image
Product driven image
User driven image
PROVIDER-DRIVEN IMAGE
This is the image driven from the company/brand. The brand is what it is because of
the company makes it. For instance, brand name like Tata signals quality in
everything it makes from steel to salt. In fact it is likely a couple of percentage points
about the market share acquired by any Tata brand is owed to the brand name Tata
itself.
Sometimes the CEOs positive image enhances the brands appeal.JRD Tatas image has
a favorable impact von the groups name. The same could be true of brand names.
Amul is synonyms with dairy products.
Sometimes, brand image is influenced by the manufactures name besides the brands
own personality. Research in US shows that Crest (P&G Toothpaste) was seen as
anticavity toothpaste while Levers brands-Close-Up, Aim Mint where all clustered
together and viewed as cosmetic rather than medicinal tooth pastes.
Studies conducted by marketing research agencies shows that brand image is not
significantly affected by the company’s name unless the organization name itself has
been used as the brand name. What it means is that not many care as to who
manufactures Bagpiper Whisky or Kingfisher Beer. The fact is that UB manufactures
Kingfisher is immaterial to the brand image of the beer. The western consumers who
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at least in FMCGs tend to read the relationship between the company’s image and the
brand image.
PRODUCT DRIVEN IMAGE
This image is result of the product performance. This in turn depends on its
ingredients. Santoor toilet soap promises skin care through it contents - sandal wood
and turmeric. Carrier AirCon which recently executed a turnaround saves a specific
market because of its midrange tonnage.
This is directly related to the product category that it’s identified with, i.e. “SPLIT
AIR CONDITIONARS”. 7 O’clock platinum edge derives its durability from the
material of manufacture.
USER – DRIVEN IMAGE
This image is driven by the lifestyle of the user. A particular lifestyle is south to be
projected through a product. This is done through user-imagery. “Naughty Boy” shoe
has more to do with a school boy’s image rather than the product’s characteristics.
Van Heusen shirts are an expression of particular lifestyle, just as DH shirts are of
another. Aramusk tried, though unsuccessfully to communicate the idea of a male
soap to the customers. “Men can be soft” is the idea that Nivea cream innovately
communicates through its positioning “Men who dare to care”. Here, Nivea banks
more on the profile of men who use the product rather than on the product features
themselves.
BRAND IMAGE-ESTABLISHED PRODUCTS AND NEW PRODUCTS
Brand image of most established products is difficult to change. The hypothesis
appeals intuitively. This is because the brand would have acquired a personality step
by step over a period of time. Any time that disturbs the core values of the personality
shall be summarily rejected. This has been powerfully demonstrated by New Coke –
Dept Of Management Science 54 MESCE Kuttippuram
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Old Coke episode. Observe that n India too, some established brands have
successfully changed the brand image while other has not. Witness the positioning
shifts in “Red Label Tea” which was at one time the largest selling tea brand in the
country. The brand is today being seen as less exciting than stable-mate Taaza. The
same problem might haunt Bata which is finding it difficult to compete with younger
brands like Woodland, Mescos, Action etc..
The trick is to contemporaries brand image incrementally. This was done pretty deftly
in the case of Lifebuoy. Its “Tandurusti-Ki-Raksha” platform has not been abandoned
since the 60’s, but the executions, the props, ambience of the advertisement have been
steadily modified to suit the present times. Cintol successfully changed its image from
a deodorant soap to a head-on competitor of Liril. New brands do not have to carry
that baggage of heritage but they also lag a clear image in the mind of the consumer.
Today if a brand has to create an image for itself which has to market itself in a
radically different fashion. This can be observed in the case of Close-up toothpaste.
Some times a brand can run into serious image-related problems because of the
product. Cadbury’s Chocolates received adverse publicity because of their nickel
content which was supposedly harmful. Same type of problem has been suffered by
the Cola giant Coca-Cola recently. For instance Union Carbide earned a bad image
due to Bhopal gas tragedy. But the brand it manufactured namely Eveready was only
marginally affected. These examples show that brand image is for ever in danger and
even established brands can bite the dust in the face of adverse publicity.
BRAND IMAGE AND COUNTRY OF ORIGIN
It has been observed that hedonistic products (perfume, wine) fare better when they
are manufactured by French companies. Similarly, Japanese products are preferred in
categories like cars, digital cameras and Plasma TV sets. German products are
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preferred in certain niche industrial products (Karor, the German company produces
90% of cigarette making machines in the world)
Several studies showed that brand image has a correlation with the country of origin.
Patriotic advertisements can for instances affect the image of a brand and may bring
in some loyal consumers. However it this is true one cannot see how French
perfumes, Japanese cars and Korean ships sell all over the world. MinHan, of course
points out that the influence of patriotic advertising is tentative. This means that the
brand will have to stand on its own in the long run.
Not many companies in India try to sell brand on the strength of their product being
Indian, especially in India. Dabur, Vico Vajrandanti, Kayam Churan are few such
brands that hint at ayurvedic heritage rather than on the fact that the product is of
Indian origin. However, some products have been sold abroad especially in the
Middle East using the maid in India tag. In the US, however, patriotic advertising
become a necessity, thanks to tough competition provided by the Japanese. Other
researches found that the country of origin has nominal effect on the consumers
‘Perception of the brand’. American cars are rated high on mileage and German cars
on driving comfort but even this cannot be stereo typed. The change in brand image
for the product manufactured in other countries in the perception of Japanese
consumers has interesting lessons to offer. It points out that in the perception of
Japanese consumers, the mage of US products have fallen between 1967 and 1975.
Also they no longer see products of their own country as value-for-money products
but perceive them to be as good as European or American product. Overall, research
seems to point out that the country of origin has an impact on the brand image.
BRAND IMAGE AND CELEBRITY
Research on image built through endorsement of celebrities show that there are three
aspects that affect the consumer’s attitude of a brand. They are:
Attractiveness
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Trustworthiness
Expertise
Examples of how celebrities in India have been used in advertising to enhance the
brand image are listed below. A film actress like Kareena Kapoor is a credible source
of information for soap. Khaitan, the owner of the brand himself assures 100%
reliability of the brand in the advertisement thus making the information dependable.
In US, perceived expertise mattered more than the other two sources of influence,
namely, attractiveness and trustworthiness in shaping a consumers attitude for
product. Conclusive evidence on this is unavailable on India. However, it is
improbable that the above holes true in India. For instance, the attractive ness of the
model was a very important reason for the phenomenon success of LUX soap in its
introduction stage.
An easy way to develop a brand image is to highlight something unique in the brand.
Captain Cook insists on “FREE-FLOWING” quality of its salt and promotes it with a
comparative advertisement to hit out against Tata Salt. Marlboro cigarette did a turn
around and made itself a “MACHO-MAN”cigerette owing to its Wild West imagery.
BRAND IMAGE AND IMAGERY
Image is the product seen from the consumer’s perspective. It’s what the consumers
think about the product. Imagery is the consumer seen from the product’s perspective.
Hirschimin argues that its possible to create images of brands and nurture them
through consistent communication.
Typically these imageries fall in three categories namely
Sacred
Secular
Mediating
Dept Of Management Science 57 MESCE Kuttippuram
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A sacred image is where the products gets elevated to the meta physical blue sky’s
because of the setting and ritual of consumption.(E.g. Chyavanaprash and Parachute
Hair oil-everybody from grand parents to grand children uses them).
A secular imagery for a product is where the consumer would like to break the routine
to do something new. (E.g.; Pepsi’s advertisement “Nothing official” about it).
A mediating image is something that skillfully weaves the use of sacred and the
secular in its image. (E.g.: Santoor Sandalwood talc – a strikingly modern women
Santoor talc, but is shown as seeking the blessings of the elders in the traditional
fashion)
BRAND IMAGE AND USER STATUS
An interesting observation is that brand images are formed irrespective of whether the
brand is being considered of purchase or not. Whether one is likely to purchase a
Maruthi or not, one is likely to have a brand image of the product. This inurn has been
shown to be linked to the execution of the advertisement besides other modes of
information available to the customer.
In some, it appears that while there is a lot of variation in the definition available for
brand personality, most experts seem to be agreed on the definition of brand image. A
definition on which there is broad agreement is given below.
“Brand Image is the impression left in the mind of the prospect by the brand”
BRAND IMAGE AND BRAND PERSONALITY
The different dimensions of a brand should come together to give it a unique
personality. The free flowing nature of its salt, its distinctive logo and
communication, its premium price are all part of Captain Cook salt’s personality.
Aggressive selling in the replacement market for tyres, unique communication and
promotion, the anti-skid product are all part of Apollo Black Cat tyres. (Unfortunately
the branch failed because the product did not deliver.)
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When the different dimensions of personality do not match, the product does not take
off. For instance, Savage blade had been positioned as a premium product and it was
functionally effective as well. But it was seen as too expensive by the market. The
same is true for Ariel. The image of Red Label Tea has been that of a conservative
hundred year old brand which is why the company went in for a repositioning.
A representational product has more to do with the aspirations, roles, role models, and
life-style of the user. Here, Coke gets transformed from sweetened fizz water to the
great American dream.
“Brand personality is the sum total of all the significant tangible and intangible assets
that a brand possesses.”
“Brand image is how the brand is perceived by the consumers. In the words, brand
personality is the cause while brand image is the effect.”
TABLE SHOWING THE AGE OF RESPONDENTS
Table No:5
Particulars No: of Respondents Percentage
Less than 20 0 0
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20-30 10 10
31-40 60 60
41-50 20 20
50 and above 10 10
Total 100 100
Source : Primary DataChart No:1
TABLE SHOWING THE AGE OF RESPONDENTS
0% 10%
60%
20%
10%
Less than 20 20-30 31-40 41-50 50 and above
Inference
The table above shows that of the hundred respondents none of them are below the
age of 20 and 10% of them are between the age 20-30,60% of them are between the
age of 31-40,20% of them are between 41-50and 10% of them are aged above 50.
TABLE SHOWING THE EDUCATIONAL DETAILS OF RESPONDENTS
Table No:6
Educational Details No: of Respondents Percentage
PG and above 25 25
Graduate 45 45
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Diploma 20 20
12th pass 10 10
10th pass 0 0
Uneducated 0 0
Total 100 100
Source : Primary DataChart No:2
TABLE SHOWING THE EDUCATIONAL DETAILS OF RESPONDENTS
25%
45%
20%
10%
0%
0%
PG and above Graduate Diploma
12th pass 10th pass Uneducated
Inference
The table shows that 45 of the respondents are graduates,25% are PG and above , 20%
of them are diploma holders, and the remaining 10% of them are 12th Pass.
TABLE SHOWING THE JOB STATUS OF THE RESPONDENTS
Table No:7
Educational Details No: of Respondents Percentage
Professional 15 15
Business 40 40
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Self Employed 30 30
Others 15 15
Total 100 100
Source : Primary Data
Chart No:3
TABLE SHOWING THE JOB STATUS OF THE RESPONDENTS
15%
40%30%
15%
Professional Business Self Employed Others
Inference
The table shows that 40% of the respondents are engaged in business,30% of them are
self employed,15% of them are professionals, and the remaining 15%are engaged in
various other jobs
IDENTIFICATION AS TO WHETHER RESPONDENTS ARE INSURED OR NOT
Analysis of as to whether respondents are insured or not will enable insurance
companies to identify their opportunities for growth and development.
Table No:8
Particulars No: of Respondents Percentage
Dept Of Management Science 62 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Yes 35 35
No 65 65
Total 100 100
Source : Primary Data
Chart No:4
IDENTIFICATION AS TO WHETHER RESPONDENTS ARE INSURED OR NOT
35%
65%
Yes No
Inference
The table shows that only 35% of the respondents are insured while remaining
65%are not insured. Hence it is clear that majority of the population are yet to be
insured and this provides a better market opportunity for all insurance companies to
do their best. More over it is also evident that the insurance sector is one of the sectors
that has immense opportunity for growth .
COMPANY TO WHICH RESPONDENTS ARE INSURED WITH
An analysis of the company to which the respondents are insured will help to identify
the major player in the market and based on this information the company can mould
its performance to become the market leader
Table No: 9
Company No: of Respondents PercentageLIC 16 46
Dept Of Management Science 63 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
BAJAJ ALLIANZ 11 31
ICICI PRU LIFE 4 11
MET LIFE 2 6
HDFC STD LIFE 2 6
Total 35 100
Source : Primary DataChart No: 5
COMPANY TO WHICH RESPONDENTS ARE INSURED WITH
46%
31%
11%6% 6%
LIC BAJAJ ALLIANZ ICICI PRU LIFE
MET LIFE HDFC STD LIFE
Inference
From the table it is evident that majority of the respondents are insured with LIC
(46%) followed by Bajaj Allianz (31%) ICICI PRUD (11%) MET LIFE (6%) and
HDFC STD LIFE with( 6%).LIC is still the number one Insurance company in India,
followed by Bajaj Allianz which is growing at a fast pace.
RESPONDENTS AWARENESS OF VARIOUS INSURANCE COMPANIES
OPERATING IN INDIA
In order to analyze the image of an insurance company the respondents must have
knowledge about various players in the market. Thus by analyzing the respondents
awareness of various insurance companies in India the researcher will be able to know
the best player in the market.
Table No: 10
Dept Of Management Science 64 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Particulars No: of Respondents Percentage
Yes 100 100
No 0 0
Total 100 100
Source : Primary Data
Chart No:6
RESPONDENTS AWARENESS OF VARIOUS INSURANCE COMPANIES OPERATING IN INDIA
100%
0%
Yes No
Inference:
The table shows that cent percent of the respondents are well aware of the various
insurance companies operating in India
RESPONDENTS ABILITY TO RECALL VARIOUS LIFE INSURANCE
COMPNIES ACCORDING TO THEIR AWARENESS
Analysis of the respondents ability to recall various life insurance companies
according to their awareness helps to know how often they were familiar with these
companies.. It gives an indication of the companies which they remember more often.
Dept Of Management Science 65 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
This helps to identify the companies image and market share. Those companies which
they remember most are likely to be the top players. This enables the company to
locate the market leader. The information so obtained will also enable the company to
improve their market operations and thereby become the best player in the field.
Information regarding the same is given below
Table No: 11 respondent’s ability to recall various insurance companies
Dept Of Management Science 66 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Chart No: 7
Dept Of Management Science 67 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Inference:
From the above observation it is evident, that the following is the pattern of the
respondents awareness of various insurance companies operating in India
First Preference - LIC
Second Preference - BAJAJ ALLIANZ
Third Preference - HDFC
Fourth Preference - ICICI
Fifth Preference - TATA AIG
Sixth Preference - BIRLA
Seventh Preference - ING VYSYA
Eighth Preference - AMP SANMAR
Ninth Preference - MET LIFE
Tenth Preference - KOTAK
Eleventh Preference - SBI
RESPONDENTS MODE OF AWARENESS ABOUT VARIOUS INSURANCE
COMPANIES OPERATING IN INDIA
Dept Of Management Science 68 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Analysis of the source of respondents awareness of various insurance companies
operating in India helps the company to measure the impact of advertisement . The
feedback of respondents will help the company to identify the most powerful source
for their publicity.
Table No: 12
Factors No: of Respondents Percentage
Advertisement 65 65
Advisors / agents 30 30
Words of mouth 3 3
Others 2 2
Total 100 100
Source : Primary DataChart No: 8
RESPONDENTS MODE OF AWARENESS ABOUT VARIOUS INSURANCE COMPANIES OPERATING IN INDIA
65%
30%
3% 2%
Advertisement Advisors / agents Words of mouth Others
Inference
The table shows that majority of the respondents became aware of the company
through advertisement. while 30% became of them aware of it through advisors/
agents the remaining were aware of it through words of mouth and other sources.
Here it is evident that advertisement does play an important role in the promotional
activities of the firm.
IDENTIFICATION OF THE PARAMETERS FOR RATING AN INSURANCE
COMPANY
Dept Of Management Science 69 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Usually people use certain tools for rating a firm. It may be in the form of goodwill,
brand image, services provided etc. The strength of a company depend on its
acceptability in the society. In case of insurance companies the society may expect the
companies to follow certain norms and qualities .
Table No: 13Factors 1 2 3 4 5 Total
Resp
onse
Mark Resp
onse
Mark Res
Ponse
Mark Res
ponse
Mark Res
ponse
Mark
Reliability54 5 46 4 454
Ethics /Transparency
46 5 40 4 14 3 432
Brand Image
14 4 60 3 26 2 288
Services
26 3 60 2 14 1 212
Flexibility in plan
14 2 86 1 114
Total
100 10 100 12 100 9 100 6 100 2 1500
Chart No: 9
Dept Of Management Science 70 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Inference
From the above observation it is evident, that the parameters for rating an insurance
company can be ranked in the following order
First Preference - Reliability
Second Preference - Ethics/ Transparency
Third Preference - Brand Image
Fourth Preference - Services
Fifth Preference - Flexibility in plan
OPINION REGARDING THE RELEVANCE OF ETHICS AND
TRANSPARENCY IN INSURANCE BUSINESS
Dept Of Management Science 71 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Ethics and transparency in dealings has been one of the major success factors of
insurance companies like LIC etc. Customers would prefer companies that follow
certain norms and standards and at the same time be transparent in its dealings.
Table No: 14
Opinion No: of Respondents Percentage
Very important 77 77
Important 23 23
Not important NIL NIL
Not at all important NIL NIL
Total 100 100
Source : Primary DataChart No: 10
OPINION REGARDING THE RELEVANCE OF ETHICS AND TRANSPARENCY IN INSURANCE BUSINESS
77%
23%
0%
0%
Very important Important Not important Not at all important
Inference
The table shows that 77% of the respondents consider ethics and transparency to be
very much important for an insurance company. While 23% of them suggests that
ethics and transparency are important none is of the opinion that it is neither not
important nor not all important ,thereby showing that ethics and transparency is very
much relevant for insurance business.
RESPONDENTS RATING OF THE BEST INSURANCE COMPANY WITH
HIGH ETHICAL STANDARD
Dept Of Management Science 72 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
An analysis of the respondents rating of the best insurance company with high ethical
standards will help the company to understand the difference between the leader and
the home company. They can identify as to what make the company different from
the other.
Table No: 15
Opinion No: of Respondents Percentage
LIC 48 48
BAJAJ ALLIANZ 18 18
ICICI 12 12
TATA AIG LIFE 7 7
HDFC 6 6
AMP SANMAR 3 3
ING VYSYA 3 3
BIRLA SUN LIFE 3 3
Total 100 100
Source : Primary Data
Chart No: 11
Dept Of Management Science 73 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
RESPONDENTS RATING OF THE BEST INSURANCE COMPANY WITH HIGH ETHICAL
STANDARD
48%
18%
12%
7%
6% 3% 3% 3%
LIC BAJAJ ALLIANZ ICICI
TATA AIG LIFE HDFC AMP SANMAR
ING VYSYA BIRLA SUN LIFE
Inference
From the above observation it is found that LIC is considered as the number one
player with high ethical standard. 48% of the respondents agreed to this opinion. the
second rank goes to Bajaj Allianz with 18% of the respondents support. The third
place goes to ICICI with 12% of the respondents opinion. The fourth place rests with
TATA AIG LIFE having 7% of the respondents in favor of it. The fifth place rests
with HDFC, with 6% of the respondents opinion. The sixth, seventh and eighth
position was shared by AMP SANMAR, ING VYSYA, and BIRLA SUN LIFE,
equally with 3 % of the respondents favoring each.
RESPONDENTS REASON FOR CHOOSING THE BEST INSURANCE
COMPANY
Dept Of Management Science 74 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
An analysis of the respondents reason for choosing the best insurance company helps
to understand the core competence of each company.
Table No: 16
Opinion No: of Respondents PercentageMore returns 42 42
Less risky 36 36
Wide acceptance 18 18
Others 4 4
Total 100 100
Chart No: 12
RESPONDENTS REASON FOR CHOOSING THE BEST INSURANCE COMPANY
42%
36%
18%4%
More returns Less risky Wide acceptance Others
Inference
The table shows that 42 % of the respondents chose the best insurance company on
the basis of the returns provided by the company . 36% of them considered the less
risk factor in making their choice as to the best insurance company. 18% of them rate
a company on the basis of its acceptance in the market. According to them the
company that is widely accepted is the best one. The remaining 4% of the respondents
rate a company on the basis of other factors like reliability, credibility, etc
IDENTIFICATION OF THE MOST IMPORTANT FACTOR THAT
REPRESENT THE BRAND IMAGE OF AN INSURANCE COMPANY
Dept Of Management Science 75 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
An analysis of the most important factor that represent the brand image of an
insurance company helps the company to concentrate more on the key factor so
identified and thereby improve its Brand Image.
Table No: 17
Factors No: of Respondents Percentage
Ethics 42 42
Advertisement 30 30
Market share 20 20
Work force 8 8
Total 100 100
Source : Primary DataChart No: 13
IDENTIFICATION OF THE MOST IMPORTANT FACTOR THAT REPRESENT THE BRAND IMAGE OF
AN INSURANCE COMPANY
42%
30%
20%8%
Ethics Advertisement Market share Work force
Inference
The table shows that 42% of the respondents consider ethics as the most important
factor representing the brand image. 30% of them are of the view that brand image is
developed through advertisements. 20% of the respondents believe that brand image
can be developed by improving the market share and the remaining 8% believe that
having an efficient workforce can improve the brand image.
IDENTIFICATION OF THE MOST DISSATISFYING FACTOR TO BE
CORRECTED BY AN INSURANCE COMPANY
Dept Of Management Science 76 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
This analysis will help the company to locate the factors with which the respondents
are dissatisfied and there by rectify it. It will also enable the company to analyze its
image with its competitors. In order to become the best player in the market the
company has to create a customer friendly approach. Such an approach can be created
only by eliminating those factors that create dissatisfaction to the customers.
Table No: 18
Factors 1 2 3 4 5 Total
Resp
onse
Mark Resp
onse
Mark Res
ponse
Mark Res
ponse
Mark Res
ponse
Mark
Misleading
Advertisements
84 5 16 4 484
Delay in claim
disbursement
10 5 60 4 30 3 380
Hidden
charges
6 5 20 4 40 3 30 2 4 1 294
Long
verification
procedure
4 4 30 3 40 2 26 1 212
Unawareness
of plan
30 2 70 1 130
Total 100 15 100 16 9 100 6 100 3 1500
Source : Primary Data
Chart No: 14
Dept Of Management Science 77 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
IDENTIFICATION OF THE MOST DISSATISFYING FACTOR TO BE CORRECTED BY AN INSURANCE
COMPANY
484380
294212
1300
100
200300400
500600
Mis
lead
ing
Ad
vert
isem
ents
Del
ay in
cla
imd
isb
urs
emen
t
Hid
den
ch
arge
s
Lon
gve
rifi
cati
onp
roce
du
re
Un
awar
enes
s of
pla
n
Inference
The most dissatisfying factor identified by the respondents is the misleading ads given
by various companies. The next one is associated with delay in claim disbursements.
The respondents are of the opinion that many companies are taking much time in
disbursement of claims. The next dissatisfying factor is the hidden charges . Insurance
companies levy some hidden charges on the customers and the respondents are of the
opinion that such charges should be avoided. The fourth factor is the long verification
procedure and the fifth dissatisfying factor is associated with the unawareness of
plans. It is to be noted that all insurance companies should find out and eliminate
those factors that create difficulties to the customers.
Dept Of Management Science 78 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
DETERMINATION OF MARKETING COMMUNICATION OBJECTIVES
OF BAJAJ ALLIANZ LIFE INSURANCE COMPANY
HIERARCHY –OF- EFFECTS MODEL
The hierarchy of effects model is a response hierarchy model used to determine the
marketing communication objectives. The marketer may be seeking a cognitive ,
affective, or behavioral response that is the marketer might want to put something into
the customers mind, change an attitude or get the consumer to act. In such situations
the response hierarchy model can be used.
The hierarchy of effects model is illustrated below
1. Awareness
If most of the target audience is unaware of the object, the communicators task is to
build awareness.
E.g. Simple messages repeating the product name
2. Knowledge
The target audience may have product awareness but may not have much knowledge
of it. Here the communicators task is to create knowledge of the product in the
consumer
3. Liking
The target audience may have knowledge of the product but they may not have a
liking for it. Here the communicator has to identify why the target audience feels so.
If the unfavourable view is based on real problems, a communication campaign alone
cannot do the job. Here the problem has to be corrected and then communicated.
Good Public Relations calls for
“ good deeds followed by good words”
4. Preference
Dept Of Management Science 79 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
The target audience may like the product but they may not prefer it to others. Here
the task of the communicator is to build consumer preference promoting quality,
value, performance and other features
5. Conviction
The target audience may prefer a particular product but may not have developed the
conviction about buying it. Here the communicators job is to build conviction among
the target audience to make the purchase.
Table No: 19
Factors No: of Respondents
Yes No
Awareness 100
Knowledge 20 80
Liking 100 Nil
Preference 40 60
Conviction 20 80
Source : Primary DataChart No: 15
DETERMINATION OF MARKETING COMMUNICATION OBJECTIVES OF BAJAJ ALLIANZ
LIFE INSURANCE COMPANY
100
20
100
4020
8060
80
0
20
40
60
80
100
120
Awareness Knowledge Liking Preference Conviction
Yes No
Inference
Dept Of Management Science 80 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
The table shows that cent percent of the respondents are aware of the company but
only 20% of them have knowledge of the company and its products . 100 % of the
respondents have a liking for Bajaj Allianz and 40% of them are willing to prefer it to
other companies. But only 20% of the respondents have developed a conviction to
insure with Bajaj Allianz.
Hence the marketing communication objective should focus on creating knowledge of
the company’s products on the public. It is because of the lack of knowledge of the
company’s products that, even though 100% of the respondents have a liking for the
company and 40% of them prefer it to other companies, only 20% have developed a
conviction to insure with Bajaj Allianz.
IDENTIFICATION OF THE MOST IMPORTANT FACTOR THAT BAJAJ ALLIANZ SHOULD CONCENTRATE MORE TO WITHSTAND
COMPETITION
Dept Of Management Science 81 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
In the present scenario insurance companies are facing heavy competition from its
competitors and hence each company has to find out some remedies to with stand
competition. An analysis of the core factors will help the company to identify the
most important factor that it has to concentrate more so as to withstand competition.
Table No: 20
Factors RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 TotalResp Mark Resp Mark Resp Mark Resp Mark Resp Mark
Increase Ads54 5 20 4 26 3 428
Promotional activities of Bajaj Allianz
24 5 60 4 12 3 4 2 404
Technology Up gradation
12 5 10 4 40 3 30 2 8 1 288
Increaseefficiency of workforce
10 5 10 4 20 3 42 2 18 1 252
Others2 3 24 2 74 1 128
Total
100 20 100 16 100 15 100 8 100 3 1500
Source : Primary Data
Chart No: 16
Dept Of Management Science 82 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Inference
From the above observation it is evident, that the important factors that Bajaj Allianz
should concentrate more to withstand competition can be ranked in the following
order of preference
First Preference - Increase Ads
Second Preference - Increase promotional activities of Bajaj Allianz
Third Preference - Technology Up gradation
Fourth Preference - Increase efficiency of workforce
Fifth Preference - Other activities like customer guidance etc
In order to be the market leader the company should concentrate more on the above
factors giving special emphasis to each of the factors in the given order of preference.
RESPONDENTS RATING OF THE SERVICES PROVIDED BY BAJAJ ALLIANZ LIFE INSURANCE COMPANY
Dept Of Management Science 83 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Table No: 21
Factors RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6 TotalRes M
ark
Res Mark
Res Mark
Res Mark
Res Mark
Res Mark
Customer Meet 34 6 36 5 30 4 504
Reminder 30 6 40 5 20 4 10 3 490
Advisor 16 6 20 5 40 4 20 3 4 2 424
Local Office 12 6 4 5 10 4 40 3 20 2 141
306
Direct
Collection
8 6 30 3 42 2 20 1 242
Promptness of
all service
34 2 66 1 134
Total 100 30 100 20 100 16 100 12 100 8 100 3 2100 Source : Primary Data
Chart No: 17
Dept Of Management Science 84 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Inference
From the above analysis it is evident that the services provided by Bajaj Allianz can
be ranked in the following order based on the priorities assigned to it by respondents
First Priority - Customer Meet of the company
Second Priority - Reminder services of the company
Third Priority - Advisors of the company
Fourth Priority - Local offices of the company
Fifth Priority - Direct collection
Sixth Priority - Promptness of all service
RESPONDENTS OPINION REGARDING THE PUBLICATIONS BROUGHT
OUT BY THE COMPANY
Dept Of Management Science 85 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
An analysis of the respondents opinion regarding the publications brought out by the
company will help the company to determine as to whether the publications brought
out by the company are satisfactory or not. It also enables the company to determine
whether further publications are required or not.
Table No: 22
Opinion No: of Respondents Percentage
Satisfied 18 18
Not satisfied 82 82
Total 100 100
Source : Primary DataChart No: 18
RESPONDENTS OPINION REGARDING THE PUBLICATIONS BROUGHT OUT BY THE COMPANY
18%
82%
Satisfied Not satisfied
Inference
The table shows that 18 % of the respondents are satisfied with the publications
brought out by the company while 82% of the respondents are of the opinion that
further publications are required
6.1 FINDINGS OF THE STUDY
All the respondents are aware of Bajaj Allianz Life Insurance Company.
Dept Of Management Science 86 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Majority of the respondents are yet to insure their lives against various
risks.
Majority of the respondents are insured with LIC and they are of the
opinion that LIC is the best player with high market share.
Cent percent of the respondents are aware of the various insurance
companies operating in India.
LIC is the company that majority of the respondents are able to recall based
on their awareness, followed by Bajaj Allianz and ICICI respectively.
The study shows that advertisement does play an important role in
Marketing Communication for it is the major source through which
majority of the respondents have come to know of various insurance
companies operating in India, followed by advisors or agents.
The study reveals that reliability, ethics/transparency, brand image, services
and flexibility in plan, respectively are the most important parameters for
rating an insurance company.
Ethics and transparency is very important in the business of insurance
Majority of the respondents have rated LIC as the best Insurance Company
with high ethical standards .
It is based on the parameters like more returns, less risky, wide acceptance
and others respectively that, respondents have rated LIC as the best
insurance company.
The study shows that misleading ads, delay in claim disbursements, hidden
charges, long verification procedure and unawareness of plan are the most
dissatisfying factor that should be rectified by insurance companies.
The Hierarchy _of-Effects Model reveals that all the respondents are aware
of Bajaj Allianz. But, only a few have knowledge of the company’s
products.
Dept Of Management Science 87 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
The study shows that increasing ads and promotional activities are some of
the ways by which Bajaj Allianz can withstand competition in the market.
The study shows that ethics, advertisement, market share and work force
are the important factors that represent the Brand Image of a company.
The study shows that customer meet, reminders, advisors, local offices,
direct selling, and promptness of all services respectively, are some of the
services of Bajaj Allianz which the respondents value most.
Majority of the respondents are of the opinion that further publications are
required from the part of Bajaj Allianz .
6.2 SUGGESTIONS
Dept Of Management Science 88 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Advertisement is one of the most effective means for communicating with
customers. If Bajaj Allianz concentrates more on ads it will be able to attract
more customers and this will also help the company to withstand competition
in the industry.
The company will be able to improve its brand awareness and brand image
through effective marketing communication. (advertisements)
The marketing communication objective of the company if possible should be
based on creating knowledge of the company’s products on the public. It is
because of the lack of knowledge of the company and its products that, even
though all the respondents have a liking for the company and some of them
prefer it to other companies, only few have developed a conviction to insure
with Bajaj Allianz.
Concentrating more on ethics, integrity, advertisement and efficiency of
workforce would help Bajaj Allianz to be the market leader.
More publications from the part of Baja Allianz will attract more customers
and also efficient Financial Consultants who are willing to work for the
company.
The company should attempt to avoid misleading advertisements, hidden
charges, delay in claim disbursement and long verification procedure.
Services such as Customer Meet, etc should be encouraged.
The company has to provide more favorable terms and conditions for
achieving customer satisfaction.
The firm has to make better contact with prospective customers.
The company has to be ethical and transparent in all its dealings.
6.3 CONCLUSION
Dept Of Management Science 89 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Bajaj Allianz Life Insurance Company is the second largest insurance company in
India. The study reveals that the company has achieved this position because of its
efficient market operation and, the ethics and transparency policies adopted by it. The
last years performance of the company shows a drastic upward shift in market share.
In order to improve its growth and to expand its market share in future the company
should concentrate more on advertisement, technology up gradation, and also improve
the efficiency of its workforce. Besides that the company should concentrate strictly
on business ethics and provide maximum services to its customers. From the survey it
was found out that a company can improve its brand image only if it has good ethical
standard, integrity, market share, advertisement, and efficient work force. So it is one
of the areas where the firm should be more alert so as to improve as well as maintain
its Brand Image.
Customers perception of the company and the satisfaction they derive from the
services of the company is an important yardstick by which a company can identify its
position and a study of it will help the company to improve its market position and
also plan for market expansion.
Marketing Communication should always be based on certain objectives. The
Marketing Communication of Bajaj Allianz has to focus on creating knowledge of the
company and its products. Marketing Communication based on such an objective will
help the company to attract more customers.
The study also reveals that misleading advertisements, delay in claim disbursements,
hidden charges, and long verification procedure are some of the aspects with which
people are dissatisfied, with regard to insurance companies. If these aspects are
corrected by insurance companies more and more people will come forward to insure
their life against various risks and thereby leading to the overall growth of the
insurance sector.
BIBLIOGRAPHY
Dept Of Management Science 90 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
1. PHILIP KOTLER , Marketing Management, Prentice Hall , 2001
2. PHILIP KOTLER , Marketing Management, Pearson Education,
New Delhi, 11th Edition 2002
3.CR KOTHARI , Research Methodology Methods And Techniques, New
Age International Publishers, New Delhi
4.GC BERI, Marketing Research, Tata Mc Graw Hill, New Delhi, 3rd
Edition-2003
5. MATHEW, Insurance: Principles and Practice
6.WEBSITES
www.irda.org
www.indiainfoline.com
www.insuremagic.com
www.bajajallianz.com
QUESTIONNAIRE
Respected Sir,
Dept Of Management Science 91 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
I, Anish Dileep fourth semester MBA student of MES College of Engineering
would like to do a project on “the Brand Image of Bajaj Allianz Life Insurance
Company”
Given below are some of the questions based on the topic. Please tick your
answers in the appropriate boxes. The information provided by you will be
strictly confidential and will be used only for my study purposes.
I will be grateful to you if you spare a few minutes of your precious time to fill up
this questionnaire.
1. Name of Respondent :
2. Age : Less than 20 [ ] 0-30 [ ] 31-40 [ ] 41-50 [ ] Above 50
3. Gender : Male [ ] Female [ ]
4. Marital Status : Married [ ] Single [ ]
5. Educational Details : PG & Above [ ] Graduate [ ] Diploma [ ]
12th Pass [ ] 10th Pass [ ] Uneducated [ ]
6. Job Professional [ ] Business [ ] Self Employed [ ]
Others [ ]
7. Are you an insured person?
Yes [ ] No [ ]
8. If yes with which company are you insured?
………………
9. Are you aware of Private Insurance Companies operating in India
Yes [ ] No [ ]
10. Recall the Brands among private Life Insurance companies according to your
Dept Of Management Science 92 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Awareness
a. ………………….. b. ……………………
c. ………………….. d. ……….……………
11. How did you become aware of these companies?
Advertisement [ ] Friends / relatives [ ] Agents [ ] others [ ]
12. What are the parameters on which you rate Insurance Company (scale 1-5)?
Brand Image [ ] Reliability [ ] Ethics/ Transparency [ ]
Service [ ] Flexibility in Plan [ ]
13. What is the relevance of Ethics & Transparency in Insurance?
Very important [ ] Important [ ]
Not important [ ] Not at all Important [ ]
14. Whom do you think as the best Insurance Company With high Ethical Standard?
LIC [ ] Bajaj Allianz [ ] ICICI [ ]
HDFC [ ] Others Specify …………………..
15. What Aspects of the above make you feel so?
Less risky [ ] More returns [ ] Wide acceptance [ ] others [ ]
16. Which is the most important factor that represents the Brand Image of Insurance Company?
Advertisement [ ] Work Force [ ] Ethics [ ] Market Share [ ]
17. what according to you is the most dissatisfying factor that should be corrected by insurance companies ( Scale 1-5 )
Delay in claim disbursement [ ] Hidden Charges [ ] Long Verification procedure
[ ] Misleading Ads [ ] Unawareness of plan [ ]
18. Hierarchy -Response Model
Are you Aware of Bajaj Allianz Yes [ ] No [ ]
Do you have knowledge about Bajaj Allianz Yes [ ] No [ ]
Do you have a liking for Bajaj Allianz Yes [ ] No [ ]
Dept Of Management Science 93 MESCE Kuttippuram
PROJECT REPORT BAJAJ ALLIANZ
Do you prefer Bajaj Alliance to other companies Yes [ ] No [ ]
Have you developed a conviction to Bajaj Allianz Yes [ ] No [ ]
19. What according to you is the most important factor that Bajaj Allianz should concentrate more to withstand competition? (scale 1-4)
Increase efficiency of work force [ ]
Increase Ads [ ]
Technology Up gradation [ ]
Promotional activities of Bajaj Allianz [ ]
20. Rate the following services provided by Bajaj Allianz in the order of your preference ranging from 1-5 (1 – highest and 5 lowest)
Customer Meet [ ] Reminder [ ] Advisor [ ]
Local Office [ ] Promptness of all service [ ] Direct Collection [ ]
21. Are you happy with the publications brought out by Bajaj Allianz for use of members?
Yes [ ] No [ ]
22. Please give any additional suggestions for improving the trading volume of Bajaj Allianz?
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Dept Of Management Science 94 MESCE Kuttippuram
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