CASE STUDY--:BUYING

INSURANCE

PRATEEK GODIYAL F23NIKITA KAPUR F11SRISHTI RUNGTA F55

What's it about?

The case is all about Rambir Singh, a trader in agricultural commodities living in a small town called Rampur being approached by Ratan Sharma, the friendly neighborhood life insurance agent to purchase an insurance for his daughter’s future needs i.e. college studies, marriage etc. This makes Rambir Singh think about it. He takes advise from his two younger brothers who are professionals for his saving needs. Rambir Singh is the head of the family and wants his family to stay comfortably even when he is not around. The case is also about the agent Ratan Sharma who is threatened by private companies entering Rampur and affecting his business. He is in dire need of clients and feels making Rambir Singh a prospect would increase his business as Rambir would be a perfect referral for others due to his strong social position.

Characters

Rambir Singh-- Trader of agricultural commodities in Rampur

Ratan Sharma-- Friendly neighborhood life insurance agent representing ABC Tapas

Sapna Dev-- Wife of Rambir Singh Satish-- Younger brother of Rambir and an

Engineer Laxman-- Youngest brother of Rambir and a CA. Rambir’s son Rambir’s daughter.

Key Points (part A)

Rambir Singh is a business man trading in agricultural commodities.

He lives in a joint family. He has taken bank loan to build a house. Thinking about insurance as a means of

saving for his daughter’s future needs. Ratan Singh had to get customers

because he was threatened by private firms entering the market.

Key Points (part B)

Rambir was worried about the commitment he had made for the loan for the house.

Sapna devi ran the household and hers was the final word in case of durable purchases too.

Rambir’s son played a major role in influencing decision to buy products through his knowledge about things.

Both Satish and Laxman agreed that purchasing insurance was a good idea for saving for the girl’s future.

Ratan Sharma was convinced that targeting Rambir was a better choice because he had a strong social position and could bring strong prospects through referrals.

Assumptions

Demographic profile of Rambir Singh Age 43 years old. A college dropout. An agricultural commodities trader. Lives in a small town called Rampur. Lives in a joint family with wife, two kids,

two younger brothers and their respective wives.

Psychographic profile of Rambir Singh Educated Plans highly for purchases Worries about his family Plans for the future Has discussions with family members

regarding important purchases

Part A (Questions)

1. The middle & lower class segment offers best target for Ratan.

2. Age- older people look for high return plans, middle age people would think about future comfort of the family.

Occupation- affect the premium plan selection.

Education- educated people would plan and negotiate the terms, uneducated would be mostly unaware and accept whatever is offered.

3. Main concern is whether at the time of fulfiiling the commitment the company would keep its words or not. The segment views the product as a backup for the family needs after them.

4. Specify that future needs would be higher, they may not be able to satisfy them unless they start saving now.

Should communicate the best plans available. Use richer people as example customers.

Part B (Questions)

1. Expanding stage.2. Availability in terms of money is

sufficient but pertaining to the demand, but demand may increase with time.

3. Yes. Rambir is the head of the family has to think about everything. Does not feel seel sense of security, being the oldest in the joint family like his brothers.

4. Sapna (wife) practically runs the household so its important to have her opinion, kids are more knowledgeable about the current events so their opinion may prove important, since both the brothers are professionals valuable information and advise is gained.

5. Sapna’s impact would probably be the most. The brothers can quote from their experience in investment.

6. The premium plan, the returns, his wife’s support, the agreeableness of his brothers.

7. By making Rambir understand the long term benefits. Focus on his daughter and attractive premium plans. Through references of people of the same status as Rambir.

8. Maintain good relation with existing customers, may act as references.Focus more on low premium plans for people living in small town such as Rampur.Gain as many prospects as possible before entrance of private companies in the market.