Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing(3)

7/28/2019 Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing(3)

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CONTENTS

Sr.No

01.

02.

03.

04.

05.

06.

07.

08.

09.

10.

11.

Title

Executive Summary

Introduction to topic

Scope and limitations

industry profile

Company Profile

Research Methodology

Data Analysis And Interpretation

Findings And Suggestions

Annexure

Conclusion

Bibliography


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EXECUTIVE SUMMARY

The objective of the project was Market research & find out the Market

Potential for Kotak Mahindra Life Insurance . For this we have to understand consumer

response, time frame, personality constraints and emotions for assessing the potential of

insurance sector. So specifically the target of the project is to focus of the high network

income groups and retailers for their investment portion.

Project involved a blend of marketing where we were to interact with all kinds of

retailers, wholesalers, real estate agents & other service group to gather information onsite and tell them what are the new opportunities that are with Kotak Mahindra Life

Insurance and tell them what are the benefits they will get if they insured with kotak

group.The main task of project involved carrying the fieldwork where we supposed to

visit all kind of retail outlets as well as non-retail business in major localities.

The first half of my project involved in Kotak is to carry the fieldwork along with

campaigning in different localities in Delhi region. Data collected from fieldwork were

submitted to the company for future requirements and also to get back to the customers.The study undertaken for two months. As I have to target specifically to retailers and

whole sellers who form the majority portion of the total market. We were given more

than one month for the collection of data and scanning of data.


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For this purpose Feedback form was prepared which gave a broader picture of

the people about their existence investment segments. The form shows details regarding

current savings and planning for their future events. Through this form we got to know

what people think about private insurance sector and get the idea about different flaws in

the insurance sector because it is seen that during interview few people had a idea about

private players in the insurance sector and their developments. The questionnaire contains

various aspects like profession, education, current savings, number of dependants,

address etc.

Second part of the study contains scanning the form/questionnaire making proper

evaluation of given information and going back to them showing how they need to plan

their future and the direction to achieve their desired goals. Though, many respondents

did not give all the details regarding current savings.

For assessing the customer response following market research process followed

Step 1:Define the objective:

First step is defining the objective i.e. Market Potential for Kotak Life

Insurance researcher covered most of the areas, which had been instructed by the

company.

Step 2:Develop research plan:

The second step was to develop the most efficient plan for gathering the needed

information.

i) Data sources: Both primary & secondary data are taken into consideration.

Primary data are data gathered from field for specific research project.

ii) Research approach: I have mainly collected the primary data through survey

& few cases by observations.

iii) Research instrument: Questionnaire is used to collect most of the primary

data.


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iv) Sample plan: after deciding on the research approach the instruments I

decided sampling plan this cause for three decisions.

a.Sampling unit: project was concentrated on retailers, whole sellers, real

estate agents, service group & others for the sampling unit

b.Sampling size: project consists of 165 respondents from different areas &

from different professions.

c.Contact method: once a sampling plan has been determined, marketing

researcher need to decide how the subject should be contacted: mails,

telephone, personal visit or online interview. In my project research it was

mostly personal interview and in some cases telephonic interviews was held.

Step 3:

Collect the information:

Data collection phase of the marketing research generally was the most time

consuming period. In case of survey few problems arise likewise some

respondents may not give all the detail information and might not be available and

must be contacted or replaced. Others refused to co-operate and finally some

respondents will be biased or dishonest to share information.

Step 4:Analyze the information:

The collected information needs to be analyzed thoroughly to extract the findings

that will be useful to the company. Again this data must be tabulated and

averages/measures are computed from various variables.

Step 5:Present the findings:

And the last step is present the findings that are relevant to the objectives.


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INTRODUCTION TO TOPIC

Life insurance is a contract between you and a life insurance company, which

provides you a predetermined amount in case of your death, accidents or any

uncertain events during the contract term.

Buying insurance is extremely useful if one is the principle-earning member in

the family and unfortunate premature demise, your family can remain financially

secured because of the life that you have purchased.

The primary purpose of life insurance is therefore protection of the family for uncertain

events for future. Life insurance is also seen as a tool to plan effectively for the future

years, your retirement, education of the children s and their future needs. Today, market

offers insurance plans that not just cover you and your family but at the same time it

helps to grow your wealth too.

Life wasn t designed to be risk free. The key is not to eliminate risk, but to estimate it

Accurately and manage it wisely.

Insurance sector have characteristic that give can boost to the growth of any

economy .it is due to the savings done at the individual level and at micro level it

generates funds for infrastructure building as the cash flow is constant while the payout is

differed, so that the insurance companies are becoming biggest investors in long gestation

infrastructure development projects and hence have a great Importance to the developing

economy like India. Insurance sector with an annual growth rate of 15-20% and the

largest number of life insurance policies in force, the potential of the Indian insurance

industry is huge.


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FIG.1 PAST GROWTH SCALE OF INDIAN INSURANCE SECTOR

Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion

(US$10 billion). According to government sources, the insurance and banking services

contribution to the country's gross domestic product (GDP) is 7% out of which the gross

premium collection forms a significant part. The life Insurance industry in India grew by

an impressive 36%, with premium income from new business at Rs. 253.43 billion during

the fiscal year 2004-2005, braving stiff competition from private insurers. RNCOS s

report, Indian Insurance Industry: New Avenues for Growth 2012 , finds that the market

share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86

billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to

arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57

billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Introduction to the topic

The report discusses the work done by trainee Mr. Kamble Nitin student of

Vishwakarma institute of management. The purpose of training was to have practical


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experience of working in an organization. So the fieldwork was essential to get exposure

to various management practices in the field of marketing.

The main purpose of the project was basically to find the market potential for kotak

mahindra life insurance pune. It included extensive market surveys and meetings

mainly with the retailers, whole sellers and other merchants from different regions of

pune. The project is divided in two parts, for the first half is contains period of 30 days

in which I did research, surveys and meetings with the people to collect data. In the

later part I met various retailer, whole sellers, real estate agents, stockiest and few

others to promote and make them aware about the company.

The survey also helped to provide details regarding various opportunities and

different plans and policies that are coming up in the company. This was usefulinformation for them to get the benefits and to know future growth prospects if they

oin with the company.

Importance of the topic

The topic gives broader picture about who is the market leader among all the

insurance providers. The study is all about finding out the market potential of kotak

mahindra life insurance for the pune region.

Kotak group recently launched Kotak Mahindra Life Insurance along with old

mutual plc. as join venture. There are already 13 private insurance companies in the

Indian market & what is the present position of kotak mahindra life insurance could be

determined by market research and fieldwork.

This data will be helpful to determine what are the pros & cons kotak is facing in the

market, how do people perceive kotak group as life insurance providers.


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SCOPE AND LIMITATIONS

Scope of the study

The study of potential of insurance business is concerned with market study i.e

research and fieldwork. This study is going to help the Kotak Life Insurance to find out

market potential with other companies. The study will help the company to assess their

performance and improve it where it is lacking.

Research work is a basic function carried out by each organization. The study of

market potential of insurance is very helpful to find out who are the market leaders in

private companies as well as overall analysis.

Availability of time was also taken into account while decid8ing the particular

method to meet the objectives. The entire study programmed was for the period of two

months.

The subject of the study was selected by looking the necessity and importance to

find the market potential and give suggestions related to the topic.

Limitations:

- One of the major limitations of this study was lack of sufficient time as the

subject was required lot of time.

- The time limit permitted to cover the major areas of Pune but not all the

regions of the city.

- The study limits itself only to Kotak Mahindra Life Insurance.


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INDUSTRY PROFILE

Five years after the life insurance sector was opened up to the private sector,

market scenario for all these companies in not very much exiting. Already over Rs.15000

crore has been invested in the sector by major and their foreign partners. But that is

obliviously not enough, a few thousand crores more will be needed.

Because almost of the 13 private sector life insurance companies are incurring

substantial losses. Some estimate suggests that private insurers made a combined loss of

almost Rs 1000 crore in 2003-04.Things haven t changed much since.

- Bajaj Allianz Life Insurance, the second largest private sector life insurer,

posted a loss of Rs 76.8 crore in the first nine months of the current fiscal.

- Kotak Mahindra Life Insurance registered a loss of Rs 41.22 crores over the

same period.

- Birla Sun Life Insurance, which claims to be among the most efficient users of

capital, posted a loss before interest and taxation of Rs 60.03 crore for the year

ended 31st March 2005.And just in the October-December quarter of

2005,Indias largest private sector insurer, ICICI Prudential posted a loss as the

others have run up in the first nine months of FY 06.

The losses itself are not a major concern. Such under spread losses are neither

abnormal, nor expected in the initial years. In this business, companies have to bear such

losses if they want to reap the substantial long-term profits. But profits are still many

years away.

At the moment, private sector life insurers are at a stage where any growth will

only add to their losses. In fact the insurance sector is seeing a strong growth-in terms of

penetration. Life insurance premium to GDP has grown from 1.8 percent to 2.3 percentwhile the per capita premium paid has more doubled from Rs. 280 to Rs. 600.

However, there is one big reason for alarm. Insurers do need access to substantial

capital in order to keep up this growth despite their initial losses. But many private sector


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insurers are struggling to raise the required capital. That s because the government has

not yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies

from 26 % of equity to 49 % as outlin3d by the previous government.

And because of 26 % FDI cap, the burden of funding the growth falls on the

Indian promoter. The need for capital is even more crucial in the context of the (IRDA)

Insurance Regulatory and Development Authority regulation on solvency margins. In

India, for every Rs 100 of claims payable to customers a life insurance company must

have assets worth Rs 150.

OPTIMISTIC INDIAN MARKET FOR INSURANCE SECTOR:

Indian market can be labeled as a untapped market, which in it s core holds immense

potential for growth. The hike in FDI from 26% to 49% .this increasing capital

participation of international insurers will accelerate the development of the Indian

insurance industry, through the greater deployment of technical competencies and

innovative products and processes .As

The purchasing power of Indian people is increasing, so we can predict that the no. of

customers who can afford to investment in health, life, disabilityand pension products is

going to increase up to great level.

According to SWISS Re Economic Research and Consulting.

300

250

2014

2012

2010

200

150

100

50

0

1 2 3 4 5 6

2008

2006

2004

2002

2000

1998

1996

Rs. Billion

Years

Fig. INDIAN INSURANCE GROWT FORCAST


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AREAS OF OPPORTUNITIES

1) New Horizons of investment

Insurance companies have shown an unquenchable thirst to offer customized

solutions Based on individual risk appetite of customers rather than mundane, one size

fits all endowenment. Based insurance products. We have a good example of ULIP

(Unit links Insurance Plan) by LIC. It is a single largest innovation in life insurance

industry. Life Insurance products are similar to investment product with less or risk

coverage, signifying changing preferences of investors. ULP s score over mutual funds,

since they offer risk-cover, as well as returns by investing in stock markets, even out

performing equity returns in certain instances. We can have the same plans from other

private players like Bajaj-Allianze i.e. equity plan funds, ICICI Prudential maximizer,

HDFC standard life growth fund. Total premium under return for unit-linked plans in the

financial year 2004-2005 stood at Rs. 82.47 billion, and outstanding growth of 422% over

the previous year.

2) Indian Rural Market

A large number of Indians lives in rural India, so this market should be tabbed by

insurance companies and it require a different approach of sales services with respect to

meeting such challenges as low awareness, irregular incomes and geographical distances.

The focus has to be

on simple coverage and return of premiums. Very few companies have plans for rural

India.

3) Customized Solutions

Competitive insurance market exploring the new customer segments, it includes

pension plans and children plans. By 2026 India will have 179 million people who wear

above 60 years of age. According to that insurance companies should have a marketing

plan. Special children plans are the current requirements, as the education is becomingmore important and expensive. So such plans must be introduced by all insurance

companies. ICICI Prudential and LIC have already done this.


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II. WHAT IS NEEDED TO BE EXPLORERED?

1) The industry in general faces the challenge of building the credibility of being a

financial service provider while meeting a customer s expectation of what it means to be

a financial services company. Financial service brands are based on insuring long-term

financial security throw a broad range of inherently risky services and investment

options. In the insurance sector, branding has typically involved the concept of stability;

trust and protection from risks in time of crises, or even protecting from a crises throw a

standard set of products. It will help to establish what insurers stand for and promise and

will eventually help to give a industry new image.

2) The altered scenario of the insurance market in India has brought in new and

differentiated products and services offerings to the public and has opened new

challenges for insurance companies. Devising specific strategies to reach out to specific

segments of the market, different countries and across social strata has been one aspect of

the challenge. The other more complex one has entailed designing the products,

marketing them, ensuring the smooth selling of products, collecting premiums, managing

claims, managing & investing the funds and managing a vast enterprise. This has created

a need of strong Risk Management.

3) The core function of the marketing force of an insurance company is to generate

awareness about the insurance products among the target market.

4) Branding the marketplace is similar to branding on a cattle ranch, the purpose of a

branding program to differentiate our cow from the cattle of range.

According to an article in the insurance marketing magazine, Feb-March 2002, brand

strategy is one of the most critical parts of the underlying business strategy of anyorganization. It will help to establish what insurers stand for and promise and will

eventually help to give a industry new image. This positioning helps to give credibility to


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sell Risk-Free products design to help customers insure that their family and assets are

protected.

5) 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.


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QUICK FACTS:

-

-

-

-

-

-

-

Second largest mobilizer of savings after banks.

Constitutes 15 % of gross domestic savings after banks.

Rs 400,000 crore of assets under management.

Rs 40,000 crore invested in infer-structure

Share of retail customers to total-92 %

Agency force 15 lakhs

No. Of policies in force: 20 crore

- Employees: 200,000

HISTORY

1912: The Indian Life Assurance Companies Act enacted as the first stature to regulate

the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non-life insurance business.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized.LIC formed by an Act of Parliament, viz. LIC

Act,1956,with a capital contribution of Rs.5 crore from the Government of

India.


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ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS.

Insurance sector is seeing a strong growth in terms of penetration, life

insurance to premium to GDP has grown from 1.8 percent to 2.3 percent while the per

capita premium paid has more than doubled from Rs 280 to Rs 600.Despite the fact that

India boosts a saving rat of around 25 percent, less than 5 percent is spent on insurance.

The insurance landscape in India is undergoing major changes. Close to

foreign competition since nationalization in 1956,the life insurance industry had been

protected from competitive pressures.

Now with the re-opening of the sector, several new players have entered

the scene. Besides, Kotak Mahindra Life Insurance there are 12 other private players

working in insurance sector which are as follows.

1.AMP Sanmar Assurance Company Ltd.

Indian Promoter

Foreign Insurer

Reliance Group

None

2.AVIVA Life Insurance Company Ltd.

Indian Promoter

Foreign Insurer

DABUR

AVIVA,UK

3.BAJAJ Allainz Life Insurance Company Ltd.

Indian Promoter

Foreign Insurer

BAJAJ Auto.

ALLIANZ, Germany

4.BIRLA Sun Life Insurance Company.

Indian Promoter ADITYA BIRLA Group

Foreign Insurer SUN LIFE, Canada

5.HDFC Standard Life Insurance Company.


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Indian Promoter- HDFC

Foreign Insurer Standard Life, UK

6.ICICI Prudential Life Insurance

Indian Promoter

Foreign Insurer

ICICI Bank

Prudential, UK

7.KOTAK MAHINDRA Life Insurance

Indian Promoter- KOTAK Bank

Foreign Insurer- OLD MUTUAL, South Africa.

8.Max New York Life Insurance Company

Indian Promoter

Foreign Insurer

MAX India

NEW YORK LIFE, US

9.MET LIFE Insurance Company

Indian Promoter

Foreign Insurer

J & K Bank

MET LIFE, US

10.SAHARA Life Insurance Company Ltd

Indian Promoter

Foreign Insurer

11.SBI Life Insurance

Indian Promoter

Foreign Insurer

12.TATA AIG

Indian Promoter

Foreign Insurer

TATA Group

AIG, US

SBI

CARDIFF, France

SAHARA INDIA Ltd.

NONE


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COMPANY PROFILE

THE KOTAK MAHINDRA GROUP

Kotak Mahindra is one of India s leading financial institutions, offering complete

financial solutions that encompass every sphere of life. Form commercial banking of

stock broking, to mutual funds, to life insurance, to investment banking. The group caters

to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 1,800 core and employs over 4,400

employees in its various business. With a presence in 82 cities I India and offices in New

York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the

world s largest investment banks and brokerage firms) and Old Mutual (a large

insurance, banking and asset management conglomerate).

OUR MANAGEMENT FOR LIFE INSURANCE

Mr. Gaurang Shah (Managing Director)

Ms. Deepali (H.R. Manager)

Mr. Nandip Vaidya (Vice President - Sales)Mr. Arun Patil (Vice President - Sales & Management Development)

Mr. Eksteen de Waal (Head Sales Training)


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OUR STORY

The Kotak Mahindra group was born in 185 as Kotak Capital Management

Finance Limited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this

company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and

that s when the company changed its name to Kotak Mahindra Finance Limited.

1986

1987

1990

1992

Kotak Mahindra Finance Limited starts the activity of Bill Discouting.

Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

The Auto Finance division is started.

The Investment Banking Division is started. Takes over FICOM, one of India s

financial retail marketing networks.

Enters the Funds Syndication sector.

Brokerage and distribution business incorporated into a separate company

Kotak Securities. Investment banking division incorporated into a separate

company - Kotak Mahindra Capital Company.

The Auto Finance Business is hived off into a separate company - Kotak

Mahindra Primus Limited. Kotak Mahindra takes significant stake in Ford

Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of

Matrix Information Services Limited marks the Group s entry into informationdistribution.

Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.

Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business.

Kotak Securities launches kotakstreet.com it s on-line broking site. Formal

1992

1995

1996

1998

2000

commencement of private equity activity through setting up of Kotak Mahindra

Venture Capital Fund.

2001

2003

Matrix sold to Friday Corporation Launches Insurance Services.

Kotak Mahindra Finance Limited converts to bank.


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KOTAK MAHINDRA

A Lifetime of Value


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Old Mutual

Old Mutual was established more than 150 years ago and has developed

into an International services group w focused on asset gathering and asset

management. The old mutual Group offers a diverse range of financial services

geographics : South Africa, the United States and United Kingdom. The company is

listed on the London Stock Exchange capitalization of approximately $6 billon and is

member of the elite FSTS 100 index. In the 2003 rankings of the w corporations

Fortune magazine, Old mutual climbed 87 places to position number 366 and was

also listed 14th company in the world.

Old Mutual is the largest financial services business in South Africa, through

its life insurance, asset management, and insurance operations. The company serves 4

million life insurance policyholders and employs over 13 000 South Africa

operations.

In the USA Old Mutual is one of the top ten fixed annuity business offering an

array of specialist asset management. The company s US Life business recorded sales

of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management,

through Gerrard as one the leading private business in the UK.

The Old Mutual Group has the ability to cater for variety of consumer

segments and offers a comprehensive and in products for all income groups.


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Products:

Individual

Kotak Term Plan

Kotak Preferred Term PlanKotak Money Back Plan

Kotak Child Advantage Plan

Kotak Endowment Plan

Kotak Capital Multiplier Plan

Kotak Retirement Income Plan

Kotak Retirement Income Plan (Unit-linked)

Kotak Safe Investment Plan

Kotak Safe Investment Plan II

Kotak Flexi Plan

Kotak Easy Growth Plan

RidersExclusions Under Riders

Group

Employee Benefits

Kotak Term Plan

Kotak Credit-Term Grouplan

Kotak Complete Cover GroupPlan

Kotak Gratuty Grouplan

Kotak Superannuation Grouplan

Rural

Kotak Gramin Bima Yoj.


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RESEARCH METHODOLOGY

INTRODUCTION:

Marketing Research is an systematic and objective study of the problems

pertaining to the marketing of the goods and services. It may be emphasized that it is not

restricted to any particular area of marketing, but is applied to all the phases and aspects.

METHOD OF DATA COLLECTION:

- Primary Data;

The major source for collecting primary data has been the interviews held with

retailers, whole sellers, real estate agents, stockiest and few other segment of market. Themaximum prospects were visited directly at the shops and interviewed provided they had

time to spare. Some of them interviewed via tele calling and few were interviewed after

taking prior permission and appointment. The information given by them was satisfactory

and relevant to the subject.

- Secondary Data: The sources of secondary data are;

INSTITUTION:

-

-

-

Business Magazines

News Paper

Annual Reports / Company Periodicals

REFERENCES:

-

-

-

-

Internet, Company websites

Telephone Directory (BSNL and TATA Indicom)

References from company employees

Annual Reports / Company Periodicals


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QUESTIONNAIRE METHOD

This method is used to collect general information about the company like total

number of employees viz. agents, sales executive, management trainees, front line staff

etc. Sales executive provided this information. This information helped to know the basic

knowledge about the company before doing the actual research.

RESEARCH DESIGN:

SAMPLING UNITS:

This combines all those respondents in the market who can be the future prospects

of being a part as an insurer of Kotak Mahindra Life Insurance. Some of them are

retailers, whole sellers, real estate agents, stockiest and few others from different

commercial areas of PUNE.

As instructed by the company- following are the few segments.

1.Business- Class

2.Agents

-

-

-

-

-

-

General Insurance Agents

Postal Agents

Travel Agents

Real Estate Agents

Professor / Teachers

Office Staff, Banks Staff

Government Employees

3.Service Class

4. Mutual Fund Agents

5.Tax Consultants

6. Investment Consultants

7. Share Brokers

8. Financial Advisors

9. Chartered Accountants / Company Secretaries

10. Others- House wife , Medical Representatives


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STEP 2

Out of these various segments, the researcher targeted following

- Retailers

- Whole sellers

- Stockiest

- Real Estate Agents

- Others

Note: It was instructed by the company to target the people having net income between

15000 and above. The required data for above segments is to be such, which is helpful to

know the background & potential of the prospects. For all that researcher collected

information as there,

Name

Present Age

Address

Ph No.-

E-mail-

-

-

-

-

-

Brief Information about family

Personal Goals

Retirement Plans

Present monthly expenses

Existing Investment Avenues


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SAMPLE DESIGN

Sample size

(165 people)

Retailers (60) Whole

Sellers(43)

Real Estate

Agents (16)

Stockiest (16) Others (30)


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DATA COLLECTION TECHNIQUES:

-

-

Questionnaire Method

Telephone Interview Method

QUESTIONNAIRE METHOD

The individual questionnaire of the survey was designed for population between

age group of 18 60 years of age who can be the prospect of becoming Kotak Mahindra

Life Insurance clients from different areas of PUNE. In total 165 questionnaires were

completed who were the samples for research work.

SAMPLE SIZE:

The sample size of the respondents was taken as 165 considering the scope and

constraints of the study.

FIELD WORK:

The fieldwork was conducted for a period of 60 days in different commercial

areas of PUNE. Interviews were conducted from respondents across segments, above 18

years of age and as per their convenience. So as to contrive representative sample. The

interview and presentation mode by researcher were carried for the duration of 20

minutes.


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DATA ANALYSIS AND INTERPRETATION

1. Investment options preferred by respondents.

Sr. No Investment Options No. Of Respondents

1 Insurance 75

2 Fixed Deposit 20

3 Post 20

4 PPF 22

5 Mutual Fund 8

6 Shares 57 Daily Collection 15

TOTAL165

Respondents Investments

Insurance

75

20

20

15 5 8 22

Fixed Deposit

PostPPF

Mutual Fund

Shares

DailyCollection

Out of total respondents, maximum i.e. 75 respondents think Insurance is a

safer option to invest the money. It gives them long-term benefits for not only

individual but for the entire family. Thus, people find insurance safe and better

option rather than investing in FD, Post, Mutual Funds, Shares etc.


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2. Need of Life Insurance

Yes

No

Total

135

30

165

Need of Life Insurance

No

18% Yes

82%

Yes

No

Around 82 % of the total samples think that insurance is essential part of the life. But for

everyone the need for life insurance has different reasons.18 percent of the people think

other options are better than life insurance. Following factors determine the need for life

insurance.

Factors to determine need for

L.I No. Of respondents

Security/Safety 55

Savings 15

Long term Investments 35

Tax Saving 30

Total 135

Still majority i.e. 82% people think that insurance is essential. However safety is major

concern when people see insurance as investment.


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3.Awareness about the Insurance Companies.

Insurance Companie

ICICI Prudential

Kotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

Aviva

Total

No. Of respondents

115

65

95

75

35

105

60

550

Awareness about Insurance Companie

ICICI Prudential

Kotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

Aviva

105

35

75

60 115

65

95

Among all the private players in the market ICICI prudential and HDFC Standard Life

are among the most popular and known brands in the market. These two brands are way

ahead of the Kotak Mahindra Life Insurance and others. These two Life Insurance

companies do effective advertising that made them known brands in the market


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4. Reliable companies among the respondents.

Insurance Companies

ICICI PrudentialKotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

Aviva

Total

Respondents

7520

55

40

15

60

35

300

Reliable Companies as per market

ICICI Prudential

Kotak Mahindra

35

60

20

40 55

75 Bajaj Allianz

Tata AIG

Max New York Life

HDFC

Aviva

15

Among all the samples ICICI and HDFC are believed as the most reliable companies

among all the private companies in the market. Following are the factors that determine

why these two companies are preferred and believed by the people.


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Factors

determining

reliability

Brand Name

SafetyPeer pressure

ROI

Previous experience

Total

Response

45

4055

70

45

255

Reliability Factors

Brand Name

18%

26%18%

Peer pressure

22%16% ROI

Previous

experience

Safety

People are positive about ICICI and HDFC as reliable companies because of their

Returns, Brand name, and Previous experience and also there is lot of peer pressure

among


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5. Present Insurance holders

Yes

NoTotal

145

20165

Insurance holder

200

100respondent

s

Series1

0

Series1

Yes

145

No

20

Insurance Companies

LIC

ICICI PrudentialKotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

SBI

Total

Market Share

85

2015

10

8

17

5

5

8


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Market Share of each company3%

3%

10%LIC

ICICI Prudential

Kotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

9%6%

12%52%

5%

SBI

Among the total market share LIC still has majority share in market, holding 52% of the

total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and

HDFCareleaders


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6. Total Savings for Life Insurance.

Savings (Rs)

5000-1000010000-20000

20000-40000

>40000

Total

Respondents

4775

31

12

165

SavingsSavings

80

60

40

20

0

5000-

10000

10000-

20000

20000-

40000

>40000

Series1

No Of Clients

Among the total respondents 75 people save anything between Rs. 10000- Rs15000. Thus

we can say that still people are doing good amount of savings in insurance. It came to

know that all the respondents have some part of their savings in insurance.


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7.Benefits from Life Insurance Policy.

Benefits

Child EducationPersonal Goals

Marriage

Retirement

Savings

Total

Responses Of Clients

3590

45

85

75

330

Benefit Factors

23%11%

26%

Child Education

Personal Goals

Marriage

Retirement

Savings

26%14%

Personal goals, retirement, savings are the prime benefits for which people usually invest

in insurance. The same response was found during the research work. It is good sign for

the insurance business, as people perceive insurance for achieving the different goals in

the life.


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8. Awareness about Kotak Life Insurance.

Awareness

YesNo

Total

Response

7095

165

Brand Awareness

100

Response

80

60

40

20

0

Yes No

Series1

Around 95 respondents i.e. 58% didn t have any idea about Kotak Mahindra Life

Insurance. This shows that there is lack of awareness in the market, which need to be

taken care trough advertising.


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9.Awareness about different plans of Kotak Life Insurance.

Kotak Plans

Awareness

Yes

No

Total

Response

20

145

165

Awareness of Kotak Plans

200Respondenes

150

100

50

0

Yes No

Response

As there in lack of awareness, maximum respondents don t know about the plans and

policies of Kotak Mahindra.This Company needs to promote their different plans through

effective advertising to make people known.


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10.Future prospects for Kotak.

Interested ProspectsYes

No

Cant Say

Total

Response25

75

65

165

Response For Kota

Cant Say

39%

Yes

15%Yes

No

Cant SayNo

46%

15 percent of the total respondents said they are interested to buy the policy from Kotak

Mahindra Life Insurance. Out of the remaining respondents 46 percent didn t show any

interest in Kotak and others were not sure whether to buy the policy from Kotak or not.


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OBSERVATION AND FINDINGS

OSERVATION:

The researcher has taken interview of given various segments as Retailers, Whole

sellers, Real-Estate Agents, Stockiest and others and came to know the facts as follows.

RETAILERS:

Belief:

Retailers contribute to the major portion of any market. Therefore, retailers are good

prospects for insurance business. Normally it is believed that they spare very less time

with other people other than their customers. Retailers are quite busy with their customers

and other related work.

Facts:

Though some beliefs are found correct but observation show other side of the curtain i.e.

- They were quite generous when they knew that they were getting some information.

- They spare good amount of time if one presented the company and himself

properly.

- Retailers give sufficient information if they believe in the work.

WHOLE SELLERS

Belief :

Whole sellers are believed to be among the busiest people in their work. They are

actively involved in loading, unloading, dispatching, billing etc.

Facts:

- Whole sellers are not ready when we approached spontaneously to provide someinformation.

- They provide sufficient information if they contacted when they have free time.


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- Most of them were not really comfortable to give any sort of personal and financial

information.

- These people runs huge business so these are highly potential prospects for any

business.

REAL ESTATE AGENTS

Belief:

These people are not so busy as they have selective and limited no. of customers. But

many of these agents are out with their clients on their sites thus it becomes really

difficult to meet them. They are believed, as they don t entertain others.

Facts:

- Appointments need to be taken before visiting to their places.

- These agents have very good contacts, which means good customer base. So they

give bigger and better clients for insurance business.

STOKISTS/COMPANY OUTLETS

Belief:

These are believed as high-class people and usually prefer to talk with senior executives

of any company.

Facts:

- These people should be given a call before visiting their place, as they don t

appreciate direct visits by any people.

- Good presentation is required to make them talk for a while.

- A highly potential customer if one makes them believe in company by providing

detail information regarding company its present and future growth.

OTHERS

These include house-wife, pensioners etc.


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Belief:

They are supposed to have sufficient time and believed as the working persons at home

normally influence these people.

Facts:- Most of the hose-wife were shy to talk with strangers.

- These people are dependent for their decisions.

- Not a very good prospect for insurance business.


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FINDINGS:

): BRAND Knowledge

1. It is found during research that 58 percent were lacking any sort ofknowledge and information about Kotak as life insurance provider.

2. From the total 165 respondents, 118 respondents save good amount of

money i.e. between Rs 10000 to Rs. 40000 in insurance. Remaining people

save anything between Rs 5000 to Rs 10000.Thus it shows as everyone has

some part of savings in insurance, which is good sign for insurance sector.

3. Majority i.e. 53% respondents have their personal goals and retirement plans

as prime concern for buying insurance.

4. Out of 165 samples, 145 respondents i.e. around 88 % of them have

insurance cover in different private insurance and government

organizations.

B): PRODUCT Knowledge

1. 42 percent had just heard about Kotak Mahindra but were lacking

knowledge about different plans. Out of these 42 percent only 7 percent

people were insurance holders of Kotak Mahindra Life Insurance.

2. It is found that still (LIC) Life Insurance Corporation of India rules when it

comes to trust for insurance providers, among private sectors its ICICI

Prudential, HDFC Standard Life, Bajaj Allainz are among market leaders.

3.

4.

Still 82 percent of samples think insurance is essential for various reasons.

Many respondents found saying HDFC and ICICI as being more reliable

insurance providers in terms of returns, peer pressure, previous experience

than their competitors.


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SUGGESTIONS

1. More visibility through advertising

Media Advertising T.V Channels, Radio Stations, Internet pop-ups, Video Clips

during the intermission in Theaters.

Press Advertising Leading News Papers like Times of India, Economic Times,

Hindustan Times, Indian Express and few local language newspapers.

Campaigning, Rallies, Sponsorships for the local institutional and social events.

All these forms of advertising could be effectively used to create brand awareness

for Kotak Mahindra Life Insurance.

2. They need to concentrate on service factor by hiring or recruiting professional

people for effective presentation and communication skills.

3. They need to open more branches/offices at the major localities in different cities

and if possible in towns.

4. They should hire a Brand Ambassador/Ambassadress from Cricket or Film

industry as people from these two fields influence many people in the society.

This would promote the company not only within India but also at global

standards. This might create strong awareness and give popularity to the company

as millions of people are addressed at one time.

5. They need to search for management trainees whom they can provide proper

training who could turn out as future employees of the company.

6. Good amount of incentives and basic salaries should be given to the employees to

make them perform better.

7. Proper training facilities should be given to the new employees, which will help

them to get fair idea about the company and its policies.


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8. Feedback should be taken from the present clients to know whether they are

satisfied and if they have any problems regarding the terms and service. This will

certainly help to improve the overall performance of the company.

9. Special schemes like Lucky Draws, Trip to foreign countries; Attractive prizes

could be used for promotion.

10. Should develop the plans that are attractive. Also they should develop new plans

that are not launched by any other companies to take first launcher advantage.


45/50

ANNEXURE

1.Personal detail:

Name:

Age(Yrs):

Phoen No.

E-mail

Gender:

Office Address Residential Address

2.How will you rate following investment options on safety as parameter on scale?

a) 0-3 Poor

b) 3-7 Average

c) 7-10 Good

1.Insurance

3.Post

5.Mutual Fund

7.Daily Collection

2.Fixed Deposit

4.PPF

6.Shares

3.Do you think it is essential to have Life Insurance?

a) Yes

If Yes, Why?

1.Safety/Security

3.Savings

2.Long term investment

4.Tax saving

b) No

4.Which of the following companies are you aware as insurance provider?


46/50

1.ICICI Prudential

3.BAJAJ Allainz

4.Max New York Life

6.AVIVA Life Insurance

2.Kotak Mahindra Life Insurance

4.Tata AIG

5.HDFC Standard Life Insurance

5. Which of the following companies you consider mast reliable to invest?

1.ICICI Prudential

3.BAJAJ Allainz

4.Max New York Life


If Yes, Why?

1.Brand Name

3.Peer-pressure

5.Previous experience

6.Do you have insurance cover or policy?

1.Yes

If Yes, which?

1.ICICI Prudential

3.BAJAJ Allainz

4.Max New York Life



4.Tata AIG


8.SBI

2.No

2.Safety

4.ROI


4.Tata AIG


7.Approximately how much money you invest in Life Insurance from your total savings?

1.Rs5000-Rs10000

3.Rs20000-Rs40000

2.Rs10000-Rs20000

4.Rs > 40000


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8.What benefits you avail for investing money in insurance?

1.Child Education

3. Marriage

5. Savings

9.Are you aware about the Kotak Mahindra Life Insurance?

1.Yes 2. No

2.Personal Goals

4. Retirement

10.Are you aware about different plans of Koatk Mahindra such as;

1.Kotak Flexi Plan

2.Kotak Retirement Income Plan

3.Kotak Capital Multiplier Plan

4.Kotak Easy Growth Plan

5. Kotak Child Advantage Plan

11.In the near future would you be interested to buy any policy from Kotak Mahindra

Life Insurance?

1. Yes

2. No

3. Cant Say


48/50

CONCLUSION

After all the research work it can be said that Private Insurance companies have good

market potential in the coming years. There is steady growth in all the companies from

last 2-3 years. Despite the fact that India boosts saving rates of around 25 percent, less

than 5 percent is spent on insurance. So there is lot of opportunities to tap the market

provided these companies create trust among the people.

In case of Kotak Mahindra Life Insurance, they need to develop a Brand name in

the market, which is only possible with effective advertising and good service. They

should promote their products throughout the country and target specific group or class

for each plan or policy. This will make them concentrate on all the plans, which means

maximum portion of the so market can be covered.


49/50

BIBLIOGRAPHY

Company websites: www.kotak.com

www.kotaklifeinsurance.com

Research Methodology: C.R. Kothari

Marketing Management: Rajan Saxena


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Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing(3)