1

SALES MANAGEMENT PROJECT

ON
ALLOCATION OF SALES QUOTA
IN NCR REGION OF ICICI
PRUDENTIAL

SUBMITTED TO: - SUBMITTED BY

MR AJAY NARULA BHAWNASHARMA

NITIN JAGETIA
RAKESH CHOPRA
RISHABH BHATIA
RITESH DAYAL
SWATI
NANDA

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 CONTENTS
 ACKNOWLEDGEMENT

 SYNOPSIS

 INSURANCE INDUSTRY IN INDIA

 COMPANY’S HISTORY

 VISION & STRATEGY

 SITUATIONAL ANALYSIS- INTERNAL

o SWOT ANALYSIS

 SITUATIONAL ANALYSIS- EXTERNAL

o CONSUMER ANALYSIS

o COMPETITORS ANALYSIS

 SALES QUOTA METHODS USED BY THE COMPANY

 MOST POPULAR METHODS OF SALES QUOTA

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 ACKNOWLEDGEMENT
We are interdependent on each other for accomplishment of our goals. We do
acknowledge that the study is an outcome of constructive support and cooperation of
many persons towards we feel indebted.
The goal was fixed moves were calculated and we moved with full enthusiasm, vigor and
keen interest. There were times when it proved to be an uphill task, the goal seeming
beyond our research but as work progressed our determination and will power grew
stronger and the completion of this work was further confirmed by getting the exemplary
guidance and valuables support of the faculty.

We take immense pleasure in expressing our deep sense of gratitude to the company
representative Mr. RAVI CHOPRA, Financial Service Manager (ICICI PRUDENTIAL
LIFE INSURANCE) Mr NITIN CHAUHAN, Financial Service Manager (ICICI
PRUDENTIAL LIFE INSURANCE) for their able guidance and valuable time,
cooperation and inspiration without which this project would not have been possible.

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 SYNOPSIS
GROUP NO. F1103

TITLE: Study of allocation of Sales Quota for ICICI Prudential

OBJECTIVE: To understand the following:

1) Different practices adopted in the Industry with respect to Sales Quota.

2) To develop the ability to analyze various problems related to Sales Quota and to
be able to provide solutions for the same.

INTRODUCTION:
Security has been one of the primary concern for humans for years. Today people are
becoming more and more educated. With growing literacy rate what has been growing is
the need to get insured from unseen problems. The insurance industry has thus realized
the existing potential in the market and more and more companies are offering
fascinating insurance products to the consumers.

Over the past five years, the life insurance industry has witnessed a sea
change in terms of product offerings, service, risk management, fund options and others.
Customers are now much more aware about life insurance and its benefits. What is more,
in just a short period of time, life insurance has also become amongst the most exciting
sectors to work in or partner with, demonstrating the immense job opportunity it has
created.In fact, today private sector insurance companies have increased their share in the
total market to nearly 34 per cent, which is much higher than most industry estimates.

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 ICICI Prudential Life Insurance Company Limited continues to hold on to
its top rank ever since it started operations. ICICI Prudential Life is the first life insurer in
the country (including the Life Insurance Corporation of India) to declare the embedded
value-the present value of future profits embedded in the policies sold.. Today the
company has one of the widest distribution networks with 153 branches in 110 locations
spread across the country. On service, the focus is to create a variety of touch points in
order to enable customers to interact easily with the company.

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 Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential Life has a range of products that meet the needs of every segment, in
both individual and group policies. There are 13 policies to cater to individuals, which
can be enhanced with six riders so as to create a number of combinations.

The company also offers three group policies : Group Term,Group Gratuity, Group
Superannuation.

ICICI Prudential Life operates in 23 locations, some of which have multiple

branches. Policies are issued from the head office in Mumbai.

 ICICI Prudential's capital stands at Rs.29.32 billion.

 ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.
 It has a strong presence across India with over 735 branches and over 243,000
advisors.

IMPORTANCE OF THE PROJECT:

To understand the effectiveness of Sales Quota in the following:

1) In monitoring and measuring performance of the Sales person.

2) Motivating Sales person.
3) Achieving Desired Sales.

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 VISION
 Understanding the needs of customers and offering them superior products and

service.

 Leveraging technology to service customers quickly, efficiently and conveniently.

 Developing and implementing superior risk management and investment strategies to

offer sustainable and stable returns to policyholders.

 Providing an enabling environment to foster growth and learning for our employees.

 And above all, building transparency in all dealings.

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 VALUES
Every member of the ICICI Prudential team is committed to 5 core values:

a) Integrity

b) Customer First

c) Boundary less

d) Ownership

e) Passion

PROMOTERS

ICICI Bank:-

ICICI was founded by the World Bank, Government of India and representatives of the

private sector in 1955 to encourage and assist industrial development and investment in India.

ICICI Bank is India’s second-largest bank with total assets of about Rs.112, 024 Crore and a

network of about 450 branches and offices and about 1750 ATMs. It offers a wide range of

banking products and financial services to corporate and retail customers through a variety of

delivery channels and through its specialized subsidiaries and affiliates in the areas of

investment banking, life and non-life insurance, venture capital, asset management and

information technology. ICICI Bank posted a net profit of Rs.1637

Crore for the year ended March 31, 2004. ICICI Bank’s equity shares are listed in India on

stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and

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 the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).The Various segment of ICICI are .

Prudential PLC

Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,

the US and Asia, provides retail financial services products and services to more than 16

million customers, policyholder and unit holders worldwide. As of June 30, 2004, the

company had over US$300 billion in funds under management. Prudential has brought to

market an integrated range of financial services products that now includes life assurance,

pensions,mutual funds, banking, investment management and general insurance. In Asia,

Prudential is the leading European life insurance company with a vast network of 24 life and

mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan,

Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

The company has six Bancassurance tie-ups, having agreements with ICICI Bank, Federal

Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as

well as over 150 corporate agents and brokers. It has also tied up with NGOs, MFIs and

corporates for the distribution of rural policies and organizations like Dhan for distribution of

Salaam Zindagi, a policy for the socially and economically underprivileged sections of

society.

ICICI Prudential has recruited and trained about 2,14,000 insurance advisors to interface

with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to

provide superior quality of service to customers.

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Identify direct competitors
NAME OF THE PLAYER MARKET SHARE (%)(2003)
Name of the Player Market share (%)
LIFE INSURANCE CORPORATION OF INDIA 82.3
ICICI PRUDENTIAL 5.63
BIRLA SUN LIFE 2.56
BAJAJ ALLIANZ 2.03
SBI LIFE INSURANCE 1.80
HDFC STANDARD 1.36

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TATA AIG 1.29
MAX NEW YARK 0.90
AVIVA 0.79
OM KOTAK MAHINDRA 0.51
ING VYSYA 0.37
MET LIFE 0.21
ICICI still leads the private sector pack. With a portfolio of over 6.5 million policies, India's

biggest private sector life insurer has not merely held on to its share but grown it; at the end

of January 2008, the firm commanded 29 per cent of the share owned by private sector

players. Quite some way below was Bajaj Allianz with 21 per cent, while State Bank of India

came in third with 10 per cent.

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 41 Per Cent Growth in Life Insurance Industry in 2006

Life insurance sector grew by 41 per cent in 2005-06 due to better performance of
country's largest life insurer, LIC, and private players like Bajaj Allianz and ICICI
Prudential. The 15 life insurance companies together collected Rs 35,898 crore in the
fiscal ended March this year, compared to Rs 25,343 crore in the previous fiscal,
according to data compiled by regulator IRDA. Life Insurance Corporation's premium
income rose more than 28 per cent to Rs 25,645 crore after it sold 3.16 crore
policies as against Rs 19,972 crore collected a year ago. However, LIC's market
share dipped by 6.63 per cent to 71.44 per cent from 78.07 per cent in the year ago
period due to stiff competition and aggressive marketing of private life insurers. The
14 private players were able to steadily increase their market share from 21.93 per
cent to 28.56 per cent in a year's time by collecting Rs 10,252 crore during the
period under review.

Courtesy: The Economic Times, June 02, 2006

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 SITUATION ANALYSIS
While working on the project we can understand different situations and problems which we

need to analyze. Further decisions will be taken on the basis of the situation at hand.

Components of a Situation Analysis

1. Corporate level situation analysis
-Corporate mission and objectives
- Resources and competencies
- Environmental problems and opportunities
- Demographic
- Social-cultural
- Economic
- Technological
- Legal and regulatory
- Competition
- Portfolio analysis

2. Product level situation analysis

Market analysis
- Describe the product-market structure
- Find out who buys
- Assess why buyers buy
- Determine how buyers make choices
- Determine bases for market segmentation
- Identify potential target markets
- Competitive analysis
-Identify direct competitors
- Assess likelihood of new competitors
- Determine stage in product life cycle
- Assess pioneer advantages
- Assess intensity of competition
- Determine the competitors’ advantages and
disadvantages
- Market measurement
- Estimate market potential
- Determine relative potential of each geographic area

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Competitive Situation

This subtopic of the situation analysis section provides information about key competitors:

description of key competitors and their market positioning size of key competitors in

units/dollars market shares of key competitors sales trends of key competitors strengths and

weaknesses of key competitors compared to your company's product or services perceived

marketing strategies of key competitors and their probable impact on your company.

Target Buyer or End User Situation

This subsection of the situation analysis section provides actionable information on selling to

target buyers and stimulating purchases or usage by the ultimate end users. Key questions

answered in this subsection include: description of target buyers or end users in demographic,

psychographic, and lifestyle terms target buyer/end user wants, needs, attitudes, and

perceptions of category products and services where target buyers/end users are located and

how to reach them which segments of the total market or category are growing or declining

and why.

Product Situation

This subtopic of the situation analysis section provides company information on: sales profit

product trends cost-of-goods history (five years) marketing spending history (five years of

advertising, promotion, PR spending) distribution trends and developments description of the

sales organization (e.g., company or brokers).

Distribution Situation

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This subtopic of the situation analysis section describes each distribution channel and its

relative importance to the company in terms of: percent of company sales company volume

cost to distribute products and services growth potential competitive status.

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 STRENGTH
1 Brand Name of ICICI:-The name of the ICICI is known in all over the country

as number one bank in the private sector and this is the name which people have

trusted for many years, which is mainly due to the ICICI Bank. So ICICI

Prudential, do not have the crises of the brand name

2 STRONG FINANCIAL BACKING: - the ICICI prudential had a strong

financial backing from their promoter, (ICICI BANK and Prudential), which help

the company to build trust on the mind of the people.

3 STRONG SALES FORCE: - The Company has a very strong force of

good marketing brain, which gives an edge over the other competitor especially

nationalized insurance company like LIC. And secondly it has a very good

distribution channel which helps the company to get more clients from these

reliable sources. These channel include

Allied Banks like

 ICICI Bank

 Federal Bank

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  South Indian Bank

 Bank of India

 Lord Krishna Bank

 Some co-operative banks

WEAKNESS

Lack of Information about the product:-Most of the product of the ICICI

Prudential are known by the people, this is because of lack of information about the product and

bad marketing strategies by the company mainly in small cities

FOCUSING MAINLY ON THE URBAN SECTOR:-ICICI prudential

mainly focus on the urban sector of the country, where the competition is very tuft and are

not concentrating on the other sector of the country mainly in the rural sector where there.

Most of the Plans are too complicated:-ICICI Prudential insurance plan are too
complex to understand for a layout person, and this makes most of the people to avoid this

plan because they feel difficulties to understand. The same is in the case of Mutual Funds.

OPPORTUNITIES
1 A large Part of cities are uncovered: - A large part of the cities are

uncovered by ICICI Prudential life insurance where they do not have any

branches.

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2 Some Top Nationalized banks should be made Allies: - There are large

parts of the cities were Nationalized banks have large number of clients in compare to

private banks, this is mainly because they are operating for such a

long time and there is a good opportunities to converted those customer into ICICI

prudential customer, By making them allies.

There is a good opportunities to increase the Advisors base : - when we

compare the ratio of Advisors with LIC, then we will find that there is a large gap

between them, so there is an opportunities to increase the advisor base by breaking the

agents of LIC.

Threats:-
1 LIC: - LIC is the greatest threat to ICICI prudential in the area of insurance

sector, because it is one of the oldest insurance company in the country, and have

a large size of the customer abase.

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 PRODUCTS

PRODUCT PRODUCT OFFERING

1) Secure Plus savings plan that offers 3 levels of

protection.
2) Cash Plus 3 levels of protection as well as liquidity

Options

3) Save? n ?Protect Customer requires savings plan that

offers life protection along with adequate

returns
4) Cash Back anticipated endowment policy ideal for

meeting milestone expenses like a child’s

marriage, expenses for a child’s higher

education or purchase of an asset

5) Life Time & Life Time II offer customers the flexibility and control
to customize the policy to meet the
changing needs at different life stages. Each
offer 4 fund options- Preserver, Protector,
Balancer and Maximiser
6) Life Link II single premium Market Linked Insurance
Plan which combines life insurance cover
with the opportunity to stay invested in the
stock market
7) Premier Life limited premium paying plan that offers

customers life insurance cover till the age

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 of 75
8) Invest Shield life Market Linked plan that provides capital
guarantee on the invested premiums and
declared bonus interest

9) Invest Shield Cash Market Linked plan that provides capital

guarantee on the invested premiums and

declared bonus interest along with flexible

liquidity options.

10) Invest Shield Gold Market Linked plan that provides

capital guarantee on the invested

premiums and declared bonus interest

along with limited premium payment

terms.

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 PROTECTION PLAN
PLAN
Child Plan:
 Smart Kid
Retirement Solutions:
 Forever Life
 SecurePlus Pension
MARKET-LINKED RETIREMENT PRODUCT
PRODUCT
LifeTime Pension II
Life Link Pension II
Invest Shield Pension
OFFERING
education plans provide guaranteed
educational benefits to a child along
with life insurance cover for the parent who
purchases the policy
retirement product targeted at individuals in
their thirties
a flexible pension plan that allows one to
select between 3 levels of cover.
OFFERING
a regular premium market-linked pension
plan
a single premium market-linked pension
plan
A regular premium pension plan with a
capital guarantee on the investible premium
and decxlared bonuses
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 PROBLEM ANALYSIS

WHAT TYPES OF QUOTA

INDUSTRY PRACTICE OF TARGET
GLOBAL MARKET HOW TARGET
QUOTA MIX PIE CHART

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The SMART Goal Process
S pecific
M easureable
A chievable
R elevant
T hrifty
Components of a Marketing
Plan
Analysis
Strategy
Position
Budget
Action
Measurement

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Sales Target
Objectives for setting Target:

1. To provide quantitative performance standards

2. To provide tighter sales and expense control

3. To motivate desired performance

4. To use in connection with sales contest

Types of targets:
1. Sales Volume

2. Financial

3. Activity

4. Combination

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 Sales Volume Target:
Sales Volume quotas are set for geographical areas, product lines , or marketing
channels or for more of these in combination with any unit of the sales organization
,the exact design depending upon what facets of the selling operation management
wants to appraise or motivate.
The smaller the selling unit, the more effective a quota is for
controlling sales operations. Setting a sales volume Quota for a sales region , for
example ,obtains some direction and control , but setting sales volume quotas for
each sales territory in the region obtains much more.

DOLLAR SALES VOLUME QUOTAS

Companies selling broad product lines set sales volume quotas in dollars rather

than in units of product.These companies meet complications in setting unit quotas and in

evaluating sales performance for individual products.

UNIT SALES VOLUME QUOTAS

Sales volume quotas in units of products are used in two situations. One is that

in which prices fluctuate considerably ; in this situation ,unit sales volume quotas are better

yardsticks than are dollar sales volume quotas.

The second situation occurs with narrow product lines sold at stable prices,unit

quotas are preferable due to psychological reasons.

POINT SALES VOLUME QUOTAS

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 Some companies use sales volume quotas expressed in “points”. Companies use

point volume quotas because of problems in using dollar or unit volume quotas. Sales person had

to meet all the point volume quotas before becoming eligible for bonus points.

Financial target:

1) Expense quotas :- Expense quotas are used in focusing appraising performances. They are

supplemental standards aim towards keeping expenses in line with sales volume. Thus , expense

quotas are used most often in combination with sales volume quotas.

2) Gross margin/ net profit quota :- Companies not setting sales volume quotas often used

gross margin or net profit quotas. The rationale is that sales person operate more efficiently if

they recognize that sales increases, expense reduction, or both are important only if increased

margin and profit results.

3) Average order size :- This control the frequency of calls on different accounts. Using average

order size standards along with average cost per call standards, management controls the sales

person’s allocation of effort among different accounts and increases order size obtained.

4) Order call ratio :- This cost measures the effectiveness of sales personnel in securing orders.

Sometimes called up “batting average”, it is calculated by dividing the number of orders secured

by the number of calls made. Order call cost standards are set for each class of account.

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 Activity quota
Activity quotas are set for total sales calls, calls on particular classes of customers,
calls on prospects, number of new accounts, missionary calls, product
demonstrations, placement or erection of displace, making of collections and the like.
Before setting activity quotas, management needs time and duty studies of how sales
personnel actually apportion their time, making additional studies to determine how
sales personnel should allocate their efforts.

, Used when SP are involved in non selling activities

1. Tot. sales calls on a particular category of customer
2. Order call ratio :tot. no. of calls being made/ tot. no. of
customers being made
3. Market development : Calls on prospect
4. Sales report
5. Call frequency
6. Demo’s organized – road shows, stalls, seminars, sales
prom. activity
7. Lost business analysis

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 Combination and other point
system quotas
Combination quotas control performance of both selling and non selling activities. These
quotas overcome the difficulty of using different measurement units to appraise different
aspects of performance. Because performances against combination quotas are computed as
percentages, these quotas are known as point systems, the points being percentage points.
Combination quotas summarize over all performance in a single measure, but they present
some problems.

It controls performance of both selling and non selling activities

(A) (B)
Activity target actual %age achieved weight A*B
Sales volume 3
New a/c obtained 2
Calls on prospect 1
Displays erected 1

Combination Targets

Setting up targets:
 Sales volume target derived from Sales volume potential present
 Targets derived from total sales estimate
 Past sales experience
 On executive judgment

1. Rs. Sales Volume Target:

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2. Unit sales volume target:

3. Point sales volume quota: eg. Nokia

Macro Environment Situation

This describes the relevant information on the macro environmental trends affecting your

business.

Technological: Innovation can create or wipe out industries and businesses in less than a

year. One example is the popularity and convenience of CD players all but eliminated the sale

of record players and seriously depressed the manufacture and sale of vinyl records. This is

especially important for you if your product is technology based.

Social and cultural: There is a sweeping trend for Americans (and the world) to dress more

casually, with function and comfort driving new clothing and shoe trends. People are cooking

less and are more concerned about nutrition and fat in their diets. And today, American

business people are less willing to sacrifice family life for business careers.

APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE SECTOR

There is a evolutionary change in the technology that has revolutionized the entire insurance

sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for

trend analysis and personalization.

With increased competition among insurers, service has become a key issue. Moreover,

customers are getting increasingly sophisticated and tech-savvy. People today don’t want to

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 accept the current value propositions, they want personalized interactions and they look for

more and more features and add ones and better service

The insurance companies today must meet the need of the hour for more and more

personalized approach for handling the customer.

Market Situation

This subtopic of the situation analysis section provides information on the size, growth, and

trends of the overall market and any relevant segments of the total market or category.

For example, local business could include local industry sales or volume for the last five

years and estimated total market for this year and the following year, with company sales and

share of the market.

Market Growth: This topic would tackle the questions of is the market growing? Is it static or

is it shrinking? After gathering the necessary data, analysis can be drawn out to forecast total

market growth for the next five years.

With the forecast made available a more detailed marketing strategy can be drawn, if the

market is static what should you do to increase your sales?

Market Segmentation: Effective marketing and sales initiatives require a thorough

understanding of your target markets and channels. We can help you concentrate your

resources where they are most effective using thorough research and analysis. We'll help you

get a better understanding of factors critical for marketing and sales success

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Demographics: Consumer wants; preferences and the frequency of their purchases are mostly

associated with demographic information. Demographics help you determine the market’s

age, gender, nationality, education, household composition, occupation and income. For

example, a home-building contractor should begin to pay closer attention to the needs of

people over 65 (20 percent of the USA population will be over 65 by the year 2000) as baby

boomers begin to edge closer to retirement. People are living longer and spending more on

vacations, recreation, and entertainment.

Market Geographies : This section addresses where your customers are physically located. If

you are marketing your services over the Internet, your client's physical location may be

irrelevant. However, if your job is to promote a local fundraising or store, having an internet

as marketing tool is a fast and cheap way to advertise your products.

Market Psychographics : This category describes the personality of a person, therefore it is

less tangible, but still precious. For example, the lifestyle of a student is significantly

different with a working professional. If selling a gamer based computer to students

understanding what they want and attracts them is very important.

Market Behaviors : Buyers can be analyzed based on their knowledge, use or response to a

product or service. These behavioral variables may include the occasions that stimulate a

purchase, the benefits realized when reading a testimony, the rate of possible usage, their

loyalty, the buyer-readiness stage, and their attitude toward the service you offer.

Upon determining the market demography, geography, psychograph, and behaviors, we

move on to determine the:

Market needs : Value and worth is determined by the user or client. Whether it is in tangible or

intangible forms, the question is what is needed? Are you providing the right solution to the

right problem? Are you making the users or clients overall value as a company increase or

satisfy the needs? These questions would be compiled in this section.

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Think in a broader terms such as how would the product benefit, excite, and attract the

customers? For example, Televisions, all of them are for viewing but why are there so many

differences in sizes, resolutions, and prices? Is a HDTV the same as a normal TV? Certainly

not, HDTV has the capabilities to show better resolution and is normally more expensive.

People who can afford HDTV reflect their economic situation and social status.

This topic is a reminder that all of your marketing activities should be based in meeting the

needs of your customers. For each market segment a strategy should be included that outlines

the market needs that would lead this market segment group to want to buy your products or

use your service.

Market Trends : Understanding the market patterns or trends may enable you to "get ahead" of

your market and allow you to know where it is going before it gets there. Seizing a potential

window of opportunity can be critical to establishing a competitive advantage. Timing is

critical to any marketing strategy. One good example is the iPod from Apple Computer Inc.

The iPod accounts for 75 percent of all MP3 players sold in the United States, according to

the NPD Group Inc. Apple has shipped 21.8 million iPods since Jobs introduced the player in

October 2001, with 18.1 million units sold in the last four quarters alone. When Apple first

introduced the iPod in the early 2001, many people doomed its future but Apple Computer

Inc persisted because they are able to foresee the market trends which led them to today’s

75% mp3 market dominance.

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Estimate market potential
Market Potential for Private Life Insurance Companies in India

It has been found out that:

* 85 percent of the Indians prefer LIC than any other insurance companies.

* 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important factors

influencing Indians in opting for Life Insurance

* Only few of the Indians are aware of private life insurance companies.

* Most of the Indians are of the opinion that private insurance companies would be able to

perform well in the long run.

* Most of the Indians are interested in 'Money back' policies than others

* Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs

* There is significant relationship existing between monthly household income and amount

insured

* Based on the monthly household income, Indians prefer to their investment needs like bank

deposit, post office schemes, real estate, insurance, gold, chit funds, shares etc.

* Agents are mostly responsible for selling insurance products in India

The market potential for private insurance companies is found to be greater in the long run as

most of the Indians are of the opinion that, private insurance companies would be able to

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perform well in the future. The private and foreign insurance companies have to immediate

steps in appointing more number of agents and/or advisors in addition to the employees as it

has been found out that agents are the best channel to reach the general public regarding

selling of insurance products. The private and foreign insurance companies have to

concentrate on the factors like 'Prevention of Loss', 'Assured Returns' and 'Long term

Investment'. They can also focus on an insurance amount of Rs. 1 – 2 lakhs with 'money

back policies'. Hence, the market has potential. The private and foreign insurance

companies that are taking immediate steps can tap it.

The numbers of Competitors are less in the Insurances sectors that makes this Sector

attractive to most of the financial companies. So, for that reason ICICI prudential have a tuff

competition with other competitors in this segment and secondly icici Pru had an experience

of five years of this segment but on the other hand the company like, LIC had more then 20

years of experience of this market. So for ICICI prudential there is threat mainly with the

LIC. And in future this can lead to frequent price wars, advertising battles and new-product

introductions and will make it expensive to compete. But overall this segment is very

attractive.

Threat of new entrants: -segments attractiveness varies with the height of its entry and

exit barriers.If we look from this angle then this segment is moderate because the entry

barriers are high for the foreign companies, because of the restriction imposed by the Indian

government on them, such as, they can have a maximum of 26% stage in the company and

secondly the companies should have certain amount of money with them as mention by the

govt. and the exit barriers are low. This means that few new firms can enter into the industry

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 and poor-performing firms can easily exit and for this reason, this segment is more attractive

for the companies.

Threat of substitute Product: -When we considers on the substitute products, this

segment is unattractive because there are many actual and potential substitutes for the product

of ICICI prudential and all the competitors have almost similar product or plans, but they

mainly differ in the service point of view.

Threat of Buyer’s growing Bargaining Power: -This segment is unattractive

because the buyers possess strong or growing bargaining powers such as: -

The buyer’s switching cost is low in the financial investment sectors.

The product is undifferentiated because most of the companies in the insurance sector provide

almost same policies and investment plans.

Threat of Suppliers Growing Powers: - In this segment, the suppliers bargaining

power is more, because banks and CA are the easiest and the important channel to reach the

client and for that reason they have the strong bargaining power.

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 CHANNEL PARTNERS

ICICI Prudential uses a multi-channel distribution strategy.

Channel partner

BANCASSURANCE CORPORATE AGENTS DIRECT MARKETING FSC

PUNJAB &
ICICI CITI FEDERAL ALLAHBAD MAHARASHTRA
BOI
BANK BANK BANK BANK
COOPERATIVE BANK

FSC: Financial Service Consultant

BOI: Bank of India

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ORGANISATIONAL STRUCTURE

42
 VP

NH

RM

AM AM AM AM

SM SM

FSM FSM

FSC FSC FSC FSC FSC FSC FSC FSC

VP: Vice President

NH: National Head
RM: Regional Manager
AM :Area Manager
SM: Sales Manager
FSM: Financial Service Manager
FSC: Financial Service Consultant

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Problems related to Quota System

1. Should be fair and attainable quotas: Good quotas are accurate, fair and attainable.
Obtaining accurate quotas is a function of the quota setting procedure: the more closely quota are
related to territorial potentials, the greater the chances for accuracy but, in addition, regardless of
the type of quota –sales volume, budget, activity, or combination – sound judgment is important
in analyzing market data, adjusting for contemplated policy changes( and appraising changes in
personnel capabilities)
Quotas are fair and attainable; this depends not only upon the quality of management’s
judgment but upon the capabilities and motivation of sales force.

2. Securing and maintaining sales personnel’s acceptance of quotas:- management

must make certain that sales personnel understand quotas and the quota setting procedure. If sales
personnel do not understand the procedure used in establishing quotas, they may suspect, for
example that the quotas are the techniques to obtain extra efforts from them at no cost to the
company.

3. Keeping sales personnel informed:-Effective sales management keeps sales personnel

informed of their progress related to quotas. Sales personnel receive frequent reports detailing
their performance to date. This permits them to analyze their own strong and week points and
corrective action.

4. Need for continuous managerial control:- In administering any quota system, their is a
need for continuous monitoring of performance. Arrangements must be made together and
analyze performance statistics with minimum delay. Keeping sales personnel informed at
frequent intervals, at least monthly, requires sub dividing the year.

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 DECISION ANALYSIS

CHANGE OF QUOTA BY COMPANY

EVALUATION SHEET
RELATION BETWEEN QUOTAS AND
PERFORMANCE

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 DECISION ANALYSIS
Decision will depend upon the kind of situation or problem at hand.

Detail Study Input:

Data Collection: Monthly,quarterly,annual sales report.

Data Preparation: Designing Sales Reports

Data Chart: Diagramatic Representation of Sales Report.

Data Analysis: To compare Sales Data of the firm with industry Standards.

Data source:-
For this project both primary and secondary data were the most valuable source of information.

Secondary data:-
Secondary data provide a starting point for research and offer the valuable source of information.

The secondary data was the most important source for my project because my first aim was to

find out the top five person or industries from every segment of the industries so for this reason I

started collecting the various directory which can help me in finding out the desired information

about the industries and people.

The various directories are as follows:-

Telephone Directory.

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Income Tax office.

City directory.

1 Chartered Accountant Directory.

2 Carpet Industries Directory.

3 Hotel Industries Directory.

4 HDFC Banks.

5 Indian medical association directory.

6 Transporter directory.

7 Exporter Directory.

8 Lawyers Directory.

9 Builders & Constructors Directories

10 CNF

Primary data:-

Primary data are data freshly gathered for a specific purpose. The various sources of

primary data for my project are as follows.

1 Banks.
2 Local residents.
3 People from industries

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 Research Approaches:-
From the two data source which I have mention above secondary data are the easiest way

to gather and the cost of collecting this data is very low and easily available from the

respective association. And I started by collecting this directory from the various sources,

because at the starting point of the survey this information play a important part for me

and this help me to short out the people which, I can meet with them to collected more

information about them or who are my target people.

After collecting the secondary data or information from the secondary sources then I

started collecting from primary sources to narrow down my research. There are basically

five ways to collect data.

1 Survey Research: - This method was the most appropriate way to

collect data. And I have used this method in my project to find out

the company need by identifying the suitable prospect in the city who

can become the ICICI pru client.

2 Observational Research:- This method was not used by me in my

project ,because this survey have no use for me

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 3 Focus-group Research: - This method is also not used by me in my

survey.

4 Behavioral data:-This method was also not used by me in my

survey.

Research Instruments
There is various way of research instrument of collecting primary data, the various methods are:-

Questionnaires.

Psychological tools.

Mechanical Devices.

Qualitative Measures.

From the above mentioned research instruments I had used only Questionnaires technique to

find out the various information about the clients such as their turnover, chartered accountant,

investment behaviors, who is their financial consultant etc. And this was the technique which I

felt the best way to extract information about the client

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 Sampling Plans
After collecting entire data and deciding on the research approach and instruments, now I had to

decide on the sampling plan which was one of the important task, because from the bunch of

people I had to select only those people ,whom I can target from now onward .There are three

way of sorting the data.

Sampling Unit: - who is to be surveyed? And now my task was to define the target population,

which will be sampled from the number of people.

Sample Size: - large sample give more reliable result than small sample, so for this reason I had

taken around 40 people to whom I should focus upon, because my target was only 20 clients.

PROPOSAL ANALYSIS
At the end of the project we recommend our prospective and solution to the situation at
hand.

Future policy
While ICICI Prudential has done well to stay at the top, the next seven years will

50
certainly be more difficult than the last seven.

Competition is getting more keen — in the past couple of years, Bajaj Allianz is believed
to have written more policies than Prudential. SBI Life has a stronger distribution now
that it has signed on many more agents and newcomers like Reliance (which took over
AMP Sanmar) are growing at a fast pace. But the strong growth in the industry has
surprised everyone

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Future policy
While ICICI Prudential has done well to stay at the top, the next seven years will
certainly be more difficult than the last seven.

Competition is getting more keen — in the past couple of years, Bajaj Allianz is believed
to have written more policies than Prudential. SBI Life has a stronger distribution now
that it has signed on many more agents and newcomers like Reliance (which took over
AMP Sanmar) are growing at a fast pace. But the strong growth in the industry has
surprised everyone

52
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