PROJECT REPORT ON

MARKET POTENTIAL OF KOTAK MAHINDRA LIFE INSURANCE

FOR KOTAK MAHINDRA LIFE INSURANCE, PUNE
IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION TO PUNE UNIVERSITY
Submitted By NITIN D. KAMBLE
Under The Guidance Of PROF. YUVRAJ LAHOTI
VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE. MBA(2004-2006)
ACKNOWLEDGEMENT
No study is big or small can be undertaken all by oneself.Behind this project to
o is guidance of those individual people to whom I will be always grateful. I ex
press my deep sense of gratitude to Kotak Mahindra Group for giving me the oppor
tunity of doing this project in their well-renowned organization which otherwise
would not have been easy. I am deeply indebted to Mr Nikhil Shah, Sales Executi
ve in Kotak Mahindra Life Insurance who selected me as a trainee to work with hi
m and guided me throughout the project. I am grateful and would like to express
sincere thanks to my guide Proff. Lahoti Yuvraj for their valuable suggestion an
d guidance throughout this project. This tremendously helped me in execution of
the entire Project.
Mr. Nitin Kamble (MBA 2004-2006)
DECLARATION
I undersigned Mr. Nitin Kamble hereby declare that the project report written an
d submitted by me under the guidance of Proff. Lahoti is my original work. The e
mpirical findings and data collected in this report are based on the information
collected by me through fieldwork. I have not copied from any report submitted
to any of the University/ Institution. I understand that any coping is liable to
be punishable by authorities.
Place:Pune Date: Signature
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 C
ompany Profile Research Methodology Data Analysis And Interpretation Findings An
d Suggestions Annexure Conclusion Bibliography
EXECUTIVE SUMMARY
The objective of the project was to be Market research & find out the Market Pot
ential for Kotak Mahindra Life Insurance . For this we have to understand consum
er response, time frame, personality constraints and emotions for assessing the
potential of insurance sector. So specifically the target of the project is to f
ocus of the high network income groups and retailers for their investment portio
n. Project involved a blend of marketing where we were to interact we all kinds
of retailers, wholesalers, real estate agents & other service group to gather in
formation on site and tell them what are the new opportunities that are with Kot
ak 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 fie
ldwork where we supposed to visit all kind of retail outlets as well as non-reta
il 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 Pune
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 for
m the majority portion of the total market. We were given more than one month fo
r the collection of data and scanning of data. This report shows detail work on
following areas Pune Satara road Laxmi road Tilak road J.M. road Bibewadi area M
arket yard
For this purpose Feedback form was prepared which gave a broader picture of the
people about their existence investment segments. The form shows details regardi
ng current savings and planning for their future events. Through this form we go
t to know what people think about private insurance sector and get the idea abou
t different flaws in the insurance sector because it is seen that during intervi
ew few people had a idea about private players in the insurance sector and their
developments. The questionnaire contains various aspects like profession, educa
tion, current savings, number of dependants, address etc. Second part of the stu
dy contains scanning the form/questionnaire making proper evaluation of given in
formation 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 g
ive all the details regarding current savings. For assessing the customer respon
se 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 prima
ry & 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) Rese
arch instrument: Questionnaire is used to collect most of the primary data.
iv) Sample plan: after deciding on the research approach the instruments I decid
ed sampling plan this cause for three decisions. a. Sampling unit: project was c
oncentrated on retailers, whole sellers, real estate agents, service group & oth
ers for the sampling unit b.Sampling size: project consists of 165 respondents f
rom different areas & from different professions. c. Contact method: once a samp
ling plan has been determined, marketing researcher need to decide how the subje
ct should be contacted: mails, telephone, personal visit or online interview. In
my project research it was mostly personal interview and in some cases telephon
ic 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 ar
ise 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 t
horoughly to extract the findings that will be useful to the company. Again this
data must be tabulated and averages/measures are computed from various variable
s. Step 5:Present the findings: And the last step is present the findings that a
re relevant to the objectives.
INTRODUCTION TO TOPIC
Life insurance is a contract between you and a life insurance company, which pro
vides you a predetermined amount in case of your death, accidents or any uncerta
in 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 pur
chased. The primary purpose of life insurance is therefore protection of the fam
ily for uncertain events for future. Life insurance is also seen as a tool to pl
an effectively for the future years, your retirement, education of the children
s and their future needs. Today, market offers insurance plans that not just cov
er you and your family but at the same time it helps to grow your wealth too. Li
fe wasn t designed to be risk free. The key is not to eliminate risk, but to est
imate it Accurately and manage it wisely.
Insurance sector have characteristic that give can boost to the growth of any ec
onomy .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 whil
e the payout is differed, so that the insurance companies are becoming biggest i
nvestors 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 i
n force, the potential of the Indian insurance industry is huge.
FIG.1 PREDICTED GROWTH SCALE OF INDIAN
INSURANCE SECTOR
Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 bil
lion (US$10 billion). According to government sources, the insurance and banking
services contribution to the country's gross domestic product (GDP) is 7% out o
f which the gross premium collection forms a significant part. The life Insuranc
e industry in India grew by an impressive 36%, with premium income from new busi
ness at Rs. 253.43 billion during the fiscal year 2004-2005, braving stiff compe
tition from private insurers. RNCOS s report, Indian Insurance Industry: New Ave
nues for Growth 2012 , finds that the market share of the state behemoth, LIC, h
as 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 it
s market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2
004-05 from Rs. 24.29 billion in 2003-04.
Introduction to the topic The report discusses the work done by trainee Mr. Kamb
le Nitin student of Vishwakarma institute of management. The purpose of training
was to have practical
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 pur
pose of the project was basically to find the market potential for kotak mahindr
a 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 col
lect 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 compan
y. The survey also helped to provide details regarding various opportunities and
different plans and policies that are coming up in the company. This was useful
information for them to get the benefits and to know future growth prospects if
they join with the company. Importance of the topic The topic gives broader pic
ture 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 insura
nce companies in the Indian market & what is the present position of kotak mahin
dra life insurance could be determined by market research and fieldwork. This da
ta 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.
SCOPE AND LIMITATIONS
Scope of the study The study of potential of insurance business is concerned wit
h 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 wil
l help the company to assess their performance and improve it where it is lackin
g. 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 ob
jectives. The entire study programmed was for the period of two months. The subj
ect of the study was selected by looking the necessity and importance to find th
e market potential and give suggestions related to the topic.
Limitations: One of the major limitations of this study was lack of sufficient t
ime as the subject was required lot of time. The time limit permitted to cover t
he major areas of Pune but not all the regions of the city. The study limits its
elf only to Kotak Mahindra Life Insurance.
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 R
s.15000 crore has been invested in the sector by major and their foreign partner
s. 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 combine
d loss of almost Rs 1000 crore in 2003-04.Things haven t changed much since. Baj
aj Allianz Life Insurance, the second largest private sector life insurer, poste
d 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 perio
d. Birla Sun Life Insurance, which claims to be among the most efficient users o
f 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,Indi
as 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 ini
tial 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 growt
h-in terms of penetration. Life insurance premium to GDP has grown from 1.8 perc
ent to 2.3 percent while the per capita premium paid has more doubled from Rs. 2
80 to Rs. 600. However, there is one big reason for alarm. Insurers do need acce
ss to substantial capital in order to keep up this growth despite their initial
losses. But many private sector
insurers are struggling to raise the required capital. That s because the govern
ment has not yet raised the ceiling for Foreign Direct Investment (FDI) in insur
ance companies from 26 % of equity to 49 % as outlin3d by the previous governmen
t. And because of 26 % FDI cap, the burden of funding the growth falls on the In
dian promoter. The need for capital is even more crucial in the context of the (
IRDA) Insurance Regulatory and Development Authority regulation on solvency marg
ins. 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 SE
CTOR: Indian market can be labeled as a untapped market, which in it s core hold
s 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 c
ompetencies and innovative products and processes .As The purchasing power of In
dian people is increasing, so we can predict that the no. of customers who can a
fford to investment in health, life, disabilityand pension products is going to
increase up to great level. According to SWISS Re Economic Research and Consulti
ng.
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
AREAS OF OPPORTUNITIES 1) New Horizons of investment Insurance companies have sh
own an unquenchable thirst to offer customized solutions Based on individual ris
k appetite of customers rather than mundane, one size fits all endowenment. Base
d 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 Insu
rance products are similar to investment product with less or risk coverage, sig
nifying 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 ou
t performing equity returns in certain instances. We can have the same plans fro
m other private players like Bajaj-Allianze i.e. equity plan funds, ICICI Pruden
tial maximizer, HDFC standard life growth fund. Total premium under return for u
nit-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 lar
ge number of Indians lives in rural India, so this market should be tabbed by in
surance companies and it require a different approach of sales services with res
pect to meeting such challenges as low awareness, irregular incomes and geograph
ical distances. The focus has to be on simple coverage and return of premiums. V
ery few companies have plans for rural India. 3) Customized Solutions Competitiv
e insurance market exploring the new customer segments, it includes pension plan
s 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 p
lan. Special children plans are the current requirements, as the education is be
coming more important and expensive. So such plans must be introduced by all ins
urance companies. ICICI Prudential and LIC have already done this.
II. WHAT IS NEEDED TO BE EXPLORERED? 1) The industry in general faces the challe
nge of building the credibility of being a financial service provider while meet
ing 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 th
row a broad range of inherently risky services and investment options. In the in
surance sector, branding has typically involved the concept of stability; trust
and protection from risks in time of crises, or even protecting from a crises th
row a standard set of products. It will help to establish what insurers stand fo
r 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 h
as been one aspect of the challenge. The other more complex one has entailed des
igning the products, marketing them, ensuring the smooth selling of products, co
llecting 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 genera
te awareness about the insurance products among the target market.
4) Branding the marketplace is similar to branding on a cattle ranch, the purpos
e of a branding program to differentiate our cow from the cattle of range. Accor
ding to an article in the insurance marketing magazine, Feb-March 2002, brand st
rategy is one of the most critical parts of the underlying business strategy of
any organization. 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
sell Risk-Free products design to help customers insure that their family and as
sets 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. Th
e financial consequences of an increased life span are particularly likely to be
tough. Inevitably, this will lead to more complexity, which in turn necessitate
s greater clarity and appeal from the service providers. Branding is more releva
nt in the financial services market, which not only faces the problem of securin
g and retaining customers in an increasingly competitive marketplace but also ex
periences the need for heightened relevance of the brand proposition in a world
where brand has been termed the new religion.
QUICK FACTS: Second largest mobilizer of savings after banks. Constitutes 15 % o
f gross domestic savings after banks. Rs 400,000 crore of assets under managemen
t. Rs 40,000 crore invested in infer-structure Share of retail customers to tota
l-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 re
gulate the life insurance business. 1928: The Indian Insurance Companies Act ena
cted to enable the government to collect statistical information about both life
and non-life insurance business. 1938: Earlier legislation consolidated and ame
nded to by the Insurance Act with the objective of protecting the interests of t
he insuring public. 1956: 245 Indian and foreign insurers and provident societie
s 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.
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 gro
wn from 1.8 percent to 2.3 percent while the per capita premium paid has more th
an 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 sin
ce nationalization in 1956,the life insurance industry had been protected from c
ompetitive pressures. Now with the re-opening of the sector, several new players
have entered the scene. Besides, Kotak Mahindra Life Insurance there are 12 oth
er private players working in insurance sector which are as follows. 1.AMP Sanma
r 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 BAJA
J 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.
Indian Promoter- HDFC Foreign Insurer Standard Life, UK
6.ICICI Prudential Life Insurance Indian Promoter Foreign Insurer ICICI Bank Pru
dential, 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 For
eign 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 I
nsurer TATA Group AIG, US SBI CARDIFF, France SAHARA INDIA Ltd. NONE
COMPANY PROFILE
THE KOTAK MAHINDRA GROUP Kotak Mahindra is one of India s leading financial inst
itutions, offering complete financial solutions that encompass every sphere of l
ife. Form commercial banking of stock broking, to mutual funds, to life insuranc
e, 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 ove
r 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 bas
e of over 5,00,000. Kotak Mahindra has international partnerships with Goldman S
achs (one of the world s largest investment banks and brokerage firms) and Old M
utual (a large insurance, banking and asset management conglomerate).
Mr. Uday Kotak Mr. Shivaji Dam Mr. C. Jayaram Mr. Dipak Gupta
Executive Vice Chairman & Managing Director
OUR MANAGEMENT FOR LIFE INSURANCE Mr. Gaurang Shah (Managing Director) Mr. G Mur
lidhar (Chief Financial Officer) Mr. Nandip Vaidya (Vice President - Sales) Mr.
Arun Patil (Vice President - Sales & Management Development) Mr. Eksteen de Waal
(Head Sales Training)
OUR STORY
The Kotak Mahindra group was born in 185 as Kotak Capital Management Finance Lim
ited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this company. In
dustrialists 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 1
990 1992 Kotak Mahindra Finance Limited starts the activity of Bill Discouting.
Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market. The Au
to Finance division is started. The Investment Banking Division is started. Take
s over FICOM, one of India s financial retail marketing networks. Enters the Fun
ds Syndication sector. Brokerage and distribution business incorporated into a s
eparate company Kotak Securities. Investment banking division incorporated into
a separate company - Kotak Mahindra Capital Company. The Auto Finance Business i
s hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahin
dra takes significant stake in Ford Credit Kotak Mahindra Limited, for financing
Ford vehicles. The launch of Matrix Information Services Limited marks the Grou
p s entry into information distribution. Enters the mutual fund market with the
launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with O
ld Mutual plc. for the Life Insurance Business. Kotak Securities launches kotaks
treet.com it s on-line broking site. Formal
1992 1995
1996
1998
2000
commencement of private equity activity through setting up of Kotak Mahindra Ven
ture Capital Fund. 2001 2003 Matrix sold to Friday Corporation Launches Insuranc
e Services. Kotak Mahindra Finance Limited converts to bank.
KOTAK MAHINDRA A Lifetime of Value
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 mana
gement. The old mutual Group offers a diverse range of financial services geogra
phics : South Africa, the United States and United Kingdom. The company is liste
d 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 F
ortune magazine, Old mutual climbed 87 places to position number 366 and was als
o listed 14th company in the world. Old Mutual is the largest financial services
business in South Africa, through its life insurance, asset management, and ins
urance 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 th
e top ten fixed annuity business offering an array of specialist asset managemen
t. The company s US Life business recorded sales of $4 billion at the end of 200
2. Operations in the United Kingdom are focused on wealth management, through Ge
rrard as one the leading private business in the UK. The Old Mutual Group has th
e ability to cater for variety of consumer segments and offers a comprehensive a
nd in products for all income groups.
Products: Individual Kotak Term Plan Kotak Preferred Term Plan Kotak Money Back
Plan Kotak Child Advantage Plan Kotak Endowment Plan Kotak Capital Multiplier Pl
an 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 Riders Exclusions Under Riders Group Employee Benefits Kotak Term Pl
an Kotak Credit-Term Grouplan Kotak Complete Cover GroupPlan Kotak Gratuty Group
lan Kotak Superannuation Grouplan Rural Kotak Gramin Bima Yoj.
RESEARCH METHODOLOGY
INTRODUCTION: Marketing Research is an systematic and objective study of the pro
blems pertaining to the marketing of the goods and services. It may be emphasize
d 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 r
etailers, whole sellers, real estate agents, stockiest and few other segment of
market. The maximum 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 informat
ion 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 Indico
m) References from company employees Annual Reports / Company Periodicals
QUESTIONNAIRE METHOD This method is used to collect general information about th
e company like total number of employees viz. agents, sales executive, managemen
t trainees, front line staff etc. Sales executive provided this information. Thi
s information helped to know the basic knowledge about the company before doing
the actual research. RESEARCH DESIGN: SAMPLING UNITS: This combines all those re
spondents in the market who can be the future prospects of being a part as an in
surer of Kotak Mahindra Life Insurance. Some of them are retailers, whole seller
s, real estate agents, stockiest and few others from different commercial areas
of PUNE. As instructed by the company- following are the few segments. 1.Busines
s- Class 2.Agents General Insurance Agents Postal Agents Travel Agents Real Esta
te Agents Professor / Teachers Office Staff, Banks Staff Government Employees
3.Service Class
4. Mutual Fund Agents 5.Tax Consultants 6. Investment Consultants 7. Share Broke
rs 8. Financial Advisors 9. Chartered Accountants / Company Secretaries 10. Othe
rs- House wife , Medical Representatives
STEP 2 Out of these various segments, the researcher targeted following - Retail
ers - Whole sellers - Stockiest - Real Estate Agents - Others Note: It was instr
ucted by the company to target the people having net income between 15000 and ab
ove. The required data for above segments is to be such, which is helpful to kno
w 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 e
xpenses Existing Investment Avenues
SAMPLE DESIGN Sample size (165 people)
Retailers (60)
Whole Sellers(43)
Real Estate Agents (16)
Stockiest (16)
Others (30)
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 b
ecoming Kotak Mahindra Life Insurance clients from different areas of PUNE. In t
otal 165 questionnaires were completed who were the samples for research work. S
AMPLE 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 condu
cted from respondents across segments, above 18 years of age and as per their co
nvenience. So as to contrive representative sample. The interview and presentati
on mode by researcher were carried for the duration of 20 minutes.
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 5 7 Daily Collection 15 TOTAL 165
Respondents Investments
Insurance 75 20 20 15 5 8 22 Fixed Deposit Post PPF Mutual Fund Shares Daily Col
lection
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 indiv
idual but for the entire family. Thus, people find insurance safe and better opt
ion rather than investing in FD, Post, Mutual Funds, Shares etc.
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 l
ife. But for everyone the need for life insurance has different reasons.18 perce
nt of the people think other options are better than life insurance. Following f
actors 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.
3.Awareness about the Insurance Companies.
Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max N
ew York Life HDFC Aviva Total
No. Of respondents 115 65 95 75 35 105 60 550
Awareness about Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allian
z 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 L
ife 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 In
surance companies do effective advertising that made them known brands in the ma
rket
4. Reliable companies among the respondents.
Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max N
ew York Life HDFC Aviva Total
Respondents 75 20 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 d
etermine why these two companies are preferred and believed by the people.
Factors determining reliability Brand Name Safety Peer pressure ROI Previous exp
erience Total
Response 45 40 55 70 45 255
Reliability Factors Brand Name 18% 26% 18% Peer pressure 22% 16% ROI Previous ex
perience 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 press
ure among
5. Present Insurance holders
Yes No Total
145 20 165
Insurance holders
200 100
respondent s
Series1
0 Series1
Yes 145
No 20
Insurance Companies LIC ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG M
ax New York Life HDFC SBI Total
Market Share 85 20 15 10 8 17 5 5 80
Market Share of each company
3% 3% 10%
LIC ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDF
C
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 A
llianz and HDFCareleaders
6. Total Savings for Life Insurance.
Savings (Rs) 5000-10000 10000-20000 20000-40000 >40000 Total
Respondents 47 75 31 12 165
Savings
Savings In Rupees 80 60 40 20 0 500010000 1000020000 2000040000 >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 ins
urance.
7.Benefits from Life Insurance Policy.
Benefits Child Education Personal Goals Marriage Retirement Savings Total
Responses Of Clients 35 90 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 usua
lly invest in insurance. The same response was found during the research work. I
t is good sign for the insurance business, as people perceive insurance for achi
eving the different goals in the life.
8. Awareness about Kotak Life Insurance.
Awareness Yes No Total
Response 70 95 165
Brand Aw areness
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 In
surance. This shows that there is lack of awareness in the market, which need to
be taken care trough advertising.
9.Awareness about different plans of Kotak Life Insurance.
Kotak Plans Awareness Yes No Total
Response 20 145 165
Awareness of Kotak Plans
200 Respondenes 150 100 50 0 Yes No Response
As there in lack of awareness, maximum respondents don t know about the plans an
d policies of Kotak Mahindra.This Company needs to promote their different plans
through effective advertising to make people known.
10.Future prospects for Kotak.
Interested Prospects Yes No Cant Say Total
Response 25 75 65 165
Response For Kotak
Cant Say 39%
Yes 15%
Yes No Cant Say
No 46%
15 percent of the total respondents said they are interested to buy the policy f
rom Kotak Mahindra Life Insurance. Out of the remaining respondents 46 percent d
idn t show any interest in Kotak and others were not sure whether to buy the pol
icy from Kotak or not.
OBSERVATION AND FINDINGS
OSERVATION: The researcher has taken interview of given various segments as Reta
ilers, Whole sellers, Real-Estate Agents, Stockiest and others and came to know
the facts as follows. RETAILERS: Belief: Retailers contribute to the major porti
on 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 r
elated work. Facts: Though some beliefs are found correct but observation show o
ther side of the curtain i.e. - They were quite generous when they knew that the
y were getting some information. - They spare good amount of time if one present
ed the company and himself properly. - Retailers give sufficient information if
they believe in the work. WHOLE SELLERS Belief : Whole sellers are believed to b
e 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 some information. - They provide sufficie
nt information if they contacted when they have free time.
- Most of them were not really comfortable to give any sort of personal and fina
ncial information. - These people runs huge business so these are highly potenti
al prospects for any business. REAL ESTATE AGENTS Belief: These people are not s
o busy as they have selective and limited no. of customers. But many of these ag
ents 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: - Appoin
tments need to be taken before visiting to their places. - These agents have ver
y good contacts, which means good customer base. So they give bigger and better
clients for insurance business. STOKISTS/COMPANY OUTLETS Belief: These are belie
ved as high-class people and usually prefer to talk with senior executives of an
y company. Facts: - These people should be given a call before visiting their pl
ace, as they don t appreciate direct visits by any people. - Good presentation i
s required to make them talk for a while. - A highly potential customer if one m
akes them believe in company by providing detail information regarding company i
ts present and future growth. OTHERS These include house-wife, pensioners etc.
Belief: They are supposed to have sufficient time and believed as the working pe
rsons at home normally influence these people. Facts: - Most of the hose-wife we
re shy to talk with strangers. - These people are dependent for their decisions.
- Not a very good prospect for insurance business.
FINDINGS:
A): BRAND Knowledge 1. It is found during research that 58 percent were lacking
any sort of knowledge 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 betwe
en Rs 5000 to Rs 10000.Thus it shows as everyone has some part of savings in ins
urance, which is good sign for insurance sector. 3. Majority i.e. 53% respondent
s have their personal goals and retirement plans as prime concern for buying ins
urance. 4. Out of 165 samples, 145 respondents i.e. around 88 % of them have ins
urance 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 trus
t for insurance providers, among private sectors its ICICI Prudential, HDFC Stan
dard Life, Bajaj Allainz are among market leaders. 3. 4. Still 82 percent of sam
ples think insurance is essential for various reasons. Many respondents found sa
ying HDFC and ICICI as being more reliable insurance providers in terms of retur
ns, peer pressure, previous experience than their competitors.
SUGGESTIONS
1.
More visibility through advertising Media Advertising T.V Channels, Radio Statio
ns, 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 f
orms of advertising could be effectively used to create brand awareness for Kota
k Mahindra Life Insurance. 2. They need to concentrate on service factor by hiri
ng or recruiting professional people for effective presentation and communicatio
n 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 Ambassado
r/Ambassadress from Cricket or Film industry as people from these two fields inf
luence many people in the society. This would promote the company not only withi
n India but also at global standards. This might create strong awareness and giv
e 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 trainin
g who could turn out as future employees of the company. 6. Good amount of incen
tives and basic salaries should be given to the employees to make them perform b
etter. 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.
8. Feedback should be taken from the present clients to know whether they are sa
tisfied 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 sc
hemes like Lucky Draws, Trip to foreign countries; Attractive prizes could be us
ed for promotion. 10. Should develop the plans that are attractive. Also they sh
ould develop new plans that are not launched by any other companies to take firs
t launcher advantage.
ANNEXURE
1.Personal detail: Name: Age(Yrs): Phoen No. E-mail Gender: Office Address Resid
ential 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.Saf
ety/Security 3.Savings 2.Long term investment 4.Tax saving b) No
4.Which of the following companies are you aware as insurance provider?
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.ICIC
I Prudential 3.BAJAJ Allainz 4.Max New York Life 6.AVIVA Life Insurance 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 N
ew York Life 6.AVIVA Life Insurance 2.Kotak Mahindra Life Insurance 4.Tata AIG 5
.HDFC Standard Life Insurance 8.SBI 2.No 2.Safety 4.ROI 2.Kotak Mahindra Life In
surance 4.Tata AIG 5.HDFC Standard Life Insurance
7.Approximately how much money you invest in Life Insurance from your total savi
ngs? 1.Rs5000-Rs10000 3.Rs20000-Rs40000 2.Rs10000-Rs20000 4.Rs > 40000
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 in
terested to buy any policy from Kotak Mahindra Life Insurance? 1. Yes 2. No 3. C
ant Say
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 co
mpanies 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 s
ervice. They should promote their products throughout the country and target spe
cific 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.
BIBLIOGRAPHY
Company websites:
www.kotak.com www.kotaklifeinsurance.com
Research Methodology:
C.R. Kothari
Marketing Management: Rajan Saxena
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