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CHAPTER-1 INTRODUCTION
1.1 INTRODUCTION TO THE COMPANY Bajaj Allianz Life Insurance Company was established in 2001 with a commitment to expand and reshape the life insurance industry in India. Bajaj Allianz is the first life insurance company of India which is in profit & the profit is 63 crs. for 200607. The company’s wide range of products, distribution strengths and powerful brand has driven its growth across a cross-section of people and cities. By 2007, the company across t he 10, 00,000 policy milestone with a premium income of INR 3134 cr. And a total sum assured in excess of 74 billion today, the company has established itself as the No. 1 private life insurer in the country. 1.2 VISION The fine Vision and Values make Bajaj Allianz, a leading Life and Pensions player at the Indian Life Insurance Industry. Bajaj Allianz realize that customer seek an insurer they can trust their hard earned money with. Let’s see, how?  Ensuring world class solutions by offering customized products with transparent benefits supported by the best technology.  Developing and Implementing superior risk management and investment strategies to offer sustainable and stable returns to the policyholders.  Investing the premium earned strategically and with a well developed planning, in various investment alternatives for providing higher security and better returns to the customers.

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 Proving an enabling environment to foster growth and learning for our employees.  World class transparency in our dealings. Each of our values describes what the company stands for, the qualities of our people and the way we work.
1.3 PARTNERS

Bajaj Auto and Allianz AG came together in 2001 to from Allianz Bajaj Asset Management Company, which has today emerged as the leading mutual fund in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to YOU. Bajaj Auto has 74% stake in company, and Allianz AG has 26%.
1.4 Bajaj Auto

 One of the largest 2 & 3 wheeler manufacturer in the world  21 million+ vehicles on the roads across the globe  Managing funds of over Rs 5,329 cr.  Bajaj Auto finance one of the largest auto finance cos. in India
 Rs. 6,340 Cr. Turnover & Profits after tax of 767 Cr. in 2004-05

1.5 Allianz AG  Worlds Largest Insurance co. by revenue – Rs 5,20,353 Cr. (Euro 96.9 billion)  Worldwide 2nd by Gross Written Premiums – Rs 4,77,930 Cr. (Euro 89 billion)

 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. AUM of Rs 95,94,200 Cr (Euro 1078 billion)

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 11th largest corporation in the world

 50 % of global business from Life Insurance, close to 60 million lives insured globally  Established in 1890, 110 yrs of Insurance expertise
 More than 70 countries, 173,750 employees worldwide

 Insurance to almost half of the Fortune 500 cos.
1.6

Bajaj Allianz Life Insurance Company Bajaj Allianz Life Insurance Company is a joint venture of between Bajaj Auto; a

one of the largest 2 & 3 wheeler manufacturer in the world, Allianz AG is world largest Insurance Company by revenue based at Germany. Bajaj Allianz Life Insurance Company world for 2001-02 after receiving approval from Insurance Regulatory Development Authority (IRDA). Bajaj Allianz equity base stands at Rs. 3.75 billion with Bajaj Auto and Allianz AG holding 74% and 26% stake respectively. Bajaj Allianz Life Insurance Company
 No.1 Pvt Life Insurer FY 2006-07. Leading by Rs. 63 Cr (US $ 15.3mn).

 No.1 Pvt Life Insurer in Retail Business. Leading by Rs. 339 Cr.
 Whopping growth of 216% for the FY 2005-06.  Have sold over 34, 72,875 (3.4 million) policies to till date.  Is backed by a network of 700 offices spanning the country.  Largest distribution network to reach the customers across the country with 2, 13,

000 agents, 900 Offices in 840 towns, 200 corporate agents & Banc assurance partners.

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 Accelerated Growth-

Fiscal Year 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007

No of policies Sold in FY 21,376 1, 15,965 1, 86,443 2, 88, 189 7, 81,685 20, 79,217

GWP in FY Rs. Rs. 7cr.(6mths) 69 cr.

Rs. 180 cr. Rs. 857 cr. Rs. 2717 cr. Rs. 4270 cr.

 Assets under management Rs 5,500cr.  Shareholder capital base of Rs 700 cr.

 Product tailored to suit your needs  Decentralised organisation structure for faster response
 Wide reach to serve you better – a nationwide network of 900 + branches

 Specialised departments for Banc assurance, Corporate Agency and Group Business  Well networked Customer Care Centres (CCCs) with state of art IT systems  Highest standard of customer service & simplified claims process in the industry  Website to provide all assistance and information on products and services, online buying and online renewals.
 Toll-free number to answer all your queries, accessible from anywhere in the

country – Call Now 1800 233 7272 and a strong tele-marketing and Direct marketing team  Swift and easy claim settlement process
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Bajaj Allianz is the first life insurance company of India which is in profit & the profit is 82 crs. for 2008-09. Distribution Bajaj Allianz Life Insurance Company has one of the largest distribution network amongst private life insurer in India, having commenced operations in large No. of cities and towns in India. The company has the largest number of banc assurance tie-ups, with large national & Pvt. Sector banks: – Standard Chartered Bank – Syndicate Bank – Jankalyan Sahakari Bank – Jijamata Sahakari Co-operative Bank – Tie-ups with 7 RRBs and 35 DCBs It has also tied up with large Regional Banks. Bajaj Allianz Life Insurance Company has recruited and trained over 2 Lacks insurance agents to interface with and advice customers, and has the highest number amongst private life insurers on the renowned Million Dollar Round Table (MDRT). Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers. 1.7 Indian insurance industry - introduction India is a largest democracy in the world having a population more than one billion. It is 5th largest in the world in term of purchasing power parity (PPP). India GDP growth Rate is over 6% per year on average for the last decade and saving rate is around 26% of GDP. Through India’s economy development, it becomes the most lucrative insurance Markets in the world. Before the year 1999 there were monopoly of state run Life Insurance Corporation of India (LIC) in life insurance sector and General Insurance

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Corporation of India (GIC) with its four subsidiaries in general sector. In the wake of reform process and passing Insurance Regulatory Development Act (IRDA) through Indian Parliament in 1999, Indian Insurance was opened for private Companies. 1.8 About the Insurance Insurance is contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party happening of a certain event. Insurance is a protection against a financial loss arising on the happening of an unexpected event. Insurance Companies collect premium to provide for this protection. A loss is paid out of this premium collected from the insuring public. The Insurance Company act as a trustee to the amount collected through premium. Insurance is generally classified in three categories, (1) Life Insurance (2) Health Insurance (3) General Insurance. To get insurance as individual or an organization can approach to Insurance Company directly, through Insurance agent of the concerned company or through Intermediaries.
1.9

Benefits of Insurance Insurance is the instrument of security, saving and peace of mind. It provides

several benefits by paying a small amount of premium to an insurance company as: (1) Safeguards oneself and one’s family for future requirement. (2) Peace of mind in case of financial loss. (3) Encourage saving. (4) Tax rebate. (5) Protection from the claim made by creditors. (6) Security against a personal loan, housing loan or other types of loan. (7) Provide protection cover to industries, agriculture, women and child.

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1.10 Insurance Regulatory Authority:On the recommendation of Malhotra Committee, an Insurance Regulatory Development Act (IRDA) passed by Indian Parliament in 1993. Its main aim is to activate an insurance regulatory apparatus essential for proper monitoring and control of the insurance industry. Due to this Act several Indian private companies have entered into the insurance market, and some companies have joined with foreign partners. In this economy reform process the Insurance Companies will boost the socioeconomic development process. The huge amount of funds that will be at the disposal of Insurance Companies will be directed as desired avenues like housing, safe drinking water, electricity, primary education and infrastructure. The growth of the debt market will also get a boost. Above all the policyholder will get better pricing of products from competitive insurance companies. Life Insurance is universally acknowledged to be an institution which eliminates “risk” and provides the timely aid to the family in the unfortunate event of death of the breadwinner. Life Insurance is a contract for payment of a sum of money to the person assured (or nominee) on the happening of the event insured against. The contract provides for the payment of an amount on the date of maturity or at specified dates at periodic intervals or at unfortunate death, if it occurs earlier. There are some benefits of Life Insurance as: Protection: Life Insurance guarantees full protection against risk of death of the assured. In case of death, full sum assured is payable. Long term saving: Life Insurance encourage long term saving by paying a small premium in easy installment for a long period a handsome saving can be achieved. Liquidity: Lone can be obtained against a policy assured whenever required.

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Tax Profit: Tax relief in income tax and wealth tax availed on the premium paid for Life Insurance.

By the year 1956, 154 Indian Insurance, 16 Non- Indian Insurance and 75 provident societies were carrying on Life Insurance business in India. On 1 st September 1956 all the Insurance Companies were nationalized. On September 1956, LIC Act was passed by Indian Parliament and the state run Life Insurance sector. In the year 1999, the Insurance Regulatory Development Act (IRDA) was passed in Indian Parliament. By this act a door was open for private companies with foreign equity Life Insurance. By this act an Indian promoter can invest either wholly in insurance venture or team up with a foreign insurer, with a cap of 26% of equity for a foreign partner. 1.11 History Life Insurance in its present from came to India from the United Kingdom with the establishment of a British firm Oriented Life Insurance Company in Calcutta in 1818 followed by Bombay Life Assurance Company 1823. The Life Assurance Companies Act. 1912 was the first statutory measure to regulate life insurance business. In the 1938, earlier legislation was consolidated and amended by the Insurance Act 1938, with comprehensive provision aimed at exercising effective control over the activities of insurers. The main concern was to protect the interests of the insuring public. The Act was amended in 1950 resulting in far-reaching changes in the insurance sector. By 1956, 154 Indian insurance, 16 foreign insurance and 75 provident societies were carrying on life insurance business in the country. In January 1956, in keeping with the then prevailing political and economical philosophy of socialism, 245 Indian and foreign insurers and

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Provident societies operating in Indian were taken over by the Central Government by an Act of Parliament, the Life Insurance Corporation Act 1956. The LIC with a capital of Rs. 5 corers was set up September that year.

1.12

Privatization As part of the wide-ranging economic reform initiated in 1991, the structure of the

Insurance sector was examined by a committee headed by Mr. R. N. Malhotra. The committee’s recommendation to open up the sector to private sector participation was implemented by the Government in 2000. The key element in the reform process was the participation of overseas insurance companies, through restricted to 26% of the capital. With the Insurance Regulatory and Development Authority Act, 1999 (IRDA) formally coming into force, the insurance industry was opened up for private sector participation. The main objective of setting up the IRDA was to protect the interest of policy holders and to regulate, promote and ensured orderly development of the insurance industry. Over four decades the industry has been a State monopoly. Till date the LIC has insured over 120 million individual and has a vast sales network of over 7 lakh insurance agents. The industry is witnessing an upsurge in consumer awareness, building immense and unavoidable pressure among the players. Within the short time since the opening up several insurance companies have been licensed by the IRDA. Indian is a market of mainly small policies. The average annual life premium is less than the equivalent of $ 100 Indian is also marketed by a very low insurance penetration rate. Although no authentic statistics is available, a rough estimate is that only 20% of the insurable population is insured.

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1.13

Distribution Modes  Most new entrants are targeting the Indian middle class segment estimate at over 250 million persons.  High focus on direct selling-the preferred route is the agency network. The agency channel constitutes 90-95% of the market.  Alliance with banks: Insurance is using branch network s to sell insurance products. This enable insurance to leverage on low distribution costs by using existing network. Insurers are also targeting bank employees as per prospective customers and agent to market products.  Non-bank alliances: These are tie ups with non-governmental organizations (NGOs) mainly to tap the rural market. This would be enable insurers to ensure IRDA compliance with respect to rural coverage.  Retail financial service distribution: This involves the tie ups with NBFCs to act as corporate agent, and also enable insurers to cross sell with other financial services. With the entry of private insurers, the market is already seeing a wide array of

products. Insurers today are not merely looking at offering the basic life insurance solution, but offering products with a combination of benefits (riders) which could be bundled/customized to suit an individual’s need. Insurance is also being promoted as a sound long-terms investment option. In terms of returns insurance products today offer a competitive 7-9 percent. Besides return when really increases the appeal of insurance is the benefit of life

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protection from insurance products along with health cover benefits. The tax benefits are also attractive. While the plain individual insurance (whole life, term etc) will remain popular, sale of new products such as single premium, unit-linked, retirement products, money back and annuity are set to rise. With Parliament passing the Insurance Amendment Bill, non-profit products are likely to become increasingly prevalent.
The table below shows the first year premium income of some of the private insurers fully operational in the year 2006-07.

Insurance as on date COMPANY Allianz Bajaj Life Birla Sun Life Bharti Axa Dabur CGU HDFC Standard Life ICICI Prudential Life ING Vysya Life Max New York life Met Life India OM Kotek Mahindra Reliance SBI Life TATA-AIG Life FOREIGN SHAREHOLDERS Allianz Sun Life of Canada Axa CGNU Standard Life Prudential (UK) ING New York Life Met Life Old Mutual AMP Cardiff AIG MAJOR LOCAL SHAREHOLDERS Bajaj auto Birla Global Finance Bharti Dabur HDFC ICICI Vysya Bank BUSINESS OF LOCAL HAREHOLDERS Auto Manufacture Diversified Conglomerate Medical &Consumer Telecommunication Products Investment & Finance Investment & Finance

Bank & Other investors Max India Diversified Conglomerate Jammu &Kashmir Bank &Diversified Bang,Pallonji Group Conglomerate Kotek Mahindra Investment & Finance Reliance SBI TATA Investment, Technology & Chemical Bank Diversified Conglomerate

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Tab.1.1 New entrants will constantly explore avenues to increase the number of distribution channels through a variety of distribution patterns, given the customer profile.

1.14

Rural and social insurance As per the IRDA regulation, all insurers have an obligation to fulfill in the rural

and social sector. This obligation is expressed as a percentage of total policy sales in the rural sector and number of lives insured in the socially weaker section of society to the total. The rural obligations are to sell specific percentages of policies to the ‘rural sector’ 5% in 1st year, 7.5% in 2nd year and up to 15% in 5th year. In social sector, insurers are required to insure a specific of lives 5000 in 1st year, 7500 in 2nd year and up to 20000 lives in 5th year and beyond. In these areas, local partnership established by private players matter. Some of them have roped in the village or panchayat heads to comply with the rural obligation. Some private insurers have tide up with non government organization (NGOs) to satisfy the social obligation. It is expected that these rigorous requirement will help increase insurance penetration and provided the much need insurance protection to the segments that constitute a large percentage of the population. In short, it is expected that insurance will gradually cease to be more urban phenomenon. 1.15 Customer service In this competitive scenario, a key difference in gaining a winning edge is the customer service provided by the insurers, be it, in terms of quality of advice given by the distribution channels (advisors, bank) or policy processing to settlement of claims.

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For the first time in four decades the customer is really the focus and companies are varying with one another to perform to very transparent and tight benchmarks of service. It is significant that the IRDA has brought out regulation that prescribes service standards and parameters. These policyholder Protection Regulations are comprehensive; they ensure transparency and accuracy, fix responsibility on insurance companies for several areas involving customer service etc. This piece of legislation is seen as a landmark in India. 1.16 Role of technology In the present competitive environment technology will play a definite role in achieving a competitive edge. Technology will play an increasing role in aiding design and administering of insurance products, as well as building and maintaining long term customer relationship. 1.17 Future opportunities Opening up of the pension’s sector: Considerable discussion has taken place on this subject, only 11% of the working population is protected by some form of retirement benefits. It is learnt that a detailed proposal is before the government to open up the pension sector. Providing coverage through a national pension scheme is challenging; but it is necessary, particular for the non-salaried or self employed workforce and those engaged in agriculture. The life insurance industry has come alive, awareness has increased and it is being expected that the market will grow fast. In five years one will be looking at an annual premium income of Rs.1, 00,000 crores in the life insurance sector. Life Insurance will, at long fast attain its rightful place in the economy.

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Chapter – 2 Conceptual Frame Work
2.1 Overview of the Advertisement:Advertisement, which is a crux of any economy, plays a pivotal role in the economic progress of a nation. Advertising is indeed the only direct method, which helps to reach masses of potential buyers. Advertising being dynamic, changes with changing method of distribution & consumption. Advertisement has become the part of life for everyone as a listener through some media or other. In the present era of information explosion & media influence, these advertisements play a major role in changing the settled perception or thinking, which is otherwise called attitude, of the consumer & also the communication pattern of the society in general. Thus, the impact leads to cultural & social changes to a great extent. Under this situation, efficacy of the manufacturers, marketers & advertisers is tested in churning out advertisements, matching the expectation of the consumers, which may gradually bring about desired attitudinal changes in them. 2.2 Defining Advertisement:The term advertisement originates from the Latin word "adverto" that means "to turn around". The dictionary meaning of the word is "to announce publicly" or "to give

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public notice ". In other words it may be interpreted as to turn the attention of the people concerned to a specific thing which has been announced by the advertiser publicly in order to inform & influence them with the ideas which the advertiser carries. Albert Lasker, considered as the father of modern advertising, defined advertising in the beginning of 20th century as "salesmanship in print, driven by reason why”. This definition evolved when TV & Radio were not invented. According to American Marketing Association, “Advertisement is any paid form of non-personal presentation & promotion of ideas, goods & services by an identified sponsor".

2.3 Five Ms of Advertisement:In developing an advertisement program a marketing manager must always start by identifying the target market & buying motives, then they can proceed to make the five major decisions in developing an advertisement program, known as five Ms of advertisingMission: - What are the advertising objectives ? Money: - How much can be spent ? Message: - What message should be sent ? Media :- What media should be used ? Measurement:- How the results should be evaluate?

Money

Message -Message generation -Message evaluation & Selection -Message execution

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Mission sales goals Advertising Objectives

Factors to consider -Stages in PLC - Market share & Consumer base -competition & Clutter -Advertising frequency -Product substitutability

-Social responsibility Review Media -Reach, frequency, impact -Major media types -Specific media vehicle -Media timing -Geographical media allocation

Measurement -Communication Impact

Fig : 2.1 Five M’s of Advertisement

2.4 Objectives of Advertisements:1. Informative: It aims to create awareness & knowledge of new product or new features of existing products. 2. Persuasive: It aims to create liking, preference, conviction& purchase of existing product & service. 3. Reminder: It aims to stimulate repeat purchase of products & service. 4. Reinforcement: It aims to convince current purchasers that they made the right choice.

2.5 Need for Advertisement:Advertisement plays a major role in every walk of life. The divergent section of society may need advertisement for a variety of reasons from information sharing to consumer persuasion to decision making. The paramount reasons, which may necessitate the use of advertisement, may be: 1. Advertising is a way of communicating information to the consumer, which enables him or her to compare & choose from the products & service available. enable consumer to exercise their rights of free choice. 2. Advertising is the most economical means by which a manufacture or an institutional body can communicate to an audience whether to sell a product or promote a cause of social welfare such as a civic drive or an immunization program. 3. Advertising, being a necessary means of communication is an inseparable part of free Advertisement

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speech. Any restrict the right to recommended legitimate goods, services or ideas in public will diminish the fundamental right of freedom of speech. 4. Advertising can help in improving the economies of developed & developing countries. Advertising stimulates increase in production & consequently generates more employment. It can help stabilize prices& thus lead to wider distribution & greater availability of goods & services. 5. Advertising is an essential & integral to the marketing system. it is sometimes maintained that the marketing system is nothing but the consequence of a country’s social & economic growth. The fact is that the advertising is the main key tools used to a country

Essential of effective advertisement:The measure of any advertisement is its effectiveness in reaching out to the consumer there are a few agreed principles, which govern the effectiveness of an advertisement. Some of the principles, which are key ingredients of an effective advertisement, have been dealt here. 1. Importance of claim:- Many advertisement make important claims. But these claims should be important for consumer too. If buyers give importance for quality, there is no point in speaking about the cheap price, similarly if cheap price is important the advertisement should highlight only that. Now a days advertising agencies concentrate on USP, i.e., unique selling proposition. Each advertisement must make a strong factual claim to pull the consumer into the store to buy. 2. Believable: An advertisement must be believable. This can be incorporated in many ways. One way is to quote facts & figures about test proving your claims. The readers believe sometimes advertisement given in prestigious magazines. 3. Uniqueness: The advertisement itself must have something unique about it. Uniqueness draws attention. According to the four-fold principal of AIDA ( Attention, Interest, Desire,& Action-buying), any effective advertisement should draw the attention

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of the customer. 4. Repetition: It is better to have a long series of small advertisement than one extremely long advertisement. Repetition is a basic principal of memory. Naturally, the more times an advertisement is run, the more likely is that any person has seen one of the advertisements recently.

2.6 Importance of Advertisement:As a component of the communication mix advertising makes a distinct contribution to the sales volume & profitability, which attract many marketing executives to assign it a relatively more important role in the overall marketing strategy. Some of these contributions are1. It stimulates 2. Enhances consumer satisfaction. 3. Increase sales volume.

2.7 Promotion Mix
Promotional mix for the sales of discussion could be divided into their categories : Personal selling, Advertising and Sales Promotional activities. Personal selling and advertising are the two forms of promotion. They influence cost and market impact. Personal selling is always supported by the backing of advertising. Other forms that support successful implementation of the propmotional programmes are point of purchaser display. 1. PERSONAL SELLING :

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Personal selling gives right products to right customer. It gives product and service feature as benefit to the buyer and persuades the buyer to buy right thing with right quantity. The sale never takes to estimate that they have been sold the object but the service proved that they are their things. They have faith in the salesman as a source of prouct information and advice. It is beacuse of the effort of salesman that such products like detergents come to market to retailers by personal efforts. Hence. it is the most effective and the most costly form of promotion. It has the advantage of personal contact. 2. ADVERTISING :

It has the impersonal contact and gives message to the receiver. The advertiser uses visual media like news-papers, magazines, radio, television, posters and pamphlets. There is no feed back to know the response from the people. Advertising is directed towards consumers. This leads to more expenses and so the things become a costly affair. Advertising costs are low per message received as it is witnessed by thousands and if calculated the cost comes to nothing. But it is of impersonal nature. It acquaints the person of the availability of goods so that he may buy at a later time. It makes the selling job easier. 3. PACKAGING : It differentiates the product with protection. Thus packaging plays dual role. It calls the attention of the products in retails stores. Secondly it carries selling message and other information. Good packaging design attracts the shopper from other items.

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CHAPTER-3 RESEARCH METHODOLOGY

Problem:- The impact of advertisement in purchase decision of life insurance products

Objectives of Research:• Awareness about the Life Insurance Companies.

• To find the level of customer satisfaction. • To suggest appropriate strategies for enhancing customer satisfaction. • To get an insight into insurance market and its contribution for Indian economy.. • A Study on the impact of advertisement in purchase decision of life insurance product in Rajasthan with special reference Chittorgarh.

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S. No. 1.

Particulars Project Title

Description The impact of advertisement in purchase decision of life insurance products

2.

Sample Size

100

3.

Sample Unit

Businessman (Middle and High) and Service Persons (Doctor, Lecturers, Lawyers, Government Service Persons, Bankers etc.) Chittorgarh Random Sampling Exploratory Survey Questionnaire Structured Close Ended, Open Ended Questions

4. 5. 6. 7. 8. 9. 10.

Area Covered Sampling Procedure Research Design Data Collection Method Research Instrument Type of Questionnaire Type of Questions

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CHAPTER-4 ANALYSIS & INTERPRETATION
(1) Do you invest money?

S. No. 1. 2.

Particulars Yes No

No. of Respondents 92 8
Table 4.1

Percentage 92% 8%

Aw areness about Investment
8%

Yes No

92%

Fig.4.1

Interpretation According to survey, it was found that approx 92% people invest their money and 8%people doesn’t invest their money

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(2) Where do you invest money? S.No. 1. 2. 3. 4. Particulars In Share Market In Bank In Life insurance Post office & Property No. of Respondents 15 30 20 35
Table 4.2
P referen fo in ce r vestm t en
4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 3 5 3 0 2 0 1 5 S rie e s1

Percentage 15% 30% 20% 35%

In S a h re M rke a t

In B n ak

In L ife in ra ce su n

P st o o ffice & P p rty ro e

Fig. 4.2

Interpretation According to survey, it was found that approx 15% people are invest their money in Share Market, 30%People in Bank and 20% in Life Insurance and 35% people in Post Office & in property.

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3) Do you have Life insurance?

S. No. 1. 2.

Particulars Yes No

No. of Respondents 90 10
Table.4.3

Percentage 90% 10%

Percentage of Insured people

90%

10%

Yes No

Fig.4.3

Interpretation According to survey, it was found that approx 90% people are already insured and 10%people are not insured.

(4) If yes then in which company?

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S.No. 1. 2. 3. 4. 5.

Particulars Bajaj Allianz ICICI Prudential LIC Max New York Others

No. of Respondents 15 20 55 5 5
Table.4.4

Percentage 15% 20% 55% 5% 5%

Life Insurance Investment Alternatives
60 50 40 30 20 10 0 Bajaj Allianz ICICI Prudential LIC Max New York Others 15 20 5 5 Series1 55

Fig.4.4

Interpretation According to survey, it was found that approx 55% people are insured from LIC, 20%People are insured from ICICI Prudential, 15%people are insured from Bajaj Allianz and 5% people insured from Max New York company and 5%people insured from other companies.

(5) Have you heard about the Bajaj Allianz life insurance company?

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S. No. 1. 2.

Particulars Yes No
Table 4.5

No. of Respondents 85 15

Percentage 85% 15%

Popularity of Bajaj Allianz
15%

Yes No
85%

Fig 4.5

Interpretation According to survey, it was found that approx 85% people are know about Bajaj Allianz Life Insurance Co. and 10% people are not know about it.

(6) From which source you came to know about Bajaj Allianz Life Insurance Company?

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S.NO. 1. 2. 3. 4. 5.

Particulars Advertisement Advisor/Executive Friend/Relatives News paper/Magazine Any other

No. of Respondents 22 40 18 12 8
Table.4.6

Percentage 22% 40% 18% 12% 8%

Mode of information for Bajaj Allianz
45 40 35 30 25 20 15 10 5 0
in e ive es t at iv vis or /E xe c se r/M ag az ot he An y m en ut r

ve r ti

nd /

Re l

Ad

Fr ie

Ad

Fig.4.4

Interpretation According to survey, it was found that 40% people come to know about the Bajaj Allianz Life Insurance Company with the help of their Executive, 18%people come to know through friends/relatives, 22%peolpe come to know through Advertisement, 12% through News paper/Magazine and 8%people come to know through any other medium

N

ew

s

pa

pe

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(7). Give Rank to following features of Bajaj Allianz Life Insurance Company which you like most Very Good 1.Quality of Services 2.Risk 3.Tax Benefit 4. Return 5.Maturity Period 6.Security 23 34 21 33 18 20 Good 35 18 28 20 26 14 Table 4.7 Average 26 32 38 27 45 49 Bad 12 10 8 11 7 11 Very Bad 4 6 5 9 4 6

1. Quality of Services
Particular No. Very Good Good
Quality of services
Very Bad Bad 4% Very Good 12% 23%

of %

respondent 23 23% 35 26 12 35% 26% 12% 4%

Average Bad
Very Good Good Average Bad Very Bad

Average 26% Good 35%

Very Bad 4

Interpretation: - Bajaj Allianz Life Insurance Company Provide good quality of services according to respondent.

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2. Risk Cover
Particular No. Very Good Good Average Bad of %

respondent 34 34% 18 32 10 18% 32% 10% 6%

Very Bad 6

Risk cover
Very Bad Bad 6% 10%

Very Good 34%

Very Good Good Average Bad Very Bad

Average 32% Good 18%

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Interpretation: - Bajaj Allianz life insurance Company Provide Very good Risk Cover services according to respondent. 3) Tax Benefit Particular No.
Tax B enefit

of %

Very
V ery B ad B ad 5% V ery Good 8% 21% V ery Good Good A verage A verage 38% Good 28% B ad V ery B ad

respondent 21 21% 28 38 8 28% 38% 8% 5%

Good Good Average Bad

Very Bad 5

Interpretation: - Bajaj Allianz life insurance company Provide Average Tax Benefit

according to respondent. 4) Return Interpretation:respondent Particular No. Very Good Good Average Bad of % Bajaj Allianz life insurance Very Good Good Average Bad Particular No. of %

company Provide Very good Return according to

respondent 33 33% 20 27 11 20% 27% 11% 9%

respondent 18 18% 26 45 7 26% 45% 7% 4%
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Very Bad 9

5). Maturity Period

Very Bad 4

M a tu r it y P e r io d
V e ry B a d B a d V e ry G o o d 4% 7% 18%

V e ry G o o d Good A v erage

A v e ra g e 45%

Good 26%

Bad V e ry B a d

Interpretation:- Bajaj Allianz life insurance company Provide Long Maturity Period so respondent gave average rank to it.

6) Investment security
Particular No.
S ecu rity

of %

Very
V ery B ad B ad 6% V ery G ood 20% 11% V ery Good G ood Good 14% A verage 49% A verage B ad V ery B ad

respondent 20 20% 14 49 11 14% 49% 11% 6%

Good Good Average Bad

Very Bad 6

Interpretation:- For Investment Security Bajaj Allianz life insurance company got average rank from respondent .

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8)

Is company’s Advertisement fulfilling your motive in purchasing behavior? S. No. 1. 2. Particulars Yes No Table 4.8 No. of Respondents 75 25 Percentage 75% 25%

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Effect of Advertisement

25% Yes No 75%

Fig 4.8 Interpretation:- According to survey 75% people said that company’s Advertisement fulfilling their motive in purchasing behavior?

9). Which one advertisement tool affects you most of Bajaj Allianz? (Assign Ranking)

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Advertisement Tool Advisor Newspaper/Magazines TV Advertisement Electronics media Other Total Marks

Score 525 255 390 240 90 1500

% 35 17 26 16 6 100

Table 4.9
Effective Advertisement tool
40 35 30 25 20 15 10 5 0
ne s m en t m ed ia dv is or ag az i se O th er

ap er /M

dv er ti

A

sp

TV

Usage of Advertising Tools According to survey the advisor is the most effective tool used by the company to both the urban and rural consumer and companies need to increase them.

N

ew

E

le c

tro

ni cs

A

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Television was also considered very effective but being costly it is used less frequently and third place occupied by Newspaper and after this Electronics and so on other advertising medium used by company for publicity.

10) Is the agents/advisor meets you regularly & provides updated information about new product? S. No. 1. 2. Particulars Yes No Table 4.10
Inform ation by advisor

No. of Respondents 62 38

Percentage 62% 38%

38%

Yes N o
62%

Fig 4.10 Interpretation:According to survey it was found that 70% insurance agent meet them and update them about new product and 30% insurance agent are not meet them and update them about new product

47

47

11. Are you satisfied with advertisement of Bajaj Allianz Life Insurance Co.?
S.No. 1 2 3 4 5 Particulars Completely satisfied Satisfied Partial Satisfied Dissatisfied Completely Dissatisfied No. of Respondent 29 37 19 11 4 Percentage 29% 37% 19% 11% 4%

Table 4.11
Satisfication with Advertisement
40 35 30 25 20 15 10 5 0 Completely satisfied Satisfied Dissatisfied Partial Satisfied Completely Dissatisfied

Fig 4.11
Interpretation:Its shows 29% people are Completely satisfied with Advertisement of Bajaj Allianz Life Insurance Co., 37% Satisfied with Advertisement, 19% Partial Satisfied with Advertisement, 11% Dissatisfied with Advertisement and 4% Completely Dissatisfied with Advertisement .

Z-Test

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 Are you satisfied with advertisement of Bajaj Allianz Life Insurance Co.?

S.No. 1 2 3 4 5

Particulars Completely satisfied Satisfied Partial Satisfied Dissatisfied Completely Dissatisfied

No. of Respondent 29 37 29 11 4

Percentage 29% 37% 29% 11% 4%

Null Hypothesis- The customers of Bajaj Allianz are not satisfied with the Advertisement of the Co. X 5 4 3 2 1 Total f 29 37 29 11 4 100 fx 145 148 87 22 4 406 0.94 -0.06 -1.06 -2.06 -3.06 fd 27.26 -2.22 -30.74 -22.66 -12.24 -40.6 d2 =(x-x)2 0.8836 0.0036 1.1236 4.2436 9.3636 f(x - x)2 25.6244 0.1332 32.5844 44.6796 37.4544 140.4765

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σ= 1.113

Z = 1.06/0.1113 Z = 9.54
The calculated value is more than table value. 9.54>2.576 so the hypothesis is rejected and accept the alternative hypothesis. Hence, The

47

customers of Bajaj Allianz are satisfied with the Advertisement of Bajaj Allianz Co.

12) How would you like to rank the advertisement of Bajaj Allianz with comparison to other companies?

S. No. 1. 2. 3. 4. 5.

Particulars Excellent Very Good Good Fair Poor

No of Respondents 15 58 19 6 2 47

Percentage 15% 58% 19% 6% 2%

Table 4.12

Advertisement Efficiency with comparison to other conmpanies
70 60 50 40 30 20 10 0 Excellent Very Good Good Fair Poor 15 19 6 2 Series1 58

Fig 4.12
Interpretation:-

According to survey Bajaj Allianz company‘s Advertisement gain Very good image in customer mind comparison to other companies’ Advertisement.

CHAPTER-5

Findings of the study
The researcher after conducting the study has learned about the market and market conditions. Life Insurance sector is a booming sector in India and Rs 2 billion has been spent on advertising and is growing at steadily rate. If we see life insurance sector ten years back it was a very slow growing sector as there was no private companies in this

47

sector. But after the liberalization when private companies were also allowed in this sector, it started growing at very fast pace. With the entry of the private players, the size of the industry has actually expanded. LIC has been here for years now and private companies will continue to learn lessons from LIC. People relate to LIC, which is good. However, with private players coming in, people have more options in terms of product features. As people faith is growing in private life insurance companies they are investing more in the policies. The researcher has come to know what effect the advertisement has in selling of life insurance products. Many private players are giving their advertisements on various media to increase awareness among people about their company and policies.   People are getting aware about the policies of the companies. People are also getting to know how many companies are there in the insurance sector.




Advisor and Television advertisements are more on creating awareness of the brand.



The advertisements also stressed on creating brand image which played a crucial role in boosting sales.



By having brand ambassadors, it boosted the sales as well as brand image of the company.

  

Advertisements on television and newspaper have more impact on people. The advertisements on internet are also making impact on the people. Many people come to know about the company through the newspaper also.

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CHAPTER-6

Suggestive Framework


The company should focus on making people believe on private life insurance companies.



The company should take some more measures for creating awareness among people about their company.



The company should give more advertisements on television as well as in print media.



The company should have brand ambassadors for creating brand awareness among people.

 

Spread more awareness over ULIP plans among people. People have strong belief on LIC so the company should work on making them belief on their products also.



The advertisements given on television and in print media should be very effective on people’s mind.



The company should also pay more attention towards internet advertisements as use of internet is increasing



Advisor also play a crucial role for company to boost its sales and it is the medium by which company directly connect with people.

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CHAPTER-7

Conclusions
With the help of the analytical figures we derived from the questionnaire following can be found:


It can be analyzed that many people still don’t have life insurance which shows the untapped market.



For the existence of LIC in the market for so long, the people have blind faith on it, so for other life insurance companies it is very difficult to find place in the market.



Most of the people came to know about the company through friends or relatives, so the company has to work on making its advertisement channel very strong.



It can also be analyzed that less people have seen the advertisements of life insurance so the company should air its advertisements on prime time television.



The advertisements are also not that much effective so it should be made in very different way as to people have very immediate effect on themselves.



Many times the concept of the advertisement is also not very clear and not specific as to what product it is selling, so the message should be very clear.



Today there are many other avenues opened for people to invest their money in, like mutual funds, shares etc. so the company faces a tough competition from these other financial instruments.



The brand name also helps the company in selling its products. If the company’s brand name is good then the people will invest their money easily in the products of the company.

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CHAPTER-8 BIBLIOGRAPHY

Books Referred:  Kothari C. R. (2005) ‘RESEARCH METHODOLOGY’ New Age International Limited, Fifth Edition
 Khan M. Y. (2006) ‘MANAGEMENT OF FINANCIAL SERVICES’ Tata

McGraw-Hill Publishing Company Limited, Third Edition.
 “MARKETING MANAGEMENT” by PHILIP KOTLER published by Vikas

publishing house Pvt. ltd. New Delhi.


Shete, JN Banwari Mittal and Bruce Newman, “Customer Behaviors” New York, The Dryden press Parry, Mark E., Strategic Marketing Management: Means-End
Approach, New Delhi, McGraw-Hill, 2002



Websites Referred:
 www.irda.com  www.allianzbajaj.co.in  www. en.wikipedia.org

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QUESTIONNAIRE
Personal Detail
Name of the respondent…………………………………….. (1)Age Group(a) Below 30 (b) 31-40 (c) 41-50 (d) Above 50     Govt. Employed Private Employed Professional Businessman      Up to Rs. 50,000 Rs. 50,000-1, 50,000 Rs. 1, 50,000-3, 00,000 Above Rs. 3, 00,000    (2)Occupation(a) (b) (c) (d) (3) Income Group(a) (b) (c) (d) (4). Do you invest money? A- YES (5).  B- NO 

Where do you invest money? (a) (b) (c) (d) In Share Market In Bank In Life insurance Post office & Property    

(6)

Do you have Life insurance? A- YES 

B- NO



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(7) If yes then in which company? A- Bajaj Allianz C- LIC E- Others□ (8) □ □ B- ICICI Prudential D- Max New York □ □

Have you heard about the Bajaj Allianz life insurance company? A- YES □ B- NO □

(9). from which source you came to know about Bajaj Allianz Life Insurance Company? A- Advertisement C- Friends/Relatives E- Other □ □ □ B- Advisor D- Newspaper /Magazine □ □

(10) Give Rank to following features of Bajaj Allianz Life Insurance Company which you like most? Very Good 1.Quality of Services 2.Risk 3Tax Benefit 4. Return 5.Maturity Period 6.Security (11) Is company’s Advertisement fulfilling your motive in purchasing behavior? □ B) NO □ Good Average Bad Very Bad

A) YES

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(12) Which one advertisement tool affects you most of Bajaj Allianz? (Assign Ranking) a) b) c) d) e) Advisor NEWS Paper & Magazines TV Advertisement Electronic Media Others --------------------------------------------------------

(13) Is the agents/advisor meets you regularly & provides updated information about new product? A) YES □ B) NO □

(14) Are you satisfied with advertisement of Bajaj Allianz Life Insurance Co.? (a) (b) (c) (d) (e) Completely Satisfied Satisfied Partial Satisfied Dissatisfied Completely Dissatisfied □ □ □ □ □

(15) How would you like to rank the advertisement of Bajaj Allianz with comparison to other companies? (a) (b) (c) (d) (e) Excellent Very Good Good Fair Poor □ □ □ □

(16) Your suggestion regarding the above medium and those of Bajaj Allianz Company? ................................................................................................... ................................................................................................... ......................................................................................................

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