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PROJECT REPORT

ON

TOPIC- ANALYSIS OF THE CUSTOMER ATTITUDE, PREFRENCE AND SATISFACTION TOWARDS INVESTMENT IN ICICI

PRUDENTIAL LIFE INSURANCE CO.LTD.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (SESSION 2012-2014)

SUBMITTED TO: SUBMITTED BY:

Prof. KIRANJIT KAUR SHIFALI KHURAL

MBA 4TH SEMESTER

CORDIA INSTITUTES OF BUSINESS MANAGEMENT, SANGHOL

PREFACE

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Research project is a major part of our fourth semester end study.

It is the period in which we are introduced to the industrial environment.

The objective of this project is to raise the level of performance in one or more of its aspects and this may be achieved by providing new knowledge and information relevant to the job.

Practical work is an important part of theoretical studies. It covers that entire uncovered in classroom that is without it our study remains ineffective and incomplete. Also it explores a student to and invaluable treasure if experience and offers an exposure to real management.

It also a well known fact that practical play a very important in future building of an individual. Only gaining theoretical knowledge is just not sufficient for sure success in life, practical knowledge is must.

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ACKNOWLEDGEMENTProject work is never accomplished of an individual. Rather it is an amalgamation of the efforts, Ideas and co-operations of an individual.

It gives me immense pleasure to take this opportunity to thanks all those who helped me in successfully completing the project.

I am extremely thankful to our Prof. KIRANJIT KAUR for her timely guidance, support, advice and co-operation during the project. Her guidance is invaluable in this project otherwise project would not have been according to the given format.

SHIFALI KHURAL

MBA 4TH SEMESTER

DECLERATION

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I hereby declare that this report on analysis of customer attitude, preference and satisfaction towards the investment in ICICI PRUDENTIAL has been written and prepared by me during the academic year 2012-2014.This project is done under the guidance of Prof. KIRANJIT KAUR faculty , cordia institute of business management for fulfillment of the requirement for the Master Of Business Administration. I also declare that this project is the result of my own effort and has not been submitted to any other institution for the award of any other degree or diploma.

SHIFALI KHURAL

MBA 4TH SEMESTER

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TABLE OF CONTENTS INTRODUCTION

COMPANY PROFILE

PROJECT INTRODUCTION

OBJECTIVES

RESEARCH METHODOLOGY

DATA ANALYSIS AND INTERPRETATION

FINDINGS

RECOMMENDATIONS

LIMITATION

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

INTRODUCTION TO THE STUDYIn today’s competitive and dynamic world, with every business providing the same kind of product and services, only that firm which

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comes up with an innovative idea can hope to survive in the long run, by attracting and luring customer.

Insurance sure is an upcoming sector but with the privatization of the same, selling insurance products has become tough due to competition angle attached to it.

INSURANCE IN INDIA

The insurance sector in India has become a full circle from being open competitive market to nationalization and back to a liberalized market again. Tracing the development in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries.

The insurance sector opened up to private competition on December 7, 1999 with the introduction of the insurance regulatory and development authority.

With the opening of insurance sector multinational entered the Indian market through partnership with eminent Indian business houses. What was the quite business is becoming one of the hottest businesses today.

INSURANCE SECTOR REFORMS

Some of the key recommendations included:

1. Structure

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Government stake in the insurance companies to be brought down to 50%

Government should take over the holding if GIC and its subsidiaries so that these subsidiaries can act as independent corporation

All the insurance companies should be given greater freedom to operate

2. Competition

Private companies with a minimum paid up capital of Rs.1bn should be allowed to enter the industry

No company should deal in both life and general insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic companies

3. Regulatory body

The insurance act should be changed

An insurance regulatory body should be set up

Controller of insurance (currently a part from the Finance Ministry)

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COMPANY PROFILE

INTRODUCTION TO ICICI PRUDENTIAL

ICICI BANK (PRE-MERGER)

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ICICI BANK was originally promoted in 1994 By ICICI limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI was formed in 1995 at the initiative of the World Bank, the government of Indian and representatives of the Indian industry. The principal objective was to create a development financial institution for providing medium-term and long- term project financing to Indian businesses. In the 1990’s ICICI transformed its business from a development financing institutions offering only project finance to a diversified financial services group offering a wide variety of product and services, both directly and through a number of subsidiaries and affiliates like ICICI bank.

PRUDENTIAL PLC

-Started operation in 1848 and is now one of the largest life insurance companies in world.

-presence in UK, Europe, US and throughout Asia.

- Insurance and investment funds under management exceed Rs.110000 cr.

- Solid reputation built over 150 years.

- Already established as one of the biggest private sector mutual fund companies in Indian.

- A truly global brand.

PRUDENTIAL ASIA

Prudential Corporation Asia has 24 operation countries, namely: china, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, and Thailand.

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-bank of china international for mandatory provident fund business in Hong Kong;

-CITIC group for life business in china;

-ICICI bank for life and mutual funds business in India.

Prudential Corporation Asia is Europe’s leading in Asia in term of market coverage and number of five market positions.

ICICI PRUDENTIAL

It is one of the largest financial investments in India.

Broad spectrum of financial solution for corporate and retail customer.

Assets in excess of Rs. 1, 00,000 cr.

Better than sovereign rating.

It is first Indian company to be listed on New York stock exchange.

It is trusted by millions of Indians over the years.

Shares in market

76%-ICICI

24%-Prudential

ABOUT ICICI PRUDENTIAL

THE COMPANY

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ICICI Prudential Life Insurance Company is a joint venture between ICICI bank, a premium financial powerhouse and prudential plc; a leading international financial services group headquarters in United Kingdom. ICICI prudential was amongst the first private sector insurance companies in December 2000 after receiving approval from insurance regulatory development authority (IRDA).

ICICI prudential equity base stands at Rs.675 crores with ICICI bank and prudential plc holding 74% and 26% stake respectively. In year ended march 31, 2004, the company had issued over 430,000 policies, for a total sum assured of over Rs.8, 000 crore and premium income in excess of Rs.980 crores. Today the company is the 1 private life insurance in the country.

Regulatory body-IRDA controls the company ICICI prudential with all its operations, so that the general public also faith in the company.

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PRODUCT PROFILE

ICICI PRUDENTIAL

PRODUCTS OFFER

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Basically three kinds of products were on offer.

-Life time- this offer customer the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund option? Preserver, protector, balancer and maximiser.

-Invest Shield life - it is the market linked plan that provide capital guarantee on the invested premium and declared bonus interest.

-Invest shield cash- it is a market linked plan that provide capital guarantee on the invested premium and declared bonus interest along with flexible liquidity options.

The life time policy has edge over the other two policies as it offer a customer to pay premium for three years after which the customer might not pay any further premium but still can get investment return according to the market share, thereby giving a capital guarantee to the customer. Whereas in the other two product/policies a customer have to pay premium at least for a period of ten years.

PRODUCTS

Insurance solutions for individuals

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ICICI prudential life insurance offers a range of innovative, customer-centric products to meet the needs of the customer at every life stage. Its 27 product can enhanced with up to 6 riders, create a customized solution for each policyholder.

SAVING SOLUTIONS

-Secure plus

-cash plus

-save and protect

-cash bank

-lifetime & lifetime2

-life link 2

-premium life

-invest shield life

-invest shield cash

-invest shield gold

PROTECTION SOLUTIONS-Life guard –which offers life cover at very low cost. It is available in 3 options? Level term assurance, level term assurance with return of premium and single premium.

RETIREMENT SOLUTION

-Forever life is a retirement product targeted at individuals in at their thirties.

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-secure plus pension is a flexible pension plan that allows one to select between 3 levels of cover.

MARKET- LINKED RETIREMENT PRODUCTS

-Lifetime pension2is a single premium market-linked pension plans.

-life link pension2 is a single premium market linked pension plan.

-invest shield pension is a single regular premium pension plan with a capital guarantee on the investible premium and declared bonuses.

FLEXIBLE RIDER OPTIONS

ICICI Prudential life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.

-accident & disability benefits

-accident benefits

-critical illness benefits

-major surgical assistance benefits

-income benefits

-waiver benefits

MAJOR INSURANCE PLAYERS (INDIA)

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AVIVA LIFE INSURANCE: Aviva life insurance Company India pvt.ltd. Is a joint venture between of UK and dabur, one of India’s leading producers of venture traditional healthcare Products.

BAJAJ ALLIANZ: Bajaj Allianz is a joint venture between Allianz AG one of the world’s largest insurance companies, and Bajaj auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

BIRLA SUN LIFE INSURANCE: Birla sun life insurance Company limited is a joint venture between Aditya Birla group and sun life financial of Canada. Birla group is an Indian multinational conglomerate with presence in India.

HDFC STANDARD LIFE INSURANCE: HDFC standard life insurance co.ltd.is a joint venture between HDFC ltd and India’s largest housing finance institution and standard life assurance company, Europe’s largest mutual life company.

ING VYSYA: ING VYSYA Life insurance ltd is joint venture between vysya bank and ING group of Holland, the world’s 4th largest financial services group, with presence across 50 countries, and a heritage of over 150 years.

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KOTAK MAHINDERA: kotak Mahindra old mutual life insurance is a joint venture between kotak Mahindra bank and old mutual plc. Kotak Mahindra is one the India’s leading financial institutions and offers a range of financial services such as commercial banking, stock broking, mutual funds, life insurance and investment banking.

LIC: Life insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its head office at Mumbai. It has been established by an act of the parliament and started functioning from 1.9.1956.

MAX NEW YORK LIFE INSURANCE: Max New York life insurance Company limited is a joint venture between max India limited, a multi-business corporate, New York life international, a global expert in life insurance.

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WHAT IS INVESTMENT?

Investment is an economic activity in which every person is engaged in one form or another. Investment is the process of sacrificing something now for the prospect of gaining something later. There are three dimensions to an investment –time, today’s sacrifice and prospective gain. Investment is an economic activity which involves creation of assets or exchange of assets with profit motive. It is the employment of funds with the purpose of earning additional income or growth in value. The person making investment has to part with his funds and a claim on future money for a return. This return is an award for abstaining from present consumption for parting with the money for taking the risk.

DEFINATIONS

“Sacrifice of certain present value for some uncertain future value”

-SHARPE/ALEXANDER

“Purchase of a financial asset that produces a yield that is proportional to the risk assumed over some future investment period”

-F.AMLING

OBJECTIVES OF INVESTMENT IN SECURITIES

Income

Capital appreciation

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Forms of return

Safety and security of funds

Risk

Liquidity

Tax consideration

CLASSIFICATION OF INVESTMENT

1. Physical investment

2. Financial investment

3. Marketable and non-marketable investment

4. Transferable and non-transferable investment

5. Others

Issuing authority

Denomination

Term to maturity

Tax treatment

Income payment

MODES OF INVESTMENT

1. Direct investment alternatives

Fixed principal investment

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Variable principal investment

Non security investment

2. Indirect investment alternatives

Pension funds

Provident funds

Insurance

Unit trust of India

Investment companies

3. Transferable financial securities

Equity shares

Preference share

Debenture

Saving certificate

Money market securities

Government securities

4. Mutual Funds

5. Real assets

6. Gold, silver and precious objects

7. Financial derivatives

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8. Non- transferable financial securities

Deposits

Tax –sheltered saving schemes

-employee provident fund scheme

-public provident fund scheme

-national saving scheme

-national saving certificate

-life insurance

FEATURES OF AN IDEAL INVESTMENT PROGRAMME

Safety

Liquidity

Regularity of income

Tangibility

Legality

Tax benefits

Concealability

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OBJECTIVES

OBJECTIVES OF THE STUDY

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The objectives of the study are as follows:

1. To make study of insurance sector.

2. To have knowledge about the strategies adopted by ICICI prudential.

3. To know about the various investment policies of ICICI.

4. To know about the level of customer satisfaction.

5. To know about the factors contributing to satisfaction and dissatisfaction of customer.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGYTITLE OF THE STUDY:

The title of the study is “ANALYSIS OF CUSTOMER ATTITUDE, PREFERENCE AND SATISFACTION TOWARD THE INVESTMENT IN ICICI PRUDENTIAL CO.LTD.”

RESEARCH DESIGN:

A research design is simply a plan for study in collection and analysis the data.

The report is exploratory and descriptive in nature.

This report is going to describe various investment schemes provided

by ICICI PRUDENTIAL CO. LTD. hence it is a descriptive in nature

but it suggests some important points to improve the services of the

ICICI so it is exploratory in nature also.

DATA COLLECTION:

For the purpose of project data is very much required which works as a food for process which will ultimately give output in the form of information. So before mentioning the source of data for the project I would like to mention that what type of data I have collected for the purpose of project and what it is exactly.

During preparation of the project report many different kinds of data were required which includes both primary and secondary sources.

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SOURCES OF DATA COLLECTION:

PRIMARY DATA:-

Primary data is basically the live data which I collected

-Questionnaire

SECONDARY DATA:

Secondary data is already published data. It is the data which is

funded or collected by someone else before and presently used by

further research work. Secondary data for the base of the project, I

collect the data from:-

-internet

-magazines

-journals

SAMPLE SIZE:

The sample size selected from universe to constitute my study is 80.

SAMPLE UNIT:

Study is conducted by the survey of self employed persons and business men.

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DATA ANALYSIS

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1. YOUR NET FAMILY INCOME FROM ALL SOURCES?

INCOME GROUP NO OF PEOPLE

BELOW 20000 10

20000-30000 20

30000-40000 30

ABOVE 40000 20

INTERPRETATION: From the taken data most of the people belong to 30000-40000 per month.

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2. ARE YOU INSURED, IF YES THEN?

INSURANCE COMPANIES NO. OF PERSON

ICICI PRUDENTIAL 25

HDFC SLIC 10

BIRLA SUN LIFE 10

LIC 35

INTERPRETATION: After LIC ,people get insurance in ICICI Prudential.

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3.ARE YOU SATISFIED WITH THE SERVICES OF YOUR INSURANCE COMPANY?

RESPONSE NO OF REPONDENT

YES 52

NO 28

INTERPRETATION: Most of the people are satisfied with the services of their insurance company.

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4. DO YOU KNOW ABOUT ICICI PRUDENTIAL?

RESPONSES NO OF RESPONDENT

YES 62

NO 18

INTERPRETATION: There are 62 respondent who are aware about the policies of ICICI prudentail.

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5.HOW MUCH AMOUNT YOU INVEST IN INSURANCE PLAN?

INVESTED AMOUNT NO OF PEOPLE

BELOW 20000 10

20000-40000 14

40000-60000 18

ABOVE 60000 38

INTERPRETATION: people invest large amount in insurance to earn more profits.

6.WHERE DO YOU PREFER TO INVEST?

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INVESTMENT PREFERENCES NO .OF PEOPLE

BONDS 12

MUTUAL FUNDS 12

GOLD 14

SHARES 18

INSURANCE 24

INTERPRETATION: People mostly invest in insurance then they prefer to invest in shares. There is less no. of people who invest in bonds.

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7. YOUR INSURANCE PLAN PROVIDES YOU WHICH BENEFIT?

BENEFITS NO .OF PEOPLE

HEALTH COVER 12

TAX BENEFITS 18

INTEREST 20

SECURITY 15

FIXED RETURN 15

INTERPRETATION: People invest money as they want to earn return from the investment. Tax benefit is also one of the reasons for investment.

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8. FOR HOW MUCH TIME YOU WOULD LIKE TO INVEST YOUR MONEY?

TIME PERIOD NO. OF PEOPLE

LESS THAN 1 YEAR 8

1-2 YEARS 8

2-3 YEARS 10

ABOVE 3 YEARS 54

INTERPRETATION: People invest in long term policies as it give more benefits and interest to them.

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9.ARE YOU SATISFIED FROM THE RETURN ON YOUR INVESTMENT?

SATISFACTION LEVEL NO. OF PEOPLE

VERY GOOD 28

GOOD 22

AVERAGE 22

POOR 8

INTERPRETATION: Respondent are satisfied with the return from the money invested by them and they get insured themselves.

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10. WHICH ARE THE FOLLOWING FACTORS DO YOU THINK AFFECT THE INVESTMENT THE MOST?

FACTORS NO.OF RESPONDENT

RETIREMENT 24

TAX BENEFITS 12

CHILDREN FUTURE 18

PROFITS 26

INTERPRETATION: Profits and retirement are the factor which mostly affect the investment ,child future also affect the investment.

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11.IN FUTURE DO YOU LIKE TO INVEST IN ICICI PRUDENTIAL CO.?

FUTURE INVESTMENT NO. OF PEOPLE

YES 44

NO 36

INTERPRETATION: Respondent would like to invest in ICICI Prudential in future.

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12.HOW MUCH PREMIUM YOU PAY YEARLY FOR INVESTMENT?

PREMIUM NO. OF RESPONDENT

BELOW5000 26

5000-10000 24

10000-15000 20

15000-20000 10

INTERPRETATION: People mostly like to pay below 10000 as premium on their investment which shows that they are mostly middle class people.

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13. WHICH INSURANCE PLAN YOU WANT TO TAKE?

PLANS NO.OF RESPONDENT

CHILDREN EDUCATION 18

MARRIAGE PLAN 12

LIFE INSURANCE PLAN 26

RETIREMENT PLAN 24

INTERPRETATION: There are mostly people who take insurance plan and then they take retirement plan.

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14. WHAT ARE THE FACTORS THAT MAY DISSATISFY YOU?

FACTORS NO. OF RESPONDENT

RETURN 28

PERIOD OF INVESTMENT 15

PREMIUM ON INVESTMENT 15

SECURITY 12

INTERPRETATION: people invest to earn return but this is the factor which dissatify them.

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15. DO YOU FEEL SAFE BY INVESTING IN ICICI PRUDENTIAL CO.?

SAFTY NO.OF RESPONDENT

YES 41

NO 39

INTERPRETATION: There are 41 respondent who feel safty whereas there are 39 who feel unsafe while investing their money in ICICI Prudential.

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FINDINGS

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FINDINGS A questionnaire survey was conducted of different people who had purchased such policies ,to determine their satisfaction level regarding the policies,customer’s previous experience with the companies and if they are interested to give the company more business by furthur investing more policies.

Certain points can be drawn form this survey-

-Different people in the society have different income group.

-According to the people ,there are different reasons for which thry invest their money in buying any insurance policy or plan.

-Many private companies have entered into the insurance sector promising to maximise benefits.

-Majority of people who have invested in insurance companies are satisfied with their company’s services.

-The first preference of people in buying any insurance plan is of to have a life insurance policy.

-Mostly everyone in the society are aware of ICICI Prudential.

-LIC, in insurance sector still has sold highest number of policies, but other than LIC there are other private companies like ICICI Prudential ,HDFC SLIC , Aviva etc are having good business.

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-people start buying insurance polices,earlier the number was too small but now its increasing.

- People satify from the return on the investment and they are interested in investing ICICI Prudential in future.

-Other than insurance policies, companies are providing customers with other plans for investing like-health cover,child education plans,pension plans, etc.

This survey concluded that india is also having a rise in insurance sector ,as people are showing interest toward investing money in insurance companies.

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SUGGESTIONS

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SUGGESTIONS 1. Company should increase its advertisement.

2. Company should setup more dealers in different areas.

3. Direct Door to door interview.

4. Spreading, expanding the need & awareness of insurance among the people through different means of communication viz...Sms, television etc.

5. The company should focus on their investment and profitabity.

6. The company should increase their policy holders.

7. The company should introduce the new investment plans and for upcoming customers.

8. The policies and plans should be flexible in nature.

9. The company should also focus on the weaker section and come up with new plans.

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LIMITATIONS

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LIMITATIONS OF THE PROJECTBy working on this project I gained a lot of knowledge over the insurance sector in India. But there is a certain no. of problems which I faced while working on this project.

These problems can be illustrated as limitation of the study which are as follow:-

-Reliability on the primary sources of data.

- Most of the contents collected were difficult to understand because it was new for me to work in the field.

- It was tricky and time consuming to understand the mysteries of marketing.

-Response of customer could be biased.

CONCLUSION

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CONCLUSION After working on this project it’s my immense pleasure to say that it has been most beneficial to me as it gave a lot of knowledge about the insurance sector. This study was understood to know and examine the various investment opportunities and the investment preference of the people. In this both primary as well as secondary data has been collected through internet and the primary data has been collected

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through questionnaire. Data analysis is done and I found that people prefer to invest in safe securities.

On the whole, every possible caution and care has been taken to collect data; there were also some limiting factors.

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BIBLIOGRAPHY

BIBLIOGRAPHY

Books and authors

-RESEARCH METHODOLOGY by “C R Kothari”.

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-MARKETING RESEARCH by “S L GUPTA”.

WEBSITES

www.religare.in

www.investopedia.com

www.moneycontrol.com

www.investmentlive.com

www.google.com

www.icicibank.com

NEWSPAPERS AND MAGAZINES:

-INSURANCE CHRONICAL BY ICICI (WEEKLY JOURNALS.

-ECONOMICS TIMES

-BUSINESS WORLD

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ANNEXURE

QUESTIONNNAIRE

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SHIFALI student of MBA 2nd year (4th semester) doing project on the topic, “Analysis of customer attitude, preference and satisfaction towards investment in ICICI prudential life insurance co.ltd”.

NAME:

AGE:

SEX: 1. MALE 2. FEMALE

1. Your Net family income from all sources?

o Below20,000

o 20,000-30,000

o 30,000-40,000

o 40,000 and above

2. Are you insured, if yes then?

o LIC PRU.o HDFC SLICo BIRLA SUN LIFEo LIC

3. Are you satisfied with the services of your Insurance Co?

o YESo NO

4. Do you know about ICICI PRUDENTIAL CO?

o YESo NO

5. How much amount you invest in insurance plans?

o Below 20,000o 20,000-40,000o 40,000-60,000

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o 60,000 and above

6. Where do you prefer to invest?

o Bonds o Shareso Mutual fundso Goldo Insurance

7. Your insurance plan provides you which benefit?

o Health covero Tax benefitso Interesto Securityo Fixed return

8. For how much time you would like to invest your money?

o Less than 1 yearo 1- 2yearso 2-3 yearso 3 years and above

9. Are you satisfied from the return on your investment?

o Very goodo Good o Averageo Poor

10. Which of the following factor do you think affects investment the most?

o Retiremento Tax benefit

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o Children futureo Profits

11. In future do you like to invest in ICICI PRUDENTIAL CO.?

o YESo NO

12. How much premium you pay yearly for your investment?

o Below 5000

o 5000-15000

o 15000-25000

o 25000 and above

13. Which insurance plan you want to take?

o Children education plan

o Marriage plan

o Life insurance plan

o Retirement

14. What are the factors that may dissatisfy you?

o Return

o Period of investment

o Premium on investment

o Security

15. Do you feel safe by investing in ICICI PRUDENTIAL CO.LTD?

o YES

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o NO