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A REPORT
ON
CONSUMER PERCEPTION AND BRAND RECALL IN
INSURANCE INDUSTRY WITH REFERENCE TO
KOTAK LIFE INSURANCE
A Project Report Submitted in Partial Fulfillment of the requirement
Of degree of Post Graduate Diploma in
Marketing Management
Submitted By:
U.Ramu, MBA
Under the esteem guidance of
Asst. Prof. R.Ramesh
BALAJI INSTITUTE OF MANAGEMENT SCIENCES
NARSAMPET, WARANGAL 5063312009 - 2011
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TABLE OF CONTENTS
CHAPTER1
Introduction
CHAPTER2
Industry Profile
CHAPTER3
Company Profile
CHAPTER - 4
Data Analysis & Interpretation
CHAPTER5
Findings and Suggestions
ANNEXURE
Bibliography
Questionnaire
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ACKNOWLEDGEMENT
It is inevitable that thoughts and ideas of other people tend to drift into thesubconscious, when one feel to acknowledge the helped drive from others.
I acknowledge to all those who have helped me in the preparation of this project. Itake this opportunity to express my deep sense of obligation to Mr.Navdeep SinghBhatia (Territory Manager) for permitting me to undergo the project work in theiroffice and also to Mr. Mrityunjay Mishra (Sales Manager) who guided me throughoutmy project. My grateful thanks are due for his kind guidance and cooperation during thetenure of my project work.
I wish to extend my appreciation to the management and faculty members of BALAJIINSTITUTE OF MANAGEMENT SCIENCES for their valuable guidance andcooperation.
Last but not the least, my sincere thanks to my family members and my friends who havecontributed directly and indirectly towards the successful completion of the project.
DATED: 11-9-2011 U.RAMU
PLACE: NARSAMPET, WARANGAL
I
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Declaration:
I hereby declare that the project report entitled End consumer perception and
brand image in Insurance Industry. is the produce of my sincere effort. This projectwas done as per the guidelines of the Kotak Life Insurance, Hyderabad branch and
with the help of data provided by them. My industry guide Mr. Mrityunjay Mishra
assigned me the project as far as the college report is considered; it is solely my
individual effort.
This Industry Internship Project Report is being submitted by me alone, at Balaji
Institute of Management Sciences,Narsampet for the partial fulfillment of the course
MBA (Marketing) and the report has not been submitted to any other educational
institutions for any other purpose.
U.RAMU
098C1E0041
BALAJI INSTITUTE OF MANAGEMENT SCIENCES
II
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CHAPTERI
INTRODUCTION
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INTRODUCTION
The environment for marketing has become extremely dynamic. Without
adequate preparation, it is difficult fororganizations to survive in such an environment.
Marketing research is one of the most effective tools that help organizations excel in the
marketplace. Obtaining necessary information about customers tastes and preferences is
the key to business success.
Marketing research provides information about consumers and their reactions to
various products, prices, distribution, and promotion strategies. Marketers who collect
accurate and relevant information quickly and design their strategies quicker than their
competitors are more likely to be successful.
Marketing research helps in effective planning and implementation of business
decisions by providing accurate, relevant, and timely information. The process of
marketing research involves a series of steps that systematically investigate a problem or
an opportunity facing the organization.
This investigation starts with problem or opportunity recognition and definition,
development of objectives for the research, development of hypothesis, planning the
research design, selecting a research method, analyzing the research designs, selecting
a sampling procedure, data collection, evaluating and analyzing the data and finally
Preparing and presentation research report.
The research process provides a scientific platform, contrary to the traditional
intuitive approach of decision making by managers which used to put large amounts of
resources of the organization at risk. Organizations in areas such as IT, pharmaceuticals,
telecom, manufacturing, transportation, advertising, banking, law, education and even
governments utilize marketing research to find solutions to different kinds of decision-
making problems.
Marketing research is used in new product development, in segmenting markets,
in identifying the needs of the customers, in sales forecasting and estimating the Market
potential of products and services, in analyzing the satisfaction levels of Customers, and
so on...
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The Marketing Concept:
The marketing concept holds that the key to achieving organizational goals
consists of being more effective than competitors in integrating marketing activities
toward determining and satisfying the needs and wants of target markets.
The marketing concept rests on four pillars:
Target market, Customer needs Integrated marketing and Profitability.
Marketing management takes place when at least one party to a potential
exchange thinks about the means of achieving desired responses from other parties.
Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating, offering, and exchanging products of value
with others.
A human need is a state of deprivation of some basic satisfaction. People require
food, clothing, shelter, safety, belonging, and esteem. These needs are not created by
society or by marketers. They exist in the very texture of human biology and the human
condition.
Wants are desires for specific satisfiers of needs. A lthough peoples needs are
few, their wants are many. They are continually shaped and reshaped by social forces and
institutions, including churches, schools, families and business corporations.
Demands are wants for specific products that are backed by an ability and
willingness to buy them. Companies must measure not only how many people want their
product but, more importantly, how many would actually be willing and able to buy it.
Definitions of Marketing:
Marketing (Management) is the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create exchanges that
satisfy individual and organizational goals.
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-American Marketing Association
Marketing is a social and managerial process by which individuals and groups obtain
what they need and want through creating and exchanging products and values with each
others.
-Philip Kotler
A Leading management thinker put them in this way, Aim of marketing is to
make selling superfluous. The aim is to know and understand the customer so well that
the product or service fits and sells it self. Outstanding Marketing companies stay close to
customers.
-Peter F Druker
CONSUMER BEHAVIOR:
It is the study of when, why, how, and where people do or do not buy a product. It blends
elements from psychology, sociology, social anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics and behavioral variables in
an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general.Customer behavior study is based on consumer buying behavior, with the
customer playing the three distinct roles of user, payer and buyer. Relationship
marketing is an influential asset for customer behavior analysis as it has a keen interest in
the re-discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer.
All of us are consumers. We consume things of daily use, we also consume and buy
These products according to our needs, preferences and buying power. These can be
Consumable goods, durable goods, speciality goods or, industrial goods.
What we buy, how we buy, where and when we buy, in how much quantity we
buy depends on our perception, self concept, social and cultural background and our age
and family cycle, our attitudes, beliefs values, motivation, personality, social class and
http://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Social_Anthropologyhttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Demographichttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Relationship_marketinghttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Demographichttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Anthropologyhttp://en.wikipedia.org/wiki/Social_Anthropologyhttp://en.wikipedia.org/wiki/Sociologyhttp://en.wikipedia.org/wiki/Psychologyhttp://en.wikipedia.org/wiki/Product_(business) -
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many other factors that are both internal and external to us. While buying, we also
consider whether to buy or not to buy and, from which source or seller to buy. In some
societies there is a lot of affluence and, these societies can afford to buy in greater
quantities and at shorter intervals. In poor societies, the consumer can barely meet his
barest needs.
The marketers therefore tries to understand the needs of different consumers and having
understood his different behaviors which require an in-depth study of their internal and
external environment, they formulate their plans for marketing.
Consumer behavior can be defined as the decision-making process and physical activity
involved in acquiring, evaluating, using and disposing of goods and services.
This definition clearly brings out that it is not just the buying of goods/services
that receives attention in consumer behavior but, the process starts much before
the goods have been acquired or bought. A process of buying starts in the minds of the
consumer, which leads to the finding of alternatives between products that can be
acquired with their relative advantages and disadvantages. This leads to internal and
external research. Then follows a process of decision-making for purchase and using the
goods, and then the post purchase behavior which is also very important, because it gives
a clue to the marketers whether his product has been a success or not. Consumer behavior
is a complex, dynamic, multidimensional process, and all Marketing decisions are based
on assumptions about consumer behavior.
Marketing strategy is the game plan which the firms must adhere to, in order to
outdo the competitor or the plans to achieve the desired objective. In formulating the
marketing strategy, to sell the product effectively, cost-benefit analysis must be
Undertaken.
There can be many benefits of a product, for example, for owning a motor bike
one can be looking for ease of transportation, status, pleasure, comfort and feeling of
ownership. The cost is the amount of money paid for the bike, the cost of maintenance,
gasoline, parking, risk of injury in case of an accident, pollution and frustration such as
traffic jams. The difference between this total benefit and total cost constitutes the
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customer value. The idea is to provide superior customer value and this requires the
formulation of a marketing strategy. The entire process consists of market analysis, which
leads to target market selection, and then to the formulation of strategy by juggling the
product, price, promotion and distribution, sothat a total product (a set of entire
characteristics) is offered. The total productcreates an image in the mind of the consumer,
who undergoes a decision process which leads to the outcome in terms of satisfaction or
dissatisfaction, which reflects the sales and image of the product or brand.
Brand Awareness
There are many ways of defining brands. This is due to the fact that branding is a
complex concept and hence can be interpreted variously, depending upon the perspective.
However, one of the simplest of all definitions is the following:
Brand = Product + Images
By this definition, brand is the amalgamation of a product and the images that it
conjures. These images may be the result of the product itself(both core and augmented),
its usage advertising and marketing activities, brand personality, the parent company and
its reputation, companys employees, media reports regarding the brands etc., over time,
exposure to these results in the creation of a brand
The American Marketing Association has defined a brand as, a name, term,
sign, symbol or design, or a combination of them, intended to identify the goods or
services of one seller or group of sellers and to differentiate them from those of
competitors
In general, awareness describes peoples perception and cognitive reaction to a
condition or event. Awareness doesnt necessarily imply understanding as it is an
abstract concept. Awareness may be focused on an internal state, such as an instinctive
feeling, or an external events such as sensory perception.
Brand awareness is a capacity of consumers to recognize or remember a brand,
and there is a linkage between the brand and product class but the link doesnt have to be
strong.
Brand awareness is a process from where the brand is just known to a level when
the consumers have put the brand on a higher rank; the brand has become the top the
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mind (Aaker,1991). Brand awareness is much about communication. This is how Aaker
(1991, p63) explains the awareness and recall of a name; A name is like a special file
folder in the mind which can be filled with name related facts and feelings. Without
such a file readily accessible in memory, the facts and feelings become misfiled, and
cannot be readily accessed when needed.
The likelihood that consumers recognize the existence and availability of a company's
product or service. Creating brand awareness is one of the key steps in promoting a
product.
Brand awareness is an important way of promoting commodity-related products.
This is because for these products, there are very few factors that differentiate one
product from its competitors. Therefore, the product that maintains the highest brand
awareness compared to its competitors will usually get the most sales.
For example, in the soft drink industry, very little separates a generic soda from
a brand-name soda, in terms of taste. However, consumers are very aware of the brands
Pepsi and Coca Cola, in terms of their images and names. This higher rate of brand
awareness equates to higher sales and also serves as an economic moat that prevents
competitors from gaining more market share.
Brand Awareness:
In general, awareness describes peoples perception and cognitive reaction to a Condition
or event. Awareness does not necessarily imply understanding as it is an abstract concept.
Awareness may be focused on an internal state, such as an instinctive feeling, or on external
events such as sensory perception Marion and Booth (1997) give good examples of awareness:
People have earlier experience of a certain situation and are aware of that. They are also aware of
who they are, the background to the circumstances, where being located as well as the emotions to
the place, what time of year it is and what day it is, and also what to do the rest of the day. Even
though, there is awareness of everything at the same time, the intensity varies. Peoples' awareness
is reshaping its structure constantly, and what we call awareness is the sum of the individual's
experience. So it is possible to do one thing while still be aware of many other things. Brand
awareness is the capacity of consumers to recognize or remember a brand, and there is a linkage
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between the brand and the product class, but the link does not have to be strong. Brand awareness
is a process from where the brand is just known to a level when the consumers have put the brand
on a higher rank; the brand has become the "top of mind"(Aaker, 1991).
Anchor to which other associations can be attached is when a new product has to work to win
recognition, because there are few purchase decisions that can be done without knowledge about
the product. Moreover, without attained recognition it is difficult to learn about the character and
advantages of the new merchandise. With product identification it is easy to create a new
relationship to the item. The explanation of familiarity/linking is that people like familiarity, and
knowledge make the product and brand more well-known and familiar. This contains most of all
low-involvement products like sugar, salt, paper towels, when the knowledge about the brand
often makes the buying decision. The positive association between the number of experience and
linking has been shown in studies. The incentives to this relationship are for example non-
figurative pictures, names and jingles. Substance/commitment can be seen in name awareness
which means existence, promise and matter; things that are important for the buyer. The
consumers do not have to know a lot about the company, but as long as the buyers have positive
brand awareness they will buy the product.
In some cases, the brand awareness and understanding can depend on a buying situation and do all
the effort for consumers in a buying process. The level of brands to consider is the first level to
reach. When buying merchandise is to choose a collection of trade names to consider - a
"consideration set" (Aaker, 1991).
Brand awareness is much about communication. This is how Aaker (1991, p 63) explains the
awareness and recall of a name: "A name is like a special file folder in the mind which can be
filled with name-related facts and feelings. Without such a file readily accessible in memory, the
facts and feelings become misfiled, and cannot be readily accessed when needed." Brand
awareness is dependent upon both the situation and the level of achieved awareness.
Figure Levels of brand awareness:
1. Brand recognition:
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This level is the first stage of brand awareness. It is when the consumers can recognize a specific
brand among others; "aided recall". Aided recall can also be explained as a situation where a set of
given brand names from a given product class is shown. The task is then to identify the recognized
names. Brand recognition is major when consumers face the buying procedure.
2. Brand recall:
This is upon the consumers to name the trademark in a product class. Apart from level one, this is
an "unaided recall" since there are not given any examples of specific brands. The role of brand
recall can also be vital for regularly purchased products like coffee, detergent, and headache
remedies, for which brand decisions usually are made prior going to the store. Further on, in some
categories (such as cereal) there are so many recognised alternatives that the shopper is
overwhelmed.
3. Top of mind:
A brand that is "top of mind" is the first brand that consumers think of within a given product class
(Aaker, 1991). Brand awareness is important since a lot of the consumers feel that if the brand is
well known it has good quality. Most important is not that the brand is well known, it is what it is
known for (Melin, 1999).
Further, awareness is a very important brand advantage, but it cannot sell the product, especially
not if the product is new (Aaker, 1991).
In the literature there are many facts that show that brand awareness affects consumer choice
and thereby their choice of brand. Lin and Chang (2003) found by their research that brand
awareness had the strongest effect on purchase decision on habitual behavior of low involvement
products. They also wrote that Hoyer and Brown (1990) examined the role played by brand
awareness in consumer decision making process and found that it was a dominant factor.
Likewise, Jiang's (2004) investigation also shows that brand name, in other words recognition of a
brand, has an impact on consumers' choice.
Achieving Brand Awareness
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Recognition and recall in attaining awareness, engage two responsibilities: to increase the brand
name identity as well as linking the characteristics to the item. This is in particular vital when the
product is new (Aaker, 1991).
Aaker (1991) has set up the following factors concerning how to achieve brand awareness:
Be different, memorable: Today, many products seem alike and the communication inthe product clusters is related. Therefore, it is important to differentiate the product, although,
the bond between the product class and the brand has to exist for easier recognition.
Involve a slogan or jingle: There can be a stronger linkage between a slogan and a brand
because it involves a visual feature of the brand. By this, the jingle or slogan is powerful and can
make a big change.
Symbol exposure: It is important to have a known symbol, because it is easy to memorize and
recall a visual illustration. A logo, either an already existing one or a developed one, which is
connected to the brand, can take a huge part in forming and keeping awareness.
Publicity: Advertising is a proficient way to get publicity and make awareness, since it can be
customized to the communication and the addressees.
Event sponsorship; the primary role of most event sponsorship is to create or maintain
awareness.
Consider brand extensions: To show the name or the logo on the products, and make the name
more prominent, is one way to increase brand recall. Examples of names that can be found,promoted, shown and publicized on other products, than the key product, are Coca-Cola, Heinz
and Sunkist.
Using cues: The package is one of the most important cues to a brand, since that is what the
purchaser sees when buying the product. If not knowing the brand or the product, the only contact
to the brand is the package.
Recall requires repetition: It is easier to build up recognition than to build up recall of a brand.
It can be compared to the fact that one can recognize a face of a person but do not recall the name.
Therefore the link between the brand and the product class needs to be stronger and the brand
needs to be more prominent than in the recognition of the brand. To receive a top of mind recall is
even harder.
The recall bonus: To keep a top position through regular publicity creates brand awareness as
well as a strong brand which in turn leads to decreasing recall of competitive brands.
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BRAND CUSTOMER RELATIONSHIP:
The relationship between brand and customers is a complex one. The purpose of brand
marketing is more than attraction, acquisition and retention of customers. It is necessary
to build a long-term relationship between brand and customer as it is portable for both the
parties. While building a long-term relationship with customers ensures a steady stream
of income, a consistent market base and, stability in share market, for the company. For
consumers, besides the utilitarian value of having to dispense with the time and money
spend in searching for new brands, there are other social and emotional values that brands
provide. A meaningful relationship is one where in both the customers and the brand
provides value to each other. Customers view brands as a means of self expression and
hence brands need to exploit the idea by developing closer links with its target audience,
who share similar values and beliefs
Loyalty and faithfulness are just one aspect of brand customer relationship and
signal a servile attitude of customers towards brands. This is not always the case, infarct
many a times the relationship between brand and customer is more like that of a friend or
an advisor. For instance Perk, establishes a fun and friendly sort of relationship with its
customers. Amicable Preity Zinta with her usual bubbly self personifies the brand which
carries the tag line 'Kahin bhi, kabhi bhi'. Kotak finance communicates its
accommodating and adaptive advisors' image through its commercials promisingpersonalized financial advice.
BRAND LOYALITY
All brand marketers want their brands to command a high degree of brand loyalty
the desire of having a large set of brand loyal customers is ultimately linked to long term
profitability of the brand. It is a well-know fact that profits accrue mainly due to repeat
purchases and brand loyal customers are known to make frequent purchases of theirfavorite brands, leading to a steady stream of profits from comparatively lesser outlays on
advertising and promotions. But with thousands of brands vying for consumers limited
mind space, achieving this elusive level of brand loyalty seems to be QUITE impossible.
Yet brands have large brand following and in certain cases customers refuse to buy any
other brand in case the desired brand is not available. This chapter examines and analyzes
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the cause of brand loyalty and the strategy for and means of nurturing and developing
loyalty among consumers
SCOPE OF THE STUDY
Information about benefits availed by the insurance/investment plan was gathered
by brochures and company website and also through inputs given by my corporate guide
who manages business for HY3S branch in Hyderabad.
The study was conducted for the period of two months i.e., from 16th March to 6 th
May, 2011.
OBJECTIVES OF THE STUDY
To know consumer investment behavior towards insurance industry in generaland Kotak Life Insurance in particular.
To know the factors influencing consumer perception towards Kotak LifeInsurance.
To know the brand awareness and brand recall of Kotak Life Insurance. To study the consumer preferences towards insurance products.
RESEARCH METHODOLOGY
It consists of information to find out the behavioral pattern of end consumer in insuranceindustry.
The primary data was collected from the respondents who were selected throughconvenience method of sampling and contacted by a well designed questionnaire and alsoby personal interview.
The secondary data was collected through various sources such as company reports,industry reports, magazines, journals, company website and other sources of information.
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The sample size chosen for my study was 200.
The data thus collected was tabulated and analyzed by using various statistical tools and
interpreted through graphs and charts for drawing findings and suggestions.
LIMITATIONS OF THE STUDY
1. The sample size considered for the study was only 200 which may not representthe total population.
2. The study is restricted to insurance products only.3. The study is confined to selected Hyderabad city only.4. The study conducted for a limited period of two months.
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CHAPTERII
INDUSTRY PROFILE
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Insurance Business is divided into four classes:1. Life insurance2. Fire insurance3. Marine insurance4. Miscellaneous insurance
BRIEF HISTORY OF LIFE INSURANCE
Insurance has been known to exist in some from or other since 3000 BC. The great fire ofLondon in 1666, in which more than 13000 houses were lost, gave a boost to insuranceand the first fire insurance company, called the fire office, was started in 1680.
In India, insurance began in 1818 with life insurance being transacted by an Englishcompany, the oriental life insurance co.Ltd. The first Indian insurance company was theBombay mutual assurance society Ltd, formed in 1870 in Mumbai. This was followed by
the Bharat insurance Co. in 1896 in Delhi, the Empire of India in 1897 in Mumbai, theUnited India in Chennai, the National, the National Indian and the Hindustan cooperativein Kolkata.
By the year 1956, when the life insurance business was nationalized and the lifeinsurance corporation of India (LIC) was formed on 1st September 1956, there were 170companies and 75 provident fund societies transacting life insurance business in India.After the amendments to the relevant laws in 1999, the LIC did not have the exclusiveprivilege of doing the life insurance business in India. By 31.8.2007, sixteen new lifeinsurers had been registered and were transacting life insurance business in India.
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INSURANCE IN INDIA
Insurance may be described as a social device to reduce or eliminate risk of life andproperty. Under the plan of insurance, a large number of people associate themselves bysharing risk, attached to individual.
Insurance is actually a contract between 2 parties whereby one party called insurerundertakes in exchange for a fixed sum called premium to pay the other party happeningof a certain event.
Insurance is a contract whereby, in return for the payment of premium by the insured, theinsurer pay the financial loses suffered by the insured as a result of the occurrence ofunforeseen events.
Marks a significant change and growth of India Insurance industry scenario. Monopoly ofpublic sector insurance company marks an end and private companys makes inroad.
Foreign companies, both life and general flocked, collaborated and helped astronomicalgrowth of Insurance industry in India.
India insurance growth was long overdue. The public sector giant LIC started losing itsmarket share at the cost of stupendous growth of private players. Now India insuranceindustry has more than a dozen private life insurance players and 9 private generalinsurance companies. Aggressive and penetrative marketing strategy coupled with wideproduct bandwidth was an instant success among the ignorant masses. Most of the privatecompanies registered more than 100% growth till then and are still continuing with such
Monstrous growth figures. Although, insurance in India is not regarded as a basic need
but it getting popular among semi urban to rural masses.
Life insurance products cover risk for the insurer against eventualities like death ordisability. Non life insurance products cover risks against natural calamities, burglary,etc. They are not as popular as life products in the insurance India portfolio. Until veryrecently it had only corporate buyers, but with natural disasters like, earth quakes,tsunamis, storms and floods becoming more frequent and damaging there has been asudden spurt in sales of general insurance among individuals. Consumerism of life stylegoods and modern amenities has also contributed to its growth. With more awareness andwide bandwidth of insurance and wide bandwidth of insurance product portfolio thegrowth for India insurance story will only get more competitive and more affordable to
all sections of Indian society.
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Facts and Details:
With the largest number of life insurance policies in force in the world ,Indias insuranceindustry sector accounted for 4.1 percent of GDP in 2006-07,up from 1.2 percent in1999-2000 , far ahead of china where insurance accounts for just 1.7 percent of the GDP.
One area that continues that continues to cause concern is the number of customergrievances in insurance, especially in a few specific classes .This calls for moretransparency in designing the contract wording and on insisting that the applicant issufficiently informed about the coverage and more particularly the exclusions. Inaddition, the legislation itself requires to be transformed to meet the need of the emergingmarkets.
Indian insurance companies recorded a 19.9 percent growth in premium in dollar terms(adjusted for inflation) in 2006-07, compared to the world market growth rate of 2.9percent. This rate of growth of the industry looks particularly impressive when seenagainst the fact that the combined penetration of both life and non life is less than 2
percent of the GDP compared to the world average of 7.52 percent. Clearly the scope ofgrowth is enormous.
Led by the life insurance corporation (LIC), the life insurance industry registered agrowth of 110 percent in fiscal 2006-07, taking the total business of us$ 19.2 billion fromthe previous year US$ 9.1 billion. The life insurance market has grown rapidly over thepast six years, with new business premiums growing at over 40 percent per year owing tothe entry of a host of new players with significant growth aspirations and capitalcommitments.
Insurance in India has been spurred by product innovation, streamlining of sales and
distribution channels along with targeted advertising and marketing campaigns.
The kids insurance segment in the insurance sector is witnessing increased activity,
childrens products such as ICICI prudential life smart kid, Birla sun life children Dream
plan , or HDFC standards life young star plus , are a consistent growth path. According
to the industry estimates, currently, 20 30 percent of business of any companies comesfrom childrenspecific insurance policies alone.
Emerging lifestyle trends amid a changing fabric of the Indian society have also modifiedsocial and financial behavior. For instance, an increase in the number of working womenhas led to a demand for life insurance policies, which in turn has helped women through a
micro- entrepreneurship initiative (women have flexibility managing home and beingfinancially independent as distributor of insurance).
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The rapid growth of insurance industry, especially in the life segment has brought to thefore a number of issue which is vital link between the insured and insurer. In order tospread the message of insurance to the far corner of the country, the IRDA has enlargedthe scope of the intermediaries structure from the traditional tied agent to the corporateagent, micro insurer agent, the Bancassurance mode and the referral system. Insurer have
also adopted other channels of sales to suit e-selling such as computer points atconvenient locations, on line insurance purchase etc.
Insurance companies are rated by various agencies such as A. M. Best. The ratingsinclude the company's financial strength, which measures its ability to pay claims. It alsorates financial instruments issued by the insurance company, such as bonds, notes, andsecuritization products.
Reinsurance companies are insurance companies that sell policies to other insurancecompanies, allowing them to reduce their risks and protect themselves from very largelosses. The reinsurance market is dominated by a few very large companies, with huge
reserves. A reinsure may also be a direct writer of insurance risks as well.
Captive insurance companies may be defined as limited-purpose insurance companiesestablished with the specific objective of financing risks emanating from their parentgroup or groups. This definition can sometimes be extended to include some of the risksof the parent company's customers. In short, it is an in-house self-insurance vehicle.Captives may take the form of a "pure" entity (which is a 100% subsidiary of the self-insured parent company); of a "mutual" captive (which insures the collective risks ofmembers of an industry); and of an "association" captive (which self-insures individualrisks of the members of a professional, commercial or industrial association). Captivesrepresent commercial, economic and tax advantages to their sponsors because of the
reductions in costs they help create and for the ease of insurance risk management andthe flexibility for cash flows they generate. Additionally, they may provide coverage ofrisks which is neither available nor offered in the traditional insurance market atreasonable prices.
There are also companies known as 'insurance consultants'. Like a mortgage broker, thesecompanies are paid a fee by the customer to shop around for the best insurance policyamongst many companies. Similar to an insurance consultant, an 'insurance broker' alsoshops around for the best insurance policy amongst many companies. However, withinsurance brokers, the fee is usually paid in the form of commission from the insurer thatis selected rather than directly from the client.
The financial stability and strength of an insurance company should be a majorconsideration when buying an insurance contract. An insurance premium paid currentlyprovides coverage for losses that might arise many years in the future.
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CONTROVERSIES:
1. Insurance insulates too much: By creating a "security blanket" for its insureds, aninsurance company may inadvertently find that its insureds may not be as risk-averse asthey might otherwise be (since, by definition, the insured has transferred the risk to the
insurer,) a concept known as moral hazard. To reduce their own financial exposure,insurance companies have contractual clauses that mitigate their obligation to providecoverage if the insured engages in behavior that grossly magnifies their risk of loss orliability.
2. Complexity of insurance policy contracts: Insurance policies can be complex and somepolicyholders may not understand all the fees and coverages included in a policy. As a
result, people may buy policies on unfavorable terms. In response to these issues, manycountries have enacted detailed statutory and regulatory regimes governing every aspectof the insurance business, including minimum standards for policies and the ways inwhich they may be advertised and sold.
3. REDLINING: Redlining is the practice of denying insurance coverage in specificgeographic areas, supposedly because of a high likelihood of loss, while the allegedmotivation is unlawful discrimination.
Functions of insurance:
The functions of insurance can be bifurcated into three parts:
1. Primary Function2. Secondary Function.3. Other Function.
The primary functions of insurance include the following:
1. Provide protection: It provides protection against future risk, accidents andUncertainty. Insurance is actually a protection against the economic losses, by sharing
the risk with others.
2. Collective bearing of risk Insurance is a device to share the financial loss of few
among others.
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3. Assessment of Riskinsurance determines the probable volume of risk by evaluatingvarious factors that give risk to risk. Risk is the basis for determining the premium ratealso.
4. Provide certainty- insurance is a device, which helps to change from uncertainty to
certainty. Insurance is device whereby the uncertain risks may be made more certain.
The secondary functions of insurance include the following:
1. Preventive of losses- Insurance cautions individuals and businessmen to adopt suitabledevice to prevent unfortunate consequences of risks by observing safety instruction,installation of automatic sparkler or alarm systems etc.
2. Small capital to cover larger risks- Insurance relieves the businessmen from securityinvestments, by paying small amount of premium against larger risks and uncertainty.
3. Contribute towards the development of larger industries insurance providesdevelopment opportunity to those larger industries having more risks in their setting up.
The other functions of insurance include the following:
1. Means of savings and investment - Insurance serves as savings and investment,insurance is a compulsory way of savings and it restricts the unnecessary expenses by theinsureds.
2. Source of earning foreign exchange Insurance is an international business. Thecountry can earn foreign exchange by way of issue of marine insurance policies andvarious other ways.
3. Risk free tradeinsurance promotes exports insurance, which makes the foreign traderisk free with the help of different types of policies under marine insurance cover.
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CHAPTERIII
COMPANY PROFILE
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Kotak Mahindra Old Mutual Life insurance is a joint venture between KotakMahindra bank Ltd and Old Mutual Plc. The company is one of the fastest growinginsurance companies in India and has shown remarkable growth since its inception in2001.
Kotak Mahindra Group believes in offering its customer a life time of value. Acommitment that has made it a leading financial services group employing around 17,100people in its various businesses and has a distribution network of 1,250 branches,franchisees, representatives offices and satellite offices across 344 cities and towns inIndia and offices in New York , London , Dubai , Mauritius and Singapore . The groupservices around 3.6 million customer accounts.
Old Mutual Plc is an international savings and wealth management company based inUK. Originating in South Africa in 1845, it is among the top 50 largest companies in theFTSE 100. The group has a balanced portfolio of businesses offering asset management,Life assurance Banking and general insurance services in over 40 countries, with a focus
on South Africa, Europe and the United States and a growing presence in Asia pacific.Old Mutual Plc employees approximately 53,000 employees worldwide and is listed onthe London and Johannesburg stock exchange.
Vision:
1. Global Indian Financial ServicesGlobal Standard of delivery to Customer.2. Most preferred employer/ business partnerhome for bright minds and entrepreneurialskills.3. Most trusted financial services company high standard of compliance/ corporate
governance, value and not just size.
Future Strategy:
As a joint venture of leading financial services group,Kotak Life insurance has the finalexpertise required to manage all long term investment safely and efficiently of all thecustomer.
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PRIORITIES:
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Maintain and strengthen capital position
Streamline portfolio over time
Leverage scale in long term savings businesses
Drive value creation in $ between south African businesses
Strengthen governance $ risk management.
Mission of Kotak:
To be a leading, preferred service provider to our customer , and to achieve thisleadership position by building an innovative , enterprising , and technology driven
organization which will set the highest standards of service and business ethics.
Kotak offers trading on a vast platform; National stock exchange, Bombay stockexchange and Hyderabad stock exchange. More importantly, Kotak makes trading safe tothe maximum possible extend by accounting for several risk factors and planningaccordingly. Kotak is assisted in this task by their in depth research, constant feedbackand sound advisory facilities
Values:
All our business subscribe to a set of common group values of Integrity, Respect,Accountability and Pushing beyond boundaries.
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About the Competitors:
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HDFC standard life insurance is the 1st most recalled brand in India and this is the maincompetitors, next is the ICICI Pru which is the 2nd recalled brand.
But the main competitors for these companies are the Life Insurance Policy (LIC), where
they could not beat this company in selling the traditional life insurance policies. Butthese were successful in selling Taylor policies.
Each company follows the different strategy:
-HDFC targets the mass market comprised of retail customers in the low and mediumincome group for its insurance products.
- Whereas Kotak Life insurance target middle and higher income group people.
Here, in this Life insurance companys technology is not of that use but these companies
require manpower in more power not only to create awareness in the market but also togenerate profiles.
Achievements:
1.19 Dec 07 Kotak product top performer.2. 19 Dec 07 Kotak platinum plan top performing ULIP
3. 23 Nov 07 Kotak aims Rs 1100 crore business premium4.01 Nov 07- Kotak Life is 100th branch.
Products at a Glance:
Kotak offers a range of carefully selected insurance policies across the entire spectrum oflife insurance products. The relationship managers will analyze the insurance needs anddevelop the solution that works best for the customer.
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Here are some of the products offered by Kotak life insurance:
Kotak smart advantage planKotak external life planKotak head start child plans
Kotak safe investment plan IIKotak flexi planKotak easy growth planKotak capital multiplier planKotak term planKotak preferred term planKotak child advantage planKotak retirement income planKotak retirement income plan(unit linked)Kotak endowment planKotak money plan
Kotak premium return planRiders
1. Kotak smart advantage plan:
Kotak Life Insurance introduces Kotak Smart Advantage, a great combination ofinvestment with insurance, to put your savings to work today. It is a market linked planwith 100% premium allocations helping you accumulate wealth systematically, over thelong-term. This plan offers the following key benefits:
Guaranteed returns of up to 275% of your first year premium at maturityAssured bonus additions at regular intervals during the policy term to enhanceyour fund value100%1 allocation of your premiums from second year onwards to maximize yourearnings potentialA unique fund offering you the maximum opportunity for growthOption to maximize protection for your loved onesApplicable for premium sizes of Rs.36, 000 and above annually from second yearonwards.
2. Kotak external life plan: Kotak Eternal Life Plans are participating whole life plansthat provide enhanced protection till the golden age of 99. The plans provide for a highcover at lower premiums, cash lump sum benefits at desired stage and a way to care foryour spouse in the second innings of life.
16With guaranteed protection for life, opportunity to create wealth, and comprehensivecover options, these plans provide you with a perfect financial solution to suit your needs.What can Eternal Life do for you?
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i. Provides customer with lifelong protection which continues well beyondretirement to ensure that the loved ones remain secure, irrespective of theuncertainties in life.
ii. Enables a high amount of insurance cover at affordable premiums which takesinto account the growing responsibilities and keeps pace with the customer
increasing needs.iii. Offers liquidity for planned and unplanned needs so that you have access to yourmoney when you need it the most, adding to your comfort and security atimportant stages in life.
iv Presents options and solutions that suit your personal preference which enablesyou to make a decision that is more suitable and beneficial for you.
3. Kotak head start child plan: Every child is different. Each has their own set of
dreams and aspirations. As a parent you would like to provide your child with all thebuilding blocks that could develop his or her potential to the fullest. This could meanextra coaching or tuition for talented children, special training or equipment for naturalathletes or professional training for born singers.
Head start Child Plans - a specially tailored, cost-effective plan, aims to give yourchildren the financial means to pursue his or her dreams and live them. The plan offersthe following advantages.
Choice of 2 plan variantso Future Protecto
Assure Wealth Maximizes wealth while providing protection Joint life option Save for 2 children with one plan Additional bonus units Flexible Withdrawal
17
4. Kotak safe investment plan II: Kotak Safe Investment Plan II is a unit linked planthat combines the benefits of insurance and capital market returns into one. This plan
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from the stable of Kotak Life Insurance is a true reflection of the companys essence:
innovation that will benefit the investor. What makes investing in Kotak Safe InvestmentPlan II truly unique is that you enjoy a Guaranteed Maturity Value, with varying degreesof equity exposure depending on your risk appetite. So, if the market value of your unitsis higher, you reap the benefits with the peace of mind that whilst in a bear market your
investment is under-pinned by the Guaranteed Maturity Value. And theres more, thereturns are totally tax-free*.
15. Kotak Flexi plan: There may be times when you wish there was an answer to yourfinancial worries. A solution that allows you to take control of your investments. A wayto provide for your familys future goals and expenses, and to protect your family the
harsh uncertainties of life; be it death, disability or illness. Here is Kotak Flexi Planwhich is designed to do just this. It comes to you with the option of investing in sixprofessionally managed funds, allowing you to allocate your investment in a combination
of one or more funds, switch between them and take charge of your investments. Theplan aims to earn efficient returns over the long term and helps you plan for yourfinancial goals, with the comfort of a Guaranteed Maturity Value. More importantly, itensures that your loved ones are protected, if any unfortunate events were to takeplacea plan that gives you complete control.
6. Kotak Easy Growth Plan: Kotak Easy Growth Plans are single premium; marketlinked insurance plans that keep pace with your ever growing success. It not only helpsyou save for the future but also lets you reap rich benefits from the investments of your
choice. The undisputed advantage of these plans is its simplicity. This simplicity stemsfrom our clear understanding of what would appeal to a customer who is looking for ahassle free investment option.
7.Kotak Capital Multiplier Plan: The Kotak Capital Multiplier Plan is a participatingplan that is built in such a way that it allows your money to multiply, and gives you theflexibility of using this money the way you need it, in regular withdrawals. This is anendowment plan, which is very flexible, and has a lot of other in-built benefits.
18
8. Kotak Term Plan: Kotak Term Plan is a pure risk product that aims to cover your lifeat a nominal cost. You may want to take this plan to cover your outstanding debts like a
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mortgage, a home loan etc. Since this is a pure risk cover product, there are no maturitybenefits payables on survival. This is a non-participating plan
9. Kotak Preferred Term Plan: The Kotak Preferred Term Plan is designed to provideyou with reduced premium rates for a sum assured of Rs.10 lakhs and above. Only Males
over the age of 18 years, who do not use tobacco in any form. And females over the ageof 18 years are eligible for this plan.
10. Kotak Child Advantage Plan: The Kotak Child Advantage Plan is an investmentplan designed to meet your childs future financial needs. Its a plan that gives your childthe "azaadi" to realize his dreams. The plan is a participating plan with a 15-day free lookperiod.
11. Kotak Retirement Income Plan: The Kotak Retirement Income Plan is a savingsplan designed to meet your post-retirement needs. It is a plan that gives you "Jeene kiazaadi". It gives you the choice to remain independent even after retirement. The KotakRetirement Income Plan is a participating plan.
The plan comes in two forms: (i) With Cover (ii) Without Cover.
12. Kotak Retirement Income Plan (unit linked): How well you save and invest today
will make all the difference tomorrow between having to work and choosing to work.There is no better time than the present to plan for what should be the best years of life -your retirement. By the time you retire, costs of living would have increased substantiallymaking even the most basic commodities like milk and vegetables costlier by probablyfive times. Medical costs would have doubled or more.
An ideal retirement solution is the one that gives you complete flexibility and peace ofmind, not only while you save for your retirement but also after you retire. To help youplan towards the golden years of your life, we present to you the Kotak Retirement Plan(Unit-Linked).
19
An investment plan designed to secure your future, it assures that even though you havestopped working, your income does not. It is offered to you in three versions - RegularPremium, With Cover and Without Cover, in addition to a Single Premium version. Theregular premium options come with the Kotak "Seal of Guarantee"@. These plans have
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been designed to ensure that your money earns you handsome returns, safe from thevagaries of the capital market, so that you can retire comfortably and securely.
Please note that in these plans, the investment risk in the investment portfolio is to beborne by the policyholder. However, Kotak Life Insurance offers you a Basic Sum
Assured/ Guaranteed Maturity Value on the Regular Premium versions of this plan tosafeguard against the downside risk of falling markets.
13. Kotak Endowment Plan: Kotak Endowment Plan is a protection plan that coversyour life and at the same time ensures that your money does not lie idle. It invests aportion of your premium in financial instruments and ensures a considerable growth insavings. This is a participating plan (with profits).
14. Kotak Money Back Plan: The Kotak Money Back Plan not only covers your life, italso assures you a certain percent of the sum assured as cash payment at regular intervalsof every 5 years. It is a savings plan with the added advantage of life cover and regular
cash inflow. This plan is ideal for planning special moments like a wedding, your childseducation or purchase of an asset etc. This is a participating plan (with profits).
15. Kotak Premium Return Plan: This plan is a sure and secure insurance optionwithout the hassles or worries of a conventional insurance plan. With minimal paperworkand procedures, you get the dual benefit of a risk cover and savings. At the end of theterm, a minimum of the premiums paid by you will be returned depending on the optionyou choose. In other words, this is a term plan that makes financial sense by offeringmaturity benefits as well.
16. Riders: Every person has a different need and we at Kotak Life Insurance recognizethis. To give you the flexibility to customize and enhance your cover, we offer a set ofriders which you may opt for along with your basic policy and shape your policy to suityour individual needs.
The riders may be availed of at the time of purchasing the plan, at a nominal cost. Themaximum amount of benefit you can avail is equal to the basic sum assured. Theaggregate premium on all value-ads should not, however, exceed 30% of the basicpremium.
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CHAPTERIV
DATA ANALYSIS & INTERPRETATION
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0
20
40
60
80
100
Age Group of Respondents
% of Respondents
Table 4.1: Age Group of the respondents
Sl. No. Age Group No. of Respondents % of Respondents
1 0 0
200 100
Intrepretation: In my survey most of the age group fall in between 18 35 i.e. 174
respondents out of 200 sample followed by 36 45 i.e. 17 in count and subsequently
proceeded by 4660 which is 5 in number and below 18 i.e. 4 in count. Lastly, none of
my sample is more than 60 age group.
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Table 4.2: Occupation of the respondents
Interpretation: In my survey, 94% of the respondents are salaried (188) and only 6%respondents are self-employed (12).
Occupation of the respondent
salaried, 188, 94%
self employed, 12,
6%
OCCUPATION, ,
0%
OCCUPATION
salaried
self employed
Sl. No. OccupationNo. of
Respondents
% of
Respondents
1 Salaried 188 94
2 self employed 12 6
200 100
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Table 4.3: Income Group of the Respondents
Sl. No. Income/month (Rs.) No. of Respondents % of Respondents
1 2 1
200 100
27
Interpretation: In my survey majority of the respondent fall into the salary profile inbetween 10001-2000 i.e. 82 in count, followed by 20001-40000 i.e. 56 in count andsubsequently followed by salary profile less than 10,000(41) and 40001-100000(19).Least in count is salary profile more than 100000(0nly2 in count)
Income Profile of the Respodent
41
82
56
19
2
0
20
40
60
80
100
Income/month
Count(response)
Counts
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Table 4.4: Awareness of different investment options
Sl. No. Investment Options Yes No
1 FIXED DEPOSIT 177 23
2 INSURANCE 184 163 MUTUAL FUNDS 145 55
4 BONDS 100 100
5 NSC 109 91
6 ULIP 96 104
7 EQUITY 81 119
Interpretation: This graph is included to find out the awareness of the different
investment mode to the consumer and from the survey it is found that maximum number
of people are aware of insurance and fixed deposit for which the number found are
insurance (184) and fixed deposit (177) therefore it is clearly seen that insurance and
fixed deposit are well known to the people. Followed by mutual fund (145) and bonds
(100), NSC (100). From the graph it is also seen that are not fully aware of UL IP (96)
and the least is equity (81). Therefore it is very essential for any insurance company to
make general customer aware of the entire investment mode to perform their business
well.
Respondent awareness towards different investment modes
177 184145
100 109 96 81
23 1655
100 91 104119
0
50
100
150
200
FIXEDDE
POSIT
INSURA
NCE
MUT
UAL
FUN
D
BOND
SNS
CUL
IP
EQUITY
Types of investment mode
count(Response)
AWARENESS YES
AWARENESS NO
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Table 4.5: Risk category preferred by the Respondents
Sl. No. Type of Risk No. of Respondents % of Respondents
1 Low 46 23
2 Medium 106 53
3 High 48 24200 100
Interpretaion: This graph is included to find out the risk preference taken by the
customer when they are going for investment. Here risk is directly proportional to return
and from the graph it is clearly seen that people are generally preferring medium risk and
medium return because that save them from heavy loss when the market is down and the
number is found out to be 106(53%) out of 200 in total and then comes high risk and high
return i.e. 48(24%) with close in number to low risk and low return i.e. 46(23%).
Risk Caterization
, 0%46, 23%
106, 53%
48, 24%
RISK CATEGORYLOW RISK
MEDIUM RISK
HIGH RISH
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Table 4.6: Customer prioritization towards investments
Sl. No. Investment Priority 1 2 3 4 Total
1 Return 89 68 29 14 200
2 Safety 79 62 49 10 2003 Tax benefit 22 46 68 64 2004 Insurance 9 25 54 112 200
Interpretation: This graph is included to find out what the customer look whileinvesting their money with any company and it is found that customer are generallylooking for good return on maturity of their money (89 out of 200) followed by safety(62) and tax benefit (68) and the least is insurance (112) which is the fourth choice for thecustomer.
Customer priorities while investing
89
68
29
14
79
62
49
10
22
46
68
64
9
25
54
112
0 50 100 150 200 250
1st
2nd
3rd
4th
Ranking
counting
Return Safety Tax benefit insurance
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Table 4.7: Awareness of ULIP as a combination of Equity & Insurance
Sl. No. Awareness No. of Respondents % of Respondents1 Yes 75 37.5
2 No 125 62.5
200 100
Interpretation: This graph is included to find out the awareness among the
people that ULIP is a combination of insurance and mutual fund and from the survey it is
found that 125 respondents out of 200 knows that ULIP is both the combination of
insurance and mutual fund(approx 62%) and out of which 75 respondents are not aware
of ULIP.
Awareness of ULIP is a combination of insurance and mutual
fund
75, 38%
125, 62%
YES
NO
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Table 4.8: Respondents preferences
Sl. No. Preference No. of Respondents % of Respondents
1 Government 168 84
2 Private 32 16
200 100
Interpretation: This graph tells about the customer choice in between the
government and private sector when they are likely going for their investment purpose.
And it is found that 168 respondents out of 200 prefer government sector that comes out
to be 84% and less in number are private sector which is only 34( i.e. 16%).
Preference for insurance industry
PREFERENCE, ,
0%
GOVERNMENT,
168, 84%
PRIVATE, 32, 16%
PREFERENCE
GOVERNMENT
PRIVATE
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Table 4.9: Awareness of Kotak Life insurance
Sl. No. Awareness No. of Respondents % of Respondents
1 Yes 167 83.5
2 No 33 16.5200 100
This graph is put to know the awareness level of Kotak Life insurance among thecustomer and from the survey it is found that maximum people are aware of the companywith 167 out of 200 in number. And still in my survey 33 respondent are not aware of
Kotak life insurance.
Awareness of Kotak life insurance
, 0%
167, 83%
33, 17%
KOTAK AWARENESS
YES
NO
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Table 4.10: Brand Image of Kotak Life insurance
Sl. No. Brand Image No. of Respondents % of Respondents
1 Premier 48 242 Medium 126 63
3 Low 26 13
200 100
Interpretation: This graph is included to find out the customer perception and brandimage of Kotak life insurance and majority of people (i.e. 128 out of 200) feel that Kotaklife is a medium segment company followed by 48 respondent feel that it is a premiersegment company and only 26 voted that it is an low segment company.
Brand image of Kotak Life Insurance
48
126
26
020406080
100120140
BRAND
IMAGE OF
KOTAK
PREMIER
SEGMENT
MEDIUM
SEGMENT
LOW
SEGMENT
Brand Image
Count(response)
Series1
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Table 4.11: Opinion on advertisement to promote insurance products
Sl. No. Opinion No. of Respondents % of Respondnets
1 Yes 192 962 No 8 4
200 100
Interpretation: This graph predicts that 192(96%) respondents out of 200 feelthat advertisement is very much essential element for any insurance company to sell their
products, to raise their brand image and to beat their competitors and only 4% respondent
feel that it is not that much essential.
Advertisement is important aspect of Insurance industry
, 0%
192, 96%
8, 4%
ADVERTISEMENT
YES
NO
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LIC
42%
ICICI
21%
Recall of Ads
Table 4.11: Most popular advertisement recall by the respondent:
Sl. No. Recall of Ads No. of Respondents % of Respondents
1 LIC 85 42.5
2 ICICI 41 20.53 HDFC 38 19
4 Others 36 18
This graph is included to analyze which company advertisements is generally recalled bythe customer and it is found that LIC headed the other company by 85 out of 200,followed by ICICI and thirdly HDFC .This are the top three brands which the customercould recall in their mind and then comes the other company advertisements which isonly 39.
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Yes
15%
No
85%
Awareness of Kotak Ads
Table 4.12: Awareness of Kotak advertisements
Sl. No. Awareness No. of Respondents % of Respondents
1 Yes 31 15.52 No 169 84.5
200 100
Interpretation: This graph is exclusively included to find out how many could
actually recall the advertisement of Kotak life and the response found to be very poor
where only 31 respondent out of 200 could say they could recall the advertisement for
Kotak whereas the rest could not able to recall any of the advertisement of Kotak life
which headed by 169 in number.
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Yes
66%
No34%
Preferences towards Kotak Life
Table 4.13: Consumer preferences towards Kotak Life:
Sl. No. Preference No. of Respondents % of Respondents
1 Yes 133 66.5
2 No 67 33.5
200 100
Interpretation: This graph predicts the interest of customer in investing their
money in Kotak life and the response says that out of 200 respondent 133 would like to
invest if given the best opportunity whereas 67(34%) respondent are not willing to invest.
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CHAPTERV
FINDINGS & SUGGESTIONS
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Findings:
1. From the above analysis, it is clear that awareness among the consumer for fixeddeposit (88.5%) and insurance (92%) are more than ULIP (48%) and Equity (40.5%).Therefore, table 4 shows the better understanding of different investment option available
in the market.
2. Majority of consumer preferred medium risk and medium return (53%), followedby high risk (24%) and thirdly low risk (23%), as on table 5.
3. From table 8, it is evident that only 37.5% respondents are aware of ULIP is acombination of mutual fund and insurance, whereas 62.5% are not fully aware of ULIP.
4. In Table 9, it exhibits the behavioral pattern of individual customer in the course of
making investment in either government and private sector, therefore from the analysis itis clear that 84% respondent preferred government sector whereas only 16% for private,even after having knowledge that LIC is not a government sector.
5. 83.5% respondents are aware of Kotak Life insurance as on above table 12, and also63% consumer feels that is a medium segment brand, secondly 24% for premium brandand thirdly 13% for lower brand.
6. From the above table 14, it is clear that advertisement is an important aspect ofinsurance industry. Where LIC advertisement are mostly recalled by the consumer(42.5%) followed by the other brands. Also, Kotak advertisements are known by only
15.5% of the total sample size.
7. 66% consumer preferred to invest with Kotak life if given a best opportunity to them.
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SUGGESTIONS
1. From the analysis it is seen that only 48% of the total survey are aware of ULIP,
therefore organization should organize insurance awareness weak like activities tospread awareness among the consumer.
2. From table 16, it is clear that only 15.5% of the total respondents are aware of Kotakadvertisement and therefore, company should increase their publicity by giving moreadvertisement through various media like television, newspaper, radio etc.
3. It has to concentrate on rural sector also.
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BIBLIOGRAPHY
www.kotaklifeinsurance.com www.indiainsuranceresearch.com www.limra.comJournals
1. DALAL Streetinvestment journalInvestment avenue for 2009 vol xxiv no 1 Dated 4th Jan 2009
2. Asia insurance post vol 9, Issue 8 march 2009.
41
http://www.kotaklifeinsurance.com/http://www.kotaklifeinsurance.com/http://www.indiainsuranceresearch.com/http://www.indiainsuranceresearch.com/http://www.limra.com/http://www.limra.com/http://www.limra.com/http://www.indiainsuranceresearch.com/http://www.kotaklifeinsurance.com/ -
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A STUDY ON CONSUMER PERCEPTION AND BRAND RECALL
IN INSURANCE INDUSTRY WITH REFERENCE TO
KOTAK LIFE INSURANCE
QUESTIONNAIRE
Name ___________________________ Gender ______ Contact __________________
Age Group < 18 1835 3645 4660 60 >
Occupation: - Salaried Self Employed
Income/Month :- < 10,000 10001200002000140000 40001100000 100000>
1. Do you think that insurance & investment are very important aspects of life?
Yes No
2. Which of the following investment options available in the market is known to you?
Fixed Deposit National Saving CertificateInsurance ULIPMutual fund EquityBonds Other please
specify_________________
3. Which risk category you like most to enter considering risk is directly proportional toReturn?
Low RiskMedium RiskHigh Risk
4. Kindly rank your preferences toward following investment options availableFixed deposit National saving certificateInsurance ULIP
Mutual fund EquityBonds Other pleasespecify_____________.
5. Please, rank your priorities while investing?Return SafetyTax Benefit Insurance
-
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6. Do you know that ULIP is a combination of Insurance and Mutual Fund benefits?
Yes No
7. Have you ever invested in any ULIP plan with any existing insurance companies?
Yes No
8. If yes, can you name the product in which you have invested?
Yes NoIf yes, please specify _______________________________________
9. Your preference while investing would be with
Government organization Private organization
10. Do you know that LIC is not a government organization now?
Yes No
11. Which company would you like to go with for your insurance & investment needs?
LIC Reliance life insuranceKotak mahindra life insurance MAX New York life
insuranceICICI Prudential life insurance MET life insuranceHDFC life insurance ING Vysya life insuranceSBI life insurance any other please
specify______
12. Which company would you like to go with for your investment needs? (Consideringthat all companies have same Benefits toyou)._______________________________________.
13. Are you aware of the company named as Kotak Mahindra Life Insurance?
Yes No
14. If yes, what do you think is the brand image of Kotak in existing market?
Premier segment BrandMedium segment BrandLower segment Brand
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15. Do you think that advertisement is an important tool for any insurance organizations?
Yes No
16. Do you remember any recent advertisement of any insurance company?
Yes NoIf yes, please specify_________________________________________.
17. Have you ever come across with any advertisement of Kotak Mahindra LifeInsurance?
Yes NoIf yes, please specify___________________________________________.
18. Given the best investment opportunity, would you like to go investing with Kotak?
Yes NoIf no, please specify_____________________________________________.
19. Please add any suggestion to Kotak life insurance?
Please specify _____________________________________________________