Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing

8/8/2019 Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing

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PROJECT REPORT

ON

MARKET POTENTIAL OF KOTAK MAHINDRA LIFEINSURANCE

FOR KOTAK MAHINDRA LIFE INSURANCE, PUNE

IN PARTIAL FULFILLMENT OFMASTER OF BUSINESS ADMINISTRATION

TOPUNE UNIVERSITY

Submitted By NITIN D. KAMBLE

Under The Guidance Of PROF. YUVRAJ LAHOTI

VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE. MBA(2004 -2006)


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ACKNOWLEDGEMENT

No study is big or small can be undertaken all by oneself.Behind this project too

is guidance of those individual people to whom I will be always grateful .

I express my deep sense of gratitude to Kotak Mahindra Group for giving me the

opportunity of doing this project in their well-renowned organization which otherwise

would not have been easy.

I am deeply indebted to Mr Nikhil Shah, Sales Executive in Kotak Mahindra Life

Insurance who selected me as a trainee to work with him and guided me throughout the

project. I am grateful and would like to express sincere thanks to my guide Proff. Lahoti

Yuvraj for their valuable suggestion and guidance throughout this project.

This tremendously helped me in execution of the entire Project.

Mr. Nitin Kamble(MBA 2004 -2006)


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DECLARATION

I undersigned Mr. Nitin Kamble hereby declare that the project report written and

submitted by me under the guidance of Proff. Lahoti is my original work. The empirical

findings and data collected in this report are based on the information collected by me

through fieldwork. I have not copied from any report submitted to any of the University/

Institution.

I understand that any coping is liable to be punishable by authorities.

Place:Pune

Date: Signature


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CONTENTS

Sr.No Title

01. Executive Summary

02. Introduction to topic

03. Scope and limitations

04. industry profile

05. Com pany Profile

06. Research Methodology

07. Data Analysis And Interpretation

08. Findings And Suggestions

09. Annexure

10. Conclusion

11. Bibliography


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EXECUTIVE SUMMARY

The objective of the project was to be Market research & find out the Market

Potential for Kotak Mahindra Life Insurance . For this we have to understand consumer

response, time frame, personality constraints and emotions for assessing the potential of

insurance sector. So specifically the target of the project is to focus of the high network

income groups and retailers for their investment portion.

Project involved a blend of marketing where we were to interact we all kinds of

retailers, wholesalers, real estate agents & other service group to gather information onsite and tell them what are the new opportunities that are with Kotak Mahindra Life

Insurance and tell them what are the benefits they will get if they insured with kotak

group.The main task of project involved carrying the fieldwork where we supposed to

visit all kind of retail outlets as well as non- retail business in major localities.

The first half of my project involved in Kotak is to carry the fieldwork along with

campaigning in different localities in Pune region. Data collected from fieldwork were

submitted to the company for future requirements and also to get back to the customers.

The study undertaken for two months. As I have to target specifically to retailers and

whole sellers who form the majority portion of the total market. We were given more

than one month for the collection of data and scanning of data. This report shows detail

work on following areas

- Pune Satara road

- Laxmi road

- Tilak road

- J.M. road

- Bibewadi area

- Market yard


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For this purpose Feedback form was prepared which gave a broader picture of

the people about their existence investment segments. The form shows details regarding

current savings and planning for their future events. Through this form we got to know

what people think about private insurance sector and get the idea about different flaws in

the insurance sector because it is seen that during interview few people had a idea about

private players in the insurance sector and their developments. The questionnaire contains

various aspects like profession, education, current savings, number of dependants,

addres s etc.

Second part of the study contains scanning the form/questionnaire making proper

evaluation of given information and going back to them showing how they need to plan

their future and the direction to achieve their desired goals. Though, many respond ents

did not give all the details regarding current savings.

For assessing the customer response following market research process followed

Step 1:Define the objective:

First step is defining the objective i.e. Market Potential for Kotak Life

Insurance researcher covered most of the areas, which had been instructed by the

company.

Step 2: Develop research plan:

The second step was to develop the most efficient plan for gathering the needed

information.

i) Data sources: Both primary & secondary data are taken into consideration.

Primary data are data gathered from field for specific research project.

ii) Research approach: I have mainly collected the primary data through survey

& few cases by observations.

iii) Research instrument: Questionnaire is used to collect most of the primary

data.


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INTRODUCTION TO TOPIC

Life insurance is a contract between you and a life insurance company, which

prov ides you a predetermined amount in case of your death, accidents or any

uncertain events during the contract term.

Buying insurance is extremely useful if one is the principle-earning member in

the family and unfortunate premature demise, your family can remain financially

secured because of the life that you have purchased.

The primary purpose of life insurance is therefore protection of the family for uncertain

events for future. Life insurance is also seen as a tool to plan effectively for the future

years, your retirement, education of the children s and their future needs. Today, market

offers insurance plans that not just cover you and your family but at the same time it

helps to grow your wealth too.

Life wasn t designed to be risk free. The key is not to eliminate risk, but to estimate it

Accurately and manage it wisely.

Insurance sector have characteristic that give can boost to the growth of any

economy .it is due to the savings done at the individual level and at micro level itgenerates funds for infrastructure building as the cash flow is constant while the payout is

differed, so that the insurance companies are becoming biggest investors in long gestation

infrastructure development projects and hence have a great Importance to the developing

economy like India. Insurance sector with an annual growth rate of 15-20% and the

largest number of life insurance policies in force, the potential of the Indian insurance

industry is huge.


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FIG.1 PREDICTED GROWTH SCALE OF INDIAN INSURANCE SECTOR

Total value of the Indian insurance market (2004 -05) is estimated at Rs. 450 billion

(US$10 billion). According to government sources, the insurance and banking services

contribution to the country's gross domestic product (GDP) is 7% out of which the gross

premium collection forms a significant part. The life Insurance industry in India grew by

an impressive 36%, with premium income from new business at Rs. 253.43 billion during

the fiscal year 2004-2005, braving stiff competition from private insurers. RNCOS s

report, Indian Insurance Industry: New Avenues for Growth 2012 , finds that the market

share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86

billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to

arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57

billion in 2004 -05 from Rs. 24.29 billion in 2003-04.

Introduction to the topic

The report discusses the work done by trainee Mr. Kamble Nitin student of

Vishwakarma institute of management. The purpose of training was to have practical


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experience of working in an organization. So the fieldwork was essential to get exposure

to various management prac tices in the field of marketing.

The main purpose of the project was basically to find the market potential for kotak

mahindra life insurance pune. It included extensive market surveys and meetingsmainly with the retailers, whole sellers and other merchants from different regions of

pune. The project is divided in two parts, for the first half is contains period of 30 days

in which I did research, surveys and meetings with the people to collect data. In the

later part I met various retailer, whole sellers, real estate agents, stockiest and few

others to promote and make them aware about the company.

The survey also helped to provide details regarding various opportunities and

different plans and policies that are coming up in the company. This was useful

information for them to get the benefits and to know future growth prospects if they

join with the company.

Importance of the topic

The topic gives broader picture about who is the market leader among all the

insurance providers. The study is all about finding out the market potential of kotak

mahindra life insurance for the pune region.

Kotak group recently launched Kotak Mahindra Life Insurance along with old

mutual plc. as join venture. There are already 13 private insurance companies in the

Indian market & what is the present position of kotak mahindra life insurance could be

determined by market research and fieldwork.

This data will be helpful to determine what are the pros & cons kotak is facing in the

market, how do people perceive kotak group as life insurance providers.


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SCOPE AND LIMITATIONS

Scope of the study

The study of potential of insurance business is concerned with market study i.e

research and fieldwork. This study is going to help the Kotak Life Insurance to find out

market potential with other companies. The study will help the company to assess their

performance and improve it where it is lacking.

Research work is a basic function carried out by each organization. The study of

market potential of insurance is very helpful to find out who are the market leaders in

private companies as well as overall analysis.

Availability of time was also taken into account while decid8ing the particular

method to meet the objectives. The entire study programmed was for the period of two

months.

The subject of the study was selected by looking the necessity and importance to

find the market potential and give suggestions related to the topic.

Limitations:

- One of the major limitations of this study was lack of sufficient time as the

subject was required lot of time.

- The time limit permitted to cover the major areas of Pune but not all the

regions of the city.

- The study limits itself only to Kotak Mahindra Life Insurance.


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INDUSTRY PROFILE

Five years after the life insurance sector was opened up to the private sector,

market scenario for all these companies in not very much exiting. Already over Rs.15000

crore has been invested in the sector by major and their foreign partners. But that isobliviously not enough, a few thousand crores more will be need ed.

Because almost of the 13 private sector life insurance companies are incurring

substantial losses. Some estimate suggests that private insurers made a combined loss of

almost Rs 1000 crore in 2003 -04.Things haven t changed much since.

- Bajaj Allianz Life Insurance, the second largest private sector life insurer,

posted a loss of Rs 76.8 crore in the first nine months of the current fiscal.

- Kotak Mahindra Life Insurance registered a loss of Rs 41.22 crores over the

same period.

- Birla Sun Life Insurance, which claims to be among the most efficient users of

capital, posted a loss before interest and taxation of Rs 60.03 crore for the year

ended 31 st March 2005.And just in the October-December quarter of

2005,Indias largest private sector insurer, ICICI Prudential posted a loss as the

others have run up in the first nine months of FY 06.

The losses itself are not a major concern. Such under spread losses are neither

abnormal, nor expected in the initial years. In this business, companies have to bear such

losses if they want to reap the substantial long-term profits. But profits are still many

years away.

At the moment, private sector life insurers are at a stage where any growth will

only add to their losses. In fact the insurance sector is seeing a strong g rowth -in terms of

penetration. Life insurance premium to GDP has grown from 1.8 percent to 2.3 percentwhile the per capita premium paid has more doubled from Rs. 280 to Rs. 600.

However, there is one big reason for alarm. Insurers do need access to substa ntial

capital in order to keep up this growth despite their initial losses. But many private sector


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insurers are struggling to raise the required capital. That s because the government has

not yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies

from 26 % of equity to 49 % as outlin3d by the previous government.

And because of 26 % FDI cap, the burden of funding the growth falls on theIndian promoter. The need for capital is even more crucial in the context of the (IRDA)

Insura nce Regulatory and Development Authority regulation on solvency margins. In

India, for every Rs 100 of claims payable to customers a life insurance company must

have assets worth Rs 150.

OPTIMISTIC INDIAN MARKET FOR INSURANCE SECTOR:

Indian market can be labeled as a untapped market, which in it s core holds immense

potential for growth. The hike in FDI from 26% to 49% .this increasing capitalparticipation of international insurers will accelerate the development of the Indian

insurance industry, through the greater deployment of technical competencies and

innovative products and processes .As

The purchasing power of Indian people is increasing, so we can predict that the no. of

customers who can afford to investment in health, life, disabilityand pension products is

going to increase up to great level.

According to SWISS Re Economic Research and Consulting.

0

50

100

150

200

250

300

1 2 3 4 5 619961998

2000

2002

2004

2006

2008

2010

2012

2014

Rs. Billion

Years

Fig. INDIAN INSURANCE GROWT FORCAST


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AREAS OF OPPORTUNITIES

1) New Horizons of investment

Insurance companies have shown an unquenchable thirst to offer customized

solutions Based on individual risk appetite of customers rather than mundane, one sizefits all endowenment. Based insurance products. We have a good example of ULIP

(Unit links Insurance Plan) by LIC. It is a single largest innovation in life insurance

industry. Life Insurance products are similar to investment product with less or risk

coverage, signifying changing preferences of investors. ULP s score over mutual funds,

since they offer risk-cover, as well as returns by investing in stock markets, even out

performing equity returns in certain instances. We can have the same plans from other

private players like Bajaj-Allianze i.e. equity plan funds, ICICI Prudential maximizer,

HDFC standard life growth fund. Total premium under return for unit-linked plans in the

financial year 2004-2005 stood at Rs. 82.47 billion, and outstanding growth of 422% over

the previous year.

2) Indian Rural Market

A large number of Indians lives in rural India, so this market should be tabbed by

insurance companies and it require a different approach of sales services with respect to

meeting such challenges as low awareness, irregular incomes and geographical distances.

The focus has to beon simple coverage and return of premiums. Very few companies have plans for rural

India.

3) Customized Solutions

Competitive insurance market exploring the new customer segments, it includes

pension plans and children plans. By 2026 India will have 179 million people who wear

above 60 years of age. According to that insurance companies should have a marketing

plan. Special children plans are the current requirements, as the education is becoming

more important and expensive. So such plans must be introduced by all insurance

companies. ICICI Prudential and LIC have already done this.


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II. WHAT IS NEEDED TO BE EXPLORERED?

1) The industry in general faces the challenge of building the credibility of being a

financial service provider while meeting a customer s expectation of what it means to be

a financial services company. Financial service brands are based on insuring long- termfinancial security throw a broad range of inherently risky services and investment

options. In the insurance sector, branding has typically involved the concept of stability;

trust and protection from risks in time of crises, or even protecting from a crises throw a

standard set of products. It will help to establish what insurers stand for and promise and

will eventually help to give a industry new image.

2) The altered scenario of the insurance market in India has brought in new and

differentiated products and services offerings to the public and has opened new

challenges for insurance companies. Devising specific strategies to reach out to specific

segments of the market, different countries and across social strata has been one aspect of

the challenge. The other more complex one has entailed designing the products,

marketing them, ensuring the smooth selling of products, collecting premiums, managing

claims, managing & investing the funds and managing a vast enterprise. This has created

a need of strong Risk Management.

3) The core function of the marketing force of an insurance company is to generate

awareness about the insurance products among the target market.

4) Branding the marketplace is similar to branding on a cattle ranch, the purpose of a

branding program to differentiate our cow from the cattle of range.

According to an article in the insurance marketing magazine, Feb-March 2002, brand

strategy is one of the most critical parts of the underlying business strategy of any

organization. It will help to establish what insurers stand for and promise and will

eventually help to give a industry new image. This positioning helps to give credibility to


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sell Risk-Free products design to help customers insure that their family and assets are

protected.

5) Branding is the new key challenge in the financial services industry. Life in the 21st

century will be longer with more choice in more fields of activity. The financial

consequences of an increased life span are particularly likely to be tough. Inevitably, this

will lead to more complexity, which in turn necessitates greater clarity and appeal from

the service providers. Branding is more relevant in the financial services market, which

not only faces the problem of securing and retaining customers in an increasingly

competitive marketplace but also experiences the need for heightened relevance of the

brand proposition in a world where brand has been termed the new religion.


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QUICK F ACTS:

- Second largest mobilizer of savings after banks.

- Constitutes 15 % of gross domestic savings after banks.

- Rs 400,000 crore of assets under management.

- Rs 40,000 crore invested in infer -structure

- Share of retail customers to total -92 %

- Agency force 15 lakhs

- No. Of policies in force: 20 crore

- Employees: 200,000

HISTORY

1912: The Indian Life Assurance Companies Act enacted as the first stature to regulate

the life insurance business.

1928 : The Indian Insurance Companies Act enacted to enable the government to collect

statistical information about both life and non -life insurance business.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central

government and nationalized.LIC formed by an Act of Parliament, viz. LIC

Act,1956,with a capital contribution of Rs.5 crore from the Government of

India.


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ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS.

Insurance sector is seeing a strong growth in terms of penetration, life

insurance to premium to GDP has grown from 1.8 percent to 2.3 percent while the per

capita premium paid has more than doubled from Rs 280 to Rs 600.Despite the fact thatIndia boosts a saving rat of around 25 percent, less than 5 percent is spent on insurance.

The insurance landscape in India is undergoing major changes. Close to

foreign competition since nationalization in 1956,the life insurance industry had been

protected from competitive pressures.

Now with the re-opening of the sector, several new players have entered

the scene. Besides, Kotak Mahindra Life Insurance there are 12 other private players

working in insurance sector which are as f ollows.

1.AMP Sanmar Assurance Company Ltd.

Indian Promoter Reliance Group

Foreign Insurer None

2.AVIVA Life Insurance Company Ltd.

Indian Promoter DABUR

Foreign Insurer AVIVA,UK

3.BAJAJ Allainz Life Insurance Company Ltd.

Indian Promoter BAJAJ Auto.

Foreign Insurer ALLIANZ, Germany

4.BIRLA Sun Life Insurance Company.

Indian Promoter ADITYA BIRLA Group

Foreign Insurer SUN LIFE, Canada

5.HDFC Standard Life Insurance Company.


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Indian Promoter - HDFC

Foreign Insurer Standard Life, UK

6.ICICI Prudential Life Insurance

Indian Promoter ICICI Bank

Foreign Insurer Prudential, UK

7.KOTAK MAHINDRA Life Insurance

Indian Promoter - KOTAK Bank

Foreign Insurer - OLD MUTUAL, South Africa.

8.Max New York Life Insurance Company

Indian Promoter MAX India

Foreign Insurer NEW YORK LIFE, US

9.MET LIFE Insurance Company

Indian Promoter J & K Bank

Foreign Insurer MET LIFE, US

10.SAHARA Life Insurance Company Ltd Indian Promoter SAHARA INDIA Ltd.

Foreign Insurer NONE

11 .SBI Life Insurance

Indian Promoter SBI

Foreign Insurer CARDIFF, France

12.TATA AIG

Indian Promoter TATA Group

Foreign Insurer AIG, US


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COMPANY PROFILE

THE KOTAK MAHINDRA GROUP

Kotak Mahindra is one of India s leading financial institutions, offering complete

financial solutions that encompass every sphere of life. Form commercial banking of

stock broking, to mutual funds, to life insurance, to investment banking. The group caters

to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 1,800 core and employs over 4,400

employees in its various business. With a presence in 82 cities I India and offices in New

York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the

world s largest investment banks and brokerage firms) and Old Mutual (a large

insurance, banking and asset management conglomerate).

Mr. Uday Kotak Executive Vice Chairman & Managing Director Mr. Shivaji Dam

Mr. C. Jayaram

Mr. Dipak Gupta

OUR MANAGEMENT FOR LIFE INSURANCE

Mr. Gaurang Shah (Managing Director) Mr. G Murlidhar (Chief Financial Officer) Mr. Nandip Vaidya (Vice President - Sales) Mr. Arun Patil (Vice President - Sale s & Management Development) Mr. Eksteen de Waal (Head Sales Training)


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OUR STORY

The Kotak Mahindra group was born in 185 as Kotak Capital Management

Finance Limited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this

company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and

that s when the company changed its name to Kotak Mahindra Finance Limited.

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discouting. 1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

1990 The Auto Finance division is started.

1992 The Investment Banking Division is started. Takes over FICOM, one of India s

financial retail marketing networks.

1992 Enters the Funds Syndication sector.

1995 Brokerage and distribution business incorporated into a separate companyKotak Securities. Investment banking division incorporated into a separatecompany - Kotak Mahindra Capital Company.

1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes significant stake in FordCredit Kotak Mahindra Limited, for financing Ford vehicles. The launch of

Matrix Information Services Limited marks the Group s entry into informationdistribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra AssetManagement Company.

2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business.

Kotak Securities launches kotakstreet.com it s on-line broking site. F ormal

commencement of private equity activity through setting up of Kotak Mahindra

Venture Capital Fund.

2001 Matrix sold to Friday Corporation Launches Insurance Services.

2003 Kotak Mahindra Finance Limited converts to bank.


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KOTAK MAHINDRA

A Lifetime of Value


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Old Mutual

Old Mutual was established more than 150 years ago and has developed

into an International services group w focused on asset gathering and asset

management. The old mutual Group offers a diverse range of financial services

geographics : South Africa, the United States and United Kingdom. The company is

listed on the London Stock Exchange capitalization of approximately $6 billon and is

member of the elite FSTS 100 index. In the 2003 rankings of the w corporations

Fortune magazine, Old mutual climbed 87 places to position number 366 and was

also listed 14th

company in the world.

Old Mutual is the largest financial services business in South Africa, through

its life insurance, asset management, and insurance operations. The company serves 4

million life insurance policyholders and employs over 13 000 South Africa

operations.

In the USA Old Mutual is one of the top ten fixed annui ty business offering an

array of specialist asset management. The company s US Life business recorded sales

of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management,

through Gerrard as one the leading private busi ness in the UK.

The Old Mutual Group has the ability to cater for variety of consumer

segments and offers a comprehensive and in products for all income groups.


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RESEARCH METHODOLOGY

INTRODUCTION:

Marketing Research is an systematic and objective study of the problems

pertaining to the marketing of the goods and services. It may be emphasized that it is not

restricted to any particular area of marketing, but is applied to all the phases and aspects.

METHOD OF DATA COLLECTION:

- Primary Data;

The major source for collecting primary data has been the interviews held with

retailers, whole sellers, real estate agents, stockiest and few other segment of market. The

maximum prospects were visited directly at the shops and interviewed provided they had

time to spare. Some of them interviewed via tele calling and few were interviewed after

taking prior permission and appointment. The information given by them was satisfactory

and relevant to the subject.

- Secondary Data: The sources of secondary data are;

INSTITUTION:

- Business Magazines

- News Paper

- Annual Reports / Company Periodicals

REFERENCES:

- Internet, Company websites

- Telephone Directory (BSNL and TATA Indicom)

- References from company employees

- Annual Reports / Company Periodicals


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QUESTIONNAIRE METHOD

This method is used to collect general information about the company like total

number of employees viz. agents, sales executive, management trainees, front line staff

etc. Sales executive provided this information. This information helped to know the basicknowledge about the company before doing the actual research.

RESEARCH DESIGN:

SAMPLING UNITS:

This combines all those respondents in the market who can be the future prospects

of being a part as an insurer of Kotak Mahindra Life Insurance. Some of them are

retailers, whole sellers, real estate agents, stockiest and few others from different

commercial areas of PUNE.

As instructed by the company - following are the few segments.

1.Business - Class

2.Agents General Insurance Agents

- Postal Agents

- Travel Agents

- Real Estate Agents

3.Service Class - Professor / Teachers

- Office Staff, Banks Staff

- Government Employees

4. Mutual Fund Agents

5.Tax Consultants

6. Investment Consultants

7. Share Brokers

8. Financial Advisors

9. Chartered Accountants / Company Secretaries

10. Others - House wife , Medical Representatives


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STEP 2

Out of these various segments, the researcher targeted following

- Retailers

- Whole sellers

- Stockiest

- Real Estate Agents

- Others

Note: It was instructed by the company to target the people having net income between

15000 and above. The required data for above segments is to be such, which is helpful to

know the background & potential of the prospects. For all that researcher collected

information as there,

Name

Present Age

Address

Ph No. -

E-mail-

- Brief Information about family

- Personal Goals

- Retirement Plans

- Present monthly expenses

- Existing Investment Avenues


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SAMPLE DESIGN

Sample size

(165 people)

Retailers (60) WholeSellers 43

Real EstateA ents 16

Stockiest (16) Others (30)


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DATA COLLECTION TECHNIQUES:

- Questionnaire Method

- Telephone Interview Method

QUESTIONNAIRE METHOD

The individual questionnaire of the survey was designed for population between

age group of 18 60 years of age who can be the prospect of becoming Kotak Mahindra

Life Insurance clients from different areas of PUNE. In total 165 questionnaires were

completed who were the samples for research work.

SAMPLE SIZE:

The sample size of the respondents was taken as 165 considering the scope andconstraints of the study.

FIELD WORK:

The fieldwork was conducted for a period of 60 days in different commercial

areas of PUNE. Interviews were conducted from respondents across segments, above 18

years of age and as per their convenience. So as to contrive representative sample. Th e

interview and presentation mode by researcher were carried for the duration of 20

minutes.


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DATA ANALYSIS AND INTERPRETATION

1. Investment options preferred by respondents.

Respondents Investments

20

20

228515

75Insurance

Fixed Depos it

Post

PPF

Mutual Fund

Shares

Daily Collection

Out of total respondents, maximum i.e. 75 respondents think Insurance is a

safer option to invest the money. It gives them long-term benefits for not only

individual but for the entire family. Thus, people find insurance safe and better

option rather than investing in FD, Post, Mutual Funds, Shares etc.

Sr. No Investment Options No. Of Respondents1 Insurance 752 Fixed Deposit 203 Post 204 PPF 225 Mutual Fund 8

6 Shares 57 Daily Collection 15

TOTAL 165


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2. Need of Life Insurance

Need of Life Insurance

Yes82%

No18%

Yes

No

Around 82 % of the total samples think that insurance is essential part of the life. But foreveryone the need for life insurance has different reasons.18 percent of the people think other options are better than life insurance . Following factors determine the need for lifeinsurance.

Still majority i.e. 82% people think that insurance is essential. However safety is major

concern when people see insurance as investment.

Yes 135 No 30 Total 165

Factors to determine need forL.I No. Of respondentsSecurity/Safety 55 Savings 15 Long term Investments 35 Tax Saving 30 Total 135


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3.Awareness about the Insurance Companies.

Insurance Companies No. Of respondents ICICI Prudential 115 Kotak Mahindra 65 Bajaj Allianz 95 Tata AIG 75 Max New York Life 35 HDFC 105 Aviva 60

Total 550

Awareness about Insurance Companies

115

659575

35

10560

ICICI PrudentialKotak MahindraBajaj AllianzTata AIGMax New York LifeHDFCAviva

Among all the private players in the market ICICI prudential and HDFC Standard Life

are among the most popular and known brands in the market. These two brands are way

ahead of the Kotak Mahindra Life Insurance and others. These two Life Insurance

companies do effective advertising that made them known brands in the market


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4. Reliable companies among the respondents.

Insurance Companies Respondents

ICICI Prudential 75 Kotak Mahindra 20 Bajaj Allianz 55 Tata AIG 40 Max New York Life 15 HDFC 60 Aviva 35 Total 300

Reliable Companies as per market

75

20

554015

60

35

ICICI Prudential

Kotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

Aviva

Among all the samples ICICI and HDFC are believed as the most reliable companies

among all the private companies in the market. Following are the factors that determine

why these two companies are preferred and believed by the people.


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Reliability Factors

18%

16%22%

26%

18%

Brand Name

Safety

Peer pressure

ROI

Previousexperience

People are positive about ICICI and HDFC as reliable companies because of their

Returns, Brand name, and Previous experience and also there is lot of peer pressure

among

Factorsdetermining

reliability Response Brand Name 45

Safety 40 Peer pressure 55 ROI 70 Previous experience 45 Total 255


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5. Present Insurance holders

Yes 145

No 20 Total 165

Insurance holders

0

100

200

respondents

Series1

Series1 145 20

Yes No

Insurance Companies Market Share LIC 85 ICICI Prudential 20 Kotak Mahindra 15 Bajaj Allianz 10 Tata AIG 8Max New York Life 17 HDFC 5SBI 5Total 80


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Market Share of each company

12%9%

5%

6%

10%

3%

52%

3%LIC

ICICI Prudential

Kotak Mahindra

Bajaj Allianz

Tata AIG

Max New York Life

HDFC

SBI

Among the total market share LIC still has majority share in market, holding 52% of the

total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and

HDFCareleaders


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6. Total Savings for Life Insurance.

Savings (Rs) Respondents

5000 -10000 47 10000 -20000 75 20000 -40000 31 >40000 12 Total 165

Savings

020406080

5000-10000

10000-20000

20000-40000

>40000

No Of Clients

S a v

i n g s

I n R u p e e s

Series1

Among the total respondents 75 people save anything between Rs. 10000 - Rs15000. Thus

we can say that still people are doing good amount of savings in insurance. It came to

know that all the respondents have some part of their savings in insurance.


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7.Benefits from Life Insurance Policy.

Benefits Responses Of Clients

Child Education 35 Personal Goals 90 Marriage 45 Retirement 85 Savings 75 Total 330

Benefit Factors

11%

26%

14%26%

23% Child Education

Personal Goals

Marriage

Retirement

Savings

Personal goals, retirement, savings are the prime benefits for which people usually invest

in insurance. The same response was found during the research work. It is good sign for

the insurance business, as people perceive insurance for achieving the different goals in

the life.


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8. Awareness about Kotak Life Insurance.

Awareness Response

Yes 70 No 95 Total 165

Brand Awarenes s

0

20

40

6080

100

Yes No

R e s p o n s e

Series1

Around 95 respondents i.e. 58% didn t have any idea about Kotak Mahindra LifeInsurance. This shows that there is lack of awareness in the market, which need to be

taken care trough advertising.


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9.Awareness about different plans of Kotak Life Insurance.

Kotak PlansAwareness Response Yes 20 No 145 Total 165

Awareness of Kotak Plans

0

50

100

150

200

Yes No

R e s p o n

d e n e s

Response

As there in lack of awareness, maximum respondents don t know about the plans and

policies of Kotak Mahindra.This Company needs to promote their different plans through

effective advertising to make people known.


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10.Future prospects for Kotak.

Response For Kotak

Yes15%

No

46%

Cant Say39%

Yes

No

Cant Say

15 percent of the total respondents said they are interested to buy the policy from Kotak

Mahindra Life Insurance. Out of the remaining respondents 46 percent didn t show any

interest in Kotak and others were not sure whether to buy the policy from Kotak or not.

Interested Prospects ResponseYes 25 No 75 Cant Say 65 Total 165


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OBSERVATION AND FINDINGS

OSERVATION:

The researcher has taken interview of given various segments as Retailers, Whole

sellers, Real -Estate Agents, Stockiest and others and cam e to know the facts as follows.

RETAILERS:

Belief:

Retailers contribute to the major portion of any market. Therefore, retailers are good

prospects for insurance business. Normally it is believed that they spare very less time

with other people other than their customers. Retailers are quite busy with their customersand other related work.

Facts:

Though some beliefs are found correct but observation show other side of the curtain i.e.

- They were quite generous when they knew that they were getting some information.

- They spare good amount of time if one presented the company and himself

properly.

- Retailers give sufficient information if they believe in the work.

WHOLE SELLERS

Belief :

Whole sellers are believed to be among the busiest people in their work. They are

actively involved in loading, unloading, dispatching, billing etc.

Facts:

- Whole sellers are not ready when we approached spontaneously to provide some

information.

- They provide sufficient information if they contacted when they have free time.


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- Most of them were not really comfortable to give any sort of personal and financial

information.

- These people runs huge business so these are highly potential prospects for any

business. REAL ESTATE AGENTS

Belief:

These people are not so busy as they have selective and limited no. of customers. But

many of these agents are out with their clients on their sites thus it becomes really

difficult to meet them. They are believed, as they don t entertain others.

Facts:

- Appointments need to be taken before visiting to their places.

- These agents have very good contacts, which means good customer base. So they

give bigger and better clients for insurance business.

STOKISTS/COMPANY OUTLETS

Belief:

These are believed as high-class people and usually prefer to talk with senior executives

of any company.

Facts:

- These people should be given a call before visiting their place, as they don t

appreciate direct visits by any people.

- Good presentation is required to make them talk for a while.

- A highly potential customer if one makes them believe in company by providing

detail information regarding company its present and future growth.

OTHERS

These include house-wife, pensioners etc.


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FINDINGS:

A): BRAND Knowledge

1. It is found during research that 58 percent were lacking any sort of

knowledge and information about Kotak as life insurance provider.

2. From the total 165 respondents, 118 respondents save good amount of

money i.e. between Rs 10000 to Rs. 40000 in insurance. Remaining people

save anything between Rs 5000 to Rs 10000.Thus it shows as everyone has

some part of savings in insurance, which is good sign for insurance sector.

3. Majority i.e. 53% respondents have their personal goals and retirement pl ans

as prime concern for buying insurance.

4. Out of 165 samples, 145 respondents i.e. around 88 % of them have

insurance cover in different private insurance and government

organizations.

B): PRODUCT Knowledge

1. 42 percent had just heard about Kotak Mahindra but were lacking

knowledge about different plans. Out of these 42 percent only 7 percent

people were insurance holders of Kotak Mahindra Life Insurance.

2. It is found that still (LIC) Life Insurance Corporation of India rules when it

comes to trust for insurance providers, among private sectors its ICICI

Prudential, HDFC Standard Life, Bajaj Allainz are among market leaders.

3. Still 82 percent of samples think insurance is essential for various reasons.

4. Many respondents found saying HDFC and ICICI as being more reliable

insurance providers in terms of returns, peer pressure, previous experience

than their competitors.


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8. Feedback should be taken from the present clients to know whether they are

satisfied and if they have any problems regarding the terms and service. This will

certainly help to improve the overall performance of the company.

9. Special schemes like Lucky Draws, Trip to foreign countries; Attractive prizescould be used for promotion.

10. Should develop the plans that are attractive. Also they should develop new plans

that are not launched by any other companies to take first launcher advantage.


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ANNEXURE

1.Personal detail:

Name:

Age(Yrs):

Phoen No.

E-mail

Gender:

Office Address Residential Address

2.How will you rate follo wing investment options on safety as parameter on scale?

a) 0 -3 Poor

b) 3 -7 Average

c) 7 -10 Good

1.Insurance 2.Fixed Deposit

3.Post 4.PPF

5.Mutual Fund 6.Shares

7.Daily Collection

3.Do you think it is essential to have Life Insurance?

a) Yes b) No

If Yes, Why?

1.Safety/Security 2.Long term investment

3.Savings 4.Tax saving

4.Which of the following companies are you aware as insurance provider?


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1.ICICI Prudential 2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz 4.Tata AIG

4.Ma x New York Life 5.HDFC Standard Life Insurance

6.AVIVA Life Insurance

5. Which of the following companies you consider mast reliable to invest?

1.ICICI Prudential 2.Kotak Mahindra Life Insurance


4.Max New York Life 5.HDF C Standard Life Insurance

6.AVIVA Life Insurance

If Yes, Why?

1.Brand Name 2.Safety

3.Peer -pressure 4.ROI

5.Previous experience

6.Do you have insurance cover or policy?

1.Yes 2.No If Yes, which?

1.ICICI Prudential 2.Kotak Mahindra Life Insu rance


4.Max New York Life 5.HDFC Standard Life Insurance

6.AVIVA Life Insurance 8.SBI

7.Approximately how much money you invest in Life Insurance from your total savings?

1.Rs5000 -Rs10000 2.Rs10000 -Rs20000

3.Rs20000 -Rs40000 4.Rs > 40000


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8.What benefits you avail for investing money in insurance?

1.Child Education 2.Personal Goals

3. Marriage 4. Retirement

5. Savings

9.Are you aware about the Kotak Mahindra Life Insurance?

1.Yes 2. No

10.Are you aware about diffe rent plans of Koatk Mahindra such as;

1.Kotak Flexi Plan

2.Kotak Retirement Income Plan

3.Kotak Capital Multiplier Plan

4.Kotak Easy Growth Plan

5. Kotak Child Advantage Plan

11.In the near future would you be interested to buy any policy from Kotak M ahindra

Life Insurance?

1. Yes

2. No

3. Cant Say


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BIBLIOGRAPHY

Company websites : www.kotak.com

www.kotaklifeinsurance.com

Research Methodology: C.R. Kothari

Marketing Management: Rajan Saxena
http://www.kotaklifeinsurance.com/http://www.kotak.com/


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Market Potential of Kotak Mahindra Life Insurance by Nitin Kamble Marketing