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 on site 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

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, address 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 respondents 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.

iv) Sample plan: after deciding on the research approach the instruments I decided sampling plan this cause for three decisions. a.Sampling unit: project was concentrated on retailers, whole sellers, real estate agents, service group & others for the sampling unit b.Sampling size: project consists of 165 respondents from different areas & from different professions. c.Contact method: once a sampling plan has been determined, marketing researcher need to decide how the subject should be contacted: mails, telephone, personal visit or online interview. In my project research it was mostly personal interview and in some cases telephonic interviews was held.

Step 3: Collect the information: Data collection phase of the marketing research generally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give all the detail information and might not be available and must be contacted or replaced. Others refused to co-operate and finally some respondents will be biased or dishonest to share information. Step 4:Analyze the information: The collected information needs to be analyzed thoroughly to extract the findings that will be useful to the company. Again this data must be tabulated and averages/measures are computed from various variables. Step 5:Present the findings: And the last step is present the findings that are relevant to the objectives.

INTRODUCTION TO TOPIC

Life insurance is a contract between you and a life insurance company, which provides 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 it generates 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.

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.

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

OBJECTIVES The main of the present study of is accomplish the following objective. Proper understanding and analysis of life insurance industry. To know about brand awareness of Kotak Life Insurance and customers preference about Kotak Life Insurance. Conduct market survey on a sample selected from the entire population and derived opinion on that research. According the market survey come know about how much potential of insurance market in our city. And base on analysis of the result thus obtained make a report on that research. Training aims at recruiting maximum number of Life Advisors and to Sell the maximum policies for the company and bring the business for the company which ever is going at the particular point of time. Along with it I will be gaining the thorough knowledge of insurance sector. This will give me in more confidence in marketing products given to me. As the Kotak Life Insurance well reputed company in India its great chance for me to observed different products launch by other competitor companies like ICICI prudential, Bajaj alliance ,LIC, Max New York life etc. In all, it is to understand the overall working of the Life insurance sector. The objective behind the project is as follows: To find the right candidate. To about their family background, occupation, social relation, Qualification, Age. Finalize candidates for the IRDA training

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 Mr. Shivaji Dam Mr. C. Jayaram Mr. Dipak Gupta

Executive Vice Chairman & Managing Director

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

COMPANYS 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 1987 1990 1992 Kotak Mahindra Finance Limited starts the activity of Bill Discouting. Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market. The Auto Finance division is started. The Investment Banking Division is started. Takes over FICOM, one of India s financial retail marketing networks. Enters the Funds Syndication sector. Brokerage and distribution business incorporated into a separate company Kotak Securities. Investment banking division incorporated into a separate company - Kotak Mahindra Capital Company. The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus Limited. Kotak Mahindra takes significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group s entry into information distribution. Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business. Kotak Securities launches kotakstreet.com it s on-line broking site. Formal

1992 1995

1996

1998

2000

commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 2003 Matrix sold to Friday Corporation Launches Insurance Services. Kotak Mahindra Finance Limited converts to bank.

KOTAK MAHINDRA A Lifetime of Value

Old Mutual
Old Mutual was established more than 150 years ago and has developed into an International services group w focused on asset gathering and asset 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 annuity 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 business 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.

Products:
Indivadual Kotak Term Plan Kotak Preferred Term Plan Kotak Money Back Plan Kotak Child Advantage Plan Kotak Endowment Plan Kotak Capital Multiplier Plan Kotak Retirement Income Plan Kotak Retirement Income Plan (Unit-linked) Kotak Safe Investment Plan Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Riders Exclusions Under Riders Group Employee Benefits Kotak Term Plan Kotak Credit-Term Grouplan Kotak Complete Cover GroupPlan Kotak Gratuty Grouplan Kotak Superannuation Grouplan Rural Kotak Gramin Bima Yoj.

Mission:

At Kotak Life Insurance, we aim to help customers take important make them financially independent.

financial decisions at

every stage in life by offering them a wide range Of innovative life insurance products, to

HIERARCHY OF KMOM LIFE INSURANCE LIMITED

Branch manager

Assistant BM

Branch Operations In charge (BOE)

Sales Manager Operation Executive

Assistant SM

Operations

Life advisor

Market Share
If we look at the status of kotak Mahindra;s life insurance;s market share in comparison of other private companies in comparison of premium earned

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

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 basic knowledge 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 Professor / Teachers Office Staff, Banks Staff Government Employees

3.Service Class

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

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

SAMPLE DESIGN Sample size

(165 people)

Retailers (60)

Whole Sellers(43)

Real Estate Agents (16)

Stockiest (16)

Others (30)

DATA COLLECTION TECHNIQUES: Questionnaire Method Telephone Interview Method

QUESTIONNAIRE METHOD The individual questionnaire of the survey was designed for population between age group of 18 60 years of age who can be the prospect of 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 and constraints of the study. FIELD WORK: The fieldwork was conducted for a period of 60 days in different commercial areas of PUNE. Interviews were conducted from respondents across segments, above 18 years of age and as per their convenience. So as to contrive representative sample. The interview and presentation mode by researcher were carried for the duration of 20 minutes.

DATA ANALYSIS AND INTERPRETATION

1. Investment options preferred by respondents.

Sr. No Investment Options No. Of Respondents 1 Insurance 75 2 Fixed Deposit 20 3 Post 20 4 PPF 22 5 Mutual Fund 8 6 Shares 5 7 Daily Collection 15 TOTAL 165

Respondents Investments
Ins urance 75 20 20 15 5 8 22 Fixed Depos it Pos t 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.

2. Need of Life Insurance

Yes No Total

135 30 165

Ne e d of Life Insurance

No 18%

Yes 82%

Yes No

Around 82 % of the total samples think that insurance is essential part of the life. But for everyone 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 life insurance.

Factors to determine need for L.I No. Of respondents Security/Safety 55 Savings 15 Long term Investments 35 Tax Saving 30 Total 135

Still majority i.e. 82% people think that insurance is essential. However safety is major concern when people see insurance as investment.

3.Awareness about the Insurance Companies.

Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC Aviva Total

No. Of respondents 115 65 95 75 35 105 60 550

Awareness about Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC Aviva

105 35 75

60 115

65 95

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

4. Reliable companies among the respondents.

Insurance Companies ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC Aviva Total

Respondents 75 20 55 40 15 60 35 300

Reliable Companies as per market ICICI Prudential Kotak Mahindra 35 60 20 15 40 55 75 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.

Factors determining reliability Brand Name Safety Peer pressure ROI Previous experience Total

Response 45 40 55 70 45 255

Reliability Factors Brand Name 18% 26% 18% Peer pressure 16% 22% ROI Previous experience Safety

People are positive about ICICI and HDFC as reliable companies because of their Returns, Brand name, and Previous experience and also there is lot of peer pressure among

5. Present Insurance holders

Yes No Total

145 20 165

Insurance holders
200 100
re s ponde nt s

Series1

0 Series1

Yes 145

No 20

Insurance Companies LIC ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC SBI Total

Market Share 85 20 15 10 8 17 5 5 80

Market Share of each company

LIC ICICI Prudential Kotak Mahindra Bajaj Allianz Tata AIG Max New York Life HDFC
9% 6% 12% 52%

5%

SBI

Among the total market share LIC still has majority share in market, holding 52% of the total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and HDFCareleaders

6. Total Savings for Life Insurance.

Savings (Rs) 5000-10000 10000-20000 20000-40000 >40000 Total

Respondents 47 75 31 12 165

Savings
Savings In Rupees 80 60 40 20 0 500010000 1000020000 2000040000 >40000

Series1

No Of Clients

Among the total respondents 75 people save anything between Rs. 10000- Rs15000. Thus we can say that still people are doing good amount of savings in insurance. It came to know that all the respondents have some part of their savings in insurance.

7.Benefits from Life Insurance Policy.

Benefits Child Education Personal Goals Marriage Retirement Savings Total

Responses Of Clients 35 90 45 85 75 330

Benefit Factors

23%

Child Education 11% 26% Personal Goals Marriage Retirement Savings

26%

14%

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.

8. Awareness about Kotak Life Insurance.

Awareness Yes No Total

Response 70 95 165

Brand Aw are ne s s

100 Response 80 60 Series1 40 20 0 Yes No

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

9.Awareness about different plans of Kotak Life Insurance.

Kotak Plans Awareness Yes No Total

Response 20 145 165

Awareness of Kotak Plans

200 Respondenes 150 100 50 0 Yes No Response

As there in lack of awareness, maximum respondents don t know about the plans and policies of Kotak Mahindra.This Company needs to promote their different plans through effective advertising to make people known.

10.Future prospects for Kotak.

Interested Prospects Yes No Cant Say Total

Response 25 75 65 165

Response For Kotak

Cant Say 39%

Yes 15%

Yes No Cant Say

No 46%

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

K o t a k