REPORT

ON
MPC FIELD VISIT
PGDM (2019-2020)

SUBMITTED BY: GROUP 7

Abhishek Dimri (PGFC1901)
Neha Agarwal (PGFC1918)
Rachit Rathi (PGFC1925)
INDUSTRY MENTOR- Mr. Saurav Srivastava
Shubhangi Asthana
Branch Head
(PGFC1937)
Shubhi Mittal(PGFC1938)
 INDEX
S.NO PARTICULARS PAGE
NO.

1. INTRODUCTION 2

2. MACRO AND MICRO ENVIRONMENT ANALYSIS 3-5

3. MARKETING STRATEGY 6

4. PRODUCT MIX 7-8

5. PRODUCT REVIEW 10-12

6. COMPETITIVE REVIEW 13-14

7. STP 14-16

8. COMMUNICATION STRATEGY 17-18

9. BUDGET AND CONTROL MEASURES 19-20

10. RECOMMENDATIN AND SUGGESTIONS 21

1
 ADITYA BIRLA SUN LIFE INSURANCE”

INTRODUCTION:
Aditya Birla Sun Life Insurance Company Limited (ABSLI), is a life insurance subsidiary of
Aditya Birla Capital Ltd (ABCL). ABSLI was incorporated on August 4th, 2000 and commenced
operations on January 17th, 2001. ABSLI is a 51:49 a joint venture between the
Aditya Birla Group and Sun Life Financial Inc., a leading international financial services
organization in Canada. As of September 30th September 2019, total AUM of ABSLI Stood at
Rs. 431,875 million. ABSLI recorded a gross premium income of Rs. 18,248 million in Q2 FY
2019-20 and registering a y-o-y growth of 1% in Individual First Year Premium and currently
ranked 7th in Individual Business (Individual FYP adjusted for 10% single premium) (Source:
IRDAI reported Financials).
ABSLI has a nation-wide distribution presence through 397 branches, 8 bancassurance
partners, 6 distribution channels, over 82,000 direct selling agents, other Corporate Agents
and Brokers and through its website. The company has over 10000 employees and more
than 16 lac active customers.
ABSLI launches ABSLI Monthly Income Plan to take care of one’s recurring expenses. The
plan aims to provide regular monthly income until maturity to meet one’s future financial
requirements. The primary objective is to sell 500 ABSLI Monthly Income Plan policies in
2020.

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CURRENT MARKETING SITUATION

There are total 24 life insurance providers operating in the country. There are 23 private
sector companies and only 1 public sector company. The life insurance industry has seen a
significant improvement in the performance of almost all life insurance players over the last
two years. Life insurance industry recorded a growth of 10.75% in premium income. While
private sector posted 21.37% growth, LIC recorded 6.06% growth. On the Basis of total
premium income, the market share of private sector life insurers increased from 30.64 % in
2017-18 to 33.58% in 2018-19. The new policies issued by LIC saw a growth of 0.31 % and
private sector recorded a growth of 5.61% in year 2018-19.

SWOT ANALYSIS

Strengths-
 Has a vast distribution network spread over 500 cities
 Backed by Aditya Birla brand and Sun Life Insurance services
 High Key Settlement Ratio
 Emphasis on customer satisfaction through transparent functioning
 A wide network of 10500 advisors and 600 branches, and over 150 partnerships with
banks, brokers and corporate agents
 A strong network with Agents and banks to enable better connectivity and service to
customers

Weaknesses-
 Low presence in rural market
 Lesser advertising as compared to competitors

3
Opportunities-
 Growing awareness amongst people to get insured
 Alignment with government schemes and growing government support
 Growing opportunities in the rural market

Threats-
 Economic crisis and instability
Trust issues within the customers
 New NBFCs in the sector

MARKET SHARE OF INSURANCE COMPANIES

• Increased share of protection products to 6.4%.
• In group business ABSLI continues to maintain the 4th position among private players.

PESTLE ANALYSIS
4
1-POLITICAL FACTORS:”

 Increased Service tax

 Increase in FDI limit”
 Capital requirement”

2-ECONOMIC FACTORS:
Interest rate at bank very much affect the Insurance Company, because people are always
affected by higher return. They do not prefer lower return policy”.

 Inflation Rate”
 Unemployment also affect the company as unemployed people do not have earing
and so saving also affect to life insurance sector”.

3-SOCIAL FACTORS:
 Age affects Insurance as the population in the age group of 15-55 is usually regarded
as an insurable population, since it the most active age group in the sense of
working, earning and supporting others and beyond this age group life risk is not
considered to be not worth insuring””.
 Marital status also affects it. As a single person is less interested in buying Insurance
but a married respondent is interested because they have to support and take care
of their family members or the dependants”.
 Education level is also one of the factors because the higher educated individual may
understand and appreciate Insurance more than the lower educated individual”.
“People who are higher educated see” new wealth management product more
interesting in managing their finances.

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4-TECHNOLOGICAL FACTOR:
 Maintaining the database – Insurance Industry has huge customer based and
keeping their data recorded manually is not easy. Technology has made it easier to
keep record of customers. A person can switch to the computer and can find the
data of their customer easily. Keeping customers feedback about particular product
as well as suggestion about covers can also be generated through the internet”.
 E-Business Insurance – Internet can be best source of educating people about the
insurance”

5-ENVIRONMENT FACTORS:

 Natural calamities, Earthquake, Monsoon affects the company, as these occurrence

of these events causes lots of death so the life Insurance company have to pay claim
against the policy.

PORTER FIVE FORCES MODEL OF ABSLI

1. RIVALRY AMONG EXISTING COMPETETIORS

 Insurance industry is highly competitive in various companies like LIC, TATA AIG,
HDFC etc
 Companies are following effective competitive pricing to attract customers on price
and also using low price and high price return strategy for customers to lure them.’

2. THREATS FROM NEW ENTRANTS

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  Other financial companies are also in the industry “
 Overall threat is medium given that is subject to license and regulations.
“
3. THREAT OF SUBSTITUTE PRODUCTS

 “Similarity in services makes switchover a potent threat “

 “Investment oriented customers have switched to other avenues.”

4. BARGENING POWER OF SUPPLIERS

 Suppliers being the distributer or agents have high bargaining power because they
have customer database and can influence customers in making choices
 Bargaining power of customers especially corporates is very high because they pay
huge amount of premium

5. BARGANING POWER OF BUYER

 Bargaining power of customers especially corporates is very high because they pay
huge amount of premium.

MARKETING STRATEGY
Aditya Birla’s marketing strategy is based on positioning of product differentiation. Company
manages financial situations of both individuals and firms. Insurers have designed customer
friendly and innovative products. Firms can no longer afford to stay rigid in their operations
or distribution. People's lifestyles and buying habits will determine what model of marketing
can be implemented but firms need to be careful in their choice of resources for the same
purpose. This segment consists of the companies with Rs. 40,00,000 in annual sales. They
mostly target 30-45-year-old peoples. The monthly income plan is mainly targeted for
monthly salary holder.

As we know ABSLI is not much into advertisements and promotion, rather they invest in
maintained strong connections with agents and brokers. They have a wide and strong
connections with agents and pay high commissions to retain their services. For them, it is
the agents who are the main targets for the company, as only agents will get more
customers to the company. “”

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PRODUCT MIX

It refers to the product portfolio that the company offers it’s to its customers and also it
consists of several product lines in which several group pf products which are closely related
similar in nature.

It helps the company to differentiate its offerings for different group or segment of
customers

Product mix consist of 4 aspects

1-Width

2 Length

3-Depth

4-Consistency

We can now classify the product mix of Aditya Birla Sun Life based on the aspects discussed
above

1. Width –
It refers to the type of product that the company deals with so Aditya Birla sun life
insurance offers a complete range of insurance plans which are

* Term insurance plan

* Wealth with protection

*Retirement plans

* Health plans

* Child plans

*Saving with protection

*Protection plans

2. Length –

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It refers total number of products in ABSLI product mix. In different product lines ABSLI
offers many items or plans with distinctive characteristics.

The product they offer under Wealth with protection are

1 Term insurance plans

2-ABSLI income shield plan

3-ABSLI Life shield plan

Under health plans we have

ABSLI CANCER PLAN

ABSLI HOSPITAL PLAN

ABSLI Critishield plan

We have a total of 26 plans under the length in the product mix of ABSLI

3.Depth –
It refers to the different variations offered under the product length offered by ABSLI so
under different plans like TERM INSURANCE PLAN of ASBSLI we have 2 different categories
which are

1- ABSLI DIGI SHIELD PLAN

2- ABSLI ULTA TRIM

4.Consistency-
Under the product mix helps the company to gain advantage the market segment
technology and distribution channel so to retain their market ABSLI has a strong distribution
network of agents and also sells online.

PRODUCT REVIEW

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 Products of
ABSLI
SAVINGS
Wealth and Children's
WITH Retirement
Protection (3) Protection Future Plan HEALTH (3)
PROTECTION Solutions (3)
Solutions (5) (1)
(10)

ABSLI Wealth ABSLI Vision Star ABSLI Secure Plus ABSLI Empower ABSLI Cancer Shield
Aspire Plan Plan Plan Pension Plan Plan
Term Insurance Plans

ABSLI Wealth Assure ABSLI Vision Money ABSLI Immediate ABSLI Hospital Plus
Plan BackPlus Plan Annuity Plan Plan
ABSLI Income
Shield Plan

ABSLI Wealth Max ABSLI Vision ABSLI Empower ABSLI CritiShield

Plan LifeIncome Plan Pension-SP Plan Plan

ABSLI Life Shield

Plan ABSLI
DigiShield Plan ABSLI Wealth Secure
ABSLI Savings Plan
Plan

ABSLI Fortune Elite ABSLI Income

Plan Assured

ABSLI Vision Life

secure plan

Vision Endowment +
plan

ABSLI Gauranteed
Milestone

PLACE

Distribution policy of any organization is the key to future success. Birla Sun Life Insurance,
with its vast experience and huge product portfolio helps individuals, groups and
organizations by offering customized insurance solutions.

This is possible only because of its vast distribution network that has spread over more than
five hundred cities. It has an intricate network consisting of 10,500 advisors, six hundred
branches and one hundred and fifty partnerships with banks, brokers and corporate agents.
Company also has operations in countries like Bermuda, China, Japan, and United Kingdom
etc. and it’s headquarter is based in Mumbai.

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PRICE

By the end of year 2013, Birla Sun Life Insurance’s AUM was nearly 23,350 crore and its
capital base were very strong at nearly 2450 crore. Company has adopted a transparent and
reasonable pricing policy as it wants to serve by providing maximum benefits and solutions.
Its rate of premium for various policies is marginally lower than its competitors and can be
paid through electronic clearing services. Brand BSIL has paved the way for new thinking as
it has made the consumers realise that insurance policies give good returns.

ABSLI uses differential pricing or dual pricing: -

1.Offline purchase”, when with the help of intermediate/broker etc.

2.online purchase”, when company direct sells”

• No discounts on policies sold by intermediaries but”2% to 10% lower “that are sold
directly through direct marketing.

PROMOTIONS

Birla Sun Life Insurance has gained its reputation as one of the most trusted brands and this
has become possible because of its employees. As part of their promotional policy, company
has employee benefit plans to increase productivity and loyalty.

It was the first company to sell policies through internet. It offers incentives including
rebates, gifts, e-marketing and direct mail to attract more consumers. Vital advertising tools
of Brand are billboards, internet, newspaper, magazines, radio and television. Cricketer Kapil
Dev has been its brand ambassador and cricketers like Virendra Sehwag, Yuvraj Singh and
Suresh Raina have been roped in to work in its commercials.

HOW ABSLI USES DIGITAL PLATFORMS FOR PROMOTION:

 E-APP:

 E-App is an application which can be accesses through various gadgets like

Android Tablets, Android phones, I-pad, laptops and website etc.
 By using this app, the policy holder can access their policy anywhere by using
his/her phone or any other gadget.
 It offers innovative features like filling the form on the website and accessible
through E-app.
 On- boarding takes place in 15 minutes in this app.
 E- App provides a facility to pay the premium through the app.

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  Policy holder can upload their documents in just one click.
 In the financial year 2018-19 Adoption of E-APP was around 70%.

 D2C:

 Direct to consumer ecosystem of Aditya Birla sun life insurance provides one
stop shop experience to the users who want to buy policy online.
 The main advantage of this channel is it eliminates agent intervention.

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COMPETITIVE REVIEW

TABLE NO.1:

COMPAN PRODUCT FEATURES PREMIU PREMIUM

Y M VALUE PAYMENT
TERM
Max Life Monthly 1.) Guaranteed monthly 50000 12 Years
Insurance income income for a period of 10 Excluding
advantage years immediately after the taxes
plan completion of premium
payments term
    2.) Sum of accrued    
compound reversionary
bonuses and terminal
bonus on maturity i.e.
Completion of the policy
term
         
Reliance Super 1.) The plan enables you to    
life money enjoy flexibility while paying
back plan your premium like monthly,
half-yearly and quarterly
    2.) The plan offers high sum 25 % of 5 years
assured rebate. You can get the sum
rebate on higher sum assured
assured
    3.) The plan offers grace    
period of 30 days for
premium paid on yearly,
half yearly and quarterly
basis
         

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 HDFC LIFE Super 1.) Guaranteed income 24000  
income every year for a period of 8,
plan 10, 12 or 15 years under
limited pay option
    2.) You can opt for hassle-   8 years
free issuance on the basis of
a short medical
questionnaire eliminating
tedious medical tests
    3.) Financial protection    
against untimely demise,
throughout the premium
payment term as well as the
pay-out period
         
ICICI Future 1.) With this plan you can    
Prudentia Perfect reduce your taxable income
l Endowmen by investing up to 1.5 lakh
t Plan under section 80c
    2.) The money you get on 30000 6 years
maturity or death is also
completely tax free
    3.) At the end of the policy    
term you receive a sum that
includes Guaranteed
Maturity Benefit (GMB)

STP ANALYSIS OF ADITYA BIRLA SUN LIFE INSURANCE

SEGMENTATION:
Segmentation is the process of dividing the market into smaller segments according the
attitudes, needs, beliefs, lifestyle etc. of the consumers.

For consumer market segmentation can be done into 4 variables:

 Geographic
 Demographic
 Psychographic

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  Behavioural

SEGMENTATION OF ABSLI:

DEMOGRAPHIC:

ABSLI has insurance plans for all age groups for children they have ABSLI vision star plan.
This insurance plan is for the children in the age group of 18-55years. For old age people
they have many pension plans like ABSLI Empower Pension Plans , ABSLI immediate annuity
plan , ABSLI Empower Pension. These insurance plans are for the people in the age group of
25-70 years.

GEOGRAPHIC:

ABSLI has insurance plans for the people of rural areas, urban areas as well as for NRI.
ABSLI has launched their rural plans in 2001 for rural areas they have ABSLI bima dhan
sanchay, ABSLI Bima Suraksha Super, ABSLI Bima kavach Yojana, ABSLI Grameen Jeevan
raksha plan. For NRI’s they have ABSLI Vision life income plan .

PSYCHOGRAPHIC:

ABSLI has insurance plans which makes the provisions for good lifestyle. In this they have
ABSLI Protector Plan Plus, ABSLI future guard plan etc. These insurance plans covers the age
group of 18-65 years and the person can assured a sum of 5 lakhs.

BEHAVIORAL:

ABSLI has segmented their market behaviourally for example their health insurance plans
come under this category .in health insurance they have different plans like ABSLI cancer
shield plan, ABSLI hospital plus plan, ABSLI critishield plan etc. These health plans could be
individual or for the family.

TARGETING OF ADITYA BIRLA SUN LIFE INSURANCE

It is the process of dividing the market in small groups of customers to target specific group
of audience this strategy is used by Aditya Birla to target their specific set of customers.

They mostly target corporates with higher income group with their long-term policy plans

The age group in which they target are 18-60 years in the urban areas

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They some basic plans include child future plan wealth management plan and health plans
etc.

There most plans are targeted for male who are working in corporates.

BRAND POSITIONING
 A joint venture between two trusted global names- Sun Life Financial Inc. and Aditya
Birla Group
 Tag line – “YOUR DREAMS, OUR COMMITMENT”
 Changed name Birla Sun Life Insurance (BSLI) to Aditya Birla Sun Life Insurance
(ABSLI) to make people more aware of the ABSLI being a part of Aditya Birla brand
 Through NEED BASED ADS, where the company focuses on the emotional front of
the customers to have their life and plans insured
 “Face Your Fears” campaign to put up an indirect question on the security of future,
business, life and the loved ones’ at the same time providing a solution for each of
them. Through this campaign the company positioned the insurance products as
over and above of savings, investments or even tax deduction method
 Facebook campaign #IntractWithTheFuture to target the mid-aged youth and
visually putting two different futures after them, to provoke and motivate them to
plan their future from today itself
 “Big in your life” campaign by Aditya Birla Capital ltd. to emphasize on the wide
range of products and services the company has to offer. The campaign aims in two
directions-
o To make consumers aware of that they “begin” their day with Aditya Birla’s
products around and thus establish their brands presence in each corner of
their life

Through this campaign the company highlighted on to the products and services they are in.
example- they were able to grab customer attention that ABSLI is a part of Aditya Birla
Group, which most people were unaware of.

CHANNEL DESIGN OF ABSLI

ABSLI has a nation-wide distribution presence through 397 branches, 8 bancassurance

partners, 6 distribution channels, over 82,000 direct selling agents, other Corporate Agents
and Brokers and through its website.

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  More than 1,20,000 Insurance Agents in 2020

 8 Bancassurance Partners including HDFC, Karur Vysya Bank, DCB Bank and Deutsche
Bank, Axis, Lakshmi Vilas Bank and DBS Bank

 Online Platform for Selling Term Plans

 Direct marketing channel having records of potential customer build over 19 years in
business.
 Brokers and Corporate Agents.

AGENCY BROKER

WORK SITE MARKETING

BANCASSURANCE
CHANNEL DESIGN

DIRECT INTERNET MARKETING

MARKETING

CORPORATE AGENCY

PRODUCT- ABSLI MONTHLY INCOME PLAN IN RURAL AREAS

TARGET CUSTOMERS
 Joint families
 Mid aged workers and farmers
 Small businessmen
 Old landlords

COMMUNICATION OBJECTIVE AND STRATEGY

The objective is to attract more investors and sell the plan to more no, of investors as
possible. As in rural areas, more of the PSUs exist, the challenge in front of the company is
to compete with them, as these PSUs have more branches in comparison to the pvt. Units,
and hence they have a higher penetration in rural areas. Thus, they are able to attract more
people
Communication strategy that the company can use is by-

 Contacting more with the trusted people of that area, e.g. the panchayat heads and
educated person of that area to whom people have trust on. If these can be the
agents of that area, t would help the company to expand more in that area

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  The company can put up awareness campaigns in schools and during meals to make
people more aware of such plans
 ABSLI should try to put up branches in rural areas and penetrate more in rural areas

BEST SUITED COMMUNICATION MEDIA FOR PRODUCT PROMOTION

 Agents- as in rural areas, people can be communicated and convinced better in
person
 YouTube- with the increased usage of internet and media, a proper detailing and
benefits can also be communicated to the people in different regional languages
 Branch offices in that area
 Interns- a company can send a group of interns and students to educate people
about these plans

WHY ABSLI MONTHLY PLAN OVER OTHER COMPETITORS ?

 Goes for relatively low risk investments in comparison to the competitors due to
relatively low asset base)
 Better assured returns in comparison to investors
 A better option for low risk-taking investors
 A better claim ratio than competitors (98.7% approx.)

DO YOU THINK COMPANY IS AWARE ABOUT ETHICAL AND SOCIAL ISSUES?

 Yes, company is aware about the ethical and social issues pertaining as company’s
vision, statement is “to actively contribute to the social and economic development
of the communities in which we operate and in doing so build a better, sustainable
way of life for the weaker and, marginalized sections of society”.
 In collaboration with FICCI, Aditya Birla-CSR Centre for Excellence to make CSR an
integral part, of corporate culture”.
 Collaborative partnerships are formed. With the Government, the District
Authorities, the village panchayats, NGOs, this helps widen the Company’s CSR
reaches and leverage upon a collective expertise, wisdom and experience, that these
partnerships brings.
 The Company engages with well-established and recognized programs and national
platforms such as the CII, FICCI, ASSOCHAM to name a few, gives their commitment-
to inclusive growth.
 A specific budget is allocated for CSR activities. This budget is, programmes driven.

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MARKETING RESEARCH

Using Research, they are identifying the specific benefits that their target market segments
value. Feedback from market tests, surveys, and focus groups help them in understanding
the customer’s choice and value. They are measuring and analysing customers’ attitudes
towards competitive brands and products. For the new product ABSLI will try to analyse the
data for of monthly income group people and their savings on monthly basis. Which will
make more reliable for researching monthly income plan.

BUDGET:
Total First year sales for the Aditya Birla Sun Life Insurance ‘Monthly Income Plan’ is
projected at Rs. 40,00,000 with an average premium of Rs. 80,000 p.a. per policy. The
number of Aditya Birla Sun Life Insurance ‘Monthly Income Plan’ sold are expected to be
500 in 2020. The number of total policies issued is expected to increase by 4% in December
2020. The growth in the no. of policies issued from FY 2018 to FY 2019 was 2%, with 3726
new policies issued. With continuous improvisation in the policy terms, we’re expecting to
double the growth rate.
To Increase the Policies Issued we’re going to implement the following steps:

 Increase in Advertising Budget

 Increase in Training of Agents

TABLE NO.2

2018 2019 2020

Advertising & Publicity 1,94,563 3,45,741 518611.5
Total Agents 91720 99720 107720
Active Agents 13758 14958 16158
Training Expenses 3,13,62,000 2,72,50,000 32316000
Per Agent   273.265142 300

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CONTROLS
TABLE NO.3

TYPES OF INPUT INTERMEDIATE OUTPUT

MEASURE MEASURES MEASURES MEASURES
S

Measures Providing valued Customer trust Increase Sales

now used services.
Customer loyalty High Profits
Continuous
Distributer loyalty and More Customer
improvement in
interest. satisfaction
policies
Training programs for
all the distribution
channels.
To promote the Life
Insurance Products
Effective
distribution channel.
Hassle free system
of issuing policies

Suggested Efficient actions Customers and Increase Sales

changes/ should be taken Distribution
High Profits
after the complains Network
additions
of the retailers and loyalty. More Customer
customers. satisfaction
Increase in
Advertisement
expenses and
increased
promotion

RECOMMENDATION
The Company to reach rural investors should develop viable and cost-effective distribution
channel and build awareness in consumer about their products. They should interact with
local government agencies, and prepare service according to it. Creating awareness through
newspaper, pamphlets can also help their company grow.

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SUGGESTIONS
 The awareness about the brand can be increased by putting up more posters and
hoarding on prime areas like: “Bus stations, Banks, railway station and industrial
areas”.
 ABSLI can conduct free seminars showcasing how their insurance products are more
like investment products. Free seminar will attract customers and with this step we
can also educate and encourage them to take ABSLI’S products”.
 Increase employees to serve the customer service better”, as many of the issues
faced by the customers were related to after sales customer services”. Also provide
them proper training to resolve the issues quickly and escalate any major issue to a
greater authority, so that customer do not face the trouble for long”.
 The company should cover various risks in one policy with same premium”.
 More presence in rural market”.

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