Bajaj Allianz General Insurance Co. Ltd. Summer Training REPORT ON“A STUDY OF STRATEGY AND FUNCTIONING OF FIELD FORCES IN BAJAJ ALLIANZ GENERAL INSURANCE Pacific Business School BY NARESH KUMAR M.B.A part 1st A Report Submitted in Partial Fulfillment Of the requirements of PG Program M.B.A- 2011-2013 Pacific Business School Submitted To Submitted By Disha Fattavat Naresh kumar (Assistant professor) P.B.S. (R.T.U) Sec.-D
Bajaj Allianz General Insurance Co. Ltd. CERTIFICATEThis is to certify that the project entitled “A STUDY OF STRATEGY ANDFUNCTIONING OF FIELD FORCES IN BAJAJ ALLIANZ GENERALINSURANCE” is a bonafide work of ANKIT KUMAR, a student ofLovely Professional University, Chaheru, Phagwara (Punjab)-144402,bearing Registration Number-10810218, and was successfully conductedat BajajAllianz General Insurance Co.Ltd.,Ghaziabad Office, from1st July 2009 to 14th August 2009, for the partial fulfillment of thecourse M.B.A of Lovely Professional University,Phagwara (Punjab). Mr. Rahul Tomar, Direct Marketing Incharge (Sales Manager) BajajAllianz General Insurance, Ghaziabad.
Bajaj Allianz General Insurance Co. Ltd. ACKNOWLEDGEMENT“No man is indispensable but there are certain mortal without whom the qualitywork suffers their guidance becomes important in acquiring quality results”.I would like to express my gratitude to all those who gave me the possibilities tocomplete this thesis.I want to thank Sales Manager, Bajaj Allianz, Ghaziabad, Mr.Rahul Tomer for giving me permission to commence this thesis in the firstinstance, to do the necessary research work and for being my Company Guide. With a deep sense of gratitude and humble submission I would like to expressmy heartiest gratefulness to my Faculty Guide Lect. Rohit Duggal, whose help,stimulating suggestions and encouragement helped me in all the times of researchfor and writing of this thesis. I am also grateful to my parents and friends who inspired me to put my bestefforts.Date: (ANKIT KUMAR)Signature:
Bajaj Allianz General Insurance Co. Ltd. INDEX Sr.No PARTICULAR PAGE 1. INTRODUCTION 2. INTRODUCTION TO ORGANIZATION 3. RESEARCH METHODOLOGY 4. INTRODUCTION TO TOPIC 5. COMPANY PRACTICE 6. DATA ANALYSIS & INTERPRETATION 7. RECOMMENDATION 8. CONCLUSION 9. BIBLIOGRAPHY 10. QUESTIONNIARE
Bajaj Allianz General Insurance Co. Ltd. INTRODUCTION
Bajaj Allianz General Insurance Co. Ltd.INTRODUCTIONA marketing strategy is a process that can allow an organization to concentrate its (alwayslimited) resources on the greatest opportunities to increase sales and achieve a sustainablecompetitive advantage.Marketing strategy as a key part of the general corporate strategy marketing strategy is mosteffective when it is an integral component of corporate strategy, defining how the organizationwill engage customers, prospects and competitors in the market arena for success. It is partiallyderived from broader corporate strategies, corporate missions, and corporate goals. They shouldflow from the firms mission statement. They are also influenced by a range of microenvironmental factors.Marketing strategy and sectarian tactics and actions:A marketing strategy also serves as the foundation of a marketing plan. A marketing plancontains a set of specific actions required to successfully implement a marketing strategy. Forexample: "Use a low cost product to attract consumers. Once our organization, via our low costproduct, has established a relationship with consumers, our organization will sell additional,higher-margin products and services that enhance the consumers interaction with the low-costproduct or service."A strategy consists of well thought out series of tactics. While it is possible to write a tacticalmarketing plan without a sound, well-considered strategy, it is not recommended. Without asound marketing strategy, a marketing plan has no foundation. Marketing strategies serve as thefundamental underpinning of marketing plans designed to fill market needs and reach marketingobjectives. It is important that these objectives have measurable results.
Bajaj Allianz General Insurance Co. Ltd.A good marketing strategy should integrate an organizations marketing goals, policies, andaction sequences (tactics) into a cohesive whole. Many companies cascade a strategy throughoutan organization, by creating strategy tactics that then become strategy goals for the next level orgroup. Each group is expected to take that strategy goal and develop a set of tactics to achievethat goal. This is why it is important to make each strategy goal measurable.Marketing strategies are dynamic and interactive. They are partially planned and partiallyunplanned. See strategy dynamics.Types of marketing strategiesEvery marketing strategy is unique, but if we abstract from the individualizing details, each canbe reduced into a generic marketing strategy. There are a number of ways of categorizing thesegeneric strategies. A brief description of the most common categorizing schemes is presentedbelow:Strategies based on market dominance - In this scheme, firms are classified based on their marketshare or dominance of an industry. Typically there are three types of market dominancestrategies: Leader Challenger FollowerPorter generic strategies - strategy on the dimensions of strategic scope and strategic strength.Strategic scope refers to the market penetration while strategic strength refers to the firm‟ssustainable competitive advantage.
Bajaj Allianz General Insurance Co. Ltd.Cost leadership Product differentiation Market segmentationInnovation strategies - This deals with the firms rate of the new product development andbusiness model innovation. It asks whether the company is on the cutting edge of technology andbusiness innovation. There are three types: Pioneers Close followers Late followersGrowth strategies - In this scheme we ask the question, “How should the firm grow?”. There area number of different ways of answering that question, but the most common gives four answers: Horizontal integration Vertical integration Diversification IntensificationA more detailed schemes uses the categories: Prospector Analyzer Defender Reactor
Bajaj Allianz General Insurance Co. Ltd. INSURANCE NEEDWhy is insurance necessary? The question contains the answer within itself. After all, life isfraught with tensions and apprehensions regarding the future and what it holds for the individual.Despite all the planning and preparation one might make, no one can accurately guarantee orpredict how or when death might result and the circumstances that might ensue in its aftermath.We are not saying that life and existence are constantly fraught with danger and uncertainty. Butthen it is essential that you plan for the future. The chances for a fatality or an injury to occur tothe average individual may not be particularly high but then no one can really afford tocompletely disregard his or her future and what it holds.People generally regard insurance as a scheme when and where you have to lose a lot to gain alittle. Nevertheless, insurance is still the most reliable tool an individual can use to plan for hisfuture.And just why is it necessary to plan for the future with Insurance?An OverviewInsurance business is divided into four classes: 1) Life Insurance business 2) Fire 3) Marine 4) Miscellaneous Insurance.Life Insurers transact life insurance business; the rest is transacted by General Insurers. Nocomposites are permitted as per law.The business of Insurance essentially means defraying risks attached to any activity over time(including life) and sharing the risks between various entities, both persons and organisations.Insurance companies (ICs) are important players in financial markets as they collect and investlarge amounts of premium. Insurance products are multi purpose and offer the followingbenefits:1. Protection to the investors2. Accumulate savings3. CHANNELISE SAVINGS INTO SECTORS NEEDING HUGE LONG TERMINVESTMENTS.
Bajaj Allianz General Insurance Co. Ltd. INTRODUCTION TO ORGANIZATION
Bajaj Allianz General Insurance Co. Ltd.Brief History of the Insurance SectorThe business of life insurance in India in its existing form started in India in the year 1818 withthe establishment of the Oriental Life Insurance Company in Calcutta. Some of the importantmilestones in the life insurance business in India are:1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the lifeinsurance business.1928: The Indian Insurance Companies Act enacted to enable the government to collectstatistical information about both life and non-life insurance businesses.1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective ofprotecting the interests of the insuring public.1956: 245 Indian and foreign insurers and provident societies taken over by the centralgovernment and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with acapital contribution of Rs. 5 crore from the Government of India. The General insurance businessin India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the firstgeneral insurance company established in the year 1850 in Calcutta by the British.Some of the important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes ofgeneral insurance business.
Bajaj Allianz General Insurance Co. Ltd.1957: General Insurance Council, a wing of the Insurance Association of India, frames a code ofconduct for ensuring fair conduct and sound business practices.1968: The Insurance Act amended to regulate investments and set minimum solvencymargins and the Tariff Advisory Committee set up.1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the generalinsurance business in India with effect from 1st January 1973. 107 insurers amalgamated andgrouped into four companies‟ viz. the National Insurance Company Ltd., the New IndiaAssurance Company Ltd., the Oriental Insurance Company Ltd. And the United India InsuranceCompany Ltd. GIC incorporated as a company.
Bajaj Allianz General Insurance Co. Ltd. INSURANCE SECTORThe opening up of Insurance sector was a part of the on going liberalization in the financialsector of India. The changing face of the financial sector and the entry of several companies inthe field of life and non life Insurance segment are one of the key results of these liberalizationefforts. Insurance business by way of generating premium income adds significantly to be theGDP. Over the past three years, more than thirty companies have expressed interest in doingbusiness in India. The IRDA (Insurance Regulatory Development Authority) is the regulatoryauthority, which looks over all related aspects of the insurance business. The provisions of theIRDA bill acknowledge many issues related to insurance sector. The IRDA bill providesguidance for three levels of players - Insurance Company, Insurance brokers and Insuranceagent. Life Insurance sector is one of the key areas where enormous business potential exists. InIndia currently the life insurance premium as a percentage of GDP is 1.3 % against, 5.2 per centin the US.General InsuranceGeneral Insurance is another segment, which has been growing at a faster pace. But as per thecurrent comparative statistics, the general insurance premium has been lower than life insurance.General Insurance premium as a percentage of GDP was a mere 0.5 per cent in 1996. In theGeneral Insurance Business, General Insurance Corporation (GIC) and its four subsidiaries viz.New India Insurance, Oriental Insurance, National Insurance and United India Insurance, aredoing major business. The General Insurance Industry has been growing at a rate of 19 percentper year.The entry of several private insurance companies, particularly international insurance companies,through joint ventures, will speed up the process of insurance mobilization. The competition will
Bajaj Allianz General Insurance Co. Ltd.unleash new schemes and benefits, which will give consumers a better Chance to save as well asinsure. The regulatory system in India is relatively new and takes some more time to make theInsurance sector a perfectly competitive one. Insurance Regulatory Authority of India issuedregulations on 15 subjects which included appointed. Actuary, actuarial report, Insurance agents,Solvency margins, reinsurance, registration of Insurers, and obligation of insurers to rural andsocial sector, investment and accounting procedure. The reform in Insurance in India is guidedby factors like availability of a variety of products at a competitive price, improvement in thequality of customer services etc. Also the employment opportunities in the Insurance sector wil1increase as major players set their business plans in India. The policy of the government to openup the financial sector and the Insurance sector is expected to bring greater FDI inflow into thecountry. The increase in the investment limit in this vital sector has generated considerablebusiness interests among the foreign Insurance companies" Their entry wil1 certainly change theInsurance sector considerably. Insurance Sector Reforms:In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor R.N.Malhotra was formed to evaluate the Indian insurance industry and recommend its future,direction. The Malhotra committee was set up with the objective of complementing the reformsinitiated in the financial sector.In 1994, the committee submitted the report and some of the key recommendations included:Structure:1. Government stake in the insurance Companies to be brought down to 50%.2. Government should take over the holdings of GlC and its subsidiaries so that thesesubsidiaries can act as independent corporations.3. All the insurance companies should be given greater freedom to operate.
Bajaj Allianz General Insurance Co. Ltd.Competition:1. Private Companies with a minimum paid up capital of Rs. 1 bn should be allowed to enter theindustry.2. No Company should deal in both Life and General Insurance through a single entity.3. Foreign companies may be allowed to enter the industry in collaboration with the domesticcompanies.4. Postal General Insurance should be allowed to operate in the rural market.5. Only one State Level General Insurance Company should be allowed to operate in each state.Regulatory Body: 1. The Insurance Act should be changed. 2. 3. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be madeindependent.
Bajaj Allianz General Insurance Co. Ltd. Investment:1.Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to50%.2. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdingsto be brought down to this level over a period of time.)Customer Service: 1. LIC should pay interest on delays in payments beyond 30 days. 2. Insurance companies must be encouraged to set up unit linked pension plans. 3. Computerization of operations and updating of technology to be carried out in the insurance industry.The committee emphasized that in order to improve the customer Services and increase thecoverage of the insurance industry should open up to competition. But at the same time, thecommittee felt the need to exercise caution as any failure on the part of new players could ruinthe public confidence in the industry. Hence, it was decided to allow competition in a limitedway by stipulating the minimum capital requirement of Rs. 100 crores. The committee felt theneed to provide greater autonomy to insurance companies in order to improve.
Bajaj Allianz General Insurance Co. Ltd.INSURANCE INDUSTRY: CLASSIFICATION Insurance General Life Insurance Insurance
Bajaj Allianz General Insurance Co. Ltd. General Insurance Fire Marine Motor Mediclaim Insurance Insurance Vehicle SOME PLAYERS IN THE INDUSTRY: General InsuranceLife InsuranceLife Insurance Corporation of India General Insurance Corporation of India. 1. Oriental Insurance Company Ltd. 2. New India Assurance Company Ltd. 3. National Insurance Company Ltd. 4. United India Insurance Company Ltd.
Bajaj Allianz General Insurance Co. Ltd. New EntrantsICICI Prudential Life Insurance Ltd. Bajaj Allianz General Insurance Company Ltd.Tata AIG Life Insurance Corporation Ltd. Reliance General Insurance Company Ltd.ING Vysya Life Insurance Corporation Ltd. Tata AIG General Insurance Company Ltd.Om Kotak Mahindra Life Insurance Royal Sundaram Alliance InsuranceCorporation Ltd. CompanyMaxNewYork Life Insurance Ltd Ltd. MARKET SHARE
Bajaj Allianz General Insurance Co. Ltd. Market share among private players –(Total premium)FY2008 30 25 26 20 19 15 15 13 Series1 10 10 5 6 5 4 2 0In the FY2008 ICICI Lombard and Bajaj Allianz have witnessed aggressive growth bymaking the retail segment their target segment ,aggressive growth strategies and hugedistribution network.The general insurance industry has witnessed the entry of many non-traditional players .IRDA has issued a license to the Rajan Raheja Group(RRG) for settingup a general insurance joint veture with Australia’s QBE Insurance Group.Last two yearshave seen the emergence of special institutions,such as ECGC,Star Health&AlliedInsurance ,Appolo DKV and Agriculture Insurance Co.
Bajaj Allianz General Insurance Co. Ltd.Business mix of Bajaj Allianz Business Mix of Bajaj Allianz 70 60 50 share in % 40 Corporate ex-health Motor(Retail) 30 Health & Travel 20 Other(mainly retail) 10 0 2007-08 2006-07 2005-06Motor insurance has the biggest share in general insurance market and show a highgrowth over three years. Corporate ex-health shown a low depression in Fy 2006-07 andhigh depression in Fy2007-08.Health insurance shows positive trend in all these FY’s.
Bajaj Allianz General Insurance Co. Ltd. COMPANY PRACTICE
Bajaj Allianz General Insurance Co. Ltd. Bajaj Allianz General Insurance Company Limited Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE. As on 31st March 2009, Bajaj Allianz General Insurance maintained its premier position in the industry by achieving growth as well as profitability. The company garnered a premium income of Rs. 2866 crore, achieving a growth of 11 % over the last year. Bajaj Allianz has made a profit before tax of Rs. 149.8 crore and has become the only private insurer to cross the Rs.100 crore mark in profit before tax in the last three years. The profit after tax was Rs.95 crores, which is also the highest by any private insurer. Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune. Vision To be the first choice insurer for customers To be the preferred employer for staff in the insurance industry.
Bajaj Allianz General Insurance Co. Ltd. To be the number one insurer for creating shareholder value Mission As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. A Partnership Based on Synergy. Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finservs in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance. Achievements Bajaj Allianz has received "iAAA rating, from ICRA Limited, an associate of Moodys Investors Services, for Claims Paying Ability.This rating indicates highest claims paying ability and a fundamentally strong position Bajaj Allianz General Insurance has received the prestigious “Business Leader in General Insurance”, awarded by NDTV Profit Business Leadership Awards 2008. The company was one of the top three finalists for the year 2007 and 2008 in the General Insurance Company of the Year award by Asia Insurance Review.
Bajaj Allianz General Insurance Co. Ltd.Company’s HistoryBajaj Allianz General Insurance Company:Allianz AG:Allianz group was founded in 1890 and is one of the worlds leading insurance companies withover 100 years experience in insurance and related services. It is also the largest insurer inEurope. Allianz group has multi-local structure and presence in over 70 countries. The keybusiness areas of Allianz group include General Insurance (property, engineering, marine, motor,casualty and miscellaneous), Reinsurance, Risk Management, Life & health insurance, AssetManagement and Pension Funds Management.Bajaj Auto Ltd.Bajaj Auto Ltd the flagship company of Bajaj Group was incorporated in 1945 as BachrajTrading Corporation. Initially it started by assembling two and three wheelers in collaborationwith Piaggio of Italy. After the expiry of the Agreement in 1971 the two and three wheelersacquired the brand name of Bajaj. The strength of the company lies in its strong brand image andability to offer value for money products leveraging on its large-scale operations.The Joint VentureBajaj Allianz General Insurance a joint venture non-life company promoted jointly by BajajAuto and German insurer- Allianz. Indian auto major holds 74% while Allianz holds 26% in theJoint Venture, and has an authorized and paid up capital of Rs. ll0 crores. Mr. Graham Norris isthe CEO of the company. Bajaj Allianz General Insurance will leverage the customer base andexpertise of Bajaj Auto Ltd and Allianz.
Bajaj Allianz General Insurance Co. Ltd.Product range of company/industryBajaj Allianz General Insurance Productso Personal Accidento Hospital Cash Daily Allowance Policyo Health Guardo Critical Illnesso Burglary Insuranceo Householders Insuranceo Travel Companiono Fidelity Guarantee Policyo Office packageo Money Insuranceo Public Liabilityo Plate Glass Insuranceo Consequential Loss (Fire) Insurance Policy
Bajaj Allianz General Insurance Co. Ltd.Performance of the company over the lastfew yearsDespite conditions which were not conducive for growth of gross premium, the companymanaged to maintain a growth rate which was more than twice that of the market. Thecompany‟s gross written premium (excluding share of premium from the IMTPIP), grew by33.3% during 2007-08 and, despite intense price competition, company maintained its secondposition among the private sector companies in terms of gross written premium. The marketshare of company (excluding premium of specialized insurers) increased from 7.2% in 2006-07to 8.5% in 2007-08. Including the share of inward reinsurance business from the IMTPIP, thegrowth rate would have been 43.0%. During 2007-08, company clocked gross written premiumof Rs. 24,045 Mn excluding share of business from the IMTPIP as compared to Rs 18,033 Mn in2006-07. Including share of inward business from the IMTPIP, the gross written premiumamounted to Rs. 25,780 Mn. On account of company‟s policy of steadily increasing it‟sretention in line with it‟s capital base, the net earned premium for the year (excluding netpremium from inward business of the IMTPIP), rose to Rs. 13,266 Mn, an increase of 58.6%over the previous year of Rs. 8,366 Mn. Including the net premium arising out of the share ofbusiness from the IMTPIP, the net premium for the year 2007-08 was Rs. 14,134 Mn. Althoughde-tariffication had an adverse effect on the price per policy, the number of policies soldcontinued to grow. In the year under review, company sold 6.61 Mn. policies as against 4.90Mn. policies sold in the previous year. This growth indicates that despite severe pricecompetition, more customers preferred company‟s service offerings, drawn by it‟s strong brandimage, convenience of buying and satisfaction with its service levels. The total incurred claimsfor the current year including actuarial provisions but excluding share of claims of the IMTPIP,were Rs. 8,375 Mn. as against Rs. 5555 Mn. in the previous year. The number of claims reportedduring the year was 413,281 as compared to 309,160 in the previous year.
Bajaj Allianz General Insurance Co. Ltd.As on 31st March 2008, Bajaj Allianz General Insurance maintained its premier position in theindustry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over thelast year.Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company tocross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores.In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 croresagainst Rs.573.73 core last year for the same period registering a growth of 28%.Bajaj Allianz today has a countrywide network connected through the latest technology for quickcommunication and response in over 200 towns spread across the length and breadth of thecountry. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices areinterconnected with the Head Office at Pune.
Bajaj Allianz General Insurance Co. Ltd.Financial status of the organization 1200 1056 1000 800 754 600 516 470 400 217 200 0 Profit after taxes 2003-04 2004-05 2005-06 2006-07 2007-08Figure shows profit after taxes in Rs.(In Millions)The company has earned a Profit Before Tax of Rs. 1,679 Mn for the year ended 31 st March2008, an increase of 43.5% over the previous year profit of Rs. 1,170 Mn. The Profit Before Tax
Bajaj Allianz General Insurance Co. Ltd.includes a provision of Rs. 361 Mn towards provisions for losses from the IMTPIP. The netprofit for the year, after provisions for reported losses from the IMTPIP, was Rs. 1,056 Mn asagainst Rs. 754 Mn reported in 2006-07, which is an increase of 40.0%. In a year when prices ofinsurance fell significantly, increasing its profitability whilst improving the market share hasbeen a significant achievement for your Company. It is a matter of pride for Bajaj Allianz that ithave become the benchmark for other companies in the market in so far as underwritingprofitability and return on equity are concerned. The Earnings per share (EPS) for the year ended31st March 2008 was Rs. 9.59/- (compared to Rs. 6.85/- for the previous year) and the bookvalue of equity shares on 31st March 2008 was Rs. 52.15/- per share (as against Rs. 37.40/- pershares as on 31st March 2007).5164702171056
Bajaj Allianz General Insurance Co. Ltd.Future prospects/plansThe Indian general insurance industry detarrification to start a new growth story.Share of motorinsurance was 43.1% of the total general insurance premium in April-Dec 2008.Motor insuranceis expecting to increase with motor sale,this year, there is a sharp rise in the auto industry(passenger car sales increased at a rate CAGR of 17% during FY08) as income levelrise.However last year and the initial months of this year showed a negative trend in sales but asthe market is recovering ,auto sales showed a positive trend. Post detarrifictio, in January „07,drop in motor premiums was expected ,but rise in car sales has helped boost total motorpremiums.Recent hike of 70-150% in loss making motor third party liability segment will helpreduce losses.Its very important time for Bajaj Allianz to formulate new plans strategies and tocapture more marketing share.
Bajaj Allianz General Insurance Co. Ltd. INTRODUCTION TO TOPIC
Bajaj Allianz General Insurance Co. Ltd. OBJECTIVES OF THE STUDY To study the sales Strategy of field force of Bajaj Allianz General Insurance. To study the process of selling of Insurance Policies by Adivsors.
Bajaj Allianz General Insurance Co. Ltd. RESEARCH METHODOLOGY
Bajaj Allianz General Insurance Co. Ltd. RESEARCH METHODOLOGYResearch methodology is a way to systematically solve the research problem. Researchmethodology constitutes of research methods, selection criterion of research methods,used in context of research study and explanation of using of a particular method ortechnique so that research results are capable of being evaluated either by researcherhimself or by others. Why a research study has been undertaken, how the researchproblem has been formulated, why data have been collected and what particulartechnique of analyzing data has been used and a best of similar other question are usuallyanswered when we talk of Research methodology concerning a research problem orstudy. The main aim of research is to find out the truth which is hidden and which has notbeen discovered as yet.
Bajaj Allianz General Insurance Co. Ltd.AREA OF STUDYThe area of the study related with getting correct information of general insurancepolicies of different peoples in the region of Ghaziabad.SAMPLE DESIGNA sample design is a definite plan for obtaining a sample from a given population. Itrefers to the techniques or the procedure the researcher would adopt in selecting items forthe sample. Sample design may as well be drawn from the population to be included inthe sample i.e. the size of the sample. Sample design is determined before data arecollected.During my study I have taken 50 insurance care consultants as the size of sample.
Bajaj Allianz General Insurance Co. Ltd.TOOLS USEDTo know the response, I have used the questionnaire method. If one wish to find whatinsurance care consultants think or know, the logical procedure is to ask them. This hasled marketing researchers to use the questionnaire technique for collecting data more thanany other method.In this method questionnaire were distributed to the respondents and they were asked toanswer the questions in the questionnaire. The questionnaire were structured nondisguised questionnaire because the question which the questionnaire contained, werearranged in a specific order besides every question asked were logical for the study, noquestion can be termed as irrelevant.The questionnaire was non-disguised because the questionnaire was constructed so thatthe objective is clear to the respondent. The respondents were aware of the objective.They knew why they were asked to fill the questionnaire.With the help of following techniques, which are using by Bajaj Allianz I analyse that thehow techniques of sales promotion are useful.
Bajaj Allianz General Insurance Co. Ltd.DATA COLLECTIONPRIMARY DATA SOURCES Through interaction with insurance care consultant Through questionnaires filled from the insurance care consultant.SECONDARY DATA SOURCES: Through internet, various official sites of the companies. Through pamphlets and brochures of the companies. Journals & Magazine
Bajaj Allianz General Insurance Co. Ltd.LIMITATIONS OF THE STUDYFollowing limitations were faced during the study: 1. While designing the questionnaire it was kept in mind to gather more and more information from each target person. For the neither present nor descriptive questions could have served the purpose. Therefore the questionnaire contained in the open-ended questions. 2. The study was conducted in Bajaj Allianz in Ghaziabad city, which has 127 to 170 insurance care consultants only. The sample size was of 50 insurance care consultants only so that accuracy of data so collected could be absurd covered by circulation of questionnaire. 3. The accuracy of indications given by the respondents may not be consider adequate as whether the language used in the questionnaire is understood by the respondent cannot be taken for granted. 4. The study is based on the information gathered from the insurance care consultants. Therefore in such case it is possible that the information supplied might be biased because the insurance care consultant might have shown partiality towards their insurance policies. 5. Since the survey was limited to 50 insurance care consultants it is rather difficult to give a precise conclusion but I have tried to the best of my capability to give the conclusion on a comprehensive manner.
Bajaj Allianz General Insurance Co. Ltd. DATA ANALYSIS & INTERPRETATION
Bajaj Allianz General Insurance Co. Ltd. DATA ANALYSIS AND INTERPRETATION(Based on survey conducted for 50 insurance care consultants)Q.1 Which technique of sales promotion you prefer?Options Response in %Display 40%Door to Door Demo 14%Exhibition 16%Catalogue 20%Price Off 10% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the study 40% insurance care consultants prefer display technique,20%insurance care consultants prefer catalogues, 16% to the exhibition, 14% to the door todoor demo and 10% insurance care consultants prefer price off technique.
Bajaj Allianz General Insurance Co. Ltd.Q.2 Which technique is giving good response from customers?Options Response in %Display 18%Door to Door Demo 36%Exhibition 18%Catalogue 16%Price Off 12% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the study 36% insurance care consultants say door to door demo techniquesgiving good response, 18% insurance care consultants say to the display & exhibition,16% to the catalogues & 12% say to the price off technique.
Bajaj Allianz General Insurance Co. Ltd.Q.3 Which technique is economically beneficial?Options Response in %Display 10%Door to Door Demo 22%Exhibition 10%Catalogue 46%Price Off 12% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the 46% insurance care consultants, catalogue technique is economicallybeneficial. 22% to the door-to-door demo and 12% insurance care consultants preferprice off technique.10% to the exhibition & display technique.
Bajaj Allianz General Insurance Co. Ltd.Q.4 Which technique requires less time in sales promotion?Options Response in %Display 22%Door to Door Demo 38%Exhibition 10%Catalogue 16%Price Off 14% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the study 38% insurance care consultants say display technique requiresless time in sales promotion. 22% to the display technique, 16% insurance careconsultants vote to the catalogues, 14% insurance care consultants vote to the 10% to theexhibition.
Bajaj Allianz General Insurance Co. Ltd.Q5 Which technique is easily manageable?Options Response in %Display 18%Door to Door Demo 30%Exhibition 10%Catalogue 34%Price Off 8% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the study 34% insurance care consultants say that the catalogues is easilymanageable, 30% to the door to door demo,18% insurance care consultants prefer displaytechnique 10% to the exhibition, and 8% insurance care consultants say to the price offtechnique.
Bajaj Allianz General Insurance Co. Ltd.Q.6 Which technique requires less knowledge to execute?Options Response in %Display 14%Door to Door Demo 12%Exhibition 12%Catalogue 22%Price Off 40% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the study 40% insurance care consultants vote to the price off technique isrequire less knowledge to execute.22% insurance care consultants prefer catalogues, 14%to the display and 12% to the exhibition & door to door.
Bajaj Allianz General Insurance Co. Ltd.Q.7 Which technique requires more knowledge to execute?Options Response in %Display 20%Door to Door Demo 42%Exhibition 24%Catalogue 10%Price Off 4% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Display Door to Door Exhibition Catalogue Price Off DemoInterpretation:According to the study 42% insurance care consultants vote to the door-to-door techniquethat it requires more knowledge to execute than others. 24% to the exhibition, 20% to thedisplay technique, 10% insurance care consultants give vote to the catalogues and 4%insurance care consultants prefer price off technique.
Bajaj Allianz General Insurance Co. Ltd.Q.8 Price off are necessary for sales promotion?Options Responses in %Yes 46%No 40%Can‟t say 14% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Can’t sayInterpretation:According to the study 46% insurance care consultants say yes that the price off arenecessary for sales promotion. 40% say no and 14% say can‟t say.
Bajaj Allianz General Insurance Co. Ltd.Q.9 Do you think that sales promotion program that is presently undertaken by BajajAllianz. are satisfactory?Options Responses in %Yes 34%No 46%Can‟t say 20% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Can’t sayInterpretation :According to the study 46% insurance care consultants say No that the sales promotionprogram that is presently undertaken by Bajaj Allianz are satisfactorily 36% say Yes and20% say can‟t say.
Bajaj Allianz General Insurance Co. Ltd.Q.10 Should Bajaj Allianz take up new sales promotion program?Options Responses in %Yes 72%No 22%Can‟t say 6% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Can’t sayInterpretation :According to the study 72% insurance care consultants say yes installment offers are 22%say no and 6% say can‟t say.
Bajaj Allianz General Insurance Co. Ltd. RECOMMENDATION
Bajaj Allianz General Insurance Co. Ltd. This sales promotion process was very much satisfying for me not only practically and academically but it also helped me in developing my communication skill and enriched my knowledge also. I have come to know about the importance of marketing especially with regard to Sales Promotion on the most renowned organization like Bajaj Allianz. Especially because of emergence of many competitor with excellence in services & competitive product. The base of this chapter conclusion is on the data analysis or what we say findings. I have finding from the insurance care consultants of the Bajaj Allianz. and their insurance policies on my topic. When the insurance care consultant is asked why they are dealing in this particular insurance policies (product) they mostly stressed on company‟s image. They also said that all income and age group of customers are attracted towards their product but buyers are mainly from higher and middle-income group. Insurance care consultants said that their sale is decreased in the last years because of negative trend in market. Insurance care consultants said that the customer are curious in getting insurance policies because they want more discounting on the products and low claim time after any accident.
Bajaj Allianz General Insurance Co. Ltd. SUGGESTIONS
Bajaj Allianz General Insurance Co. Ltd.SUGGESTIONSHere are some suggestions, which may help to strengthen the firm further Many of the insurance care consultants of the Bajaj Allianz. Has the lack of good communication skills and training. So training should be easy. Bajaj Allianz. Should use new techniques of sales promotion. Customer services should be more comfortable than others. People must be made aware of the benefits of the policies of Bajaj Allianz. The company should give personal attention to each customer. Proper assistance should be provided to the customer at the time of claim settlement. All the details about the company should be given to the customers. Regular advertisement of the company should be given TV and Newspaper. The company must try to find new markets especially in the rural areas. The company should do frequent analysis of the competitors.
Bajaj Allianz General Insurance Co. Ltd.BIBLIOGRAPHYBooks Kothari C.R., (1999) Research Methodology, Wishwa Prakashan Kotler P. and Armstrong G., (2005) Principles of Marketing New Delhi, Prentice Hall of India Kotler P., (1999)Marketing Management Analysis, Planning, Implementation and Control, New Delhi, Prentice Hall of India Saxena Rajan, (1999) Marketing Management, Tata McGraw HillWebsites: www.bajajallianz.com www.indiainfoline.com www.irdaindia.org www.thehindubusinessline.com
Bajaj Allianz General Insurance Co. Ltd. QUESTIONNAIREName : _____________________________________Address : _____________________________________Q.1 To which technique of sales promotion you prefer?A) Display B) Door to door demonstrationC) Exhibition D) CatalogueE) Price-offQ.2 which technique is giving good response from customers?A) Display B) Door to door demonstrationC) Exhibition D) CatalogueE) Price-offQ.3 Which technique is economically beneficial?A) Display B) Door to door demonstrationC) Exhibition D) CatalogueE) Price-offQ.4 Which technique requires less time in sales promotion?A) Display B) Door to door demonstrationC) Exhibition D) CatalogueE) Price-offQ.5 Which technique is easily manageable?A) Display B) Door to door demonstrationC) Exhibition D) Catalogue
Bajaj Allianz General Insurance Co. Ltd.E) Price-offQ.6 Which technique requires less knowledge to execute?A) Display B) Door to door demonstrationC) Exhibition D) CatalogueE) Price-offQ.7 Which technique requires more knowledge to execute?A) Display B) Door to door demonstrationC) Exhibition D) CatalogueE) Price-offQ.8 Price off and installment offers are necessary for sales promotion?A) Yes B) NoC) Can‟t sayQ.9 Do you think that sales promotion program that is presently undertaken by Bajaj Allianz. are satisfactory?A) Yes B) NoC) Can‟t sayQ.10 Should Bajaj Allianz. take up new sales promotion program?A) Yes B) NoC) Can‟t say
Bajaj Allianz General Insurance Co. Ltd. CONCLUSION 1) All the insurance company must advertise more in the market because not all people know more about life Insurance policy. 2) Most number of people wants Guaranteed Returns so company must focus on this for the customer investment