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Impact of Advertisements on Investors at HDFC Standard Life Insurance

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This project is managing study on “Impact of advertisement on Investors – A case study in HDFC Standard Life Insurance” The scope of study is regarding the advertisements and therefore the presence of HDFC SLIC with relation to in door advertisements and their advertisements & their effectiveness & out door advertisements, however the folks wish to watch them. to understand the notice within the public like better to watch the ads and medium.

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Impact of Advertisements on Investors at HDFC Standard Life Insurance

  1. 1. I Visit www.projectskart.com for more information PROJECT ON “IMPACT OF ADVERTISEMENT ON INVESTORS – A CASE STUDY IN HDFC STANDARD LIFE INSURANCE” MBA ICFAI NATIONAL COLLEGE GULBARGA A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF COLLEGE GULBARGA COMPANY GUIDE FACULTY GUIDE WWW.PROJECTSKART.COM 1
  2. 2. I DECLARATION I declare that this project entitled “IMPACT OF ADVERTISEMENT ON INVESTORS – A CASE STUDY IN HDFC STANDARD LIFE INSURANCE” is my work carried out under the valuable guidance of my faculty guide and my company guide.This report neither full nor in part as ever before been submitted for awarding of any degree of either this university or any other university. Place: Date: WWW.PROJECTSKART.COM 2
  3. 3. I CERTIFICATE This is to certify that the Internship Project-2007 title “IMPACT OF ADVERTISEMENT ON INVESTORS – A CASE STUDY IN HDFC STD LIFE” a bonafide work of SHARANAPPA KARUR (Enrollment No: 6ND06851Center: GULBARGA). As original and has been done under my supervision in partial fulfillment of the requirement for the award of M.B.A for the period of four months from March 14 2007 to July 14 2007.] I am pleased to record here that his performance during the period was extremely satisfactory. FACULTYGUIDE CENTREHEAD Mrs.ANITA.C Mr. PRAKASH WWW.PROJECTSKART.COM 3
  4. 4. I [Certificate from Faculty Supervisor] CERTIFICATE This is to certify that the Management Thesis-I titled IMPACT OF ADVERTISEMNT ON INVESTORS – A _CASE STUDY IN HDFC STANDARD LIFE INSURANCE. Submitted by SHARANAPPA G KARUR Enroll No: 6ND06851 during Semester-III of the PG Program (Class of 2008) embodies original work done by him. Signature of the Faculty Supervisor Name (in Capitals) : Designation : Center : GULBARGA WWW.PROJECTSKART.COM 4
  5. 5. I ACKNOWLEDGEMENT At the outset, I would like to thank almighty in helping me complete this project report. I thank ICFAI National College for providing me an opportunity to undertake a project in Hyderabad. My sincere thanks to Mr.ARAVIND PEMMARAJU, Branch Manager of HDFC SLIC ABIDS branch Hyderabad, for providing me an opportunity to prepare this project and for spending his valuable time with me to give appropriate and relevant information that was needed. I express my sincere gratitude to my guide Mrs. ANITA, who helped me with her valuable guidance during the various stages of my project work. I also take the opportunity to express my profound thanks to all my lecturers for their encouragement and guidance. I would also like to thank my close friends all my group mates for extending their support and co-operation in completing this project work. I am also thankful to all my relatives who directly or indirectly assisted me in preparing this report. I also grateful to Mr. P TRINAD (centre head), Mr. RAKESH (SDM), for their support, encouragement and guidance. I extent the thank to Mr. V S ONKAR (Principal INC, Gulbarga) SHARANAPPA KARUR WWW.PROJECTSKART.COM 5
  6. 6. I ABSTRACT This project is dealing with study on “IMPACT OF ADVERTISEMENT ON INVESTORS – A CASE STUDY IN HDFC S.L.I.C.” The scope of study is about the advertisements and the presence of HDFC SLIC with reference to in door advertisements and their advertisements & their effectiveness & out door advertisements, how the people like to watch them. To know the awareness in the public prefer to watch the ads and print media. With a huge cut throat competition in insurance there is a need for each company to know its market share along with various aspect affecting the market share to come out of the competition as the leader. One has to have knowledge about their product and that of the competition and this information has to be up dated frequently as changes are fast in knowledge society. The 21st century the brands are less depend on attributes and more depend on awareness, life style the associated target customers. The rate of acceleration will be so high that increasingly the past will no more be the indicator of the future. The focus of sale will shift price to Company’s promotions. WWW.PROJECTSKART.COM 6
  7. 7. I CONTENTS: Sl no CONTENTS Chapter-1 Project 1 Introduction 2 Objectives of Project Title 3 Limitations 4 Research Methodology of study Chapter-2 5 Industry profile Chapter-3 6 Company profile Chapter-4 Product Analysis Chapter-5 7 Why the topic is advertisement 8 History of advertisement 9 Definition of advertisement 10 Training Schedule and structure 11 Questionnaire 12 Data Analysis 13 List of Table 14 List of charts 15 Findings 16 Suggestions 17 Conclusion 18 Chapter – VI On The Job Training 19 Bibliography Chapter-I WWW.PROJECTSKART.COM 7
  8. 8. I Introduction Life Insurance is “contract where by for a stipulated premium, the insuring company agrees to pay the insured, or his beneficiary, a fixed sum or its equivalent in income upon the happening of death or some other specified event.” The first Indian Life insurance company was the oriental Life Insurance Company, which was started In India in 1818 at Kolkata. A number of players (over 250 in life and about 100 in non-life) mainly with regional focus flourished all across the country. However the Government of India, concerned by the unethical standards adopted by some players against the consumers, nationalized the industry in two phases in 1956(life) and in 1972 (non-life). The Insurance business of the country was then brought under 2 public sector companies, Life insurance Corporation of India (LIC) and General Corporation of India (GIC).Reforms were initiated with the passage of Insurance Regulatory and Development Authority Bill 1999. IRDA was setup as an independent regulatory authority, which has put in place regulation in line with global norms. So far in the private sector, 12 life insurance companies and 9 general insurance companies have been registered. HDFC STANDARD LIFE Insurance Company is a joint agreement between 2 companies. Standard Life is one of the leading insurance companies in the world. It was incorporated in 14th. August 2000. OBJECTIVES WWW.PROJECTSKART.COM 8
  9. 9. I The objectives of the study are as under. They are to  know the consumers buying behavior  determine in which media is effective for advertising  Know hoe to consumer to watch an ads.  know about the short of promotional scheme the customer like  Know which type of out door advertising is effective ( Media, Press, News paper etc).  Determine the market & presence of HDFC SLIC & other insurance companies.  about the awareness about the different insurance companies  Know about the effect of Ads on consumers.  Know about the display Ads. LIMITATIONS: WWW.PROJECTSKART.COM 9
  10. 10. I · People were not willing to respond to the questions · Locating the target customers of HDFC STD LIFE is very time consuming. · Busy working schedule of the people · Survey is little bit costly · Detail study is not possible due to time constrain · Getting appointment with concerned persons is time consuming and may not find him also. · Some of the information we got is not reliable and accurate WWW.PROJECTSKART.COM 10
  11. 11. I RESEARCH METHODOLOGY OF THE STUDY The scope of study is about the advertisements and the presence of HDFC SLIC with reference to in door advertisements and their advertisements & their effectiveness & out door advertisements, how the people like to watch them. To know the awareness in the public prefer to watch the ads and print media. A process of finding a solution to a problem or a question through the use of scientific tools & techniques. It is a methodical & purposeful study conducted for present study on. Impact of advertisement on investors, Therefore, market research that will be adopted to collect data in an organized manner, with subsequent recording & analyzing of such data that will help to make effective decision process. The market research process consists of the following stages: 1. Defining the problem: The scope of study is about the advertisements and the presence of HDFC SLIC with reference to in door advertisements and their advertisements & their effectiveness & out door advertisements, how the people like to watch them. To know the awareness in the public prefer to watch the ads and print media. 2. Developing research plan: This study was conducted based on the information providing by the Branch-Manager of HDFC STD LIFE and the respondents who were administered the questionnaire during the survey. 3. Collection and sources of data: Sampling plan: WWW.PROJECTSKART.COM 11
  12. 12. I Sampling Units --- The survey is conducted with the help of convenience sampling method. Customers will be stratified or segmented according to their age, demography etc. The data is collection is done through Primary and Secondary. a. Primary Data: Primary data is collected through Questionnaire and personal interview with different type of people and financial consultants b. Secondary data: Secondary data is collected through Magazines, Broachers of HDFC SLIC, and websites. Sample Size ---Sample size was 100 respondents. Personal interview, questionnaire method & telephone interviews were adopted to communicate with customers. 4. Analysis of the Collected Information: This method involves converting raw data into useful information. The collected information is coded and edited. The data after coding is tabulated, evaluated & analyzed using statistical applications i.e., Hypothesis testing- Z test of significance for proportion and graphical method. 5. Report Research Findings: This phase marks the culmination of the marketing research effort. The report with the research findings is a formal written document. After data analysis, a detailed research report indicating the extent to which the objectives set for the research process have been fulfilled is made. The research findings & personal experience is used to propose recommendations to improve on existing strategy. WWW.PROJECTSKART.COM 12
  13. 13. I Chapter-II INDUSTRY PROFILE 2.1 Introduction 2.2 History of Insurance 2.3 Origin of Insurance 2.4 Insurance Business Today 2.5 Insurance Business in India 2.6Tax Treatment 2.7Insurance Regulatory Development Authority 2.8 Important milestone 2.1 Introduction WWW.PROJECTSKART.COM 13
  14. 14. I Insurance, legal contract that protect people from the financial costs that result from loss of life, loss of health, lawsuits or property damage. Insurance provides a means for individuals and societies to cope with some of the risks faced in everyday life. People purchase contracts of insurance called policies from a variety of insurance organization. Almost everyone living in modern industrialized countries buys insurance. For instance laws in most states require people who own a car to buy insurance before driving it on public roads. Lenders require anyone who finances the purchase of a home or car with borrowed money to insure that property. Business partners take out life insurance on each other to make sure the business will succeed even if one of the partners dies. 2.2 History of Insurance Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost. In another part of the world, nearly 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of “bottomry” referring to vessel bottoms and “respondent” referring to cargo. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters. WWW.PROJECTSKART.COM 14
  15. 15. I Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment. During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge. Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children. 3. Origin of insurance With the marine route being the bedrock of trade and commerce in those days, the practice of bottomry evolved, spread. With the growth of towns and trade in Europe, medieval guilds (group organized on the basis of some common objective, like traders) pooled in money to protect their members from loss by fire and shipwreck, to pay ransom if they were captured by pirates, and to provide burial and support in sickness and poverty. By the middle of the 14th century as evidenced by the earliest known insurance was common among maritime nations of Europe. Lloyd’s of London, the largest marine insurer today, was founded in 1688 in a coffee shop in London. Lloyd’s Coffee House WWW.PROJECTSKART.COM 15
  16. 16. I became the preferred place for merchants, ship owners and underwriters to transact business. Insurance developed rapidly with the growth of British commerce in the 17th and 18th centuries, and started becoming organized along the way going through a period of default and closures. The British brought insurance to India in 1818 replete with imperialist prejudice. The Oriental Life insurance company, the first insurance company in the country, insured only European widows. British insurance eventually began insuring Indian lives, but for a premium that was 15-20percent higher than that payable by the British. It was only 1870 that the disparity was corrected. Six Indians peeved by this second class treatment, set up Bombay Mutual Life assurance society, and started Insuring Indian lives at the same cost as British lives. NATIONALIZATION: Post Independent, discontent against insures reached a pitch. Business was chaotic, foreign insures were leaving the country, and Indian insures driven by greed business considerations weren’t earning much credibility. The cry for nationalizing insurance grew louder- a move that insurance were of course opposed to. On 19 January 1956, the life insurance business was nationalized. In one swoop the government snapped up 245 insures and provident societies. Eight months later Life insurance corporation was formed, which took over the business the erstwhile private insures and stated expanding at a frenetic pace. Today this monolith has 2100 branch offices 800000 agents and offers a bevy of insurance and investment product. Similar circumstances led to the nationalization of non-life (General life insurance). As in life insurance pre-nationalization there was inordinately large number of insures, many of whom were notorious for flouting investment norms and delaying settlement of claims. Non-life WWW.PROJECTSKART.COM 16
  17. 17. I insurance was nationalized in 1972. General Insurance Corporation of India was setup as holding company; a total of 107 private insures were merged and grouped to form GIC’s four subsidiaries. PRIVATISATION: There were various reasons given by the government to nationalize the insurance sector: take insurance to the masses, facilitate the flow of long-term funds into development of infrastructure in the country, and safeguard the interest of policyholders. Towards this end state insures did develop the insurance sector, though most experts believe these monopolies could have done much, much more. In the early nineties the government went on a reforms binge and started loosening controls on Indian Industry. In 1993, the government appointed the Malhotra Committee headed by former RBI Governor R.N.Malhotra to draw up a blueprint for insurance sector re-forms. The panel submitted its report a year later, recommending privatizations backed by staff entry guidelines and stringent regulation, so as to avoid a repeat of the pre- nationalization free-for-all. 2.4 Insurance Business Today Since the 1970’s the insurance business has grown d4ramtically and undergone tremendous change. As a result of the deregulation of financial services business- including insurance, banking and securities trading the roles, product and services of the formerly distinct business have become blurred. For instance citizens in the U.S state of California voted in 1988 to allow banks to sell insurance in the state. In Canada banks may also soon be allowed to sell Insurance. WWW.PROJECTSKART.COM 17
  18. 18. I Advances in the communication technology have also allowed traditionally distinct financial business to keep instantaneous track of developments in other business and compete for some of the same customers. Some insurance companies now offer deposit accounts and mortgages. In the United States life insurance companies now sell more pension plans and other asset management services than they do conventional life insurance. Developments in computer technology that have given insurance provider that ability to quickly access and process information have allowed them to custom design policies to fit the needs of individual customers. But increasing complexity of policies has also made some aspect of buying and selling insurance more difficult. For examples though the Internet offers tremendous access to information about prices, it has done little to simplify the process of comparing the offerings of different insurance policies and services. Therefore consumers have increasingly come to view insurance as a commodity, differing only in price from provider to provider. This attitude may lead people to buy insurance that does not give them the kind of coverage they need. Other types of technology and scientific development may also have great effect on insurance. By providing a broad scope of new information about people’s medical predispositions, genetic testing has the potential to redefine how providers of life and health insurance determine risk. Genetic engineering in medical treatment may provide new ways to extend people’s lives changing traditional assessment of the life expectancy. 2.5 Insurance Business in India: The first Indian life insurance company was the Oriental life insurance company which was started in India in 1818 at Kolkata. The Indian life insurance act 1912 was the first statutory WWW.PROJECTSKART.COM 18
  19. 19. I body that started to regulate the life insurance business in India. The Government of India nationalized the industry in 2 phases in 1956(life) and in 1972(non-life). The insurance business of the country was then brought under 2 public sector companies. I.e. LIC and GIC. Central Government took over the companies that were present at that time and as result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and breath of the country. The first general insurance company was established in the year 1850 in Calcutta by the British. In 1957 General insurance council a wing of the insurance association of India frames a code of conduct for ensuring fair conduct and sound business practices. 2.6 Tax Treatment One of the several reasons given to buy life insurance is to save up tax. Its true there are extremely generous tax breaks to be availed of with life insurance, both at the time of investment and payback, but that alone isn’t good reason to buy policies. Premiums: For the salaried the rebate under section 88 of the Income Tax Act is an effective way to lower tax liability. Under this section a percentage of investment made in specified instrument can be claimed as rebate within limits, and be subtracted from the tax payable. Premiums paid towards all the life insurance plans WWW.PROJECTSKART.COM 19
  20. 20. I qualify for tax rebate under section 88 along with investment like PPF and NSC. Death Claims and Maturity Benefit: Insurance payback- income, maturity benefit and death claims from most plans are tax-free. There are 2 exceptions though. The first case is if under the LIC’s Jeevan Aadhar insurance plan the handicapped dependent dies before the individual paying the premiums. In this case the survival benefit will form part of the income of the individual for that year and will be taxed at the income tax rate applicable. The other exception to this rule is single-premium plans, whose tax-free status was revoked by an amendment to the tax rules in Budget in 2003. Under the new arrangement if the annual premium paid on any life insurance policy exceeds 20% of the amount payable on maturity (not death), the returns from the plan will be taxed in the hands of the policyholder at the time of receipt. This clause has been made applicable with retrospective effect, which means that it will apply to fresh single premium policies sold, as also to existing plans that mature on or after 1st April 2003. Single premium plans are affected the most by this amendment as the premium payable on them is usually more than 20% of the sum assured. These plans essentially in the nature of insurance bonds were being used by individuals in the higher income bracket to earn high tax-free returns 2.7 Insurance Regulatory Development Authority Reforms in the insurance sector were initiated with the passage of the IRDA Bill in Parliament in dec1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and WWW.PROJECTSKART.COM 20
  21. 21. I registering the private sector insurance companies. The other decision taken to provide the supporting system to the insurance sector particularly in the life insurance companies was the launch of the IRDA’s online service for issue and renewal of licenses to agents. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the Private sector 12 life insurance and 6 general insurance companies have been registered. MAJOR PLAYERS UNDER IRDA 1. Life Insurance Corporation of India 2. ICICI prudential 3. Bajaj Allianz 4. HDFC Standard life 5. TATA Aig 6. Aviva 7. SBI Life 8. Sunmet life 9. AMP Sanmar 10. ING Vysya 11. Kotak Mahindra WWW.PROJECTSKART.COM 21
  22. 22. I 12. Birla sun life 2.8 Some of the important milestones in the life insurance business in India are: · 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. · 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. · 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. · 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. · 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. · 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore from the Government of India. Chapter-III COMPANY PROFILE WWW.PROJECTSKART.COM 22
  23. 23. I 3.1 HDFC STANDARD LIFE INSURANCE COMPANY LTD 3.2 INCORPORATION OF HDFC STANDARD LIFE 3.3 MISSION, VISION AND VALUES 3.4 ORGANIZATIONAL STRUCTURE 3.5 ABOUT STANDARD LIFE 3.6 BACKGROUND OF STANDARD LIFE 3.7 HDFC STANDARD LIFE PRODUCT 3.8 HDFC GROUP PRODUCTS COMPANY PROFILE Name of the Company: HDFC Standard Life Insurance Company Ltd. Year of establishment: 1977 WWW.PROJECTSKART.COM 23
  24. 24. I Name of the CEO: Deepak Satwalker 3.1 HDFC STANDARD LIFE INSURANCE COMPANY HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3 year joint venture agreement. Around this time Standard Life purchased a 5% stake in HDFC, further strengthening the relationship. The next three years were filled with uncertainty, due to changes in government and ongoing delays in getting the IRDA (Insurance Regulatory and Development authority) Act passed in parliament. Despite this both companies remained firmly committed to the venture. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. Around this time Standard Life purchased a further 5% stake in HDFC and a 5% stake in HDFC Bank. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual Fund was launched on 20th July 2000. WWW.PROJECTSKART.COM 24
  25. 25. I 3.2 Incorporation of HDFC Standard Life Insurance Company Limited: The Company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is the maximum investment allowed under current regulations. HDFC and Standard Life have a long and close relationship built upon shared values and trust. The ambition of HDFC Standard Life is to mirror the success of the parent companies and be the yardstick by which all other insurance company's in India are measured. Corporate Strength: · Strong Brand · Customer base over 2 million · Stable and experienced management · High service · High quality loan portfolio 3.3 Mission: · They aim to be the top new life insurance company in the market. · This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like- 1. Customer service of the highest order WWW.PROJECTSKART.COM 25
  26. 26. I 2. Value for money for customers 3. Professionalism in carrying out business 4. Innovative products to cater to different needs of different customers 5. Use of technology to improve service standards 6. Increasing market share Vision statement: “ The most successful and admired life insurance company which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry. In short, “The most obvious choice for all”. Values: · Security: Providing long term financial security to our policyholders will be our constant endeavor. We will be doing this by offering life insurance and pension products. · Trus t: We appreciate the trust placed by our policyholders in us. Hence, we will aim to manage their investments very carefully and live up to this trust. · Innovation: Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs 3.4 ABOUT HDFC Background HDFC was incorporated in 1977 with the primary objective of meeting a social need – that of promoting home ownership by providing long-term finance to households for their housing needs. HDFC was promoted with an initial share capital of Rs.100 WWW.PROJECTSKART.COM 26
  27. 27. I million.HDFC has ‘AAA’ rating by CRISIL and ICRA for seven consecutive years. These reflects the efficiency by which HDFC manage their asset bases of Rs.21450 Cr. Billion. HDFC’s 120 offices have serviced customers in over 2400 cities/towns. SUBSIDIARIES AND ASSOCIATES · HDFC Bank · HDFC Mutual Fund · HDFC Standard Life Insurance Company · HDFC Realty · HDFC Chubb General Insurance Company Ltd. · Intelenet Global Services Ltd. · Credit Information Bureau (India) Limited · Other Companies Co-Promoted by HDFC:  HDFC Trustee Company Ltd.  GRUH Finance Ltd.  HDFC Developers Ltd.  HDFC Ventures Trustee Company Ltd.  HDFC Investments Ltd.  HDFC Holdings Ltd.  Home Loan Services India Pvt. Ltd. 3.5. Background of Standard Life: The Standard Life Assurance Company, the main WWW.PROJECTSKART.COM 27
  28. 28. I shareholder of the Standard Life Asia, is Europe's largest mutual life insurance company with a history of more than 175 years. The company's financial position is regarded as "very strong" by Standard & Poor's (AA) and "excellent" by Moody's (Aa2). It provides financial services to more than 5 million customers, and employs over 13,000 staff in offices throughout the United Kingdom, Republic of Ireland, Spain, Canada, Germany, Austria, Hong Kong, China and India. These reflects the efficiency by which Standard Life manage their asset bases of $121Billion respectively. SUBSIDIARIES AND ASSOCIATES · Standard Life · Standard Life Bank · Standard Life Healthcare · Standard Life Investment 3.4 ORGANIZATIONAL STRUCTURE CHAIRMAN EXECUTIVE DIRECTOR WWW.PROJECTSKART.COM 28
  29. 29. I TERITORY DEVELOPMENT MARKET DEVELOPMENT MANAGER MANAGER ACCOUNTS DEVELOPMENT MARKET DEVELOPMENT MANAGER MANAGER TERITORY CO-ORDINATOR CUSTOMER EXECUTIVES ROUTE AGENTS 3.7 HDFC STANDARD LIFE INSURANCE PRODUCT HDFC STANDARD LIFE offer various insurance products that satisfy different needs of different people. Company offers you product for individual life cover as well as group cover. The different product that is given by the company can be categorized in to PIPS: WWW.PROJECTSKART.COM 29
  30. 30. I PROTECTION INVESTMENT Term Assurance Single premium whole of Loan cover term assurance life PENSION SAVINGS Personal pension plan Endowment assurance plan Unit linked personal pension Unit linked endowment assurance plan plan Money back plan Children’s plan Unit linked young star plan Protection, Investment, Pension and savings. Product Profile HDFC Standard Life offers plan that cover the risk of loss of income earning capacity on happening of specified events. Uncertainty is part of our everyday life. However, all the uncertain events can be insured. The focus is only on those uncertain events where income earning capacity is lost. Income stops on the happening of four major events. WWW.PROJECTSKART.COM 30
  31. 31. I o Death o Sickness o Accident o Retirement First 3 events are uncertain. Nobody can predict when they will happen. So we can have insurance for them. However, Retirement is a certain event. We know our age of retirement and it is a certain event so there can be no insurance cover for retirement. Another important point to be considered is the nature of accidents or sickness. There could be minor illness or accidents resulting in temporary disability. All of them need not result into loss of income earning capacity. We cover only those accidents and sickness where the income earning capacity is lost either permanently or for a specified minimum period. The Role Insurance is a basic need that everyone has. Our role as Insurance Solutions provider is to make him aware of these underlying needs and help him to arrive at appropriate solutions that would cater to his insurance needs. In this process, we will help him to build up a financial plan for a sound future. It calls for high degree of professionalism and integrity. A strong faith in the company along with customer orientation is a must. Insurance Products Today there are many insurance products available in the market. Each company has its set of products that it offers to the customers. This makes it difficult to keep track of all the products all the time. A better way to understand them is by way of classification. All insurance products can be classified in 4 basic categories. WWW.PROJECTSKART.COM 31
  32. 32. I This classification is based on the needs of the customers. Accordingly each of these categories has end need to be satisfied and all the products coming under that category aim to fulfill that need. E.g. Products coming under investment category aim to provide long-term real growth over the period. Thus understanding these categories will not only help us to understand various products but also help us to position our products strongly in a competitive market. Let us take a look at the distinctive features of each category. · Protection type of products: A typical protection type of product aims at protecting income earning capacity of the customers on happening of uncertain events mentioned above during the term of product. These are the pure risk products having no savings element. Naturally, these products don’t have any maturity benefits. High-risk cover at low costs is the unique feature of this type that makes this category most attractive for the prospects who want high insurance cover without spending much for it. Usually offered for a definite term, mainly the assurances come under this type. Various riders offered by different companies are also a part of protection category. · The claim is paid only if the stipulated event even happens otherwise there are no maturity values at the end of the term. You’ll also find variations when some companies offer to refund all the premiums paid but these products still come under this category. · Investment type of products: In investment type of products, the focus is on maximizing returns for the customer over a period time. In a way, it is opposite to protection type where the focus is maximizing the risk cover. Here the risk cover is very low. The objective is to WWW.PROJECTSKART.COM 32
  33. 33. I put maximum investments. The underlying principle is to commit money for a certain period of time and get the benefits of real long- term growth. The products are usually single premium policies where the entire premium is collected in advance. Surrenders are discouraged and there is a commitment for a certain minimum number of years. In death during the term, value of the investments is returned. · Pension Products: This is another very popular type of products. Along with the risk of an untimely death or disability, we also have a risk of living too long – outliving our source of income. In other words, one needs to ensure that he gets a decent income even after his retirement and continues to get it as long as he lives! This is where we have pension products addressing the need for a comfortable retirement. One can opt for an immediate pension or for pension at a future date (also called as deferred pension). There is a range of options that one can have when selecting a pension plan. There is a great amount of flexibility when it comes to selecting a pension product. The important point to be noted is that pension is a part of one’s present income that reserves for future consumption. Every year that income is accumulated and invested. The lump sum accumulation then is used for purchasing pension on the vesting date. · Saving type of products: People like to save. Our savings rate has been well above 20% of our GDP for last few years. They save for events like children’s marriage, education etc. Savings types of products aim to strike a good balance between risk cover as well as returns. It acts as a protection on savings. Sum assured is usually the targeted savings that one looks for. He gets that amount at the end of the term along with bonuses if it is a participating policy. He gets that amount at the end of the term along with bonuses if it is a participating policy. On the protection side if any unfortunate event happens WWW.PROJECTSKART.COM 33
  34. 34. I during the term, the sum assured (in other words the targeted savings) is still paid. So it encourages a person to save for an event at the same time that his savings are protected. This is the unique advantage of savings through life insurance that no other financial product offers. We find very popular products like Endowment Assurances; Money Back plans in this category. As stated earlier all the products come under these 4 broad categories. To understand a product, it is essential to find out the category of that product based on its features. Needless to say that it will not be possible to compare one category product to another. Each category is unique and caters to particular needs of the customer. The best approach is to find out what customer needs and then suggest a solution accordingly. Our products are classified within the broad framework of PIPS categories. Children's Plan Give your child the perfect start in life As a parent, your priority is your child’s future and being able to meet their dreams and aspirations. Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing fast. Will you be able to provide for all these needs of your child? Plan today to ensure a bright future for your child. Start building savings today with our HDFC Children’s Plan. So that your child is able to lead a life of respect and dignity with a secured financial future. Children’s Plan The Children’s Plan gives you: WWW.PROJECTSKART.COM 34
  35. 35. I o Invaluable financial support to your child. o Helps you customize an ideal plan for your child. o Provides you multiple options for multiple benefits The HDFC Children’s Plan is designed to secure your child’s future by giving your child (the beneficiary) a guaranteed lump sum on maturity or in case of your unfortunate demise early in the policy term. The premiums, paid by you, are invested by the company to give you good long-term returns. 3 EASY STEPS TO YOUR OWN PLAN Step 1 Choose the amount and policy term based on your child’s future needs Step 2 Choose any one of the 3 plan options as per your child’s requirement. Step 3 Work out the premium payable with your Financial Consultant. 3.8: Group Product: Group Term Insurance: HDFC Standard Life Insurance offers a Group Insurance scheme for companies called 'Group Term Insurance’. This product has been designed to offer innovative features and a high degree of customization. Gratuity Plan WWW.PROJECTSKART.COM 35
  36. 36. I The HDFC Gratuity Plan is an insurance policy, which offers you, as an employer and gratuity scheme trustee, a new and flexible way to fund your gratuity liability. The contributions that you decide to invest in this policy will assist you in meeting your gratuity obligations in a systematic manner. Leave Encashment Plan The HDFC Leave Encashment Plan is a flexible insurance policy which helps employers and leave encashment scheme trustees in funding leave encashment obligations without the employer’s profit and loss account being unexpectedly impacted. Development Insurance Plan: This product is well suited for the economically weaker sections of society and caters specifically to their needs. It makes available life cover at affordable rates. Chapter-IV Product Analysis 1. CHILDRENS PLAN: WWW.PROJECTSKART.COM 36
  37. 37. I Children’s plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in future; even in case of the insured unfortunate death during the policy term children’s plan receive simple reversionary bonuses, which arte usually added annually. This is a flexible plan with three options for you to choose from depending on your requirements. 2. UNIT LINKED YOUNG STAR PLAN: HDFC Unit linked young star plan is designed to provide a lump sum to the child at maturity it also provides financial security to the child in the future. Even in case of the insure parents unfortunate death during the policy term the unit linked young star plan also gives the option of additional protection against the six common critical illness. The premiums are invested in units of the investment funds of your choice, based on the prevailing unit prices. On maturity the values of the units will be paid on death the selected basic some assured is paid and the policy continuous until maturity. Following the valid death or critical illness clime, we will pay the future premium into your policy as and when they would have fallen due. 3. ENDOWNMENT ASSURENCE PLAN It is a participating (with profits) insurance plan that offers the following features: · Provides Financial support to the family by way of a lumpsum payment incase of the unfortunate death of the life assured within the term of policy. WWW.PROJECTSKART.COM 37
  38. 38. I · Provides the lump sum payment to the life assured plus nay bonus additions. · This plan is with profit saving plan and is well suited for saving your long term financial goals. · This plan also helps provide for the needs of your family in your absence by paying out a lump sum in the event of your unfortunate death during the term of the policy. 4. UNIT LINKED ENDOWNMENT ASSURENCE The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on maturity or on earlier death. The unit linked endowment plan also gives the option of additional protection against the six common critical illnesses, as well as additional protection if death is a result of an accident. 5. MONEY BACK PLAN It is a participating insurance plan that offers the following · Payment of cash lump sums, each of which is a proportion of the basic sum assured, at 5year intervals during the term of the policy. · On survival up to maturity, a payment equal to the basic sum assured plus the bonus additions less the cash lump sums paid earlier is provided. · In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided .This is over and above the earlier payouts. 6. SINGLE PREMIMUM WHOLE LIFE INSURANCE PLAN WWW.PROJECTSKART.COM 38
  39. 39. I Single Premiums Whole of Insurance Plan is well suited to your long-term investment needs. This participating plan offers the following benefits A sound Investment The money is invested in the profits fund. The fund aims to provide secure and stable long term growth. Normally; we will declare a compound reversionary bonus for the policy year and add it to policy at its anniversary. Flexibility of term Even after choosing the policy, the policy term can be decided. For a 4weeks after any one of the 10TH , 15TH, 20TH and subs sequent 5 years anniversaries, the assured can be received and also bonus if any. Once the surrender value the policy can be terminated any time, after it has been in force for at least 6 months and receives a surrender value. Then the nominee gets the sum assured secured by the premium, plus any attaching bonuses. 7. TERM ASSURENCE PLAN Under this plan, a sum assured is payable in case of death of the life assured during the term of the contact. One can choose the lump sum that would replace the income lost to ones death. Since this non-participating plan is a pure risk cover plan, no benefits are payable on the survival to the end of the term of the policy. 8. LOAN COVER ASSRENCE PLAN This plan provides a lump sum on the unfortunate death of the life assured during the term of the plan. The lump sum will be a WWW.PROJECTSKART.COM 39
  40. 40. I decreasing percentage of the initial sum assured. As the outstanding loan doctresses as per the policy schedule. 9. PERSONAL ASSURENCE PLAN The policy is basically a savings contact, which is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is permitted by the prevailing regulations. Chapter-5 Project Title WWW.PROJECTSKART.COM 40
  41. 41. I “IMPACT OF ADVERTISEMENT ON INVESTORS – A CASE STUDY IN HDFC STANDARD LIFE INSURANCE” WHY THE TOPIC OF ADVERTISEMENT In the 21st century the more emphasis will be on the creative advertisement & various promotions. The brand equity & brand development will be dependent on various promotions. The MBA coerces in marketing will focus more on creativity, imaginations, ideas, & innovation. The ability to look at numbers & analyze will not be sufficient. The MBA must be able to relate it to the people. Brand management groups will be structured like movie companies or TV channel production companies. They actually produce movies to promote their brands. The advertising & promotion will subsidize the market. The companies may develop joint promotions companies so as to deliver more value to customers. The prevalent from of the alliance of this century is likely to be “Advertisements with promotional schemes”. INTRODUCTION TO ADVERTISENENT History of Advertisement: In earlier times advertise meant merely to announce or to inform. Some advertisements today still do just that: provides information about ‘birth’ ‘deaths’ ‘engagements’ with little or no intention to persuade. The majority of classified advertisements WWW.PROJECTSKART.COM 41
  42. 42. I provide useful information about jobs, accommodations, and sale of second hand vehicles, & furniture etc. Recruitment advertisement tender notices and similar type of public announcements also provide the public with valuable information, which would otherwise be difficult to obtain easily. The earliest advertisements in the first English news paper in India the 18th century was little more than public announcements about the arrival of ships and merchandise from abroad. Advertising as we understand it today was not used until about 200 years ago. The form of advertisement for the transmission of information dates back to ancient Greece & Roman. Cries and signs were used to carry information for advertising goods & services well before the development of printing. Even during the middle ages advertising signs were extensively used. These signs generally considered of illustrations of symbols of the products advertised. The upsurge in advertising came after development of printing. When printing techniques were perfected, and as this industry developed, this signs were replaced by writing words and messages. During the 17th century when news papers started appearing in various parts of words, news paper advertising began to develop. This was an important phase in history of advertising. During this century, news papers appeared through out Europe, and advertisements in them were very different from those by illustrations and signs at the locations of mercantile establishments. The invention of printing revolutionized the advertising but news papers had a large number of advertisements. At the end of 17th century a great number of commercial newspapers were published in England and else where earlier advertisements in the newspapers were for books, marriage offers new beverages and for travel. Advertising is the source of revenue for news papers and selling came into existence. Around 1840 several people were selling space in newspapers were brought out on regular basis. WWW.PROJECTSKART.COM 42
  43. 43. I In the 19th century advertising marked a great expansion. In 1892 the first advertising agency sprang up in London. (Reynell by sons). In 1841 in USA the first advertising agency was started (founded by Volney palmer). In 1875 the modern advertising agency was set up in Philadelphia (N.V Ayer & sons). They offered not only space selling but also many other services. Towards the end of 19th century, creative advertisement developed. By the end of 1920s advertising had grow into major industry in USA. By then majority of automobiles and package food were advertised on large scale. This led to expansion of advertising agency business. It was in 1948 that television becomes a popular medium for advertising. During the next 5 to 7 years it was considered to be an important advertising medium. In our 20th century advertisement bloomed to its full form. More emphasis was laid on advertisement copy. Art services and advertisement production became more and more important. Media selection was also considered equally important. Definitions: T he American marketing association, Chicago, defines as “any paid form of non personal presentation of ideas, & services by an identified sponsor”. John E Kennedy, a Canadian copy writer describes advertising as “salesmanship in print”. Sidney Bernstein reinforces Kennedy’s defenation by describing “advertising as a substitute for human sales man”. WWW.PROJECTSKART.COM 43
  44. 44. I When a marketer or a firm has developed a product to satisfy market demand after thoroughly analyzing the market, there is a need for establishing contact with the target market to eventually sell the product. Advertising is one of the means of such mass communications along with such with such other means of publicity. Sales promotion and public relations. Services, images & ideas through information and persuasion. Basically an advertisement is an announcement to the public of a product service or idea through a medium to which the public has access. The media may be print, such as newspapers, posters, banners, & hoarding. Electronic media such as radio, television, video, cable, phone, web site or other. An advertisement of persuasive mass communication with the public. The communication is usually one sided in one direction from the advertiser and to the public. The members of the public are free to respond to it in their own way. Advertising creates awareness of brand, to supplement the advertising with sales promotion, which are often more effective in actually getting consumer to try the brand. Advertising is multidimensional. It is a form of mass communication, a power full marketing tool a component economic system, a means of financing to the mass media, a social institution, an art form, an instrument of business management, a field of employment and a profession. Advertising process: There is a transmission of message from sender to the receiver. The end result of the advertising process understands a message. The message is transmitted through media or certain channels. The response to the message is known by receiving the feed back from the recipient of advertisement. WWW.PROJECTSKART.COM 44
  45. 45. I The sender is the source of the message in symbolic form. It is called encoding. The media like TV or newspaper carries this message. The receiver who shows particular response that is communicated back to the sender. Receives the message must accomplish three tasks in order to be effective. 1. It must gain attention of the receiver 2. It must be understood 3. It must stimulate the needs of the receiver and suggest appropriate method to satisfy these needs. DATA ANALYSIS Table –1 7. Do you want to improve your financial position? SL Do you want to improve NO OF IN WWW.PROJECTSKART.COM 45
  46. 46. I NO. your financial position RESPONDENTS PERCENTAGE 1 YES 100 100% 2 NO 00 00% 3 TOTAL 100 100% 100 80 60 40 3-D Column 1 20 0 yes no The above inference we come to know that out of total sample size of 100; 100 i.e., 100% say that they want to improve their financial position. This shows that everybody want to improve their financial position. 8. Do you know about HDFC STANDARD LIFE? SL Do you know about HDFC NO OF IN NO. STANDARD LIFE RESPONDENTS PERCENTAGE 1 YES 80 80% 2 NO 20 20% 3 TOTAL 100 100% WWW.PROJECTSKART.COM 46
  47. 47. I 80 60 40 East 20 0 yes no From the above table and graph it could be inferred that out of total sample size of 100; 100 i.e., 80% say they know about HDFC SLIC, and 20% of people they don’t know about HDFC SLIC. 9. Did you have insurance policy? SL Did you have insurance NO OF IN NO. policy RESPONDENTS PERCENTAGE 1 YES 90 90% 2 NO 10 10% 3 TOTAL 100 100% WWW.PROJECTSKART.COM 47
  48. 48. I 100 80 60 40 East 20 0 yes no The above inference we come to know that out of total sample size of 100; 100 i.e., 90% say they have insurance policy, and only 10% of people say that they not have insurance policy. 10. If yes in which company did you taken insurance policy? SL If yes in which company NO OF IN NO. did you taken insurance RESPONDENTS PERCENTAGE policy 1 LIC 38 38% 2 ICICI 10 10% 3 HDFC 40 40% 4 Bajaj allianz 12 12% 5 TOTAL 100 100% WWW.PROJECTSKART.COM 48
  49. 49. I 40 30 20 East 10 0 LIC ICICI HDFC Bajaj Allianz The above inference we come to know that out of total sample size of 100; 100 i.e., 38% of people taken insurance policy in LIC, 10% of people taken insurance policy in ICICI, 40% of people taken insurance policy in HDFC SLIC, 12% of people taken insurance policy in Bajaj allianz. 11) What is the reason for preferring that company? SL What is the reason for NO OF IN NO. preferring that company RESPONDENTS PERCENTAGE 1 Good return 44 44% 2 Good service 30 30% 3 Trust 16 16% 4 Popular 05 05% 5 Others 05 05% 6 TOTAL 100 100% WWW.PROJECTSKART.COM 49
  50. 50. I 50 40 30 20 East 10 0 Good Goood Trust Popular Othes return service The above inference we come to know that out of total sample size of 100; 100 i.e., 44% of people taken insurance policy for good return, 30% of people taken insurance policy for good service, 16% of people taken trustiness of the company, 05% of people seeking only popular, and 05% of people seeking other purpose. 12). Are you taken which type of insurance policy? SL Are you taken which type NO OF IN NO. of insurance policy RESPONDENTS PERCENTAGE 1 Children’s plan 25 25% 2 Unit linked young star 30 30% 3 Unit linked young star plus 25 25% 4 Pension plan 10 10% 5 Money back policy 05 05% 6 Other 05 05% 7 TOTAL 100 100% WWW.PROJECTSKART.COM 50
  51. 51. I 30 25 20 15 East 10 5 0 CP ULYS ULYS Plus Pen.plan Money.B.P Other The above inference we come to know that out of total sample size of 100; 100 i.e., 30% of people taken insurance policy of unit linked young star plan, 25% of taken unit linked young star plan, 25% of people taken children’s plan, 10% of people taken of pension plan, 05% of people taken money back policy, and 05% of people taken other policies. 13. For what purpose did you taken insurance policy? SL For what purpose did you NO OF IN NO. taken insurance policy RESPONDENTS PERCENTAGE 1 Tax benefit 30 30% 2 Risk cover 20 20% 3 Good return 30 30% 4 Secured life 20 20% 5 TOTAL 100 100% WWW.PROJECTSKART.COM 51
  52. 52. I 30 25 20 15 10 East 5 0 Tax benefit Risk cover good return Secuerd Money The above inference we come to know that out of total sample size of 100; 100 i.e., 30% of people taken insurance policy taken for tax benefit, 20% of people policy taken for risk cover, 30% of people policy taken for good return, 20% of people for secured money. 14. How do you feel about HDFC insurance industry advertisement? SL How do you feel about NO OF IN NO. HDFC insurance industry RESPONDENTS PERCENTAGE advertisement 1 Very good 40 40% 2 Good 40 40% 3 Better 15 15% 4 Poor 05 05% WWW.PROJECTSKART.COM 52
  53. 53. I 5 TOTAL 100 100% 40 35 30 25 20 East 15 10 5 0 v.good good better poor The above inference we come to know that out of total sample size of 100; 100 i.e., 40% of people are said that HDFC SLI advertisement is very good, 40% people said good, 15% of people says better, and only 05% of people say poor. 15. Which places are better suitable for attracting customers through advertisement? SL Which places are better NO OF IN NO. suitable for attracting RESPONDENTS PERCENTAGE customers through advertisement 1 Public place 40 40% 2 Corporate co. 17 17% 3 College 20 20% WWW.PROJECTSKART.COM 53
  54. 54. I 4 Rural area 20 20% 5 Other places 03 03% 6 TOTAL 100 100% 40 30 20 10 3-D Column 1 0 Public Corporate- College Rural area Other place co The above inference we come to know that out of total sample size of 100; 100 i.e., 40% of people are said that public place better suitable for advertisement, 17% of people say corporate company, 20% of people say rural area and colleges and 03% of people say other different places. 16. Are you favors of which insurance company? SL Are you favors of which NO OF IN NO. insurance company RESPONDENTS PERCENTAGE 1 LIC 32 32% 2 HDFC SLIC 28 28% 3 Bajaj allianz 15 15% 4 Reliance 12 12% 5 ICICI 08 08% 6 Others 05 05% 7 TOTAL 100 100% WWW.PROJECTSKART.COM 54
  55. 55. I 35 30 25 20 15 3-D Column 110 5 0 LIC HDFC Bajaj Relience ICICI Other Allianz The above inference we come to know that out of total sample size of 100; 100 i.e., 32% of people are favor of LIC, 28% of people are favor of HDFC SLIC, 15% of people are favor of Bajaj allianz, 08% of people are favor of ICICI pru, 12% of people favor of Reliance, 05% of people are favor of other insurance company. 17. Which advertising media is more popular for insurance industry? SL Which advertising media is NO OF IN NO. more popular for insurance RESPONDENTS PERCENTAGE industry 1 Television 64 64% 2 News paper 13 13% 3 Radio 03 03% 4 Magazine 08 08% 5 Displays 12 12% 6 TOTAL 100 100% WWW.PROJECTSKART.COM 55
  56. 56. I 80 60 40 3-D Column 1 20 0 TV News paper Radio Magazine Displays The above inference we come to know that out of total sample size of 100; 100 i.e., 64% of people say that television advertisement is more popular for insurance industry, 13% of people say that news paper advertisement is more popular, 03% of people says radio, 08% of people say magazine advertisement, 12% of people says display advertisement more insurance industry. 18. Which type of advertising method will be more effective on investors? SL Which type of advertising NO OF IN NO. method will be more RESPONDENTS PERCENTAGE effective on investors 1 Emotional 40 40% 2 Happy 13 13% 3 Song 12 12% 4 Secured life 25 25% 5 Others 10 10% 6 TOTAL 100 100% WWW.PROJECTSKART.COM 56
  57. 57. I 4 0 3 0 2 0 10 Ea s t 0 Em o t i o n a l Ha p p y S o n g S e c u r e d Ot h e r s l i f e The above inference we come to know that out of total sample size of 100; 100 i.e., 40% of people say that emotional advertisement is bringing more effective on investors, 13% of people are side of happy movements advertisement, 12% of people are side of song, 25% of people are side of secure life, 10% of people are side of other method of advertisement. 19. Which type of display shoes is more effective on investors? SL Which type of display NO OF IN NO. shoes is more effective on RESPONDENTS PERCENTAGE investors 1 Pictures 19 19% 2 Plain text 17 17% 3 Film star 30 30% 4 Sports man 24 24% 5 Others 10 10% 6 TOTAL 100 100% WWW.PROJECTSKART.COM 57
  58. 58. I 30 25 20 15 10 East 5 0 Pictures Plain textFilm star Sports others man The above inference we come to know that out of total sample size of 100; 100 i.e., 19% of people say that picture display shows that more effect on investors, 16% of people are say that plain text is showing more effect on investors, 30% of people are say that film stars display advertisement is showing more effect on investors, 20. Which type of promotional scheme is more helpful to attract the customer? SL Which type of promotional NO OF IN NO. scheme is more helpful to RESPONDENTS PERCENTAGE attract the customer 1 Gift 12 12% 2 Cash prize 28 28% 3 Holiday trips 12 12% 4 Discount 15 15% 5 Gold 33 33% WWW.PROJECTSKART.COM 58
  59. 59. I 6 TOTAL 100 100% 35 30 25 20 15 East 10 5 0 Gift Cash Prize Holyday trips Discount Gold The above inference we come to know that out of total sample size of 100; 100 i.e., 12% of people say that providing gift to the customers is best promotional scheme, 28% of people say cash prize is best promotional sceme, 12% of people say that providing holiday trips to the customers is best scheme, 15% of people say that discount scheme is better, and 33% of people say that arranging gold scheme to the customer is more better. 21. Which is the popular advertising company? SL Which is the popular NO OF IN NO. advertising company RESPONDENTS PERCENTAGE 1 LIC 10 10% 2 HDFC 40 40% 3 Reliance 20 20% 4 ICICI 20 20% 5 Others 10 10% 6 TOTAL 100 100% WWW.PROJECTSKART.COM 59
  60. 60. I 40 30 20 East 10 0 LIC HDFC RELIANCE ICICI OTHERS The above inference we come to know that out of total sample size of 100; 100 i.e., 40% of people say that HDFC SLIC is the more popular advertising insurance company, 20% of people say ICICI & Reliance insurance companies are popular advertising, and than remaining LIC and other insurance companies are popular in advertisement. 22. Do you have intention to take another policy? SL Do you have intention to NO OF IN NO. take another policy RESPONDENTS PERCENTAGE 1 YES 30 30% 2 NO 70 70% 3 TOTAL 100 100% WWW.PROJECTSKART.COM 60
  61. 61. I 70 60 50 40 30 3-D Column 1 20 10 0 Yes No The above inference we come to know that out of total sample size of 100; 100 i.e., 30% of people say that they are not ready to take another policy and 70% of people say they are ready to take insurance policy. 23. If yes are you ready to take which policy? SL If yes are you ready to NO OF IN NO. take which policy RESPONDENTS PERCENTAGE 1 Children’s plan 08 08% 2 Unit linked young star 10 10% 3 Unit linked young star plus 08 08% 4 Pension plan 02 02% 5 Others 00 00% WWW.PROJECTSKART.COM 61
  62. 62. I 6 TOTAL 100 100% 10 8 6 4 Ea s t 2 0 C - P U LYS U LYS P LU S P e n s i o n Ot h e r p l a n The above inference we come to know that out of total sample size of 100; 100 i.e., 08% of peoples are ready to take children’s plan, 10% of people ready to take unit linked young star,08% of peoples are ready to take unit linked young star plus, and 02% of peoples are ready to take pension plan. 24. Are you aware of HDFC standard life Insurance? SL Are you aware of HDFC NO OF IN NO. standard life Insurance RESPONDENTS PERCENTAGE 1 YES 80 80% 2 NO 20 20% 3 TOTAL 100 100% WWW.PROJECTSKART.COM 62
  63. 63. I 80 60 40 East 20 0 Yes No The above inference we come to know that out of total sample size of 100; 100 i.e., 80% of peoples are aware of HDFC SLIC, and 20% of peoples are not aware of HDFC SLIC. FINDINGS · Above analysis I find out that 100% of people say that they are ready to improve there financial position and no one person says not ready to improve financial position. This shows everybody ready improve their financial position. WWW.PROJECTSKART.COM 63
  64. 64. I · It clearly states that 80% people know about HDFC SLIC and 20% people don’t know about HDFC SLIC. · I find out that 90% people are taken insurance policies and 10% of peoples are not taken insurance policy. · The above analysis I come to know that out of total sample size of 100; 38% of peoples taken policies in LIC, 35% of people taken policies in HDFC SLIC. · Above analysis I find out that maximum % of people preferring good company for good return and 30% of of people choosing good company for good service, and less percentage of people choosing good company for popular.. · I find out that more percentage people taken unit linked young star plus plan, and less percent of people taken pension plan. · I find out that 30% of people taken policy for tax benefit, 30% of people taken policy for good return, 20% of people taken policy for risk cover, and 20% of people taken policy for secure money. · I find out that 40% of people say very good feel about HDFC SLIC, and 40% saying good, better 15%, poor only 05% people says. · I come to know through this survey 43% of people says that public place better suitable for attracting the customers through advertisement, 17% people says corporate company, 20% of people says rural areas and colleges. · I found out that maximum peoples are favors of LIC, 28% of people favors of HDFC SLIC. · I come to know that television advertisement is more popular for insurance advertisement 64% of people says that, 13% of people say news paper advertisement is popular for insurance industry, more less percent of WWW.PROJECTSKART.COM 64
  65. 65. I people says radio advertisement more popular for insurance industry. · I come to know that maximum percent of people says that emotional advertisement is more effect on investors, and less percent of people says that music. · I come to know that 30% of people say that film stars display advertisements are more effect on investors, and less percent of people says that pictures only. · I come to know that 33% of people say that gold promotional scheme is better to attract the customers, 28% of say that cash prize promotional scheme help full to attract the customers, gift 12%,discount 15, holiday trips 12% of people says. · I come to know that maximum percent of people says that HDFC SLIC is the popular advertising insurance industry, and only 10% of people say LIC popular insurance industry. · I come to know that 30% of people have intention to take insurance policy, and 70% of peoples not have intention to take insurance policy. · Finally in come to know 80% of peoples are aware of HDFC SLIC, SUGGESTIONS: · Through the company has a good brand name, they should expand there business at rural areas. WWW.PROJECTSKART.COM 65
  66. 66. I · Company has to use more and more promotional activities like distributing the company brochures and publishing in newspapers and through Radio, television, earning boards etc. · Company should concentrate on providing door to door advertisement. · Should provide better services to the customers. . CONCLUSION: “Training is an act of increasing the knowledge and skill of students for doing a particular study” According to my study it states that HDFC standard life is such organizations, which always focus on customers and advertisement WWW.PROJECTSKART.COM 66
  67. 67. I for competition in insurance sector, according to my study it is also a one of the leading insurance company. Chapter-VI ON THE JOB TRAINING (O.J.T) WWW.PROJECTSKART.COM 67
  68. 68. I HDFC Standard Life is the company where I have doing my on the job program, which is India’s most respected private insurance company. My OJT was started on 20th March 2007. 1. Objectives: The main Objective of the OJT is to develop our self and adapt to any situation, gain a new experience and to face people around us, which would help us in future. The other objectives are, · To visit corporate and collect database. · To get a real time experience with the working atmosphere in an organization · To make Telecalling and fix appointment. · To study more about the insurance products · To learn the real art of convincing people · To visit potential client and impart the knowledge about the product and convince them to purchase the products. · To study about Recruitment and Training procedure adopted by Financial Consultants in HDFC STD LIFE. 2. Task: · Collecting the data base · Making the cold calls · Fixing the appointments WWW.PROJECTSKART.COM 68
  69. 69. I · Meeting the clients for converting them as prospective customer as well as to become a Financial Customer. 3. Strategy: Actually the company has said to meet the friends, relatives, colleges, etc.suspected customers directly or to collect the contact numbers. And then make cold calls, and meet them. So I started my OJT by collecting database mainly from friends, relatives, and different company people. And I met the clients to convert them as a prospective customer. I was able to convert them as prospective customer. a. Questionnaire:-First strategy is Preparing Questionnaire. Preparing questionnaire based on MT title. Preparing questionnaire is one of the strategy we can get total information about particular customers. Using questionnaire we can analyze the data perfectly and easily get the result of that research. b. Field work:-After Preparing Questionnaire next step is going to field work .To meet the different type people and taking feedback of that questionnaire. In this step we have to collect the maximum data. c. Cold calls:-After collection of data next step is a cold call. In this step based on data making calls to particular client and explaining about benefits of financial consultants and fixing appointment to customer. WWW.PROJECTSKART.COM 69
  70. 70. I 4. OJT Target: In the training schedule itself company has given me information about the OJT, which I have to undertake for the period of four months, which starts from 14th of March 2007 to 14th of July 2006. OJT is a total fieldwork in which I have given a target and I have been informed to visit friends, relatives, local Hospitals, Corporate offices, Housewife’s to reach my target. Our OJT will be undertaken in groups. Company has divided us in different groups and each group has assigned a target depending on the individual targets. 5. Achievements: Within 4 months I sold 06 policy of Rs 10,000 each premium.i, e. 60000 business. 6. LIMITATIONS WWW.PROJECTSKART.COM 70
  71. 71. I · People were not willing to respond · Some of the information we got is not reliable and accurate · Busy working schedule of the people · Locating the target customers of HDFC STD LIFE is very time consuming · Detail study is not possible due to time constrains · The natural market area used to conduct the survey is also limited · Not getting the appointments from the customers through telecalling during the working hours, when they will be busy with their work. Respondents may have to be contacted repeatedly, to fix the appointments at their convenient time 7. LIMITATIONS WWW.PROJECTSKART.COM 71
  72. 72. I · People were not willing to respond · Some of the information we got is not reliable and accurate · Busy working schedule of the people · Locating the target customers of HDFC STD LIFE is very time consuming · Detail study is not possible due to time constrains · The natural market area used to conduct the survey is also limited · Not getting the appointments from the customers through telecalling during the working hours, when they will be busy with their work. · Respondents may have to be contacted repeatedly, to fix the appointments at their convenient time. 7. CONCLUSION: By under going this OJT each day I got different experience by met to different customers. And the OJT has given me tremendous WWW.PROJECTSKART.COM 72
  73. 73. I exposure about the customer’s perception and their level of satisfaction. By meeting different type of customers my communication skill has also improved. By this I learnt how to sell the products, I learn how to convince to the customers, how to behavior with others, building network, how to spend money, Whatever exposure we are getting here it will definitely help us in future. BIBLIOGRAPHY WWW.PROJECTSKART.COM 73
  74. 74. I To obtain more information regarding the present study & to substantiate it with theoretical following references were made: List of Books and other Supplementary material referred: o Retail management- ICFAI National College, Course Material published in March 2004. Rajan Saxena – Marketing Management, Second Edition, sixth reprint 2004, published by Tata McGraw Hill publishing company limited, New Delhi 1997 o Philip Kotler – Marketing Management, 10th edition (The millennium edition), published by Prentice Hall of India Private Limited. Chapter 6- analyzing Consumer Markets & Buyer Behavior, Page No- 159-186. o Marketing Management-Developing marketing Strategies ICFAI National College, Course Material published in March 2004. WEBSITES VISITED: o www.Hdfc std life insurance.com o www. IRDA .COM o www.licisuranceltd.com o www.insurence .com Questionnaire Dear Respondents WWW.PROJECTSKART.COM 74
  75. 75. I I (Sharanappa Karur) am a student of MBA at ICFAI National College, Gulbarga am doing project in HDFC STANDARD LIFE. This questionnaire is designed to study the “Impact of Advertisement on Investors – A case study regards with HDFC standard life insurance” . Your contribution to this study would be immeasurable to this area. The data obtained will be kept confidential & strictly used only for academic purpose. I request you to give us your precious time to fill the questionnaire. 1. Name:-……………………………Age………… 2. Sex: Male [ ] Female [ ] 3. Education: a) SSLC [ ] b. PUC [ ] c. Graduate [ ] d. Post- Graduate [ ] 4. Occupation:-…………………….. 5. Annual income:- [ ] Below 2 lakhs [ ] above 5 lakhs [ ] below 7 lakhs [ ] above 7 lakh 6. Phone No:-……….. E-mail ID:-……….. 7. Do you want to improve your financial position: - Yes [ ] No [ ] 8. Do you know about HDFC STANDARD LIFE? Yes [ ] No [ ] 9. Did you have insurance policy? WWW.PROJECTSKART.COM 75
  76. 76. [ ] yes [ ] no I 10. If yes in which company did you taken insurance policy? a) [ ] LIC b) [ ] HDFC c) ICICI pru d) [ ] Reliance e) [ ] Bajaj allianz f) other 11. What is the reason for preferring that company? a) [ ] Good return b) [ ] Good service c) [ ] Trust d) [ ] Popular e) [ ] other 12. Are you taken which type of insurance policy? a) [ ] Children’s plan b) [ ] Unit linked young star c) [ ] Unit linked young star plus d) [ ] Pension plus e) [ ] Other plans……… 13. For what purpose did you taken insurance policy? a) [ ] for tax benefit b) [ ] for risk cover c) [ ] for good return d) [ ] for secure money e) [ ] any other purpose…… 14. How do you feel about HDFC insurance industry advertisement? a) [ ] very good b) [ ] good c) [ ] better WWW.PROJECTSKART.COM 76
  77. 77. I d) [ ] poor 15. Which places are better suitable for attracting customers through advertisement? a) [ ] public place b) [ ] corporate companies c) [ ] colleges d) [ ] rural areas e) [ ] other places…… 16. Are you favors of which insurance company? a) [ ] LIC b) [ ] HDFC c) [ ] bajaj allianz d) [ ] reliance e) [ ] other ins co, ……….. 17 Which type of advertising media will be more effective on investors? a) [ ] TV b) [ ] news paper c) [ ] displays d) [ ] radio e) [ ] magazines f) [ ] other media….. 18. Which type of advertising method will be more effective on investors? a) [ ] Emotional b) [ ] secure for life c) [ ] Music or song d) [ ] fantasy e) [ ] others 19. Which type of display shoes is more effective on investors? a) [ ] pictures b)[ ] plain text c)[ ] film stars d) [ ] politicians e) [ ] others WWW.PROJECTSKART.COM 77
  78. 78. I 20. Which type of promotional schemes is more helpful to attract the customer? a) [ ] Gifts b) [ ] cash price c) [ ] Holiday trips d) [ ] discount e) [ ] Gold f) [ ] others 21. Which is the popular advertising insurance company? a) [ ] LIC b) [ ] HDFC c) [ ] AVIVA d) [ ] reliance e) [ ] other 22. Do you have an intention to take another policy? a) [ ] yes b) [ ] No 23. If yes which type of policy? a) [ ] Children’s plan b) [ ] Unit linked young star c) [ ] Unit linked young star plus d) [ ] Pension plus e) [ ] Other plans……… 24. Are you aware of HDFC standard life insurance? a) [ ] Yes b) [ ] No “THANK YOU FOR YOUR VALUABLE TIME & CO- OPERATION” WWW.PROJECTSKART.COM 78

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