This document is a dissertation submitted by Ms. Divya Ramesh to Bangalore University in partial fulfillment of an MBA degree. The dissertation focuses on customer value management at ICICI Prudential Life Insurance Company Ltd. in Bangalore. The dissertation includes sections on the conceptual framework of customer value management, the objectives and significance of the study, a review of relevant literature, the research methodology used, a profile of ICICI Prudential, data analysis and findings from a survey conducted with customers, and conclusions and recommendations. The key findings are that brand name, variety of policies, and good servicing are the most important factors for customers when choosing an insurer. The document makes recommendations on how ICICI Prudential

1. „CUSTOMER VALUE MANAGEMENT‟ AT
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.
BANGALORE
Submitted in partial fulfillment of the requirements for the award of
Masters of Business Administration Degree of Bangalore University
Submitted By:
Ms. Divya Ramesh
( Reg. No. 02XQCM6019 )
Under the guidance of
Dr. K.V.PRABHAKAR
(Adjunct Professor)
M.P.BIRLA INSTITUTE OF MANAGEMENT
( Associate BHARATIYA VIDYA BHAVAN )
RACE COURSE ROAD, BANGALORE – 560 001
OCTOBER – 2004

2. DECLARATION
The research work embodied in the dissertation entitled „Customer
Value Management‟ at ICICI Prudential Life Insurance Company Ltd.,
is an original work carried out by me under the guidance and
supervision of Dr.K.V.Prabhakar, Adjunct Professor, M.P.Birla
Institute of Management, Bangalore (Internal Guide) and
Mr.Raghavendra Bhat, Unit Manager, ICICI Prudential Life Insurance
Company Ltd., Bangalore (External Guide) and has been submitted in
partial fulfillment of the requirements for the award of MBA degree of
Bangalore University.
The findings of this study are based on the data collected by me and
have not formed the basis for the award of any other Degree/Diploma of
any other University or Institution.
Place : Bangalore (Ms.Divya Ramesh)
Date : 13 September 2004

3. COMPANY CERTIFICATE
September 13, 2004
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Ms. Divya Ramesh, bearing register no. 02XQCM6019, a
student of M.P.Birla Institute of Management, Bangalore has succesfuly
completed the Project Work titled „Customer Value Management‟ at ICICI
Prudential Life Insurance Company Ltd., Bangalore as a partial fulfilment of
MBA program, during the months of May to August 2004.
We wish her all success in her future endeavors.
Mr.Raghavendra Bhat, Mr.Sivaram,
Unit Manager Sales Manager

4. CERTIFICATE
I hereby certify that the research work embodied in this dissertation entitled,
“Customer Value Management” at ICICI Prudential Life Insurance Company
Ltd., Bangalore has been undertaken and completed by Ms.Divya Ramesh,
bearing Register Number 02XQCM6019 under my guidance and supervision.
I also certify that she has fulfilled all the requirements under the covenant
governing the submission of dissertation to the Bangalore University for the
award of MBA Degree.
Place : Bangalore Dr.K.V.Prabhakar
Adjunct Professor
Date : 13 September 2004 (Internal Guide)

5. CERTIFICATE
This is to certify that this dissertation entitled, “Customer Value Management” at
ICICI Prudential Life Insurance Company Ltd., Bangalore is an offshoot of the
research work undertaken and completed by Ms.Divya Ramesh under the
guidance of Dr.K.V.Prabhakar, Adjunct Professor, MPBIM, Bangalore (Internal
Guide) and Mr.Raghavendra Bhat, Unit Manager, ICICI Prudential Life
Insurance Company Ltd., Bangalore (External Guide)
Place : Bangalore (Dr.N.S.Malavalli)
Date : 13 September 2004 Principal

6. ACKNOWLEDGEMENT
I express my immense gratitude to Dr.K.V.Prabhakar, Adjunct Professor,
M.P.Birla Institute of Management, Bangalore. He has been my mentor and guide
and his continuos encouragement and valuable suggestions helped me at every
stage of this project.
I am grateful to Principal, Directors and the staff of M.P.Birla Institute of
Management for their comments and encouragement at various phases of this project.
I thank Mr.Raghavendra Bhat, Unit Manager, ICICI Prudential Life Insurance
Company Ltd., Bangalore for giving me this opportunity to successfully complete
this project. His ideas, continuous support and comments have been quite useful
for the completion of this study.
I also thank Mr.Sivaram, Sales Manager at ICICI Prudential Life Insurance Company
Ltd., Bangalore for giving me permission to carry out this project in the Company.
I extend my gratitude to the staff of the Sales Department at ICICI Prudential
Life Insurance Company Ltd., Bangalore for their co-operation while carrying
out this project.
My grateful thanks are also due to Ms.Veena, Insurance Advisor with ICICI Prudential
Life Insurance Company Ltd., Bangalore and my parents for their incredible support.
Place : Bangalore
Date : 13 Sept. 2004 (Ms. DIVYA RAMESH)

7. CONTENTS
Sl. No. CHAPTERS Page No.
Executive Summary 1-2
PART „A‟ ± THEORITICAL SETTING
I Introduction
1. Conceptual Framework of CVM 3 ±4
2. Problem Statement 5
3. Need & Significance of the Study 6±7
4. Objectives of the Research 8
II Review of Literature
1. Purpose 9 ±14
2. Conclusion 15
3. Methodology 16
4. Benefits from the Literature Review 16
III Research Methodology 17 -18
1. Scope of the Study
2. Type of Research
3. Data Collection
4. Sampling Technique
5. Sample Size
6. Sample Description
7. Instrumentation Technique
8. Tools used for Hypotheses testing
9. Limitations of the Study
IV Company Profile 19 - 26

8. CONTENTS
Sl. No. CHAPTERS Page No.
PART „B‟ ± SURVEY FINDINGS
V Data Analysis & Interpretation
1. Statement of Hypotheses 27
2. Hypotheses Testing 28 ± 36
3. Inferences from the analysis 37 - 50
PART „C‟ ± CONCLUSION & RECOMMENDATIONS
VI Summary, Conclusion & A scheme of Recommendation
1. Major Research Findings 51 ± 52
2. A scheme of Recommendation 53 ± 54
3. Directions for further research 55
Annexure
1. Select Bibliography 56 - 57
2. Questionnaire 58 ± 61
3. Research instrument used 62
4. Data incidental to research
 IEPA Attribute Model 63 ± 65
 Product Comparison 66 ± 71
 Task assigned by the company - Survey 72 - 79

9. EXECUTIVE SUMMARY

10. EXECUTIVE SUMMARY
This project is done for ICICI Prudential Life Insurance Company Ltd. In
today‟s environment the customers have become sovereign authorities. They
constitute the focal point for any business. The effectiveness of Customer Value
Management helps a business enterprise to create and sustain differentiating
value, which has been focussed in this study.
Customer Value Management represents the best practices used today by
companies worldwide to attain their visions of finding out what customers want
and giving it to them. Customer Value Management provides a rational set of
technology; methods and strategies to weave needs and wants of customers into
key process designs and management activities of a company.
Customer Value Management is a vehicle to understand what the customers want
from the Company and how it can go about aligning its business to deliver the
same consistently. Every Company has perspectives about Finance, Customers,
Internal Business & Growth. Customer Value Management deals with the
„Customer Perspective‟ which along with the other perspectives are aligned with
the strategic intent and posture of the company.
The Customer Value Map will be designed to assess where the company‟s service
stands against competitors on the relative quality versus price matrix.
This Study is based on certain objectives and the research on Customer Value
Management has been developed based on these objectives. The objectives are as
follows :
 To identify the route to provide superior delivered value to customers 

 To unzip the direct link between customer value and the market share 

 To determine whether the „Customer Value Map‟ can assess the position of the
company‟s service against its competitors on the relative quality – price matrix 
1

11. The important findings of this study are :
₃ are brand name, wide varieties of policies to choose from and good servicing of
policies
✁ of options and good returns policy, multiple benefits packed in a single
range
policy, flexibility
within the same
The manifestations of value of ICICI Prudential in order of ranking are – maximum
✁ cover, profitable mode of investment, tax rebate, multiple benefits, pre-
risk
sales/during-sales/after-sales service and premium.
Some of the prominent recommendations are :
✁customers will find extra value in their policies
The settlement of policy amount should be expedited and never unduly delayed so
✁ the customer is not aggrieved. This will also help the company to avoid
that
migration of its customers
The value of ICICI Prudential can be enhanced by being customer centric, increasing
✁awareness about the company among customers, introduce new policies
according to changing needs of customers, to provide switching between
various options more than once a year, give guaranteed returns, handle
complaints effectively and provide value for money for the customers
Companies must be `customer creating' and `customer satisfying' organisations i.e.
✁they must do the things that induce customers to do business with them. We
recommend this strategy to ICICI Prudential.
The Company can use this information to reengineer their business capabilities
with a focus on customer envisioned value.
2

12. INTRODUCTION
1) Conceptual Framework of CVM
2) Problem Statement
3) Need and Significance of the study
4) Objectives of the research

13. CONCEPTUAL FRAMEWORK OF CVM
The concept of Customer Value Management was developed by Dr.John
Henderson of Boston University together with an IBM consultant to enable
management teams to get an actionable customer view and take actions resulting
in increased customer satisfaction, loyalty and market share.
Customer Value Management (CVM) represents the very best practices used by
companies worldwide to attain their visions of finding out what customers want
and giving it to them. It has become a leading approach to attract market share. It
is a means, by which a company can balance the demand for service and products
with an infrastructure that is customer centric, delivers increased productivity &
benefits the customer‟s product line.
Customer Value Management is a way to build customer loyalty and improve
value for the company. It provides a way to understand customers‟ values and
then leverage that knowledge to prevent customer dissatisfaction or to influence
buyer behavior. It creates an alignment between customer‟s dyn amic vision of
ideal value delivery and business capability to deliver that value. The company
should focus on specific capabilities and infrastructure to deliver value and also
reengineer business capabilities with a focus on customer envisioned value.
Customer Value Management is a very powerful tool to make the company truly
customer oriented, attain top of the line growth and bottom line results. It is a formal,
systematic approach to compete and grow, based on delivering customer value. CVM
is also fast emerging as the „Ruling Currency‟ to the growth of the company.
In implementing CVM, how a customer perceives the company and obtains value should
be identified and managed. If employed correctly it can help a business enterprise create
and sustain differentiating value. CVM helps a company in the following ways :
a) Develop and implement a business vision to become customer centered i.e. be
number one in the eyes of their customers
b) Implement strategy to differentiate and compete on service and value to
customers, not merely on products and price
c) Understand what drives customers‟ loyalty and give it to them 3

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