A Project Report

On

Marketing Mix on Kotak Mahindra

Submitted By,
Pavan Chaudhari 139
Priyanka Kadam 140

UNDER THE GUIDANCE OF

Prof. Mrs. Sonal MANCHANDA

UNIVERSITY OF MUMBAI

BACHELOR OF MANAGEMENT STUDIES

K.G.JOSHI BEDEKAR COLLEGE OF ARTS, AND COMMERCE

THANE (W)

ACADEMIC YEAR: 2010-2011

ACKNOWLEDGEMENT

"Gratitude is not a thing of expression; it is more matter of feeling."

To acknowledge, it would be a word too small for the help and guidance extended by
all the people involved in my project as my mentors.
There is always a sense of gratitude which one express towards others for their help and
supervision in achieving the goals. This formal piece of acknowledgement is an attempt
to express the feeling of gratitude towards people who helpful me in successfully
completing of my training.

My success at Kotak Mahindra Company Ltd. was because of the contribution and
guide provided to me by the Institute itself. My sincere acknowledgements are due to
them.
To begin with, I would first like to thank Mrs. Sonal Mulchandani for giving me the
opportunity to work with and get in depth knowledge about the Insurance Sector.

Last but not least I would like to thank to Nayan for giving their precious time and
relevant information and experience, I required, without which the Project would have
been incomplete.
Marketing Mix

Introduction

The basic task of marketing is the delivery of product(s) to consumers so that their
needs are fulfilled and organizational objectives are also achieved. This involves
several important decisions, e.g. deciding about the product or products which should
be offered for sale, price of the product, markets where products may sell and the
means of communication with the consumer for the sale of the product. All these
decisions form part of marketing-mix. The concept of marketing mix, its components
and the relationship among various components of marketing mix is important in
marketing.

What is marketing mix?

Most business school graduates are familiar with the term marketing mix. It refers to
the different tools a company uses to effectively promote its business in the
marketplace. These are often separated into what is known as the four P's of
marketing: product, price, placement and promotion.
Product refers to the actual, physical item that a company is trying to sell to the
consumer. Marketers usually do not focus on product development as much as product
presentation. Therefore, the marketing mix in this stage should consist of the name of
the product, its packaging and how it will be differentiated from similar products in
the store.
Price is how much the company will charge consumers for the product. Typically, a lot
of thought goes into pricing because setting a price too high can result in few sales.
There are also dangers in setting a price too low, since such a price may make
potential customers think the product lacks quality. Marketers use this knowledge to
help determine price so that profit is made from the product. The marketing mix may
also include special pricing incentives, like coupons.
Promotion is how the company spreads the word about a product. It involves working
with stores to distribute samples, holding public relations events, and buying
advertising — in the print media, the broadcast media or both. The role promotion
plays in the marketing mix depends on how much the company wants to publicize the
product and how much money it has set aside to do so. Today, the Internet is also a
market for product promotion, and online campaigns can be fairly inexpensive yet
effective.
Placement is the art of putting the product in the right place at the right time. Proper
placement is important, so that the consumer will see the product and want to have it.
This is part of the marketing mix because marketers must attract retailers and get
high-profile space in those stores, if they want their products to sell well. Placement
can also involve determining, and reaching, a specific target audience. For example, a
company that sells paint may set up a sales booth at a home improvement show in
order to reach people wishing to learn about and buy paint.

The marketing mix is unique to each product or company. It often depends on the
goals the organization would like to accomplish. This can range from selling as much
product as possible to cultivating a reputation for making high-quality products.

The marketing mix is probably the most famous marketing term. Its elements are the
basic, tactical components of a marketing plan. Also known as the Four P's, the
marketing mix elements are price, place, product, and promotion.

Concept and Characteristics of Marketing Mix

The process of marketing or distributions of goods require particular attention of
management of business because production has no relevance unless products are
sold. Marketing mix, simply stated, is the process of designing and integrating various
elements of marketing in such a way as to ensure the achievement of enterprise
objectives. The elements of marketing mix have been classified under four heads -
product, price, place and promotion. That is why marketing mix is said to be a
combination of 4 P’s. Decisions relating to the product include product designing,
packaging and labeling and varieties of the product. Decision on ‘Price’ is very
important because sales depend to a large extent on product pricing. Whether uniform
price will be charged or different prices will be charged for the same product in
different markets are examples of decision pertaining to the price of the product. The
third important element is ‘place’, which refers to decision regarding the market
where products will be offered for sale. ‘Promotion’ involves decisions bearing on the
ways and means of increasing sales. Different tools or methods may be adopted for
this purpose. The relative importance to be attached to the various methods is decided
while concentrating on the element of ‘promotion’ in marketing mix, Lastly, the
marketing manager has to take into account the impact of external factors like
consumer behavior, competitors’ strategy, and Government policy on each element of
marketing mix. In short, marketing mix involves decisions regarding products to the
made available, the price to be charged for the same, and the incentives to be provided
to the consumers in the markets where products would be made available for sale.
These decisions are taken keeping in view the influence of marketing forces outside
the organisation.
Characteristics of Marketing Mix

(i) Marketing-mix is the crux of marketing process: Marketing mix

involves many crucial decisions relating to each element of the mix.
The impact of the mix would be the best when proper weightage is
assigned to each element and they are integrated so that the combined
effect leads to the best results.

(ii) Marketing mix has to be reviewed constantly in order to meet

the changing requirements:

The marketing manager is required to constantly review the mix and conditions of the
market, and make necessary changes in the marketing mix according to changes in the
conditions and complexion of the market.

(iii) Changes in external environment necessitate alterations in the mix:

Changes keep on taking place in the external environment. For many industries,
customer is the most fluctuating variable of environment. Customers’ tastes and
preferences change very fast. Brand loyalty and purchasing power to change over a
period of time. The marketing manager has to carry out market analysis constantly to
make necessary changes in the marketing mix.

(iv) Changes taking place within the firm too necessitate changes in
marketing mix:

Changes within the firm may take place due to technological changes, or changes in the
product line, or changes in the size and scale of operation. Such changes call for
correspondent changes in the marketing mix. It fulfills the needs of the consumer as
well as the organisation.
Introduction of the Company
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak
Mahindra Bank Ltd., its affiliates and Old Mutual. A company that combines its
international strengths and local advantages to offer its customers a wide range of
innovative life insurance products, helping them in taking important financial
decisions at every stage in life and stay financially independent. The company is one of
the fastest growing insurance companies in India and has shown remarkable growth
since its inception in 2001. Kotak Life Insurance employs around 5,565 people in its
various businesses and has 197 branches across 141 cities.

Mission:

To focus on the needs of customers and create confidence, trust and loyalty by offering a
wide range of innovative insurance solutions.
Strengthened by commitment to professional management, they ensure the continued
growth and advancement of their employees.

Vision:

Kotak Life Insurance has a deep rooted commitment to improve the quality of life of its
customers, employees and stakeholders. They aim at improving the long term value in
their relationship by continuous innovation and improvements. They do this by their
three-prong effort which strives to make Kotak Life Insurance a corporate with values.

1. Increase Customer Value:

Kotak Life Insurance has gone to the heart of its customer’s requirements and
developed products which are unique and serve the customer needs perfectly.
We built a relationship of mutual trust and benefit to serve the Indian customer.
At Kotak Life Insurance the customer always comes first.

2. Cohesive Work Environment:

We form long-term partnership with our employees by offering them an
invigorating work experience. We not only demand loyalty, sincerity and values
but also give it back in equal measures. Kotak Life Insurance will like to offer its
employees space to grow, innovate and build a long-term career.
3. Work with Honor:
Kotak Life Insurance delivers everyday services in the marketplace with the
high sense of duty and commitment. Our employees strive to build the long-
term value for all those come in contact with Kotak Life Insurance. Our
consumers, distributors, employees, shareholders and the nation have our
commitment that we will uphold the values of trust, integrity and a Sense of
Honor in every thought, act and deed in order to positively contribute to
individual, society and nation growth.
History of Kotak Mahindra

1985

The company was incorporated on 21st November 1985 under the name
Kotak Capital Management Finance Ltd. The Company has been promoted
by Mr. Uday S Kotak, Mr. S.A.A Pinto and Kotak & Company. The company
obtained the certificate of commencement of business on 11th February
1986 and the Existing promoters were joined by Mr. Harish Mahindra
And Mr. Anand Mahindra. The company's name was changed on 8th April

1986

To its present name Kotak Mahindra Finance Ltd. The Company deals in Bill
discounting, leasing and hire purchase, corporate finance, management of fixed
deposit mobilization, financing against securities, money market operations, consumer
finance, investment banking and clients' money management.

1991

An application was made to SEBI for approval for setting up a Mutual Fund trust and
an asset management company. The newly set up Corporate Advisory Services Group
received several mandates for advice on mergers and acquisitions and re-structuring.
The Company's newly established Foreign Exchange Risk Management Service carters
to the vast potential demand for price risk management. The Company established
itself as a major leasing and hire-purchase company and as a source of finance for
purchasers of automobiles.

1993

The Company's newly set up Corporate Advisory Services Group received several
mandates for advice on mergers and acquisitions and re-structuring and some have
already been executed with success.

1994

The Company entered into a Memorandum of Understanding with KB Currency

Advisors Inc. USA to market their Foreign Exchange Fund Management programmers.
The Company has received the approval of Securities and Exchange Board of India
(SEBI) for setting up a Mutual Fund.
1995

The Company entered into a joint venture agreement with Ford Credit International
Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA. It was proposed to finance all
non Ford Passenger cars. Kotak Mahindra Capital Company became a subsidiary of the
Company.

1996

The Company's operations were affected by the liquidity crunch, scarcity of resources,
sluggishness in the capital markets and the overall deceleration of economic growth.
The Company has entered into a MOU with the Chubb Corporation, New Jersey, U.S.A.,
one of the largest American Insurance firms, to develop a Joint Venture dedicated to
the conduct of causality and property insurance business in India.

1998

Kotak Mahindra Asset Management Company Limited (KMAMCL) launched

its mutual fund schemes in December. The Company it would launch its mutual fund
with two schemes KGilt Unit Scheme and K30 Unit Scheme. Kotak Mahindra Finance is
a joint venture with Goldman Sachs.

1999

The `FAA' (pronounced `F double A') rating assigned to the fixed deposit program me
of Ford Credit Kotak Mahindra (FCKM) has been reaffirmed.

2000

Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation of the US have decided to
call off their joint venture for entering the general insurance business in India. KMFL
has set up a new asset reconstruction division to offer recovery management services
to players in the financial services industry. Mr. K.K. Sheth has resigned effective from
May 8. Kotak Securities an affiliate of Kotak Mahindra Finance Ltd. has launched
electronic broking services for retail investors. Kotak Mahindra Finance is in talks
with foreign insurers for a Joint venture in the life insurance business. The Company
proposes to make the necessary applications to the RBI and the Insurance Regulatory
and Development Authority for entering the life insurance business. OM Kotak
Mahindra Life Insurance Company, the recently formed joint venture company of
Kotak Mahindra Finance and Old Mutual Plc has filed its application for approval of life
insurance license on 1st September. Kotak Mahindra Finance Ltd has been assigned
Ind. AAA rating (indicating highest credit quality) for its Rs.510 million medium term
borrowing programmer.

2002
RBI has given in-principle approval to Kotak Mahindra Finance Ltd to convert itself
into a bank, thereby becoming the first ever non-banking finance company converted
into a bank. Mr. Uday Kotak says, there won't be any fresh capital infusion in the bank
in the near future.

KMFL informed BSE the FITCH ratings assigned:

Fixed Deposit Programme – Ind. AAA
Non-Convertible Debenture – Ind. AAA

Mr. Ajay Sondhi has been appointed as the Additional Director of

Kotak Mahindra Finance Ltd. Kotak Mahindra Finance Company has shortlisted i-flex
solutions 'Flexi cube' and 'Infosys','Finnacle' for its core banking solutions. CRISIL has
assigned ‘AAA (SO)' rating for Rs.83cr securitization Programme of Kotak Mahindra
Finance Ltd. Mr. Uday Kotak has been appointed as the Executive Vice Chairman and
Managing Director of the company. Business Standard and Business Standard digital
have ceased to be the subsidiaries of Kotak Mahindra Finance Ltd. Mr. C Jayaram and
Mr. Deepak Gupta are appointed as whole time Directors on the Board of Kotak
Mahindra Finance Ltd.

2003

RBI has granted license to Kotak Mahindra Finance Ltd to embark on its banking
business. O & M has got the creative account of Kotak Mahindra Bank, and has said to
be working professionally. Kotak Mahindra Bank has received a lot of interest from
portfolio investors, private equity investors and potential strategic investors. Kotak
Mahindra Bank has entered into an ATM sharing agreement with UTI Bank, which
would allow KMB's customer free access to around 800 ATM's. Kotak Mahindra Bank
has started its operations in New Delhi by inaugurating a branch Cannaught place
office. Dr.Shankar Acharya has been appointed as the Additional Director to the board
of the bank. The Board of Kotak Mahindra Bank Ltd accepts the resignation of Mr. S.A.A
Pinto and Mr. M.R Punja as the Directors of the Bank. Kotak Mahindra Investment Co
Ltd. PCC a subsidiary of Kotak Mahindra Capital Company has constituted itself from a
private company to a public limited co. And has changed its name to 'Global
Investment Opportunities Fund Ltd'. Kotak Mahindra Bank launches online remittance
services called, FUNDS to HOME for Non-resident Indians.

2004

Kotak Mahindra Bank Limited has informed that the Bank's equity shares will be
delisted from The Stock Exchange, Ahmadabad with effect from
January 20, 2004. Kotak Mahindra Bank sets up branch in Surat Kotak Mahindra
Mutual Fund has launched Kotak Opportunities, an open-ended equity growth scheme
Kotak Mahindra Bank inks pact with Reuters

2006

Kotak Mahindra joins hand HDFC Bank to share ATMs. Kotak Mahindra to buy out
Goldman Sachs' stake in JVs Kotak Mahindra Bank sets up branch in Valsad. Kotak
Mahindra subsidiary acquires Ford Credit's auto portfolio

2007

Kotak Mahindra Bank Launches Home Banking, Improves Banking Experience. Kotak
Mahindra Bank Launches Salary 2 Wealth. Kotak Mahindra Bank Launches Kotak Gold
Debit Card. Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of IT
Returns

2008

Kotak Mahindra Bank launched credit cards for its customers.

2009

Kotak entered into tie up with Russia's top investment bank. Kotak Mahindra Bank
Wins IT Team of the Year for 3rd Consecutive Time at the Banking Technology Awards
2008
1. Products and Services:

Individual Plans:
Protection Plans:

Kotak Loan protection Plan

Kotak Term / Preferred Term Plan
Kotak Eternal Life Plans
Savings and Investment Plans:

Kotak Super Advantage

Kotak Platinum Edge
Kotak Endowment Plan
Kotak Money Back Plan

Child Plans:

Kotak Headstart Child Plans

Kotak Child Advantage Plan

Retirement Plans:

Kotak Long Life Wealth Plus

Kotak Long Life Secure Plus
Kotak Retirement Income Plan
Kotak Second Innings Plan

Group Plans:

Kotak Group Shield

Kotak Group Assure
Kotak Gratuity Group Plan
Kotak Superannuation Group Plan
Kotak Term Group Plan

Rural:

Kotak Gramin Bima Yojana

2. Price:
Pricing is an important element in the service sector. So Kotak Life Insurance has
maintained a good pricing mix for child plan:

The disposable income in the hands of the prospects is found low or almost nil so
Kotak has adopted his strategy that is beneficial to the end user and also paves the
ways for increasing the insurance business.

The price mix decisions basically depend upon the premium that they are going to
charge from the end users. As in this case the premium charged will be low in the
initial stages and will increase with the increasing age of the child. But in case if the
child is physically disabled the premium charged will be high. The customers can even
avail for loan facility if they opt for higher premium plan. Kotak life gives more
importance to pricing strategy because they feel that it is the only means for attracting
the customers in true sense.

3. Place:

Kotak Life has adopted the place strategy in such a way that a gap between the
services promised and services offered is bridged over. Kotak agents, brokers, branch
office, retail finance service distributors’ alliances with banks etc. play an important
role in delivering their services to policy holders at the right time and at right place.
This product is promoted in places like school, colleges and other child zone areas.
This product is highly flexible as it is present for children in urban well as rural areas
and thereby it facilitates mobility.

4. Promotion:
Advertisements

This product has been advertised through telecast media broadcast media and print
media. Since this product is for children up to 17 years of age the focus of
advertisement is on television which is more appealing. Kotak has recognized the need
for this plan and therefore has adopted suitable marketing strategy which involves
advertisements in popular kids channel like pogo, hungama, star plus etc.

Publicity
The PROs of Kotak Mahindra life insurance has publicized this product taking into
consideration the eligibility and features and has thereby come with an appealing
strategy emphasizing not only on children who are main benefit holders of this
product but also the family who will actually pay the premium for this product. the
PROS of Kotak life have developed a good rapport with hungama to publish   it can be
seen from the banner of this plan that  the happiness is shown on parents face  as soon
as they secure their child’s future  which is the prime motive of this plan. This plan
gives your child the “azaadi” to realize his dreams even before he is an adult.

Sales promotion

The promotion activities are carried out by the agents, development officers and
branch officers. Kotak life has promoted this plan by giving calendars dairies bags
which they thought should be given as a token of gift along with the plan. Kotak life
also conducts, seminars quiz, other contest, games in various malls and play schools.
All such activities have increased the volume of sailed and has also created a medium
of awareness for the children.

Personal selling

As we know that customer is the king, Kotak gives utmost importance to personal
selling of this product. Moreover, Kotak Life conducts special training session for its
agents who will finally approach the end customers so that they can demonstrate
effectively which will enable the end users i.e. children have to buy the product.

5. People:

People are most important component of marketing mix for the insurance industry.
Sophisticated process of technological advances makes the way for the development of
personnel in such a way that an organization succeeds in making possible a productive
utilization of technologies used or likely to be used. Professional qualification
requirements change as technology develops and evolves. The use of computers
micro-computers, fax machines, sophisticated telephonic services, and e-mailing, inter-
net and intra-net services have been found throwing a big impact on the perception of
quality of services. This makes it essential that the insurance organizations also think
in favor of developing personnel in line with the development and use of information
technologies. The front line staffs as well as the branch managers are required to be
given the training facility so that they are in position to make possible and effective use
of the technologies. The insurance organization   bear the responsibility of the
developing the credentials of their employees. In this context, it is also significant that
they think about the behavior profile of insurance personnel. It is pertinent that the
employees are well aware of the behavioral management they know and understand
the changing level of expectations of users and make sincere efforts to fulfill the same.
In this context, it is also significant that the senior executive while the recruiting,
training and developing the insurance personnel make it sure that employees serving
the organizations have  a high behavioral profile in which empathy  has been given due
place. The psychological attributes becomes significant with the view point of
influencing the prospect a retaining the users, it is in this context that the insurance
companies need a rational plan for the development of insurance personnel. Kotak Life
provides training to its employees for making them competitive in the insurance
market.

6. Process:

In the current scenario, policyholders just log on to website and call insurance
advisors to their home or office. These insurance advisors make customers aware
about the new and advantageous product for them. Along with it also helps customers
to ask any query related to any insurance products. So the process of taking life
insurance is very convenient. It is due to private players entering into the market. But
still the simplest model of life insurance takes place mostly. It is as follows:

 The client approaches the insurer through an agent with a proposal containing
his personal details, income details, medical history, products (the product
describes the features provided by the insurer like maturity bonus, claims
allowed etc. These features vary from product to product), sum assured (the
amount for which the client is covered), term (number of years for which the
client is to be covered) and premium amount (installment amount to be paid by
the client to the insurer). The agent who brings this proposal is termed as a
base/servicing agent for the proposal.

 The proposal will go through various stages of approval and risk evaluation by
the “Central Processing Centre” of the Insurance Company. Upon final approval,
a legal agreement, termed as policy, between the insurer and the client is
prepared whereby the insurer covers the client for the sum assured. The client
is also entitled for some additional benefits, if any, depending on the features of
the product taken in the policy. The base agent gets a commission for the policy.

 The client pays a premium at regular intervals. These subsequent premiums are
termed as renewal premiums. The base agent gets a commission on the renewal
premium also.
  The client may come back with some alterations to the policy viz.
increase/decrease in sum assured, increase/decrease of the term of policy etc.
The insurer will make the relevant changes to the policy and will issue
endorsements stating the alterations made and their effect on the policy.

 During the term of the policy, the client can submit claims. The insurer makes
payment against the claim after verification. Depending on the type of claim the
policy is either terminated or is kept in force.

 At the end of the term of the policy, the client gets the sum assured as part of the
maturity benefit under life insurance policies. In addition to this the client will
get the maturity bonus and any other benefits depending on the product
feature.

7. Physical Evidence:

Physical evidence includes facility design, equipment signage, employee dress,

tangibles, reports and statements.

Signage

Signage personifies the insurance company. It gives an identity by which users

recognize the company. A signage depicts the company’s philosophy and policy.
Following are some of the examples

Tangibles

Insurance companies give their customers and agents various tangible items like pen,
letter pad, calendars. Such things try to reduce the intangibility characteristics of this
industry.

Statements

The statements are punch line which briefly depicts the vision and attitude of an
insurance company towards its users/potentials. It also indicates their business
motive.
Conclusion
Kotak Mahindra Bank is Leading Bank in the country, it provides a variety of products
and services to different segments of customers. The Bank aims to serve customers
from teenagers to senior citizens, hence different products designed to suit specific
requirements of the above. Aims to serve all classes of the society from the salaried
middle class to the high income business class. Customers are categorized and
segmented according to their requirements and needs. For Example, the EDGE
Saving Account aims to serve middle class customers so minimum balance required to
be maintained is Rs. 10000. While the PRO and ACE Saving Accounts are targeted at
high income customers, the minimum balance requirement is Rs. 20000 and Rs.
75000. Customers who are more profitable to the Bank (High Value Customers) are
provided special facilities. Priority Banking is meant to serve these high value
customers. The Bank prides itself with the ability to provide differentiate products in
the crowded market of saving accounts. Bank offers the free home baking, special co-
branded debit cards (Smart fill Debit\ Card) which makes its product unique. The
Bank is also involved in marketing activities which serves as a medium of
advertisement for the Bank. These are as follows:
 Extended happy hours at certain pubs in Delhi for the Bank’s account holders.
 Gift Vouchers on making utility payments, such as cell phones, electricity and
MTNL bills.
 Free Gifts like caps, pens/wallets to its customers
 Free add-on cards for relatives.
The Bank wants its customers to transact more through Internet Banking and ATM,
Rather than the customers using the branch. The Debit Cards provided by the Bank
are Internationally Accepted around the world, hence giving the customers the
convenience to transact anytime, anywhere. The Bank has tied up with other Banks so
that its customers can use other Bank’s ATM facility for free transactions. The Bank
also provides DEMAT account and also sells Mutual Funds, this provides the Bank and
Government additional revenue. The Bank has been very successful in enlarging its
customer base during the last couple of years. The Number One Reason of people
choosing Kotak Mahindra Bank is the Brand Name/Reputation of the Bank. Hence it
should be careful that the Brand name and Goodwill the Bank has earned is not
diluted. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank and
STANDRAD CHARTERED. ATM Facility is most popular way to transact with the Bank.
Overall the customers appreciate the service and products offered by the Bank and
are willing to recommend the Bank to their acquaintances, but more attention has to
pay towards: Increasing the number of ATM machines. Improving Internet Banking
Facility.
Bibliography

www.google.com

www.dell.com

www.indianlibrary.com

www.dogpile.com