A PROJECT REPORT ON

A STUDY OF STRATEGY AND FUNCTIONING OF

FIELD FORCES IN

Submitted By:
RANJITA PATTNAYAK
ROLL. NO.- 19MBA-064
EXAM ROLL.NO-3219B064
BATCH: 2019-21

UNDER THE GUIDANCE OF :

MRS. AHUTI MOHANTY

BHADRAK AUTO. COLLEGE, BHADRAK

SESSION-2019-21

1
 CERTIFICATE
This is to certify that the project work entitled “ A STUDY OF
STRATEGY AND FUNCTIONING OF FIELD FORCES IN BAJAJ
ALLIANZ” is a piece of work done by RANJITA PATTNAYAK
(ROLL.NO-19MBA064),student of Bhadrak Auto college, Bhadrak
,under my guidance and supervision for the partial fulfillment of the
course ‘MASTER OF BUSINESS ADMINISTRATION ’under FM
UNIVERSITY.

To the best of my knowledge and belief the thesis embodies the

work of the candidate herself and has been duly completed.
Simultaneously,the project fulfills the requirements of the rules and
regulations related to the institute and I am assured that the project is up
to the standard both in respect to the content and language for being
referred to the examiner.

Mrs.Ahuti Mohanty

Faculty Guide

2
 DECLARATION

I, RANJITA PATTNAYAK,ROLL NO-19MBA064 hereby declare that,the

project entitled “ A STUDY OF STRATEGY AND FUNCTIONING OF FIELD

FORCES IN BAJAJ ALLIANZ” is submitted by me to bajaj allianz,based on

a research study conducted and presented towards the partial

fulfillment for the Award of the degree - “MASTER OF BUSINESS

ADMINISTRATION” .The report is based on my own work experience .

place:

Date: Signature

3
 ACKNOWLEDGMENT
It is impossible to thank the people who have helped me prepare my project,
but I would like to take the opportunity to express my profound gratitude and
indebtedness to the following.
I am expressing my deep gratitude to ‘Bajaj Allianz’ for giving me an
opportunity to do a project on ‘A STUDY OF STRATEGY AND
FUNCTIONING OF FIELD FORCES IN BAJAJ ALLIANZ’ and study
under them.

I would like to thank Mr. Gajendra Prasad Sahoo (Branch Manager-,

Bajaj Allianz in Bhadrak) for assisting & guiding me throughout the training
programme.

I am also extremely grateful to my project guide Mrs.Ahuti Mohanty

(Marketing,) for assisting and guiding me throughout the project. I am very
grateful to Bhadrak Auto college for providing me the opportunity of taking
up such a practical project which gave me a firsthand useful experience.

Last but not the least; I also like to thank all the respondents &
friends and dealers/distributors, customers for giving me their precious
time, relevant information and experience, without which the project would
have been a different story.

Ranjita pattnayak

4
5
INTRODUCTION

A marketing strategy is a process that can allow an organization to concentrate

its (always limited) resources on the greatest opportunities to increase sales
and achieve a sustainable comp

etitive advantage.

Marketing strategy as a key part of the general corporate strategy marketing

strategy is most effective when it is an integral component of corporate
strategy, defining how the organization will engage customers, prospects
and competitors in the market arena for success. It is partially derived from
broader corporate strategies, corporate missions, and corporate goals.
They should flow from the firm's mission statement. A range of micro
environmental factors also influences them.

Marketing strategy and sectarian tactics and actions a marketing strategy also
serves as the foundation of a marketing plan. A marketing plan contains a
set of specific actions required to successfully implement a marketing
strategy. For example: "Use a low cost product to attract consumers. Once
our organization, via our low cost product, has established a relationship
with consumers, our organization will sell additional, higher-margin
products and services that enhance the consumer's interaction with the
low-cost product or service."

A strategy consists of well thought out series of tactics. While it is possible

to write a tactical marketing plan without a sound, well-considered strategy,
it is not recommended. Without a sound marketing strategy, a marketing plan
has no foundation. Marketing strategies serve as the fundamental
underpinning of marketing plans designed to fill market needs and reach

6
marketing objectives. It is important that these objectives have measurable
results.

A good marketing strategy should integrate an organization's marketing

goals, policies, and action sequences (tactics) into a cohesive whole. Many
companies cascade a strategy throughout an organization, by creating
strategy tactics that then become strategy goals for the next level or group.
Each group is expected to take that strategy goal and develop a set of tactics
to achieve that goal. This is why it is important to make each strategy goal
measurable.

Marketing strategies are dynamic and interactive. They are partially planned
and partially unplanned. See strategy dynamics.

Types of marketing strategies Every marketing strategy is unique, but if

we abstract from the individualizing details, each can be reduced into a
generic marketing strategy. There are a number of ways of categorizing
these generic strategies. A brief description of the most common categorizing
schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified

based on their market share or dominance of an industry. Typically there are
three types of market dominance strategies:

• Leader

• Challenger

• Follower

7
Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firm’s sustainable competitive advantage.

• Cost leadership

• Product differentiation

• Market segmentation

Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is
on the cutting edge of technology and business innovation. There are three
types:

• Pioneers

• Close followers

• Late followers
Growth strategies - In this scheme we ask the question, “How should the firm
grow?” There are a number of different ways of answering that
question, but the most common gives four answers:

• Horizontal integration

• Vertical integration

• Diversification

• Intensification

A more detailed scheme uses the categories:

• Prospector
• Analyzer
• Defender
• Reactor

8
INSURANCE NEED
Why is insurance necessary? The question contains the answer within itself.
After all, life is fraught with tensions and apprehensions regarding the future
and what it holds for the individual. Despite all the planning and preparation
one might make, no one can accurately guarantee or predict how or when
death might result and the circumstances that might ensue in its aftermath.
We are not saying that life and existence are constantly fraught with danger
and uncertainty. But then it is essential that you plan for the future. The
chances for a fatality or an injury to occur to the average individual may not
be particularly high but then no one can really afford to completely disregard
his or her future and what it holds.

People generally regard insurance as a scheme when and where you have to
lose a lot to gain a little. Nevertheless, insurance is still the most reliable tool
an individual can use to plan for his future.

And just why is it necessary to plan for the future with Insurance?

An Overview

Insurance business is divided into four classes:

1) Life Insurance business

2) Fire

3) Marine

4) Miscellaneous Insurance.
Life Insurers transact life insurance business; the rest is transacted by
General Insurers. No composites are permitted as per law.
The business of Insurance essentially means defraying risks attached to any
activity over time (including life) and sharing the risks between various

9
entities, both persons and organizations. Insurance companies (ICs)
are important players in financial markets as they collect and invest
large amounts of premium. Insurance products are multipurpose and offer
the following benefits:

1. PROTECTION TO THE INVESTORS

2. ACCUMULATE SAVINGS
3. CHANNELISE SAVINGS INTO SECTORS NEEDING HUGE LONG TERM
INVESTMENTS.
ICS RECEIVE, WITHOUT MUCH DEFAULT, A STEADY CASH STREAM
OF PREMIUM OR CONTRIBUTIONS TO PENSION PLANS. VARIOUS
ACTUARY STUDIES AND MODELS ENABLE THEM TO PREDICT,
RELATIVELY ACCURATELY, THEY’RE EXPECTED CASH OUTFLOWS.
LIABILITIES OF ICS BEING LONG-TERM OR CONTINGENT IN NATURE,
LIQUIDITY IS EXCELLENT AND THEIR INVESTMENTS ARE ALSO
LONG-TERM IN NATURE. SINCE THEY OFFER MORE THAN THE
RETURN ON SAVINGS IN THE SHAPE OF LIFE-COVER TO THE
INVESTORS, THE RATE OF RETURN GUARANTEED IN THEIR
INSURANCE POLICIES IS RELATIVELY LOW. CONSEQUENTLY, THE
NEED TO SEEK HIGH RATES OF RETURNS ON THEIR INVESTMENTS IS
ALSO LOW. THE RISK-RETURN TRADE OFF IS HEAVILY TILTED IN
FAVOR OF RISK. AS A COMBINED RESULT OF ALL THIS,
INVESTMENTS OF INSURANCE COMPANIES HAVE BEEN LARGELY IN
BONDS FLOATED BY GOI, PSUS, STATE GOVERNMENTS, LOCAL
BODIES, CORPORATE BODIES AND MORTGAGES OF LONG TERM
NATURE. THE LAST PLACE WHERE INSURANCE COMPANIES ARE
EXPECTED TO BE OVER-ACTIVE IS BOURSES. LATELY ICS HAVE
VENTURED INTO PENSION SCHEMES AND MUTUAL FUNDS ALSO.
HOWEVER, LIFE INSURANCE CONSTITUTES THE MAJOR SHARE OF

10
INSURANCE BUSINESS. LIFE INSURANCE DEPENDS UPON THE LAWS
OF MORTALITY AND THERE LIES THE DIFFERENCE BETWEEN LIFE
AND GENERAL INSURANCE BUSINESSES. LIFE HAS TO EXTINGUISH
SOONER OR LATER AND THE CLAIM IN RESPECT OF LIFE IS CERTAIN.
IN CASE OF GENERAL INSURANCE, HOWEVER, THERE MAY NEVER BE
A CLAIM AND THE AMOUNT CAN NEVER BE ASCERTAINED IN
ADVANCE. HENCE, LIFE INSURANCE INCLUDES, BESIDES COVERING
THE RISK OF EARLY HAPPENING OF AN EVENT, AN ELEMENT OF
SAVINGS ALSO FOR THE BENEFICIARIES. PENSION BUSINESS ALSO
DERIVES FROM LIFE INSURANCE IN AS MUCH AS THE PENSION
OUTGO AGAIN DEPENDS UPON THE LAWS OF MORTALITY. THE
FORAYS MADE BY INSURANCE COMPANIES IN THIS AREA ARE,
THEREFORE, NATURAL COROLLARY OF THEIR BUSINESS.

11
INSURANCE IN INDIA

Insurance in India started without any regulations in the nineteenth century.

It was a typical story of a colonial era: a few British insurance companies
dominating the market serving mostly large urban centers. After the
independence, the Life Insurance Company was nationalized in 1956, and
then the general insurance business was nationalized in 1972. Only in 1999
private insurance companies were allowed back into the business of
insurance with a maximum of 26 per cent of foreign holding (World Bank
Economic Review 2000). The entry of the State Bank of India with its
proposal of bank assurance brings a new dynamics in the game. On July 14,
2000 Insurance Regulatory and Development Authority bill was passed to
protect the interest of the policyholders from private and foreign players.
The following companies are entitled to do insurance business in India.

The private insurance joint ventures have collected the premium of

Rs.1019.09 crore with the investment of just Rs.3, 000 crore in three years
of liberalization. The private insurance players have significantly improving
their market share when compared to 50 years Old Corporation (i.e.LIC). As
per the figures compiled by IRDA, the Life Insurance Industry recorded a
total premium underwritten of Rs. 10,707.96 crore for the period under
review. Of this, private players contributed to Rs.1, 019.09 crore, accounting
for 10 percent. Life Insurance Corporation of India (LIC), the public sector
giant, continued to lead with a premium collection of Rs.9,688.87 crore,
translating into a market share of 90 per cent. In terms of number of policies
and schemes sold, private sector accounted for only 3.77per cent as
compared to 96.23 per cent share of LIC (The Economic Times, 21 March,
2004).

12
The ICICI Prudential topped among the private players in terms of premium
collection. It recorded a premium of Rs. 364.9 crore and a market share of
25 per cent, followed by Birla Sun Life with a premium under- written
Rs.170 crore and a market share of 15 percent, HDFC Standard with 132.7
crore and Max New York Life with Rs.76.8 crore with a market share of
approximately 15 per cent each. Unlike their counterpart in the life insurance
business, private non-life insurance companies have not yet started
addressing the retail market. All is set to change in the coming years. Like in
the banking sector, non-life insurance companies will soon have no choice
but to focus on individual buyers.

In case of private non-life insurance players, that their market share rose to
14.13 per cent, recording a growth of 70.75 per cent on an annual basis,
while the market share of public sector stood at 85.87 per cent, registering a
marginal growth of 6.34 per cent. The overall market has recorded a growth
of 12.32 per cent by the end of January 2004. Among the private non-life
insurance players, ICICI Lombard topped the list with a premium collection
of Rs.403.62 crore in one year period with a market share of 3.05 per cent
and with an annual 131.6 per cent, followed by Bajaj Allianz with a
premium of Rs.385.02 crore and 2.91 per cent market share and Tata AIG
with 300.49 crore premium and 2.27 per cent market share with an annual
growth rate of 62.60 per cent.

Among the public sector players, New India garnered a market share of

24.38 per cent, Rs.3, 229.49 crore premium and an annual growth rate of
0.38 per cent, followed by National with a market share of 21.43 per cent,
Rs.2,839.11 crore premium and an annual growth rate of 19.88 per cent,
United India with a market share of 19.47 per cent (Rs.2,578.83 crore

13
premium) and Oriental with a market share of 18.25 per cent, Rs.2,417.17
crore premium and an annual growth rate of 1.86 per cent. It is significant to
note that HDFC Chubb and Cholamandalam have registered annual growth
rates of 4030.26 per cent and 1101.20 per cent respectively, whereas New
India has registered it as 0.38 per cent. If this trend continues, private insurer
would dominate the public sector like New India Insurance Corporation. It is
obviously reflect the insurance sector has facing the challenges with foreign
counter parties as well as private counter parties and lot more opportunities
are prevailing to penetrate the insurance business among the uncovered
people and area of India. Further, it leads to economic development of the
country. In this regard, it assumes greater significance to conduct debate
among the inter- disciplinary persons.

BRIEF HISTORY OF INSURANCE SECTOR IN INDIA

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.

Tracing the developments in the Indian insurance sector reveals the 360-
degree turn witnessed over a period of almost 190 years.

The business of life insurance in India in its existing form started in India in
the year 1818 with the establishment of the Oriental Life Insurance
Company in Calcutta.

Some of the important milestones in the life insurance business in India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.

14
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 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.

The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India

are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.

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.

1968 - The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

15
1972 - The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from 1st
January 1973.

107 insurers amalgamated and grouped into four company’s viz. the
National Insurance Company Ltd., the New India Assurance Company Ltd.,
the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.

16
INSURANCE MARKET IN INDIA

NON-LIFE INSURANCE MARKET

In December 2000, the GIC subsidiaries were restructured as independent
insurance companies. At the same time, GIC was converted into a national
re-insurer. In July 2002, Parliamant passed a bill, delinking the four
subsidiaries from GIC.

Presently there are 12 general insurance companies with 4 public sector

companies and 8 private insurers. Although the public sector companies still
dominate the general insurance business, the private players are slowly
gaining a foothold. According to estimates, private insurance companies
have a 10 percent share of the market, up from 4 percent in 2001. In the first
half of 2002, the private companies booked premiums worth Rs 6.34 billion.
Most of the new entrants reported losses in the first year of their operation in
2001.

With a large capital outlay and long gestation periods, infrastructure projects
are fraught with a multitude of risks throughout the development,
construction and operation stages. These include risks associated with
project implementation, including geological risks, maintenance,
commercial and political risks. Without covering these risks the financial
institutions are not willing to commit funds to the sector, especially because
the financing of most private projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects,

they also contribute long-term funds. In fact, insurance companies are an
ideal source of long term debt and equity for infrastructure projects. With
long term liability, they get a good asset- liability match by investing their
funds in such projects. IRDA regulations require insurance companies to

17
invest not less than 15 percent of their funds in infrastructure and social
sectors. International Insurance companies also invest their funds in such
projects.

Insurance costs constitute roughly around 1.2- 2 percent of the total project
costs. Under the existing norms, insurance premium payments are treated as
part of the fixed costs. Consequently they are treated as pass-through costs for
tariff calculations.

Premium rates of most general insurance policies come under the purview of
the government appointed Tariff Advisory Committee. For Projects costing up
to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for
Projects between Rs 1 billion and Rs 15 billion, the rates are set in
keeping with the committee's guidelines; and projects above Rs 15 billion are
subjected to re-insurance pricing. It is the last segment that has a number of
additional products and competitive pricing.

Insurance, like project finance, is extended by a consortium. Normally one

insurer takes the lead, shouldering about 40-50 per cent of the risk and
receiving a proportionate percentage of the premium. The other companies
share the remaining risk and premium. The policies are renewed usually on an
annual basis through the invitation of bids.

Of late, with IPP projects fizzling out, the insurance companies are turning
once again to old hands such as NTPC, NHPC and BSES for business.

18
RE-INSURANCE BUSINESS
Insurance companies retain only a part of the risk (less than 10 per cent)
assumed by them, which can be safely borne from their own funds. The
balance risk is re-insured with other insurers. In effect, therefore, re-
insurance is insurer's insurance. It forms the backbone of the insurance
business. It helps to provide a better spread of risk in the international
market, allows primary insurers to accept risks beyond their capacity, settle
accumulated losses arising from catastrophic events and still maintain their
financial stability.

While GIC's subsidiaries look after general insurance, GIC itself has been
the major reinsurer. Currently, all insurance companies have to give 20 per
cent of their reinsurance business to GIC. The aim is to ensure that GIC's
role as the national reinsurer remains unhindered. However, GIC reinsures
the amount further with international companies such as Swiss
(Switzerland), Munichre (Germany), and Royale (UK). Reinsurance
premiums have seen an exorbitant increase in recent years, following the rise
in threat perceptions globally.

LIFE INSURANCE MARKET

The Life Insurance market in India is an underdeveloped market that was
only tapped by the state owned LIC till the entry of private insurers. The
penetration of life insurance products was 19 percent of the total 400 million
of the insurable population. The state owned LIC sold insurance as a tax
instrument, not as a product giving protection. Most customers were under-
insured with no flexibility or transparency in the products. With the entry of
the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed
nearly 9 percent of the market in terms of premium income. The new

19
business premiums of the 12 private players have tripled to Rs 1000 crore in
2002- 03 over last year. Meanwhile, state owned LIC's new premium
business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the

triple whammy combination that has enabled fledgling private insurance
companies to sign up Indian customers faster than anyone ever expected.
Indians, who have always seen life insurance as a tax saving device, are now
suddenly turning to the private sector and snapping up the new innovative
products on offer.

The growing popularity of the private insurers shows in other ways. They
are coining money in new niches that they have introduced. The state owned
companies still dominate segments like endowments and money back
policies. But in the annuity or pension products business, the private insurers
have already wrested over 33 percent of the market. And in the popular unit-
linked insurance schemes they have a virtual monopoly, with over 90
percent of the customers.

The private insurers also seem to be scoring big in other ways- they are
persuading people to take out bigger policies. For instance, the average size of
a life insurance policy before privatizations was around Rs 50,000. That has
risen to about Rs 80,000. But the private insurers are ahead in this game and
the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh-
way bigger than the industry average.

Buoyed by their quicker than expected success, nearly all private insurers are
fast- forwarding the second phase of their expansion plans. No doubt the
aggressive stance of private insurers is already paying rich dividends. But a
rejuvenated LIC is also trying to fight back to woo new customers.

20
21
PREMIUM STRUCTURE OF ENDOWMENT PLANS
(Rs. /YEAR)

22
MINIMUM REQUIRED COMPOUND BONUS RATE (IN %)

WHOLE LIFE INSURANCE PREMIUMS (RS. / YEAR)

23
EQUITY SHARE CAPITAL OF LIFE INSURANCE COMPANIES

Foreign Indian
Name of the insurer 2006-07 2007-08 Promoter Promoter

Life Insurers
HDFC Standard Life Insurance Co. Ltd. 255.50 320.00 47.52 272.48
ICICI-Prudential Life Insurance Co. Ltd. 675.00 925.00 240.50 684.50
Max New York Life Insurance Co. Ltd. 346.08 466.08 121.18 344.90
Kotak Mahindra Old Mutual Life Insurance 151.26 211.76 55.06 26.00
Co. Ltd.
Birla Sun Life Insurance Co. Ltd. 290.00 350.00 91.00 26.00
TATA-AIG Life Insurance Co. Ltd. 231.00 321.00 83.46 237.54
SBI Life Insurance Co. Ltd. 175.00 350.00 91.00 259.00
ING Vysya Life Insurance Co. Ltd. 245.00 325.00 84.50 26.00
MetLife India Insurance Co. Ltd. 160.00 235.00 61.10 173.90
Bajaj Allianz Life Insurance Co. Ltd. 150.07 150.07 39.02 111.05
AMP Sanmar 160.00 217.10 56.45 160.65
AVIVA 242.80 319.80 83.15 236.65
Sahara India 157.00 157.00 0.00 157.00
Sub Total 3238.71 4347.81 1053.93 3293.88
Life Insurance Corporation of India 5.00 5.00 5.00
Total (Life) 3243.71 4352.81 1053.93 3298.88

24
INVESTMENTS OF LIFE INSURERS IN LIFE FUND

(Rs. In Crore)
2008 2007

PUBLIC SECTOR

LIC (A) 361428.87 304436.88

PRIVATE SECTOR

HDFC STD LIFE 480.77 305.43

MNYL 436.37 241.85
ICICIPRU 970.63 658.45
BSLI 170.06 140.38
TATA AIG 392.76 220.65
KOTAK LIFE 200.67 133.43
SBI LIFE 960.89 367.84
BAJAJ ALLIANZ 382.28 221.91
METLIFE 157.18 120.18
AMP SANMAR 110.71 98.69
ING VYSYA 241.22 75.28
AVIVA 144.95 144.65
SAHARA LIFE 142.48 143.29
TOTAL (B) 4790.98 2872.03
TOTAL (A+B) 366219.85 307308.91

25
INVESTMENTS OF LIFE INSURERS IN PENSIONS FUNDS

(Rs. In Crore)

2008 2007

PUBLIC SECTOR

LIC (A) 11462.03 9244.06

PRIVATE SECTOR

HDFC STD LIFE 151.91 101.68

MNYL 14.03 2.11
ICICIPRU 166.64 127.59
BSLI 0.06 0.00
TATA AIG 76.78 39.79
KOTAK LIFE 13.36 7.54
SBI LIFE 78.97 15.41
BAJAJ ALLIANZ 9.28 3.81
METLIFE 0.21 0.00
AMP SANMAR 50.45 9.83
ING VYSYA 0.00 0.00
AVIVA 0.00 0.00
SAHARA LIFE 0.06 0.00
TOTAL (B) 561.75 307.77
TOTAL (A+B) 12033.78 9551.83

26
INVESTMENTS OF LIFE INSURERS IN GROUP INSURANCE

(Rs. In Crore)

2008 2007

PUBLIC SECTOR

LIC (A) 42639.42 34068.32

PRIVATE SECTOR

HDFC STD LIFE 0.00 0.00

MNYL 7.25 1.35
ICICIPRU 0.00 0.00
BSLI 0.00 0.00
TATA AIG 14.70 0.00
KOTAK LIFE 2.05 0.90
SBI LIFE 10.77 2.92
BAJAJ ALLIANZ 1.27 0.95
METLIFE 2.52 0.44
AMP SANMAR 0.00 0.00
ING VYSYA 0.00 0.00
AVIVA 2.85 0.57
SAHARA LIFE 0.02 0.00
TOTAL (B) 41.43 7.15
TOTAL (A+B) 42680.85 34075.47

27
INVESTMENTS OF LIFE INSURERS IN UNIT LINKED PLANS

(Rs. In Crore)

2008 2007

PUBLIC SECTOR

LIC (A) 2758.67 209.87

PRIVATE SECTOR

HDFC STD LIFE 290.67 60.91

MNYL 20.44 0.00
ICICIPRU 2337.16 780.07
BSLI 1125.72 474.62
TATA AIG 80.81 12.75
KOTAK LIFE 308.33 53.54
SBI LIFE 3.54 0.00
BAJAJ ALLIANZ 369.24 28.61
METLIFE 1.74 0.00
AMP SANMAR 21.40 0.00
ING VYSYA 78.61 20.81
AVIVA 131.13 47.13
SAHARA LIFE 0.00 0.00
TOTAL (B) 4768.77 1478.43
TOTAL (A+B) 7527.45 1688.31

28
BAJAJ ALLIANZ LIFE INSURANCE

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates-, Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers
in the world and Allianz AG, one of the world's largest insurance
companies.

Bajaj Allianz Life Insurance

• Is the fastest growing private life insurance company in India.

• Currently has over 3,00,000 satisfied customers

• We have customer care centers in 155 cities with 28000 Insurance
Consultant providing the finest customer service.
• One of India's leading private life insurance companies Bajaj Allianz
General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a reputation of
expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and

Development Authority (IRDA) certificate of Registration (R3) on May 2nd,
2001 to conduct General Insurance business (including Health Insurance
business) in India. The Company has an authorized and paid up capital of Rs
110 crores. Bajaj Auto holds 74% and the remaining 26% is held by Allianz,
AG, and Germany.

29
Bajaj Allianz today has a network of 42 offices spread across the
length and breadth of the country. From Surat to Siliguri and
Jammu to Thiruvananthapuram, all the offices are
interconnected with the Head Office at Pune.

30
ALLIANZ GROUP

Allianz Group is one of the world's leading insurers and financial services
providers.

Founded in 1890 in Berlin, Allianz is now present in over 70 countries with

almost 174,000 employees. At the top of the international group is the
holding company, Allianz AG, with its head office in Munich.

Allianz Group provides its more than 60 million customers worldwide with a
comprehensive range of services in the areas of

• Property and Casualty Insurance,

• Life and Health Insurance,

• Asset Management and Banking.

• ALLIANZ AG- A GLOBAL Financial POWERHOUSE

• Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.

• 3rd largest Assets under Management (AUM) & largest amongst

Insurance cos. - AUM of Rs.51, 96,959 cr.

• 12th largest corporation in the world

• 49.8 % of global business from Life Insurance

• Established in 1890, 110 yrs of Insurance expertise

• 70 countries, 173,750 employees worldwide

31
BAJAJ GROUP

Bajaj Auto Ltd, the flagship company of the Rs. 8000 crore Bajaj group is the
largest manufacturer of two-wheelers and three-wheelers in India and one of
the largest in the world.

A household name in India, Bajaj Auto has a strong brand image & brand
loyalty synonymous with quality & customer focus.

A STRONG INDIAN BRAND- HAMARA BAJAJ

• One of the largest 2 & 3 wheeler manufacturer in the world

• 21 million+ vehicles on the roads across the globe

• Managing funds of over Rs 4700 cr.

• Bajaj Auto finance one of the largest auto finance cos. in India

• Rs. 5,744 Cr. Turnover & Profits of 678 Cr. in 2005-06

• It has joined hands with Allianz to provide the Indian consumers with a
distinct option in terms of life insurance products.
• As a promoter of Bajaj Allianz Life Insurance Co. Ltd., Bajaj Auto
has the following to offer -

• Financial strength and stability to support the Insurance Business.

• A strong brand-equity.

• A good market reputation as a world class organization.

• An extensive distribution network.

• Adequate experience of running a large organization.

32
PRODUCTS

Allianz AG with over 110 years of experience in over 70 countries and Bajaj
Auto, trusted for over 55 years in the Indian market, together are committed to
offering you financial solutions that provide all the security you need for your
family and yourself.

Bajaj Allianz brings to you several innovative products, the details of which
you can browse in this section.

33
INDIVIDUAL PRODUCTS

UNITGAIN
A Unit Linked Plan

TERM CARE
Term Plan with Return-of-Premium

LIFETIME CARE
Whole Life Plan

LOAN PROTECTOR
A Mortgage Reducing Term Insurance Plan

KEYMAN INSURANCE
A Promising Business Opportunity

UNITGAIN PLUS
Unit Link plan with higher allocation

RIDERS UNITGAIN PLUS

While the basic life insurance

UNITGAIN EASY PENSION

A Plan that enables you retire with laughter lines not
worry lines

HEALTHCARE
This is a three-year health insurance plan, with life insurance
benefit.

RISK CARE
Pure Term Plan
INVESTGAIN
An Endowment Plan
CHILDGAIN
Children's Policy
CASHGAIN
Money Back Plan
SWARNA VISHRANTI
Retirement Plan
LIFELONG GAIN PLAN
A lifetime of security for your family
MAHILAGAIN RIDER
The unique plan that takes care of you and your loved ones.
SWARNA RAKSHA-ROC
A plan that provides you with regular income... for life.

34
UG PREMIER
Upfront Allocation of 105% of single premium on day 1

35
GROUP PLANS
• GROUP CREDIT SHIELD

• GROUP TERM LIFE

• GROUP TERM LIFE SCHEME

• GROUP SUPERANNUATION SCHEME

• GROUP GRATUITY CARE SCHEME

• INVEST PLUS

Insurance for NRI

All Indians have an underlying need to feel secure, to care for the loved ones
and to provide for old age. The need is felt more when you are away from
your Homeland. But being away from India doesn't mean you have to
compromise on the safety and security of your loved ones.

In fact, you can now easily steer your savings from overseas to conveniently
meet your family's needs - now and in the future.
Bajaj Allianz understands your need. The need to do something fruitful for
your loved ones.. The urge to let them know that you care. That's why Bajaj
Allianz introduced the NRI Insurance services. Now, you can invest your
hard earned money in India and in the bargain ensure your family's future.

• Invest Gain - 'With Profits Endowment Plan’.

• Cash Gain - 'With Profits Money Back Plan'.

• Child Gain - 'With Profits Money Back Plan' for children.

• Lifetime Care - 'With Profits Whole of Life Plan'.

• Swarna Vishranti - 'With Profits Differed Annuity Plan'.

• Unit Gain - 'Unit Linked Whole of Life Plan'.

36
OBJECTIVES OF THE STUDY

• To study the sales Strategy of field force of Bajaj Allianz

Life Insurance.

• To study the process of selling of Insurance Policies by

Advisors.

37
RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the

research problem. Research methodology constitutes of research
methods, selection criterion of research methods, used in context
of research study and explanation of using of a particular method
or technique so that research results are capable of being evaluated
either by researcher himself or by others. Why a research study has
been undertaken, how the research problem has been formulated,
why data have been collected and what particular technique of
analyzing data has been used and a best of similar other question
are usually answered when we talk of Research methodology
concerning a research problem or study. The main aim of research
is to find out the truth which is hidden and which has not been
discovered as yet.

38
AREA OF STUDY

The area of the study related with getting correct information of life insurance
policies of different peoples in the region of Bhopal.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given

population. It refers to the techniques or the procedure the researcher would
adopt in selecting items for the sample. Sample design may as well be drawn
from the population to be included in the sample i.e. the size of the sample.
Sample design is determined before data are collected.
During my study I have taken 15 insurance care consultants as the size of
sample.

TOOLS USED

To know the response, I have used the questionnaire method. If one wishes to
find what insurance care consultants think or know, the logical procedure is
to ask them. This has led marketing researchers to use the questionnaire
technique for collecting data more than any other method.

In this method questionnaire were distributed to the respondents

and they were asked to answer the questions in the questionnaire.
The questionnaire were structured non disguised questionnaire
because the question which the questionnaire contained, were
arranged in a specific order besides every question asked were
logical for the study, no question can be termed as irrelevant.

39
The questionnaire was non-disguised because the questionnaire was
constructed so that the objective is clear to the respondent. The respondents
were aware of the objective. They knew why they were asked to fill the
questionnaire.

With the help of following techniques, which are using by Bajaj

Allianz I analyze that the how techniques of sales promotion are
useful?

40
DATA COLLECTION

PRIMARY DATA SOURCES

• Through interaction with insurance care consultant

• Through questionnaires filled from the insurance care consultant.

SECONDARY DATA SOURCES:

• Through Internet, various official sites of the companies.

• Through pamphlets and brochures of the companies.

• Journals & Magazine

LIMITATIONS OF THE STUDY

Following limitations were faced during the study:

1. While designing the questionnaire it was kept in mind to gather more

and more information from each target person. For the neither present nor
descriptive questions could have served the purpose. Therefore the
questionnaire contained in the open-ended questions.

2. The study was conducted in Bajaj Allianz in Bhopal city, which has 127
to 170 insurance care consultants only. The sample size was of 50
insurance care consultants only so that accuracy of data so collected
could be absurd covered by circulation of questionnaire.
3. The accuracy of indications given by the respondents may not be
consider adequate as whether the language used in the questionnaire is
understood by the respondent cannot be taken for granted.
4. The study is based on the information gathered from the insurance

41
 care consultants. Therefore in such case it is possible that the
information supplied might be biased because the insurance care
consultant might have shown partiality towards their insurance
policies.

5. Since the survey was limited to 50 insurance care consultants it is

rather difficult to give a precise conclusion but I have tried to the best
of my capability to give the conclusion on a comprehensive manner.

42
 DATA ANALYSIS AND INTERPRETATION
(Based on survey conducted for 15 insurance care consultants)

Q.1 Which technique of sales promotion you prefer?

Options Response in %
Display 40%
Door to Door Demo 14%
Exhibition 16%
Catalogue 20%
Price Off 10%

40%
35%
30%
25%
20%
15%
10%

5%

0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the study 40% insurance care consultants prefer display
technique,20% insurance care consultants prefer catalogues, 16% to
the exhibition, 14% to the door to door demo and 10% insurance care
consultants prefer price off technique.

43
Q.2 which technique is giving good response from customers?

Options Response in %
Display 18%
Door to Door Demo 36%
Exhibition 18%
Catalogue 16%
Price Off 12%
40%
35%
30%
25%
20%
15%
10%

5%

0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the study 36% insurance care consultants say door to
door demo techniques giving good response, 18% insurance care
consultants say to the display & exhibition, 16% to the catalogues & 12%
say to the price off technique.

44
Q.3 Which technique is economically beneficial?

Options Response in %
Display 10%
Door to Door Demo 22%
Exhibition 10%
Catalogue 46%
Price Off 12%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the 46% insurance care consultants, catalogue technique
is economically beneficial. 22% to the door-to-door demo and 12%
insurance care consultants prefer price off technique.10% to the exhibition
& display technique.

45
Q.4 Which technique requires less time in sales promotion?

Options Response in %
Display 22%
Door to Door Demo 38%
Exhibition 10%
Catalogue 16%
Price Off 14%
40%
35%
30%
25%
20%
15%
10%

5%

0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the study 38% insurance care consultants say display
technique requires less time in sales promotion. 22% to the display
technique, 16% insurance care consultants vote to the catalogues, 14%
insurance care consultants vote to the 10% to the exhibition.

46
Q5 Which technique is easily manageable?

Options Response in %
Display 18%
Door to Door Demo 30%
Exhibition 10%
Catalogue 34%
Price Off 8%

35%
30%
25%
20%
15%
10%

5%

0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the study 34% insurance care consultants say that the
catalogues is easily manageable, 30% to the door to door demo,18%
insurance care consultants prefer display technique 10% to the exhibition,
and 8% insurance care consultants say to the price off technique.

47
Q.6 Which technique requires less knowledge to execute?

Options Response in %
Display 14%
Door to Door Demo 12%
Exhibition 12%
Catalogue 22%
Price Off 40%
40%
35%
30%
25%
20%
15%
10%

5%

0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the study 40% insurance care consultants vote to the price off
technique is require less knowledge to execute.22% insurance care
consultants prefer catalogues, 14% to the display and 12% to the exhibition
& door to door.

48
Q.7 Which technique requires more knowledge to execute?

Options Response in %
Display 20%
Door to Door Demo 42%
Exhibition 24%
Catalogue 10%
Price Off 4%
45%
40%
35%
30%
25%
20%
15%
10%
5%

0%
Display Door to Door Exhibition Catalogue Price Off
Demo

Interpretation:
According to the study 42% insurance care consultants vote to the door-to-
door technique that it requires more knowledge to execute than others. 24%
to the exhibition, 20% to the display technique, 10% insurance care
consultants give vote to the catalogues and 4% insurance care consultants
prefer price off technique.

49
Q.8 Price off are necessary for sales promotion?

Options Responses in %
Yes 46%
No 40%
Can’t say 14%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Yes No Can’t say

Interpretation:
According to the study 46% insurance care consultants say yes that the
price off are necessary for sales promotion. 40% say no and 14% say can’t
say.

50
Q.9 Do you think that sales promotion program that is presently
undertaken by Bajaj Allianz? Are satisfactory?

Options Responses in %
Yes 34%
No 46%
Can’t say 20%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%

0%
Yes No Can’t say

Interpretation:
According to the study 46% insurance care consultants say No that the sales
promotion program that is presently undertaken by Bajaj Allianz are
satisfactorily 36% say Yes and 20% say can’t say.

51
Q.10 Should Bajaj Allianz take up new sales promotion program?

Options Responses in %
Yes 72%
No 22%
Can’t say 6%
80%
70%
60%
50%
40%
30%
20%
10%

0%

Yes

No

Can’t say

Interpretation:
According to the study 72% insurance care consultants say yes instalment
offers are 22% say no and 6% say can’t say.

52
OBSERVATIONS & FINDINGS
• This sales promotion process was very much satisfying for me not
only practically and academically but it also helped me in developing my
communication skill and enriched my knowledge also.

• I have come to know about the importance of marketing especially

with regard to Sales Promotion on the most renowned organization
like Bajaj Allianz. Especially because of emergence of many
competitor with excellence in services & competitive product. The
base of this chapter conclusion is on the data analysis or what we say
findings.

• I have finding from the insurance care consultants of the Bajaj Allianz.
And their insurance policies on my topic.

• When the insurance care consultant is asked why they are dealing in
this particular insurance policies (product) they mostly stressed on
company’s image. They also said that all income and age group of customers
are attracted towards their product but buyers are mainly from higher and
middle-income group.

• Insurance care consultants said that their sale is very much increased in
the last years because of an excellent performance of the product. Insurance
care consultants said that the customer are very much satisfied after
getting insurance policies because of its features related with risks of life and
also because of quality of service provide by their company is very good.

53
SUGGESTIONS

Here are some suggestions, which may help to strengthen the firm further

• Many of the insurance care consultants of the Bajaj Allianz. Has the
lack of good communication skills and training. So training should be
easy.

• Bajaj Allianz. Should use new techniques of sales promotion.

• Customer services should be more comfortable than others.

• People must be made aware of the benefits of the policies of Bajaj
Allianz.

• The company should give personal attention to each customer.

• Proper assistance should be provided to the customer at the time of
claim settlement.

• All the details about the company should be given to the customers.

• Regular advertisement of the company should be given TV and

Newspaper.
• The company must try to find new markets especially in the rural
areas.

• The company should do frequent analysis of the competitors.

54
BIBLIOGRAPHY

Books

• Kothari C.R., (1999) Research Methodology, Wishwa Prakashan

• Kotler P. and Armstrong G., (2005) Principles of Marketing New
Delhi, Prentice Hall of India

• Kotler P., (1999) Marketing Management Analysis, Planning,

Implementation and Control, New Delhi, Prentice Hall of India

• Saxena Rajan, (1999) Marketing Management, Tata McGraw Hill

Websites:

• www.bajajallianz.com

• www.quickmba.com

• www.indiainfoline.com

55