A Live Research Report on The Topic of A Study of Customer-buying behavior (with a focus on market segmentation) In

Submitted In Partial Fulfillment Of the Requirement of

Master Degree in Business Administration

2011-2013
Submitted To:
Dr Disha Mathur Assistant Professor

Submitted By:
Ankit Rao MBA Semester IV

Advent Institute of Management Studies Udaipur

PREFACE
The liberalization of the Indian insurance sector has been the subject of much heated debate for some years. The policy makers where in the catch 22 situation wherein for one they wanted competition, development and growth of this insurance sector which is extremely essential for channeling the investments in to the infrastructure sector. At the other end the policy makers had the fears that the insurance premium, which are substantial, would seep out of the country; and wanted to have a cautious approach of opening for foreign participation in the sector. As one of the rare occurrences the entire debate was put on the back burner and the IRDA saw the day of the light thanks to the maturing polity emerging consensus among factions of different political parties. Though some changes and some restrictive clauses as regards to the foreign participation were included the IRDA has opened the doors for the private entry into insurance. Whether the insurer is old or new, private or public, expanding the market will present multitude of challenges and opportunities. But the key issues, possible trends, opportunities and challenges that insurance sector will have still remains under the realms of the possibilities and speculation. What is the likely impact of opening up Indias insurance sector? The large scale of operations, public sector bureaucracies and cumbersome procedures hampers nationalized insurers. Therefore, potential private entrants expect to score in the areas of customer service, speed and flexibility. They point out that their entry will mean better products and choice for the consumer. The critics counter that the benefit will be slim, because new players will concentrate on affluent, urban customers as foreign banks did until recently. This seems to be a logical strategy. Start-up costs-such as those of setting up a conventional distribution network-are large and high-end niches offer better returns. However, the middle-market segment too has great potential. Since insurance is a volumes game. Therefore, private insurers would be best served by a middle-market approach, targeting customer segments that are currently untapped

ACKNOWLEDGEMENTS

I would like to thank Dr Disha Mathur, Assistant Professor, AIMS Udaipur for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. I would like to thank my project supervisor Mr. Sanjay Singh, Executive Territory Manager at Reliance Life Insurance Company Ltd for guiding me through my summer internship and research project. His encouragement, time and effort are greatly appreciated. I would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. Lastly I would like to thank all the respondents who offered their opinions and suggestions through the survey that was conducted by me in Udaipur. Once again my gratitude to the RELIANCE Life insurance for their kind co-operation.

ANKIT RAO

DECLARATION

I hereby declare that research report entitled A Study of

Customer-buying behavior (with a focus on market segmentation)

submitted for the partial fulfillment of the requirements for the award of Master of Business Administration is the outcome of original study undertaken by me and the has not formed the basis for the award of any degree, diploma or any other similar title.

Date:
Place:Udaipur

(Name & Sign.Of Student)

ANKIT RAO

EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and RELIANCE LIFE INSURANCE has given me the opportunity to work and get experience in highly competitive and enhancing sector.

The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big market as compared to the other companies.

Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer.

TABLE OF CONTENTS

Serial No.

Topics THE INSURANCE INDUSTRY COMPANY PROFILE RESEARCH METHODOLOGY 3.1 Title of the Study 3.2 Objective Of Study 3.3 Scope Of The Study 3.4 Significance Of The Study 3.5 Research Design 3.6 Sampling Methodology 3.7 Limitations of the research

Page No.

1 2 3

1 8 26

4 5 6

DATA ANALYSIS & INTERPRETATION CONCLUSION

31 46 48 50 55

Recommendation and Suggestions ANNEXURE

BIBLIOGRAPHY