Project Report

To
STUDY BRAND AWARENESS AND MARKET POTENTIAL OF
PRIVATE LIFE INSURANCE INDUSTRY IN DELHI (NORTH)
FOR

(Om Kotak Mahindra Life Insurance Pvt. Ltd.)

Submitted By
SATYAPRAKASH SINGH
To
Department of Operational Research
Faculty of Mathematical Sciences

University of Delhi
As
Partial Fulfillment of the
Requirement of the Degree of
Master of Sciences
In
Operational Research
Session 2011-2013

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 DEPARTMENT OF OPERATIONAL RESEARCH
FACULTY OF MATHEMATICAL SCIENCES
UNIVERSITY OF DELHI
DELHI-110007

Name of Student : Satyaprakash singh

Date of commencement of Project : 15th March, 2013

Date of Submission of the Project : 30th April, 2013

Title of Project : A study on brand awareness and

market potential of private life
insurance industry in Delhi (north)
for OM Kotak Mahindra Life
Insurance Ltd.

Name and Address of the Organization : Om Kotak Mahindra Life Insurance

Ltd. First and Second Floor, Central
Market Building, Constructed on
Plot No. 40, West Punjabi Bagh,
New Delhi 110026

Project Mentor (Organization) : Shri. A Achar(H.R Head)

Supervisors from the teaching faculty : Prof. Chandra K. Jaggi

Dr. (Mrs.) Preeti Wanti Srivastava
Dr. P.C. Jha
Dr. K.K. Aggarwal
Dr. (Mrs.) Anu Gupta Aggarwal
Dr. Ompal Singh
Dr. Aditi Khanna
Dr. Mukesh Kumar Mehlawat
Dr. Adarsh Anand
Mr. Kaushal Kumar

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 CERTIFICATE

This is to certify that this project titled viz. A study on brand awareness and
market potential of private life insurance industry in Delhi (north) for Om
Kotak Mahindra Life Insurance Ltd. is my original work carried out at Om
Kotak Mahindra Life Insurance Ltd. in the year 2012-13, and has been
submitted for partial fulfillment of the course M.Sc. Applied Operational Research.
It has not been submitted at any other University or Institution for Degree or
Diploma.

SATYAPRAKASH SINGH

Master of Science (Semester-IV)

Applied Operational Research
Department of Operational Research
University of Delhi South Campus
New Delhi-110021

Prof. Chandra K. Jaggi

Head
Department of Operational Research
Faculty of Mathematical Sciences
University of Delhi
Delhi-110007

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 ACKNOWLEDGEMENT

I express my profound gratitude to my esteemed Head Prof. Chandra K. Jaggi for

having given me the opportunity to come out of the shelter and to gain confidence
and determination in facing the practical work environment.

I am grateful to Mr. Jaipal singh for the help, kind co-operation and guide without
which my project would not have taken its present final shape.

My sincere and earnest thanks to Mr. Saurabh singh Sales Manager corporate for
having given me such a mind-provoking project and for his constant support and
encouragement. I would like to express my heartfelt thanks to Mr. Manoj, Sales
Associate for guiding me throughout the project, his suggestions have definitely
induced my project to take a giant leap. I deeply acknowledge the co-operation of
the staff for their extensive support in spite of their busy schedule.

I also extend my heartful thanks to other lecturers in the department of Operational

Research. Its my privilege and pleasant duty to thank all the staff and faculty
members of my college.

I also wish to thank to Life Advisors of OM KOTAK MAHINDRA LIFE

INSURANCE COMPANY who helped me a lot in getting me valuable
information for the completion of this project.

I am also extremely thankful and grateful to my parents who with their love,
affection and moral support boosted my confidence and help me finish the project
in style.

SATYAPRAKASH SINGH

Master of Science (Semester-IV)

Applied Operational Research
Department of Operational Research
University of Delhi South Campus
New Delhi-110021

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 CONTENTS
SNO. TOPIC
Chapter 1 Operation Research
1.1 Introduction to OR
1.2 Background of OR
1.3 Meaning of OR
1.4 Features of OR
1.5 Phases of study
1.6 Outlines of OR models
1.7 Application of OR
1.8 Scope of OR
1.9 Limitations of OR
Chapter 2 Company Profile
2.1 Project profile
2.2 Industry profile
2.3 Company profile
2.4 Product profile
Chapter 3 Literature Review
3.1 Consumer awareness
3.2 Consumer behaviour
3.3 Market analysis
3.4 Customer satisfaction
3.5 Market research
3.6 Factor analysis
Chapter 4 Problem Definition
4.1 Need for the study
4.2 Objective, scope and limitation of the study
Chapter 5 Research Methodology & Hypothesis
5.1 Research design

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5.2 Data collection
5.3 Types of questions
5.4 Sampling design and size
5.5 Statistical tools used
Chapter 6 Data analysis, Factor analysis and Swot analysis
Chapter 7 Suggestions and Conclusions
Chapter 8 Annexure

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 CHAPTER 1
1. INTRODUCTION

Operations Research (OR) is a science which deals with problem, formulation,

solutions and finally appropriate decision making. This subject is new and started
after World War II, when the failures of missions were very high. Scientists and
technocrats formed team to study the problem arising out of difficult situations and
at the later stage solutions to these problems. It is research designed to determine
most efficient way to do something new. OR is the use of mathematical models,
statistics and algorithm to aid in decision-making. It is most often used to analyze
complex real life problems typically with the goal of improving or optimizing
performance.

With the growth of technology, the World has seen remarkable changes in the size
and complexity of organizations. An integral part of this had been the division of
labour and segmentation of management responsibilities in these organizations.
The results have been remarkable but with this, increasing specialization has
created a new problem to meet out organizational challenges. The allocation of
limited resources to various activities has gained significant importance in the
competitive market. These types of problems need immediate attention which is
made possible by the application of OR techniques.

The tools of operations research are not from any one discipline, rather
Mathematics, Statistics, Economics, Engineering, Psychology, etc. have
contributed to this newer discipline of knowledge. Today, it has become a
professional discipline that deals with the application of scientific methods for
decision-making, and especially to the allocation of scare resources.

In India first unit of OR started in the year 1957 with its base at RRL Hyderabad.
The other group was set up in Defence Science Laboratory which was followed by
similar units at different parts of the country. The popular journal of OPSEARCH
was established in 1963, to promote research in this field. Keeping in view the
critical economic situation which required drastic increase in production
efficiency, OR activities were directed, in all areas of business activities. In the late
50s OR was introduced at university level. With the development of PCs the use
of OR techniques became prominent and effective tool as large amount of
computation is required to handle complex problems. In recent years application of

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OR techniques have achieved significance in all walk of life, may it be industry or
office work for making strategical decisions more scientifically.
2. BACKGROUND OF OPERATION RESEARCH

The effectiveness of operations research in military spread interest in it to other

governmental departments and industry. In the U.S.A. the National Research
Council formed a committee on operations research in 1951, and the first book on
the subject Methods of Operations Research, by Morse and Kimball, was
published. In 1952 the Operations Research Society of America came into being.

Today, almost all organisations make use of OR techniques for decision-making at

all levels. This general acceptance to OR has come as managers have learned the
advantage of the scientific approach to all industrial problems. Some of the Indian
organisations using operations research techniques to solve their varied complex
problems are: Railways, Defence, Indian Airlines, Fertilizer Corporation of India,
Delhi Cloth Mills, Tata Iron and Steel Co. etc.

A purpose of OR is to provide a rational basis for making decisions in the absence

of complete information. OR can also be treated as science devoted to describing,
understanding and predicting the behaviour of systems, particularly man-machine
systems.

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 3. MEANING OF OR

Defining OR is difficult task as its boundaries and content are not yet fixed. It can
be regarded as use of mathematical and quantitative techniques to substantiate the
decision being taken. Further, it is multidisciplinary which takes tools from
subjects like mathematics, statistics, engineering, economics, psychology etc. and
uses them to score the consequences of possible alternative actions. Today it has
become professional discipline that deals with the application of scientific methods
to decision-making. Salient aspects related to definition stressed by various experts
on the subject are as follows:

1) Pocock stresses that OR is an applied science; he states OR is scientific

methodology-analytical, experimental, quantitativewhich by assessing the
overall implication of various alternative courses of action in a management
system, provides an improved basis for management decisions.

2) Morse and Kimball have stressed the quantitative approach of OR and have
described it as a scientific method of providing executive departments with
a quantitative basis for decisions regarding the operations under their
control.

3) Miller and Starr see OR as applied decision theory. They state OR is

applied decision theory. It uses any scientific, mathematical or logical means
to attempt to cope with the problems that confront the executive, when he
tries to achieve a thoroughgoing rationality in dealing with his decision
problem.

4) Saaty considers OR as tool of improving the quality of answers to problems.

He say, OR is the art of giving bad answers to problems which otherwise
have worse answers.

Few other definitions of OR are as follows:

OR is concerned with scientifically deciding how to best design and operate

man-machine system usually requiring the allocation of scare resources.
Operations Research Society, America

OR is a scientific knowledge through interdisciplinary team effort for the

purpose of determining the best utilization of limited resources.
H.A. Taha

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 4. FEATURES OF OR

The significant features of operations research include the followings:

(i) Decision-making. Every industrial organisation faces multifacet

problems to identify best possible solution to their problems. OR aims to
help the executives to obtain optimal solution with the use of OR
techniques. It also helps the decision maker to improve his creative and
judicious capabilities, analyse and understand the problem situation
leading to better control, better co-ordination, better systems and finally
better decisions.

(ii) Scientific Approach. OR applies scientific methods, techniques and

tools for the purpose of analysis and solution of the complex problems. In
this approach there is no place for guess work and the person bias of the
decision maker.

(iii) Inter-disciplinary Team Approach. Basically the industrial problems

are of complex nature and therefore require a team effort to handle it.
This team comprises of scientist/mathematician and technocrates. Who
jointly use the OR tools to obtain a optimal solution of the problem. The
tries to analyse the cause and effect relationship between various
parameters of the problem and evaluates the outcome of various
alternative strategies.

(iv) System Approach. The main aim of the system approach is to trace for
each proposal all significant and indirect effects on all sub-system on a
system and to evaluate each action in terms of effects for the system as a
whole. The interrelationship and interaction of each sub-system can be
handled with the help of mathematical/analytical models of OR to obtain
acceptable solution.

(v) Use of Computers. The models of OR need lot of computation and

therefore, the use of computers becomes necessary. With the use of
computers it is possible to handle complex problems requiring large
amount of calculations.

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 5. PHASES OF STUDY

OR is a logical and systematic approach to provide a rational basis for decision-

making. The phases of OR must be logical and systematic. The various steps
required for the analysis of a problem under OR are as follows:

Step I. Observe the Problem Environment

The first step of OR study is the observation of the environment in which the
problem exists. The activities that constitute this step are visits, conferences,
observations, research etc. with the help of such activities, the OR analyst gets
sufficient information and support to proceed and is better prepared to formulate
the problem.

Step II. Analyse and Define the Problem

In this step not only the problem is defined but also uses, objectives and limitations
of the study that are stressed in the light of the problem. The end results of this step
are clear grasp of need for a solution and understanding of its nature.

Step III. Develop a Model

The next step is to develop model, which is representation of same real or abstract
situation. OR models are basically mathematical models representing systems,
process or environment in form of equations, relationships or formulae. The
activities in this step is to defining interrelationships among variables, formulating
equations, using known OR models or searching suitable alternate models. The
proposed model may be field tested and modified in order to work under stated
environmental constraints. A model may also be modified if the management is not
satisfied with the answer that it gives.

Step IV. Selection of Data Input

It is a established fact that without authentic and appropriate data the results of the
OR models cannot be trusted. Hence, taping right kind of data is a vital step in OR
process. Important activities in this step are analysing internal-external data and
facts, collecting opinions and using computer data banks. The purpose of this step
is to have sufficient input to operate and test the model.

Step V. Solution and Testing

In this step the solution of the problems is obtained with the help of model and data
input. Such a solution is not implemented immediately and this solution is used to
test the model and to find its limitations if any. If the solution is not reasonable or
if the model is not behaving properly, updating and modification of the model is
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considered at this stage. The end result of this step is solution that is desirable and
supports current organizational objectives.

Step VI. Implementation of the Solution

This is the last phase of the OR study. In OR the decision-making is scientific but
implementation of decision involves many behavioural issues. Therefore,
implementation authority has to resolve the behavioural issues, involving the
workers and supervisors to avoid further conflicts. The gap between management
and OR scientist may offer some resistance but must be eliminated before solution
is accepted in totality. Both the parties should play positive role, since the
implementation will help the organization as a whole. A properly implemented
solution obtained through OR techniques results in improved working conditions
and wins management support.

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 6. OUTLINES OF OR MODELS

In OR the problem is expressed in the form of a model. Where, a model is a

theoretical abstraction (approximation) of a real-life problem. It can be defined as a
simplified representation of an operation or a process in which only the basic
aspects or the most important features of a typical problem under investigation are
considered. OR analysts have given special impetus to the development and use of
techniques like, linear programming, waiting line theory, game theory, inventory
controls and simulation. In addition, some other common tools are non-linear
programming, integer programming, dynamic programming, sequencing theory,
Markov process, network schedulingPERT and CPM, symbolic logic,
information theory and utility/value theory. The list, of course, is not exhaustive.
The detailed discussion on above will be presented in appropriate chapters,
however, brief explanation of these is given below:

(i) Linear Programming (L.P.)

Linear programming is basically a constrained optimization technique which tries
to optimize some criterion within some constraints. It consists of an objective
function which is some measure of effectiveness like profit, loss or return on
investment and several boundary conditions putting restriction on the use of
resources. Objective function and boundary conditions are linear in nature. There
are methods available to solve a linear programming problem.

(ii) Waiting Line or Queuing Theory

This deals with the situation in which queue is formed or the customers have to
wait for service or machines wait for repairmen and therefore concept of a queue is
involved. If we assume that there are costs associated with waiting in line, and if
there are costs of adding more service facilities, we want to minimize the sum of
costs of waiting and the costs of providing service facilities. Waiting line theory
helps to make calculations like number of expected member of people in queue,
expected waiting time in the queue, expected idle time for the server, etc. These
calculations then can be used to determine the desirable number of service
facilities or number of servers.

(iii) Game Theory

It is used for decision-making under conflicting situations where there are one or
more opponents. The opponents, in game theory, are called players. The motives of
the players are dictomized. The success of one player tends to be at the cost of
others and hence they are in conflict. Game theory models, a conflict situation

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arises and helps to improve the decision process by formulating appropriate
strategy.

(iv) Inventory Control Models

These models deal with the quantities which are either to be purchased or stocked
since each factor involves cost. The purchase and material managers are normally
encounter such situations. Therefore, inventory models provide rational answer to
these questions in different situations of supply and demand for different kind of
materials. Inventory control models help managers to decide ordering time,
reordering level and optimal ordering quantity. The approach is to prepare a
mathematical model of the situation that expressed total inventory costs in terms of
demand, size of order, possible over or under stocking and other relevant factors
and then to determine optimal order size, optimum order level etc. using calculus
or some other technique.

(v) Simulation
It is basically data generating technique, where sometimes it is risky, cumbersome,
or time consuming to conduct real study or experiment to know more about
situation or problem. The available analytical methods cannot be used in all
situations due to large number of variables or large number of interrelationships
among the variables and the complexity of relationship, it is not possible to
develop an analytical model representing the real situation. Sometimes, even
building of model is possible but its solution may not be possible. Under such
situations simulation is used. It should be noted that simulation does not solve the
problem by itself, but it only generates the required information or data needed
for decision problem or decision-making.

(vi) Non-Linear Programming

These models may be used when either the objective function or some of the
constraints are not linear in nature. Non-linearity may be introduced by such
factors as discount on price of purchase of large quantities and graduated income
tax etc. Linear programming may be employed to approximate the non-linear
conditions, but the approximation becomes poorer as the range is extended. Non-
linear methods may be used to determine the approximate area in which a solution
lies and linear methods may be used to obtain a more exact solution.

(vii) Integer Programming

This method can be used when one or more of the variables can only take integer
values. Examples are the number of trucks in a fleet, the number of generators in a

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power house and so on. Approximate solutions can be obtained without using
integer programming methods, but the approximation generally becomes poorer as
the number becomes smaller. There are techniques to obtain solution of integer
programming problems.

(viii) Dynamic Programming

This is a method of analyzing multistage decision processes, in which each
elementary decision is dependent upon those preceding it as well as upon external
factors. It drastically reduces the computational efforts otherwise necessary to
analyze results of all possible combinations of elementary decisions.

(ix) Sequencing Theory

This is related to waiting line theory and is applicable when the facilities are fixed,
but the order of servicing may be controlled. The scheduling of service or the
sequencing of jobs is done to minimize the relevant costs and time.

(x) Markov Process

It is used for decision-making in situations where various states are defined. The
probability of going from one state to another is known and depends on the present
state and is independent of how we have arrived at that state. Theory of Markov
process helps us to calculate long run probability of being in a particular state
(steady state probability), which is used for decision-making.

(xi) Network SchedulingPERT and CPM

These techniques are used to plan, schedule and monitor large projects such as
building construction, maintenance of computer system installation, research and
development design etc. The technique aims at minimizing trouble spots, such as,
delays, interruptions and production bottlenecks, by identifying critical factors and
coordinating various parts of overall job/project. The project/job is
diagrammatically represented with the help of network made of arrows
representing different activities and interrelationships among them. Such a
representation is used for identifying critical activities and critical path. Two basic
techniques in network scheduling are Program Evaluation and Review Technique
(PERT) and Critical Path Method (CPM). CPM is used when time taken by
activities in a project are known for sure and PERT is used when activities time is
not known for sureonly probabilistic estimate of time is
available to the users.

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(xii) Symbolic Logic
It deals with substituting symbols for words, classes of things or functional
systems. Symbolic logic involves rules, algebra of logic and propositions. There
have been only limited attempts to apply this technique to business problems;
however has had extensive application in the design of computing machinery.

(xiii) Information Theory

Information theory is an analytical process transferred from the electrical
communications field to operations research. It seeks to evaluate the effectiveness
of information flow within a given system. Despite its application mainly to
communication networks, it has had a indirect influence in simulating the
examination of business organizational structures with a view to improving
information or communication flow.

(xiv) Utility/Value Theory

It deals with assigning numerical significance to the worth of alternative choices.
To date, this has been only a concept and is in the stage of elementary model
formulation and experimentation and can be useful in decision-making process.

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 7. APPLICATION OF OR

Today, almost all fields of business and government utilizing the benefits of
Operations Research. There are voluminous of applications of Operations
Research. Although it is not feasible to cover all applications of O.R. in brief. The
following are the abbreviated set of typical operations research applications to
show how widely these techniques are used today:

Accounting:
Assigning audit teams effectively
Credit policy analysis
Cash flow planning
Developing standard costs
Establishing costs for byproducts
Planning of delinquent account strategy

Construction:
Project scheduling, monitoring and control
Determination of proper work force
Deployment of work force
Allocation of resources to projects

Facilities Planning:
Factory location and size decision
Estimation of number of facilities required
Hospital planning
International logistic system design
Transportation loading and unloading
Warehouse location decision

Finance:
Building cash management models
Allocating capital among various alternatives
Building financial planning models
Investment analysis
Portfolio analysis
Dividend policy making

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Manufacturing:
Inventory control
Marketing balance projection
Production scheduling
Production smoothing

Marketing:
Advertising budget allocation
Product introduction timing
Selection of Product mix
Deciding most effective packaging alternative

Organizational Behavior / Human Resources:

Personnel planning
Recruitment of employees
Skill balancing
Training program scheduling
Designing organizational structure more effectively

Purchasing:
Optimal buying
Optimal reordering
Materials transfer

Research and Development:

R & D Projects control
R & D Budget allocation
Planning of Product introduction

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 8. SCOPE OF OR

As presented in the earlier paragraphs, the scope of OR is not only confined to any
specific agency like defence services but today it is widely used in all industrial
organisations. It can be used to find the best solution to any problem be it simple or
complex. It is useful in every field of human activities, where optimisation of
resources is required in the best way. Thus, it attempts to resolve the conflicts of
interest among the components of organization in a way that is best for the
organisation as a whole. The main fields where OR is extensively used are given
below, however, this list is not exhaustive but only illustrative.

(i) National Planning and Budgeting

OR is used for the preparation of Five Year Plans, annual budgets,
forecasting of income and expenditure, scheduling of major projects
of national importance, estimation of GNP, GDP, population,
employment and generation of agriculture yields etc.

(ii) Defence Services

Basically formulation of OR started from USA army, so it has wide
application in the areas such as: development of new technology,
optimization of cost and time, tender evaluation, setting and layouts of
defence projects, assessment of Threat analysis, strategy of battle,
effective maintenance and replacement of equipment, inventory
control, transportation and supply depots etc.

(iii) Industrial Establishment and Private Sector Units

OR can be effectively used in plant location and setting finance
planning, product and process planning, facility planning and
construction, production planning and control, purchasing,
maintenance management and personnel management etc. to name a
few.

(iv) R & D and Engineering

Research and development being the heart of technological growth,
OR has wide scope for and can be applied in technology forecasting
and evaluation, technology and project management, preparation of
tender and negotiation, value engineering, work/method study and so
on.

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(v) Business Management and Competition
OR can help in taking business decisions under risk and uncertainty,
capital investment and returns, business strategy formation, optimum
advertisement outlay, optimum sales force and their distribution,
market survey and analysis and market research techniques etc.

(vi) Agriculture and Irrigation

In the area of agriculture and irrigation also OR can be useful for
project management, construction of major dams at minimum cost,
optimum allocation of supply and collection points for fertilizer/seeds
and agriculture outputs and optimum mix of fertilizers for better yield.

(vii) Education and Training

OR can be used for obtaining optimum number of schools with their
locations, optimum mix of students/teacher student ratio, optimum
financial outlay and other relevant information in training of graduates
to meet out the national requirements.

(viii) Transportation
Transportation models of OR can be applied to real life problems to
forecast public transport requirements, optimum routing, forecasting
of income and expenses, project management for railways, railway
network distribution, etc. In the same way it can be useful in the field
of communication.

(ix) Home Management and Budgeting

OR can be effectively used for control of expenses to maximize
savings, time management, work study methods for all related works.
Investment of surplus budget, appropriate insurance of life and
properties and estimate of depreciation and optimum premium of
insurance etc.

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 9. LIMITATION OF OR

Operations Research has number of applications; similarly it also has certain

limitations. These limitations are mostly related to the model building and money
and time factors problems involved in its application. Some of them are as given
below:

i) Distance between O.R. specialist and Manager

Operations Researchers job needs a mathematician or
statistician, who might not be aware of the business
problems. Similarly, a manager is unable to understand the
complex nature of Operations Research. Thus there is a big
gap between the two personnel.

ii) Magnitude of Calculations

The aim of the O.R. is to find out optimal solution taking into
consideration all the factors. In this modern world these factors are
enormous and expressing them in quantitative model and establishing
relationships among these require voluminous calculations, which can
be handled only by machines.

iii) Money and Time Costs

The basic data are subjected to frequent changes, incorporating these
changes into the operations research models is very expensive.
However, a fairly good solution at present may be more desirable than
a perfect operations research solution available in future or after some
time.

iv) Non-quantifiable Factors

When all the factors related to a problem can be quantifiable only then
operations research provides solution otherwise not. The non-
quantifiable factors are not incorporated in O.R. models.

v) Implementation
Once the decision has been taken it should be implemented. The
implementation of decisions is a delicate task. This task must take into
account the complexities of human relations and behavior and in some
times only the psychological factors.

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 CHAPTER 2
1. Project Profile
Life insurance industry is considered to be the sunrise industry in India.
Because of the huge opportunities and challenges it holds. Although it has taken
almost a decade for the Indian economic liberalization to reach the insurance
industry, it promises to reshape the countrys insurance landscape completely.

After years of having to put up with a monopoly, the consumer is now

rediscovering the joys of having a choice. In just over a year since the industry was
opened up, he has nearly 10 new companies to buy his insurance cover from OM
kotak Mahindra Life, HDFC standard life. ICICI prudential, Max New York Life,
Birla Sun Life, SBI Life, ING Vysya Life, Tata AIG Life, Reliance Life and
Allianz Bajaj life Insurance are offering their products in the market or are in the
process of doing so.

It happened in banking sector in the nineties, the entry of new private sector
banks saw a paradigm shift in the banking business was being done in the country-
which made ATMs, credit cards, pre-sanctioned loans and so on a house hold
names. Now its the turn of the insurance sector to deliver.

The Indian insurance market offers tremendous opportunity. It is

inadequately tapped and has an enormous potential for life insurance business.
There is room for everyone LIC and the new players.

In India, about 30-35 crores people are insurable, of this only 6.5 crores have
been introduced to insurance cover by LIC in the last forty years, reflecting a low
penetration of around 22-24% and its even lower in Non-metros.

The annualised compounded growth of the life insurance industry had been
20.6 Percent in the last 16 years. But with the initiatives of new private players, it
is expected to grow at over 30% annually over the next three to four years. The
growth is also expected to accelerate after government approves of new
distribution systems such as Banc assurance.

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 Competition is hotting up in the life insurance sector to woo new customers.
After creating an initial awareness, for their products, the new players in the Indian
life-insurance sector are now clearly charting out new marketing plans with
differentiations to promote their respective products in the overcrowded category.

Hence Branding and Positioning have a greater relevance in the financial

services market, which faces the problem to securing and retaining customers in an
increasingly competitive marketplace. The real task is in knowing customer needs
and promoting and positioning ones brand in a manner, with which the customer
can empathise.

Probably the best bit of new for the consumer is the revolution on the service
front. Gone are the days when monopolies gave them with the take-it-or-leave-it
option. The spectrum of choices before him is empowering him in such a way that
he will soon be able to dictate the terms of service in the insurance business.
Customised products are not a long way from where the life insurance industry
stands today.

Thus entry of large multinational players with their state-of-the-art

technology and global expertise is changing the basic quality parameters of life
insurance as a product in the country. And the rising temperature of competition is
forcing all players to structure their products in a way that is most attractive to the
customer. The life insurance consumer finally has a chance to be the king.The
present project aims to measure the changes in attribute of the consumers with the
emergence of private sector in the life insurance business. The project also focuses
on the awareness level, their confidence they repose on the new players in the
insurance market.

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 2. Industry Profile
The Life Insurance Scenario in India:

Since 1956, with the nationalization of insurance industry, the state-run Life
Insurance Corporation of India (LIC) has held the monopoly in that countrys life
insurance sector. General insurance corporation of India (GIC), with its four
subsidiaries, was its counterpart in the casually sector. Over time, taking advantage
of its monopoly and virtual prerogative in establishing premiums, LIC has evolved
into a monolith. With around 6, 00,000 agents in every nook and corner of the vast
country, it has created an enviable brand name, particularly among the rural
population of the country. It has around $40 billion as its life fund and is a strong
player in the financial sector. However, on the qualitative side, it has very little to
take pride in. and there lies the potential for foreign players to challenge this
behemoth.

As is typical with monopolies, the premium rates charged by LIC are among
the highest in the world, and its track record in customer service can, at best, be
called shabby. With a huge unionized, rigid workforce mostly in the clerical
category, LIC runs the risk of high fixed cost, which will be the deciding factor in
productivity in the competitive scenario. While boasting full- scale automation of
its operation, the truth is that its technology is outdated. The new players, with the
state-of-the-art technology under their belt, will be in an advantageous position.
80% of LICs business is procured by 20% of its ill-trained agent force.

The foreign player, with the domestic partners strong brand value, can test
the unconventional distribution channels like brokers, the internet, the banking
distribution system, etc. although foreign players may be tempted to keep their
operation in the big cities for the creamy layer of the society, the real market lies in
rural India, which accounts for the lions share of LICs present business. The
foreign player must learn to adapt to Indian realities. The well-publicized failures
of world famous consumer goods companies like Electrolux, whirlpool, Reebok,
Nike etc.to gauge the Indian psyche and sentiments demonstrate the concept. They
failed in the areas of realistic pricing, product promotion and reaching to the
consumer. The foreign companies need to know the ground realities to the
details.

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Political scenario
Until recently, India continued to be one of the few remaining countries of
the world to remain insulated from the direct foreign investment in its insurance
sector. However, things were changing with the passage of insurance Regulatory
Development Act (IRDA) through Indian parliament in late 1999.

A much awaited and much debated act, it meets with strong resistance from
the political institutions of India and took almost six years to see daylight. Though
first recommended by Malhothra Committee on insurance Reforms in 1994, what
emerges is a diluted from of the original recommendations. However in the long
awaited period of its passage, the issue was nationally debated and was finally de-
politicized, meaning that the reform path is irreversible.

IRDA, for the time being, prohibits 100% foreign equity in insurance. It
requires the Indian promoter to invest either wholly in an insurance venture or
team up with a foreign insurer, with a cap of 26% of equity for a foreign partner.
The Indian promoter is permitted to divest only after 10 years to the Indian public,
through a public offering of shares, at which time the equity structure will provide
for equal participation between the Indian and foreign partner with a share of 26%
each in the share capital.

The underlying tone of the 26% cap for the foreign insurer is to ensure that
financial intrest substantially vests with the Indian promoter, permitting the foreign
co-promoter a define say in direction and management (By Indian Company Law,
26% is the minimum equity to move a resolution or vetoing a resolution in Board
Of Directors Meeting).

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The list of foreign players entering the Indian insurance sector and their Indian
partners:
Indian partner Foreign insurer Specialization Present status
Aditya Birla Group Sun Life, Canada Life Received License
Kotak Mahindra Old Mutual, Life Received License
Finance South Africa
HDFC Standard Life, Life Received
UK License,
Commences
operation
Reliance No Foreign Life, Non- Life and Received License
Alliance Health for Non-Life
ICICI Prudential, UK Life Received
License,
Commences
Operation
ICICI Lombard, Canada Non-Life Not applied
Max India New York Life, Life Received License
USA
Sundaram Royal & Sun Non-Life Received License
Alliance Plc, UK
IFFCO Tokyo Marine, Non-life Received License
Japan
Tata Group AIG,USA Non-Life Received License
Vsya Bank Ing Insurance, Life Applied for
Netherlands license
Hero Group Zurich, Life Not Applied
Switzerland
Choolamandalam Undecided Life Not Applied
Group
Hindustan- Times Undecided Life Not Applied
Dabur CGNU Life, UK Life Not Applied
Bajaj Auto Allianz Non Life IRDASeeks more
information
Undecided Met life, USA Life Not Applied
Sanmar Group AMP, Australia Life Not Applied
SBI Cardiff, France Life Not Applied
S Kumars, J&K Undisclosed Non Life Finalizing Partner
Bank
Corporation Bank Undisclosed Life Finalizing Partner

Undisclosed Aegon, Life and Pensions Finalizing Partner

Netherlands

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Undisclosed Cigna, USA Life and Health Finalizing Partner
Undisclosed Chubb, USA Property & Caualty Finalizing Partner

Undisclosed Yasuda Marine Non Life Finalizing Parter

And Fire

Undisclosed Mitsui Marine Non Life Finalizing Partner

and Fire
Undisclosed Nation Wide, Life And Pensions Finalizing Partner
USA
Citi Bank, India Undecided Non Life Finalizing Partner

Undisclosed GE Captial LIFE Finalizing Partner

Services
international,
USA
Videocon Talks on with Non-life Finalizing Partner
International BNP Paribas,
AXA, France

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Insurance industry, as on 1.4.2000, comprised mainly two players: the state
insurers:

Life Insurers:

o Life Insurance Corporation of India (LIC)

General Insurers:

o General Insurance Corporation of India (GIC) (with effect from Dec 2000,
a National Reinsurer)
GIC has four subsidiary companies, namely (with effect from Dec2000, these
subsidiaries have been de-linked from the parent company and made an
independent insurance companies.

The Oriental Insurance company Limited

The New India Assurance Company Limited
National Insurance Company Limited
United India Insurance Company Limited.

28 | P a g e
Insurance Industry in the year 2000-2001 had 10 new entrants, namely:

S.No. Reg. Date of Registration Name of company

number
1 101 23.10.2000 HDFC standard Life
Insurance Company Ltd
2 104 15.11.2000 Max New York Life
Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life
Insurance Company Ltd
4 107 10.01.2001 OM Kotak Mahindra
Life Insurance Co. Ltd.
5 109 31.01.2001 Birla Sun Life Insurance
Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance
Company Ltd.
7 111 30.03.2001 SBI Life Insurance
Company Ltd.
8 114 02.08. 2001 ING Vysya Life
Insurance Company
Private Ltd.
9 116 03.08.2001 Allianz Bajaj Life
Insurance Company
Ltd.
10 117 06.08.2001 Metlife India Insurance
Company Pvt. Ltd.

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 3. Company Profile
Om Kotak Mahindra Life Insurance co.
OM Kotak Mahindra Life Insurance Co. is joint venture between Kotak
Mahindra Finance Ltd and Old Mutual Plc.

Kotak Mahindra is a financial services group, which has always believed in

providing its customers with a lifetime of value. The Kotak Mahindra group has
established itself as one of the Indias largest financial services groups, offering a
wide range of financial products and services. With a group net worth of over Rs.
2000crores, it caters to a customer base of over 500,000 and has joint ventures with
leading international players Goldman sachs for Investment Banking and
Brokerage, the Ford credit International for Automobile Finance.

Kotak Mahindra Finance Ltd. The flagship company of the group enjoys the
highest credit rating of FAAA by CRISIL and IND AAA (FD) by FITCH Rating
India.

With years of expertise in the Indian financial market, Kotak Mahindra is a

leader in several of its business-investment banking, retail distribution and car
finance. With a distribution network spread across 40 cities, the group enjoys a
widespread reach. It also has offices overseas in New York, London and Duba Old
Mutual Co. Plc.

Old Mutual has made significant progress through continued development of

core business, and through focused acquisitions, it has established a strong
foundation to build future business for customer and shareholder value. With 155
years of experience in the life insurance business, Old Mutual plc is today an
international financial services group based in London with expanding operation in
life assurance, asset management, banking and general insurance. Old Mutual is
listed on the London Stock Exchange and also on the south African, Namibian,
Malawi and Zimbabwe stock exchanges.

In 2000, Old Mutual acquired Gerard group in UK and United Asset

Management is US bringing total assets under management to US $ 250 billion (as
on 31st December, 2000. Financial Highlights for the years operating profit to US$
1381 million.

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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
customers 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. A 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 Honour: 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 Honour in every thought, act and deed in order to
positively contribute to individual, society and nation growth.

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 4. Product profile
The products of Kotak Life Insurance can be categorized into individual plans and
group plans. The individual plans may be mentioned as below:

Protection plans

Kotak Saral Suraksha

Kotak Eternal Life Plans
Kotak e-Term/e-Preferred Term
Kotak Assured Protection Plan
Kotak Term Plan/Kotak Preferred Term Plan

Savings and Investment plans

Kotak Assured Income Plan

Kotak Money Back Plan
Kotak Platinum
Kotak Surakshit Jeevan
Kotak Single Invest Advantage
Kotak Premium Return Plan
Kotak Ace Investment Plan
Kotak Gramin Bima Yojana
Kotak Wealth Insurance
Kotak Invest Maxima
Kotak Endowment Plan

Retirement plans

Kotak Lifetime Income Plan

Kotak Capital Multiplier Plan

Child plans

Kotak Child Advantage Plan

Kotak Child Edu Plan
Kotak Headstart Child Assure
Kotak Child Future Plan

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 CHAPTER 3

1. CONSUMER AWARENESS

The need for empowerment of consumers as a class cannot be over emphasized

and is already well recognized all over the world. The advancement of technology
and advent of sophisticated gadgets in the market and aggressive marketing
strategies in the era of globalization have not only thrown open a wide choice, for
the consumer but all the same also rendered the consumer vulnerable to a plethora
of problems concomitant to such rapid changes.

There is an urgent and increasing necessity to educate and motivate the

consumer to be wary of the quality of the products, and also the possible
deficiencies in the services of the growing sector of public utilities. In short, the
consumer should be empowered with respect to his rights as a consumer. He
should be equipped to be vigilant with a discerning eye so as to be able to protect
himself from any wrongful act on the part of the trader.

In order to be able to position the consumer in such a state, there is every

need not only to evolve legal remedies but also provide reliable and exhaustive
information, which he can access without much effort and expense. Recognizing
the importance of the problem, the Government of India and State Government
have initiated steps to introduce dispute redress mechanism by way of Consumer
Protection Ac, but a lot more has to be done in the area of creating awareness on
the part of the consumer to facilitate his seeking suitable remedy wherever there is
a need. This becomes more important in the rural areas, where there is wide spread
illiteracy.

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 2. CONSUMER BEHAVIOR

What is consumer behavior?

Consumer Behavior is defined as the study of the buying units and the exchange
processes involved in a acquiring, consuming, and disposing of goods, services,
experiences, and ideas.

This simple definition contains a number of important concepts. First, note

the inclusion in the definition of the word exchange. Consumer is inevitably at
the one end of exchange process in which resources are transferred between two
parties. For example, an exchange takes place between a doctor and a patient: the
physician trades medical services for money. Other resources- such as feelings,
information, and status- may also be exchanged between the parties. Exchange
process as a fundamental element of Consumer Behavior. Exchanges occur
between Consumers and Firms. Again looking at the definition, the term buying
units rather than consumers. This is because purchases may be made by groups as
well as individuals. In fact, an important study area for Consumer researchers is
organizational buying behavior.

What we buy, how we buy, where and when we buy, in how much quantity
we buy depends on our perception, self concept, social and cultural background
and our age and family cycle, our attitudes, beliefs values, motivation, personality,
social class and many other factors that are both internal and external to us. While
buying, we also consider whether to buy or not to buy and, from which source or
seller to buy. In some societies there is a lot of affluence and, these societies can
afford to buy in greater quantities and at shorter intervals. In poor societies, the
consumer can barely meet his barest needs.

The marketers therefore try to understand the needs of different consumers

and having understood his different behaviors which require an in-depth study of
their internal and external environment, they formulate their plans for marketing.

To understand the likes and dislikes of the consumer, extensive consumer

research studies are being conducted. These researches try to find out:

34 | P a g e
 i. What the consumer thinks of the companys products and those of its
competitors?

ii. How can the product be improved in their opinion?

iii. How the customers use the product?

iv. What is the customers attitude towards the product and its advertising?

v. What is the role of the customer in his family?

Consumer behavior is a complex, dynamic, multidimensional process, and all

marketing decisions are based on assumptions about consumer behavior.
Marketing strategy is the game plan which the firms must adhere to, in order to
outdo the competitor or the plans to achieve the desired objective. In formulating
the marketing strategy, to sell the product effectively, cost-benefit analysis must be
undertaken.

There can be many benefits of a product, for example, for owning a motor bike one
can be looking for ease of transportation, status, pleasure, comfort and feeling of
ownership. The cost is the amount of money paid for the bike, the cost of
maintenance, gasoline, parking, risk of injury in case of an accident, pollution and
frustration such as traffic jams. The difference between this total benefit and total
cost constitutes the customer value. The idea is to provide superior customer value
and this requires the formulation of a marketing strategy. The entire process
consists of market analysis, which leads to target market selection, and then to the
formulation of strategy by juggling the product, price, promotion and distribution,
so that a total product (a set of entire characteristics) is offered. The total product
creates an image in the mind of the consumer, who undergoes a decision process
which leads to the outcome in terms of satisfaction or dissatisfaction, which
reflects on the sales and image of the product or brand.

The figure below gives in detail the shaping of consumer behavior, which leads a
consumer to react in certain ways and he makes a decision, keeping the situations
in mind. The process of decision-making varies with the value of the product, the

35 | P a g e
involvement of the buyer and the risk that is involved in deciding the
product/service.

The figure shows the consumer life style in the centre of the circle. The

consumer and his life style is influenced by a number of factors shown all around
the consumer. These are culture, sub culture, values, demographic factors, social
status, reference groups, household and also the internal make up of the consumer,
which are a consumers, emotions, personality motives of buying, perception and
learning. Consumer is also influenced by the marketing activities and efforts of the
marketer.

All these factors lead to the formation of attitudes and needs of the consumer.

36 | P a g e
 3. MARKET ANALYSIS
Market analysis requires an understanding of the 4-Cs which are consumer,
conditions, competitor and the company. A study is undertaken to provide superior
customer value, which is the main objective of the company. For providing better
customer value we should learn the needs of the consumer, the offering of the
company, vis-a-vis its competitors and the environment which is economic,
physical, technological, etc.

A consumer is anyone who engages himself in physical activities, of evaluating,

acquiring, using or disposing of goods and services.

A customer is one who actually purchases a product or service from a particular

organisation or a shop. A customer is always defined in terms of a specific product
or company.

However, the term consumer is a broader term which emphasises not only the
actual buyer or customer, but also its users, i.e. consumers. Sometimes a product is
purchased by the head of the family and used by the whole family, i.e. a
refrigerator or a car. There are some consumer behavior roles which are played by
different members of the family.

All the consumer behavior roles are to be kept in mind but, the emphasis is on the
buyer whose role is overt and visible.

37 | P a g e
(a) The Consumer

To understand the consumer; researches are made. Sometimes motivational

research becomes handy to bring out hidden attitudes, uncover emotions and
feelings. Many firms send questionnaires to customers to ask about their
satisfaction, future needs and ideas for a new product. On the basis of the answers
received, changes in the marketing mix are made and advertising is also
streamlined.

(b) The External Analysis (Company)

The external analysis may be done by the feedbacks from the industry analyst and
by marketing researches. The internal analysis is made by the firm.s financial
conditions, the quantum of the sales, force and other factors within the company.
The study of these factors leads to a better understanding of the consumer and his
needs. The factors influencing Indian Consumer are:

1. Geography

2. Population

3. Urban-Rural

4. Sex

5. Age factor

6. Literacy level

7. Incentive level

8. Linguistic diversity

9. Religion

10. Dress, food

11. Habits and fashion

38 | P a g e
(c) The Competition

In the analysis of the market, a study of the strengths and weaknesses of the

competitors , their strategies, their anticipated moves and their reaction to the
companies. moves and plans is to be made. The company after getting this
information , reacts accordingly and changes its marketing mix and the offering is
made in a manner which can out do the competitor. This is a very difficult process
and it is easier said than done. To have correct information about the competitors
and to anticipate their further moves is the job of the researcher.

(d) The Conditions

The conditions under which the firms are operating has also to be seriously
considered. The factors to be studied are the economy, the physical environment,
the government regulations, the technological developments, etc. These effect the
consumer needs, i.e. the deterioration of the environment and its pollution may
lead to the use and innovation of safer products. People are health conscious and
are concerned with their safety. Hence, in this case, safer products have a better
chance with the consumer. In case of recession, the flow of money is restricted
greatly. This leads to the formulation of different marketing strategies.

(e) Market Segmentation

The market is divided into segments which are a portion of a larger market whose
needs are similar and, they are homogeneous in themselves. Such segments are
identified with similar needs.

1. Geography

2. Population

3. Urban-Rural

4. Sex

5. Age factor

6. Literacy level

39 | P a g e
7. Incentive level

8. Linguistic diversity

9. Religion

10. Dress, food

11. Habits and fashion

(f) Need Set

By need set, it is meant that there are products which satisfy more than one need.
An automobile can fill the transportation needs, status need, fun needs or time
saving needs. So the company tries to identify the need sets which its product can
fulfil. Then we try to identify the groups who have similar needs, i.e. some people
need economical cars, others may go for luxury cars.

(g) Demographic and Psychographic Characteristics

These groups are identified and they are described in terms of their demographic
and psychographic characteristics. The company finds out how and when the
product is purchased and consumed.

(h) Target Segment

After all the above preliminary work is done, the target customer group known as
the target segment is chosen, keeping in mind how the company can provide
superior customer value at a profit. The segment which can best be served with the
companys capabilities at a profit is chosen. It has to be kept in mind that different
target segments require different marketing strategies and, with the change in the
environmental conditions the market mix has to be adjusted accordingly.

Marketing Strategy

Strategies are formulated to provide superior customer value. In formulating

market strategies, the 4-ps are directed at the target market.

40 | P a g e
(i) Product

Product is anything that is offered to the consumer which is tangible and can
satisfy a need and has some value.

(j) Price

Price is the amount of money one must pay to obtain the right to use the product.

(k) Distribution (Place)

The goods can be distributed by many channels. These could be retailers,

wholesalers, agents or by direct selling. Distribution outlets play an important role
in reaching the goods to the consumer. They provide, time, place and possession
utilities. Some goods need to be marketed through the channels or the middleman.
Others can be marketed directly by the company to the actual consumer

(l) Promotion

Promotion is the means of changing the attitudes of the consumer, so that it

becomes favourable towards the company.s products. Various means of promotion
are advertising, personal selling, sales promotion and publicity.

(m) Service

Service refers to auxiliary service that enhances the value of the product or the
service. For instance, while buying a car. Free services are provided over a certain
period of time. Check-ups are free and maintenance is also covered on the charge
of an adequate amount along with the product purchased. These auxiliary services
are provided at a cost with money. These provide value to the product or the

41 | P a g e
customer. These services give an advantage to the customer and he is free from the
botheration of occasional checkups or risk. The risk is considerably reduced and,
the customer derives satisfaction with his decision to purchase.

(n) Consumer Decision Process

The decision-making process consists of a series of steps which the consumer

undergoes. First of all, the decision is made to solve a problem of any kind. This
may be the problem of creating a cool atmosphere in your home. For this,
information search is carried out, to find how the cool atmosphere can be provided,
e.g. by an air-conditioner or, by a water-cooler. This leads to the evaluation of
alternatives and a cost benefit-analysis is made to decide which product and brand
image will be suitable, and can take care of the problem suitably and adequately.
Thereafter the purchase is made and the product is used by the consumer. The
constant use of the product leads to the satisfaction or dissatisfaction of the
consumer, which leads to repeat purchases, or to the rejection of the product. The
marketing strategy is successful if consumers can see a need which a companys
product can solve and, offers the best solution to the problem. For a successful
strategy, the marketer must lay emphasis on the product/brand image in the
consumers mind. Position the product according to the customers. likes and
dislikes. The brand which matches the desired image of a target market sells well.

Sales are important and sales are likely to occur if the initial consumer analysis
was correct and matches the consumer decision process. Satisfaction of the
consumer, after the sales have been effected, is important for repeat purchase. It is
more profitable to retain existing customers, rather than looking for new ones.

42 | P a g e
43 | P a g e
 4. CUSTOMER SATISFACTION
It is a well known fact that no business can exist without customers. In the business
of website design, it is important to work closely with your customers to make sure
the site or system you create for them is as close to their requirements as you can
manage. Because it is difficult that you form a close working relationship with
your client, customer service is of vital importance. What follows are a selection of
tips that will make your clients feel valued, wanted and loved.

1. Encourage face-to-face dealings:

This is the most important daunting and downright scary part of interacting with a
customer. If you are not used to this sort of thing, it can be very nerve-wrecking
experience. Rest assured, though, it does get easier over time. It is important to
meet your customers face-to-face at least once or even twice during the course of
project.

My experience has shown that a client finds it easier to relate to and work with
someone they have actually met in person, rather than a voice on phone or
someone typing into an email or messenger program. When you meet them, be
calm, confident and above all, take time to ask them what they need. I believe if a
potential client spends over half the meeting doing talking, you are well on your
way to a sale.

2. Respond to messages promptly and keep your client informed:

This goes without saying really. We know how annoying it is to wait days for a
response to an email or phone call. It might not always be practical to deal with all
customers.. queries within the space of a few hours, but at least email or call them
back and let them know you have received their message and you will contact
them about it as soon as possible. Even if you are not able to solve a problem right
away, let the customer know you are working on it.

3. Be friendly and approachable:

A fellow site pointer once told me that you can hear a smile through the phone.
This is very true. It is very important to be friendly, courteous, and to make your
clients feel like you are their friend and you are there to help them out. There will

44 | P a g e
be times when you want to beat your clients over the head repeatedly with a blunt
object- it happens to all of us. It is vital that you keep a clear head, respond to your
clients. wishes as best as you can, and at all times remain polite and courteous.

4. Have a clearly defined customer service policy:

This may not be too important when you are just starting out, but a clearly defined
customer service policy is going to save you a lot of time and effort in the long run.
If a customer has a problem, what should they do? If the first option doesnt work,
then what? Should they contact different people for billing and technical enquiries?
If they are not satisfied with any aspect of your customer service, who should they
tell?

There is nothing more annoying for a client than being passed from one person to
another, or not knowing who to turn to. Making sure they know exactly what to do
at each stage of their enquiry should be of utmost importance. So make sure your
customer service policy is present on your site or anywhere else where it may be
useful.

5. Attention to detail:

Have you ever received a happy birthday email or card from a company you were a
client of? Have you ever had a personalized sign up confirmation email for a
service that you could tell was typed from scratch? These little niceties can be time
consuming and arent always cost effective, but remember to do them. It makes the
customer feel welcomed and wanted.

6. Anticipate your clients needs and go out of your way to help them out:

Sometimes it is easier said than done! However, achieving this supreme level of
understanding with your clients will do wonders for your working relationship.

7. Honour your promises:

When you promise something deliver it. Clients do not like to be disappointed.
Sometimes something might not get done or you might miss a deadline through no
fault of your own. Projects can be late, technology can fail, and sub-contractors

45 | P a g e
dont always deliver on time. In this case a quick apology and assurance that it will
be ready as soon as possible wouldnt go a miss.

5. MARKETING RESEARCH
It is "the function that links the consumers, customers, and public to the marketer
through information information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these
issues, designs the method for collecting information, manages and implements the
data collection process, analyzes the results, and communicates the findings and
their implications." Marketing research is the systematic gathering, recording, and
analysis of data about issues relating to marketing products and services. The goal
of marketing research is to identify and assess how changing elements of the
marketing mix impacts customer behavior. The term is commonly interchanged
with market research; however, expert practitioners may wish to draw a distinction,
in that market research is concerned specifically with markets, while marketing
research is concerned specifically about marketing processes.

Marketing research is often partitioned into two sets of categorical pairs, either by
target market:

Consumer marketing research, and

Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

Qualitative marketing research, and

Quantitative marketing research

Consumer marketing research is a form of applied sociology that concentrates on

understanding the preferences, attitudes, and behaviors of consumers in a market-
based economy, and it aims to understand the effects and comparative success of
marketing campaigns. The field of consumer marketing research as a statistical
science was pioneered by Arthur Nielsen with the founding of the ACNielsen
Company in 1923.

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 6. FACTOR ANALYSIS
Factor analysis is a technique that is used to reduce a large number of variables
into fewer numbers of factors. Factor analysis extracts maximum common variance
from all variables and puts them into a common score. As an index of all variables,
we can use this score for further analysis.

Factor analysis is a statistical method used to describe variability among observed

variables in terms of fewer unobserved variables called factors. The observed
variables are modelled as linear combinations of the factors, plus "error" terms.
The information gained about the interdependencies can be used later to reduce the
set of variables in a dataset

In marketing research problems normally involve several variables, for example

the demand of a television set may depend not only on the price but also on income
of households, advertising expenditure and other similar factors. Such problems
require the use of multivariate techniques. Apart from multiple regression there are
several method used in multivariate analysis.

Factor analysis is used to uncover the latent structure (dimensions) of a set of

variables. It reduces attribute space from a larger number of variables to a smaller
number of factors and as such is a "non-dependent" procedure (that is, it does not
assume a dependent variable is specified). Factor analysis could be used for any of
the following purposes:

1. To reduce a large number of variables to a smaller number of factors for

modeling purposes, where the large number of variables precludes modeling
all the measures individually. As such, factor analysis is integrated in
structural equation modeling (SEM), helping create the latent variables
modeled by SEM. However, factor analysis can be and is often used on a
stand-alone basis for similar purposes.
2. To select a subset of variables from a larger set, based on which original
variables have the highest correlations with the principal component factors.
3. To create a set of factors to be treated as uncorrelated variables as one
approach to handling multicollinearity in such procedures as multiple
regression.

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 4. To validate a scale or index by demonstrating that its constituent items load
on the same factor, and to drop proposed scale items which cross-load on
more than one factor.
5. To establish that multiple tests measure the same factor, thereby giving
justification for administering fewer tests.
6. To identify clusters of cases and/or outliers.
7. To determine network groups by determining which sets of people cluster
together (using Q-mode factor analysis, discussed below)
Factor analysis is part of the multiple general linear hypothesis (MLGH) family of
procedures and makes many of the same assumptions as multiple regression: linear
relationships, interval or near-interval data, untruncated variables, proper
specification (relevant variables included, extraneous ones excluded), lack of high
multicollinearity, and multivariate normality for purposes of significance testing.
Factor analysis generates a table in which the rows are the observed raw indicator
variables and the columns are the factors or latent variables which explain as much
of the variance in these variables as possible. The cells in this table are factor
loadings, and the meaning of the factors must be induced from seeing which
variables are most heavily loaded on which factors. This inferential labeling
process can be fraught with difficulty as diverse researchers impute different
labels.

There are several different types of factor analysis, with the most common being
principal components analysis (PCA). However, principal axis factoring (PAF),
also called common factor analysis, is preferred for purposes of confirmatory
factory analysis in structural equation modeling.

TYPES OF FACTOR ANALYSIS

1. Exploratory factor analysis (EFA) seeks to uncover the underlying

structure of a relatively large set of variables. The researcher's priori
assumption is that any indicator may be associated with any factor.
This is the most common form of factor analysis. There is no prior
theory and one uses factor loadings to intuit the factor structure of the
data.

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 2. Confirmatory factor analysis (CFA) seeks to determine if the
number of factors and the loadings of measured (indicator) variables
on them conform to what is expected on the basis of pre-established
theory. Indicator variables are selected on the basis of prior theory and
factor analysis is used to see if they load as predicted on the expected
number of factors. The researcher's priori assumption is that each
factor (the number and labels of which may be specified priori ) is
associated with a specified subset of indicator variables. A minimum
requirement of confirmatory factor analysis is that one hypothesize
beforehand the number of factors in the model, but usually also
expectations about which variables will load on which factors (Kim
and Mueller, 1978b: 55). The researcher seeks to determine, for
instance, if measures created to represent a latent variable really
belong together.

KEY CONCEPTS

1. Factors and components: Both are the dimensions (or latent variables)
identified with clusters of variables, as computed using factor analysis.
Technically speaking, factors (as from PFA -- principal factor analysis,
a.k.a. principal axis factoring, a.k.a. common factor analysis) represent the
common variance of variables, excluding unique variance, and is thus a
correlation-focused approach seeking to reproduce the intercorrelation
among the variables. By comparison, components (from PCA - principal
components analysis) reflect both common and unique variance of the
variables and may be seen as a variance-focused approach seeking to
reproduce both the total variable variance with all components and to
reproduce the correlations. PCA is far more common than PFA, however,
and it is common to use "factors" interchangeably with "components."

2. Factor loadings: The factor loadings, also called component loadings in

PCA, are the correlation coefficients between the variables (rows) and
factors (columns). Analogous to Pearson's r, the squared factor loading is
the percent of variance in that variable explained by the factor. To get the
percent of variance in all the variables accounted for by each factor, add the

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 sum of the squared factor loadings for that factor (column) and divide by the
number of variables. (Note the number of variables equals the sum of their
variances as the variance of a standardized variable is 1.) This is the same as
dividing the factor's eigen value by the number of variables. In SPSS, the
factor loadings are found in a matrix labelled Factor Matrix if PFA is
requested, or in one labelled Component Matrix if PCA is requested, or one
labelled Pattern Matrix if an oblique rotation is requested.
The sum of the squared factor loadings for all factors for a given variable
(row) is the variance in that variable accounted for by all the factors, and this
is called the communality. In a complete PCA, with no factors dropped, this
will be 1.0, or 100% of the variance. The ratio of the squared factor loadings
for a given variable (row in the factor matrix) shows the relative importance
of the different factors in explaining the variance of the given variable.
Factor loadings are the basis for imputing a label to the different factors

3. Communality, h2, is the squared multiple correlation for the variable using
the factors as predictors. The communality measures the percent of variance
in a given variable explained by all the factors jointly and may be
interpreted as the reliability of the indicator.
When an indicator variable has a low communality, the factor model is not
working well for that indicator and possibly it should be removed from the
model. However, communalities must be interpreted in relation to the
interpretability of the factors. A communality of .75 seems high but is
meaningless unless the factor on which the variable is loaded is
interpretable, though it usually will be. A communality of .25 seems low but
may be meaningful if the item is contributing to a well-defined factor. That
is, what is critical is not the communality coefficient per se, but rather the
extent to which the item plays a role in the interpretation of the factor,
though often this role is greater when communality is high. Communality for
a variable is computed as the sum of squared factor loadings for that variable
(row). Recall r-squared is the percent of variance explained, and since
factors are uncorrelated, the squared loadings may be added to get the total
percent explained, which is what communality is. For full orthogonal PCA,
the communality will be 1.0 for all variables and all of the variance in the
variables will be explained by all of the factors, which will be as many as

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 there are variables. In the communalities chart, SPSS labels this column the
"initial" communalities. The "extracted" communality is the percent of
variance in a given variable explained by the factors which are extracted,
which will usually be fewer than all the possible factors, resulting in
coefficients less than 1.0. For PFA, however, the communalities for the
various factors will be less than 1 even initially. Communality does not
change when rotation is carried out, hence in SPSS there is only one
communalities table.

4. Eigen Values: Also called characteristic roots . The eigenvalue for a given
factor measures the variance in all the variables which is accounted for by
that factor. The ratio of eigenvalues is the ratio of explanatory importance of
the factors with respect to the variables. If a factor has a low eigenvalue,
then it is contributing little to the explanation of variances in the variables
and may be ignored as redundant with more important factors. Thus,
eigenvalues measure the amount of variation in the total sample accounted
for by each factor. Note that the eigenvalue is not the percent of variance
explained but rather a measure of "amount," used for comparison with other
eigenvalues. A factor's eigenvalue may be computed as the sum of its
squared factor loadings for all the variables. Note that the eigenvalues
associated with the unrotated and rotated solution will differ, though their
total will be the same.

5. Trace :is the sum of variances for all factors, which is equal to the
number of variables since the variance of a standardized variable is 1.0. A
factor's eigenvalue divided by the trace is the percent of variance it explains
in all the variables, usually labeled percent of trace in computer output.
Computer output usually lists the factors in descending order of eigenvalue,
along with a cumulative percent of trace for as many factors as are
extracted.

6. Factor scores: Also called component scores in PCA, factor scores are the
scores of each case (row) on each factor (column). To compute the factor
score for a given case for a given factor, one takes the case's standardized
score on each variable, multiplies by the corresponding factor loading of the

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 variable for the given factor, and sums these products. The SPSS FACTOR
procedure saves standardized factor scores as variables in your working data
file. By default it will name them FAC1_1,FAC2_1, FAC3_1, etc., for the
corresponding factors (factor 1, 2 and 3) of analysis 1; and FAC1_2,
FAC2_2, FAC3_2 for a second set of factor scores, if any, within the same
procedure, and so on. Although SPSS adds these variables to the right of
your working data set automatically, they will be lost when you close the
dataset unless you re-save your data. Criteria for determining the number of
factors, roughly in the order of frequency of use in social science.

7. Kaiser criterion: A common rule of thumb for dropping the least important
factors from the analysis. The Kaiser rule is to drop all components with
eigen Values under 1.0. Kaiser criterion is the default in most computer
programs.

8. Scree plot: The Cattell scree test plots the components as the X axis and the
corresponding eigenvalues as the Y axis. As one moves to the right, toward
later components, the eigenvalues drop. When the drop ceases and the curve
makes an elbow toward less steep decline, Cattell's scree test says to drop
all further components after the one starting the elbow. Scree plot example

9. Variance explained criteria: Some researchers simply use the rule of

keeping enough factors to account for 90% (sometimes 80%) of the
variation.

10.Rotation Methods: Rotation serves to make the output more

understandable and is usually necessary to facilitate the interpretation of
factors. The sum of eigen values is not affected by rotation, but rotation will
alter the eigen values of particular factors. No rotation is the default in
SPSS, but it is a good idea to select a rotation method, usually varimax. The
original, un-rotated principal components solution maximizes the sum of
squared factor loadings, efficiently creating a set of factors which explain as
much of the variance in the original variables as possible. The amount
explained is reflected in the sum of the eigen values of all factors. However,

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 un-rotated solutions are hard to interpret because variables tend to load on
multiple factors.

11.Varimax rotation: is an orthogonal rotation of the factor axes to maximize

the variance of the squared loadings of a factor (column) on all the variables
(rows) in a factor matrix, which has the effect of differentiating the original
variables by extracted factor. That is, it minimizes the number of variables
which have high loadings on any one given factor. Each factor will tend to
have either large or small loadings of particular variables on it. A varimax
solution yields results which make it as easy as possible to identify each
variable with a single factor. This is the most common rotation option.

12.Quartimax rotation: is an orthogonal alternative which minimizes the

number of factors needed to explain each variable.

13.Equimax rotation: is a compromise between Varimax and Quartimax

criteria.

14.Direct oblimin rotation: is the standard method when one wishes a non-
orthogonal solution -- that is, one in which the factors are allowed to be
correlated. This will result in higher eigenvalues but diminished
interpretability of the factors. See below.

15.Promax rotation is an alternative non-orthogonal rotation method which is

computationally faster than the direct oblimin method and therefore is
sometimes used for very large datasets.

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 CHAPTER 4
1. NEED FOR THE STUDY
This study helps the company to identify its competitive position among its
industrial competitors by which the company can further improve its performance
to enjoy high reputation among clients.

This study also helps in making necessary changes in the attributes of the insurance
cover offered by the company so that the customers can enjoy the benefits of the
insurance cover. The need for the study also arises to identify and offer additional
insurance products according to the expectations of the customers.

The buying decision of a buyer is influenced by an economic decision and

expectation. He expects best performance maximum durability and more
dependability from a product or service. The decision making is a process whereby
a buyer decides to purchase a particular product out of various available
alternatives depending upon his ability to purchase and willingness to purchase.
This process of selection and final selection is known as buying decision making

We concentrated on the population of Delhi. From the target population of Delhi a

sample of 245 was taken. All the necessary data was collected from the selected
sample using questionnaires. Our target population were the elder people.

From the study, it is found that there are many factors which influence the
consumer buying decision of goods. They include security, ambience, availability
of the product, brand name, advertisement of the company. From the survey it is
also found that the previous experience on the product will influence the buying
decision.

The study was performed with the help of a sample survey technique.

The steps of the performing the study in brief are:

1. Problem definition
2. Development of an approach to the problem
3. Research Design Formulation
4. Fieldwork or Data collection

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 5. Data Preparation and analysis
6. Report Preparation and Presentation

2. OBJECTIVES OF THE STUDY

To study the brand awareness of OM Kotak Mahindra life insurance in
North Delhi.

To focus on the customer perception of Private Life Insurance.

To ascertain the Market Potential for the OM Kotak Mahindra life insurance
co. in North Delhi.

To understand the market trend of the Private Life Insurance

To bring out the investors preference towards the various investment

avenues.

To find out the strengths and weaknesses of the companys insurance

schemes.

To compare the performance of OM Kotak Mahindra. with other

competitors in the life insurance industry.

Factor Analysis: Factorization of parameters that have been collected from

different profession persons with the help of a questionnaire using computer
based software SPSS.
Suggestions and Recommendations to the company on the basis of analysis
done and consumers surveyed.

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SCOPE OF THE STUDY
This study has a wider scope among the insurance sector. The study which focuses
on various aspects such as competitive position of OM Kotak Mahindras,
strengths and weaknesses of insurance covers, customers perception, etc also
holds good for other companies in the life and non-life insurance segment.

The outcome of the study, which are based on the above aspects can be utilized by
the marketing department of both life and non-life insurance companies.

Limitations of the Study

Any research study will be restricted in scope by certain inherent limitations that
are participated by the choice of the research design, sampling procedure and
respondent selection. This study has the following limitations.

Even though the market survey was conducted in different places of North
Delhi but it may not reflect the real opinions of the investors.
There was a language problem between the researcher(Questionnaire) and
the respondents.
Because of time constraints, the sample size is restricted to 206, which may
not reflect the original market.
Since the market study was restricted to North Delhi city, majority of
findings are applicable only to the city and cannot be generalized.
The samples may behave or give opinions differently at different times
because of their psychological temperament. This will affect the survey.
Some of the respondents were reluctant to give their responses.

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 CHAPTER 5
RESEARCH METHODOLOGY
Fundamental to the success of any formal marketing research project is a
sound research design. A good research design has the characteristics, viz.,
problem definition, specific methods of data collection and analysis, time required
for research project, and estimate of expenses to be incurred. The function of a
research design is to ensure that the required data are collected and they are
collected accurately and economically.

A research design is purely and simply the framework or plan for a study
that guides the collection and analysis of data. It is a blueprint that is followed in
completing a study. It resembles the architects blueprint (map) for constructing a
house. It may be worthwhile to mention here that a research design is nothing more
than the framework for the study ensures that: (1) the study will be relevant to the
problem, and (2) the study will employ economical procedures.

1. Research design
It is the plan, structure to answer whom, when, where and how the subject is
under investigation. Here plan is an outline of the research scheme & which the
researcher has to work. The structure of the research is a more specific outline and
the strategy out, specifying the methods to be used in the connection & analysis of
the data.

Three important points about research designs are:

(1) The design of investigation should stem from the problem;

(2) Whether the designs are productive in a given problem setting depends on
how imaginatively they are applied. An understanding of the basic designs is
needed so that they can be modified to suit purposes; and

(3) The three basic designs can be looked at as stages in the continuous process.
Exploratory or formulate studies are often seen as the initial step in the
continuous research process. It is shown here that these three research
designs are not mutually exclusive and a combination of all the three could

57 | P a g e
 be used in the successful completion of a marketing research project. We
start with the exploratory and go to causal through the descriptive design.
Alternatively, we can select any of these research designs and take the help
of the other two designs if the problem in question needs.
Exploratory Research Design
All marketing research projects must start with exploratory design. this is a
preliminary phase and is absolutely essential in order to obtain a proper definition
of problem at hand. The major emphasis is on the discovery of ideas and insights.
For example, a soft drinks firm might conduct an exploratory study to generate
possible explanations. The exploratory study is particularly helpful in breaking
broad and vague problem into smaller, more precise sub-problem statements,
hopefully, in the form of specific hypotheses. In a nutshell, we can say that
exploratory studies help in formulating hypotheses for the further research.

In sum, an exploratory design is used for any or all of the following purposes:

1. Formulating a problem for more precise investigation or for developing

hypotheses;

2. Establishing priorities for further research;

3. Gathering information about the practical problems for carrying out research
on particular conjectural statements;

4. Increasing the analysts familiarity with the problem; and

5. Clarifying the concepts.

In the following text, we take up for detailed discussion each method of

exploratory study:

1. Literature Surveys

One of the most economical and quickest ways to discover hypotheses is the
work of others, through a literature search. For this purpose, a large volume of
published data are pose, a large volume of published and unpublished data are

58 | P a g e
available which can be scanned in a relatively small period of time. More useful
sources of such information are books, newspapers, government documents, trade
journals, professional journals, and so on. These are available in libraries: company
records such as those kept for accounting and sales analysis purposes: reports of
those kept for accounting and sales analysis purposes: reports of previous research
projects conducted: and data collected by trade associations related to the area of
interest.

For example, problem for research in particular soft Drinks Company may be sales
are off, why? For solving it, secondary data from the above sources can be
analysed. These data may not be sufficient to solve the problem completely but
will be of great help to provide a direction to further research.

2. Experience Surveys

Individually with expertise, knowledge, and ideas about research subject

may be questioned. Such people include top executives, sales managers, other
relevant people of the company in question and companies making similar product:
salesman, wholesalers, retailers who handle the product or related products; and
consumers who have used product of the type in question or have had an occasion
to need such a product. This process does not include a scientifically conducted
statistical survey. Rather, it reflects an attempt to get all available information from
the people who have some particular knowledge of subject under investigation.

3. Analysis of Selected Cases

Usual pattern for exploratory research is the arbitrary selection of few

extreme examples and thorough analysis of these. In some instances, detailed and
intensive case analysis of a few selected individuals or organizations may
particularly be helpful in gaining ideas about possible relationships. Case studies
are characterized by intensive study. Emphasis is placed on understanding the
subject of investigation as a whole. A case study is regarded as a microscopic view
of a companys problem from its historical and social perspective. For example, if
the research goal is to determine the reason for varying sales productivity, the firm
may wish to examine case histories of several of its best and worst sales people.
The research goal in this case would be to determine if, for example, there were

59 | P a g e
significant educational or age variations between highly productive and highly
unproductive sales personnel.

In India, most of the researches such as market surveys to know the brand
preferences, attitudinal studies of consumers, buyers behavior, market or sales
potential, consumer awareness, etc., are of exploratory nature. Such projects are
sponsored by big companies such as Hindustan lever. Proctor & Gamble, Lakme,
Ponds, etc.

Descriptive Research Design

Descriptive research design is also called explanatory design. This is the one
that simply describes something such as demographic characteristics of consumers
who use the product. The descriptive study is typically concerned with determining
frequency with which something occurs or how two variables vary together. This
study is typically guided by an initial hypothesis. For example, an investigation of
the trends in consumption of soft drinks with respect to socio-economic
characteristics such as age, sex, ethnic group, occupation, family income,
educational level, geographic location, and so on: would be covered under a
descriptive study.

Data Collection

The main source of information for this study is based on the data collection. Data
collected are both primary and secondary in nature.

Primary Data

Primary data have been directly collected from the clients of Om Kotak as well
from the clients of other insurance companies by survey method through
undisguised structured questionnaire.

Questions like open ended, close ended, multiple choice, dichotomous and ranking
type have been used for the purpose of data collection.

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 Secondary Data

Secondary data have been collected from official website of Om Kotak and also
from other official websites related to general insurance industry

TYPES OF QUESTIONS

Open ended question

Open ended question are the type of question used to get suggestion from the
respondent in order to give feed back to the organization.

Close ended question

Close ended question are the type of questions with a clear declined set of
alternatives that confine the respondents to choose one of them.

Multiple choice question

It consists of multiple choices in which the respondents can choose more than one

Likert scale

It uses 5 point or 7 point scale to elicit respondents favor or un favor towards an

object.

Dichotomous question

It consists of two choices of answers in which the respondent has to choose one of
them.

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 Ranking

In ranking, questions will have the ranking skill, which the respondents are free to
rank them according to their preference.

SAMPLING

Convenience sampling is been used in the study. This type of sampling is basically
used when you simply stop anybody in the street who is prepared to stop, or when
you wander round a business, a shop, a restaurant, a theatre or whatever, asking
people you meet whether they will answer your questions. In other words, the
sample comprises subjects who are simply available in a convenient way to the
researcher. There is no randomness and the likelihood of bias is high. You can't
draw any meaningful conclusions from the results you obtain.

However, this method is often the only feasible one, particularly for students or
others with restricted time and resources, and can legitimately be used provided its
limitations are clearly understood and stated.

SAMPLE SIZE

Sample size is the total number of samples selected for the study from the
sampling population. Sample size for the study was arrived at 245 by using the
formula:

2 . (1 )
=
2
Taking z = 1.96, p=.20 and e=0.5 so n = 245

NOTE:- Market share of Om kotak Mahindra is too small that is .0064 so sample
size was decided on the basis of Pilot survey.

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METHODS / TOOLS OF ANALYSIS

Tools used for analysis are:

Chi-square test

Interval estimation

Karl Pearsons coefficient of correlation

Percentage

1. CHI-SQUARE TEST

There may be situation in which it is not possible to make any rigid assumption
about distribution of the population from which samples being drawn. This
limitation has led to the development of a group of alternative techniques known as
non-parametric tests. Chi-square describes the magnitude of the discrepancy
between theory and observation.




=

=
with (n-1) degree of freedom

2. WEIGHTED AVERAGE METHOD

This method is widely used in finding the weightage given to different attributed
by respondents. The respondents assign different weightage to the different ranking
and weighted average percentage is found and graphs are plotted.
( . )
=

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3. INTERVAL ESTIMATION METHOD

An estimation of a population parameter given by 2 numbers between when the

parameter may be considered to lie is called interval estimation of the parameter.

p = sample proportion of success

q = sample proportion of failure

z = standard variance of the confidence level

n = no. of sample size

4. KARL PEARSONS COEFFICIENT OF CORRELATION

Correlation analysis helps us in determining the degree of relationship between 2

or more variables. The value of the coefficient of correlation as obtained by the
below formula shall always lie between +1 and -1. When r = +1, it means there is
perfect positive correlation between the variables. When r = -1, there is perfect
negative correlation between the variables and when r = 0, there is no relationship
between the two variables.

=
.

x = (X - X) ; y = (Y - Y)

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Data Compilation and Analysis:

After the data was collected with the help of questionnaires we tabulated the data.
Of all the data collected from the survey the relevant information was collected and
based on relevant data analysis was done.

All the analysis done with help of statistical tools such as hypothesis testing are
discussed under statistics section Based on the analysis, we found out about
relevant problems and solutions for the marketing strategy of the company. Based
on the findings relevant suggestions proposed through the study.

Report and Presentation:

All aspects of the research were collated together and put forth to the upper
management as a report and presentation of the company for their further
consideration.

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METHODOLOGY OF DATA COLLECTION AT A GLANCE

The methodology adopted for collecting data and sample design is given below:

COLLECTION OF DATA
For collecting Primary Data, a questionnaire was designed. This
questionnaire was administered to both males and females of different
age groups.

RANDOM SAMPLING DESIGN

SAMPLE SIZE : 245

SURVEY AREA : NORTH DELHI

MODE OF SURVEY: PERSONALISED INTERVIEWS

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 CHAPTER 6
Table showing occupation of the respondent
Table 6.1

What is your
Occupation
occupation?
Business 91
Professional 50
Salaried Person 72
Others 32
Total 245

Graph 6.1

What is your occupation?

245

91 72
50 32

Business Professional Salaried Person Others Total

Interpretation: The above table indicates that out of 245 samples, 37%
respondents are business people, 20% are professionals, 30 % are salaried people,
and 13% respondents are related to other professional.

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Table showing income level of the respondent
Table 6.2

Income What is your family

level(Yearly) income?
50000-300000 31
3 lakh-5 lakh 80
5 lakh- 8 lakh 63
8 lakh- 15 lakh 33
15 lakh- 20 lakh 38
Total 245

Graph 6.2

What is your family income?

245

80 63
31 33 38

Interpretation: The above table indicates that out of 245 samples, 12%
respondents are earning 50000-300000,32% respondents are earning 3-5 lakh,26%
respondents are earning 5-8 lakh, 13% are earning 15-20 lakh, more than 15 lakh
earn by the 17% of the respondents.

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Table showing Age group of the respondents
Table 6.3

Age What is your age?

20-30 29
30-40 88
40-50 93
Above
35
50
Total 245

Graph 6.3

What is your age?

245

88 93
29 35

20-30 30-40 40-50 Above 50 Total

Interpretation: The above table indicates that out of 245 samples, 12%
respondents are age group between 20-30, 36% respondents are age group
between30-40, 38% respondents are age group between40-50, 14% respondents
are age falling under 50 & above.

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Table showing respondents awareness among companies
Table 6.4

Which of the following

Brand
company/companies are you
names
aware of?
LIC 203
ICICI pru. 178
HDFC life 143
SBI life 119
Max New
135
York life
Om kotak 122

Graph 6.4

Which of the following

company/companies are you aware
of?

203 178
143 119 135 122

LIC ICICI pru. HDFC life SBI life Max New Om kotak
York life

Interpretation: The above table indicates that out of 245 samples,203 were aware
of LIC, 178 were aware of ICICI, 143 were aware of HDFC, 119 were aware of
SBI, 135 were aware of MAX and 122 were aware of Om kotak Mahindra.

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Table showing either policy holder or not
Table 6.5

Response Do you have any policy issued by

any company?
Yes 206
No 39

Graph 6.5

Do you have any policy issued by any

company?

No
16%

Yes
84%

Interpretation: Graph implies that out of 245 samples, 84% of the respondent
were having Policy that is majority of the people were having policy.

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Table showing time period for which the policy is taken
Table 6.6
What is the period of
Period Insurance cover held
by you ?
Annual Policy 84
1-5 years 50
5-10 years 42
10-15 years 23
More than 15
7
years
Total 206

What is the period of Insurance cover

held by you ?

206

84
50 42 23 7
Annual Policy 1-5 years 5-10 years 10-15 years More then 15 Total
years

Interpretation: Above table indicates that out of 206 respondents 40% have
annual policy, 25% have 1-5 yr period cover, 21% have 5-10 yr period cover, 11%
have 10-15 yr cover and rest 3% have period cover of more than 15 yrs.

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Table showing yearly paid premium
Table 6.7

What is the amount of

Premium paid yearly Paid Premium
by you?
Less than 5000 72
5000-15000 98
15000-25000 20
More than 25000 16
Total 206

Graph 6.7

What is the amount of yearly Paid

Premium by you?

206

98
72
20 16
Less then 5000 5000-15000 15000-25000 More then Total
25000

Interpretation: The above table shows that 35% of respondents have been paying
insurance premium less than Rs.5000 yearly, 47% of them have been paying
premium between Rs.5000-15000 yearly, 10% of them have been paying between
Rs.15000-25000 as yearly premium and 8% of them have been paying more than
Rs.25000 as yearly premium.

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APPLYING KARL PEARSONS CORRELATION COEFFICIENT BY
COMPARING ANNUAL INCOME AND THE YEARLY PREMIUM
AMOUNT PAID

Income What is your family

level(Yearly) income?
50000-300000 31
3 lakh-5 lakh 78
5 lakh- 8 lakh 50
8 lakh- 15 lakh 18
15 lakh- 20 lakh 29
Total 206

What is the amount of

Premium paid
yearly Paid Premium?
Less than 5000 72
5000-15000 98
15000-25000 20
More than 25000 16
Total 206

Premium paid Annual income

(X) (Y)
72 31
98 78
20 50
16 18
0 29

74 | P a g e
X(Premium) x x2 Y(Income) y y2 xy
72 20.5 420.25 31 -10.2 104.04 -209.1
98 46.5 2162.25 78 36.8 2162.25 1711.2
20 -31.5 992.25 50 8.8 77.44 -277.2
16 -35.5 1260.25 18 -23.2 538.24 823.6
0 -51.5 2652.25 29 -12.2 148.84 628.3
X = 206 x2= Y= 206 y2= xy =
7487.25 3030.81 2676.8

Using the formula:

x = (X - X) ; y = (Y - Y)

.
= = .
. .

Conclusion: The variables annual income and premium amount paid are
positively correlated. Hence, the annual income has an impact on the premium
amount paid.

75 | P a g e
Table showing comment on yearly paid premium
Table 6.8

Comment on yearly paid

Comment
premium by you.
Very high 7
High 24
Moderate 103
Low 53
Very low 19
Total 206

Graph 6.8

Comment on yearly paid premium by

you.

206

103
53
7 24 19

Very high High Moderate Low Very low Total

Interpretation: Above graph implies that only 3% of the respondent said that
premium paid by them was Very high also 12% said it was high, 50% said it was
moderate, 26% said it was Low and rest sait it was very low.

76 | P a g e
 CHI SQUARE TEST
Assumption
The chi-squared test, when used with the standard approximation that a chi-
squared distribution is applicable, has the following assumptions

1. Simple random sample The sample data is a random sampling from a fixed
distribution or population where each member of the population has an equal
probability of selection. Variants of the test have been developed for
complex samples, such as where the data is weighted.
2. Sample size (whole table) A sample with a sufficiently large size is
assumed. If a chi squared test is conducted on a sample with a smaller size,
then the chi squared test will yield an inaccurate inference. The researcher,
by using chi squared test on small samples, might end up committing a Type
II error.
3. Expected cell count Adequate expected cell counts. Some require 5 or
more, and others require 10 or more. A common rule is 5 or more in all cells
of a 2-by-2 table, and 5 or more in 80% of cells in larger tables, but no cells
with zero expected count. When this assumption is not met, Yates's
Correction is applied.
Yatess correlation:- To reduce the error in approximation, Frank Yates,
an English statistician, suggested a correction for continuity that adjusts the
formula for Pearson's chi-squared test by subtracting 0.5 from the difference
between each observed value and its expected value in a 2 2 contingency
table. This reduces the chi-squared value obtained and thus increases its p-value.

77 | P a g e
APPLYING CHI-SQAURE TEST BY COMPARING THE PERIOD OF
LIFE INSURANCE COVER AND THE PREMIUM RANG+E

Period of insurance cover Premium range

Very high High Reasonable Low Very low Total

Annual policy 5 13 47 16 3 84
1-5 yr 2 7 29 12 0 50
5-10 yr 0 4 13 20 5 42
10-15 yr 0 0 12 2 9 23
>15 yr 0 0 2 3 2 7
Total 7 24 103 53 19 206

Ho: There is no significant difference between premium and period of life

insurance policy

H1: There is a significant difference between premium and period of life

insurance policy
Table of expected frequency:

2.85 9.78 42 21.61 7.74

1.69 5.82 25 12.86 4.61
1.42 4.89 21 10.80 3.87
.78 2.67 11.5 5.91 2.12
.23 .81 3.5 1.80 .64

78 | P a g e

Formula: = =

Oi Ei (Oi-Ei)2 [Oi-Ei]2/Ei

5 2.85 4.62 1.62

13 9.78 10.36 1.05
47 42 25 .59
16 21.61 31.47 1.45
3 7.74 22.46 2.90
2 1.69 .096 .05
7 5.82 1.39 .23
29 25 16 .64
12 12.86 .73 .056
0 4.61 21.25 4.60
0 1.42 2.01 1.41
4 4.89 .79 .61
13 21 64 3.04
20 10.80 84.64 7.83
5 3.87 1.27 .32
0 .78 .60 .76
0 2.67 7.12 2.66
12 11.5 .25 .021
2 5.91 15.28 2.58
9 2.12 47.33 22.32
0 .23 .05 .22
0 .81 .65 .80
2 3.5 2.25 .64
3 1.80 1.44 .8
2 .64 1.84 2.875
Total 60.072

79 | P a g e
cal = 60.072

0.05 with (n-1) (n-1) = (5-1) (5-1) = 16

0.05 with 16 d.f = 26.3

cal >0.05

Hence, we reject h0

Conclusion:

We conclude that there is a significant difference between premium and period of

life insurance policy.

BUT The above conclusion cannot be made with certainty as the

assumptions are being violated by the expected frequencies. Not all
cells have expected frequency greater than 5 , which is a
requirement for the test.

80 | P a g e
Table showing satisfaction level of respondent
Table 6.9

satisfactory How would you rate your

level satisfaction level?
Highly satisfied 20
Satisfied 72
Neither satisfied
53
nor dissatisfied
Dissatisfied 47
Highly diss. 14
Total 206

Graph 6.9

How would you rate your satisfaction

level?

206

72 53 47
20 14
Highly Satisfied Neither Dissatisfied Highly diss. Total
satisfied satisfied nor
dissatisfied

Interpretation: Graph implies that 10% of the respondent who were policy holder
were highly satisfied, 35% were satisfied, 26% were neither satisfied nor
dissatisfied ,23% were dissatisfied and rest of them were highly dissatisfied.

81 | P a g e
82 | P a g e
APPLYING CHI-SQUARE TEST BY COMPARING SATISFACTORY
LEVEL TOWARD INSURANCE POLICY TAKEN AND THE YEARLY
PREMIUM PAID

Satisfactory level towards life insurance policy

Premium amount Satisfactory Neither satisfactory nor dissatisfactory Dissatisfactory Total
Less than Rs.5000 26 24 22 72
Rs.5000-15000 47 22 29 98
More than Rs.15000 19 7 10 36
Total 92 53 47 206

Ho: There is no significant difference between yearly premium paid and

satisfactory level towards life insurance policy taken

H1: There is a significant difference between yearly premium paid and

satisfactory level towards life insurance policy taken

Table of expected frequency:

32.15 18.52 21.32

43.76 25.21 29.01
16.07 9.26 10.66

83 | P a g e

Formula: = =

Oi Ei (Oi-Ei) [Oi-Ei]2/Ei

26 32.15 37.82 1.17

24 18.52 30.03 1.62
22 21.32 0.46 0.021
47 43.76 10.49 0.23
22 25.21 10.30 0.40
29 29.01 .0001 .0000034
19 16.07 8.58 0.53
7 9.26 5.10 0.55
10 10.66 0.43 0.04
Total 4.56

cal = 4.56

0.05 with (n-1) (n-1) = (3-1) (4-1) = 12

0.05 with 6 d.f = 12.592

cal < 0.05

Hence, we accept ho

Conclusion:

We conclude that there is no significant difference between yearly premium paid

and satisfactory level towards life insurance policy taken.

84 | P a g e
FACTOR
ANALYSIS

85 | P a g e
All the consumers who were having a policy issued from any company were asked
viz. Rate the following attributes on a scale of 1 to 5 that influence you to
choose an insurance policy from a company.

1-Not at all important, 2-Least Important, 3-Little Important, 4- Important,

5-Most Important

After the survey SPSS analysis was done and findings are given below:-

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.741
Adequacy.
Bartlett's Test of Approx. Chi-Square 1969.065
Sphericity df 120.000
Sig. .000

Kaiser Meyer Olkin (KMO)

The KMO measure of sampling adequacy is an index used to examine the

appropriateness of factor analysis. High values between (0.5 and 1) indicate factor
analysis is appropriate. Values below 0.5 imply that that factor analysis may not be
appropriate.
In this case which is 0.741, hence above factor analysis is appropriate.

Bartletts Test of Sphericity

Bartletts Test of Sphericity is a test statistic used to examine the hypothesis that
the variables are uncorrelated in the population.

This tests the null hypothesis that the correlation matrix is an identity matrix. An
identity matrix is matrix in which all of the diagonal elements are 1 and all off
diagonal elements are 0. You want to reject this null hypothesis.

86 | P a g e
 Communalities
Initial Extraction
Security 1.000 .774
Risk 1.000 .687
Service 1.000 .536
Repo 1.000 .563
Advertisement 1.000 .637
Word_of_mouth 1.000 .752
Proper_Claim_Settelment 1.000 .547
Easy_Access 1.000 .490
Low_Premium 1.000 .748
Good_Schemes 1.000 .332
Agents 1.000 .814
Product_Comprehensibility 1.000 .393
Stable_Company 1.000 .761
Efficient_Staff 1.000 .628
Assured_Return 1.000 .456
Interest 1.000 .376

Communality:

This is the proportion of each variable's variance that can be explained by the
factors can be defined as the sum of squared and factor loadings for the variables.

The sum of the squared factor loadings for all factors for a given variable (row) is
the variance in that variable accounted for by all the factors, and this is called the
communality. The communality measures the percent of variance in a given
variable explained by all the factors jointly and may be interpreted as the reliability
of the indicator.

87 | P a g e
 Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared
Loadings Loadings
Total % of Cumulative Total % of Cumulative Total % of Cumulative
Variance % Variance % Variance %
1 5.275 32.966 32.966 5.275 32.966 32.966 2.536 15.848 15.848
2 2.342 14.638 47.604 2.342 14.638 47.604 2.467 15.422 31.270
3 1.626 10.164 57.768 1.626 10.164 57.768 2.438 15.240 46.510
4 1.315 8.220 65.988 1.315 8.220 65.988 2.366 14.786 61.296
5 1.213 7.582 73.570 1.213 7.582 73.570 1.964 12.274 73.570
6 .863 5.391 78.961
7 .772 4.828 83.789
8 .577 3.603 87.392
9 .487 3.043 90.434
10 .386 2.414 92.849
11 .326 2.039 94.888
12 .277 1.734 96.622
13 .211 1.319 97.941
14 .160 .999 98.940
15 .096 .598 99.538
16 .074 .462 100.000

Initial Eigen values - Eigen values are the variances of the factors. Because we
conducted our factor analysis on the correlation matrix, the variables are
standardized, which means that the each variable has a variance of 1, and the total
variance is equal to the number of variables used in the analysis, in this case, 16.

Total - This column contains the Eigen values. The first factor will always
account for the most variance (and hence have the highest Eigen value), and the
next factor will account for as much of the left over variance as it can, and so
on. Hence, each successive factor will account for less and less variance.

% of Variance - This column contains the percent of total variance accounted for
by each factor.

88 | P a g e
Cumulative % - This column contains the cumulative percentage of variance
accounted for by the current and all preceding factors. For example, the fifth row
shows a value of 73.57. This means that the first three factors together account for
73.57% of the total variance.

Extraction Sums of Squared Loadings - The number of rows in this panel of the
table correspond to the number of factors retained. The values in this panel of the
table are calculated in the same way as the values in the left panel, except that here
the values are based on the common variance. The values in this panel of the table
will always be lower than the values in the left panel of the table, because they are
based on the common variance, which is always smaller than the total variance.

Rotation Sums of Squared Loadings - The values in this panel of the table
represent the distribution of the variance after the varimax rotation. Varimax
rotation tries to maximize the variance of each of the factors, so the total amount of
variance accounted for is redistributed over the five extracted factors.

The first step in interpreting the output is to look for the factors extracted,
their Eigen values and the cumulative percentage of variance. We see from the
cumulative % column that the 5 factors extracted account for 73.570 % of the
total variance.

89 | P a g e
The Scree plot graphs the Eigen value against the factor number. These values are
given in first two columns of the table immediately above. From the fifth factor
on, you can see that the line is almost flat, meaning the each successive factor is
accounting for smaller and smaller amounts of the total variance.

So we can conclude that there are five factors that have to be extracted from
the original 16 variables.

90 | P a g e
 a
Rotated Component Matrix

Component

1 2 3 4 5

Security .168 .064 .089 .849 .114

Risk .284 .075 .169 .730 .198

Service .693 .090 .087 .202 -.030

Repo .715 .122 .066 .181 -.029

Advertisement .133 .702 .298 .033 .192

Word_of_mouth .110 .778 .253 .008 .265

Proper_Claim_Settelment .036 .153 .699 .073 .171

Easy_Access .036 .289 .603 .112 .171

Low_Premium .185 .145 .819 .133 .065

Good_Schemes .087 .057 .071 .067 .559

Agents .272 .811 .249 .024 .138

Product_Comprehensibility -.167 .353 -.088 .478 -.066

Stable_Company .850 .033 .097 .154 .061

Efficient_Staff .085 .069 .761 .107 .161

Assured_Return .096 .216 .140 .021 .617

Interest -.072 .120 .154 .222 .532

Rotated Factor Matrix - This table contains the rotated factor loadings (factor
pattern matrix), which represent both how the variables are weighted for each
factor but also the correlation between the variables and the factor. Above table
reports the factor loadings for each variable on the factors or components after
rotation. Each number represents the partial correlation between the item and the
rotated factor.

After the statistical computations of factor analyses have been completed, the
next step is of interpreting these factors. This is achieved by inspecting the
pattern of high and low loading of each of the factors on the variables.

91 | P a g e
INTERPRETATION
OF
FACTOR ANALYSIS

92 | P a g e
Factor 1:- CORPORATE IMAGE
Attribute Factor loading Mean
Service .693 3.6796
Reputation .715 3.6213
Stable company .850 4.0436

Interpretation
As the above table shows that corporate image has its three attributes and the
highest value of factor loading for Stable Company suggests that it is highly
correlated with the derived factor under which it falls. Also the mean rating of this
attribute is good; hence it is observed that the respondents interviewed look for the
Stable company first while looking for an insurance policy then he/she look for
the rest i.e. reputation and service under the category of corporate image.

Factor 2:- CHANNEL OF DISTRIBUTION

Attribute Factor loading Mean
Advertisement .702 3.5388
Word of Mouth .778 3.4174
Agents .811 3.6262

Interpretation
Among the channel of distribution factor Agent was preferred the most as it has
the highest factor loading value(.811) and good mean(3.6262) among others and
word of mouth along with advertisement were preferred after agents

93 | P a g e
Factor 3:- COMPETENCE

Attribute Factor loading Mean

Proper claim settlement .699 3.9951
Easy access .603 3.6359
Low premium .819 3.7475
Efficient staff .761 3.7639

Interpretation

Factor 3 comprises of mainly the competence of an insurance company that

influences the respondents to purchase a policy. All the attributes have high factor
loading. The attribute Low premium has the highest factor loading of 0.764 which
indicates that this attribute influences this factor the most. Also the mean rating of
this attribute is good enough; hence it is observed that the respondents interviewed
look for a company which has Low premium. Further the factor loading of the
attributes proper claim settlement, easy access and efficient staff are comparable to
that of low premium and also their means are good. Hence when it comes to
Competence of a company these factors play a part in the buying of a policy.

94 | P a g e
Factor 4:- Protection

Attribute Factor loading Mean

Security .849 4.1213
Risk .730 4.0922
Product comprehensibility .478 3.9951

Interpretation

Factor 4 comprises of mainly the Protection of an insurance company that

influences the respondents to purchase a policy. All the attributes have high factor
loading. The attribute Low Security has the highest factor loading of 0.849 which
indicates that this attribute influences this factor the most. Also the mean rating of
this attribute is good highest in the factor; hence it is observed that the respondents
interviewed look for a company which has good security. Further the factor
loading of the attribute risk is comparable to that of security and also its mean is
also good and product comp. came at last place in this factor. Hence when it comes
to protection of a company these factors play a part in the buying of a policy.

95 | P a g e
Factor 5:- product features

Attribute Factor loading Mean

Good schemes .559 3.7427
Assured Return .617 3.7621
Interest .532 3.5339

Interpretation

Factor 5 comprises of mainly the Product features of an insurance company that

influences the respondents to purchase a policy. All the attributes have good factor
loading. The attribute Assured Return has the highest factor loading of 0.617
which indicates that this attribute influences this factor the most. Also the mean
rating of this attribute is good highest in the factor; hence it is observed that the
respondents interviewed look for a company which provide Assured sReturn
feature in its product. Further the factor loading of the attribute good schemes and
interest are comparable to that of security and also their mean are also good.
Hence when it comes to product features of a company these factors play a part in
the buying of a policy.

96 | P a g e
Table showing awareness of Om Kotak Mahindra
Table 6.10

Are you aware of Om Kotak

Aware
mahindra life insurance?
Yes 122
No 84

Pie chart 6.10

Are you aware of Om Kotak mahindra life

insurance?

No
41%

Yes
59%

Interpretation: The above table indicates that out of 206 samples, 59%
respondents were aware of Om Kotak Mahindra insurance , 41% respondents are
not aware of Om Kotak Mahindra insurance.

97 | P a g e
Table showing Know about Om Kotak Mahindra
Table 6.11

How do you come to

Source
know about Om Kotak ?
Magazines 37
Word of mouth 88
News paper 60
Agents 53
Add(print,radio,T.v) 98
Hoardings 59
Others 54

Graph 6.11

How do you come to know about Om

Kotak ?

88 98
60 53 59 54
37

Interpretation: The above table indicates that from 122 samples,37 respondent
came to know about Om Kotak through Magazines, similarly 88 through Word of
mouth, 60 through News paper, 53 through Agents, 98 through Adds, 59 through
Hoardings, and 54 came to know about it through Other medias.

98 | P a g e
Table showing no. of respondent having Om Kotak policy
Table 6.12

Do you have a policy issued by

Response
Om kotak mahindra?

Yes 28

No 94

Pie chart 6.12

Do you have any policy issued by Om

kotak mahindra?

Yes
23%

No
77%

Interpretation: The above table indicates that out of 122 samples, 23%of
respondents have policy issued by the Om Kotak mahindra and 77% of
respondents not having policy issued by the Om Kotak mahindra .

99 | P a g e
Table showing type of policy owned by resopondent
Table 6.13

What type of policy

Name of policy
do you own?
Protection Plan 8
Saving &
Investment 6
plans
Retirement plan 10
Child plan 4
Total 28

Graph 6.13

What type of policy do you own?

28

8 10
6 4

Protection Plan Saving & Retirement plan Child plan Total

Investment plans

Interpretation: The above table indicates that out of 28 samples,29% of

respondents have protection plan, 21% of respondents have saving and investment
plans, 36% of respondents have Retirement plan and 14% of respondents have
Child plan.

100 | P a g e
Table showing yearly paid premium
Table 6.14

What is the amount of

Premium paid
yearly Paid Premium?
Less than 5000 11
5000-15000 12
15000-25000 4
More than 25000 1
Total 28

Graph 6.14

What is the amount of yearly Paid

Premium?

28

11 12

4
1
Less then 5000 5000-15000 15000-25000 More then 25000 Total

Interpretation: The above table shows that 39% of respondents have been paying
insurance premium less than Rs.5000 yearly, 43% of them have been paying
premium between Rs.5000-15000 yearly, 14% of them have been paying between
Rs.15000-25000 as yearly premium and 4% of them have been paying more than
Rs.25000 as yearly premium.

101 | P a g e
Table showing comment on yearly paid premium
Table 6.15

Comment on yearly paid

Comment
premium charged by Om kotak.
Very high 0
High 11
Moderate 14
Low 4
Very low 0
Total 28

Graph 6.15

Comment on yearly paid premium

charged by Om kotak.

28

11 13
4
0 0
Very high High Moderate Low Very low Total

Interpretation: The above table shows that 25% of respondents, who are policy
holders with Om kotak have stated that the yearly premium paid is high 61% of
them have stated it is reasonable, no one fall in V.H and V.L category.

102 | P a g e
 Weighted average mean

Respondents (Om kotak policy holders) were asked to RANK the following
attributes according to your satisfaction from the attributes that you are getting
from the company.

Factors Rank Rank Rank Rank Rank Rank Rank Rank

1 2 3 4 5 6 7 8
Reputation 12 4 2 1 3 6
Excellent service 7 9 4 5 3
Low premium rates 4 2 7 8 3 4
Good schemes and 4 2 3 6 5 4 1 3
plans
Agents 8 8 1 2 4 5
Stable company 19 7 2
Efficient staff 8 9 9 2
Security & risk free 7 9 6 2 4

103 | P a g e
 APPLYING WEIGHTED AVERAGE METHOD

8 7 6 5 4 3 2 1
Factors Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 W.A Rank
Reputation 12 4 2 1 3 6 4.19 6
Excellent service 7 9 4 5 3 5 3
Low premium rates 4 2 7 8 3 4 4.22 5
Good schemes and 4 2 3 6 5 4 1 3 3.63 8
plans
Agents 8 8 1 2 4 5 4.02 7
Stable company 19 7 2 5.91 1
Efficient staff 8 9 9 2 5.13 2
Security & risk free 7 9 6 2 4 4.69 4

+ + + + + + +
=

+++++
= = .

Findings: - Above table clearly indicates that most of the people said that Om
Kotak is a stable company with efficient staff and they have got excellent service.
Table also indicates that Kotak lacks when it comes to Good schemes and plans,
Agents etc.

104 | P a g e
Table showing response towards approaching media
Table 6.16

How would you like the

Media
company to approach you?
Agents 78
Adds(Print,
87
t.v, radio etc)
Hoardings 62
Through
80
SMS/Email
Others 52

Graph 6.16

How would you like the company to

approach you?

87
78 80
62
52

Agents Adds(Print, t.v, radio etc) Hoardings Through SMS/Email Others

Inference: All types of media were supposed by respondents who were not policy
holders with Om kotak to approach them in future.

105 | P a g e
Table showing present level of add. is adequate or not
Table 6.17

Do you think the present level of

Response
add. is adequate for expention?
Yes 32
No 62

Pie chart 6.17

Do you think the present level of add.

is adequate for expansion?

Yes
34%

No
66%

Interpretation: Graph show that out of 94 respondent, 34% said that present level
of advertisement is adequate for expansion and rest were not in the favor of others
that is they said this much of add. is not adequate for Om Kotak Mahindra.

106 | P a g e
Table showing recommended media
Table 6.18

What type of
Media media/medias would you
suppose?
News paper 69
T.v 85
Radio 48
Dths 26
Cable 32
Others 80

Graph 6.18

What type of media/medias would you

suppose?

85 80
69
48
32
26

News paper T.v Radio Dths Cable Others

Inference: Graph implies that all types of media including others were supposed in
which news paper, T.v, and others got the high ratio and rest got low ratio.

107 | P a g e
Table showing whether respondent will refer Om Kotak or not
Table 6.19

Would you recommend Om

Response Kotak to any of your friend?
Yes 59
No 35

Pie chart 6.19

Would you recommend Om Kotak to

any of your friend?

No
37%

Yes
63%

Interpretation: Above graph implies that majority of the respondent were in the
favor to recommend Om Kotak to their friends and relatives

108 | P a g e
Table showing no. of respondent willing to take Om kotak policy
Table 6.20

In future would you buy

Response
policy from ok kotak?
yes 27
No 67
Total 94

Pie chart 6.20

In future would you buy policy from

ok kotak?

yes
29%

No
71%

Interpretation: Out of 94 respondent who were not policy holder with Om kotak,
72% said that they are willing to take policy from Om kotak in future and rest said
they are not willing buy policy from Om kotak.

109 | P a g e
INTERVAL ESTIMATION: Respondents willing to take policy

Formula:

pq
p Z/2
n

No. of respondents willing to take policy: 27

No. of respondents not willing: 67

n = sample size = 94
27
= = = 0.28
94

q = 1-p = 1-.28 = 0.72

Z / 2 = 1.96 at 95% confidence level

.28.72
Standard error = = = 0.0463
94

Interval estimation=

= 0.28 1.96(0.0463)

=0.28 0.0907

=0.1893>p>0.3707

Conclusion: Hence we conclude that the percentage of respondents willing to take

policy from Om kotak lies between 18.93% to 37.07%

110 | P a g e
 SWOT ANALYSIS
Strength:
Dedicated Employees.
Well Efficient Management.
Technology
Diversification of funds.
Strong and popular brand name
Adaptability to changes.
Has network across 300 towns.
Innovative Product range with transparent practices.
The company covers over 3 million customers and is one of the fastest
growing insurance companies in India

Weakness:
Lack of good services.
Lack of awareness about insurance among people.
Less coverage in Rural Areas.
Opportunities:
Fast growing economy.
Increasing per capita income in India.
Saving behavior.
High growth of ULIP industry.
Lack of presence in various parts of country.
Limited Advertising and low brand visibility as compared to leading
competitors.

111 | P a g e
Opportunity:
Growing potential in the semi-urban and rural market.
Better investment awareness amongst the younger generation.
Customers are willing to take policy in the future.

Threats:
Arrival of new entrants in the insurance industry.
Cut throat competition within the industry.
Fluctuating economic scenarios.
Entry of new NBFCs in the sector increasing competition

112 | P a g e
 CHAPTER 7
SUGGESTIONS AND RECOMMENDATIONS
The present scenario demands almost all the customers to have a life
insurance cover in order to protect from future uncertainty. The company
always has an opportunity to grow and expand its operations in the life
insurance segment. Hence, the company can seize this opportunity and pay
attention to introduce more insurance covers to cater to the needs of various
classes of people.

Factor analysis that was done on all the attribute related to an insurance
company, company should consider all its finding and implement it because
it is what the customer wants for example company should lower the
premium charges, company should implement efficient staff, and
company have to work on advertisement.

Current scenario of the company is drawn from Weighted average mean

suggest that company have to provide more agents anyhow and company
should provide good schemes and plans for the consumers. Majority of the
respondents, who are policy holders with Om Kotak Mahindra have felt that
the premium being paid is comparatively higher or moderate. Hence,
amendments can be made in this regard by offering insurance cover at
reasonable premium rates to the customers.

The promptness of claim settlement procedure can be maintained as it is

one of the important aspects which would enhance the reputation of the
company, as well as build trust in the minds of the customers. Also, it helps
to retain existing customers and attract new customers.

The company can create more awareness about its products among potential
customers by means of advertisements and efficient insurance agents, which
in turn will help in increasing its customer base.

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 CONCLUSION
A study on consumer awareness and market potential of Life insurance industry
with reference to Om Kotak Mahindra was conducted in north Delhi to find out
the level of satisfaction and awareness among the consumers .

The survey has given a clear picture of the level of customer satisfaction which
exists among the existing customer.

The results were tabulated and charts were tabulated and charts were drawn to give
a graphical representation to data.

Suggestions and recommendations were given to company.

Awareness as the findings shows that 59% of people were aware of Om

Kotak.And further it was found that company has a potential among people if they
concentrate on advertisement and their products etc.

At present the new entrants are experimenting with different strategies to penetrate
the market by developing multiple channel distribution models. It is however
recognized that for a long time the agency domination banks, dedicated
distribution through alliances and e-trade will take time to make a sizable impact.
It is the general perception that life insurance will continue to be sold through face-
to-face contact for quite awhile.

Today, after nearly fifty years, the insurance sector is a buyers market
where the consumer has the choice to select from a variety of insurers, products
and services. The insurance companies should concentrate on the requirements of
the insurers and they should module their policies to become market leader. Only
the customer satisfaction will take a company to the height of success. So the
insurance companies should focus on ensuring the maximum customer
satisfaction.

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BIBLIOGRAPHY

Books

Philip Kotler, Marketing Management, Hofter publications 1998,London

Dr.R.L.Varshney and Dr.S.L.Gupta, Marketing Management, An Indian
Perspective, Sultan Chand & Sons, New Delhi, 2002.
Dr.D.D.Sharma, Marketing Research, Sultan Chand & Sons, New Delhi,
2000
Dr.S.L.Gupta & Sumitra Pal, Sultan Chand & Sons, New Delhi, 2001
Dr.P.C.Tripathi, Textbook on Research Methodology in Social Sciences,
Sultan Chand & Sons, New Delhi, 2000
Dr.Sancheti, Quantitative Methods, Tata McGraw-Hill, New Delhi, 1998.
C.R.Kothari, Research methodology, Prentice Hall, 1999.
S.C Gupta and V.K kapoor(For statistical tools)

Magazines

A Survey on Indian Industry- The Hindu.

Annual Report

OM Kotak Mahindra Insurance Co.

Kotak Mahindra

Websites

www.omkotakmahindra.com
www.kotak.com
www.Wikipedia.com

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 ANNEXURE
QUESTIONNAIRE

1. Occupation
Business Professional
Salaried person Others___________

2. Family Income level (Annual)

5,000 - 3 lakh 3lakh 5 lakh
5 lakh 8 lakh 8 lakh 15 lakh
15 lakh 20 lakh

3. Age group
20-30years 30-40years
40-50years 50 Above

4. Which life insurance company/companies are you aware of?

ICICI Prudential LICI
SBI Life HDFC life
Max NewYork Om Kotak

5. Do you have any policy issued by any company?

Yes
No

6. What is the period of insurance cover held by you?

Annual 1-5 yrs
5-10 yrs 10-15 yrs
More than 15 yrs

7. What is the amount of yearly paid premium?

<5000 5000-15000
15000-25000 >25000

8. Comment on the yearly paid premium by you.

Very high High
Moderate Low
Very low

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 9. How would you rate your satisfaction level?
Highly satisfied Satisfied
Moderate Dissatisfied

Rate the following attributes on a scale of 1-5 which influenced you

while buying an insurance product from a Company?(where std notations
are given)

Attributes 1(not 2(Slightly 3(Moderate) 4(Imp.) 5(Very

imp.) imp.) imp.)
Security
Risk
Service
Reputation
Advertisement
Word of mouth
Easy claim
settlement
Easy access
Low premium rate
Good schemes
Agents
Product
comprehensibility
Stable company
Efficient Staff
Assured Return
Interest

10. Are you aware of Om Kotak Mahindra Life insurance?(If no Skip

Questionnaire)
Yes No
11.If yes, how do you come to know about Om Kotak Mahindra Life
insurance?
Magazines Word of mouth
News Papers Agents

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 Adds.(prints,t.v,radio) Hoardings

12.Do you have any policy issued by Om Kotak Mahindra Life

insurance?(If no go to question no. )
Yes No

13.If yes, which policy do you own?

Protectection plan Saving & Investment
Retirement plan Child plan

14.What is the amount of Yearly paid Premium?

less then 5000 5000-15000
15000-25000 >25000

RANK the following attributes according to your satisfaction from the attributes
that you are getting from the company.

Factors Rank Rank Rank Rank Rank Rank Rank Rank

1 2 3 4 5 6 7 8
Reputation
Excellent service
Low premium rates
Good schemes and
plans
Agents
Stable company
Efficient staff
Security & risk free

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15.Comment on the rate of premium charged by Om Kotak Mahindra
Life insurance?
Very high High
Moderate Low
Very low

16.How would you like the company to Approach you/your friends?

Agents Adds(print,t.v,radio)
Hoardings Others
Through Sms/Email

17.Do you think the present level of advertisement is adequate for

expansion in this sector?
Yes No

18.If no, specify the medium of advertisement that you will suppose?
News paper Television
DTHS Cable
FM Agents
Others

19.Would you recommend this to any of your friends?

Yes No

20.If there is chance to buy policy from Om Kotak in future would you
buy it ?
Yes No

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