PROJECT REPORT

ON

MARKET POTENTIAL OF KOTAK MAHINDRA LIFE

INSURANCE

FOR
KOTAK MAHINDRA LIFE INSURANCE, PUNE

IN PARTIAL FULFILLMENT OF
MASTER OF BUSINESS ADMINISTRATION
TO
PUNE UNIVERSITY

Submitted By
NITIN D. KAMBLE

Under The Guidance Of

PROF. YUVRAJ LAHOTI

VISHWAKARMA INSTITUTE OF MANAGEMENT, PUNE.

MBA(2004-2006)
 ACKNOWLEDGEMENT

No study is big or small can be undertaken all by oneself.Behind this project too
is guidance of those individual people to whom I will be always grateful.

I express my deep sense of gratitude to Kotak Mahindra Group for giving me the
opportunity of doing this project in their well-renowned organization which otherwise
would not have been easy.

I am deeply indebted to Mr Nikhil Shah, Sales Executive in Kotak Mahindra Life

Insurance who selected me as a trainee to work with him and guided me throughout the
project. I am grateful and would like to express sincere thanks to my guide Proff. Lahoti
Yuvraj for their valuable suggestion and guidance throughout this project.

This tremendously helped me in execution of the entire Project.

Mr. Nitin Kamble

(MBA 2004-2006)
 DECLARATION

I undersigned Mr. Nitin Kamble hereby declare that the project report written and
submitted by me under the guidance of Proff. Lahoti is my original work. The empirical
findings and data collected in this report are based on the information collected by me
through fieldwork. I have not copied from any report submitted to any of the University/
Institution.

I understand that any coping is liable to be punishable by authorities.

Place:Pune

Date: Signature
 CONTENTS

Sr.No Title

01. Executive Summary

02. Introduction to topic

03. Scope and limitations

04. industry profile

05. Company Profile

06. Research Methodology

07. Data Analysis And Interpretation

08. Findings And Suggestions

09. Annexure

10. Conclusion

11. Bibliography
 EXECUTIVE SUMMARY

The objective of the project was to be Market research & find out the Market
Potential for Kotak Mahindra Life Insurance . For this we have to understand consumer
response, time frame, personality constraints and emotions for assessing the potential of
insurance sector. So specifically the target of the project is to focus of the high network
income groups and retailers for their investment portion.

Project involved a blend of marketing where we were to interact we all kinds of

retailers, wholesalers, real estate agents & other service group to gather information on
site and tell them what are the new opportunities that are with Kotak Mahindra Life
Insurance and tell them what are the benefits they will get if they insured with kotak
group.The main task of project involved carrying the fieldwork where we supposed to
visit all kind of retail outlets as well as non-retail business in major localities.

The first half of my project involved in Kotak is to carry the fieldwork along with
campaigning in different localities in Pune region. Data collected from fieldwork were
submitted to the company for future requirements and also to get back to the customers.
The study undertaken for two months. As I have to target specifically to retailers and
whole sellers who form the majority portion of the total market. We were given more
than one month for the collection of data and scanning of data. This report shows detail
work on following areas

- Pune Satara road

- Laxmi road
- Tilak road
- J.M. road
- Bibewadi area
- Market yard
 For this purpose Feedback form was prepared which gave a broader picture of
the people about their existence investment segments. The form shows details regarding
current savings and planning for their future events. Through this form we got to know
what people think about private insurance sector and get the idea about different flaws in
the insurance sector because it is seen that during interview few people had a idea about
private players in the insurance sector and their developments. The questionnaire contains
various aspects like profession, education, current savings, number of dependants,
address etc.

Second part of the study contains scanning the form/questionnaire making proper
evaluation of given information and going back to them showing how they need to plan
their future and the direction to achieve their desired goals. Though, many respondents
did not give all the details regarding current savings.

For assessing the customer response following market research process followed

Step 1:Define the objective:

First step is defining the objective i.e. Market Potential for Kotak Life
Insurance researcher covered most of the areas, which had been instructed by the
company.

Step 2:Develop research plan:

The second step was to develop the most efficient plan for gathering the needed
information.

i) Data sources: Both primary & secondary data are taken into consideration.
Primary data are data gathered from field for specific research project.

ii) Research approach: I have mainly collected the primary data through survey
& few cases by observations.

iii) Research instrument: Questionnaire is used to collect most of the primary

data.
 iv) Sample plan: after deciding on the research approach the instruments I
decided sampling plan this cause for three decisions.

a. Sampling unit: project was concentrated on retailers, whole sellers, real

estate agents, service group & others for the sampling unit

b.Sampling size: project consists of 165 respondents from different areas &
from different professions.

c. Contact method: once a sampling plan has been determined, marketing

researcher need to decide how the subject should be contacted: mails,
telephone, personal visit or online interview. In my project research it was
mostly personal interview and in some cases telephonic interviews was held.

Step 3:

Collect the information:

Data collection phase of the marketing research generally was the most time
consuming period. In case of survey few problems arise likewise some
respondents may not give all the detail information and might not be available and
must be contacted or replaced. Others refused to co-operate and finally some
respondents will be biased or dishonest to share information.

Step 4:Analyze the information:

The collected information needs to be analyzed thoroughly to extract the findings

that will be useful to the company. Again this data must be tabulated and
averages/measures are computed from various variables.

Step 5:Present the findings:

And the last step is present the findings that are relevant to the objectives.
 INTRODUCTION TO TOPIC

Life insurance is a contract between you and a life insurance company, which
provides you a predetermined amount in case of your death, accidents or any
uncertain events during the contract term.

Buying insurance is extremely useful if one is the principle-earning member in

the family and unfortunate premature demise, your family can remain financially
secured because of the life that you have purchased.

The primary purpose of life insurance is therefore protection of the family for uncertain
events for future. Life insurance is also seen as a tool to plan effectively for the future
years, your retirement, education of the children s and their future needs. Today, market
offers insurance plans that not just cover you and your family but at the same time it
helps to grow your wealth too.
Life wasn t designed to be risk free. The key is not to eliminate risk, but to estimate it
Accurately and manage it wisely.

Insurance sector have characteristic that give can boost to the growth of any
economy .it is due to the savings done at the individual level and at micro level it
generates funds for infrastructure building as the cash flow is constant while the payout is
differed, so that the insurance companies are becoming biggest investors in long gestation
infrastructure development projects and hence have a great Importance to the developing
economy like India. Insurance sector with an annual growth rate of 15-20% and the
largest number of life insurance policies in force, the potential of the Indian insurance
industry is huge.
 FIG.1 PREDICTED GROWTH SCALE OF INDIAN INSURANCE SECTOR

Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion
(US$10 billion). According to government sources, the insurance and banking services
contribution to the country's gross domestic product (GDP) is 7% out of which the gross
premium collection forms a significant part. The life Insurance industry in India grew by
an impressive 36%, with premium income from new business at Rs. 253.43 billion during
the fiscal year 2004-2005, braving stiff competition from private insurers. RNCOS s
report, Indian Insurance Industry: New Avenues for Growth 2012 , finds that the market
share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86
billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to
arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57
billion in 2004-05 from Rs. 24.29 billion in 2003-04.

Introduction to the topic

The report discusses the work done by trainee Mr. Kamble Nitin student of
Vishwakarma institute of management. The purpose of training was to have practical
experience of working in an organization. So the fieldwork was essential to get exposure
to various management practices in the field of marketing.

The main purpose of the project was basically to find the market potential for kotak
mahindra life insurance pune. It included extensive market surveys and meetings
mainly with the retailers, whole sellers and other merchants from different regions of
pune. The project is divided in two parts, for the first half is contains period of 30 days
in which I did research, surveys and meetings with the people to collect data. In the
later part I met various retailer, whole sellers, real estate agents, stockiest and few
others to promote and make them aware about the company.

The survey also helped to provide details regarding various opportunities and
different plans and policies that are coming up in the company. This was useful
information for them to get the benefits and to know future growth prospects if they
join with the company.

Importance of the topic

The topic gives broader picture about who is the market leader among all the
insurance providers. The study is all about finding out the market potential of kotak
mahindra life insurance for the pune region.

Kotak group recently launched Kotak Mahindra Life Insurance along with old
mutual plc. as join venture. There are already 13 private insurance companies in the
Indian market & what is the present position of kotak mahindra life insurance could be
determined by market research and fieldwork.

This data will be helpful to determine what are the pros & cons kotak is facing in the
market, how do people perceive kotak group as life insurance providers.
 SCOPE AND LIMITATIONS

Scope of the study

The study of potential of insurance business is concerned with market study i.e
research and fieldwork. This study is going to help the Kotak Life Insurance to find out
market potential with other companies. The study will help the company to assess their
performance and improve it where it is lacking.

Research work is a basic function carried out by each organization. The study of
market potential of insurance is very helpful to find out who are the market leaders in
private companies as well as overall analysis.

Availability of time was also taken into account while decid8ing the particular
method to meet the objectives. The entire study programmed was for the period of two
months.

The subject of the study was selected by looking the necessity and importance to
find the market potential and give suggestions related to the topic.

Limitations:

- One of the major limitations of this study was lack of sufficient time as the
subject was required lot of time.

- The time limit permitted to cover the major areas of Pune but not all the
regions of the city.

- The study limits itself only to Kotak Mahindra Life Insurance.

 INDUSTRY PROFILE
Five years after the life insurance sector was opened up to the private sector,
market scenario for all these companies in not very much exiting. Already over Rs.15000
crore has been invested in the sector by major and their foreign partners. But that is
obliviously not enough, a few thousand crores more will be needed.

Because almost of the 13 private sector life insurance companies are incurring
substantial losses. Some estimate suggests that private insurers made a combined loss of
almost Rs 1000 crore in 2003-04.Things haven t changed much since.

- Bajaj Allianz Life Insurance, the second largest private sector life insurer,
posted a loss of Rs 76.8 crore in the first nine months of the current fiscal.

- Kotak Mahindra Life Insurance registered a loss of Rs 41.22 crores over the
same period.

- Birla Sun Life Insurance, which claims to be among the most efficient users of
capital, posted a loss before interest and taxation of Rs 60.03 crore for the year
ended 31st March 2005.And just in the October-December quarter of
2005,Indias largest private sector insurer, ICICI Prudential posted a loss as the
others have run up in the first nine months of FY 06.

The losses itself are not a major concern. Such under spread losses are neither
abnormal, nor expected in the initial years. In this business, companies have to bear such
losses if they want to reap the substantial long-term profits. But profits are still many
years away.

At the moment, private sector life insurers are at a stage where any growth will
only add to their losses. In fact the insurance sector is seeing a strong growth-in terms of
penetration. Life insurance premium to GDP has grown from 1.8 percent to 2.3 percent
while the per capita premium paid has more doubled from Rs. 280 to Rs. 600.

However, there is one big reason for alarm. Insurers do need access to substantial
capital in order to keep up this growth despite their initial losses. But many private sector
insurers are struggling to raise the required capital. That s because the government has
not yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies
from 26 % of equity to 49 % as outlin3d by the previous government.

And because of 26 % FDI cap, the burden of funding the growth falls on the
Indian promoter. The need for capital is even more crucial in the context of the (IRDA)
Insurance Regulatory and Development Authority regulation on solvency margins. In
India, for every Rs 100 of claims payable to customers a life insurance company must
have assets worth Rs 150.

OPTIMISTIC INDIAN MARKET FOR INSURANCE SECTOR:

Indian market can be labeled as a untapped market, which in it s core holds immense
potential for growth. The hike in FDI from 26% to 49% .this increasing capital
participation of international insurers will accelerate the development of the Indian
insurance industry, through the greater deployment of technical competencies and
innovative products and processes .As
The purchasing power of Indian people is increasing, so we can predict that the no. of
customers who can afford to investment in health, life, disabilityand pension products is
going to increase up to great level.
According to SWISS Re Economic Research and Consulting.

300 2014
2012
250
2010
200 2008
2006 Rs. Billion
150
2004 Years
100 2002
2000
50
1998
0 1996
1 2 3 4 5 6

Fig. INDIAN INSURANCE GROWT FORCAST

AREAS OF OPPORTUNITIES

1) New Horizons of investment

Insurance companies have shown an unquenchable thirst to offer customized
solutions Based on individual risk appetite of customers rather than mundane, one size
fits all endowenment. Based insurance products. We have a good example of ULIP
(Unit links Insurance Plan) by LIC. It is a single largest innovation in life insurance
industry. Life Insurance products are similar to investment product with less or risk
coverage, signifying changing preferences of investors. ULP s score over mutual funds,
since they offer risk-cover, as well as returns by investing in stock markets, even out
performing equity returns in certain instances. We can have the same plans from other
private players like Bajaj-Allianze i.e. equity plan funds, ICICI Prudential maximizer,
HDFC standard life growth fund. Total premium under return for unit-linked plans in the
financial year 2004-2005 stood at Rs. 82.47 billion, and outstanding growth of 422% over
the previous year.
2) Indian Rural Market
A large number of Indians lives in rural India, so this market should be tabbed by
insurance companies and it require a different approach of sales services with respect to
meeting such challenges as low awareness, irregular incomes and geographical distances.
The focus has to be
on simple coverage and return of premiums. Very few companies have plans for rural
India.
3) Customized Solutions
Competitive insurance market exploring the new customer segments, it includes
pension plans and children plans. By 2026 India will have 179 million people who wear
above 60 years of age. According to that insurance companies should have a marketing
plan. Special children plans are the current requirements, as the education is becoming
more important and expensive. So such plans must be introduced by all insurance
companies. ICICI Prudential and LIC have already done this.
II. WHAT IS NEEDED TO BE EXPLORERED?

1) The industry in general faces the challenge of building the credibility of being a
financial service provider while meeting a customer s expectation of what it means to be
a financial services company. Financial service brands are based on insuring long-term
financial security throw a broad range of inherently risky services and investment
options. In the insurance sector, branding has typically involved the concept of stability;
trust and protection from risks in time of crises, or even protecting from a crises throw a
standard set of products. It will help to establish what insurers stand for and promise and
will eventually help to give a industry new image.

2) The altered scenario of the insurance market in India has brought in new and
differentiated products and services offerings to the public and has opened new
challenges for insurance companies. Devising specific strategies to reach out to specific
segments of the market, different countries and across social strata has been one aspect of
the challenge. The other more complex one has entailed designing the products,
marketing them, ensuring the smooth selling of products, collecting premiums, managing
claims, managing & investing the funds and managing a vast enterprise. This has created
a need of strong Risk Management.

3) The core function of the marketing force of an insurance company is to generate

awareness about the insurance products among the target market.

4) Branding the marketplace is similar to branding on a cattle ranch, the purpose of a

branding program to differentiate our cow from the cattle of range.
According to an article in the insurance marketing magazine, Feb-March 2002, brand
strategy is one of the most critical parts of the underlying business strategy of any
organization. It will help to establish what insurers stand for and promise and will
eventually help to give a industry new image. This positioning helps to give credibility to
sell Risk-Free products design to help customers insure that their family and assets are
protected.

5) Branding is the new key challenge in the financial services industry. Life in the 21st
century will be longer with more choice in more fields of activity. The financial
consequences of an increased life span are particularly likely to be tough. Inevitably, this
will lead to more complexity, which in turn necessitates greater clarity and appeal from
the service providers. Branding is more relevant in the financial services market, which
not only faces the problem of securing and retaining customers in an increasingly
competitive marketplace but also experiences the need for heightened relevance of the
brand proposition in a world where brand has been termed the new religion.
QUICK FACTS:

- Second largest mobilizer of savings after banks.

- Constitutes 15 % of gross domestic savings after banks.

- Rs 400,000 crore of assets under management.

- Rs 40,000 crore invested in infer-structure

- Share of retail customers to total-92 %

- Agency force 15 lakhs

- No. Of policies in force: 20 crore

- Employees: 200,000

HISTORY

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

1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance business.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalized.LIC formed by an Act of Parliament, viz. LIC
Act,1956,with a capital contribution of Rs.5 crore from the Government of
India.
ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS.

Insurance sector is seeing a strong growth in terms of penetration, life

insurance to premium to GDP has grown from 1.8 percent to 2.3 percent while the per
capita premium paid has more than doubled from Rs 280 to Rs 600.Despite the fact that
India boosts a saving rat of around 25 percent, less than 5 percent is spent on insurance.

The insurance landscape in India is undergoing major changes. Close to

foreign competition since nationalization in 1956,the life insurance industry had been
protected from competitive pressures.

Now with the re-opening of the sector, several new players have entered
the scene. Besides, Kotak Mahindra Life Insurance there are 12 other private players
working in insurance sector which are as follows.

1.AMP Sanmar Assurance Company Ltd.

Indian Promoter Reliance Group

Foreign Insurer None

2.AVIVA Life Insurance Company Ltd.

Indian Promoter DABUR

Foreign Insurer AVIVA,UK

3.BAJAJ Allainz Life Insurance Company Ltd.

Indian Promoter BAJAJ Auto.

Foreign Insurer ALLIANZ, Germany

4.BIRLA Sun Life Insurance Company.

Indian Promoter ADITYA BIRLA Group

Foreign Insurer SUN LIFE, Canada

5.HDFC Standard Life Insurance Company.

 Indian Promoter- HDFC

Foreign Insurer Standard Life, UK

6.ICICI Prudential Life Insurance

Indian Promoter ICICI Bank

Foreign Insurer Prudential, UK

7.KOTAK MAHINDRA Life Insurance

Indian Promoter- KOTAK Bank

Foreign Insurer- OLD MUTUAL, South Africa.

8.Max New York Life Insurance Company

Indian Promoter MAX India

Foreign Insurer NEW YORK LIFE, US

9.MET LIFE Insurance Company

Indian Promoter J & K Bank

Foreign Insurer MET LIFE, US

10.SAHARA Life Insurance Company Ltd

Indian Promoter SAHARA INDIA Ltd.

Foreign Insurer NONE

11.SBI Life Insurance

Indian Promoter SBI

Foreign Insurer CARDIFF, France

12.TATA AIG

Indian Promoter TATA Group

Foreign Insurer AIG, US

COMPANY PROFILE

THE KOTAK MAHINDRA GROUP

Kotak Mahindra is one of India s leading financial institutions, offering complete

financial solutions that encompass every sphere of life. Form commercial banking of
stock broking, to mutual funds, to life insurance, to investment banking. The group caters
to the financial needs of individuals and corporate.
The group has a net worth of over Rs. 1,800 core and employs over 4,400
employees in its various business. With a presence in 82 cities I India and offices in New
York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.
Kotak Mahindra has international partnerships with Goldman Sachs (one of the
world s largest investment banks and brokerage firms) and Old Mutual (a large
insurance, banking and asset management conglomerate).

Mr. Uday Kotak Executive Vice Chairman & Managing Director

Mr. Shivaji Dam
Mr. C. Jayaram
Mr. Dipak Gupta

OUR MANAGEMENT FOR LIFE INSURANCE

Mr. Gaurang Shah (Managing Director)

Mr. G Murlidhar (Chief Financial Officer)
Mr. Nandip Vaidya (Vice President - Sales)
Mr. Arun Patil (Vice President - Sales & Management Development)
Mr. Eksteen de Waal (Head Sales Training)
 OUR STORY

The Kotak Mahindra group was born in 185 as Kotak Capital Management
Finance Limited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this
company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and
that s when the company changed its name to Kotak Mahindra Finance Limited.

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discouting.
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

1990 The Auto Finance division is started.

1992 The Investment Banking Division is started. Takes over FICOM, one of India s
financial retail marketing networks.

1992 Enters the Funds Syndication sector.

1995 Brokerage and distribution business incorporated into a separate company

Kotak Securities. Investment banking division incorporated into a separate
company - Kotak Mahindra Capital Company.

1996 The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Primus Limited. Kotak Mahindra takes significant stake in Ford
Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of
Matrix Information Services Limited marks the Group s entry into information
distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset
Management Company.

2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance Business.

Kotak Securities launches kotakstreet.com it s on-line broking site. Formal

commencement of private equity activity through setting up of Kotak Mahindra
Venture Capital Fund.

2001 Matrix sold to Friday Corporation Launches Insurance Services.

2003 Kotak Mahindra Finance Limited converts to bank.

KOTAK MAHINDRA

A Lifetime of Value
Old Mutual

Old Mutual was established more than 150 years ago and has developed
into an International services group w focused on asset gathering and asset
management. The old mutual Group offers a diverse range of financial services
geographics : South Africa, the United States and United Kingdom. The company is
listed on the London Stock Exchange capitalization of approximately $6 billon and is
member of the elite FSTS 100 index. In the 2003 rankings of the w corporations
Fortune magazine, Old mutual climbed 87 places to position number 366 and was
also listed 14th company in the world.

Old Mutual is the largest financial services business in South Africa, through
its life insurance, asset management, and insurance operations. The company serves 4
million life insurance policyholders and employs over 13 000 South Africa
operations.

In the USA Old Mutual is one of the top ten fixed annuity business offering an
array of specialist asset management. The company s US Life business recorded sales
of $4 billion at the end of 2002.

Operations in the United Kingdom are focused on wealth management,

through Gerrard as one the leading private business in the UK.

The Old Mutual Group has the ability to cater for variety of consumer
segments and offers a comprehensive and in products for all income groups.
Products:
Individual

Kotak Term Plan

Kotak Preferred Term Plan
Kotak Money Back Plan
Kotak Child Advantage Plan
Kotak Endowment Plan
Kotak Capital Multiplier Plan
Kotak Retirement Income Plan
Kotak Retirement Income Plan (Unit-linked)
Kotak Safe Investment Plan
Kotak Safe Investment Plan II
Kotak Flexi Plan
Kotak Easy Growth Plan
Riders
Exclusions Under Riders
Group

Employee Benefits
Kotak Term Plan
Kotak Credit-Term Grouplan
Kotak Complete Cover GroupPlan
Kotak Gratuty Grouplan
Kotak Superannuation Grouplan

Rural

Kotak Gramin Bima Yoj.

 RESEARCH METHODOLOGY

INTRODUCTION:

Marketing Research is an systematic and objective study of the problems

pertaining to the marketing of the goods and services. It may be emphasized that it is not
restricted to any particular area of marketing, but is applied to all the phases and aspects.

METHOD OF DATA COLLECTION:

- Primary Data;

The major source for collecting primary data has been the interviews held with
retailers, whole sellers, real estate agents, stockiest and few other segment of market. The
maximum prospects were visited directly at the shops and interviewed provided they had
time to spare. Some of them interviewed via tele calling and few were interviewed after
taking prior permission and appointment. The information given by them was satisfactory
and relevant to the subject.

- Secondary Data: The sources of secondary data are;

INSTITUTION:

- Business Magazines

- News Paper

- Annual Reports / Company Periodicals

REFERENCES:

- Internet, Company websites

- Telephone Directory (BSNL and TATA Indicom)

- References from company employees

- Annual Reports / Company Periodicals

QUESTIONNAIRE METHOD

This method is used to collect general information about the company like total
number of employees viz. agents, sales executive, management trainees, front line staff
etc. Sales executive provided this information. This information helped to know the basic
knowledge about the company before doing the actual research.

RESEARCH DESIGN:

SAMPLING UNITS:

This combines all those respondents in the market who can be the future prospects
of being a part as an insurer of Kotak Mahindra Life Insurance. Some of them are
retailers, whole sellers, real estate agents, stockiest and few others from different
commercial areas of PUNE.

As instructed by the company- following are the few segments.

1.Business- Class
2.Agents General Insurance Agents
- Postal Agents
- Travel Agents
- Real Estate Agents
3.Service Class
- Professor / Teachers
- Office Staff, Banks Staff
- Government Employees
4. Mutual Fund Agents
5.Tax Consultants
6. Investment Consultants
7. Share Brokers
8. Financial Advisors
9. Chartered Accountants / Company Secretaries
10. Others- House wife , Medical Representatives
STEP 2
Out of these various segments, the researcher targeted following
- Retailers
- Whole sellers
- Stockiest
- Real Estate Agents
- Others
Note: It was instructed by the company to target the people having net income between
15000 and above. The required data for above segments is to be such, which is helpful to
know the background & potential of the prospects. For all that researcher collected
information as there,

Name

Present Age

Address

Ph No.-

E-mail-

- Brief Information about family

- Personal Goals

- Retirement Plans

- Present monthly expenses

- Existing Investment Avenues

 SAMPLE DESIGN

Sample size

(165 people)

Retailers (60) Whole Real Estate Stockiest (16) Others (30)

Sellers(43) Agents (16)
DATA COLLECTION TECHNIQUES:

- Questionnaire Method

- Telephone Interview Method

QUESTIONNAIRE METHOD

The individual questionnaire of the survey was designed for population between
age group of 18 60 years of age who can be the prospect of becoming Kotak Mahindra
Life Insurance clients from different areas of PUNE. In total 165 questionnaires were
completed who were the samples for research work.

SAMPLE SIZE:

The sample size of the respondents was taken as 165 considering the scope and
constraints of the study.

FIELD WORK:

The fieldwork was conducted for a period of 60 days in different commercial

areas of PUNE. Interviews were conducted from respondents across segments, above 18
years of age and as per their convenience. So as to contrive representative sample. The
interview and presentation mode by researcher were carried for the duration of 20
minutes.
 DATA ANALYSIS AND INTERPRETATION

1. Investment options preferred by respondents.

Sr. No Investment Options No. Of Respondents

1 Insurance 75
2 Fixed Deposit 20
3 Post 20
4 PPF 22
5 Mutual Fund 8
6 Shares 5
7 Daily Collection 15
TOTAL
165

Respondents Investments

Insurance
75 Fixed Deposit
20 Post
PPF
20
Mutual Fund
15 5 8 22
Shares
Daily Collection

Out of total respondents, maximum i.e. 75 respondents think Insurance is a

safer option to invest the money. It gives them long-term benefits for not only
individual but for the entire family. Thus, people find insurance safe and better
option rather than investing in FD, Post, Mutual Funds, Shares etc.
 2. Need of Life Insurance

Yes 135
No 30
Total 165

Need of Life Insurance

No
Yes
18% Yes
82% No

Around 82 % of the total samples think that insurance is essential part of the life. But for
everyone the need for life insurance has different reasons.18 percent of the people think
other options are better than life insurance. Following factors determine the need for life
insurance.

Factors to determine need for

L.I No. Of respondents
Security/Safety 55
Savings 15
Long term Investments 35
Tax Saving 30
Total 135

Still majority i.e. 82% people think that insurance is essential. However safety is major
concern when people see insurance as investment.
3.Awareness about the Insurance Companies.

Insurance Companies No. Of respondents

ICICI Prudential 115
Kotak Mahindra 65
Bajaj Allianz 95
Tata AIG 75
Max New York Life 35
HDFC 105
Aviva 60
Total 550

Awareness about Insurance Companies

ICICI Prudential
Kotak Mahindra
60 Bajaj Allianz
105 115 Tata AIG
Max New York Life
35 HDFC
65
75 95 Aviva

Among all the private players in the market ICICI prudential and HDFC Standard Life
are among the most popular and known brands in the market. These two brands are way
ahead of the Kotak Mahindra Life Insurance and others. These two Life Insurance
companies do effective advertising that made them known brands in the market
4. Reliable companies among the respondents.

Insurance Companies Respondents

ICICI Prudential 75
Kotak Mahindra 20
Bajaj Allianz 55
Tata AIG 40
Max New York Life 15
HDFC 60
Aviva 35
Total 300

Reliable Companies as per market

ICICI Prudential
Kotak Mahindra
35 75 Bajaj Allianz
60 Tata AIG
Max New York Life
20
15 HDFC
40 55
Aviva

Among all the samples ICICI and HDFC are believed as the most reliable companies
among all the private companies in the market. Following are the factors that determine
why these two companies are preferred and believed by the people.
 Factors
determining
reliability Response
Brand Name 45
Safety 40
Peer pressure 55
ROI 70
Previous experience 45
Total 255

Reliability Factors
Brand Name

Safety
18%
18%
26% Peer pressure

16% ROI
22%
Previous
experience

People are positive about ICICI and HDFC as reliable companies because of their
Returns, Brand name, and Previous experience and also there is lot of peer pressure
among
5. Present Insurance holders

Yes 145
No 20
Total 165

Insurance holders

200

100 Series1
respondent
s
0
Yes No
Series1 145 20

Insurance Companies Market Share

LIC 85
ICICI Prudential 20
Kotak Mahindra 15
Bajaj Allianz 10
Tata AIG 8
Max New York Life 17
HDFC 5
SBI 5
Total 80
 Market Share of each company
3%
3%

10% LIC
ICICI Prudential
Kotak Mahindra
Bajaj Allianz
Tata AIG
Max New York Life
HDFC
5%
12% SBI
9%
6% 52%

Among the total market share LIC still has majority share in market, holding 52% of the
total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and
HDFCareleaders
6. Total Savings for Life Insurance.

Savings (Rs) Respondents

5000-10000 47
10000-20000 75
20000-40000 31
>40000 12
Total 165

Savings
Savings In Rupees

80
60
40 Series1
20
0
5000- 10000- 20000- >40000
10000 20000 40000
No Of Clients

Among the total respondents 75 people save anything between Rs. 10000- Rs15000. Thus
we can say that still people are doing good amount of savings in insurance. It came to
know that all the respondents have some part of their savings in insurance.
7.Benefits from Life Insurance Policy.

Benefits Responses Of Clients

Child Education 35
Personal Goals 90
Marriage 45
Retirement 85
Savings 75
Total 330

Benefit Factors

23% Child Education

11%
Personal Goals
26%
Marriage
26% Retirement
14%
Savings

Personal goals, retirement, savings are the prime benefits for which people usually invest
in insurance. The same response was found during the research work. It is good sign for
the insurance business, as people perceive insurance for achieving the different goals in
the life.
8. Awareness about Kotak Life Insurance.

Awareness Response
Yes 70
No 95
Total 165

Brand Aw areness

100
80
Response

60
Series1
40
20
0
Yes No

Around 95 respondents i.e. 58% didn t have any idea about Kotak Mahindra Life
Insurance. This shows that there is lack of awareness in the market, which need to be
taken care trough advertising.
9.Awareness about different plans of Kotak Life Insurance.

Kotak Plans
Awareness Response
Yes 20
No 145
Total 165

Awareness of Kotak Plans

200
Respondenes

150

100 Response

50

0
Yes No

As there in lack of awareness, maximum respondents don t know about the plans and
policies of Kotak Mahindra.This Company needs to promote their different plans through
effective advertising to make people known.
10.Future prospects for Kotak.

Interested Prospects Response

Yes 25
No 75
Cant Say 65
Total 165

Response For Kotak

Yes
Cant Say 15%
Yes
39%
No
Cant Say
No
46%

15 percent of the total respondents said they are interested to buy the policy from Kotak
Mahindra Life Insurance. Out of the remaining respondents 46 percent didn t show any
interest in Kotak and others were not sure whether to buy the policy from Kotak or not.
 OBSERVATION AND FINDINGS

OSERVATION:

The researcher has taken interview of given various segments as Retailers, Whole
sellers, Real-Estate Agents, Stockiest and others and came to know the facts as follows.

RETAILERS:

Belief:
Retailers contribute to the major portion of any market. Therefore, retailers are good
prospects for insurance business. Normally it is believed that they spare very less time
with other people other than their customers. Retailers are quite busy with their customers
and other related work.

Facts:
Though some beliefs are found correct but observation show other side of the curtain i.e.
- They were quite generous when they knew that they were getting some information.

- They spare good amount of time if one presented the company and himself
properly.

- Retailers give sufficient information if they believe in the work.

WHOLE SELLERS

Belief :
Whole sellers are believed to be among the busiest people in their work. They are
actively involved in loading, unloading, dispatching, billing etc.

Facts:
- Whole sellers are not ready when we approached spontaneously to provide some
information.

- They provide sufficient information if they contacted when they have free time.
 - Most of them were not really comfortable to give any sort of personal and financial
information.

- These people runs huge business so these are highly potential prospects for any
business.

REAL ESTATE AGENTS

Belief:
These people are not so busy as they have selective and limited no. of customers. But
many of these agents are out with their clients on their sites thus it becomes really
difficult to meet them. They are believed, as they don t entertain others.

Facts:

- Appointments need to be taken before visiting to their places.

- These agents have very good contacts, which means good customer base. So they
give bigger and better clients for insurance business.

STOKISTS/COMPANY OUTLETS

Belief:
These are believed as high-class people and usually prefer to talk with senior executives
of any company.

Facts:
- These people should be given a call before visiting their place, as they don t
appreciate direct visits by any people.

- Good presentation is required to make them talk for a while.

- A highly potential customer if one makes them believe in company by providing

detail information regarding company its present and future growth.

OTHERS
These include house-wife, pensioners etc.
Belief:
They are supposed to have sufficient time and believed as the working persons at home
normally influence these people.

Facts:
- Most of the hose-wife were shy to talk with strangers.

- These people are dependent for their decisions.

- Not a very good prospect for insurance business.

FINDINGS:

A): BRAND Knowledge

1. It is found during research that 58 percent were lacking any sort of
knowledge and information about Kotak as life insurance provider.

2. From the total 165 respondents, 118 respondents save good amount of
money i.e. between Rs 10000 to Rs. 40000 in insurance. Remaining people
save anything between Rs 5000 to Rs 10000.Thus it shows as everyone has
some part of savings in insurance, which is good sign for insurance sector.

3. Majority i.e. 53% respondents have their personal goals and retirement plans
as prime concern for buying insurance.

4. Out of 165 samples, 145 respondents i.e. around 88 % of them have

insurance cover in different private insurance and government
organizations.

B): PRODUCT Knowledge

1. 42 percent had just heard about Kotak Mahindra but were lacking
knowledge about different plans. Out of these 42 percent only 7 percent
people were insurance holders of Kotak Mahindra Life Insurance.

2. It is found that still (LIC) Life Insurance Corporation of India rules when it
comes to trust for insurance providers, among private sectors its ICICI
Prudential, HDFC Standard Life, Bajaj Allainz are among market leaders.

3. Still 82 percent of samples think insurance is essential for various reasons.

4. Many respondents found saying HDFC and ICICI as being more reliable
insurance providers in terms of returns, peer pressure, previous experience
than their competitors.
 SUGGESTIONS

1. More visibility through advertising

Media Advertising T.V Channels, Radio Stations, Internet pop-ups, Video Clips
during the intermission in Theaters.

Press Advertising Leading News Papers like Times of India, Economic Times,
Hindustan Times, Indian Express and few local language newspapers.

Campaigning, Rallies, Sponsorships for the local institutional and social events.

All these forms of advertising could be effectively used to create brand awareness

for Kotak Mahindra Life Insurance.

2. They need to concentrate on service factor by hiring or recruiting professional

people for effective presentation and communication skills.

3. They need to open more branches/offices at the major localities in different cities
and if possible in towns.

4. They should hire a Brand Ambassador/Ambassadress from Cricket or Film

industry as people from these two fields influence many people in the society.
This would promote the company not only within India but also at global
standards. This might create strong awareness and give popularity to the company
as millions of people are addressed at one time.

5. They need to search for management trainees whom they can provide proper
training who could turn out as future employees of the company.

6. Good amount of incentives and basic salaries should be given to the employees to
make them perform better.

7. Proper training facilities should be given to the new employees, which will help
them to get fair idea about the company and its policies.
8. Feedback should be taken from the present clients to know whether they are
satisfied and if they have any problems regarding the terms and service. This will
certainly help to improve the overall performance of the company.

9. Special schemes like Lucky Draws, Trip to foreign countries; Attractive prizes
could be used for promotion.

10. Should develop the plans that are attractive. Also they should develop new plans
that are not launched by any other companies to take first launcher advantage.
 ANNEXURE

1.Personal detail:

Name:

Age(Yrs):

Phoen No.

E-mail

Gender:

Office Address Residential Address

2.How will you rate following investment options on safety as parameter on scale?

a) 0-3 Poor

b) 3-7 Average

c) 7-10 Good

1.Insurance 2.Fixed Deposit

3.Post 4.PPF

5.Mutual Fund 6.Shares

7.Daily Collection

3.Do you think it is essential to have Life Insurance?

a) Yes b) No

If Yes, Why?

1.Safety/Security 2.Long term investment

3.Savings 4.Tax saving

4.Which of the following companies are you aware as insurance provider?

 1.ICICI Prudential 2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz 4.Tata AIG

4.Max New York Life 5.HDFC Standard Life Insurance

6.AVIVA Life Insurance

5. Which of the following companies you consider mast reliable to invest?

1.ICICI Prudential 2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz 4.Tata AIG

4.Max New York Life 5.HDFC Standard Life Insurance

6.AVIVA Life Insurance

If Yes, Why?

1.Brand Name 2.Safety

3.Peer-pressure 4.ROI

5.Previous experience

6.Do you have insurance cover or policy?

1.Yes 2.No

If Yes, which?

1.ICICI Prudential 2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz 4.Tata AIG

4.Max New York Life 5.HDFC Standard Life Insurance

6.AVIVA Life Insurance 8.SBI

7.Approximately how much money you invest in Life Insurance from your total savings?

1.Rs5000-Rs10000 2.Rs10000-Rs20000

3.Rs20000-Rs40000 4.Rs > 40000

8.What benefits you avail for investing money in insurance?

1.Child Education 2.Personal Goals

3. Marriage 4. Retirement

5. Savings

9.Are you aware about the Kotak Mahindra Life Insurance?

1.Yes 2. No

10.Are you aware about different plans of Koatk Mahindra such as;

1.Kotak Flexi Plan

2.Kotak Retirement Income Plan

3.Kotak Capital Multiplier Plan

4.Kotak Easy Growth Plan

5. Kotak Child Advantage Plan

11.In the near future would you be interested to buy any policy from Kotak Mahindra
Life Insurance?

1. Yes

2. No

3. Cant Say
 CONCLUSION

After all the research work it can be said that Private Insurance companies have good
market potential in the coming years. There is steady growth in all the companies from
last 2-3 years. Despite the fact that India boosts saving rates of around 25 percent, less
than 5 percent is spent on insurance. So there is lot of opportunities to tap the market
provided these companies create trust among the people.

In case of Kotak Mahindra Life Insurance, they need to develop a Brand name in
the market, which is only possible with effective advertising and good service. They
should promote their products throughout the country and target specific group or class
for each plan or policy. This will make them concentrate on all the plans, which means
maximum portion of the so market can be covered.
 BIBLIOGRAPHY

Company websites: www.kotak.com

www.kotaklifeinsurance.com

Research Methodology: C.R. Kothari

Marketing Management: Rajan Saxena

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