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PROJECT REPORT ON SALES FORCE MANAGEMENT Techniques Adopted By

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International Institute For Special Education OFF RING ROAD VIA KALYANPUR, LUCKNOW UNDER SUPERVISION OF: Mr. Ashish Bhatnagar PGDM Faculty IISE, Lucknow SUBMITED BY: Rajib Lochon Gogoi PGDM-2nd Year Enroll No-946

SUBJECT- Sales & Supply Chain Management ACKNOWLEDGEMENT


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I take this opportunity to sincerely thank Prof. Ashish Bhatnagar Faculty, IISE Lucknow who introduced me to the intriguing subject of Sales & Distribution Management and sharing his encyclopedic knowledge on the subject, which is going to be instrumental in shaping my career in the area of Sales & Distribution Management. Then I like to thank Mr. Arjun Sharma (sales Manager) who guided me and told me the whole process of the concerned company. He briefed me relevant and concerned information regarding my project. He told me about the success and the difficulties faced by the company. I am also thankful to Mr. Sunny Arora (assistant sales manager) who gave me his joining letter & salary plan which help me a lot.

Date: Place:

(Rajib Lochon Gogoi)

EXECUTIVE SUMMARY
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BACKGROUND: The forces of globalization and technological change have opened up new Opportunities as well as change to the industries, to serve the needs of the commercial enterprise, government organization, institutions and individual customers. The business environment has changed more in the last five years than it did in the previous five decades. Winning in todays business climate requires more than just providing high-quality, low-cost products to customers, when and how the customers want them. The ability to respond to new customer needs and seize market opportunities as they arise at the right time, without compromising on the profitability of the organization is critical for the success of any organization. Today the economy is changing its pace shifting economic needs. Companies are continuously trying to fulfill market need at very fast pace. They highly emphasizes on targeting the market by delivering the right thing at the right time & of course at the right time. This 20th century requirement of reaching the market as fast as you can with optimum efficiently lead to the rapid change of Sales & Distribution Management. Here in this project I try to unveil the Sales force management technique used by AVIVA LIFE INSURANCE with all its aspect. Problem statement: To identify the various Sales Force & supply chain Management Process used in AVIVA LIFE INSURANCE with the following objective. Objectives
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Identify an organization with its sales unit, preferably, in Lucknow What criterion is adopted in determining the size of the sales force? Study the Recruitment, Selection & Training process of the sales team. What is the structure of the Sales Force Organization? What are the sales quotas of different sales units and how are they fixed? Study the various components of the compensation plan. What is the procedure of performance evaluation? How is the post-production inventory managed? Which different stages (Transportation and Warehouse) are involved in the movement of finished product from the manufacturer to the customer? Role of IT in managing the Sales & Supply Chain activities Research methodology: The proposed research is exploratory & research based. The researcher try to achieve the objectives through self study, interviews of industry people, internet etc. all the aspect of the research is thoroughly covered with appropriate technical support. Major Findings: The AVIVA LIFE INSURANCE has a very efficient sales force with a very flexible HR polices. PREFACE
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Theoretical knowledge is one thing, and the practical application of the knowledge is other thing. Theories and ideas are successful only when they are practically implemented. Owing to this importance vested to practicality, I have undertaken this project. Through this I will try to reveal and analyze the importance of sales force management and its implementation at the corporate level. I will try to show how sales force management techniques are used successfully by an Insurance giant which has faced various competitions, named Aviva. The main onus will be on the sales force management technique adopted by this manufacturing firm. The firm adopts various strategies to enhance the performance of the employees and to bring out the best out of them. The report will see the extent to which these techniques were adopted and there result.

TABLE OF CONTENTS:

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1) ABOUT THE COMPANY 2) a) VISION b) PRINCIPLE c) MISSION 3) RESEARCH METHODOLOGY 4) RESEARCH OBJECTIVE 5) SCOPE 6) LIMITATIONS 7) INFORMATION ANALYSIS a) sales team b) compensation plan c) performance evaluation d) incentive and package e) role of it in managing sales and SCM f) recruitment, selection and training g) job appraisal techniques 8) CORPORATE HIERARCHY 9) CONCLUSION 10) 11) BIBLIOGRAPHY ANNXURE

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About the company : Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. With a history dating back to 1696, Aviva has a 40 million-customer base worldwide. It has more than 364 billion of assets under management. In India, Aviva has a long history dating back to 1834. At the time of nationalization it was the largest foreign insurer in India in terms of the compensation paid by the Government of India. Aviva was also the first foreign insurance company in India to set up its representative office in 1995. In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest Group of companies. A professionally managed company, Dabur is the country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. With a strong sales force of over 28,000 Financial Planning Advisers (FPAs), Aviva has initiated an innovative and differentiated sales approach to the business. Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Aviva pioneered the concept of Banc assurance in India, and has leveraged its global expertise in Banc assurance successfully in India. Currently, Aviva has Banc assurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and regional Banks. When Aviva entered the market, most companies were offering traditional life products. Aviva started by offering the more modern Unit Linked and Unitised With Profit products to the customers, creating a unique
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differentiation. Avivas products have been designed in a manner to provide customers flexibility, transparency and value for money. It has been among the first companies to introduce the more modern Unit Linked products in the market. Its products include: whole life (LifeLong), endowment (LifeSaver, EasyLife Plus), child policy (Young Achiever) single premium (LifeBond and LifeBond Plus), Pension (PensionPlus), Term (LifeShield), fixed term protection plan (Freedom LifePlan) and a tax efficient investment plan with limited premium payment term (LifeBond5). Aviva products are modern and contemporary unitised products that offer unique customer benefits like flexibility to choose cover levels, indexation and partial withdrawals. Aviva has 156 Branches in India (including rural branches) supporting its distribution network. Through its Bancassurance partner locations, Aviva products are available in close to 500 towns and cities across India. Aviva is also keen to reach out to the underprivileged that have not had access to insurance so far. Through its association with Basix (a micro financial institution) and other NGOs, it has been able to reach the weaker sections of the society and provide life insurance to them

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AVIVA LIFE INSURANCE IN INDIA: Aviva Life Insurance India is a private insurance company formed from collaboration between the Aviva insurance group of UK and the Dabur group, one of India's oldest and top producers of traditional health care products. Aviva's products are meant to provide customers flexibility, transparency and value for money. Aviva insurance group in UK with a history dating back to 1696, today stands as one of the leading provider of life and pension products to Europe and other parts of the world. The history of Aviva Life Insurance India starts at 1834 during nationalization when Aviva was the largest foreign insurance group in terms of the compensation paid by the Indian Government. In 1995 Aviva was the first foreign insurance company to start its representative office in India. At present in Aviva Life Insurance India, the Aviva group is a 26% share holder and the Dabur group holds 74% shares in the joint venture. Programme highlights of today

Aviva Life Insurance India has 40 Branches in India, including rural branches supporting its distribution network. With over 27,000 Financial Planning Advisers (FPAs) and the Financial Health Check (FHC) programme it has been successful in setting up its position in the Indian market. The FHC is a free service administered by the FPAs which analyses the customer's long-term savings and insurance needs and depending on the life stage and earnings of the customer it selects the proper insurance product for them. Aviva Life Insurance India initiated the concept of Bancassurance in India and at present it has Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara Bank, Centurion Bank of Punjab, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank, 11 Co-operative Banks in Gujarat, Rajasthan, Jammu & Kashmir, Bihar, West Bengal, Andhra Pradesh and Maharashtra and one regional Bank in Sikkim. This has helped to distribute Aviva products in nearly 378 towns and cities across India. Aviva Life Insurance India offers more modern Unit Linked and Unitized with Profit money products to the customers. Following the IRDA guidelines, with effect from 1 July 2006, these units - linked

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products have been modified. The products of Aviva insurance group of India are: o LifeLong o LifeSaver or EasyLife Plus o Young Achiever o LifeBond and LifeBond Plus o PensionPlus o LifeShield o Freedom LifePlan o LifeBond5

The fund management operations of Aviva Life Insurance India is controlled from Mumbai and the fund options includes Unitized With-Profits Fund and four Unit Linked funds: Protector Fund - The fund comprises of debt securities in the range of 60-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%. Secure Fund - The fund comprises of debt securities in the range of 50-100%, equities in the range of 0-20% and money market and cash in the range of 0-20%. Balanced Fund - The fund comprises of debt securities in the range of 50-90%, equities in the range of 0-45% and money market and cash in the range of 0-10%. Growth Fund - The fund will comprise of debt securities in the range of 0-50%, equities in the range of 0-85% and money market and cash in the range of 0-20%.

This fund provides investment security to the capital of the customers. Through their association with Basix (a micro financial institution) and other NGOs, Aviva Life Insurance India have been able to reach out to those underprivileged who had no access to insurances till day. In Aviva Life Insurance India, thus, by combining protection and long term savings the customers can safeguard and provide life products for their family with their changing need

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Vision: Where exceeding expectations through innovative solutions is our way of life This is the compelling vision that Aviva India has created through the active contribution of its employees. These lines not only define the way we live and work but also serve as a reminder to deliver the best to our customers, shareholders, colleagues, partners & employees at all times.

Embedded in this vision are the core values of Integrity, Customer centricity, Passion for winning, Innovation and Empowered team that we have collectively defined and committed to working towards. AVIVA BRAND AMBRASADDAR: Sachine Tendulkar--

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RESEARCH METHODOLOGY This project work is based on the sales and distribution of AVIVA. To gather relevant information, I used both primary and secondary data. Primary data I found visiting the branch office of the company and by meeting the company persons. Primary data are collected through survey and questioned asked from the sales and middle management people. Primary data take time to be collected and compiled and it is expensive too but it delivers authentic information as they are the first hand information. They gave us an opportunity to have an insight in the working culture of the company. Secondary data is collected through internet and word of mouths. Secondary data is less time consuming. The information gathered through secondary data is not very authentic but it gives some relevant and important information about the topic. On the basis of these data collected, I am able to complete my project work with some fruitful information. I have used random sampling for collection of data.

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RESEARCH OBJECTIVE Primary objective To conduct a research work on sales and distribution management of AVIVA and to find out the strategies used by AVIVA for sales management on the basis of information gathered. It is also to get an insight on the whole hierarchical structure of the organization and the reporting relationship adopted. SECONDARY OBJECTIVE To have knowledge of theories and practices of Sales and distribution management and their practical implementation in the industries for a better understanding of related concepts. And being a manager we are able to optimally use our sales force. SCOPE This project is based on sales and distribution management strategies adopted by AVIVA Life insurance. In todays era an efficient distribution channel and a competent and well trained sales force is very important to have an edge over the competitors and for long time profitability. For efficient and skilled management, it is very important for a manager to have thorough knowledge about the concepts related to sales and distribution management. Being a management student, this project helped me a lot to understand these concepts and their practical implementations and I am sure that it will help me in my coming future.

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ABOUT SALES TEAM: Aviva has a very lively sales team which deals with both business as well as retail clients. Besides new, Aviva Company has its corporate or registered office in almost all capitals of India. These offices are given there respective target which they are supposed to achieve in their target segment. It is the responsibility vested in the hands of the head of that branch, who further distribute the targets to his juniors. The sales team is required to report directly to their immediate superior and is individually responsible for the performance. Most of the sales force includes professionally qualified individuals. The sales person has to submit a daily sales report (DSR) to the concerned office. Aviva has many offices in Lucknow. The main branchs are in Hazaratganz & Aliganz. COMPENSATION PLAN Sales executives have a choice of commission based or Salary compensation plan according to their choice. Financial Planning Adviser: (FPA) There is no fixed incentive plan for Commission plan. The sales people who are in corporate sales i.e. group insurance or insurance of the employees of a organisation get some more incentive than those who are in retail sales. This incentive is only given to sales officer and assistant sales officer and is not given as they climb up the hierarchy due to promotion.

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If a FPA choose salary commission plan, then he gets a fixed salary & a fixed commission for each sale of polices. Bonus is given to all the employees and depends on the salary one is getting. Assistant Sales Manager: (ASM) They have a Salary commission plan where they get fixed salary & incentive for each sales of polices by FPA working under them. They have a monthly target which they have to fulfill. Unable to reach the target continuously for 3 months will effect there salary. Money is deducted from there salary account if they cant able to achieved the target. But if they are able to do it, there salary is revived. Others: (sales manager, branch manager etc) All employees that are above then ASM have a fixed salary plan. They got bonus and other incentive according to company pay role. PERFORMANCE EVALUATION Company has a highly organized assessment centre whose job is to look into the working of the employees and see to it where a corrective action is to be taken. The parameters like target met, exceptional performance, code of conduct, attitude and commitment etc. are taken in consideration before making any decision. The feedback of the seniors is taken to know the employees better. Only because of its very effective job evaluation and appraisal technique the company Aviva is able to survive & able to do a sound business in the highly competitive insurance market of India.
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INCENTIVE & PACKAGE: Sales executives get a fixed salary by the company and their incentive depends on business generated by them. There is no fixed incentive plan. It depends on the type and number of products sold. The sales people who are in corporate sales get some more incentive than those who are in retail sales. This incentive is only given to sales officer and asst. sales officer and is not given as we climb up the hierarchy. Bonus is given to all the employees and depends on the salary one is getting. Company has adopted a policy where bonus is paid not by cash but by shares of AVIVA. They also have a plan for group insurance. ROLE OF IT IN MANAGING SALES AND SCM The company has introduced SFA (Sales Force Automation) in there sales force management system. Aviva uses ERP software in there head office, where they get all DSR in a single mouse click. This software is purchased from Infosys India. They make their Sales force fully automated with proper information supply. They first generate lead through different channels and supply all the relevant information about the client to the concerned FPA. They used internet to send up-to-date messages to FPA regarding the client at any moment. Inhouse developed data-warehousing software on ASP and SQL platform displays all the client information in a single mouse click. A client can access his policy through internet from any part of the world with the unique client ID provided to him.

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They make there data warehousing fully automated. They daily enter sales report with proper format in the server. This gives them freedom from lendy manual entry of policies. The individual policies are assigned a 14 digit unique ID. This 14 digit ID represent the code number of the branch, the zonal office number & the client policy number. So, clients from Assam can inquiry about his policy in Mumbai. So this facility gives client freedom from regional barrier. Clients can use 24*7 helpline to solve their problem. A zero communication gap response gives Aviva a competitive edge then other rivals. Aviva have their call centers to solve customer enquiry. They have internet helpline to answer the FAQs. RECRUITMENT, SELECTION, & TRAINING: Aviva recruits through advertisement in news paper for the posts of asst. sales officer. They also go for campus placement in leading business schools. Selection is done through a written and interview and work experience in the concerned sector is given due importance. There is a full fledged HR team which is continuously trying to transform the whole selection process. But the minimum criterion for FPA is IRDA qualification. They arrange classes to train sales people so that they are able to qualify the IRDA examination. Aviva also have training school to train the sales people about their products. Continuous training is conducted to educate them about new products.

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JOB APPRAISAL TECHNNIQUES: The company has a solely dedicated HR system which is highly inclined to the proper development of the employees. Company has a highly organized assessment centre whose job is to look into the working of the employees and see to it where a corrective action is to be taken. These assessment centers see the whole promotional activities and postings of the employees. The parameters like target met, exceptional performance, code of conduct, attitude and commitment etc. are taken in consideration before making any decision. The feedbacks of the seniors are taken to know the employees better. Only because of its very effective job evaluation and appraisal technique the company AVIVA LIFE INSURANCE was ranked among the top 5 places.

NB: - IN ANNXURE I HAVE INCLUDED ALL THE MATERIALS REGARDING THE SALARY STRUCTURE IN A COMPLIED FORM OF A AVIVA LIFE INSURANCE EMPLOYEE.

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19 SALES FORCE HIERARCHY

CEO

SENIOR VICE PRECIDENT (V.P)

SENIOR VICE PRECIDENT

SENIOR VICE PRECIDENT

SENIOR VICE PRECIDENT

ASSOCIATE VICE PRESEDENT. (AVP) AVP

AVP

AVP AVP AVP AVP

AVP

REGIONAL MANAGER Z.M Z.M ZONAL MANAGER (CONTROLLING 3-4 BRANCHES) Z.M BRANCH MANAGER BM B M

BM

ASSISTANT TELE SALES ASSISTANT SALES ASSISTANT OPERATION

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Sales force management of Aviva Life

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CONCLUSION: The organization is very successful in the rightful implementation of the sales force management techniques. Aviva has been successful in providing immediate support and service to its customers through properly understanding their need and fulfilling those need though customized products. They are also pro-active in predict customers demand and due to very effective sales network are able to meet the demand at the right time. The company due to its very effective supply chain, research and development, and sales force management has created a name for itself which is now known for quality and reliability and there jingle KAL PAR CONTROL take the mouth of every Indian.

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BIBLIOGRAPHY:

Books referred Marketing Management by Philip Kotler

Class note of Sales & Distribution Mgmt- IISE, Lucknow Web sites www.google.com

www.avivaindia.com

Persons contacted 1. Mr. Sunny Arora Assistant sales Manager AVIVA LIFE INSURANCE LUCKNOW. Contact no. 0522-2200693
2. Mr. Arjun Sharma

Sales Manager-Direct Sales Force AVIVA LIFE INSURANCE LUCKNOW Contact no. 9335768431

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