Project Icici

TABLE OF CONTENTS 1. OBJECTIVES 2. THEORY AND CONCEPT 3. COMPANY PROFILE I. COMPANY II. VISION III. PROMOTERS IV. PRODUCT V. DISTRIBUTION 4. STRUCTURE OF THE SALES FUNCTION 5. IT INTEGRATION 6. RESEARCH METHODOLOGY a. PROBLEM&RESEARCH OBJECTIVE b. RESEARCH PLAN c. DATA COLLECTION 7. ANAYLISIS 8. FINDING 9. PORTER FIVE COMPETITIVE FORCES 10. SWOT ANAYSIS 11. BCG MATRIX 12. RECOMMENDATION AND SUGGESTIONS 13. BIBLIOGRAPHY

5 6 7 7 8 10 12 18 19 23 32 32 33 33 39 52 54 57 61 63 65

OBJECTIVES Financial market is one of the markets where there is lots of option for the Company, because this market is at the starting point or at the initial stage. ICICI prudential is a part of these financial markets who is selling the insurance as well as the mutual fund. The financial market mainly depend upon the investor who have the power of money to invest into the market in the form of insurance or mutual funds, and our objective was to find out investor who can be the future client of the company, our project “Synergy of High Net- Worth Individuals (HNI) With their Distribution Channel” ,which mainly focus on

finding out the

investment behaviors of the HNI clients, their mode of investment , and the people who can change their financial decision, because most of the HNI client usually take the Advice of the people who are close to them ,and has the knowledge about the financial market.

THEORY AND CONCEPT Financial market is one of the market, which had started to grow a few years ago, and with boom in this sector many private company came into existence, and ICICI prudential is one of them. The Financial market is mainly depend on the people who had enough money to invest, to get a good return out of it and our project aim was to find out those prospect who can invest heavily on the financial market and the source through which we can reach them, such as:• Bankers. • Chartered Accountant. • Investment Consultant It is general known that most of the heavy investor usually consults their bankers, chartered accountant or their Investment Consultant before taking any decision while investing, because they are the people who are generally close to them and know them very well, so our project was to find out, who are the people who can change their decision to ICICI Prudential favour .Most of HNI are usually depend upon their CA, because he is the person who control the financial detail of his client

and his decision are generally consider as one of the most valuable decision . So our main aim of the project was to find out the various details such as:• Chartered Accountants name • Chartered Accountant, Detail. • Clients Advisor • Bank Name

COMPANY PROFILE About ICICI Prudential:ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the financial year ended March 31, 2005, the company garnered Rs 1584 Crore of new business premium for a total sum assured of Rs 13,780

Crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors; as well as 7 Bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

ICICI Prudential Life is all about……

He alt

h

Total Protection

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We cover you at every step in Life Life

VISION To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. This is what company hopes to achieve:



Understanding the needs of customers and offering them superior products and service



Leveraging

technology

to

service

customers

quickly,

efficiently and conveniently. 

Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to Company’s policyholders



Providing an enabling environment to foster growth and learning for Companies employees

 And above all, building transparency in all Company’s dealings. The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describes what the company stands for, the qualities of people and the way they work. Company believes that it is on the threshold of an exciting new opportunity, where it can play a significant role in redefining and reshaping the sector. Given the quality of parentage and the commitment of its team, there are no limits to its growth.

PROMOTERS ICICI Bank:ICICI was founded by the World Bank, Government of India and representatives of the private sector in 1955 to encourage and assist industrial development and investment in India. ICICI Bank is India’s second-largest bank with total assets of about Rs.112, 024 Crore and a network of about 450 branches and offices and about 1750 ATMs. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank posted a net profit of Rs.1637 Crore for the year ended March 31, 2004. ICICI Bank’s equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).The Various segment of ICICI are .

Prudential plc:Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US$300 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. The company has six Bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord

Krishna Bank and some co-operative banks, as well as over 150 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. ICICI Prudential has recruited and trained about 2,14,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

Products Insurance Solutions

ICICI Prudential Life Insurance offers a range of innovative, customercentric products that meet the needs of customers at every life stage. Its 27 products can be enhanced with up to 6 riders, to create a customized solution for each policyholder.

Savings Solutions:•

SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection.

•

Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.

•

Save?n?Protect is a traditional endowment savings plan that offers life protection along with adequate returns.

•

CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.

•

LifeTime & LifeTime II offer customers the flexibility and control to customize the policy to meet the changing needs at

different life stages. Each offer 4 fund options- Preserver, Protector, Balancer and Maximiser. •

LifeLink II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.

•

Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75.

•

InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.

•

InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options.

•

InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.

Protection Solutions

•

Lifeguard is a protection plan, which offers life cover at very low cost. It is available in 3 options- level term assurance, level term assurance with return of premium and single premium.

Child Plans •

SmartKid education plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child’s life. SmartKid plans are also available in unit-linked form- both single premium and regular premium.

Retirement Solutions •

Forever Life is a retirement product targeted at individuals in their thirties.

•

SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

Market-linked retirement products •

LifeTime Pension II is a regular premium market-linked pension plan

•

Life Link Pension II is a single premium market-linked pension plan.

•

Invest Shield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses.

ICICI Prudential also launched- Salaam Zindagi, a social sector group insurance policy targeted at the economically underprivileged sections of the society. Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. •

ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations.

•

ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a

retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. •

ICICI Pru Group Term Plan: ICICI Pru?S flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.

Flexible Rider Options ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. •

Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the sum assured under the policy. If the death occurs while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit.

•

Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.

•

Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical expenses prior to death.

•

Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies, ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover is offered against 43 surgical procedures.

•

Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmartKid, SecurePlus and Cash Plus

•

Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and Cash Plus.

Keyman Insurance Plans

A keyman is an individual who directly affects the profitability and the continuity of a business and whose absence may have an adverse effect on the health and continuity of the business. Keyman insurance is a life insurance policy taken by the company on the life of such a key person. The objective of the Keyman insurance is to provide the company with money so that the financial losses to the company can be protected, in absence of the Keyman. The aim is to indemnify the company of these losses and to allow business continuity. All premiums paid for securing a Keyman life insurance policy are treated as business expenditure u/s 37 (1).

Mutual Funds A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them.

DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 74 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Anand, Aurangabad, Bangalore, Bareilly, Bharuch, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Guwhati, Gurgaon, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mehsana, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Saharanpur, Salem.

STRUCTURE OF THE SALES FUNCTION ICICI Prudential’s sales function is divided into two functional structures within the organization. These two Structures are:

 Bancassurance & Alliances  Tied Agency

Both types of structures are described as follows:

Bancassurance & AlliancesICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. Within a short span of two years, and with nearly a large number of partners, B & A has emerged as a vital component of the company’s sales and distribution strategy, contributing to approximately one third of company’s total business.

The business philosophy at B&A is to leverage distribution synergies with there partners and add value to its customers as well as the partners. Flexibility, adaptation and experimenting with new ideas are the hallmarks of this channel. The business philosophy at B&A is to leverage distribution synergies with its partners and add value to the business of both. Bancassurance Team includes: Banks  ICICI Bank  Federal Bank  South Indian Bank  Bank of India

 Lord Krishna Bank  Some co-operative banks

Corporate Agents

 Bajaj Capital  India Infoline  Way 2 Wealth  Advanced Financial Services (Karvy)  Blue Chip  AHS  APS  Strategic Marketing Pvt. Ltd.  S M Insurance  Investment Managers  Emgee Muthoot Insurance The hierarchy structure of the ICICI Prudential Life Insurance Ltd. is as follows:

o Branch Sales Manager (BSM)/ Center Sales Manager o Sales Manager(SM) o Assistant Sales Manager (ASM) o Team Leader (TL) o Financial Service Consultant (FSC)

Tied Agency: -

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large advisor force that targets various customer segments. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. With focus on sales & people development, tied agency has emerged as a robust, predictable and sustainable business model. Generally this advisors works under the leadership of unit manager, who motivate them in every step by providing training and guidance to them, usually each unit manager have 20 to 30 advisors under them. o Branch Sales Manager (BSM)/ Center Sales Manager o Sales Manager(SM) o Assistant Sales Manager (ASM) o Unit Manager (UM)

IT INTEGRATION The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia

Solutions Group that provides flexibility in designing better product offerings to end-users, the Solutions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application. The IT function is divided into two functional units and two staff units. Functional Units 1.

Systems Delivery

2.

Operations & Infrastructure

Staff Units

1.

IT Quality

2.

IT Architecture and strategy

Systems Delivery focuses on Business Analysis of processes and generation of business requirements in conjunction with the users, all activities within the Software Development Life Cycle (SDLC) starting with Business Requirements Analysis and ending with Implementation of a system that meets the requirement. These include vendor and platform evaluation and selection, system design, acceptance testing (Pre - UAT), and post implementation support. The systems delivery unit is aligned with the business organization by forming three vertical units: 1.

Core Insurance Systems

2.

Distribution and Access Channel Systems

3.

Corporate Systems

IT Operations focuses on operating the applications at the agreed level, as per user requirements. This include running end of period batch jobs, executing downloads & uploads, executing report runs and batch

queries, taking backups, maintaining tape libraries and executing review activities like security reviews etc. IT Infrastructure focuses on procuring, providing and maintaining the necessary hardware, Local network, branch network, e-mail network and internet access facilities in order to enable optimum automation across HO and all branches. This unit also provides local helpdesks at all required points. IT Quality focuses on improving SDLC and operations processes, defining benchmarks for both, collecting metrics, reporting compliance and publishing dashboards. It conducts process compliance reviews and in addition is responsible for framing the Information security policies. IT Architecture and Strategy evaluates existing architecture and strategies, and evolves the architecture that helps company maintain technical edge over competitors for the oncoming years. It is also evaluating new products, trends and strategies and conduct research into their applicability in Company’s domain.

The Capability Maturity Model for Software (CMM) is a framework that describes the key elements of an effective software process. The CMM describes an evolutionary improvement path from an adhoc.Immature process to a mature disciplined process. The CMM covers practices for planning, engineering, and managing software development and maintenance. When followed, these keys practices improve the ability of organizations to meet goals for cost, schedule, functionality, and product quality. The CMM establishes a yardstick against which it is possible to judge,

in a repeatable way, the maturity of an organization's software process and compare it to the state of the practices of the industry. The CMM can also be used by an organization to plan improvements to its software process. The CMM has 5 Levels, 18 Key Process Areas (KPA's), 316 Key Practices and 52 Goals. ICICI Prudential have opted the CMM To Meet Customer/Market needs.  To have Best Practices.  To look for higher maturity by ensuring repeatability.  Usage of Statistical results on Processes for Continuous Improvement.  A diagnostic tool to look into organization's strength and weaknesses.

The processes in the IT department are scaled to meet all KPA's from CMM level 3 A Software Engineering Process Group (SEPG) is a team of software professionals with the responsibility of driving and facilitating software process improvement efforts within an organization.

Formation of SEPG (Software Engineering Process Group) A management representative is the chairperson of the SEPG. SEPG chairperson ensures that a core of Professionals representing all the technical groups of all verticals and functional groups of the organization form SEPG. Members of SEPG are given either full time or part time responsibility for SEPG activities like defining process, transitioning technology and tools into the organization, piloting the process / technology improvements and deploying the process / technology improvements.  SEPG chairperson identifies the persons to carry out the tasks of SEPG  SEPG chairperson reviews the SEPG activities on a quarterly basis (or depending on the business needs) and he/she identifies the roles and responsibilities for the SEPG members on a rotational basis.  SEPG members are trained to perform statistical process control and analysis, technology transition, management activities, tool evaluation techniques and causal analysis.

 SEPG should consist of 6-8 members. Responsibilities of SEPG  Define organizational goals and measurement plans for software process performance in discussion with the Project Steering Committee.  Develop and implement software process at the organizational level.  Co-ordinate process / technology improvement activities at the organizational level.  Ensure members of the software team and other related groups receive orientation on the organizations software process activities.  Internal process assessment.  Maintain the organizations software process assets.  Explore potential areas for applying new technology.  Identify, select and evaluate new technologies.  Incorporate Effective process / technologies into the organization based on the organizations business plan and goals.  Review SEPG Activities

 Review and approve Software Process Improvement Plan ICICI Pru has defined 15 processes that cover the entire Software Development Life Cycle (SDLC) of a software project. Each process has artifacts associated to facilitate data collection during various stages, track changes and monitor the progress of the project/enhancement.

The processes are as follows. Management Responsibility Defines the management's accountabilities, responsibilities, and commitment towards continuous support for the software quality system and process improvement. Software Quality System Defines the way the software quality system is structured and provides guidelines to make any changes to the same.

Requirements Management Outlines the activities involved in gathering, analyzing, reviewing and approval of requirements. Manages changes to requirements and project initiation activities.

Estimation – Outlines the estimation methods to be followed and managing changes to estimates. Project Planning and Tracking – Describes the activities involved during the planning stage of a project, provides means to monitor and control the progress of the project. Software Subcontract Management – Outlines defining the work to be subcontracted, agreement on commitments with the subcontractor, planning; tracking and QA of the subcontracted work. Reviews – Describes the steps involved in carrying a review activity and documenting the findings of the review.

Design and Coding – Outlines the steps involved in translating the software components identified in the design document into software units that can be coded compiled and tested.

Testing – Outlines the steps involved in Planning and carrying out Testing of the software components. Software Quality Assurance – Outlines the activities carried out by the SQA Software Configuration Management – Outlines the process involved in preparing the Configuration management plan, identifying and base lining the configurable items, steps involved in releasing the tested software. Enhancement and Post Production – Outlines the processes to be followed for activities related to minor, medium and production related issues. Process Improvement – Outlines the activities to be carried out for Software Quality System Improvements.

Measurements – Describes the measurements to be collected at various stages of the project and the analysis to be done. Post Project Evaluation –

Mentions the activities involved in evaluating the performance of the project after its completion.

SIX SIGMA IMPLEMENTATION BY ICICI PRUDENTIAL. ICICI Prudential is one of a handful of companies in the service industry, which had the mettle to take up the six-sigma initiative. It's quite some time now since ICICI Prudential took up this quality initiative and since then they have grown beyond expectations. As another step towards becoming a world-class service Organisation, ICICI Prudential have blended quality in the form of six sigma into all their processes and systems. And that gave birth to a hybrid "Business Excellence" team with the people making processes and ensuring quality coming together to cut down cost and process inefficiencies.Some of the figure of the sigma level are :

Expense Processing MIS:-

Policy Issuance Sigma Level:-

Policy Issuance Sigma Level – HNI

J ET (Login to Customer Received)

Accuracy MIS 1. Accuracy MIS presents the number of error caught at various stages of policy issuance

J ET (Cheque Date to J ET (Cheque Date to

2.

Branch Discrepancy: Any error caught in the application form or underwriting sheet before data entry at COPS.

3.

Call Back Error: All errors identified at post issuance call back stage.

4.

Correction Complaints: All complaints received for errors on contract details

5.

Opportunities: All contracts issued in previous month

• Data Capture: Error done while filling application form • Data Entry Error: Error done while doing data entry at COPS

S ta g e

• Underwriting Error : Error done by underwriters

Service – Overall

6

Categ 5 Level

Compla 4 Reque 3

RESEARCH METHODOLOGY Research is one of the most important parts in the survey to collect information and knowledge. Marketing research is defined as the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company.

Problem and Research Objective Our main objective was to find out the top HNIs (High net worth income) group and their various mode of investment. The main problem was how to find out the top twenty HNI clients from the bunch of people without knowing them in detail. To get all this information a thorough planning had to be done, so I first started with designing the questionnaire for the clients whom I was going to target and to know about their investment pattern. The main things to be known from the clients were:

1.

There Annual turnover

2.

Who are there bankers

3. There chartered accountant 4.

Who influence there investment decision

5. What is there annual investment Research plan The research process depends upon developing the most efficient plan for gathering the needed information. Designing a research plan calls for decisions on the

data sources, research approaches, research

instruments, sampling plan, and contact methods. Our objective was to find the “Synergy of HNIs with there Distribution Channel”. This objective had made our project too narrow because from now onward our task was to find the top industries and person who can invest above 1 crores and more then that. So from now onwards I started to target only to a special segment of the people. Data source For this project both primary and secondary data were the most valuable source of information. Secondary data:Secondary data provide a starting point for research and offer the valuable source of information. The secondary data was the most important source for my project because my first aim was to find out the top five person or industries

from every segment of the industries so for this reason I started collecting the various directory which can help me in finding out the desired information about the industries and people. The various directories are as follows: Telephone Directory.  Income Tax office.  City directory.  Chartered Accountant Directory.  Carpet Industries Directory.  Hotel Industries Directory.  HDFC Banks.  Indian medical association directory.  Transporter directory.  Exporter Directory.  Lawyers Directory.  Builders & Constructors Directories  CNF

Primary data:-

Primary data are data freshly gathered for a specific purpose. The various sources of primary data for my project are as follows.  Banks.  Local residents.  People from industries Research Approaches:From the two data source which I have mention above secondary data are the easiest way to gather and the cost of collecting this data is very low and easily available from the respective association. And I started by collecting this directory from the various sources, because at the starting point of the survey this information play a important part for me and this help me to short out the people which, I can meet with them to collected more information about them or who are my target people. After collecting the secondary data or information from the secondary sources then I started collecting from primary sources to narrow down my research. There are basically five ways to collect data. 

Survey Research: - This method was the most appropriate way to collect data. And I have used this method in my project to find out the company need by

identifying the suitable prospect in the city who can become the ICICI pru client. 

Observational Research:- This method was not used by me in my project ,because this survey have no use for me



Focus-group Research: - This method is also not used by me in my survey.



Behavioral data:-This method was also not used by me in my survey.

Research Instruments:There is various way of research instrument of collecting primary data, the various methods are:1. Questionnaires. 2. Psychological tools. 3. Mechanical Devices. 4. Qualitative Measures. From the above mentioned research instruments I had used only Questionnaires technique to find out the various information about the clients such as their turnover, chartered accountant, investment behaviors, who is their financial consultant etc. And this was the

technique which I felt the best way to extract information about the client Sampling Plans After collecting entire data and deciding on the research approach and instruments, now I had to decide on the sampling plan which was one of the important task, because from the bunch of people I had to select only those people ,whom I can target from now onward .There are three way of sorting the data. o

Sampling Unit: - who is to be surveyed? And now my task was to define the target population, which will be sampled from the number of people.

o

Sample Size: - large sample give more reliable result than small sample, so for this reason I had taken around 40 people to whom I should focus upon, because my target was only 20 clients.

Contact Methods:Once the client had been decided now my task was how to contact them ,and for me there only two ways of contacting them . 1.

Personal Interview: - this method was the most appropriate way of survey, because by personal

interview I came to know their feeling about the ICICI. Their personal behavior and many more things. 2.

Telephone: - This method is also used by me for once, because the client had no time for me, and there was no other option for me.

Major Industries of the city: Varanasi is usually considered as the land of Temple but it will be not wrong, if we say that it is also the land of rich people. The Various Industries of the city are:• Sarees Industries. • Carpet Industries. • Oil Industries. • Hotel Industries. • Transport. • Textile Industries. • “Etc”

ANALYSIS OF DATA CHART Return clients are looking at:-

R e tu r n c lie n ts a r e lo o k in g a t 10%

5%

40% 45%

L e s s th a n 1 0 % B /W 1 0 -1 5 % B /W 1 5 -2 0 % A bove 20%

Returns client are looking at From the Above Pie chart, it is clear that most of the client are looking above 15% , this is because they are getting more return from their earlier investment such as in the business and in real state, this shows

that they are willing to take more risk to get more return from their investments The second largest group is between 10% to 15%, this shows that most of the businesses man wants to balance the risk and return of their investment so that there is no big loss in the future. Around 85% of the clients comes under this two category ,this shows that most of the clients are ready to take risk for their investments.

Mutual Fund Preference Chart From the below pie chart, preference of the clients for the various mutual funds is depicted. In this Mutual Fund preference, HDFC emerge as the winners closely followed by Prudential ICICI. This is mainly because at present there is not much option for the client in the city, and secondly ICICI prudential and reliance, have opened their branches in the city recently. While some clients like to invest in other mutual funds as well.

M u tu a l F u n d P re fe re d

40%

40%

HDFC P r u d e n tia l IC IC I M u tu a l IP O

20% Preference of Clients between Nationalized and Private Banks

P r e f e r e n c e o f C lie n t

N a tio n a li ze d B a n k P riv a te B a n k

From the above chart it is very clear that the nationalized banks are far ahead in compare to private banks. There are many factors, which are affecting the decision of the people. 1.

Nationalized banks are operating for many years in the city and the private banks had opened their branches, a few years an ago.

2.

Most of the nationalized banks employees are local residents which plays an important role in customer relation.

3.

The customer relationships of the nationalized banks are very old and for this reason customers are not willing to change their banks.

4. most of the clients wants a special attention to them while their visit, and this is very well done by some of the nationalized banks .while the private banks are unable to do this. 5. most of the private banks are using metro city style of behavior while dealing with the clients and this behavior are not liked by most of the people 6. Some of the private banks are charging more money for their service, especially in preparing draft and other transaction. While

nationalized banks are not charging at all or very less in compare to private banks. 7.

There are more branches of the nationalized banks in compare to private banks, which makes people more interested in the nationalized banks.

S ta te B a nk o f

N a tio n a liz e d B a n Ind k s ia

B a nk o f Ind ia 6% 11%

11%

6%

6%

60%

Unio n B a nk o f ind ia P unja b Na tio na l B a nk C e ntra l B a nk o f Ind ia A lla ha b a d B a nk

From the above chart it is very clear that Union Bank of India is the leading nationalized bank of the City. It has 60% share in the banking segment. The factor which favor them are: 1. The service of the union bank is far better then any nationalized banks in the city. 2. Union bank provide additional facilities to its HNI clients. 3.

They have better relationship with their clients.

4. Union banks if India had more branches in the city ,which makes their clients easy to reach to their branches. PRIVATE BANKS CHART

P r iv a te B a n k s

50%

50%

IC IC I B a n k HD F C B a nk

PRIVATE BANKS: - the pie chart shows the preference of the client for the various Private Banks. It is very clear from the chart that ICICI Bank and HDFC are the two leading private banks of the city. This is mainly because. • These two banks are the first private banks which has opened their branches in the city.

•

ICICI and HDFC brands name, play an important part in their success in the city because people usually go through the name the company. AGE BRAKET OF THE IINDUSTRIES

A g e B ra k e t 5%

60%

20%

15%

L e s s th a n 5 y e a rs B /W 5 -1 0 y e a rs B /W 1 0 -1 5 y e a rs A b o v e 1 5 y e a rs

From the Above Chart it is very clear that most of the industries are very old. • Around 60% of the industries are more then 15 years old, this shows that they have a strong financial backing. • They are very much stable in their fields or segment

11% 5%

B a nke r In te r n a l A d v is o r s S e lf D e c is io n

84%

•

Form the above chart it is clear that most of the HNI relies on their own decision, there are around 84% of the people who wants to take their own financial decision because either they do not wants to share their investment decision with other or they thinks that they are more intelligent to take decision of their own.

•

Secondly bankers are more prefer by the HNI, this is generally because banker are the people who generally interact with them and secondly HNI believe on their bankers because of the relationship .

Bank FD RBI Bond

20%

34%

5% 2% 22%

17%

M u tu a l F u n d U n i t L in k e d P la n / In s u r a n c e R e a l E s ta te B a c k in to b u s in e s s

Preference investment Instrument Business emerge to be the most preferred investment instrument of the clients with maximum 34% of clients from all the clients preferring this as their favorite investment option Because, it gives more return then any other investment.



Bank FD emerges out to be the second most preferred option for the clients to invest in the market. This is also dependant on various reasons which are given as under: o Easy loans available against the Bank Fixed Deposits.

o Clients can withdraw their money at almost anytime giving them the option of maintaining Liquidity. o With all this Bank FD also provides a decent return concerned the minimum of the risk in any of the available investment instruments. o We have seen above in the analysis of nationalized vs. private banks that nationalized banks are the more preferred ones, this also adds weight to clients preferring Bank FDs due to trust build during all these years. Then, next preferred option for the clients is Unit link plan/Insurance.

T e n u re o f F D p re fe re d 25%

50% 17% 8%

S h o rt T e rm (L e s s th a n 2 y e a rs ) M e d iu m T e r m ( B / W 2 -5 y e a rs ) L o n g T e rm ( M o re th a n 5 y e a rs ) N ot Know n

we can see from the above chart that there are majority of clients (from the clients who have disclosed this data) prefer the short term fixed deposits as their favorite option. Most of the clients use the ideal money which they have to meet the uncertainty or short term requirement.

INSURANCE PARTNER PREFERENCE CHART

In s u r a n c e P a r t n e r P r e f e r e d

7%

13% 47%

33%

L IC HDFC IC IC I P r u d e n ti a l O r i e n ta l In s u r a n c e

This chart show the preference of the people who had invested in the insurance sector, and from the chart it is very clear that LIC is the leading company in this field, because of many factors such as:-.

 LIC is leading in this field mainly, because it is the first mover in the insurance sector and had capture most of the market by being first mover in this sector  LIC had a very good network of agents, and those are the back bone of the company.  LIC had provided better service in the past which had made trust in the mind of the people and for that reason they feel more comfortable. 

HDFC and ICICI Pru are the second in this field mainly because they had opened their branches recently and slowly they are capturing the market

and in the future the ratio is decrease,

because there are many opportunity to cash in company .

by both the

FINDING 

Most of the HNI client prefers the nationalized bank in comparison to private banks.

The most common reason is that the public banks are operating for many years and they have developed a good relationship with their client and this is the reason why the HNI are not eager to move to the private banks. Secondly, most of the clients want a special attention to them while their visit and this is very well done by the public banks (especially by the union banks of India,) because most of the employee in the public banks are local residents and they have their personal contact with them. 

Telephone Calling by the ICICI bank and ICICI prudential Advisors are disturbing the clients-

There is excess calling by the employee of the icici banks and by the Advisors of ICICI Prudential, and this is one of the reasons why they are not interested in the bank nor in ICICI prudential, and the other reason is

that most of the time Advisors try to meet the HNI clients without prior notice, this create a bad impression about the company. 

Most of the HNI clients, Money are kept ideal in the banks –

This is a very good opportunities for the icici prudential to cash most of the HNI client in varanasi, because there is not much option for them for investment and most of the client prefer to keep a good amount of cash with them for uncertainty and for other reasons.  In the insurance sector LIC is the number one company prefer by the peopleLIC is the most prefer insurance company in the country, this is because of the brand name and LIC is also the first mover in the insurance sector and this is a great advantage for them. There are lots of things which favors them are. 

The company image in the mind of the people

 The life long service of the company  A very good channel of people (agents) 

Very good relationship with their clients



Lack of information or knowledge about the private Insurance Company.

PORTER FIVE COMPETITIVE FORCES Competitive Force: Michael Porter has identified five forces that determine the intrinsic long-run profit attractiveness of a market or market segment. • Industry competitors • Potential entrants. • Substitutes. • Buyers. • Suppliers.

Threat of Intense Segment Rivalry: A segment like insurance sector which is very attractive because, it is in the growing stage of the life cycle, and these makes this segment attractive but on the other hand it already contains aggressive competitors such as: • Life Insurance of India. • Bajaj Alliances • ICICI Prudential Life Insurance. • HDFC. • Franklin Templeton. • Reliance. • Unit trust Of India. Etc.

The numbers of Competitors are less in the Insurances sectors that makes this Sector attractive to most of the financial companies. So, for that reason ICICI prudential have a tuff competition with other competitors in this segment and secondly icici Pru had an experience of five years of this segment but on the other hand the company like, LIC had more then 20 years of experience of this market. So for ICICI

prudential there is threat mainly with the LIC. And in future this can lead to frequent price wars, advertising battles and new-product introductions and will make it expensive to compete. But overall this segment is very attractive.

Threat of new entrants: Segments attractiveness varies with the height of its entry and exit barriers. If we look from this angle then this segment is moderate because the entry barriers are high for the foreign companies, because of the restriction imposed by the Indian government on them, such as, they can have a maximum of 26% stage in the company and secondly the companies should have certain amount of money with them as mention by the govt. and the exit barriers are low. This means that few new firms can enter into the industry and poor-performing firms can easily exit and for this reason, this segment is more attractive for the companies.

Threat of substitute Product: -When we considers on the substitute products, this segment is unattractive because there are many actual and potential substitutes for the product of ICICI prudential and all the

competitors have almost similar product or plans, but they mainly differ in the service point of view. Threat of Buyer’s growing Bargaining Power: -This segment is unattractive because the buyers possess strong or growing bargaining powers such as: • The buyer’s switching cost is low in the financial investment sectors. • The product is undifferentiated because most of the companies in the insurance sector provide almost same policies and investment plans.

Threat of Suppliers Growing Powers: - In this segment, the suppliers bargaining power is more, because banks and CA are the easiest and the important channel to reach the client and for that reason they have the strong bargaining power.

SWOT ANALYSIS STRENGTH:

Brand Name of ICICI:-The name of the ICICI is known in all over the country as number one bank in the private sector and this is the name which people have trusted for many years, which is mainly due to the ICICI Bank. So ICICI Prudential, do not have the crises of the brand name



STRONG FINANCIAL BACKING: - the ICICI prudential had a strong financial backing from their promoter, (ICICI BANK and

Prudential), which help the company to build trust on the mind of the people. 

STRONG SALES FORCE: - The Company has a very strong force of good marketing brain, which gives an edge over the other competitor especially nationalized insurance company like LIC. And secondly it has a very good distribution channel which helps the company to get more clients from these reliable sources. These channel include Allied Banks like

 ICICI Bank  Federal Bank  South Indian Bank  Bank of India  Lord Krishna Bank  Some co-operative banks Corporate Agents

 Bajaj Capita  India Infoline  Way 2 Wealth  Advanced Financial Services (Karvy)

 Blue Chip  AHS  APS  Strategic Marketing Pvt. Ltd.  S M Insurance  Investment Managers Allied Corporate AgenciesStrong Marketing and Sales Promotion team



ULIPs: Almost 90% of the total business of ICICI Pru is the business with the sale of ULIPs and only 10% of the products are the traditional insurance policies. So this is the strength which ICICI Pru can work upon more to get the maximum positive results.

WEAKNESS:

Lack of Information about the product:-Most of the product of the ICICI Prudential are known by the people, this is because of lack of

information about the product and bad marketing

strategies by the company mainly in small cities



FOCUSING MAINLY ON THE URBAN SECTOR:-ICICI prudential mainly focus on the urban sector of the country, where the competition is very tuft and are not concentrating on the other sector of the country mainly in the rural sector where there.



Most of the Plans are too complicated:-ICICI Prudential insurance plan are too complex to understand for a layout person, and this makes most of the people to avoid this plan because they feel difficulties to understand. The same is in the case of Mutual Funds.

OPPORTUNITIES:

A large Part of cities are uncovered: - A large part of the cities are uncovered by ICICI Prudential life insurance where they do not have any branches.



Some Top Nationalized banks should be made Allies: - There are large parts of the cities were Nationalized banks have large number of clients in compare to private banks, this is mainly because they are operating for such a long time and there is a good opportunities to converted those customer into ICICI prudential customer, By making them allies.



There is a good opportunities to increase the Advisors base: when we compare the ratio of Advisors with LIC, then we will find that there is a large gap between them, so there is an opportunities to increase the advisor base by breaking the agents of LIC.

Threats:

LIC: - LIC is the greatest threat to ICICI prudential in the area of insurance sector, because it is one of the oldest insurance company in the country, and have a large size of the customer abase.



Threat with some private banks: - there are some banks which are providing these services to their customer. And slowly taking away a good market share.

BCG Matrix

CASH COW: Tied Agency: -Tied agency are cash cow for ICICI prudential because they are the people who brings more customer to the company and cover a large area of the city and the cost of keeping them is very less because advisors works on the commission basis the this is the reason why they works so hard. Around 30 to 40 advisors work under one unit manager. The cost of maintaining them is very less in comparison to the other department.

STAR: BANKERS:-Bankers are star of the company when we plot in the BCG matrix, because most of the HNI which the company gets is through the Bankers this is because most HNI have their Account in the Banks and they also rely on the banks for their investment. Secondly people recognized ICICI prudential as a part of ICICI bank and ICICI bank name is used by the ICICI prudential to get more customers and usually customer trust ICICI prudential because of ICICI banks.

Question Marks:Corporate; - Corporate allies come under the Question marks because the city like Varanasi, where most of the decision are taken by the HNI themselves, with little help or no help with their Chartered Accountant, but there is a greater chance, if we convince their CA and through them we can reach to their client very easily and in future they can become star for the company but lot of investment is required. Dogs:No one at present;-As Insurance sector is at the growing stage, so there is no dog for the company at present and in future ,which are on the three section can become dog for the company

RECOMMENDATION AND SUGGESSTION •

Lack of information about the service provided By the ICICI prudential life insurance: -

Most of the client whom I meet during my survey told me that they were unaware of the service and scheme, which the company is providing to the people. This is mainly because of the lack marketing their product by the company. So I suggest that the company should market its brand in more aggressive manner. •

Start Making Link with the Nationalized Banks to get more Business:-

When we look at the Small city like Varanasi, most of the HNI client prefer and have their account in Nationalized banks, because this banks are giving good service for many years and If ICICI prudential can make tie-up with the employees of this banks then they can be able to get more business from this contact. • Service of the ICICI bank should be improved: What I hear in Varanasi is that most of the HNI do not want to do business with the ICICI banks, and this is mainly because of their service and the banks do not give preference to them and there are

many restrictions in their operations. So I suggested that some staff should be made to look after them, because they are the customers who mainly give us the business. • Access Telephone Calling should be stopped: Most of the time, clients get disturb because of telephone call made by the advisors of ICICI prudential and bank. I accept that this is the most successful mode of contacting the people, but access calling create a wrong impression in the mind of the customer. • Image of the ICICI should be improved in the City: Most of the time people do not want to do business with the ICICI, because of the Hidden cost which they come across while dealing with the bank. •

More focus is given to the industrial class then the service class: -

ICICI prudential are concentrating more on the industrial class then the service class. It is generally known that more insurance are made by the service class to get reduction from the Tax, so we should also focus on the service class because they are the people who wants to secure their life by investing in the insurances sector and in the mutual funds. So I suggest that concentration should be given to this

class also because the ratio of the service class is much high in the country. •

More Local Employee should be hired by the company: -

The local employees will have their contact in the city and this can be use by the company to get more business from their contact and This will add additional benefit to the company

BIBLIOGRAPHY Internet Websites: 

www.iciciprulife.com



www.icicibank.com



www.google.com



www.bima.com



Telephone Directory.



Income Tax office.



City directory.



Chartered Accountant Directory.



Carpet Industries Directory.



Hotel Industries Directory.



HDFC Banks.



Indian medical association directory.



Transporter directory.



Exporter Directory.



Lawyers Directory.



Builders & Constructors Directories

Directories:



CNF

Other Materials: 

Marketing Management by Philip Kotler.



Finsight (Level 1).



Product Brochures.