Rishi Ranjan Hdfc Project

CUSTOMER-BUYING BEHAVIOUR WITH A FOCUS ON MARKET SEGMENTATION

PLACE : GUNA STATE : MADHYA PRADESH A SUMMER TRAINING REPORT SUBMITTED IN PARTIAL FULMILMENT FOR THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION 2007-2010 GUIDED BY:

SUBMITTED BY:

Ms ANSHUL SHRIVASTAVA (HOD) MANAGEMENT DEPARTMENT

MR RISHI RANJAN

SUBMITTED TO

DEPARTMENT OF MANAGEMENT JAIN COLLEGE GWALIOR (AFFLIATED TO JIWAJI UNIVERSITY GWALIOR)

STUDENT DECLEARATION

I RISHI RANJAN hereby declare that this Summer training report entitled,”Customer-buying behaviour with a focus on market segmentation” is carried out by me at HDFC SL, GUNA under the guidance of Mr RISHI

RANJAN for partial fulfillment for the award of the degree of, Bachelor of Business Administration at Department of Management Jain College, Gwalior(M.P).

DATE PLACE

RISHI RANJAN

GUIDE CERTIFICATE

It is certified that the Summer training report entiteled, “Customer-buying behaviour with a focus on market segmentation” is submitted by Mr. RISHI RANJAN for partial fulfillment for the award of the degreeof Bachelor of Business Administration at Department of Management, Jain College,Gwalior(M.P).It is a record of candidate’s own work carried out at HDFC SL,GUNA(M.P)

(R. KANDU) Area Trainee Manager(HDFC SL) Guna(M.P)

ACKNOWLEDGMENT

The completion of Summer training report entitled ‘Customer-buying behaviour with a focus on market segmentation’ give me an opportunity to convey my gratitude’s to all those who have helped me to complete this research work successfully and well within time.

I would like to express my deep sense of gratitude to R. KANDU to give me an opportunity to do my project work at HDFC SL, GUNA I am sincerely thanks to my guide for his ideas and suggestion during my project work which inspired me to put in best my efforts in the research work. I would be failing in my duties if I do not express my overwhelming sense of gratitude to Mr. Manoj Jain ,Chairman, Mr. Sanjay Jain and Ms. Mayuri Chaudry, Director, Jain College, Gwalior(M.P). I owe utmost thanks, Ms. Anshul Shrivastav H.O.D MGMT DEPT. Jain College, Gwalior(M.P). for their valuable suggestion and discussion made throught my research work.

In the last I would like to thank all individuals known or unknown who have helped me directly or indirectly during the research fellowship period. I must say that all of those great people have done their social job, which I will also like to obilige others in from of similar or even better support throught my life.

Ms. Anshul Shrivastav

RISHI RANJAN

INTRODUCTION OF PROJECT In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life Insurance Company. First attempts at regulation of the industry were made with the introduction of the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given to the Government to collect statistical information about the insured and the high level of protection the Act gave to the public through regulation and control. When the Act was changed in 1950, this meant far reaching changes in the industry. The extra requirements included a statutory requirement of a certain level of equity capital, a ceiling on share holdings in such companies to prevent dominant control (to protect the public from any adversarial policies from one single party), stricter control on investments and, generally, much tighter control. In 1956, the market contained 154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban areas and targeted the higher echelons of society. “Unethical practices adopted by some of the players against the interests of the consumers” then led the Indian government to nationalize the industry. In September 1956, nationalization was completed, merging all these companies into the socalled Life Insurance Corporation (LIC). It was felt that “nationalization has lent the industry fairness, solidity, growth and reach.”

Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute 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 businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance The General Insurance industry in India dates back to the Industrial Revolution and the subsequent increase in trade across the oceans in the 17th century. As for Life Insurance, the British brought General Insurance to India, and a similar path was followed in the development of this industry. A number of private companies were in existence for years and years until, in 1971, the Indian Government decided that the public interest would be served by nationalizing the industry, merging all the 107 companies into four companies, depending on the sort of business transacted (Marine, Fire, Miscellaneous). These were the National Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India Assurance Company Ltd., and the United India Insurance Company Ltd. located in Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four companies as its subsidiaries.

Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four company’s viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA  Life

Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the message of life insurance in the country and mobilize people’s savings for nationbuilding Activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 laky active agents spread over the country. The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken- India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.

Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension policies in U.K. In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, Laic’s income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US). LIC has even provided insurance cover to five million people living below the poverty line, with 50 per cent subsidy in the premium rates. Laic’s claims settlement ratio at 95 per cent and Gig’s at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth rate for Life insurance business has been 19.22 per cent per annum General 

Insurance Corporation of India (GIC)

The general insurance industry in India was nationalized and a government company known as General Insurance Corporation of India (GIC) was formed by the Central Government in November 1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers which were operating in the country prior to nationalization, were grouped into four operating companies, namely, (I) National Insurance Company Limited; (ii) New India Assurance Company Limited; (iii) Oriental Insurance Company Limited; and (iv) United India Insurance

COMPANY PROFILE

ABOUT HDFC STANDARD LIFE INSURANCE HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Ltd.), India's leading housing finance institution and a Group Company of the Standard Life, UK. HDFC as on December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC STANDARD LIFE INSURANCE PARENTAGE HDFC Limited. •

HDFC is India leading housing finance institution and has helped build more than 23, 00,000 houses since its incorporation in 1977.

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In Financial Year 2003-04 its assets under management crossed Rest. 36,000 Cr.

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As at March 31, 2004, outstanding deposits stood at Rest. 7,840 cores. The Depositor base now stands at around 1 million depositors.

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Rated AAA by CRISIL and ICRA for the 10th consecutive year

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Stable and experienced management •

High service standards

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Awarded The Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development.

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Presented the Dream Home award for the best housing finance provider in 2004 at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries) •

Standard Life Group (Standard Life plc and its subsidiaries)

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The Standard Life group has been looking after the financial needs of customers for over 180 years

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It currently has a customer base of around 7 million people who rely on the company for their insurance, pension, investment, banking and health-care needs

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Its investment manager currently administers £125 billion in assets

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It is a leading pensions provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and as 'good' with a rating of A1 by Moody's

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Standard Life was awarded the 'Best Pension Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5 star life and pension’s provider at the Financial Adviser Service Awards for the last 10 years running. The '5

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Star' accolade has also been awarded to Standard Life Investments for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine Awards in 2006

HDFC KEYS STRENGHS FINANCIAL EXPERTISE

As a joint venture of leading financial services groups, hdfc standard life has the financial expertise required to manage your long-term investments safely and efficiently. range of solutions we have a range of individual and group solutions, which can be easily customised to specific needs. our group solutions have been designed to offer you complete flexibility combined with a low charging structure. track record so far our gross premium income, for the year ending march 31, 2008 stood at rs. 4,859 crores and new business premium income stood at rs. 2,685 crores. the company has covered over 9, 59,000 lives year ending march 31, 2008. corporate objective

VISION

Providing long term financial security to our policy holders will be our constant endeavour. We will be do this by offering life insurance and pension products. We appreciate the trust placed by our policy holders in us. Hence, we will aim to manage their investments very carefully and live up to this true. Recognizing the different needs of our customers, we will be offering a range of innovative products to meet these needs. Our mission is to be the best new life insurance company in India and these are the values that will guide us in this

MISSION

We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market, rather it is a combination of several things like

Customer service of the highest order



Value for money for customers

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Professionalism in carrying out business

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Innovative products to cater to different needs of different customers

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Use of technology to improve service standards

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Increasing market share

OBJECTIVE

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.Integrity

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.Innovation

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.Customer centric

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.People Care One for all and all for ones

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.Teamwork

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.Joy and Simplicity

ORGANIZATIONAL STRUCTURE

The insurance sector was opened up in the year 1999 facilitating the entry of private players into the industry. With an annual growth rate of 24.31 percent and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge. The year 1999 saw a revolution in the Indian insurance sector, as major structural changes took place with the ending of Government monopoly and the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. According to the CSO, the insurance and banking services’ contribution to the country’s GDP is 7.1 percent out of which the gross premium collection forms a significant part. Life insurance penetration in India was less than 1 percent till 1990-91. During the ‘90s, it was between 1 and 2 percent and from 2001 it was over 2 percent. In 2003-04 it was 2.4 percent.

The impetus for increase is due to the active role played by IRDA in licensing private players and taking positive steps in increasing the insurance awareness among the people. Besides, the insurance companies in general and private insurance companies in particular, are reaching out to untapped potential in rural areas with aggressive campaigns. Innovative products, smart marketing, and aggressive distribution have enabled fledgling private insurance companies to sign up Indian customers faster than anyone expected. Life insurance is viewed as a tax saving device. People are now turning to the private sector for providing them with new products and greater variety for their choice. The improvement in FDI flows reflected the impact of recent initiatives aimed at creating an enabling environment for FDI and for encouraging infusion of new technologies and management practices. The Government’s proposal to increase the FDI cap in the insurance sector from the present 26 percent to 49 percent has raised expectations among the international insurance companies.

Insurance – Defined: Insurance is a contract in which sum of money is paid to the

assured in

consideration of insurer’s incurring risk of paying a large sum upon a given contingency. -- Justice Tindall “Insurance is a contract by which one party for a compensation called in the premium assumes particular risks of the other party and promises to pay to him or his nominee a certain sum of money on a specified contingency.” -- E.W.Fitterson Insurance may be described as social device whereby a large group of individuals, through a system of equitable contribution, may reduce certain measurable risk of economic loss common to all members of the group.” --Encyclopedia Britannica The above definitions clearly shows that insurance is a cooperative device to spread the loss caused by a particular risk over a member of persons who are exposed to it and who agree to insure themselves against risk. Insurance does not eliminate risk but only reduces the financial burden, which may be very heavy.

FINANCE DEPARTMENT

HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth of 63%. The growth was primarily driven by the success of the company's initiative on structured sales processes based on customer needs and their assessments. HDFC Standard Life, one of the leading private life insurance companies in India declared its annual results for the financial year ending March 31, 2008. The company generated New Business Premium Income of Rs. 2,685 crores in FY2007-08 registering a year-on-year growth of 63%. The growth was primarily driven by the success of the company’s initiative on structured sales processes based on customer needs and their assessments. Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this growth to the quality of life insurance solutions offered by the company and its increased geographical reach. He also emphasised, “We believe that our success is a result of our efforts in giving customers, the best long-term solutions to take care of their insurance needs. Our endeavour to provide high quality insurance and pension solutions to customers through quality pre-sales advice, based on a sound need-based solutions approach, and post-sales service has started to pay off.”

Highlights of Financial Year 2007-08 •

New Business Premium Income up by 63% to Rs. 2,685 crores. Total Premium Income is up by 70% at Rs. 4,859 crores as against Rs. 2,856 crores in FY200607

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Alternate Channels including bancassurance has recorded an impressive growth of over 63% to contribute 41% to the Effective Premium Income (EPI)

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Group business funds under management have increased to Rs. 959 crores, registering a growth of 83% over FY2006-07

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The average premium has increased to Rs. 33,000

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Company products and services are now available in 726 cities and towns across the country

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Strength of Financial Consultants has increased to 1,45,000.

HDFC Standard Life tracks its New Business Premium on the basis of Effective Premium Income (EPI). EPI is calculated by giving only a 10% value to a Single Premium policy and is an internationally accepted indicator of an insurance company’s performance. The total premium income (including renewal premium) grew by 70% to touch a figure of Rs. 4,859 crores. High levels of persistency have resulted in higher level of renewal premiums. Although there has been a slight dip from 89% to 86%, we continue to have the highest persistency level in the industry. The cumulative sum assured for all policies issued upto March 31, 2008 crossed Rs. 87,000 crores. In offering unit linked products, the structured sales process adopted by the company has paid rich dividends. “We believe that we should be able to lengthen the maturity profile of our policy portfolio, now that the regulatory disincentive has been removed with effect from April 1, 2008,” added Mr. Satwalekar. HDFC Standard Life offers, both, life

insurance policies as well as pension products on a unit linked platform as also the conventional ‘with profits’ platform. Over 50% of the sum assured as on March 31, 2008, is in respect of non unit-linked policies. Over 30% of funds under management are in respect of non-linked business, which reflects the balanced book between conventional and unit-linked business in the total portfolio of the company. The company’s national relationships with large public and private sector banks have also helped it reach out to a larger number of customers across the country. The company plans to further strengthen these relationships through the introduction of products specially designed for this channel. HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company strengthened its number of offices from 103 to 572 across the country in less than 3 years. Through these offices, the company today services customer needs in over 726 cities and towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of 300% over the last 3 years in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT) Club. The strength of MDRT qualified members has gone up to 496 as on December 31, 2007. As against the regulatory requirement of writing 18% of all policies in rural areas, HDFC Standard Life has issued over 217,000 policies accounting for 23% of all policies issued during 2007-08. Additionally, during 2007-08, HDFC Standard Life has covered 51,326 lives under the social sector category, as against the requirement of 25,000 lives. Overall, the company has covered over 9,59,000 lives during the year ending March 31, 2008.

To meet the demands arising from the company’s rapid growth, shareholders have contributed additional Rs. 470 crores of equity to take the paid-up share capital as on March 2008 to Rs. 1,271 crores.

HUMAN RESOURCE DEPARTMENT The Human Resources department of HDFC SL had an induction manual on the intranet to initiate new employees into the organization. The manual had reams and reams of text running into hundreds of pages. The volume of information made it difficult for the user to assimilate company policies and operating procedures.

RECRUITMENT PROCESS The chief attributes HDFC SL looks out for in a candidate.  We look out for a candidate who values Integrity  Has a zeal for Excellence  Is focused on Results  Is Self driven and Enthusiastic  Is a good Learner and Team Player  Is dedicated to Customer Satisfaction

The Recruitment Process at HDFC SL HDFC SL recruitment process are as follows: Making an Application •

Ensure the information is clear and well organized.

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Demonstrate your skills/experience/responsibilities in the previous company

Assessment Process

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We conduct relevant assessments like psychometric tests and written exercises these will be part of the selection process

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The interview panel will ask questions which will assess your knowledge, skills and attitude. You will also have your queries addressed.

Conditions relating to offers of employment All offers are subject to: •

Satisfactory medical clearance

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Satisfactory references

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Evidence of qualifications and previous employment testimonials

MARKETING DEPARTMENT HDFC Standard Life continues to have one of the widest reaches among new insurance companies. The company strengthened its number of offices from 103 to 572 across the country in less than 3 years. Through these offices, the company today services customer needs in over 726 cities and towns. The company also increased its depth in existing markets by increasing its Financial Consultant strength from 74,000 as on March 31, 2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of 300% over the last 3 years in the number of its Financial Consultants who have qualified to become members of the prestigious Million Dollar Round Table (MDRT) Club. The strength of MDRT qualified members has gone up to 496 as on December 31, 2007. As against the regulatory requirement of writing 18% of all policies in rural areas, HDFC Standard Life has issued over 217,000 policies accounting for 23% of all policies issued during 2007-08. Additionally, during 2007-08, HDFC Standard Life has covered 51,326 lives under the social sector category, as against the requirement of 25,000 lives. Overall, the company has covered over 9,59,000 lives during the year ending March 31, 2008. To meet the demands arising from the company’s rapid growth, shareholders have contributed additional Rs. 470 crores of equity to take the paid-up share capital as on March 2008 to Rs. 1,271 crores.

ADVERTISEMENT AND SALES PROMOTION

Film opens in the compound of a house. Father is checking something inside the bonnet of an old small car. His daughter, around 27-28 years old, is working on a lap top next to him

Daughter: “Dad”. Father: “Bolo” Daughter: “Nayi car lene mein hee bhalaai hai.” Dad nods in agreement without looking up. Dad: “Hmmm…”

Daughter continues affirmatively as she signs on a cheque. Daughter: “Aur wo bhi badi wali.”

Dad looks at her and asks. Dad: “Huh, Badi kyon?”

Daughter, walks towards him with swinging hand in air and says. Daughter: “Kyonki Toolika Sharma chahti hai uske dad style se travel kare.”

Dad goes back to checking the engine and says in a light hearted tone. Dad: “Aur Extra paise dad dega kya?” Daughter replies firmly: “Nahi. Mere dad ki beti.”

And hands him the cheque. Dad looks at the cheque and questions. Dad (seriously): “Itne paise aaye kahaan se?”

Daughter: “Relax dad, plan kiya.” Dad doesn’t know what to say: “Par...”

Dad doesn’t know what to say as he looks at the cheque. Daughter pleads: “Please…dad”

Mother enters with tea. She senses something serious and questions them. Mother: “Aree Kya hua?”

Father looks at her and says emotionally. Dad: “Car badi ho gayi, aur beti bhi.” Daughter smiles with pride.

Super: Unit Linked Savings Plans MVO: “Unit Linked Savings Plans from HDFC Standard Life. zimmedari nibhao, Aaj bhi kal bhi ”

PRODUCTION DEPARTMENT

At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organisations we have a host of customised solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.

Individual Products

We at HDFC Standard Life realise that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan.

Investment Plans Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses.

Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus

Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children’s immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Money Back Plan, Children’s Plan, Unit Linked Youngstar, Unit Linked Youngstar Plus .

Group Products One-stop shop for employee-benefit solutions HDFC Standard Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

OBJECTIVE OF PROJECT

Focus on the productivity of each consultant, corporate or individual, while stressing on the quality of proposals Quick roll out of Products Efficiency of Operations 

To analyses the policy HDFC SL pvt. Ltd.



To study the overall scenario currently prevailing in the market, namely, the per capital

income, purchasing power, occupation, literacy rate, etc. 

To study and determine the competitor position in the market.

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To know what consumer look for while policy of their share being purchased

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To know the satisfaction /dissatisfaction level towards the insurance company

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To create familiar and motivate individual to insurance company

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To provide information related to product and policies of insurance company

RESEARCH METHODOLOGY

Research: - is a process of collecting, analyzing, interpreting and summarizing in a significant manner for the purpose of framing out necessary conclusion and findings of data perceived and formulated for deriving out the meaningful information. To carry our research necessary telephonic calls needed to be done, suitable appointments were to be fixed and therefore market survey is to be followed. Objective of training: - To understand life insurance and recruitment of capable life insurance advisors for growth prospects. Process: Methodology or process involving in the Research followed during the course of summer training is as follows: a)

Collection of data: - This is an important aspect in formulating the objective

of research process where the data is collected via two process: - i) Primary Sources and ii) Secondary sources i)

Primary sources: - Where the data is collected primarily by interviewing

and personal observation and is original in nature and accurate to the considerable extent. ii)

Secondary sources: -Where the data is obtained from some published

and printed sources such as newspaper, magazines, websites and so on.

b)

Analyzing of collected data: - The data collected through market survey and

published sources is then processed to obtained necessary inferences and findings for the purpose of achieving the objective as well as to derive necessary conclusion. A considerable skill and knowledge is involved in analyzing the data for the purpose of interpreting thereof. .

TYPES OF RESEARCH

Questionnaire: - Questionnaire is a set or group of questions being framed for the purpose of obtaining market perspective about a particular aspect or topic. There are two types questionnaire bing carried necessary for the market survey of the summer training being undertaken and put for the by the trainee to the sample people taken as a base for entire population: a)

Open ended Questionnaire: - where the people (also called respondents) are

required freedom to present their views and suggestions for the benefits and success of the organization. b)

Close ended questionnaire: - where the respondents is limited to the choice

of answer being delivered by the interviewer itself so that quick and fast means of responses be derived out without wasting much time. Here close ended questionnaire being followed by me during the course of the summer training market survey. Sampling: - Sampling is a process of obtaining a number of individuals taken a base for the entire population since entire population can not be asked about the necessary objective upon which a questionnaire is put forth needed for the responses to be derived for the purpose of generation of facts and customer view point regarding their perception of particular product or services.

There are two type of sampling – i) Random Sampling and ii) Systematic sampling. i)

Random sampling: - Random sampling is a process of selecting the

sample size randomly and no choice or preference to be made about the selection of respondents for the market survey and questionnaire to be put forth against him. Here, Random sampling being adopted by me. ii)

Systematic sampling: - it is a sampling where the limited number of

selected respondents is figured out based on some criteria so that only those respondents can be asked for the purpose of filing questionnaire. Sample Size: - 105 respondents.

TYPES OF DATA

The word data Mpesceans any raw information, which is either quantitative or qualitative in nature, which is of practical or theoretical use. The task of data collection begins after a research problem has been defined and research design chalked out. While deciding about the method of data collection, the researcher should keep in mind that there are two types of data primary and secondary.

Primary data: This is those, which are collected afresh and for the first Time, and thus happen to be original in character. There are many ways of data collection of primary data like observation method, interview method, through schedules, pantry Reports, distributors audit, consumer panel etc. The Team Managers and employees of both the Department were consulted to get information about procedure of both the online and off line share trading. But the method used by us for the primary data collection was through questionnaires.

Secondary data: These are those data, which are not collected afresh and are used earlier also and thus they cannot be considered as original in character. There are many ways of data collection of secondary data like publications of the state and central govt., reports prepared by researchers, reports of various associations connected with business, Industries, banks etc. And the method, which was used by us, was with the help of reports of the company

INFORMATION AND DATA RELATED TO TOPIC

RESPONSES

MARKET SURVEY

60 50 40 30 20 10 0

LIFE INSURANCE IS: 51 38 16

Prote ction of Tax be ne fit de vice human as s e t value agains t unce rtainty CATEGORY

B oth

From the survey it was drawn that life insurance is more a protection of human asset value against uncertainty (conferred by 51 respondents) where it is a tax saving option (being accepted by 38 respondents). Life insurance is a service involving both these prerequisites as depicted by remaining 16 respondents. The following depicted this:

Protection of human asset value against uncertainty

51

Tax benefit device

38

Both

16

IS LIFE IN S UR AN CE ES S EN TIAL?

NO. OF RESPONDENTS

78 80 70 60 50 40 30 20 10 0

27

Ye s

No R ES P O N S ES

It has been observed and applied as a Life insurance is an essential service and should be applicable to every one, as favored by considerable 78 respondents where it is not essential to an extent by 27 respondents from the summer training project survey by putting forth the set questionnaire.

R ESPON D EN T'S QUALIFICATION 10 % 33%

Pos t graduate Graduate Se nior s e condary

57%

When further enquired about the qualification of respondents, it was found that 57% of the respondents were graduates, 33% were post graduates and remaining 10% were of higher secondary out of total 105 respondents. Further depicted in the following tabular representation : -

Post graduate

35

Graduate

59

Senior secondary

11

AGE QUALIFICAITON: 6% 20% 39%

18-25 age group 25 – 35 age group 35 – 45 age group Above 45 age group

35%

Further, the age qualification for agency recruitment, it was found that 39% respondents were belonging to 18 – 25 age group, 35% were belonging to 25 – 35 age group where as 20% to 35 -45 age group and remaining 6% to above 45 age group. Also depicted in the following tale mentioned below: -

18-25 age group

41

25 – 35 age group

37

35 – 45 age group

21

Above 45 age group

6

CAUSES OF DISSATISFACTION 10%

23%

16%

Low employment Low earning / income Low status

17%

34%

Huge capital investment All of the above

Respondents had different views about the dissatisfaction from the present status of working or occupation. Dissatisfaction has been depicted in a table below and graphically above:

Low earning Low employment

24

3 6 1

Low status

18 All of the above

0

Huge capital investment

17

ABOUT CAREER IN LIFE INSURANCE 70 NO. OF RESPONDENTS

60

59 46

50 40 30 20 10 0 Yes

RESPON SES

No

When asked about whether they would like to know about a glorified career in life insurance agency where they can fulfill any and every desire of their life, 59 respondents agreed while 46 respondents said No and will see later sometime in future. It has been depicted that life insurance sector should be promoted at the wide extent as it contribute to the economy as a useful source beneficial for both nation as well as is citizens.

IS LIFE IN SUR AN CE A N OBLE SER VICE? 86

NO. OF RESPONDENTS

100 80 60 40

19

20 0

Ye s

No R ESPON SES

Indeed Life insurance is a noble business as it provides a needful financial support in the situation of fatal calamity where the family is deprived by the fact to live in future and sustains their living. When surveyed about life insurance as a noble service. 89 respodents agreed and believe that insurance is a bettering service to human life and society as a whole where as 19 respondents show disagreement.

ACCEPT LIFE IN S UR AN CE AS A CAR EER ?

NO. OF RESPONDENTS

50

41

40 30

18

20 10 0

Ye s

No R ES PO N S ES

From the 59 respondents who agreed to know about the life insurance as a career, 18 of them agreed to join HDFC Standard life insurance for agency and come to the company fore more information whereas 41 still took time to think and postponed to some future date. People are highly dissatisfied from the earning, status and living standard they are sustaining at present and would definitely like to make some additional source of earning and for this agency for life insurance would prove a boon.

IS LIFE IN S UR AN CE IN D US TR Y G R O W IN G ? 92

RESPONDENTS

100 80 60 40

13

20 0

Ye s

No R ES PO N S ES

From all 105 respondents, 92 agreed that life insurance sector is a growing concern and will grow at a rapid pace in future where as 13 took as a mere stagnant industry. Financial services are growing at a tremendous pace as people are urging to make their investment in lucrative opportunities and therefore life insurance sector is playing a vital role in educating the people to make their investment which could secure their future, needs and living despite some fatal calamity that might or might not occur.

RESPONDENTS

80 70 60 50 40 30 20 10 0

AGR EE WITH PR IVATISATION OF LIFE IN SUR AN CE? 74

31

Ye s

R ESPON SES

No

Among 74 respondents from 105 respondents favored the privatization of the life insurance and perceive that the people of India will know be more aware and knowledgeable with respect to life insurance than that in the past 50 years with the working of LIC. The myth of LIC since it is a Government concern is still continue to prevail even though people have become more advanced and they can invest their hard earned money after undertaking their pros nad cons and company position in the market.

FINDINGS

•

Trained employees can work more efficiently.

•

Training makes employees more loyal to an organization.

•

Training makes an employee more useful to a firm.

•

Training enables employees to secure promotions easily. They can realize their career goals comfortably.

•

Employees can avoid mistakes on the job. They can handle jobs with confidence. They will be more satisfied on their jobs.

•

Training can contribute to higher production and fewer mistakes, greater job satisfaction and lower employee turnover. Also, it can enable employees to cope up with organizational, social and technological change.

RECOMMANDATION Following are suggestions made for the benefits and augmentation of the sound working of the company – HDFC Standard life insurance: 1.

Need to train and develop life insurance agents with more comprehensive

knowledge and skills to counter every queries of the customer. 2.

It is suggested that company should not left any stone unturned towards

sound advertisement and promotional measures on every section whether it is printed, media or or air via radio. 3.

It is also suggested that skilled management graduates need to be places

on sales and marketing of financial servies who can render their best ideas for the accomplishment of the company goals and objectives to the best extent. 4.

Also, care need to be taken that every customer’s grievance should be met

with delight whether before purchase or after sales. 5.

There should be an expansion measure for more offices and

6.

location of more centres for offices of the company be established sop

that company may grow its network. 7.

there should more advanced measures are required to develop to capture

the needs of customer so that they can be inspire and motivated to invest.

CONCLUSION

In this Knowledge-based economy, training helps people to learn how to do the things differently or to the different things. Products are now increasingly knowledgeintensive; for this employers are responsible for providing opportunities for continued learning. To cope with the challenges and competitiveness in the world, every organization needs the services of trained persons for performing the activities in the systemic way. So, training program plays a key role in individual as well as organizational performance.

BIBIOLIOGRAPHY

Following are sources which helped me during my summer training: BOOKS: KOTHARI C.R.: Research Methodology Management, 3rd Edition KOTLER PHILIP: Marketing Management” 11th Revised edition ,2002 GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001 MAGAZINES: India Today Business World REFERENCES Websites: www.hdfcinsurance.com www.irdaindia.org www.liccouncil.org www.businessconnect.com

APENDIX

Questionnaire

Name: - …………………………………………………………… Age:- …………………………………………………………… Location: - …………………………………………………………… Occupation: -……………………………………………………………

Q.1. What do you mean by life insurance? a) Protection of human asset value against uncertainty  b) A sum received after death c) Both

 

Q.2. Do you think life insurance is essential for every one? a) Yes



b) No



Q.3. What is your qualification? a) Post graduate  b) Graduate



c) Senior secondary



Q.4. Do you come under: a) 18-25 age group



b) 25 – 35 age group



c) 35 – 45 age group



d) Above 45 age group  Q.5. What dissatisfied you most in your occupation a) Low employment b) Low earning / income c) Low status

  

d) Huge capital investment



Q.6. Would you like to know about a career in life insurance advisor ship where you can fulfill every desire of your life? a) Yes



b) No



Q.7 Do you perceive that life insurance business is a noble service oriented business? a) Yes



b) No



Q.8. Would you like to become or opt for life insurance advisor under esteemed and prospering organization HDFC Standard Life insurance? a) Yes



b) No



Q.9. Do you agree that the life insurance business is a growing industry and will grow and rapid pace in future? a) Yes



b) No



Q.10. Do you favor the privatization of life insurance by the Government where a significant number of companies now in the market for life insurance to the customers with the alliance of multinationals? a) Yes



b) No



Suggestions: 1.

……………………………………………………………

2.

……………………………………………………………

3.

……………………………………………………………

4.

……………………………………………………………

5.

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