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A PROJECT REPORT ONMARKET POTENTIAL OF KOTAK MAHINDRA LIFE INSURANCE FORKOTAK MAHINDRA LIFE INSURANCE, LUCKNOWIN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION

Supervision Name:-

Submitted By:-Mr.Nanjyoti Singh Karan Kumar

Marketing Head PGDM (3rd sem)

.

KARAN KUMARI E M MANAGEMENT COLLEGE

ANWARI BARABANKI

(2011-2013)PREFACEIt is mandatory for every student of POST GRADUATE DIPLOMA IN MANAGEMENT from I E M college , Lucknow undergo project training at organization location with a project on live problem.

This project has been faith fully experience for me. Now I have broad idea of functioning of organization and this will be every helpful for me in the coming days.

KARAN KUMAR(PGDM 3rd Sem )

ACKNOWLEDGEMENTNo study is big or small can be undertaken all by oneself. Behind this project too is guidance of those individual people to whom I will be always grateful.I express my deep sense of gratitude to Kotak Mahindra Group for giving me the opportunity of doing this project in their well-renowned organization which otherwise would not have been easy.I am deeply indebted to Mr.Nav jyot singh, Marketing Head in Lakshya investment and solution who selected me as a trainee to work with him and guided me throughout the project. I am grateful and would like to express sincere thanks to my guide Arun Murya ( Lecturer,SCM Lucknow ) for their valuable suggestion and guidance throughout this project.

This tremendously helped me in execution of the entire Project.KARAN KUMAR (PGDM 3rd sem)

DECLARATIONI hereby declare that the project report written and submitted by me under the guidance of Arun Murya (Lecture , SCM Lucknow) is my original work. The empirical findings and data collected in this report are based on the information collected by me through fieldwork. I have not copied from any report submitted to any of the University/ Institution.

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

Place: Lucknow Date: Signature KARAN KUMAR

TABLE OF CONTENTSTOPIC NAME

PREFACEACKNOWLEDGMENTDECLARATION

EXECUTIVE SUMMARY

CHAPTER-1

INTRODUCTION

OBJECTIVE OF THE STUDY

SCOPE OF THE STUDY

LIMITATIONS

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

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

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

lucknow road

Ring road

vikas nagar road

kurshi road

indra nagar area

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

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

For assessing the customer response following market research process followed

Step 1: Define the objective:First step is defining the objective i.e.Market Potential for Kotak Life Insurance researcher covered most of the areas, which had been instructed by the company.

Step 2: Develop research plan:The second step was to develop the most efficient plan for gathering the needed information.

i)Data sources: Both primary & secondary data are taken into consideration.

Primary data are data gathered from field for specific research project.

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

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

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

a) Sampling unit: project was concentrated on retailers, whole sellers, real estate agents, service group & others for the sampling unit

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

from different professions.

c) Contact method: once a sampling plan has been determined, marketing researcher need to decide how the subject should be contacted: mails, telephone, personal visit or online interview. In my project research it was mostly personal interview and in some cases telephonic interviews was held.

Step 3: Collect the information:Data collection phase of the marketing research generally was the most time consuming period. In case of survey few problems arise likewise some respondents may not give all the detail information and might not be available and must be contacted or replaced. Others refused to co-operate and finally some respondents will be biased or dishonest to share information.

Step 4: Analyze the information:The collected information needs to be analyzed thoroughly to extract the findings that will be useful to the company. Again this data must be tabulated and averages/measures are computed from various variables.

Step 5: Present the findings:And the last step is present the findings that are relevant to the objectives.

LAKSHYA INVESTMENT AND SOLUTION:-Lakshya Investment and Solution is a business to provide insurance and investment products to every citizen of our country. Company's aim to provide Insurance and will give golden opportunity, to earn higher income and social welfare activities to all employees. The dream was pursued with relentless energy without losing focus on the need to provide perfect investment solutions for the clients. This drive for offering the best services and solutions has attracted. The Lakshya Investment and Solution Group stands tall amongst the myriad opportunities available in the Indian financial markets. It is the stringent standards of quality and services adopted by the Group that has helped it to keep pace with the expeditious changes in the Indian Economy as well as meet the complexities of the of the Indian Capital market.SERVICES

LIC

KOTAK MAHINDRA

BAJAJ ALLIANZ

BIRLA SUN LIFE

RELIANCE

HDFC MUTUAL FUNDS

ICICI PRUDETIAL MUTUAL FUND

BARTI AXA LIFE INSURANCE

FUTURE GENERALI

TATA AIA

DLF PRAMERICA LIFE INSURANCE

RELIANCE LIFE INSURANCE

HDFC MUTUAL FUND

STAR PERSOAL AND CARING INSURANCE

CHAPTER -1

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

Buying insurance is extremely useful if one is the principle-earning member in the family and unfortunate premature demise, your family can remain financially secured because of the life that you have purchased.

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

Life wasn t designed to be risk free. The key is not to eliminate risk, but to estimate it

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

Total value of the Indian insurance market (2004-05) is estimated at Rs. 4500 crores (US$10 billion). According to government sources, the insurance and banking services contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The life Insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 crores during the fiscal year 2004-2005, braving stiff competition from private insurers. RNCOS s report, Indian Insurance Industry New Avenues for Growth 2012 , finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.OBJECTIVE OF THE STUDYThe report discusses the work done by the trainee KARAN KUMAR, student of

I E M COLLEGE. The purpose of training was to have practical experience of working in an organization. So the fieldwork was essential to get exposure to various management practices in the field of marketing.

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

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

IMPORTANCE OF THE STUDYThe study gives broader picture about who is the market leader among all the insurance providers. The study is all about finding out the market potential of Kotak Mahindra Life Insurance for Lucknow.

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

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

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

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

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

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

Limitations:- One of the major limitations of this study was lack of sufficient time as the subject was required lot of time. The time limit permitted to cover the major areas of Lucknow but not all the regions of the city. The study limits itself only to Kotak Mahindra Life Insurance.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGYINTRODUCTION:Marketing Research is an systematic and objective study of the problems pertaining to the marketing of the goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applied to all the phases and aspects.

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

-Secondary Data: The sources of secondary data are; INSTITUTION:-Business Magazines

-News Paper

-Annual Reports / Company Periodicals

REFERENCES:

-Internet, Company websites

-Telephone Directory (BSNL and TATA Indicom)

-References from company employees

-Annual Reports / Company Periodicals

QUESTIONNAIRE METHOD

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

RESEARCH DESIGN:SAMPLING UNITS:

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

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

1)Business- Class

2) AgentsGeneral Insurance Agents

-Postal Agents

-Travel Agents

-Real Estate Agents

3) Service Class

-Professor / Teachers

-Office Staff, Banks Staff

-Government Employees

4)Mutual Fund Agents

5)Tax Consultants

6) Investment Consultants

7) Share Brokers

8) Financial Advisors

9) Chartered Accountants / Company Secretaries

10) Others- House wife , Medical Representatives

QUESTIONNAIRE METHOD

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

RESEARCH DESIGN:SAMPLING UNITS:

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

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

1)Business- Class

2) AgentsGeneral Insurance Agents

-Postal Agents

-Travel Agents

-Real Estate Agents

3) Service Class

-Professor / Teachers

-Office Staff, Banks Staff

-Government Employees

4)Mutual Fund Agents

5)Tax Consultants

6) Investment Consultants

7) Share Brokers

8) Financial Advisors

9) Chartered Accountants / Company Secretaries

10) Others- House wife , Medical Representatives

STEP 2

Out of these various segments, the researcher targeted following

- Retailers

- Whole sellers

- Stockiest

- Real Estate Agents

- Others

Note: It was instructed by the company to target the people having net income between

15000 and above. The required data for above segments is to be such, which is helpful to know the background & potential of the prospects. For all that researcher collected information as there,

NamePresent AgeAddressPh No.- E-mail-

-Brief Information about family

-Personal Goals

-Retirement Plans

-Present monthly expenses

-Existing Investment Avenues

SAMPLE DESIGN Sample size (165 People)

Retailers (60)Whole

Sellers(43)

Realestate (17)

Stockiest (16)Others (30)

TOOLS AND TECHNIQUES

OF

ANALYSIS

DATA COLLECTION TECHNIQUES:-Questionnaire Method

-Telephone Interview MethodQUESTIONNAIRE METHOD

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

SAMPLE SIZE:

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

FIELD WORK:

The fieldwork was conducted for a period of 25 days in different commercial areas of Lucknow. Interviews were conducted from respondents across segments, above 18 years of age and as per their convenience. So as to contrive representative sample. The interview and presentation mode by researcher were carried for the duration of 20 minutes.

CHAPTER-2

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

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

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

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

-Birla Sun Life Insurance, which claims to be among the most efficient users of capital, posted a loss before interest and taxation of Rs 60.03 crore for the year ended 31st March 2005.And just in the October-December quarter of

2005,Indias largest private sector insurer, ICICI Prudential posted a loss as the others have run up in the first nine months of FY 06.

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

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

However, there is one big reason for alarm. Insurers do need access to substantial capital in order to keep up this growth despite their initial losses. But many private sector

insurers are struggling to raise the required capital. That s because the government hasnot yet raised the ceiling for Foreign Direct Investment (FDI) in insurance companies from 26 % of equity to 49 % as outlined by the previous government.

And because of 26 % FDI cap, the burden of funding the growth falls on the Indian promoter. The need for capital is even more crucial in the context of the Insurance Regulatory and Development Authority (IRDA) regulation on solvency margins. In India, for every Rs 100 of claims payable to customers a life insurance company must have assets worth Rs 150.OPTIMISTIC INDIAN MARKET FOR INSURANCE SECTOR:-Indian market can be labeled as a untapped market, which in it s core holds immense potential for growth. The hike in FDI from 26% to 49% .this increasing capital participation of international insurers will accelerate the development of the Indian insurance industry, through the greater deployment of technical competencies and innovative products and processes .As

The purchasing power of Indian people is increasing, so we can predict that the no. of customers who can afford to investment in health, life, disability and pension products is going to increase up to great level.

AREAS OF OPPORTUNITIES1) New Horizons of investment:-Insurance companies have shown an unquenchable thirst to offer customized solutions Based on individual risk appetite of customers rather than mundane, one size fits allendowenment. Based insurance products. We have a good example of ULIP (Unit links Insurance Plan) by LIC. It is a single largest innovation in life insurance industry. Life Insurance products are similar to investment product with less or risk coverage, signifying changing preferences of investors. ULIP score over mutual funds, since they offer risk-cover, as well as returns by investing in stock markets, even out performing equity returns in certain instances. We can have the same plans from other private players like Bajaj-Allianze i.e. equity plan funds, ICICI Prudential maximizer, HDFC standard life growth fund. Total premium under return for unit-linked plans in the financial year 2004-2005 stood at Rs. 82.47 billion, and outstanding growth of 422% over the previous year.

2) Indian Rural Market:-A large number of Indians lives in rural India, so this market should be tabbed by insurance companies and it require a different approach of sales services with respect to meeting such challenges as low awareness, irregular incomes and geographical distances. The focus has to be on simple coverage and return of premiums. Very few companies have plans for rural India.

3) Customized Solutions:-Competitive insurance market exploring the new customer segments, it includes pension plans and children plans. By 2026 India will have 179 million people who wear above 60 years of age. According to that insurance companies should have a marketing plan. Special children plans are the current requirements, as the education is becoming more important and expensive. So such plans must be introduced by all insurance companies. ICICI Prudential and LIC have already done this.

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

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

3) The core function of the marketing force of an insurance company is to generate awareness about the insurance products among the target market.

4) Branding the market place is similar to branding on a cattle ranch, the purpose of a branding program to differentiate our cow from the cattle of range.

According to an article in the insurance marketing magazine, Feb-March 2002, brand strategy is one of the most critical parts of the underlying business strategy of any organization. It will help to establish what insurers stand for and promise and will eventually help to give a industry new image. This positioning helps to give credibility to

sell Risk-Free products design to help customers insure that their family and assets are protected.

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

QUICK FACTS: Second largest mobilizer of savings after banks.

Constitutes 15 % of gross domestic savings after banks.

Rs 400,000 crore of assets under management.

Rs 40,000 crore invested in Infra-structure. Share of retail customers to total-92 %

Agency force 15 lakhs

No. Of policies in force 20 crore

Employees: 200,000 HISTORY1912: The Indian Life Assurance Companies Act enacted as the first stature to regulate the life insurance business.

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

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

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized . LIC formed by an Act of Parliament, viz. LIC Act,1956,with a capital contribution ofRs.5 crore from the Government of India.

ENTRANCE OF PRIVATE COMPANIES IN INSURANCE SECTORS.

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

The insurance landscape in India is undergoing major changes. Close to foreign competition since nationalization in 1956,the life insurance industry had been protected from competitive pressures.

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

1) Amp Sanmar Assurance Company Ltd.

Indian PromoterReliance Group

Foreign InsurerNone

2) Aviva Life Insurance Company Ltd.

Indian Promoter DABUR Foreign InsurerAVIVA,UK

3) Bajaj Allainz Life Insurance Company Ltd.

Indian Promoter BAJAJ Auto. Foreign InsurerALLIANZ, Germany

4) Birla Sun Life Insurance Company.

Indian PromoterADITYA BIRLA Group

Foreign Insurer SUN LIFE, Canada

5) Hdfc Standard Life Insurance Company.

Indian Promoter- HDFC

Foreign InsurerStandard Life, UK

6) Icici Prudential Life Insurance

Indian PromoterICICI Bank

Foreign InsurerPrudential, UK

7) Kotak Mahindra Life Insurance

Indian Promoter- KOTAK Bank

Foreign Insurer- OLD MUTUAL, South Africa.

8) Max New York Life Insurance Company

Indian PromoterMAX India

Foreign InsurerNEW YORK LIFE, US

9) Met Life Insurance Company

Indian PromoterJ & K Bank

Foreign InsurerMET LIFE, US

10) Sahara Life Insurance Company Ltd

Indian Promoter SAHARA INDIA Ltd. Foreign InsurerNONE

11) SBI Life Insurance

Indian PromoterSBI

Foreign InsurerCARDIFF, France

12) Tata AigIndian PromoterTATA GroupForeign InsurerAIG, US

COMPANY PROFILE THE KOTAK MAHINDRA GROUPKotak Mahindra is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. Form commercial banking of stock broking, to mutual funds, to life insurance, to investment banking. The group caters to the financial needs of individuals and corporate.

The group has a net worth of over Rs. 1,800 corer and employs over 4,400 employees in its various business. With a presence in 82 cities. I India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world s largest investment banks and brokerage firms) and Old Mutual (a large insurance, banking and asset management conglomerate).

OUR MANAGEMENT FOR LIFE INSURANCE Mr.GaurangShah (ManagingDirector).

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

OUR STORYThe Kotak Mahindra group was born in 1985 as Kotak Capital Management Finance Limited. Uday Kotak, Sidne A.A. Pinto and Kotak & Company promoted this company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986 and that s when the company changed its name to Kotak Mahindra Finance Limited.

1986Kotak Mahindra Finance Limited starts the activity of Bill Discouting.

1987Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

1990The Auto Finance division is started.

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

1992Enters the Funds Syndication sector.

1995Brokerage and distribution business incorporated into a separate company Kotak Securities. Investment banking division incorporated into a separate company - Kotak Mahindra Capital Company.

1996

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

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

Management Company.

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

Kotak Securities launches kotakstreet.comit s on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.

2001Matrix sold to Friday Corporation Launches Insurance Services.

2003Kotak Mahindra Finance Limited converts to bank.

KOTAK MAHINDRA:-A Lifetime of Value

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

Old Mutual is the largest financial services business in South Africa, through its life insurance, asset management, and insurance operations. The company serves 4 million life insurance policy holders and employs over 13000 South Africa operations.

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

Operations in the United Kingdom are focused on wealth management, through Gerrard as one the leading private business in the UK.

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

Products:

1) Individual:-Kotak Term Plan

Kotak Preferred Term PlanKotak Money Back Plan Kotak Child Advantage Plan

Kotak Capital Multiplier Plan

Kotak Retirement Income Plan

Kotak Retirement Income Plan (Unit-linked) Kotak Safe Investment Plan

Kotak Safe Investment Plan II Kotak Flexi Plan

Kotak Easy Growth Plan

Riders

Exclusions Under RidersGroup :-Employee Benefits

Kotak Term Plan

Kotak Credit-Term Grouplan Kotak Complete Cover GroupPlan Kotak Gratuty Grouplan

Kotak Superannuation Grou planRural :-

Kotak Gramin Bima Yojna.

CHAPTER-3

DATA ANALYSIDATA ANALYSIS AND INTERPRETATION1. Investment options preferred by respondents.Sr. NoInvestment OptionsNo. Of Respondents

1Insurance75

2Fixed Deposit20

3Post20

4PPF22

5Mutual Fund8

6Shares5

7Daily Collection15

TOTAL165

INTERPRETATIONOut of total respondents, maximum i.e. 75 respondents think Insurance is a safer option to invest the money. It gives them long-term benefits for not only individual but for the entire family. Thus, people find insurance safe and better option rather than investing in FD , Post ,Mutual funds ,Share etc.

2. Need of Life InsuranceYes135

No30

Total165

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

Factors to determinened forL.INo. Of respondents

Security/Safety55

Savings15

Long term Investments35

Tax Saving30

Total135

Still majority i.e. 82% people think that insurance is essential. However safety is major concern when people see insurance as investment.

3.Awareness about the Insurance Companies.Insurance CompaniesNo. Of respondents

ICICI Prudential115

Kotak Mahindra65

Bajaj Allianz95

Tata AIG75

Max New York Life35

HDFC105

Aviva60

Total550

INTERPRETATION

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

4. Reliable companies among the respondents.Insurance CompaniesRespondents

ICICI Prudential75

Kotak Mahindra20

Bajaj Allianz55

Tata AIG40

Max New York Life15

HDFC60

Aviva35

Total300

INTERPRETATION

.Among all the samples ICICI and HDFC are believed as the most reliable companies among all the private companies in the market. Following are the factors that determine why these two companies are preferred and believed by the people.

5. Present Insurance holdersYes145

No20

Total165

PRESENT MARKET SHARE:-Insurance CompaniesMarket Share

LIC85

ICICI Prudential20

Kotak Mahindra15

Bajaj Allianz10

Tata AIG8

Max New York Life17

HDFC5

SBI5

Total 165

INTERPRETATION:Among the total market share LIC still has majority share in market, holding 52% of the total respondents. Among the private companies ICICI Prudential, Bajaj Allianz and HDFC are leaders

6. Total Savings for Life Insurance.Savings (Rs)Respondents

5000-1000047

10000-2000075

20000-4000031

>4000012

Total165

INTERPRETATION

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

7.Benefits from Life Insurance Policy:-BenefitsResponses Of Clients

Child Education35

Personal Goals90

Marriage45

Retirement85

Savings75

Total330

INTERPRETATION

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

8. Awareness about Kotak Life Insurance.AwarenessResponse

Yes70

No95

Total165

Brand Aw are ne s s100

806040200

Yes No

Series1INTERPRETATION

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

9.Awareness about different plans of Kotak Life Insurance.Kotak PlansAwareness Response

Yes20

No145

Total165

Awareness of Kotak Plans200150100

Response500Yes NoINTERPRETATION

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

10.Future prospects for Kotak.Interested ProspectsResponse

Yes25

No75

Cant Say65

Total165

INTERPRETATION

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

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

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

Facts:Though some beliefs are found correct but observation show other side of the curtain i.e.

- They were quite generous when they knew that they were getting some information.

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

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

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

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

- They provide sufficient information if they contacted when they have free time.

- Most of them were not really comfortable to give any sort of personal and financial information.

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

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

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

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

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

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

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

- A highly potential customer if one makes them believe in company by providing detail information regarding company its present and future growth.

OTHERSThese include house-wife, pensioners etc.

Belief:They are supposed to have sufficient time and believed as the working persons at home normally influence these people.

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

- These people are dependent for their decisions.

- Not a very good prospect for insurance business.

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

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

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

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

B): PRODUCT Knowledge:1.42 percent had just heard about Kotak Mahindra but were lacking knowledge about different plans. Out of these 42 percent only 7 percent people were insurance holders of Kotak Mahindra Life Insurance.

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

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

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

CHAPTER-4

SUGGESTIONS & RECOMMENDATIONS1.More visibility through advertisingMedia Advertising T.V Channels, Radio Stations, Internet pop-ups, Video Clips during the intermission in Theaters.

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

Campaigning, Rallies, Sponsorships for the local institutional and social events. All these forms of advertising could be effectively used to create brand awareness for Kotak Mahindra Life Insurance.

2.They need to concentrate on service factor by hiring or recruiting professional people for effective presentation and communication skills.

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

4.They should hire a Brand Ambassador/Ambassadress from Cricket or Film industry as people from these two fields influence many people in the society. This would promote the company not only within India but also at global standards. This might create strong awareness and give popularity to the company as millions of people are addressed at one time.

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

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

7.Proper training facilities should be given to the new employees, which will help them to get fair idea about the company and its policies.

8. Feedback should be taken from the present clients to know whether they are satisfied and if they have any problems regarding the terms and service. This will certainly help to improve the overall performance of the company.

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

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

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

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

BIBLOGRAPHYBIBLIOGRAPHYCompany websites:

www.kotak.com www.kotaklifeinsurance.comResearch Methodology:

C.R. KothariMarketing Management:Rajan Saxena ANNEXURE ANNEXURE1.Personal detail: Name: Age(Yrs): Phoen No. E-mail Gender:

Office AddressResidential Address

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

a) 0-3Poor

b) 3-7 Average c) 7-10 Good

1.Insurance2.Fixed Deposit

3.Post4.PPF

5.Mutual Fund6.Shares

7.Daily Collection

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

a) Yesb) No

If Yes, Why?1.Safety/Security2.Long term investment

3.Savings4.Tax saving

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

1.ICICI Prudential2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz4.Tata AIG

4.Max New York Life5.HDFC Standard Life Insurance

6.AVIVA Life Insurance

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

1.ICICI Prudential2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz4.Tata AIG

4.Max New York Life5.HDFC Standard Life Insurance

6.AVIVA Life Insurance

If Yes, Why?1.Brand Name2.Safety

3.Peer-pressure4.ROI

5.Previous experience

6.Do you have insurance cover or policy?

1.Yes2.No

If Yes, which?1.ICICI Prudential2.Kotak Mahindra Life Insurance

3.BAJAJ Allainz4.Tata AIG

4.Max New York Life5.HDFC Standard Life Insurance

6.AVIVA Life Insurance8.SBI

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

1.Rs5000-Rs100002.Rs10000-Rs20000

3.Rs20000-Rs400004.Rs > 40000

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

1.Child Education2.Personal Goals

3. Marriage4. Retirement

5. Savings

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

1.Yes2. No

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

1.Kotak Flexi Plan

2.Kotak Retirement Income Plan

3.Kotak Capital Multiplier Plan

4.Kotak Easy Growth Plan

5. Kotak Child Advantage Plan

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

Life Insurance?

1. Yes

2. No

3. Cant SaY

Response

Respondenes

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