Description
Marketing strategy is defined by Prophet's David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
REPORTS STUDY ON MARKETING TECHNIQUES OF LIFE INSURANCE COMPANY
TABLE OF CONTENTS
PAGES
1. INTRODUCTION ………………………………………..5 2. MEANING AND DEFINITION………………………….7 3. MARKETING PRINCIPLES AND TECHNIQUES……..9 4. DEFINITION AND PRINCIPLES OF INSURANCE…...14 5. AGENTS INVOLVED …………………………………...17 6. OBJECTIVES……………………………………………..18 7. RESEARCH METHODOLOGY…………………………20 8. SAMPLE SIZE……………………………………………20 9. LIMITATIONS…………………………………………..32
10. Analysis of questionnaire……….………………31-38
(DATA ANALYSIS AND PRESENTATION AND IMPLEMENTATION)
11. SUMMARY AND CONCLUSIONS…………………....43 12. SUGGESTIONS………………………………………...44 13. BIBLOGRAPHY………………………………………..45
INTRODUCTION
ING Vysya Life Insurance is a part of the ING groups the world’s fourth largest financial services company and also the world’s second largest life insurance provider. ING vysya life insurance is here to provide with the innovative and well designed products that effectively meet your life insurance needs. ING vysya life insurance stands 13 th in the fortune 500 list. ING Vysya life insurance company ltd entered the private life insurance industry in India in September 2001. it has a dedicated and committed advisor sales force of over 21000 people, working from 140 branches located in 74 major cities across the country and over 3000 employees. It’s headquarter is situated at Bangalore. The company portfolio offers products that later to every financial requirement at any life stage. It brings to you over 150 years of experience and the heritage of a name trusted in 50 countries. More than 60 million customers around the world have entrusted it with over US$700 billion of their wealth. ING vysya life CEO and managing director, Mr.Frank Koster, said that a study had found that the life insurance business had a good potential in rural India because people had a strong savings habit and a
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high level of awareness about life insurance. The bulk of the company’s business comes from the traditional distribution route of insurance agents. ING vysya life insurance recorded an income of Rs 102 crore in 2003-04. ING vysya life on Wednesday june 2007 enrolled Madras fertilizers as corporate agent to use the latter’s infrastructure to penetrate the rural life insurance market in south India. The company has over 6500 dealers and 100 field staff who deal with over one lakh farmers. The company aims to make customers look at fire insurance afresh, not just as a tax saving device as a means to add protection to life. The company portfolio offers products that later to every financial requirement, at any life stage
ORIGIN OF ING GROUP:
On the other hand, ING group originated in 1990 from the merger between Nationale and Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV. Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V.
PROFILE:
ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with
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emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of employee benefits, i.e. arrangements of non wage benefits, such as pension plans for companies and their employees.
MEANING AND DEFINITIONS MARKETING:
Marketing is a societal process which discerns consumers' wants, focusing on a product or service to fulfill those wants, attempting to mold the consumers toward the products or services offered. Marketing is fundamental to any businesses growth. The marketing teams (marketers) are tasked to create consumer awareness of the products or services through marketing techniques. Unless it pays due attention to its products and services and consumers' demographics and desires, a business will not usually prosper over time. Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. Essentially, marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy.
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Therefore good marketing must be able to create a "proposition" or set of benefits for the end customer that delivers value through products or services. A market-focused, or customer-focused, organization first determines what its potential customer’s desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit. “Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management)”. Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments “For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumer s or Shoppers in the target market.” Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on insights from marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for it. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory.
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THE American Marketing Association (AMA) states, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.".
LEVELS OF MARKETING
Strategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix (4 Ps)
PRINCIPLES AND TECHNIQUES OF MARKETING (4P’S& 7P’S) 1. 4P’s OF MARKETING:
Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
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Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company Placement (or distribution): Refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc These four elements are often referred to as the marketing mix, which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions.
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Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transaction.
2. 7P’s OF MARKETING:
People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service . As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience, (e.g., at a sporting event.) Process: This is the process(es) involved in providing a service and the behavior of people, which can be crucial to customer demonstrations Physical evidence:
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Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonial or demonstrations.
Personalization: It is here refered customization of products and services through the use of the Internet. Early examples include Dell on-line and Amazon.com, but this concept is further extended with emerging social media and advanced algorithms. Emerging technologies will continue to push this idea forward Participation: This is to allow customer to participate in what the brand should stand for; what should be the product directions and even which ads to run. This concept is laying the foundation for disruptive change through democratization of information Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is “interruptive” in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These “passive
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customer bases” will ultimately be replaced by the “active customer communities”. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and will likely to be the most disruptive force in the future of marketing
Predictive modeling: This refers to neural network algorithms that are being successfully applied in marketing problems (both a regression as well as a classification problem
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INSURANCE:
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured. The act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.
DEFINITION OF INSURANCE:KEYMAN INSURANCE:
Keyman insurance is an important form of business insurance. There is no legal definition for Keyman Insurance. In general, it can be described as an insurance policy taken out by a business to compensate
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that business for financial losses that would arise from the death or extended incapacity of the member of the business specified on the policy. The policy’s term does not extend beyond the period of the key person’s usefulness to the business. The aim is to compensate the business for losses and facilitate business continuity. Keyman Insurance does not indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on the insurance policy.
EXAMPLE:A simple example will make meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still people riding bikes cover their heads with a helmet. This helmet in such cases act as insurance by protecting him/her from the contingent accident and the ultimate danger. Though loss of life or injuries cannot be measured in financial terms, still in this materialistic world it is quantifiable which tries to compensate the potential future loss financially. Meaning of Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means.
PRINCIPLES OF INSURANCE:1 A large number of homogeneous exposure units: The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004. The existence of a large number of homogeneous
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exposure units allows insurers to benefit from the so-called “law of large numbers” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
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2 Definite Loss: The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
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3 Accidental Loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the
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insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4 Large Loss: The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5 Affordable Premium: If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. 6 Calculable Loss:
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There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7 Limited risk of catastrophically large losses: The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer’s appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. AGENTS INVOLVED IN MARKETING:
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Commission agents work for anyone who needs their services. They do not acquire ownership of goods but receive del credere commission Buying agents buy goods on behalf of producers and retailers. They have an expert knowledge of the purchasing functions Selling agents act on an extended contractual basis, selling all of the products of the manufacturer. They have full authority regarding price and terms of sale Brokers specialize in the sale of one specific product. They receive a brokerage
OBJECTIVE OF THE STUDY:1. To search for the growth opportunities available by studying the overall methods followed by the ING life insurance. -This study mainly deals with the various methods followed by ING Vysya life insurance company. 2. To study inclination of various customers towards eventualities and the benefits received by the policy holders. -benefits like death benefit, maturity benefit, mutual fund benefit, investment growth benefit. 3. To study the various policies available to cater the needs of differenr kinds of customers by the ING life insurance. -the various plans like safal jeevan plan, high life plan, child protection plan etc.,
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4 To study also the different strategies methods followed by the life insurance company. -the various techniques followed by ING to attract the new type of customers.
RESEARCH METHODOLOGY:1. Primary Data 2. Secondary Data
1. Primary Data:
The primary data collected from making phone calls and through fixing appointments with the customers.
2. Secondary Data:
The secondary data is collected from brochures, business world magazines, advertisements in television.
Sample size: - The sample size of my project is around 100 persons. Random sampling:
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Random sampling is a sampling technique where we select a group of subjects (a sample) for study from a larger group (a population). Each individual is chosen entirely by chance and each member of the population has a known, but possibly non-equal, chance of being included in the sample.
TYPES OF PLANS IN ING VYSYA:There are different types of plans where the life maker clarifies the basic reasons for buying life insurance and helps you to build a complete financial plan for life. 1. Fulfilling life plan 2. Maximizing life plan 3. Safal Jeevan (endowment plan) 4. High life plus plan 5. Life plus plan 6. Creating life (child protection plan) 7. One life plan 8. ING positive life
1. FULFILLING LIFE
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(ANTICIPATED WHOLE OF LIFE PLAN):
Fulfilling life is a plan from ING Vysya Life Insurance, which is a combination of two very useful plans. Firstly it is a money back policy and secondly a whole life plans up to the age of 85 years. The benefits are occurred both in case of death and survival occurring either within the term or a maturity.
Salient features
? Periodic survival benefits at specified intervals, as a percentage of sums assured. ? On survival after completion of age 85, full sum assured payable as per first policy anniversary. ? Payment of full sum assured in case of life assured before the completion of age 85.
2. MAXIMISING LIFE (MONEY BACK PLAN): This plan offers asset building opportunity by returning lump sum benefits at periodic intervals, along with providing life risk cover during the term of the policy without deducting any amount from the sum assured.
Salient Features
? Cash bonus, which can be utilized both to accumulate and gain on interest, or take it and spend, or utilize the accumulated amount to pay back premiums. ? Loan facility. ? Guaranteed surrender value.
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3. SAFAL JEEVAN (ENDOWMENT PLAN): The unique feature of the safal jeevan endowment plan is that it provides an opportunity to decide on the cover of your policy. It gives you the option to choose from a convenient range of fixed terms and premiums. The plan ensures an easy and hassle free process, yet offering you a comprehensive protection and savings proposition. Thus make it the simplest life insurance plan. Apart from that it ensures. ? Death benefit: sum assured with non-guaranteed bonuses, if any payable on death of the life assured. ? In-built accident cover: In case of death due to accident, an additional benefit equal to the basic sum assured is payable. ? Maturity benefit: sum assured with non-guaranteed bonuses, if any, payable on maturity. ? Mr. Koster said a recent product safal jeevan had been designed specifically for the rural markets.
Salient Features
? Surrender value ? Surrender value is available after at least 3 full years premiums are to be paid. ? Reduced paid up value ? After 3 full years premiums are paid, and if policy lapses due to non-payment of premium, the policy becomes paid-up. ? Loan facility ? You can avail loan of up to 90% of the surrender value.
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Available premium options:Yearly Rs.2,000 Rs.2,500 Rs.3,000 Rs.3,500 Rs.4000 Rs.5,000 Half yearly Rs.1,000 Rs.1,250 Rs.1,500 Rs.1750 Rs.2,000 Rs.2,500 Quarterly Rs.500 Rs.625 Rs.750 Rs.875 Rs.1,000 Rs.1,250
4. CREATING LIFE (CHILD PROTECTION PLAN): ? Guaranteed Maturity Benefit (Payment In Case Of Death And At Maturity) ? Flexible Maturity Benefit Options ? Built-In Waiver Of Premium Benefit If you have children, you must have a creating life child protection plan. This plan ensures that your child’s future in secure in case of your untimely death. Creating life also created a financial asset for your child.
Salient Features ? Rider benefit:
Term rider, accidental death rider, accidental death, disability and dismemberment and waiver of premiums rider.
? Loan benefit:
After paying a premium for three years, you will be eligible for a loan.
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? Maturity benefit:
Your child can either receive a lump sum or receive the amount in 3 to 4 equal installments after the maturity date.
? Tax benefits:
Tax benefits under section 88 and section 10 are available on all our life insurance plans and riders.
PRODUCT FEATURES:1. ELIGIBILITY • Minimum entry age-18years • Maximum entry age-55years • Maximum Maturity age-65years
PREMIUM PAYMENT TERM
Based Upon Your Current Age And The Life Cover Period, You Can Choose To Pay Premium Between 10-25years.
PREMIUM PAYMENT OPTIONS:
? Annual ? Half yearly ? Quarterly ? Monthly
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MINIMUM PREMIUM PAYABLE:
? Annual ? Half-yearly ? Quarterly ? Monthly - Rs.6,000/- Rs.3,000/- Rs.1,500/- Rs.750
5. HIGH LIFE PLUS (UNIT LINKED REGULAR
PREMIUM):It provides you with a life cover of your choice and also enhances your investment opportunities to earn returns in line with the market. In this policy the investment risk in investment portfolio is borne by the policy holder.
Main features:• Maturity Benefit: This plan matures on completion of the chosen policy term. • Death benefit: On death before the policy maturity date, the sum assured plus policy holders fund value will be payable. • Partial withdrawal benefit: This plan offers you the additional flexibility of opting for partial withdrawals any number of times after completion of three policy years, provided the policy holders fund values after such withdrawal is equal to at least one and half
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years regular premiums. Partial withdrawals would not be allowed in case the life assured is a minor till the attainment of age of maturity. • Surrender benefit: You can surrender your policy anytime after completion of the third policy year. You will receive the policy holders fund value less the applicable surrender charges as stated below. • Switch your fund: You have the flexibility to review the performance of your unit linked funds periodically and switch investments from one unit linked fund to another. Two switches per policy year are offered free of switching charges. • Settlements options: You can opt to receive your maturity benefit in a single lump.
ELIGIBILITY:
? Minimum entry age ? Maximum entry age ? Maximum maturity age ? Minimum policy term ? Maximum policy term :0 year (age last birthday) :70years :75years :5years :25years
MINIMUM PREMIUM:
Yearly Half-yearly Quarterly Monthly Rs.50,000/Rs.25,000/Rs.15,000/Rs.6,000/-
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6. LIFEPLUS PLAN (A SAVING SOLUTION):This plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. It allows you to invest and manage your investments at your own pace as per your risk profile.
MAIN FEATURES:1. Maturity benefit: the policy matures on the completion of the policy term chosen by the policy holder. 2. Death benefit: on death before the policy maturity date, the prevailing at that time or the fund value. 3. Partial withdrawal benefit: the plan offers you the additional flexilibility of opting for a partial withdrawal on completion of 5 th policy year. 4. Surrender benefit: you can surrender your policy any time after the third policy year. You will receive the fund value less the applicable surrender charges. 5. Tax benefits: under the section 80c of the income tax act 1961 the provisions are applicable to the policy holders.
Other features: Eligibility:
? Minimum entry age ? Maximum entry age ? Maximum maturity age ? Premium payment terms ? Policy term : : : : : 10years 45years 65years 10, 15 and 20years. 10, 15 and 20years
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The charges:
The plan offers complete transparency with respect to expenses charged to you. The charges are as follows: a) Policy administration charges b) Premium allocation charges c) Fund management charges d) Switching charges e) Surrender charges f) Mortality charges g) Miscellaneous charges
7. ONELIFE (UNIT LINKED SINGLE PREMIUM):It is a plan that is much more than just insurance. A superlative investment plan that gives you the unique option of making one single lump sum payment and additional top-ups as per your convenience.
Policy term:
The term of the policy is between 5 to 25 years.
Main features:1 Maturity benefit: this plan matures on the completion of the chosen policy term. You will receive the balance amount available in your individual policyholders account on the policy maturity date.
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2 Death benefit: the amount of death benefit depends upon the life cover option chosen by you. 3 Partial surrender benefit: this plan you the additional flexibility of opting for partial surrender any number of times after completion of 5 policy years, provided the balance in the individual policyholders account after such surrender is at least Rs.25,000. 4 Surrender benefit: you can surrender your policy any time after the first policy year. You will receive the balance amount available in your individual policyholder’s account less applicable surrender charges. 5 Switch your fund: you have the flexibility to review the performance of your investment plan periodically and switch investments from one plan to another.
Tax benefits:
Amounts paid by you are eligible for tax benefits as applicable under income tax act 1961.
Other features:Eligibility:
? Minimum Entry Age ? Maximum Entry Age : : 0 years (age last birthday) 70 years 75 years 5 years 25 years
? Maximum Maturity Age : ? Minimum Policy Term :
? Maximum Policy Term :
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8. ING POSITIVE LIFE:
,
The policy highlights are flexible premium paying options, no medical underwriting, flexible investment options, systematic investment benefit and partial withdrawal process in the life insurance. ING Positive is targeted at the regular savings segment. The plan is flexible so that it suits the profile of an individual customer from the ages 0 to 50 years. It allows the customer to enter the plan for as low of Rs. 834 per month. The convenient policy terms of 10, 15 or 20 years allows one to match life goals to the policy terms. There is flexibility of premium paying term from a minimum of three years to the policy term. The premiums can be invested in a choice of five fund options Debt, Secure, Balanced, Growth or Equity, based on an individuals risk appetite. During the policy term, the customer has an option to switch between these funds, or redirect future premiums into the available option. The plan also offers liquidity when needed by allowing one partial withdrawal each year after the fifth policy year. On maturity the fund balance available is paid. The maturity proceeds can also be distributed over a five year period.
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LIMITATIONS: ? The scope of the project is related with only punjagutta branch and not with other. ? The project is related to low income and middle income people. ? There is not much sufficient time to explain about the various plans.
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ANALYSIS OF THE QUESTIONNAIRE
1. Are you willing to take a policy with ING?
CATEGORY
YES NO Interpretation: As most of them have their own choice of taking policy in the real world of competition in the market where ING also plays a role of insurance sector, in my project survey where most of them have a good opinion of about 65% with ING and the rest 35% are with negative opinion.
Respondents 65 35
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Respondents
NO, 35 YES, 65
YES NO
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2 Do you have any policy? LIC ICICI 48 30 Interpretation: HDFC 12 TATA 10
Most of my findings out of 100 have a good relation in the LIC with 48%, 30% are for ICICI, 12% are for HDFC, 10% have a policy with TATA life insurance.
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50
48
40 30
30
20 12 10 10
0 LIC ICICI HDFC TATA
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3.What type of benefit would you like to prevail? DEATH 52 MATURITY PARTIAL 26 12 SURRENDER 10
Interpretation: Out of total 100 policyholders, where most of them have like their benefits in various categories, 52% are interested in death process, 26% are interested in maturity process, 12% are for partial, and 10% are for surrender process.
60 50 40 30 20 10 0
IT Y TI AL EA T UR PA R RE N DE R H
52
26 12 10
Series1
D
M AT
SU R
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4 What type of benefit you like in other insurance companies? HEALTH EARLY 51 28 Interpretation: GROWTH 19 GOLD 2
Out of total 100, most of them have their own dislike and liking about other insurance companies, where 51% are interested into health plans, 28% are interested into early protection plans, 19% are interested in easy growth plans, and 2% are only interested in gold plans of the insurance companies.
60 51 50 40 28 19
30
20 10
2 0 HEALTH EARLY GROWTH GOLD
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5. Do you want to know the plans of ING Vysya life insurance? YES NO Interpratation: 41 59
Into my total strength of 100 where 41% has agreed for ING plans and rest 59% of them have NO interest about ING.
41 YES NO 59
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6 What type of plans do you wish to take with ING? Safal jeevan retirement 40 30 Interpretation: childprotection Freedom 20 10
out of total 100 in the project most of the people who wish to go for the plans of ING are, 40% are opted for safal jeevan, 30% opted for retirement plan, 20% for child protection plan, 10% for freedom plan.
45 40 35 30 25 20 15 10 5 0 safal jeevan retirement child protection freedom 10 20 30 40
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7.What type of plans do you like with other insurance companies? wealth investment 43 36 Interpretation: education 11 Marriage 10
Out of total 100 policyholders, 43% are for wealth plans, 36% are applied for investment, 11% are for education, and 10% are applied for marriage.
50 45 40 35 30 25 20 15 10 5 0 wealth and health investment education marriage 11 10 43 36
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8 What are plans you are looking to take in ING Vysya life insurance? Retirement Creating life Maximising plan 18 Child protection 14 plan plan 49 19 Interpretation:
out of 100 persons, 49% are willing to go for retirements, 19% are for creating life, 18% are for maximising and 14% are applied for child protection.
50 40 30 20 10 0
49
Retirement plan Creating life plan
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18
14
Maximising plan Child protection
1
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STUDY OF PEOPLE AT HYDERABAD IN KUSHAIGUDA AREA Name: Sex: 1.Do you have any policy? A. If yes A. If yes A .Death C. Partial companies? A. health benefit C. growth benefit insurance? A. Yes A. safal jeevan C. child protection plan companies? A. wealth and health plan C. education plan B. investment plan D. marriage plan
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Age: D.O.B: ( ( ) ) B. If no B. If no ( ( ) )
2. Are you willing to take a policy with ING? 3. What type of benefit would you like to prevail? B. Maturity D. Surrender
4. What type of benefit you like in other insurance B. early age benefit D. gold benefit
5. Do you want to know the plans of ING Vysya life B. No B. retirement benefit D. freedom plan
6. What type of plans do you wish to take with ING?
7. What type of plans do you like with other insurance
8. What are plans you are looking to take in ING Vysya life insurance? A. retirement benefit plan B. creating life C. maximizing plan D. child protection
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SUMMARY AND CONCLUSIONS: - the study of my overall data relates with the different
techniques,methods,plans which are mainly benefit to the policy holders. As my overall study gives a brief explanation of the various plans followed by the ING vysya life insurance. My study mainly summarizes about the various marketing techniques used by the ING vysya life insurance to attarct the new type of customers where the competition prevails in the market. At last I briefly conclude that ING has very much potential abilities to prevail in the market.
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SUGGESTIONS
1. As more people are inclined towards taking ing vysya policy, the market share should be captured by offering them more value initially. 2. Customers are more interested in posthumous benefits the procedures and settlements in cases of eventualities should be as simple as possible, even door delivery of the settlement cheques can be thought of if viable. 3. Health and pharma sectors has got maximum opportunities so tie up with corporate hospitals can be throught of. 4. Homework is to be done in “freedom plan” and it should be made more attractive. 5. ING Vysya should come up with new “Wealth Plans” in line with copetitors as it got more takers in the market. 6. Child protection plan is not upto the mark so the policy is to be improved and should be made more attractive.
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BIBILOGRAPHY:
REFERED MARKETING BOOKS:
1. By Philip Kotler 2. By G.C.Beri
INTERNET SITES:
1. http://en.wikipedia.org/wiki/Marketing#Introduction 2. http://www.thetimes100.co.uk/theory/theory--marketingtechniques--186.php 3. http://www.erfurtmarketing.co.uk/ 4. http://www.ingvysyalife.com
REFFERED JOURNALS:
1. Brochures Of ING VYSYA life insurance. 2. Business World 3. Economic Times (brand equity) 4. 4ps Marketing
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doc_653509927.doc
Marketing strategy is defined by Prophet's David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.
REPORTS STUDY ON MARKETING TECHNIQUES OF LIFE INSURANCE COMPANY
TABLE OF CONTENTS
PAGES
1. INTRODUCTION ………………………………………..5 2. MEANING AND DEFINITION………………………….7 3. MARKETING PRINCIPLES AND TECHNIQUES……..9 4. DEFINITION AND PRINCIPLES OF INSURANCE…...14 5. AGENTS INVOLVED …………………………………...17 6. OBJECTIVES……………………………………………..18 7. RESEARCH METHODOLOGY…………………………20 8. SAMPLE SIZE……………………………………………20 9. LIMITATIONS…………………………………………..32
10. Analysis of questionnaire……….………………31-38
(DATA ANALYSIS AND PRESENTATION AND IMPLEMENTATION)
11. SUMMARY AND CONCLUSIONS…………………....43 12. SUGGESTIONS………………………………………...44 13. BIBLOGRAPHY………………………………………..45
INTRODUCTION
ING Vysya Life Insurance is a part of the ING groups the world’s fourth largest financial services company and also the world’s second largest life insurance provider. ING vysya life insurance is here to provide with the innovative and well designed products that effectively meet your life insurance needs. ING vysya life insurance stands 13 th in the fortune 500 list. ING Vysya life insurance company ltd entered the private life insurance industry in India in September 2001. it has a dedicated and committed advisor sales force of over 21000 people, working from 140 branches located in 74 major cities across the country and over 3000 employees. It’s headquarter is situated at Bangalore. The company portfolio offers products that later to every financial requirement at any life stage. It brings to you over 150 years of experience and the heritage of a name trusted in 50 countries. More than 60 million customers around the world have entrusted it with over US$700 billion of their wealth. ING vysya life CEO and managing director, Mr.Frank Koster, said that a study had found that the life insurance business had a good potential in rural India because people had a strong savings habit and a
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high level of awareness about life insurance. The bulk of the company’s business comes from the traditional distribution route of insurance agents. ING vysya life insurance recorded an income of Rs 102 crore in 2003-04. ING vysya life on Wednesday june 2007 enrolled Madras fertilizers as corporate agent to use the latter’s infrastructure to penetrate the rural life insurance market in south India. The company has over 6500 dealers and 100 field staff who deal with over one lakh farmers. The company aims to make customers look at fire insurance afresh, not just as a tax saving device as a means to add protection to life. The company portfolio offers products that later to every financial requirement, at any life stage
ORIGIN OF ING GROUP:
On the other hand, ING group originated in 1990 from the merger between Nationale and Nederlanden NV the largest Dutch Insurance Company and NMB Post Bank Group NV. Combining roots and ambitions, the newly formed company called Internationale Nederlanden Group. Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to ING Group N.V.
PROFILE:
ING has gained recognition for its integrated approach of banking, insurance and asset management. Furthermore, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with
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emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an Internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of employee benefits, i.e. arrangements of non wage benefits, such as pension plans for companies and their employees.
MEANING AND DEFINITIONS MARKETING:
Marketing is a societal process which discerns consumers' wants, focusing on a product or service to fulfill those wants, attempting to mold the consumers toward the products or services offered. Marketing is fundamental to any businesses growth. The marketing teams (marketers) are tasked to create consumer awareness of the products or services through marketing techniques. Unless it pays due attention to its products and services and consumers' demographics and desires, a business will not usually prosper over time. Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. Essentially, marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy.
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Therefore good marketing must be able to create a "proposition" or set of benefits for the end customer that delivers value through products or services. A market-focused, or customer-focused, organization first determines what its potential customer’s desire, and then builds the product or service. Marketing theory and practice is justified in the belief that customers use a product or service because they have a need, or because it provides a perceived benefit. “Two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management)”. Once a marketer has converted the prospective buyer, base management marketing takes over. The process for base management shifts the marketer to building a relationship, nurturing the links, enhancing the benefits that sold the buyer in the first place, and improving the product/service continuously to protect the business from competitive encroachments “For a marketing plan to be successful, the mix of the four "Ps" must reflect the wants and desires of the consumer s or Shoppers in the target market.” Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on insights from marketing research, both formal and informal, to determine what consumers want and what they are willing to pay for it. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process. The offer is also an important addition to the 4P's theory.
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THE American Marketing Association (AMA) states, “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.".
LEVELS OF MARKETING
Strategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the marketing mix (4 Ps)
PRINCIPLES AND TECHNIQUES OF MARKETING (4P’S& 7P’S) 1. 4P’s OF MARKETING:
Product: The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
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Pricing: This refers to the process of setting a price for a product, including discounts. The price need not be monetary - it can simply be what is exchanged for the product or services, e.g. time, energy, psychology or attention Promotion: This includes advertising, sales promotion, publicity, and personal selling, branding and refers to the various methods of promoting the product, brand, or company Placement (or distribution): Refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to the channel by which a product or services is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc These four elements are often referred to as the marketing mix, which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions.
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Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transaction.
2. 7P’s OF MARKETING:
People: Any person coming into contact with customers can have an impact on overall satisfaction. Whether as part of a supporting service to a product or involved in a total service, people are particularly important because, in the customer's eyes, they are generally inseparable from the total service . As a result of this, they must be appropriately trained, well motivated and the right type of person. Fellow customers are also sometimes referred to under 'people', as they too can affect the customer's service experience, (e.g., at a sporting event.) Process: This is the process(es) involved in providing a service and the behavior of people, which can be crucial to customer demonstrations Physical evidence:
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Unlike a product, a service cannot be experienced before it is delivered, which makes it intangible. This, therefore, means that potential customers could perceive greater risk when deciding whether to use a service. To reduce the feeling of risk, thus improving the chance for success, it is often vital to offer potential customers the chance to see what a service would be like. This is done by providing physical evidence, such as case studies, testimonial or demonstrations.
Personalization: It is here refered customization of products and services through the use of the Internet. Early examples include Dell on-line and Amazon.com, but this concept is further extended with emerging social media and advanced algorithms. Emerging technologies will continue to push this idea forward Participation: This is to allow customer to participate in what the brand should stand for; what should be the product directions and even which ads to run. This concept is laying the foundation for disruptive change through democratization of information Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is “interruptive” in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These “passive
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customer bases” will ultimately be replaced by the “active customer communities”. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and will likely to be the most disruptive force in the future of marketing
Predictive modeling: This refers to neural network algorithms that are being successfully applied in marketing problems (both a regression as well as a classification problem
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INSURANCE:
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured. The act, system, or business of insuring property, life, one's person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a payment proportionate to the risk involved.
DEFINITION OF INSURANCE:KEYMAN INSURANCE:
Keyman insurance is an important form of business insurance. There is no legal definition for Keyman Insurance. In general, it can be described as an insurance policy taken out by a business to compensate
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that business for financial losses that would arise from the death or extended incapacity of the member of the business specified on the policy. The policy’s term does not extend beyond the period of the key person’s usefulness to the business. The aim is to compensate the business for losses and facilitate business continuity. Keyman Insurance does not indemnify the actual losses incurred but compensates with a fixed monetary sum as specified on the insurance policy.
EXAMPLE:A simple example will make meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still people riding bikes cover their heads with a helmet. This helmet in such cases act as insurance by protecting him/her from the contingent accident and the ultimate danger. Though loss of life or injuries cannot be measured in financial terms, still in this materialistic world it is quantifiable which tries to compensate the potential future loss financially. Meaning of Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means.
PRINCIPLES OF INSURANCE:1 A large number of homogeneous exposure units: The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004. The existence of a large number of homogeneous
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exposure units allows insurers to benefit from the so-called “law of large numbers” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
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2 Definite Loss: The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
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3 Accidental Loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the
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insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4 Large Loss: The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5 Affordable Premium: If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. 6 Calculable Loss:
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There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7 Limited risk of catastrophically large losses: The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer’s appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. AGENTS INVOLVED IN MARKETING:
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Commission agents work for anyone who needs their services. They do not acquire ownership of goods but receive del credere commission Buying agents buy goods on behalf of producers and retailers. They have an expert knowledge of the purchasing functions Selling agents act on an extended contractual basis, selling all of the products of the manufacturer. They have full authority regarding price and terms of sale Brokers specialize in the sale of one specific product. They receive a brokerage
OBJECTIVE OF THE STUDY:1. To search for the growth opportunities available by studying the overall methods followed by the ING life insurance. -This study mainly deals with the various methods followed by ING Vysya life insurance company. 2. To study inclination of various customers towards eventualities and the benefits received by the policy holders. -benefits like death benefit, maturity benefit, mutual fund benefit, investment growth benefit. 3. To study the various policies available to cater the needs of differenr kinds of customers by the ING life insurance. -the various plans like safal jeevan plan, high life plan, child protection plan etc.,
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4 To study also the different strategies methods followed by the life insurance company. -the various techniques followed by ING to attract the new type of customers.
RESEARCH METHODOLOGY:1. Primary Data 2. Secondary Data
1. Primary Data:
The primary data collected from making phone calls and through fixing appointments with the customers.
2. Secondary Data:
The secondary data is collected from brochures, business world magazines, advertisements in television.
Sample size: - The sample size of my project is around 100 persons. Random sampling:
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Random sampling is a sampling technique where we select a group of subjects (a sample) for study from a larger group (a population). Each individual is chosen entirely by chance and each member of the population has a known, but possibly non-equal, chance of being included in the sample.
TYPES OF PLANS IN ING VYSYA:There are different types of plans where the life maker clarifies the basic reasons for buying life insurance and helps you to build a complete financial plan for life. 1. Fulfilling life plan 2. Maximizing life plan 3. Safal Jeevan (endowment plan) 4. High life plus plan 5. Life plus plan 6. Creating life (child protection plan) 7. One life plan 8. ING positive life
1. FULFILLING LIFE
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(ANTICIPATED WHOLE OF LIFE PLAN):
Fulfilling life is a plan from ING Vysya Life Insurance, which is a combination of two very useful plans. Firstly it is a money back policy and secondly a whole life plans up to the age of 85 years. The benefits are occurred both in case of death and survival occurring either within the term or a maturity.
Salient features
? Periodic survival benefits at specified intervals, as a percentage of sums assured. ? On survival after completion of age 85, full sum assured payable as per first policy anniversary. ? Payment of full sum assured in case of life assured before the completion of age 85.
2. MAXIMISING LIFE (MONEY BACK PLAN): This plan offers asset building opportunity by returning lump sum benefits at periodic intervals, along with providing life risk cover during the term of the policy without deducting any amount from the sum assured.
Salient Features
? Cash bonus, which can be utilized both to accumulate and gain on interest, or take it and spend, or utilize the accumulated amount to pay back premiums. ? Loan facility. ? Guaranteed surrender value.
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3. SAFAL JEEVAN (ENDOWMENT PLAN): The unique feature of the safal jeevan endowment plan is that it provides an opportunity to decide on the cover of your policy. It gives you the option to choose from a convenient range of fixed terms and premiums. The plan ensures an easy and hassle free process, yet offering you a comprehensive protection and savings proposition. Thus make it the simplest life insurance plan. Apart from that it ensures. ? Death benefit: sum assured with non-guaranteed bonuses, if any payable on death of the life assured. ? In-built accident cover: In case of death due to accident, an additional benefit equal to the basic sum assured is payable. ? Maturity benefit: sum assured with non-guaranteed bonuses, if any, payable on maturity. ? Mr. Koster said a recent product safal jeevan had been designed specifically for the rural markets.
Salient Features
? Surrender value ? Surrender value is available after at least 3 full years premiums are to be paid. ? Reduced paid up value ? After 3 full years premiums are paid, and if policy lapses due to non-payment of premium, the policy becomes paid-up. ? Loan facility ? You can avail loan of up to 90% of the surrender value.
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Available premium options:Yearly Rs.2,000 Rs.2,500 Rs.3,000 Rs.3,500 Rs.4000 Rs.5,000 Half yearly Rs.1,000 Rs.1,250 Rs.1,500 Rs.1750 Rs.2,000 Rs.2,500 Quarterly Rs.500 Rs.625 Rs.750 Rs.875 Rs.1,000 Rs.1,250
4. CREATING LIFE (CHILD PROTECTION PLAN): ? Guaranteed Maturity Benefit (Payment In Case Of Death And At Maturity) ? Flexible Maturity Benefit Options ? Built-In Waiver Of Premium Benefit If you have children, you must have a creating life child protection plan. This plan ensures that your child’s future in secure in case of your untimely death. Creating life also created a financial asset for your child.
Salient Features ? Rider benefit:
Term rider, accidental death rider, accidental death, disability and dismemberment and waiver of premiums rider.
? Loan benefit:
After paying a premium for three years, you will be eligible for a loan.
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? Maturity benefit:
Your child can either receive a lump sum or receive the amount in 3 to 4 equal installments after the maturity date.
? Tax benefits:
Tax benefits under section 88 and section 10 are available on all our life insurance plans and riders.
PRODUCT FEATURES:1. ELIGIBILITY • Minimum entry age-18years • Maximum entry age-55years • Maximum Maturity age-65years
PREMIUM PAYMENT TERM
Based Upon Your Current Age And The Life Cover Period, You Can Choose To Pay Premium Between 10-25years.
PREMIUM PAYMENT OPTIONS:
? Annual ? Half yearly ? Quarterly ? Monthly
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MINIMUM PREMIUM PAYABLE:
? Annual ? Half-yearly ? Quarterly ? Monthly - Rs.6,000/- Rs.3,000/- Rs.1,500/- Rs.750
5. HIGH LIFE PLUS (UNIT LINKED REGULAR
PREMIUM):It provides you with a life cover of your choice and also enhances your investment opportunities to earn returns in line with the market. In this policy the investment risk in investment portfolio is borne by the policy holder.
Main features:• Maturity Benefit: This plan matures on completion of the chosen policy term. • Death benefit: On death before the policy maturity date, the sum assured plus policy holders fund value will be payable. • Partial withdrawal benefit: This plan offers you the additional flexibility of opting for partial withdrawals any number of times after completion of three policy years, provided the policy holders fund values after such withdrawal is equal to at least one and half
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years regular premiums. Partial withdrawals would not be allowed in case the life assured is a minor till the attainment of age of maturity. • Surrender benefit: You can surrender your policy anytime after completion of the third policy year. You will receive the policy holders fund value less the applicable surrender charges as stated below. • Switch your fund: You have the flexibility to review the performance of your unit linked funds periodically and switch investments from one unit linked fund to another. Two switches per policy year are offered free of switching charges. • Settlements options: You can opt to receive your maturity benefit in a single lump.
ELIGIBILITY:
? Minimum entry age ? Maximum entry age ? Maximum maturity age ? Minimum policy term ? Maximum policy term :0 year (age last birthday) :70years :75years :5years :25years
MINIMUM PREMIUM:
Yearly Half-yearly Quarterly Monthly Rs.50,000/Rs.25,000/Rs.15,000/Rs.6,000/-
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6. LIFEPLUS PLAN (A SAVING SOLUTION):This plan simplifies the process of taking unit linked insurance. You can choose a convenient policy term of 10, 15 or 20 years. It allows you to invest and manage your investments at your own pace as per your risk profile.
MAIN FEATURES:1. Maturity benefit: the policy matures on the completion of the policy term chosen by the policy holder. 2. Death benefit: on death before the policy maturity date, the prevailing at that time or the fund value. 3. Partial withdrawal benefit: the plan offers you the additional flexilibility of opting for a partial withdrawal on completion of 5 th policy year. 4. Surrender benefit: you can surrender your policy any time after the third policy year. You will receive the fund value less the applicable surrender charges. 5. Tax benefits: under the section 80c of the income tax act 1961 the provisions are applicable to the policy holders.
Other features: Eligibility:
? Minimum entry age ? Maximum entry age ? Maximum maturity age ? Premium payment terms ? Policy term : : : : : 10years 45years 65years 10, 15 and 20years. 10, 15 and 20years
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The charges:
The plan offers complete transparency with respect to expenses charged to you. The charges are as follows: a) Policy administration charges b) Premium allocation charges c) Fund management charges d) Switching charges e) Surrender charges f) Mortality charges g) Miscellaneous charges
7. ONELIFE (UNIT LINKED SINGLE PREMIUM):It is a plan that is much more than just insurance. A superlative investment plan that gives you the unique option of making one single lump sum payment and additional top-ups as per your convenience.
Policy term:
The term of the policy is between 5 to 25 years.
Main features:1 Maturity benefit: this plan matures on the completion of the chosen policy term. You will receive the balance amount available in your individual policyholders account on the policy maturity date.
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2 Death benefit: the amount of death benefit depends upon the life cover option chosen by you. 3 Partial surrender benefit: this plan you the additional flexibility of opting for partial surrender any number of times after completion of 5 policy years, provided the balance in the individual policyholders account after such surrender is at least Rs.25,000. 4 Surrender benefit: you can surrender your policy any time after the first policy year. You will receive the balance amount available in your individual policyholder’s account less applicable surrender charges. 5 Switch your fund: you have the flexibility to review the performance of your investment plan periodically and switch investments from one plan to another.
Tax benefits:
Amounts paid by you are eligible for tax benefits as applicable under income tax act 1961.
Other features:Eligibility:
? Minimum Entry Age ? Maximum Entry Age : : 0 years (age last birthday) 70 years 75 years 5 years 25 years
? Maximum Maturity Age : ? Minimum Policy Term :
? Maximum Policy Term :
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8. ING POSITIVE LIFE:
,
The policy highlights are flexible premium paying options, no medical underwriting, flexible investment options, systematic investment benefit and partial withdrawal process in the life insurance. ING Positive is targeted at the regular savings segment. The plan is flexible so that it suits the profile of an individual customer from the ages 0 to 50 years. It allows the customer to enter the plan for as low of Rs. 834 per month. The convenient policy terms of 10, 15 or 20 years allows one to match life goals to the policy terms. There is flexibility of premium paying term from a minimum of three years to the policy term. The premiums can be invested in a choice of five fund options Debt, Secure, Balanced, Growth or Equity, based on an individuals risk appetite. During the policy term, the customer has an option to switch between these funds, or redirect future premiums into the available option. The plan also offers liquidity when needed by allowing one partial withdrawal each year after the fifth policy year. On maturity the fund balance available is paid. The maturity proceeds can also be distributed over a five year period.
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LIMITATIONS: ? The scope of the project is related with only punjagutta branch and not with other. ? The project is related to low income and middle income people. ? There is not much sufficient time to explain about the various plans.
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ANALYSIS OF THE QUESTIONNAIRE
1. Are you willing to take a policy with ING?
CATEGORY
YES NO Interpretation: As most of them have their own choice of taking policy in the real world of competition in the market where ING also plays a role of insurance sector, in my project survey where most of them have a good opinion of about 65% with ING and the rest 35% are with negative opinion.
Respondents 65 35
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Respondents
NO, 35 YES, 65
YES NO
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2 Do you have any policy? LIC ICICI 48 30 Interpretation: HDFC 12 TATA 10
Most of my findings out of 100 have a good relation in the LIC with 48%, 30% are for ICICI, 12% are for HDFC, 10% have a policy with TATA life insurance.
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50
48
40 30
30
20 12 10 10
0 LIC ICICI HDFC TATA
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3.What type of benefit would you like to prevail? DEATH 52 MATURITY PARTIAL 26 12 SURRENDER 10
Interpretation: Out of total 100 policyholders, where most of them have like their benefits in various categories, 52% are interested in death process, 26% are interested in maturity process, 12% are for partial, and 10% are for surrender process.
60 50 40 30 20 10 0
IT Y TI AL EA T UR PA R RE N DE R H
52
26 12 10
Series1
D
M AT
SU R
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4 What type of benefit you like in other insurance companies? HEALTH EARLY 51 28 Interpretation: GROWTH 19 GOLD 2
Out of total 100, most of them have their own dislike and liking about other insurance companies, where 51% are interested into health plans, 28% are interested into early protection plans, 19% are interested in easy growth plans, and 2% are only interested in gold plans of the insurance companies.
60 51 50 40 28 19
30
20 10
2 0 HEALTH EARLY GROWTH GOLD
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5. Do you want to know the plans of ING Vysya life insurance? YES NO Interpratation: 41 59
Into my total strength of 100 where 41% has agreed for ING plans and rest 59% of them have NO interest about ING.
41 YES NO 59
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6 What type of plans do you wish to take with ING? Safal jeevan retirement 40 30 Interpretation: childprotection Freedom 20 10
out of total 100 in the project most of the people who wish to go for the plans of ING are, 40% are opted for safal jeevan, 30% opted for retirement plan, 20% for child protection plan, 10% for freedom plan.
45 40 35 30 25 20 15 10 5 0 safal jeevan retirement child protection freedom 10 20 30 40
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7.What type of plans do you like with other insurance companies? wealth investment 43 36 Interpretation: education 11 Marriage 10
Out of total 100 policyholders, 43% are for wealth plans, 36% are applied for investment, 11% are for education, and 10% are applied for marriage.
50 45 40 35 30 25 20 15 10 5 0 wealth and health investment education marriage 11 10 43 36
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8 What are plans you are looking to take in ING Vysya life insurance? Retirement Creating life Maximising plan 18 Child protection 14 plan plan 49 19 Interpretation:
out of 100 persons, 49% are willing to go for retirements, 19% are for creating life, 18% are for maximising and 14% are applied for child protection.
50 40 30 20 10 0
49
Retirement plan Creating life plan
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18
14
Maximising plan Child protection
1
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STUDY OF PEOPLE AT HYDERABAD IN KUSHAIGUDA AREA Name: Sex: 1.Do you have any policy? A. If yes A. If yes A .Death C. Partial companies? A. health benefit C. growth benefit insurance? A. Yes A. safal jeevan C. child protection plan companies? A. wealth and health plan C. education plan B. investment plan D. marriage plan
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Age: D.O.B: ( ( ) ) B. If no B. If no ( ( ) )
2. Are you willing to take a policy with ING? 3. What type of benefit would you like to prevail? B. Maturity D. Surrender
4. What type of benefit you like in other insurance B. early age benefit D. gold benefit
5. Do you want to know the plans of ING Vysya life B. No B. retirement benefit D. freedom plan
6. What type of plans do you wish to take with ING?
7. What type of plans do you like with other insurance
8. What are plans you are looking to take in ING Vysya life insurance? A. retirement benefit plan B. creating life C. maximizing plan D. child protection
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SUMMARY AND CONCLUSIONS: - the study of my overall data relates with the different
techniques,methods,plans which are mainly benefit to the policy holders. As my overall study gives a brief explanation of the various plans followed by the ING vysya life insurance. My study mainly summarizes about the various marketing techniques used by the ING vysya life insurance to attarct the new type of customers where the competition prevails in the market. At last I briefly conclude that ING has very much potential abilities to prevail in the market.
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SUGGESTIONS
1. As more people are inclined towards taking ing vysya policy, the market share should be captured by offering them more value initially. 2. Customers are more interested in posthumous benefits the procedures and settlements in cases of eventualities should be as simple as possible, even door delivery of the settlement cheques can be thought of if viable. 3. Health and pharma sectors has got maximum opportunities so tie up with corporate hospitals can be throught of. 4. Homework is to be done in “freedom plan” and it should be made more attractive. 5. ING Vysya should come up with new “Wealth Plans” in line with copetitors as it got more takers in the market. 6. Child protection plan is not upto the mark so the policy is to be improved and should be made more attractive.
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BIBILOGRAPHY:
REFERED MARKETING BOOKS:
1. By Philip Kotler 2. By G.C.Beri
INTERNET SITES:
1. http://en.wikipedia.org/wiki/Marketing#Introduction 2. http://www.thetimes100.co.uk/theory/theory--marketingtechniques--186.php 3. http://www.erfurtmarketing.co.uk/ 4. http://www.ingvysyalife.com
REFFERED JOURNALS:
1. Brochures Of ING VYSYA life insurance. 2. Business World 3. Economic Times (brand equity) 4. 4ps Marketing
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