PROJECT STUDY

ON

“Effective analysis of Consumer behavior towards Investment Plans &

Products of SBI Life Insurance, Kota”

Internship Report

PGPM

2009-2011

Submitted to: Submitted by:

Mrs. Yashika Saxena Miss Parineeta Mittal
Faculty PGPM

Cerebral Business School, Kota

Student ID 101003123
 CERTIFICATE

This is to certify that Internship Report entitled “Effective analysis of

Consumer behavior towards Investment Plans & Products of SBI Life
Insurance, Kota” has been submitted by “Parineeta Mittal” under the
guidance of “Mrs. Yashika Saxena” as a partial fulfillment of the
Postgraduate Program in Management degree from Cerebral Business
School.

Director
Mr. Kafil Siddiqui

__________________________

Cerebral Business School, Kota

Student ID 101003123
FOREWORD
Training is an exercise by means of which student earn a lot of things which
cannot be taught in the class room. During training students come to know
about the principles and practices of management application in real
working condition in the organization.
The project undertaken by her in SBI Life Insurance Company Ltd, Kota,
Titled Effective analysis of Consumer behavior towards Investment
Plans & Products of SBI Life Insurance, Kota

The project on evaluation fulfills all the stated criteria and the student’s
achievements and findings are her original work.
During the training period, I have found her to be hardworking, since and
punctual. She was also found too diligent, corporative and well disciplined.

Mr. Ashish Arora Parineeta Mittal

Asst. Branch Manager
SBI Life Insurance Co. Ltd.
Kota

Student ID 101003123
DECLARATION
I hereby declare that the present report entitled “Effective analysis of
Consumer behavior towards Investment Plans & Products of SBI Life
Insurance, Kota” is based on my original work / publication has been duly
acknowledged at relevant places.

Submitted by
Parineeta Mittal
PGPM 1stsem

Student ID 101003123

PREFACE
Post Graduation program in Management (PGPM) is a certificate/diploma
course in professional studies, which includes both theoretical and practical
knowledge as part of 2-year curriculum.

Consumer behavior is a vast and complex thing in today’s world.

Understanding consumer behavior & knowing consumer are not that simple.
It is almost impossible to predict with one hundred percent accuracy.
The success or failure in this pursuit determines the difference between
success & failure of marketing efforts or even the business itself.

Consumers are moved by a complex set of deep of subtle emotions. Their

behavior springs from deeply held values & attitude their perception of the
world & their place in it from commonsense, impulse or whimsy. All this in
the outcome of a large number of external & internal influence .

Parineeta Mittal

Student ID 101003123

ACKNOWLEDGEMENT
Behind every man’s fruitful endeavor like advice, guidance & inspiration
from all possible sources lay the efforts of all those worthy people who lend
their help directly or indirectly.

Contrary to popular belief, preparing a project is not a solo activity. Many

people collaborate, assist and guide in the production of a project. Several
people are involved in sharing ideas & producing this project. Some of
deserves special mention.

It is extremely difficult to thank individually the numerous fellow persons

who patronized this project report. Indeed I cannot completely describe their
support to me but it is only a very small attempt to show my gratification to
them. I feel pleasure for paying completely hearty gratitude to them.
It is a great privilege & honor to have an opportunity to undertake training at
SBI Life Insurance Company Kota.

I pay my sincere thanks to Mr. Ashish Arora (Assistant Manager) for

helping in my training & special thanks to Mr. Manoj Jain (Sales Manager)
for giving me an opportunity to do training in SBI Life.

I feel indebted to Mr. Kafil Siddiqui (Director) ,Mr. Nishank Ray Saxena
(Manager CBS) & Mrs. Yashika Saxena (Faculty) for valuable suggestions
for bringing out this report.
Student ID 101003123
To a great extent I am very thankful to all my faculties & colleagues. Last
but not the least my sincere thanks to the almighty for all he has given me.

Parineeta Mittal

Student ID 101003123
 ABSTRACT

In today’s corporate and competitive world, I find that insurance sector has
the maximum growth and potential as compared to the other sectors.
Insurance has the maximum growth rate of 70-80% while as FMCG sector
has maximum 12-15% of growth rate. This growth potential attracts me to
enter in this sector and SBI LIFE INSURANCE has given me the
opportunity to work and get experience in highly competitive and enhancing
sector.

Companies now are tapping a lot of ways to capture the market and hence
adopting different ways to hold the large portion of the market.

My training learning helped me a lot to complete my project in order to learn

a lot of things of the corporate. As a project trainee the first task given to me
was to understand the basic behavior of the consumer in order to manipulate
the market according to our target competition. For this I developed a
questionnaire and I did my survey in Kota city.

This job training also helped me a lot in understanding the process of

building effective marketing channels for life insurance products by
establishing network of life insurance advisors.

Student ID 101003123
The success story of good market share of different market organizations
depends upon the availability of the product and services near to the
customer, which can be distributed through a distribution channel. In
Insurance sector, distribution channel includes only agents/advisors or
agency holders of the company. If a company like SBI LIFE INSURANCE,
LIC, ICICI PRUDENTIAL, RELIANCE LIFE INSURANCE, TATA AIG,
MAX etc. has adequate agents in the market, they can capture big market as
compared to the other companies.

I have pleasure in submitting this report on “Effective analysis of

Consumer behavior towards Investment Plans & Products of SBI Life
Insurance, Kota”.

Parineeta Mittal

Student ID 10100312
 CONTENTS

CERTIFICATES
FOREWORD
DECLARATION
PREFACE
ACKNOWLEDGEMENT
ABSTRACT
Page no.

CHAPTER I - COMPANY PROFILE 1-25

CHAPTER II - CONCEPTUAL FRAMEWORK 26-55

CHAPTTER III - SWOT ANALYSIS 56-58

CHAPTER IV - RESEARCH METHODOLOGY 59-64

CHAPTER V - DATA ANALYSIS AND

INTERPRETATION 65-73

CHAPTER VI - CONCLUSION 74-75

CHAPTER VII - SUGGESTIONS 76

APPENDICES
BIBLOGRAPHY
 Chapter I

COMPANY PROFILE
 CONCEPT OF INSURANCE

Insurance is a policy from a large financial institution that offers a person,

company or other entity reimbursement or financial protection against
possible future losses or damages.

Insurance may be described as a social device to reduce or eliminate risks of

loss to life and property. It is a provision, which a prudent man makes
against inevitable contingencies, loss or misfortune.

Under a plan of insurance, a large number of people associate themselves by

sharing risks attached to individuals. As in private life, in business also there
are dangers and risks of different kinds. The aim of all type of insurance is to
make provision against such dangers. The risks, which can be insured
against, include fire, the perils of sea (marine insurance), death (life
insurance) and accidents. Any risk contingent upon these may be insured
against at a premium a commensurate with the risk involved. Thus,
collective bearing of risks is insurance.

Insurance business is divided into four classes, such as Life Insurance, Fire,
Marine and Miscellaneous Insurance.

“Insurance is a plan by which large number of people associate themselves

and transfer to the shoulders of all, risks that attach to individuals.”
John Magee
1
“Insurance is a provision which a prudent man makes against for the loss or
inevitable contingencies, loss or misfortune.”
Thomas

INSURANCE PROVIDE: -

• Protection to investor.
• Accumulation of savings.
• Old age pensions
• Tax benefits

Functions of insurance:

• Provide Protection: The primary function of insurance is to provide

protection against future risk, accidents and uncertainty. Insurance
cannot check the happening of risk, but can certainly provide for the
losses of risk. Insurance is actually a protection against economic loss,
by sharing the risk with others.

• Collective bearing of risk: Insurance is an instrument to share the

financial loss of few among many others. Insurance is a mean by
which few losses are shared among larger number of people. All the
insured contribute the premiums towards a fund and out of which the
persons exposed to a particular risk is paid.

2
• Assessment of risk: Insurance determines the probable volume of
risk by evaluating various factors that give rise to risk. Risk is the
basis for determining the premium rate also.

• Provide certainty: Insurance is a device, which helps to change from

uncertainty to certainty. Insurance is device whereby the uncertain
risks may be made more certain.

• Small capital to cover larger risk: Insurance relieves the

businessmen from security investments, by paying small amount of
premium against larger risks and uncertainty.

• Contributes towards the development of industries: Insurance

provides development opportunity to those larger industries having
more risks in their setting up. Even the financial institutions may be
prepared to give credit to sick industrial units which have insured their
assets including plant and machinery.

• Means of savings and investment: Insurance serves as savings and

investment, insurance is a compulsory way of savings and it restricts
the unnecessary expenses by the insured's For the purpose of availing
income-tax exemptions also, people invest in insurance.

3
 • Source of earning foreign exchange: Insurance is an international
business. The country can earn foreign exchange by way of issue of
marine insurance policies and various other ways.
• Risk free trade: Insurance promotes exports insurance, which makes
the foreign trade risk free with the help of different types of policies
under marine insurance cover.

LIFE INSURANCE:

Life insurance may be defined as a contract in which the insurer, in

consideration of a certain premium, either in a lump sum or by other
periodical payments, agrees to pay the assured, or to the person for whose
benefit the policy is taken, the assured sum of money, on the happening of a
specified event contingent on the human life.

Life insurance is a contract under which the insurer (Insurance Company) in

consideration of a premium paid undertakes to pay a fixed sum of money on
the death of the insured or on the expiry of a specified period of time
Whichever is earlier. In case of life insurance, the payment for life insurance
policy is certain. The Event insured against is sure to happen only the time
of its happening is not known. So life insurance is known as ‘Life
Assurance’. The subject matter of insurance is life of human being. Life
insurance provides risk coverage to the life of a person. On death of the
person insurance offers protection against loss of income and compensate
the titleholders of the policy.
4
ROLE OF LIFE INSURANCE: -

Life insurance as an investment:

Insurance products yield more than any other investment instruments and it
also provides added incentives or bonus offered by insurance companies.

Life insurance as risk cover:

Insurance is all about risk cover and protection of life. Insurance provides a
unique sense of security that no other forms of invest can provide.

Life insurance as tax planning:

Insurance serves as an excellent tax saving mechanism too.

IMPORTANCE OF LIFE INSURANCE:

Protection against untimely death:

Life insurance provides protection to the dependents of the life insured and
the family of the assured in case of his untimely death. The dependents or
family members get a fixed sum of money in case of death of the assured.

Saving for old age:

After retirement the earning capacity of a person reduces. Life insurance
enables a person to enjoy peace of mind and a sense of security in his/her
5
Promotion of savings:
Life insurance encourages people to save money compulsorily. When life
policy is taken, the assured is to pay premiums regularly to keep the policy
in force and he cannot get back the premiums, only surrender value can be
returned to him. In case of surrender of policy, the policyholder gets the
surrendered value only after the expiry of duration of the policy.

Initiates investments:
Life Insurance Corporation encourages and mobilizes the public savings and
canalizes the same in various investments for the economic development of
the country. Life insurance is an important tool for the mobilization and
investment of small savings.

Credit worthiness:
Life insurance policy can be used as a security to raise loans. It improves the
credit worthiness of business.

Social Security:
Life insurance is important for the society as a whole also. Life insurance
enables a person to provide for education and marriage of children and for
construction of house. It helps a person to make financial base for future.

Tax Benefit:
Under the Income Tax Act, premium paid is allowed as a deduction from the
total income under section 80C.
6
GENERAL INSURANCE

Insurance of the non-life assets are called general insurance, this includes
loss of asset against water, fire, earthquake etc. With the opening up of the
Indian Market in Insurance sector for private players, in General Insurance
the monopoly of the general Insurance public sector’s companies has been
broken. With the entrance of the new private player market innovative
technique has been introduced to capture the market. In general the private
players have captured Insurance around 17% of the market.

General Insurance is a sector, which alone has many type of insurance

coverage in it like Fire Insurance, Marine Insurance, motor Insurance,
Liability Insurance, Engineering Insurance etc.

7
 INDIAN INSURANCE INDUSTRY
HISTORY:

The insurance sector in India has completed all the facets of competition –
from being an open competitive market to being nationalized and then
getting back to the form of a liberalized market once again. The history of
the insurance sector in India reveals that it has witnessed complete
dynamism for the past two centuries approximately.

Life insurance came to India from England in 1818 when oriental life
insurance company started in Calcutta by Europeans. After this many
insurance companies had been started in India. But these companies were
looking after only the needs of European community established in India.
These companies were not insuring Indian people. First Indian life insurance
company came as Bombay mutual life insurance assurance. Second
company was Bharat insurance company came in 1896. After this the united
India in madras, national Indian and national insurance in Calcutta and the
co-operative assurance in Lahore were established in 1906.

To regulate Indian insurance business first insurance act came in 1912 as life
insurance company act and provident fund act. These acts consist of
premium rates tables and periodical valuations of companies. In the first
two-decade of 20th century many life insurance companies were started. So
the insurance act came in 1938 to governing life and non life insurance
companies and to provide strict state control.
8
In 1956 the life insurance business in India was nationalized. In 1956 life
insurance corporation of India (LIC) was created to spreading life insurance
much more widely particularly in rural areas. In that year LIC had 5 zonal
offices, 33 divisional offices and 212 branch offices. In 1957 the business of
LIC of sum assured of 200crores, 1000crores in 1970, and 7000crores in
1986.

Important milestones in the Indian life insurance business:

1912: The Indian Life Assurance Companies Act came into force for
regulating the life insurance business.

1928: The Indian Insurance Companies Act was enacted for enabling the
government to collect statistical information on both life and non-life
insurance businesses.

1938: The earlier legislation consolidated the Insurance Act with the aim
of safeguarding the interests of the insuring public

1956: 245 Indian and foreign insurers and provident societies were taken
over by the central government and they got nationalized. An Act of
Parliament, viz. LIC Act, 1956, formed LIC. It started off with a capital
of Rs. 5 crore and that too from the Government of India.

9
Important milestones in the Indian general insurance business:

1907: The Indian Mercantile Insurance Ltd. was set up which was the
first company of its type to transact all general insurance business.

1957: General Insurance Council, an arm of the Insurance Association of

India, framed a code of conduct for guaranteeing fair conduct and sound
business patterns.

1968: The Insurance Act improved for regulating investments and set
minimal solvency levels and the Tariff Advisory Committee was set up.

1972: The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India. It was with effect
from 1st January 1973.

107 insurers integrated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC was incorporated as a company.

10
 INSURANCE REGULATORY DEVELOPMENT
AUTHORITY (IRDA):

In 1999, the Insurance Regulatory and Development Authority (IRDA) were

constituted as an autonomous body to regulate and develop the insurance
industry. The IRDA was incorporated as a statutory body in April 2000. The
key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower
premiums, while ensuring the financial security of the insurance market. The
IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of
up to 26%. The Authority has the power to frame regulations under Section
114A of the Insurance Act, 1938 and has from 2000 onwards framed various
regulations ranging from registration of companies for carrying on insurance
business to protection of policyholders’ interests.
ROLE OF IRDA:

• Protecting the interests of policyholders.

• Establishing guidelines for the operations of insurers and brokers.

• Specifying the code of conduct, qualifications, and training for

insurance intermediaries and agents.

• Promoting efficiency in the conduct of insurance business.

11
 • Regulating the investment of funds by insurance companies.

• Specifying the percentage of business to be written by insurers in rural

sectors.

• Handling disputes between insurers and insurance intermediaries.

INSURANCE COMPANIES IN INDIA

IRDA has tilled now provided registration to 12 private life insurance

companies and 9 general insurance companies. If the existing public sector
insurance companies are considered then there are presently 13 insurance
companies in the life side and 13 companies functioning in general insurance
business. General Insurance Corporation has been sanctioned as the "Indian
reinsurer" for underwriting only reinsurance business.

12
 ABOUT THE COMPANY

SBI Life Insurance Company Ltd

SBI Life Insurance is a joint venture between State Bank of India and BNP
Paribas Assurance SBI owns 74% of the total capital and BNP Paribas
Assurance the remaining 26%. SBI Life Insurance has an authorized capital
of Rs.2,000 crore and a paid up capital of Rs.1,000 crore. State Bank of
India enjoys the largest banking franchise in India. Along with its 6
Associate Banks, State Bank Group has the unrivalled strength of over
16,000 branches across the country, arguably the largest in the world. BNP
Paribas is the 1st largest French company and ranks 5th in the banking
industry worldwide, 1st bank in Euro Zone as per Global 2000 Forbes’ 2008.
It is 6th most valuable international banking brand as per Brand Finance
2008.

BNP Paribas Assurance is the insurance arm of BNP Paribas - Euro Zone’s
leading Bank. BNP Paribas, part of the worlds top 10 groups of banks by
market value and part of Europe top 3 banking companies, is one of the
oldest foreign banks with a presence in India dating back to 1860. BNP
Paribas Assurance is the fourth largest life insurance company in France,
and a worldwide leader in Creditor insurance products offering protection to
over 50 million clients. BNP Paribas Assurance operates in 41 countries
mainly through the Bancassurance and partnership model.

13
Multi-distribution Model

SBI Life has a unique multi-distribution model encompassing vibrant

Bancassurance, Retail Agency, Institutional Alliances and Corporate
Solutions distribution channels.

SBI Life extensively leverages the State Bank Group relationship as a

platform for cross-selling insurance products along with its numerous
banking product packages such as housing loans and personal loans. SBI’s
access to over 100 million accounts across the country provides a vibrant
base for insurance penetration across every region and economic strata in the
country, thus ensuring true financial inclusion. Agency Channel, comprising
of the most productive force of over 68,000 Insurance Advisors, offers door-
to-door insurance solutions to customers.

14
OUR COMMITMENT

U S Roy (MD & CEO)

SBI Life Insurance Co. Ltd.

Our company, with its unique brand and highly committed workforce, is
determined to increase life insurance penetration and offer need-based
solutions our citizens, enabling them to live life to the fullest.

I invite you to explore the several possibilities available for being an integral
part of this dream, of one of the fastest growing life insurance companies in
the country.

For customers, SBI Life – a company of State Bank Group which is

synonymous with trust for more than 200 years – presents security for you
and your loved ones through its range of innovative life insurance solutions.
With the backing of the largest distribution network in the country of over
14,500 bank branches of State Bank and nearly 200 full-service offices of
the company, you are always close to your trusted life insurer.

15
For prospective business partners, by associating with one of the largest
financial brands in the country, SBI Life gives you a lucrative business
opportunity to profit from serving millions of Indians. In terms of career
opportunities, SBI Life presents its most valuable asset, its employees, a
work environment which is a blend of security and excellence.

“We seek opportunities to give qualified minority suppliers a chance to

succeed. It benefits SBI LIFE and our communities.”
U S Roy
MD & CEO
SBI LIFE Insurance Co. Ltd.

16

Our Mission:
"To emerge as the leading company offering a comprehensive range of life
insurance and pension products at competitive prices, ensuring high
standards of customer satisfaction and world class operating efficiency, and
become a model life insurance company in India in the post liberalization
period".

Our Values:

• Trustworthiness
• Ambition
• Innovation
• Dynamism
• Excellence

Key Milestones

Financial Year 08-09:

• Bagged the coveted personal finance award-Outlook Money NDTV

Profit “best Life Insurer 2008”.
• Ranked among global top three in terms of number of Million Dollar
Round Table (MDRT) members.

17

• CRISIL has reaffirmed its highest financial rating AAA/Stable to SBI

Life. In 2007 SBI Life became the first life insurer in India to receive this
rating from CRISIL, country’s leading rating agency.
• Recently ICRA has assigned iAAA rating indicating highest claims
paying ability to SBI Life Insurance.
• Retains ISO 9001:2000 certificate for superior claim settlement process.

Financial Year 07 - 08:

• Rated as the ‘The Most Trusted Private Life Insurer’ according to a

survey conducted by Brand Equity in association with AC Nielsen
ORG-MARG and the Economic Times Intelligence Bureau.
• Became first life insurer in India to receive the highest financial rating
‘AAA’ from CRISIL, the countries best known rating agency in 2007.
• Ranked amongst global top five life insurance companies in the
number of MDRT members.
• Forayed into micro insurance with the launch of ‘Grameen Shakti’ in
Bhubaneswar, Orissa for the economically underprivileged sections of
society.
• Received ISO 9001: 2000 certification for superior claim settlement
process.
• Became the only domestic life insurer to achieve CMMI Level 3
certification for IT processes and software development capabilities.

18

Financial Year 06-07:

 • Second consecutive year of Profitability.
• Leads Private Life Insurance Companies in Lives covered: 6.49
Million lives covered.

Financial Year 05-06:

• Becomes the first Life Insurer to make Profits.

19

BRANCHES OF SBI LIFE INSURANCE

 20

PRODUCT PROFILE
UNIT LINKED PRODUCTS:
• Horizon 11
• Unit plus 11
• Unit plus child plan
• Unit Plan Elite
• Smart Ulip

PENSION PRODUCTS:
• Horizon 11 Pension
• Unit Plus 11 Pensions
• Lifelong Pension
• Immediate Annuity

21
MONEY BACK SCHEME PRODUCTS:
 • Money Back
• Sanjeevan Supreme

PURE PROTECTION PRODUCTS:

• Swadhan
• Shield
• Keyman

22
PROTECTION CUM SAVINGS PRODUCTS:
 • Sudarshan
• Scholar ll
• Setubandhan

GROUP EMPLOYEE BENEFIT PRODUCTS

RETIREMENT SOLUTIONS:
• Cap Assure Gratuity
• Cap Assure Superannuation
• Cap Assure Leave Encashment
• Group Immediate Annuity
• SBI Life Golden Gratuity

23
PROTECTION PLAN:
 • Sampoorn Suraksha
• SBI Life Group Term Life Scheme In Lieu of EDLI

SPECIALIZED TERM INSURANCE:

• SBI Life Keyman Insurance

24
GROUP LOAN PROTECTION PRODUCTS

DHANARAKSHA PLUS:
• Dhanaraksha Plus SP
• Dhanaraksha plus LPPT
• Dhanaraksha plus RP

GROUP SAVINGS PROTECTION PLAN:

• Nidhi Raksha RP

GROUP MICRO INSURANCE:

• Grameen Shakti and Super Suraksh
 25

Chapter II

Conceptual Framework
 Consumer Behavior

Introduction:

“Think of the consumer first, if you would have the consumer think of you.”
The consumption pattern and the behavior of the consumer have been
changing gradually. Since the last two decades we have seen many changes
occurring in the attitude, perception, motivation, spending habits, purchase
and post purchase behavior of the consumer.

The consumer of 80’s was austere and brought those things that were needed
by him and the household. He was not very adventurous in spending habits.
He had the restraint put on him by low income, the non-availability of
products and traditional methods of buying. Most of these were for all the
classes of consumers the upper or lower income groups. Even if they had the
money and the willingness to buy, they could not purchase because of the
limited choice of product, even after having booked the same a few year
earlier. Under these conditions the entire definition of consumer behavior
was put to limitation.

The behaviors of today’s consumers are changed due to the economic

liberalization and economic crisis. He does not have to buy sub quality and
shoddy products. He can dictate his terms, and as somebody has rightly
stated. “The consumer is not only the king but also the queen, the prince and
the princess.” He cans from a plethora of brands, return the product if not
approved.
26
Consumer behavior is rapidly growing discipline of study. It means more
than just how person buys products. It is a complex & multinational process
and reflects the totality of consumer’s decision with respect to acquisition,
consumption and disposal activities. We as consumers exhibit very
significant differences in our buying behavior and play an important role in
local, national or international economic conditions. One of the very few
aspects common to all of us is that we are all consumers and the reason for
the business firm to come into being is the presence of consumer who have
unfulfilled or partially fulfilled needs and wants. No matter whom we are –
urban or rural, male or female, young or old, rich or poor, educated or
uneducated, believer or non-believer, or whatever – we are all consumer. We
consume or use on a regular basis food, shelter, clothing, education,
entertainment, brooms, toothbrushes, vehicles, domestic help, healthcare and
other services, necessities, comforts, luxuries, and ideas. Organization
realizes that there marketing effectiveness in satisfying consumer needs and
wants at profit depends on a deeper understanding of consumer behavior.

“Consumer is the king”

The consumer must always be at the center of the organizational process.

Again, in the old economy, consumer experiences were often deemed
secondary to take any decision. In the new economy, consumers are often
asked to participate in decision-making.

27
 CONCEPT OF CONSUMER BEHAVIOR

CONSUMER:

A “Consumer” is one who purchases a product or service for a particular

organization. One thing that we are all consumer, infect everybody in this
world is a consumer. Everyday is our life we are buy and consuming an
incredible variety of goods and services. However, we all have different
tasks, like & dislike and adopt different patterns while making purchase
decision. Each consumer is unique and this uniqueness is reflecting in
competition behavior and pattern and process of purchase.

Consumers have been defined very strictly in terms of economic goods and
services wherein a monitory exchange is involved. The term consumer is
used for both personal consumers and organizational consumers and
represents two different kinds of consuming entities.

Personal Consumer- The personal consumer buys good and services for his
use or for household consumption or for just one member of the family. In
all these instances, the goods are brought for final use, referred as “end
users” or “ultimate consumers”.

28
Organizational consumer- The other category of consumer is the
organizational consumers, which include profit and not-for-profit
organizations. Government agencies and institutions (such as local or state
government, schools and hospitals) buy products, equipment and services
required for running these organizations.

Anyone who regularly makes purchases from a store or a company is termed

as “consumer” of that store or the company. Thus a customer is typically
defined in terms of specific store or company.

CONSUMER BEHAVIOR DEFINITION

Consumer behavior can be defined as:

“Consumer behavior referred to as the study of when, why, how, where
and what people do or do not buy products.”

“Consumer behavior is a decision making process and physical activity

engaged in while evaluating, acquiring, using and disposing of goods
and services.”

We can also defined consumer behavior as the “decision process” and

physical activity engaged in by individuals.

Consumer behavior is a complex, dynamic, multidimensional process and all

decisions are based on assumption about consumer behavior.
29
Consumer decision process

Decision:

A decision is the selection of an alternative out of the several numbers of

alternatives available. It is only when there is two or more alternative
available that there is the need to make a choice. In a field of consumer, we
are only concern with situation in which the consumer has to take the
purchase decision where there is a choice available.

The decision-making process consists of a series of steps, which the

consumer undergoes. First of all, the decision is made to solve a problem of
any kind. This may be the problem of creating a cool atmosphere in your
home. For this, information search is carried out, to find how the cool
atmosphere can be provided, e.g. by an air-conditioner or by a water-cooler.
This leads to the evaluation of alternatives and a cost benefit analysis is
made to decide which product and brand image will be suitable, and can take
care of problem suitably and adequately. The constant use of the product
leads to the satisfaction or dissatisfaction of the consumer, which leads to
repeat purchases, or to the rejection of the product.

30
 STAGES IN THE BUYING DECISION PROCESS

Consumer’s buying decision and consumption process of the product or

services always take place in the context of some specific situation.
Depending on the set of circumstances, consumer’s behavior may take any
number of decisions.

Smart companies research the buying decision process involved in their

producer category. They ask the consumer when they first became
acquainted with the product category & brands, how they make their brand
choice & how satisfied they are after the purchase.

The consumer thought five stages as shown in the figure. Clearly the buying
process starts long before the actual purchase & has consequences long
afterward.

31
Following model can represent the typical buying process:

Problem
Recognition

Information
Search

Evaluation of
Alternatives

Purchase
Behavior

Post-Purchase
Action

32
1. Problem Recognition:
Problem Recognition is the first stage of the long process of consumer
decision-making and it is important for several reasons. Firstly it provides an
initial clue as to why a buyer buys what he intends to. Secondly it gives a
definite direction to his or her subsequent purchase behavior stages like
information search and evaluation of alternatives. Finally it provides
marketers with an immense scope for using their influence in how the buyers
may or may not recognize their needs. Problem recognition is a perceived
gap between existing and desired consumer position. Existing consumer
position is how one feels presently about the product. Desired position is his
expectation and anticipation about the product.

2. Information Search:
Information search starts the moment a need is recognized. It is a deliberate
attempt to gain appropriate knowledge of stores from where to purchase the
goods is gained. Before making actual decision the consumer is inclined to
search for more information’s. These are the sources of consumer
information divide into five groups:
• Personal sources- These include family, friends, neighbors & peer-
gap.
• Commercial sources- Advertising, sales-persons, dealers, packaging
& displays.
• Public sources- Mass media, consumers, rating organizations.
• Experiential sources- This refers to inspection of products or product
trial like handling, examining and using the products.
33
 • Independent sources- It includes newspapers, magazines, journals,
consumer reports and government agencies.

The company should identify the consumer information & evaluate their
relative importance. It must also identify the other brands in consumer
choice set, so that it can plan competitive appeals.

3. Evaluation of alternatives:
There is no single evaluation process used by all consumers or by one
consumer in all buying situation. Some consumer try to satisfy their need,
some look for certain benefit from the product solution & the other sees each
product as bundle of attributes with varying abilities for delivering the
benefits to satisfy this need.

Consumer will pay the most attention to attributes that deliver the sought-
after benefits. The market for a product can often be segmented according to
attributes that are important to different consumer groups.

BELIEFS AND ATTRIBUTES-

Belief is a descriptive thought that a person holds about something. People’s
beliefs about the attributes and benefits of a product or brand influence their
buying decisions.
Attitudes indicate knowledge, feelings and intended action for the given
stimulus. An attitude provides a series of cues to marketers. They predict
future purchases, redesign marketing effort and make attitude more
favorable.
34
4. Purchase process or Purchase behavior of buyer:
Purchase is very important as it generates revenue and dislikes of the
consumer. Purchase is important to the marketer as the product was planned,
produced, priced, promoted and distributed after a lot of effort. If purchase
does not take place, the marketer is failed in his marketing effort. Purchase is
important to the marketer for his success, for achieving his objectives and far
formulating competitive strategies against the competitors. Similarly, the
consumer pays money and expects certain benefits and satisfaction from the
product. It marks the end of his search, end of his efforts and chooses the
brands of his choice for expected benefits.

For consumer perspective, purchase action marks the end of their effort for
an optimum brand choice, not only do they give up money in return for a
product, but the choice of brand once made, also mean that they must
depend on it alone for the delivery of expected benefits and satisfaction, at
least until next purchase occasion.

Purchase decision is influenced by two major sets of forces. While the first
set of forces relates to buying intention the second set comprises situational
factors. Both factors exert a joint influence on the purchase process.

Buying intentions
Purchase
Situational factors

35
5. Post-Purchase Action

It is important to know whether consumer likes his product or not. He wants

the feedback about his product so that corrective action, if necessary can be
taken and the marketing mix are modified accordingly. Post purchase
behavior is the reaction of the consumer; it gives an idea of his likes and
dislikes, preferences, attitudes and satisfaction towards the product.

After purchasing the product, the consumer will experience some level of
satisfaction or dissatisfaction consumer will also engage in post purchase
action.

The consumer’s satisfaction or dissatisfaction with the product will

subsequent behavior, if the consumer is satisfied, he will exhibit a higher
probability of purchasing the product again.

36
 Changing perception of Indian customers

Indian Insurance consumers are like Indian Voters, they are soft but when
time is right and ripe, they demand and seek necessary changes. De-tariff of
many Insurance Products are the reflection of changing aspirations and
growing demand of Indian consumers.

For historical years, Indian consumers were at receiving end. Insurance

Product was underwritten and was practically forced onto consumers on a
“Take-it-As-it-basis”. All that got changed with passage of IRDA act in
1999. New insurance companies have come into existence leading to open
competition and hence better products for customers.

Indian customers have become very sensitive to Premium as well as the

Products that are given to them. There are not ready to accept any product,
no matter even if that is coming from the market leader, should that product
is not serving the purpose. A case in point is ULIP Product in Life Insurance
segment are new age Avatar. The new products are constantly being
demanded by Indian consumers, which are putting huge pressures on
Insurance companies and Brokers to respond.

37
Now Indian customers are aware of insurance industry and insurance
products provided by companies. They have become more sensitive. They
would not accept any type of insurance product unless it fulfills their
requirements and needs. In historic day’s customers looking at insurance
products as a life cover which can provide security against any unacceptable
events, but now customers look at insurance products as an investment as
well as life cover. So today’s customers wants good return from the
insurance companies. The Indian customer’s forms the pivot of each
company’s strategy.

Investment of Indian household savings (as a % in different sector)

BANK DEPOSITS 39
CORP. BANKS 2
SHARES AND DEBENTURES 1
MUTUAL FUNDS 2
NBFC’S 3
GOVT. BONDS 13
INSURANCE 13
PF/ RETIRE FUNDS 21
CURRENCY 6

Source: www.avivaindia.com

38
Changing face of Indian insurance industry
After the Insurance Regulatory and Development Authority Act have been
passed there has been establishment of many private insurance companies in
India. Previously there was a monopoly business for Life Insurance
Corporation of India (L.I.C.) who was the only life-insurance company for
the people till 2000. L.I.C. still holds 71.4% of the market share in 2006. But
after the introduction of private life insurance companies there is a great
competition in Indian market now. Everyone is trying to capture the fresh
market here and penetrate it with aggressive marketing strategies. Today
life-insurance is not only limited up to just life risk cover and maturity
period bonuses but changed to greater return from the investments. With the
introduction of the unit-linked insurance policies these companies are
investing the money in different investment instruments like shares, bonds,
debentures, government and other securities. People are demanding for
higher returns with the life risk cover and private companies are giving 30-
40% average growth per annum. These life-insurance companies have every
kind of policies suiting every need right from financial needs of, marriage,
giving birth and rearing up a child, his education, meeting daily financial
needs of life, pension solutions after retirement. These companies have
every aspects and needs of our life covered along with the death benefit.

39
In India only 25% of the population has life insurance. So Indian life-
insurance market is the target market of all the companies who either want to
extend or diversify their business. To tap the Indian market there has been
tie-ups between the major Indian companies with other International
insurance companies to start up their business. The government of India has
set up rules that no foreign insurance company can set up their business
individually here and they have to tie up with an Indian company and this
foreign insurance company can have an investment of only 24% of the total
start-up investment.

Indian insurance industry can be featured by:

• Low market penetration.
• Ever growing middle class component in population.
• Growth of customer’s interest with an increasing demand for better
insurance products.
• Application of information technology for business.
• Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has more than a dozen private
players, each of which are making strides in raising awareness levels,
introducing innovative products and increasing the penetration of life
insurance in the vastly underinsured country. Several of private insurers
have introduced attractive products to meet the needs of their target
customers and in line with their business objectives. The success of their
effort is that they have captured over 28% of premium income in five years.
40

The biggest beneficiary of the competition among life insurers has been the
customer. A wide range of products, customer focused service and
professional advice has become the mainstay of the industry, and the Indian
customer’s forms the pivot of each company’s strategy. Penetration of life
insurance is beginning to cut across socio-economic classes and attract
people who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning

tool. Apart from the traditional term and saving insurance policies, industry
has seen the entry and growth of unit-linked products. This provides market
linked returns and is among the most flexible policies available today for
investment. Now products are priced, flexible, and realistic and sustain so
people in better position to understand the risk and benefits of the product
and they are accepting these innovative products.

So it is clear that the face of life insurance in India is changing, but with the
changes come a host of challenges and it is only the credible players with a
long term vision and a robust business strategy that will survive. Whatever
the developments, the future and the opportunities in this industry will surely
be exciting.

41
The number of companies in Insurance particularly in Life Insurance has
changed drastically now the number is in 22. List of them are mentioned as
below:-
 1. Bajaj Allianz Life Insurance
2. Birla Sun Life Insurance
3. HDFC Standard Life Insurance
4. ICICI Prudential Life Insurance
5. ING Vysya Life Insurance
6. Max New York Life Insurance
7. Met Life Insurance
8. Om Kotak Mahindra Life Insurance
9. SBI Life Insurance
10.TATA AIG Life Insurance
11.Reliance Life Insurance(AMP Sanmar AssuranceCo. Ltd.)
12.Dabur CGU Life Insurance
13.AVIVA Life Insurance
14.Sahara Life Insurance
15.Shriram Life Insurance
16.Bharti AXA Life Insurance
17.Future Generali Life
18.IDBI Forlis Life Insurance
19.Canara HSBC Oriental Bank Of Commerce
20. AEGON Religare Life Insurance
21.DLF Parameria Life Insurance
22.Star Union Dai-ichi Life Insurance
42
Possibilities for insurance companies in India:
 • Further deregulation of the market.
• Greater concern for the customers.
• Newer products and services.
• Competition and quality consciousness.
• Cost effective operations.
• Restructuring of the public sector.
• Consolidation of domestic insurance markets.
• Technology driven shift in product design.
• Actual operations and distribution.
• Convergence of financial services.

Various types of life insurance policies:

• Endowment policies: This type of policy covers risk for a specified

period, and at the end of the maturity sum assured is paid back to
policyholder with the bonuses during the term of the policy.

• Money back policies: This type of policy is for periodic payments of

partial survival benefits during the term of the policy as long as the
policy holder is alive.

43
• Group insurance: This type of insurance offers life insurance
protection under group policies to various groups such as employers
 employees, professionals, co-operatives etc it also provides insurance
coverage for people in certain approved occupations at the lowest
possible premium cost.

• Term life insurance policies: This type of insurance covers risk only
during the selected term period. If the policyholder survives the term,
risk cover comes to an end. These types of policies are for those
people who are unable to pay larger premium required for endowment
and whole life policies. No surrender, loan or paid up values are in
such policies.

• Whole life insurance policies: This type of policy runs as long as the
policyholder is alive and is covered for the entire life of the
policyholder. In this policy the insured amount and the bonus is
payable only to nominee on the death of policyholder.

• Joint life insurance policies: These policies are similar to

endowment policies in maturity benefits and risk cover, but joint life
policies cover two lives simultaneously such as married couples. Sum
assured is payable on the first death and again on the death of survival
during the term of the policy.

44
 • Pension plan: a pension plan or annuity is an investment over a
certain number of years but does not provide any life insurance cover.
It offers a guaranteed income either for a life or certain period.

• Unit linked insurance plan: ULIP is a kind of insurance plan, which

provides life cover as well as return on premium paid over a certain
period of time. The investment is denoted as units and represented by
the value called as net asset value (NAV).

Different distribution channels in India:

A multi-channel strategy is better suited for the Indian market. Indian

insurance market is a combination of multiple markets. Each of the markets
requires a different approach. Apart from geographical spread the socio-
cultural and economic segmentation of the market is very wide, exhibiting
different traits and needs. Different multi-distribution channels in India are
as follows:

• Agents: Agents are the primary channels for distribution of insurance.

The public and private sector insurance companies have their
branches in almost all parts of the country and have attracted local
people to become their agents. Today's insurance agent has to know
which product will appeal to the customer, and also know his

45
 competitor's products to be an effective salesman who can sell his
company, the product, and himself to the customer. To the average
customer, every new company is the same. Perceptions about the
public sector companies are also cemented in his mind. So an
insurance agent can play an important role to create a good image of
company.

• Banks: Banks in India are all pervasive, especially the public sector
banks. Many insurance companies are selling their products through
banks. Companies, which are bank, owned, they are selling their
products through their parent bank. The public sector banks, with their
vast branch networks, are helpful to insurance companies. This
channel of selling insurance is known as Bank assurance.

46
INSURANCE COMPANY ASSOCIATE BANKS
SBI Life State Bank of India, BNP Paribas
ICICI Prudential ICICI Bank, Bank of India, Citibank,
Allahabad Bank, Federal Bank,
South Indian Bank, Punjab and
Maharashtra Cooperative Bank
Birla Sun Life Deutsche Bank, Citibank, Bank of
Rajasthan, Andhra Bank
ING Vysya Bank Vysya Bank
Aviva Life Insurance ABN Amro Bank, Canara Bank
HDFC Standard Life HDFC Bank, Union Bank, Indian
Bank
Met Life Karnataka Bank, J&K Bank

Source: Hindu Business Line

• Brokers: Now a day’s different financial institution are selling

insurance. These financial institutions are known as brokers. They are
taking some underwriting charges from the insurance companies to
sell their insurance products.

47
• Corporate agents: Corporate agency is a cross selling type of
channel. Insurance companies’ tie-up with business houses in other
industries to sell insurance either to their employees or their
 customers. Insurance industry, during the past 2 years has witnessed a
number of such strategic tie-ups and alliances. Corporate agents have
become a major force to reckon with in distributing insurance
products. Such as- Bajaj Allianz tied up with Maruti Udyog and Ford
for auto insurance and Tata AIG life has tied up with Tata tea,
Khaitan’s Williamson major and bridge foundation for selling rural
policies.

• Internet: In this technological world Internet is also a channel of

selling insurance. This can be as direct marketing.

48
EFFECTIVE MARKETING STRATEGIES FOR
INSURANCE PRODUCTS
Now the Indian consumer is knowledgeable and sensitive. Consumers are
increasingly more aware and are actively managing their financial affairs.
People are increasingly looking not just at products, but also at integrated
financial solutions that can offer stability of returns along with total
protection. In view of this, the insurance managers need to understand more
about the details that go into the introduction of insurance products to make
it attractive in this competitive market. So now days an insurance manager
requires leadership, commitment, creativity, and flexibility. "Every family in
every village in the country should feel safe and secure". This vision alone
will help to bring the new ideas to the insurance manager.

Financial, marketing and human resource polices of the corporations

influence the unit mangers to make decisions. Performance of insurance
company depends on the effectiveness of such policies. Insurance
corporations formulate and revise these policies from time to time to ensure
that the performance of the managers is best for the organization.

In the competitive market, insurance companies are being forced to adopt a

strictly professional approach in marketing. The insurance companies face
the challenge of changing the uninspiring public image of the industry.

49
Some of the important marketing elements are-

• Marketing mix.
 • The importance of relationship.
• Positioning.
• Value addition.
• Segmentation.
• Branding.
• Insuring service quality.
• Effective pricing.
• Customer satisfaction research.

The growth of insurance sector is governed largely by factors external to it.

The following factors influence the market and demand of product-

• Government policies.
• Growth in population.
• Changing age profile.
• Income wise distribution of the population.
• Level of insurance awareness.
• The pricing of the policies.
• The economic climate of the country.
• The aversion to risk.
• Social and political features of the country.
• Growth scenario in the world.
50
Different companies adopt different approaches in their marketing strategies.
One approach is focus upon product quality, which can give confidence in
the mind of customers that they are offered by best-featured products. And
other approach is focusing on customer’s needs, which involve a heavy
investment in developing relationships with policyholders. Under this
approach customer can expect a range of products and service offered to
him. Third approach is market segmentation under which the population can
be divided into several homogeneous products and groups, the effort should
be tie clients to the company by customized combination of coverage, easy
payment plans, risk management advice, and convenient and quick claim
handling.

51
An insurance product can be classified into three
phases:

1. Core product: In insurance industry the core product is the policy

that provides protection to the customers.

2. Expected product: Because of competition customers start to expect

more from an insurance product. Then insurance companies provide

some tangible attributes in their product to differentiate from
competitors, such as-

• Brand
• Some additional features in existing product
• By providing instruction manual with the policy

3. Augmented product: An insurance company can provide different

types of services to differentiate their products-

• Post-sales services.
• Branches in different places for customers.
• Customer complaint management.
• Payment option convenient to customers.

52
The entry of private players and their foreign partners has given domestic
players a tough time, because the opening up of the sector has not brought in
only foreign players, but also professional techniques and technologies. The
present scene in India is such that everyone is trying to put in the best
efforts. There are marketing strategies more for survival than growth. But
the most important gift of privatization is the introduction of customer-
oriented services. Utmost care is being taken to maximize customer
satisfaction.

Success of an insurance company depends on four

important functions:
• Identification of markets: Identification of markets means need to
understand the trends in culture and businesses constantly, through
conducting research and analysis. Insurance companies can take this
job on their own or assign it to an external agency. Relying on an
external agency can be risky due to the questionable loyalty of the
agents.

• Assessment of risks and estimation of losses: Efficiency of actuaries

and assessors of the insurance policies in fixing premiums and settling
claims is foremost an important area for achieving overall efficiency
in operations. The quality of assessing the risk and estimation of
losses has the largest claim on the performance of an insurance
company. Well-trained, experienced and expert hands are needed for
the operations.
53
 • Penetration into and exploitation of markets: Market penetration or
exploitation of a company can be identified with the growth in
number of policies in each type of insurance, growth rate in earnings
or turnover, company’s market share, increase in number of branches
and divisions etc. Efforts of the company as a whole and that of the
divisions and branches are assessed to measure the effectiveness.

• Control over investment and operating costs: Control over

resources such as men, machines, and materials at each level of the
organization provide measures of efficiency of a unit as well as the
organization. Investment control and expense control are dealt
separately and the effectiveness of management’s’ decisions at
various levels is to be assessed separately.

To find best prospects:

• Allocating marketing strategies against market potential.

• Estimating potential for specific products within local markets.
• Identifying high opportunity areas.
• Measuring agency performance relative to market potential.
• Optimizing your agency network against market potential.

54
Attributes to develop marketing strategies:

• Channel data: - Useful to know future buying preferences, learning

about products and purchase channels.

• Consumer attitudes.

• Consumption data: - Useful to evaluate annual premiums, number of

annuities owned, value of annuities, and with which company the
current policy is held.

Effective Strategies for Insurance Agents:

• Learn how to construct a mental image for success.

• Learn how to find a proper perspective and how to turn off all the
signals that cause people not to buy from you.
• Learn how to get and set more appointments.
• Learn how to convert a new lead into sales.
• Learn how to act when you meet a client for the first time.
• Learn how the orders in which you explain the types of policies can
double your income.
• Take Easy steps to avoid delays in issuing policies.

55
CHAPTER III

SWOT ANALYSIS
STRENGTHS:
• Since the tribe of life insurers has grown from 12 to 16, but SBI still
leads the private sector pack. SBI life is the Ranks among Global Top
Three at Million Dollar Round Table.

• Their strategy has been to grow the portfolio large enough so that
there is an in-built hedge and in a market where the portfolio has a
larger element of savings rather than protection, this works well. And
to make sure they can grow the business, they have built a distribution
network.

• Product innovation is a focus area for them. To stay relevant to the

consumer they work hard for innovating and developing new
products.

• The insurer is fortunate to have the strength of the SBI Bank brand
behind it; that went a long way in instilling confidence in customers
that the brand was trustworthy — a very important attribute in
insurance — and would be there for the long-term.

• Even today after it has rolled out so many campaigns, SBI remains
among the most trusted brand.

• SBI Life is fundamentally strong and the prospect of meeting its

policyholder's obligations as highest.
56
WEAKNESSES:

• Minimum premium for single term is 40000 which is very high.

• We don’t have any plan for senior citizens.

• Customer cannot withdraw amount before 3years this is the main

reason people believe in mutual funds for short-term investment.

• Allocation charges are very high.

• Product awareness.

• Very less branches.

• Less awareness about SBI Life insurance in rural areas.

• SBI life is still don’t have reach in rural place. LIC of India does
maximum business from rural areas.

57
OPPORTUNITIES:

• Market is booming. Insurance companies are fast emerging as one of

the most prominent players in the govt. securities market.

• Lack of awareness about insurance is one of major opportunity for

SBI Life Insurance. It can create market for itself by making masses
aware about insurance and its need.

• Policies of govt. of India are favorable for the growth of the company.

THREATS:
• Capital requirement for setting up a life insurance company is very
high. The intensity of rivalry among private players is very high.

• Increased competition in the insurance sector.

• The insurance sector remains a very competitive market and those

companies that are able to best utilize their data and provide their
customer with the nearly all personalized options will have the distinct
competitive advantage. The insurers that come up to the top will be
those who leverage the appropriate.

• Indian people still not believe in private insurance companies so

generate new business is very difficult for new insurance Company.
58
 Chapter IV

Research Methodology
MEANING OF RESEARCH

Research is a matter of gathering information from varying sources usually

in relation to a specific topic and for a specific purpose.
The definition of research includes any gathering of data, information and
facts for the advancement of knowledge.

MAIN OBJECTIVE OF THE STUDY

“Effective analysis of Consumer behavior towards Investment Plans &

Products of SBI Life Insurance, Kota”

RESEARCH DESIGN

A research design is the arrangement of condition for collection & analysis

of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. In fact the research design conceptual structure
with in research is conducted.

59
STEPS OF RESEARCH DESIGN

TYPE OF RESEARCH

The type of research that is used in this research is descriptive research. It is

a research where specific predictions are made; the percentage of units in a
specified population exhibiting a certain behavior is measured. The
characteristics of relevant groups is described the degree to which market
variables are associated is determined and to determine the perception of
product characteristics.

60
COLLECTION OF DATA

Data constitutes the subject matter of analysis. One cannot draw inferences
without analyzing data. The relevance, adequacy and reliability of data
determine the quality of the study. Data is primarily of two kinds -
1. Primary data

2. Secondary data

Primary data
The primary data are data, which are being collected by the researcher for
the specific purpose of answering the problem on hand. Individual
respondents, doctors, lecturers, jewelers, saloons were personally visited and
interviewed. They were the main source of Primary data. The method of
collection of primary data was direct personal interview through a structured
questionnaire.

Secondary data
Literature study and the articles are obtaining secondary data from the
Internet. The secondary data was collected on the basis of organizational
file, official records, news papers, magazines, management books, preserved
information in the company’s database and website of the company.

61
SAMPLING PROCEDURE

• Procedure by which some members of a population are selected as

representative of the entire population

• The sub-group thus selected to represent the whole population is

known as SAMPLE

Sampling methods

Probability sampling Non-probability sampling

1. Simple random method
2. Systematic sampling
3. Stratified sampling
4. Cluster sampling
5. Multi-stage sampling
1. Accidental sampling
2. Voluntary sampling
3. Purposive sampling
4. Quota sampling
5. Convenience sampling

Convenience sampling

It is used in exploratory research where the researcher is interested in

getting an inexpensive approximation of the truth. As the name implies,
the sample is selected because they are convenient. This non-probability
method is often used during preliminary research efforts to get a gross
estimate of the results, without incurring the cost or time required to
select a random sample.
62
SAMPLE DESIGN

A procedure or plan drawn up before any data is collected to obtain a

sample from a given population. It is also known as sampling plan or
survey design.

RESEARCH METHODOLOGY

Research is a diligent and systematic inquiry or investigation into a subject

in order to discover or revise facts, theories, applications, etc.
Methodology is the system of methods followed by particular discipline.
Thus research methodology is the way on we conducts our research.

Universe - Kota

Unit - SBI Life Insurance Co.

Sample size - 30

Data source - Survey

Method - Convenience Sampling

Instrument - Questionnaire

63
OBJECTIVES

• Proper understanding and analysis of life insurance industry.

• To know about brand awareness of SBI Life Insurance and customer’s

preference about SBI Life Insurance.

• Conduct market survey on a sample selected from the entire

population and derive opinion on that research.

• To offer suggestions based upon findings.

64
 CHAPTER IV

DATA ANALYSIS
AND
INTERPRETATION
Q1. Are you aware about SBI Life Insurance?

• 75% people aware about SBI Life Insurance.

• 25% people not aware about SBI Life Insurance.

65
Q2. Do you have any account in SBI Bank?

• 30% people have account in SBI Bank.

• 70% people don’t have account in SBI Bank.

66
Q3(A). Do you have any investment plans of SBI Life Insurance?

• 37% people have investment plans of SBI Life Insurance like Unit
Plus III,Smart ULIP, Pension Plan and Child Plan.

• 63% people not have investment plans of SBI Life Insurance.

67
Q 3(B). Are you satisfied with the plans of SBI Life?

• 83% people are satisfied with the plans of SBI Life due to Effective
services, Guarantee, good brand image,nice features,attractive
plans,etc.

• 17% people are not satisfied with the plans of SBI Life due to block
of money.

68
4. Have you invested in any other life insurance company other than
SBI Life?

• 80% people have already invested in other Life Insurance company

like LIC, ICICI, Reliance Life Insurance, Bajaj Life Insurance and
Birla Life Insurance.

• 20% people not invested in any other Life insurance company.

69
5. Do you want to take any investment plan of SBI Life if you find it
better?

• 87% people want to take investment plan of SBI Life when they find
it better.

• 13% people don’t want to take investment plan of SBI Life even
when they find it better.

70
6. What do you think are the benefits of Life Insurance?

• 17% People thought that Covers future uncertainty is the benefit of

Life Insurance.

• 13% People thought Tax Saving as benefit of Life Insurance.

• 3% People thought Investment as benefit of Life Insurance.

• 67% People thought all the above as benefit of Life Insurance.

71
7. Which feature of Life Insurance policy will you consider while
buying?

• 0% people judge investment plans with premium.

• 7% people judge investment plans with Guarantee.

• 7% people judge investment plans with Returns.

• 3% people judge investment plans with Brand Image.

• 33% people judge investment plans with above all features.

72
8. According to you, what is the right age to buy insurance?

• 10% People thought less than 25 years is the right age to buy
insurance.

• 50% People thought 25 – 35 years is the right age.

• 17% People thought 35- 45 years is the right age.

• 17% People thought > 45 years is the right age.

• 6% People thought one can buy insurance at Anytime.

73
CHAPTER VI

CONCLUSION
 CONCLUSIONS

During the data collected, it has been found that people have great awareness
about SBI Life Insurance.

People are beginning to look beyond LIC for their insurance needs and are
willing to trust private players with their hard earned money.

People in general have been influenced by the marketing activities of

insurance companies. A high penetration of print, radio and TV ad
campaigns over the years is beginning to have its impact now.

Another important trend was in terms of people viewing insurance as a tax

saving and investment instrument as much as protective one.

The general satisfaction levels among public with regards to policy and
agents still requires improvement. Here lies the opportunity for a relatively
new comer like SBI Life Insurance. LIC has never been known for prompt
service or customer oriented methods but SBI Life Insurance can build its
reputation based on these factors.

37% out of 75% people those who are aware about SBI Life Insurance have
investment plans of it.

74
25% people not aware about SBI Life Insurance, hence they invested in
other Life Insurance Company.

83% out of 37% people those who have SBI Life Insurance investment plans
are very satisfied with these plans because of good services, returns,
guarantee, brand image, premium, nice features, attractive plans etc.

70% of the people those who don’t have account in SBI Bank think that they
can’t take investment plans of SBI Life Isurance.

67% People thought that Covers future uncertainty, tax saving and
investment are some of the benefits of Life Insurance

People are interested in those plans that give maximum profit in short term.

75
CHAPTER VII

SUGGESTIONS
 SUGGESTIONS & RECOMMENDATIONS

• Marketing in terms of the media via advertisements on Television to

small commercials on FM, hoardings and signage etc. has to be made
because there were respondents who haven’t even heard about SBI
Life Insurance.
• Awareness camp for sub-urban area should be focused.
• State and Central Government employees should be targeted because
of reasons like:
 They don’t have Life Insurance cover other than that provided
by their respective employers and LIC.
 Most of them are underinsured.
 They have a stable source of income and social security.
• SBI Life Insurance must build its reputation by focusing on service
quality. Better service quality. Better service quality may be in the
form:
 Issuing policy in time.
 Providing claims in time.
 Making customers aware about their status of policy.
• SBI Life Insurance must introduce such kind of policies which will
give maximum profits in short term period.
 76

Appendices
 QUESTIONNAIRE

“To find out the perception of the persons about SBI

Life Insurance”

Dear Respondent

We the student of cerebral business school, are conducting an analysis on SBI Life
Insurance plans and products. We were highly appreciated and also will be thankful if
you could help us by providing your valuable remarks on following questions.
We assure you of confidentiality of the input you provide to us.

Name of Respondent: __________________________________________

Age: _________________________________________________________

Address: _____________________________________________________

Contact No.: __________________________________________________

Q 1. Are you aware about SBI Life Insurance?

Yes □ No □
Q 2. Do you have any account in SBI Bank?

Yes □ No □
Q 3(A). Do you have any investment plans of SBI Life Insurance?

Yes □ No □
If yes then mention the plan name:

_________________________________________________________________
_

Q 3(B). Are you satisfied with the plans of SBI Life?

Yes □ No □
If yes then why?

_________________________________________________________________

Q 4. Have you invested in any other life insurance company other than SBI Life?

Yes □ No □
If yes then mention the company name:

_________________________________________________________________
_

Q 5. Do you want to take any investment plan of SBI Life if you find it
Better?
 Yes □ No □
Q 6. What do you think are the benefits of Life Insurance?

Covers future uncertainty □

Tax Savings □
Investments □
All □

Q 7. Which feature of Life Insurance policy will you consider while buying?

Premium □ Guarantee □
Returns □ Brand Name □
All □
Q 8. According to you, what is the right age to buy insurance?

< 25 years □ 25 – 35 years □

35- 45 years □ > 45 years □
Anytime □

Q 9. Feedback & Suggestions for SBI Life?

__________________________________________________________________

__________________________________________________________________

BIBLOGRAPHY
 BIBLOGRAPHY

BOOKS
Kothari C.R
Research methodology Methods and Techniques Sixteen edition Vishwa
Prakashhan

Balachandran .S
Life Insurance (New Syllabus) IC-33, 1st edition - 2007

M.J. Mathew
Insurance (Principles & Practices) 2nd revised edition - 2009

JOURNALS
SBI Advisor Kit
Brochures
Annual Report
Hindu Business Line

WEBSITES
www.sbilifeinsurance.com
www.sbibank.com
www.google.co.in
www.irda.org
www.avivaindia.com