A
Project Report
On
Channel Development
Profile as Sales Promotion Advisor
By
Gajanand Sharma
B.B.A. Final Year-2009-10
Biff & Bright College of Technical
Education
18 Ved Vatika, New Sanganer Road, Sodala
Jaipur(Rajasthan)
Under the Guidance of
Dr. Anukrati Sharma
Channel Development
Profile
as
Sales Promotion Advisor
(Project report
submitted in the partial fulfillment of one paper of B.B.A. final year-2009-10)
The project work is to
join Bajaj Allianz Life Insurance Company and get training of sales promotion advisor.
The job of an advisor is to promote sales and find the prospective of business.
The duration of this project work is six week dated from 01/06/2009 to
15/07/2009.
Project
Supervisor
Dr. ANUKRATI SHARMA
By
Gajanand Sharma
Preface
The project provides environment for us to explore. This report is the outcome of 6 weeks working with lot of enthusiasm and hard working.
I was given golden opportunity to work
with Bajaj Allianz Life Insurance, which is dedicated to its objectives. I have
gained knowledge about a lot of things during my training like marketing strategies,
investment patterns, customer perceptions, client relationship management,
information systems and many other aspects to the organization.
The first few pages of the report talk
about an introduction to the insurance industry & the need for specialists
& about company profile of BALIC. The vision and the product offered are
also started herein.
Hereafter
the report talks about the project that is channel development profile as sale
promotion advisor. Here we talk about the process of recruiting an advisor
followed by principles of recruiting. The last pages constitute of the findings
of project and the conclusion.
Acknowledgement
In preparing this report, I have received
help and guidance from several sources. I feel indebted to all those
personalities who helped me to complete my project.
My sincere thanks to Branch Manager of
Bajaj Allianz Life Insurance Co. Mr. Mahesh Saini who considered my candidature
for summer project and provided me an opportunity to work with BALIC.
I also want to thank to
project supervisor
Dr. Anukrati Sharma and all my teachers who introduced me to various concepts
of management and provided me confidence of entering the corporate world. My
gratitude’s to all my friends and my family for their love and support.
Gajanand
Sharma
Declaration
I hereby declare that this project report
entitled “Channel development recruit best profile as an advisor in Dausa City”
is written and submitted by me to partial fulfillment of the requirement for
pursuing a BBA. This report is my original work and the conclusion drawn
therein is based on the material collected by me. My work carried out under the
guidance of my faculty guide Dr. Anukrati Sharma and my company guide Mr.
Mahesh Saini.
I consciously declare that, this project report neither full
nor in past has ever been submitted for award of any other degree of either
this university or any other university.
Date:
13-10-2009
Place:
Jaipur
Project
Supervisor
Gajanand
Sharma Dr. Anukrati Sharma
Index
1. Introduction.......................... 1
Ø Executive Summary…………………………….2
Ø Objectives of Study………………………….4
Ø Company Profile…………………………………..5
Ø Vision and Value………………………………..6
2. Major Players in Insurance Sector ……….7
3. Channel development Profile as Sales promotion
Advisor………………………….8
4. Channel Development Principles of
BALIC……………………………………….12
5. The Process of Recruiting an Advisor……..15
6. Qualities to be an Advisor………………….18
7. Support Provided to the Advisor
by BALIC…………………………………....21
8. Benefits for High Performers………………24
9. Steps in Becoming BALIC Advisor………..25
10.
Documents
Required……………………...28
11.
Research
Methodology……………………29
12.
Research Design…………………………...33
13.
SWOT Analysis
…………………………...35
14.
Finding and
Interpretation……………….37
Ø Conclusion………………………………....38
Ø Recommendation………………………….40
15.
Appendix………………………………….41
Ø Company Product portfolio……………….42
Ø Bibliography………………………………………….57
Ø Websites……………………………………………….57
Introduction
1
Executive Summary
The service industry is one of the fastest
growing sectors in India today. The upcoming sectors which are really showings
the graph towards upwards are- Telecom, Banking and Insurance. These sectors
really have a lot of responsibility towards the economy.
Amongst the above mentioned areas
insurance is one sector, which took a lot of time in positioning itself. The
insurance of non life companies was not much in problems but the major problem
was with life insurance. Life Insurance Corporation of India had monopoly for
more than 45 years, but the picture then was completely different. Previously
people felt that” Insurance is only for classes not for masses” but now the
picture is vice-versa.
More than three decades
after nationalization, insurance policies were being purchased to save taxes.
Life insurance was evaluated on purely monetary terms; the extreme protection
value was completely ignored. The entry of private players has changed the life
insurance scenario completely.
2
Customers now have access to innovations,
increased knowledge to the need of insurance, service, level at par with the best
in the retail financial services industry & most importantly to need based
solutions & products.
For the job seekers, it means increased opportunities &
the challenge of approaching the insurance business with completely different
mindset because private players “reposition the category by changing the way
insurance is perceived, transacted & serviced”.
One doesn’t to be a whiz to join the mushrooming private
sector insurance companies. You have got to be a self-started with an urge to
learn new things & the drive to sell new idea. An insurance advisor in
someone who can provide build funds for their future needs. There by helping
them on their way to financial freedom. He could work at his own pace &
pattern, exploit his skills & efforts to achieve unlimited growth in
addition to achieving self-satisfaction that’s pretty hard to find nowadays
3
Objectives of study
1.
To find out the awareness level of investors towards Bajaj Allianz
life insurance.
2.
To find out the fear that came in the minds of investors while
investing in Bajaj Allianz.
3.
Analyze the factors that influence the investment decision.
4.
Proper understanding and analysis of Life Insurance Company.
5.
To
find out the investment needs of customer.
6. To find out the
best option for different investors according to their different investment
needs.
7. Conduct market
survey on a sample selected from the entire population and derived opinion that
research.
8. According the
market survey come know about how much potential of insurance market in our
city.
9. The objective
behind the project is as follows:
· To find the right
candidate.
· To about their
family background, occupation, social relation, qualification, age.
· Finalize candidates
for the IRDA training.
4
Company Profile
Bajaj Allianz Life Insurance Company Limited
is a union between Allianz SE, one of the world’s largest insurance company and
Bajaj Finserv. BALIC combines the strength and integrity of the Bajaj group
with Allianz international expertise and financial strength. The Bajaj Group
holds 74 percent stake in the two insurance ventures while Allianz holds the
balance 26 percent stake.
BALIC provides insurance solutions to individuals and
corporate. It offers a broad array of life insurance coverage to both
individuals and groups.
At Bajaj Allianz Life
Insurance, customer delight is our guiding principle. Our business philosophy
is to ensure excellent insurance and investment solutions by offering
customized product, supported by the best technology.
5
Vision & Value
To be the best insurance co. in India to
buy from, work for & invest in.
They hope to achieve this by:-
·
Understanding the needs of customers and
offering them superior products and service.
·
Leveraging technology to device
customers quickly, efficiently and conveniently.
·
Developing and implementing superior
risk management and investment strategies to offer sustainable and stable
returns to their policy holders.
·
Providing an enabling environment to
foster growth and learning for their employees.
·
And above all, building transparency in
all their dealings.
The success of the company is due to its
unflinching
Commitment
to 5 core values-
·
Integrity
·
Customer
first
·
Boundary
less
·
Ownership
·
Passion
6
Major
Players in
Life Insurance Sector
·
Life
Insurance Corporation (LIC)
·
Postal
Life Insurance
·
Bajaj
Allianz Life Insurance
·
ICICI
Prudential Life Insurance
·
HDFC
Standard Life Insurance
·
Birla
Sun Life Insurance
·
ING
Vysya Life Insurance
·
Max
New York Life Insurance
·
Met
Life India Insurance
·
Kotak
Mahindra Old Mutual Life Insurance
·
Reliance
life insurance
·
Aviva
Life Insurance
·
SBI
Life Insurance
·
Sahara
India Life Insurance
7
Channel
Development
Profile
as
Sales
Promotion
Advisor
8
Channel
Development:
- Recruit
best profiles as an advisor to spread insurance business.
Why Advisor: Reason behind the
Success:-
Being in BALIC can be
one of the most rewarding careers one will find. It is also hard because as an
advisor you contribute in the beginning to new business for the company, offer
world-classes pre and post sales service to the clients with the support of the
organization. An advisor means much more than a salesman of sales women, BALIC
recognized its advisors the advisor force will be their biggest differentiating
factor in the coming years. That is why; they take a lot of care in recruiting
& developing their advisor force so that they can maintain their standards
of quality in services & salesmanship.
9
The competition and the customer awareness
have forced the times to be a knowledge oriented market place. Appreciating the
same, BALIC strives to get people with a reasonably good graduation background
as their advisors. They also acknowledge & recognize prior sales experience
of the person at the time of recruitment. At BALIC, your hard work pays off in
the form of compensation & recognition. At BALIC, guides provide
scientific, methodical & world class training in all aspects of insurance
sales product information as well as selling skills programs.
After the initial 100 hours of pre-licensing training there is regular &
structured training at all levels across the sales force.
The success that BALIC celebrates with pride in the organization &
the culture that grooms as we as it demands. It is a
culture that:
· Gives
you room to achieve, to grow & to seek new opportunities.
· Believes
opportunities will come from client needs. All that is needed to do is be alert
as people first & professionals later. One good man says the people make
the company. The company is the people all we are delivering is a piece of
paper & promise. It is the people who have to believe in it deeply.
10
· Seeks
to be most innovative the most tenacious in opening new markets & the most
creative in developing new products & offering state of the art services to
clients, brokers & agents around the world.
· In
the new millennium, takes on e-commerce & technology as high priority, with
intensified resources devoted to the new economy & internet-based
technology.
If you are looking for a profession that allows you
to value your independence term
to BALIC. Being an advisor allows you to stay independent, financially as well
as in terms of working hours it gives a minor opportunity to positively change people’s lives by ensuring that they secure their own
as well as their family’s future.
11
Channel
Development Principles of BALIC
· Recruit
the best.
· Accept
personal responsibility for their people.
· Build
an empowered team.
· Reward
& recognize performance.
· Building
a shared vision and purpose.
Recruit the Best
Adept
at spotting talent & development BALIC recruit people who have the
intellect, drive & energy to make thing happen. BALIC treats people like
winners & believes in custom hiring essentially to ensure that the right
role having relevant domain expertise & competencies.
12
Accept Personal Responsibility for
Their People
They
provide significant learning & development conduits to enhance their domain
expertise & leadership capabilities. To retain high potential, they offer a
challenging and fast paced work environment with accelerated career prospects.
Build
an Empowered Team
They strive to create an organization
where in each employee is a stakeholder in building & defining the success
of the organization & has the opportunity & flexibility to define their
canvas of roles & responsibilities. They never stop communicating with
their people & continue to seek feedback on & encourage participation
in critical business & people areas.
13
Reward & Recognize
Performance
To build a
merit-based environment, they have implemented a robust competency based
performance management process wherein they recognize significant contributions
made by employee in an objective & transparent manner & on demonstrated
competence levels. Further they also recognized people who walk that extra mile
in living the BALIC values.
Building a Shared Vision
& Purpose
They continuously endeavor to align
their divers’ workforce to a shared purpose & vision, thereby creating a
common organization culture & fabric. This is primarily done through
large-scale interactive process at the organization and group, which primarily
focuses on securing employee buy-in-on all crucial interventions.
14
The Process of
Recruiting an
Advisor
· Prospecting
· Suspecting
· Sales Pitch
15
Prospecting
It
includes identifying people who will be willing to & interested in becoming
insurance advisors with BALIC random sampling or market visit, tale calling,
existing databases of references do this. These people can be anybody ranging
from an unemployed seeking an opportunity or anyone who is already working but
desires to have an extra source of income of someone who has extra time &
wants to purse it as a part time & earning along with it.
Anybody, a housewife, a businessman, a professional or a
student can take up this opportunity.
Suspecting
This
consists of judging such people whether they would be fit for being an
insurance advisor with respect to their qualifications, skills, confidence,
etc. after doing so the next step is fixing appointments with them to give all
the information & completing the formalities.
16
Sales Pitch
This involves
the career opportunity programmer that gives the prospective advisor all the
information about the company`s background & history, the job profile,
payments, the skills required, the training requirements & options, the
formalities to be completed & any other information they wish to know.
17
Qualities
to be
an Advisor
· Personal Integrity
· A Clear Liability and Responsibility to Lead
· A Strong Drive to Achieve and Excel
· The Ability to work with others
· The Ability to Communicate Effectively
18
Qualities that BALIC
Desires
in its Insurance Advisor
The successful associates at BALIC comes
from a diver’s spectrum of discipline and academic backgrounds. Although they
are different however, they have certain qualities in common. These are the
qualities BALIC is looking for in its advisors.
Personal Integrity
We seek people with strong principles of
honesty & integrity. They must be able to live up to the BALIC tradition of
fairness & honorable dealings with its people, customers & the
suppliers.
A Clear Liability and Responsibility
to Lead
BALIC
needs & wants people who can direct & motivate other & influence
their way of thinking. They must show their empathy & sensitivity in
helping other & develop their abilities & skills.
19
A Strong Drive to
Achieve and Excel
BALIC
wants people who se demanding long term personal goals & consistently
achieve them. They must be persistent in overcoming obstacles & getting the
best results in a competitive environment.
The Ability to Work
with others
BALIC wants people who
can establish effective relationships with different types of people can excite
& spur them to action.
The Ability to
Communicate Effectively
BALIC wants people who
can organize & express their thoughts clearly concisely & confidently
& are to sell their ideas persuasively while at the same time remaining
receptive to others.
20
Support
Provided to an
Advisors by
BALIC
·
Enriching
Training Program
·
Monitoring
·
Flexibility
·
Satisfaction
·
Freedom
·
Earnings
·
Attractive
Additional Benefits for High Performers
21
Enriching
Training Program
As
intensive training program before you commence your new career. This would
equip you with all the information & knowledge about life insurance, its
benefits & the products. This would help you perform your job better &
meet your goals. You would also enjoy the benefits of continuous training &
mentoring that are designed to update your, part from enhancing your selling
skills.
Monitoring
Company
provides training and support to meet your goals. You also get an opportunity
to learn from industry experts.
Flexibility
You are free to
decide your own working hours & earning goals. It’s only your imagination
that can act as a limiting factor.
22
Satisfaction
You will help people manage their assets
& plan their financial security, & experience deep satisfaction from
making a positive difference in others lives. You act as strategist in
annuities, business insurance, estate planning & personal investment,
providing both term & long term solutions to financial risk.
Freedom
You are entitled to a percentage of
premiums as commission till the lifetime of the policies sold by you as you as
well as bonus commissions.
23
Attractive
Additional Benefits
for High Performers
Apart from earnings, you are also
awarded for your high performance. Which might include palmtops, leather
portfolio bags, offsite conferences, foreign trips & sales promotion
schemes & much more?
An
advisor entitled to a fixed percentage of premiums which may vary through
different categories. It is generally 25% of the total premium earns in first
year 7.5% of renewal premium in the second and third year. You can even get
bonus commission of up to 40% of the actual commission.
24
Steps Involved in Becoming an Advisor
·
Appear
for an Interview
·
Fill-up
the Insurance Advisor Form
·
Go
Through 100 hours Mandatory Training
·
Appearing
for a Passing the Licensing Examination
25
Steps
Involved in
Becoming an Advisor
The
goal of selection process is to produce a through, objective, total assessment
of each candidates of each candidates abilities in key areas important for
success at BALIC each applicant is evaluated using these defined criteria &
give equal opportunities to show his capabilities.
1. Appear for an Interview: Once
a person has made up his mind about becoming an insurance advisor, the next
step is to appear for an interview that assesses the person whether he would be
fit for this responsibility.
2. Fill-up the Insurance Advisor form: Once
selected, the candidate is required to fill up the insurance advisor form along
with a demand draft of Rs.1000 & other necessary documents.
26
3. Go Through 100 hours Mandatory
Training: Once the form is filled & all the compulsory
documents, the candidate is required to undergo a 100 hour training which is
made mandatory by IRDA. The candidate has an option of full time training &
online training. The training enables the candidate to learn all legal &
crucial matter & conditions as well as communication & selling skills
also the products offered.
4. Appearing for a Passing the
Licensing
Examination: The next step
is to appear for the IRDA licensing examination. It is a 100 marks exam &
the candidate is required to obtain at least 50 marks to obtain. The
examination can be on paper on online depending upon the candidates’ choice.
After all these steps are completed, the
candidate is ready to become a part of the BALIC family. The members in the
family are self-driven & passionate about what they are building. They
celebrate hard on their success & face adversity with maturity & patience.
27
Documents Required
1. A demand draft of Rs.1000 in favor
of BALIC payable at Mumbai. This amount is non refundable.
2. 7 passport size color photographs.
3. Acceptable education profile.
4. Acceptable age proof.
5. Acceptable address proof.
All
the above documents should accompany the application & forms. All of these
documents should be self-attested.
So
we summarize the steps and formalities involved in the whole process. The
formalities for a candidate the formalities for a candidate to become the
advisor as per the IRDA are filling-up the insurance advisor form.
28
Research Methodology
29
Research
Methodology
It deals with most efficient plan for
gathering the needed information. The plan calls for the decision on data
source research, instrument, sampling plan and contact method.
Objectives
of Research
1.
To find out the skilled person for
company.
2.
To know how many people are interested
to join BALIC.
3.
To know the awareness among the people
regarding the insurance policies of the company.
4.
To know what potential advisor want from
the company.
5.
The study can be justified for its
contribution in following means.
30
Objectives for Company
The company felt for this research
because management was interested to recognize the market position of their
product in market.
In similar way the company was interested to know how many
people are interested to join the company as a insurance advisor. The
researcher not only fulfilled the requirement of BBA curriculum but also learns
a lot about marketing research. Through this research the researcher got the
opportunity to implement the theoretical knowledge in the practical field.
·
The researcher also got a significant
insight into insurance sector.
·
The study also aquatinted the researcher
with many people in insurance service in Jaipur city, which would further help
the researcher in future life.
31
The research was conducted in the following
phases follow.
1.
In the initial stage the researcher went
through several papers and magazines to get knowledge about the industry and
company.
2.
He met with company`s officials and
discussed about the company`s functions. He got the views of his company about
the project.
3.
According to the requirements of the
research a synopsis was made and a pilot survey conducted to know whether the
project was feasible or not. The pilot survey guided the researcher to make a
few essential enhances in the final schedule to be used for the survey.
4.
After preparing the final schedule the
researcher started survey in the areas already specified by the company.
Primary data were collected through respondent’s interview with the help of
preset schedule.
5.
To approach the respondents a list of
specific existing customers were provided by the company.
6.
When all the data were collected, the
researcher exercised upon arranging the facts and findings. After the proper
arrangement of the data, analysis done.
On the basis of this
analysis the researchers conclude his findings and delivered suggestions for
the betterment of the company.
32
Research
Design
Type : Descriptive
Data : Data were collected both from primary and secondary sources.
Primary data were collected from respondents; secondary data was collected from
company as well as from various websites.
Contact method: The
respondents were contacted through structured interview with the help of
preset.
Sampling procedure: the
sampling procedure was convenience sampling as the list of existing customers
was provided by the company.
33
Data
Sources
Data was gathered through primary and
secondary data.
Primary
Data
It consists of
original information gathered for the specific purpose. This data is generally collected
by observation survey, of experimental method.
Secondary
Data
It consists of information that already exit somewhere,
having collected for another purpose, they offer advantage of low cost and
ready availability, with the help of secondary data collected from various
magazines, newspapers and industrial trade association. The actual sales of the
industries its growth rate and the share of different companies in the market
were found out.
34
SWOT
Analysis
35
Strength
BALIC
is right now the market leader in private insurer segment.
Weakness
The company right now has lesser number
of agents the LIC of India, which affects their sales in comparison to LIC of
India.
Opportunity
BALIC limited
can give LIC of India agents an opportunity to join BALIC, as BALIC has got
more incentive packages & servicing quality better than LIC of India. Doing
this they can reduce their cost of training and can exploit their experience.
Threat
Other big brand names like BIRLAS, ICICI
PRUDENTIAL, HDFC, SBI, AND AVIVA etc.
36
Finding
and
Interpretation
37
Conclusion
1.
BALIC has great goodwill in market in
liberalized Indian market there are approximately 13 big companies in Indian
market and BALIC is the biggest insurance company. I found this fact in my
recent survey.
2.
There is lot of scope of life insurance
in India only 2.5% people are secure with life insurance so the insurance
sector is its booming stage this boom will more increase in 2 or 3 years.
3.
Good profile insurance advisor could do
the better fob. BALIC mentions the level of advisor then they may give great
sales to the company.
4.
BALIC has tough competition with LIC as
well as ICICI prudential, Birla Sun life Insurance, SAHARA, ING VYSVA, OM KOTAK
MAHINDRA, HDFC INSURANCE AND SBI LIFE.
5.
If the company starts to concentrate on
village segment market. The company can get great business.
6.
BALIC has interested and profitable
planes for different age group.
38
7.
I got the good profile people nearby
bank and share market. When I concentrated on the 20-25 year age group people I
found good result.
8.
Within 40-45 year group the sincerity
level is high. They are career oriented and want to earn more.
9.
In 20-25 age group people made interest
to purchase the kids plan and pension plan.
10.
In the age group of 30-35 year the
people who earning more than 3 lake p.a. made interest to purchase maha life
gold.
11.
I found that in insurance sector a
person should have great communication and convenience skill.
12.
People made interest in the business opportunity
of BALIC because there are lots of chances to increase earnings and make high
place in the company.
13.
In my survey I found that low percentage
of people is aware with the life insurance.
14.
It was great experience to communicate
with different people. I learnt through cross-question by peoples.
39
RECOMMENDATION
After going through the data available regarding market share of
various companies in the financial year2003-2004, there is no reason why BALIC
should rejoice of being the number one company in the country. The growth that
companies like BIRLA SUNLIFE, SBI LIFE INSURANCE, ICICI PRUDENTIAL, OM KOTAK
MAHINDRA, AVIVA, ING VYSYA, METLIFE & AMP SANMAR have produced that can be
quite a big unseen threat for the company in the coming years. So the company
should start thinking of what they want from the market & where they want
to see themselves after a span of 10 years because if the popularity of these
companies continues then one day they will become good competitors of BALIC
then the consequences can be quite disturbing for the company
40
Appendix
41
Company
Product
Portfolio
42
Bibliography
·
Philip Kotler : Marketing management
(analysis planning and control), prentice hall of India pvt.ltd.
·
Dholadia : Marketing management cases
and concept, Macmillan, New Delhi.
·
Goode, W.J. and Paul Hutt: Method in
social research, McGraw Hill Book Co. Auckland.
·
Consumer voice (weekly insurance News
Paper)
WEB-SITES
57
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