Monday, February 6, 2012

Channel Development Profile as Sales Promotion Advisor


                                                               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

          www.irda.org.in

                                                                                                      57


                                                                                                     


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