A

Project Report

On
CUSTOMER-BUYING BEHAVIOR WITH A
FOCUS ON MARKET SEGMENTATION

of

HDFC Standard Life Insurance Company

 STUDENT DECLARATION

I declare that the project entitled “CUSTOMER-BUYING BEHAVIOR WITH A

FOCUS ON MARKET SEGMENTATION ” Is an original done by me and no

part of the project is taken from any other project or material published or
otherwise or submitted earlier to any other college or university
 ACKNOWLEDGMENT

The completion of Summer training report entitled ‘Customer-buying

behaviour with a focus on market segmentation’ give me an opportunity
to convey my gratitude’s to all those who have helped me to complete this
research work successfully and well within time.

Firstly I would like to thanks Mr. SANJEEV SHARMA is the

BUSINESS DEVELOPMENT MANAGER of the HDFC Standard Life
Insurance Company Ltd. for giving me opportunity to work with this
organization.

I would like thanks Mr.NEERAJ SHARMA is the AREA SALES

MANAGER without whose support, this project would not have been
possible. Heartiest thanks for his constant support and motivation.

In the last I would like to thank all individuals known or unknown who have
helped me directly or indirectly during the research fellowship period.
 PREFACE

I, student of DELHI COLLEGE OF ADVANCED STUDIES affiliated to

GURU GOBIND INDRAPRASTHA UNIVERSITY pursuing BBA (B&I)
course. I have put my sincere efforts to accomplish my objectives within the
stipulated time.

Despite all the limitations, obstacles, hurdles and hindrances, I have toiled
and worked to my optimum potential to achieve the desire goal. Being in the
highly competitive world of business, I came across some difficulties to
make my objectives a reality. Anyhow, with the kind help and genuine
interest of one and all and formally supported by the guidance of my guide, I
am presenting this hand carved effort in colored. I tried my level best to
conduct a research to gain a thorough knowledge about the project in my
topic “CUSTOMER-BUYING BEHAVIOR WITH A FOCUS ON
MARKET SEGMENTATION ” I have put the best of my efforts and have
also tried to do justice with the available. If anywhere something is found
unacceptable or unnecessary to the theme, you are welcome with your
valuable suggestions.
 INTRODUCTION OF PROJECT

In 1818 the British established the first insurance company in India in

Calcutta, the Oriental Life Insurance Company. First attempts at regulation
of the industry were made with the introduction of the Indian Life Assurance
Companies Act in 1912. A number of amendments to this Act were made
until the Insurance Act was drawn up in 1938. Noteworthy features in the
Act were the power given to the Government to collect statistical
information about the insured and the high level of protection the Act gave
to the public through regulation and control. When the Act was changed in
1950, this meant far reaching changes in the industry. The extra
requirements included a statutory requirement of a certain level of equity
capital, a ceiling on share holdings in such companies to prevent dominant
control (to protect the public from any adversarial policies from one single
party), stricter control on investments and, generally, much tighter control.
In 1956, the market contained 154 Indian and 16 foreign life insurance
companies. Business was heavily concentrated in urban areas and targeted
the higher echelons of society. “Unethical practices adopted by some of the
players against the interests of the consumers” then led the Indian
government to nationalize the industry. In September 1956, nationalization
was completed, merging all these companies into the so-called Life
Insurance Corporation (LIC). It was felt that “nationalization has lent the
industry fairness, solidity, growth and reach.”
Some of the important milestones in the life insurance business in India
are:

1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life
insurance business.

1928: The Indian Insurance Companies Act enacted to enable the

government to collectstatistical information about both life and non-life
insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act

with the objective ofprotecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance
companies.

General Insurance:
The General Insurance industry in India dates back to the Industrial
Revolution and the
subsequent increase in trade across the oceans in the 17th century. As for
Life Insurance, the British brought General Insurance to India, and a similar
path was followed in the development of this industry. A number of private
companies were in existence for years and years until, in 1971, the Indian
Government decided that the public interest would be served by
nationalizing the industry, merging all the 107 companies into four
companies, depending on the sort of business transacted (Marine, Fire,
Miscellaneous). These were the National Insurance Company Ltd., the
Oriental Insurance Company Ltd., the New India Assurance Company Ltd.,
and the United India Insurance Company Ltd. located in Calcutta, New
Delhi, Bombay and Madras respectively. The General Insurance Corporation
(GIC) was set up in 1972 as a ‘holding’ company, having these four
companies as its subsidiaries.

Some of the important milestones in the general insurance business in

India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes ofgeneral insurance business.

1957: General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.

1968: The Insurance Act amended to regulate investments and set minimum
solvency marginsand the Tariff Advisory Committee set up.

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

nationalize the general insurance business in India with effect from 1st
January 1973. 107 insurers amalgamated and grouped into four company’s
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 incorporated as a company.

MAJOR PLAYERS IN THE INSURANCE INDUSTRY IN INDIA:

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September
1956 to spread the message of life insurance in the country and mobilize
people’s savings for nation-building Activities. LIC with its central office in
Mumbai and seven zonal offices at Mumbai, Calcutta, Delhi, Chennai,
Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 laky active agents
spread over the country.
The Corporation also transacts business abroad and has offices in Fiji,
Mauritius and United Kingdom. LIC is associated with joint ventures abroad
in the field of insurance, namely, Ken- India Assurance Company Limited,
Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur; and
Life Insurance Corporation (International), E.C. Bahrain. It has also entered
into an agreement with the Sun Life (UK) for marketing unit linked life
insurance and pension policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5

Billion while GIC recorded a net premium of $ 1.3 Billion. During the last
15 years, Laic’s income grew at a healthy average of 10 per cent as against
the industry's 6.7 per cent growth in the rest of Asia (3.4 per cent in Europe,
1.4 per cent in the US). LIC has even provided insurance cover to five
million people living below the poverty line, with 50 per cent subsidy in the
premium rates. Laic’s claims settlement ratio at 95 per cent and Gig’s
at 74 per cent are higher than that of global average of 40 per cent.
Compounded annual growth rate for Life insurance business has been 19.22
per cent per annum

General Insurance Corporation of India (GIC):

The general insurance industry in India was nationalized and a government
company known as General Insurance Corporation of India (GIC) was
formed by the Central Government in November 1972. With effect from 1
January 1973 the erstwhile 107 Indian and foreign insurers which were
operating in the country prior to nationalization, were grouped into four
operating companies, namely, (I) National Insurance Company Limited; (ii)
New India Assurance Company Limited; (iii) Oriental Insurance Company
Limited; and (iv) United India Insurance
 COMPANY PROFILE

ABOUT HDFC STANDARD LIFE INSURANCE:

HDFC Standard Life Insurance Company Ltd. is one of India's leading

private insurance companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Ltd.), India's leading housing finance
institution and a Group Company of the Standard Life, UK. HDFC as on
December 31, 2007 holds 72.38 per cent of equity in the joint venture.

HDFC STANDARD LIFE INSURANCE PARENTAGE:

HDFC Limited.
• HDFC is India leading housing finance institution and has helped
build more than 23, 00,000 houses since its incorporation in 1977.
• In Financial Year 2003-04 its assets under management crossed Rest.
36,000 Cr.
• As at March 31, 2004, outstanding deposits stood at Rest. 7,840 cores.
TheDepositor base now stands at around 1 million depositors.
• Rated AAA by CRISIL and ICRA for the 10th consecutive year
 Stable and experienced management
• High service standards
 • Awarded The Economic Times Corporate Citizen of the year Award
for its
long-standing commitment to community development.
• Presented the Dream Home award for the best housing finance
provider in 2004 at the third Annual Outlook Money Awards.

Standard Life Group (Standard Life plc and its subsidiaries):

• Standard Life Group (Standard Life plc and its subsidiaries)

• The Standard Life group has been looking after the financial needs of
customersfor over 180 years
• It currently has a customer base of around 7 million people who rely
on thecompany for their insurance, pension, investment, banking and
health-care needs
• Its investment manager currently administers £125 billion in assets
• It is a leading pensions provider in the UK, and is rated by Standard &
Poor's as
• Standard Life was awarded the 'Best Pension Provider' in 2004, 2005
and 2006 at the Money Marketing Awards, and it was voted a 5 star
life and pension’s provider at the Financial Adviser Service Awards
for the last 10 years running. The '5Star' accolade has also been
awarded to Standard Life Investments for the last10 years, and to
Standard Life Bank since its inception in 1998. Standard Life
Bank was awarded the 'Best Flexible Mortgage Lender' at the
Mortgage
 Magazine Awards in 2006

HDFC KEYS STRENGHS:

FINANCIAL EXPERTISE
As a joint venture of leading financial services groups, hdfc standard life has
the financial expertise required to manage your long-term investments safely
and efficiently. range of solutionswe have a range of individual and group
solutions, which can be easily customised to specific needs. our group
solutions have been designed to offer you complete flexibility combined
with a low charging structure. track record so far our gross premium income,
for the year ending march 31, 2008 stood at rs. 4,859 crores and new
business premium income stood at rs. 2,685 crores. the company has
covered over 9, 59,000 lives year ending march 31, 2008. corporate
objective

VISION
Providing long term financial security to our policy holders will be our
constant endeavour. We will be do this by offering life insurance and
pension products. We appreciate the trust placed by our policy holders in us.
Hence, we will aim to manage their investments very carefully and live up to
this true. Recognizing the different needs of our customers, we will be
offering a range of innovative products to meet these needs. Our mission is
to be the best new life insurance company in India and these are the values
that will guide us in this

MISSION
 We aim to be the top new life insurance company in the market. This

does not just mean being the largest or the most productive company

in the market, rather it is a combination of several things like-

• Customer service of the highest order

• Value for money for customers

• Professionalism in carrying out business

• Innovative products to cater to different needs of different

customers

• Use of technology to improve service standards

• Increasing market share

OBJECTIVE
• .Integrity

• .Innovation

• .Customer centric

• .People Care One for all and all for ones

• .Teamwork

• .Joy and Simplicity

ORGANIZATIONAL STRUCTURE
The insurance sector was opened up in the year 1999 facilitating the
entry of private players into the industry. With an annual growth rate
of 24.31 percent and the largest number of life insurance policies in
force, the potential of the Indian insurance industry is huge. The year
1999 saw a revolution in the Indian insurance sector, as major
structural changes took place with the ending of Government
monopoly and the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill, lifting entry restrictions for
private players and allowing foreign players to enter the market with
some limits on direct foreign ownership.

According to the CSO, the insurance and banking services’

contribution to the country’s GDP is 7.1 percent out of which the
gross premium collection forms a significant part. Life insurance
penetration in India was less than 1 percent till 1990-91. During the
‘90s, it was between 1 and 2 percent and from 2001 it was over 2
percent. In 2003-04 it was 2.4 percent.
The impetus for increase is due to the active role played by IRDA in
licensing private players and taking positive steps in increasing the
insurance awareness among the people. Besides, the insurance
companies in general and private insurance companies in particular,
are reaching out to untapped potential in rural areas with aggressive
campaigns.

Innovative products, smart marketing, and aggressive distribution

have enabled fledgling private insurance companies to sign up Indian
customers faster than anyone expected. Life insurance is viewed as a
tax saving device. People are now turning to the private sector for
providing them with new products and greater variety for their
choice. The improvement in FDI flows reflected the impact of recent
initiatives aimed at creating an enabling environment for FDI and for
encouraging infusion of new technologies and management
practices. The Government’s proposal to increase the FDI cap in the
insurance sector from the present 26 percent to 49 percent has raised
expectations among the international insurance companies.

Insurance – Defined
Insurance is a contract in which sum of money is paid to the
assured in consideration of insurer’s incurring risk of paying a large
sum upon a given contingency.

--
Justice Tindall

“Insurance is a contract by which one party for a compensation

called in the premium assumes particular risks of the other party
and promises to pay to him or his nominee a certain sum of money
on a specified contingency.”
-- E.W.Fitterson

Insurance may be described as social device whereby a large group

of individuals, through a system of equitable contribution, may
reduce certain measurable risk of economic loss common to all
members of the group.”
--Encyclopedia Britannica
The above definitions clearly shows that insurance is a cooperative
device to spread the loss caused by a particular risk over a member
of persons who are exposed to it and who agree to insure themselves
against risk. Insurance does not eliminate risk but only reduces the
financial burden, which may be very heavy.
 FINANCE DEPARTMENT

HDFC Standard Life, one of the leading private life insurance companies in
India declared its annual results for the financial year ending March 31,
2008. The company generated New Business Premium Income of Rs. 2,685
crores in FY2007-08 registering a year-on-year growth of 63%. The growth
was primarily driven by the success of the company's initiative on structured
sales processes based on customer needs and their assessments.

HDFC Standard Life, one of the leading private life insurance companies in
India declared its annual results for the financial year ending March 31,
2008. The company generated New Business Premium Income of Rs. 2,685
crores in FY2007-08 registering a year-on-year growth of 63%. The growth
was primarily driven by the success of the company’s initiative on structured
sales processes based on customer needs and their assessments.

Mr. Deepak Satwalekar, MD & CEO, HDFC Standard Life attributed this
growth to the quality of life insurance solutions offered by the company and
its increased geographical reach. He also emphasised, “We believe that our
success is a result of our efforts in giving customers, the best long-term
solutions to take care of their insurance needs. Our endeavour to provide
high quality insurance and pension solutions to customers through quality
pre-sales advice, based on a sound need-based solutions approach, and post-
sales service has started to pay off.”
Highlights of Financial Year 2007-08

• New Business Premium Income up by 63% to Rs. 2,685 crores. Total

Premium Income is up by 70% at Rs. 4,859 crores as against Rs.
2,856 crores in FY2006-07
• Alternate Channels including bancassurance has recorded an
impressive growth of over 63% to contribute 41% to the Effective
Premium Income (EPI)
• Group business funds under management have increased to Rs. 959
crores, registering a growth of 83% over FY2006-07
• The average premium has increased to Rs. 33,000
• Company products and services are now available in 726 cities and
towns across the country
• Strength of Financial Consultants has increased to 1,45,000.

HDFC Standard Life tracks its New Business Premium on the basis of
Effective Premium Income (EPI). EPI is calculated by giving only a 10%
value to a Single Premium policy and is an internationally accepted indicator
of an insurance company’s performance. The total premium income
(including renewal premium) grew by 70% to touch a figure of Rs. 4,859
crores. High levels of persistency have resulted in higher level of renewal
premiums. Although there has been a slight dip from 89% to 86%, we
continue to have the highest persistency level in the industry. The
cumulative sum assured for all policies issued upto March 31, 2008 crossed
Rs. 87,000 crores.

In offering unit linked products, the structured sales process adopted by the
company has paid rich dividends. “We believe that we should be able to
lengthen the maturity profile of our policy portfolio, now that the regulatory
disincentive has been removed with effect from April 1, 2008,” added Mr.
Satwalekar. HDFC Standard Life offers, both, life insurance policies as well
as pension products on a unit linked platform as also the conventional ‘with
profits’ platform.

Over 50% of the sum assured as on March 31, 2008, is in respect of non
unit-linked policies. Over 30% of funds under management are in respect of
non-linked business, which reflects the balanced book between conventional
and unit-linked business in the total portfolio of the company.

The company’s national relationships with large public and private sector
banks have also helped it reach out to a larger number of customers across
the country. The company plans to further strengthen these relationships
through the introduction of products specially designed for this channel.

HDFC Standard Life continues to have one of the widest reaches among
new insurance companies. The company strengthened its number of offices
from 103 to 572 across the country in less than 3 years. Through these
offices, the company today services customer needs in over 726 cities and
towns. The company also increased its depth in existing markets by
increasing its Financial Consultant strength from 74,000 as on March 31,
2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of
300% over the last 3 years in the number of its Financial Consultants who
have qualified to become members of the prestigious Million Dollar Round
Table (MDRT) Club. The strength of MDRT qualified members has gone up
to 496 as on December 31, 2007.

As against the regulatory requirement of writing 18% of all policies in rural

areas, HDFC Standard Life has issued over 217,000 policies accounting for
23% of all policies issued during 2007-08. Additionally, during 2007-08,
HDFC Standard Life has covered 51,326 lives under the social sector
category, as against the requirement of 25,000 lives. Overall, the company
has covered over 9,59,000 lives during the year ending March 31, 2008.

To meet the demands arising from the company’s rapid growth, shareholders
have contributed additional Rs. 470 crores of equity to take the paid-up share
capital as on March 2008 to Rs. 1,271 crores.

HUMAN RESOURCE DEPARTMENT

The Human Resources department of HDFC SL had an induction manual on
the intranet to initiate new employees into the organization. The manual had
reams and reams of text running into hundreds of pages. The volume of
information made it difficult for the user to assimilate company policies and
operating procedures.

RECRUITMENT PROCESS:

The chief attributes HDFC SL looks out for in a candidate.

• We look out for a candidate who values Integrity

• Has a zeal for Excellence
• Is focused on Results
• Is Self driven and Enthusiastic
• Is a good Learner and Team Player
• Is dedicated to Customer Satisfaction

The Recruitment Process at HDFC SL:

HDFC SL recruitment process are as follows:

Making an Application:

• Ensure the information is clear and well organized.

• Demonstrate your skills/experience/responsibilities in the previous
company

Assessment Process:

• We conduct relevant assessments like psychometric tests and written

exercises - these will be part of the selection process
• The interview panel will ask questions which will assess your
knowledge, skills and attitude. You will also have your queries
addressed.

Conditions relating to offers of employment:

All offers are subject to:

• Satisfactory medical clearance
• Satisfactory references
• Evidence of qualifications and previous employment testimonials

MARKETING DEPARTMENT
HDFC Standard Life continues to have one of the widest reaches among
new insurance companies. The company strengthened its number of offices
from 103 to 572 across the country in less than 3 years. Through these
offices, the company today services customer needs in over 726 cities and
towns. The company also increased its depth in existing markets by
increasing its Financial Consultant strength from 74,000 as on March 31,
2007 to 1,45,000 as on March 31, 2008. There has been a huge jump of
300% over the last 3 years in the number of its Financial Consultants who
have qualified to become members of the prestigious Million Dollar Round
Table (MDRT) Club. The strength of MDRT qualified members has gone up
to 496 as on December 31, 2007.

As against the regulatory requirement of writing 18% of all policies in rural

areas, HDFC Standard Life has issued over 217,000 policies accounting for
23% of all policies issued during 2007-08. Additionally, during 2007-08,
HDFC Standard Life has covered 51,326 lives under the social sector
category, as against the requirement of 25,000 lives. Overall, the company
has covered over 9,59,000 lives during the year ending March 31, 2008.

To meet the demands arising from the company’s rapid growth, shareholders
have contributed additional Rs. 470 crores of equity to take the paid-up share
capital as on March 2008 to Rs. 1,271 crores.

ADVERTISEMENT AND SALES PROMOTION

 Film opens in the compound of a
house. Father is checking something
inside the bonnet of an old small car.
His daughter, around 27-28 years old,
is working on a lap top next to him
Daughter continues affirmatively as
she signs on a cheque.
Daughter: “Aur wo bhi badi wali.”
Daughter: “Dad”. Father: “Bolo”
Daughter: “Nayi car lene mein hee
bhalaai hai.”
Dad nods in agreement without
looking up. Dad: “Hmmm…”
Dad looks at her and asks.
Dad: “Huh, Badi kyon?”
 Daughter, walks towards him with
swinging hand in air and says.
Daughter: “Kyonki Toolika Sharma
chahti hai uske dad style se travel
kare.”
And hands him the cheque. Dad looks
at the cheque and questions.
Dad (seriously): “Itne paise aaye
kahaan se?”
Dad goes back to checking the engine
and says in a light hearted tone.
Dad: “Aur Extra paise dad dega kya?”
Daughter replies firmly: “Nahi. Mere
dad ki beti.”
Daughter: “Relax dad, plan kiya.”
Dad doesn’t know what to say: “Par...”
Dad doesn’t know what to say as he Mother enters with tea. She senses
looks at the cheque. something serious and questions
Daughter pleads: “Please…dad” them.
Mother: “Aree Kya hua?”

Father looks at her and says Super: Unit Linked Savings Plans
emotionally. MVO: “Unit Linked Savings Plans
Dad: “Car badi ho gayi, aur beti bhi.” from HDFC Standard Life. zimmedari
Daughter smiles with pride. nibhao, Aaj bhi kal bhi ”
 PRODUCTION DEPARTMENT

At HDFC Standard Life, we offer a bouquet of insurance solutions to

meet every need. We cater to both, individuals as well as to
companies looking to provide benefits to their employees. This
section gives you details of all our products. We have incorporated
various downloadable forms and product details so that you can
make an informed choice about buying a policy.

For individuals, we have a range of protection, investment, pension

and savings plans that assist and nurture dreams apart from providing
protection. You can choose from a range of products to suit your
life-stage and needs.

For organisations we have a host of customised solutions that range

from Group Term Insurance, Gratuity, Leave Encashment and
Superannuation Products. These affordable plans apart from
providing long term value to the employees help in enhancing
goodwill of the company.

Individual Products :
 We at HDFC Standard Life realise that not everyone has the same

kind of needs. Keeping this in mind, we have a varied range of

Products that you can choose from to suit all your needs. These will

help secure your future as well as the future of your family.

Protection Plans :

You can protect your family against the loss of your income or the
burden of a loan in the event of your unfortunate demise, disability
or sickness. These plans offer valuable peace of mind at a small
price. Our Protection range includes our Term Assurance Plan &
Loan Cover Term Assurance Plan.

Investment Plans :

Our Single Premium Whole Of Life plan is well suited to meet your
long term investment needs. We provide you with attractive long
term returns through regular bonuses.
 Pension Plans :

Our Pension Plans help you secure your financial independence even
after retirement. Our Pension range includes our Personal Pension
Plan, Unit Linked Pension, Unit Linked Pension Plus

Savings Plans :

Our Savings Plans offer you flexible options to build savings for
your future needs such as buying a dream home or fulfilling your
children’s immediate and future needs. Our Savings range includes
Endowment Assurance Plan, Unit Linked Endowment, Unit Linked
Endowment Plus, Money Back Plan, Children’s Plan, Unit Linked
Youngstar, Unit Linked Youngstar Plus .

Group Products :

One-stop shop for employee-benefit solutions

HDFC Standard Life has the most comprehensive list of products for
progressive employers who wish to provide the best and most
innovative employee benefit solutions to their employees.
We offer different products for different needs of employers ranging
from term insurance plans for pure protection to voluntary plans such as
superannuation and leave encashment. We now offer the following
group products to our esteemed corporate clients:
 Group Term Insurance

Group Variable Term Insurance :

Group Unit-Linked Plan :

An investment solution that provides funding vehicle to manage
corpuses with Gratuity, Defined Benefit or Defined Contribution
Superannuation or Leave Encashment schemes of your company
Also suitable for other employee benefit schemes such as salary
saving schemes and wealth management schedule.

OBJECTIVE OF PROJECT:

Focus on the productivity of each consultant, corporate or individual, while

stressing on the quality of proposals

Quick roll out of Products

Efficiency of Operations

• To analyses the policy HDFC SL pvt. Ltd.

• To study the overall scenario currently prevailing in the market, namely,
the per capital income, purchasing power, occupation, literacy rate, etc.
• To study and determine the competitor position in the market.
• To know what consumer look for while policy of their share being
purchased
• To know the satisfaction /dissatisfaction level towards the insurance
company
• To create familiar and motivate individual to insurance company
• To provide information related to product and policies of insurance
company
 RESEARCH METHODOLOGY

Research:

-Its a process of collecting, analyzing, interpreting and summarizing in a

significant manner for the purpose of framing out necessary conclusion
and findings of data perceived and formulated for deriving out the
meaningful information. To carry our research necessary telephonic calls
needed to be done, suitable appointments were to be fixed and therefore
market survey is to be followed.

Objective of training:

To understand life insurance and recruitment of capable life

insurance advisors for growth prospects.

Process:

Methodology or process involving in the Research followed during

the course of summer training is as follows: -

a) Collection of data: - This is an important aspect in formulating

the objective of research process where the data is collected via two
process: - i) Primary Sources and ii) Secondary sources
i) Primary sources: - Where the data is collected primarily by
interviewing and personal observation and is original in nature and
accurate to the considerable extent.

ii) Secondary sources: -Where the data is obtained from some

published and printed sources such as newspaper, magazines, websites
and so on.

b) Analyzing of collected data: - The data collected through market

survey and published sources is then processed to obtained necessary
inferences and findings for the purpose of achieving the objective as well
as to derive necessary conclusion. A considerable skill and knowledge is
involved in analyzing the data for the purpose of interpreting thereof.

TYPES OF RESEARCH
 Questionnaire: -

Questionnaire is a set or group of questions being framed for the

purpose of obtaining market perspective about a particular aspect or
topic.

There are two types questionnaire bing carried necessary for the
market survey of the summer training being undertaken and put for
the by the trainee to the sample people taken as a base for entire
population:

a) Open ended Questionnaire: - where the people (also called

respondents) are required freedom to present their views and suggestions
for the benefits and success of the organization.

b) Close ended questionnaire: - where the respondents is limited to

the choice of answer being delivered by the interviewer itself so that
quick and fast means of responses be derived out without wasting much
time. Here close ended questionnaire being followed by me during the
course of the summer training market survey.

Sampling: - Sampling is a process of obtaining a number of

individuals taken a base for the entire population since entire
 population can not be asked about the necessary objective upon
which a questionnaire is put forth needed for the responses to be
derived for the purpose of generation of facts and customer view
point regarding their perception of particular product or services.

There are two type of sampling – i) Random Sampling and ii)

Systematic sampling.

i) Random sampling: - Random sampling is a process of

selecting the sample size randomly and no choice or preference to be
made about the selection of respondents for the market survey and
questionnaire to be put forth against him. Here, Random sampling being
adopted by me.

ii) Systematic sampling: - it is a sampling where the limited

number of selected respondents is figured out based on some criteria so
that only those respondents can be asked for the purpose of filing
questionnaire.

Sample Size: - 105 respondents.

TYPES OF DATA
The word data Mpesceans any raw information, which is either quantitative
or qualitative in nature, which is of practical or theoretical use. The task of
data collection begins after a research problem has been defined and
research design chalked out. While deciding about the method of data
collection, the researcher should keep in mind that there are two types of
data primary and secondary.

Primary data: -
This is those, which are collected afresh and for the first Time, and thus
happen to be original in character. There are many ways of data collection of
primary data like observation method, interview method, through schedules,
pantry Reports, distributors audit, consumer panel etc. The Team Managers
and employees of both the Department were consulted to get information
about procedure of both the online and off line share trading. But the method
used by us for the primary data collection was through questionnaires.

Secondary data: -
These are those data, which are not collected afresh and are used earlier also
and thus they cannot be considered as original in character. There are many
ways of data collection of secondary data like publications of the state and
central govt., reports prepared by researchers, reports of various associations
connected with business, Industries, banks etc. And the method, which was
used by us, was with the help of reports of the company

INFORMATION AND DATA RELATED TO TOPIC

 MARKET SURVEY

LIFE INSURANCE IS:

60 51
50
38
RESPONSES

40
30
20 16
10
0
Prote ction of Tax be ne fit de vice B oth
human as s e t value
agains t unce rtainty CATEGORY

From the survey it was drawn that life insurance is more a protection
of human asset value against uncertainty (conferred by 51
respondents) where it is a tax saving option (being accepted by 38
respondents). Life insurance is a service involving both these
prerequisites as depicted by remaining 16 respondents. The
following depicted this:

Protection of human asset value against uncertainty 51

Tax benefit device 38

Both 16
 IS LIFE IN S UR AN CE ES S EN TIAL?

78
80
70
60
RESPONDENTS

50 27
NO. OF

40
30
20
10
0
Ye s No
R ES P O N S ES

It has been observed and applied as a Life insurance is an essential

service and should be applicable to every one, as favored by
considerable 78 respondents where it is not essential to an extent by
27 respondents from the summer training project survey by putting
forth the set questionnaire.
 R ESPON D EN T'S QUALIFICATION

10 %

33% Pos t graduate

Graduate
Se nior s e condary

57%

When further enquired about the qualification of respondents, it was

found that 57% of the respondents were graduates, 33% were post
graduates and remaining 10% were of higher secondary out of total
105 respondents. Further depicted in the following tabular
representation : -

Post graduate 35

Graduate 59

Senior secondary 11
 AGE QUALIFICAITON:

6%

20%
39% 18-25 age group
25 – 35 age group
35 – 45 age group
Above 45 age group

35%

Further, the age qualification for agency recruitment, it was found

that 39% respondents were belonging to 18 – 25 age group, 35%
were belonging to 25 – 35 age group where as 20% to 35 -45 age
group and remaining 6% to above 45 age group. Also depicted in the
following tale mentioned below: -

18-25 age group 41

25 – 35 age group 37

35 – 45 age group 21

Above 45 age group 6

 CAUSES OF DISSATISFACTION

10%
23%
Low employment
16%
Low earning / income

Low status
17%
34% Huge capital investment

All of the above

Respondents had different views about the dissatisfaction from the

present status of working or occupation. Dissatisfaction has been
depicted in a table below and graphically above:

Low earning 3

Low employment 24 6 Huge capital investment 17

Low status 18 All of the above 0

 ABOUT CAREER IN LIFE INSURANCE

70
59
60
46
RESPONDENTS

50
40
NO. OF

30
20
10
0
Yes RESPON SES No

When asked about whether they would like to know about a glorified
career in life insurance agency where they can fulfill any and every
desire of their life, 59 respondents agreed while 46 respondents said
No and will see later sometime in future. It has been depicted that
life insurance sector should be promoted at the wide extent as it
contribute to the economy as a useful source beneficial for both
nation as well as is citizens.
 IS LIFE IN SUR AN CE A N OBLE SER VICE?

100 86

80
RESPONDENTS

60
NO. OF

40 19
20
0
Ye s No
R ESPON SES

Indeed Life insurance is a noble business as it provides a needful

financial support in the situation of fatal calamity where the family is
deprived by the fact to live in future and sustains their living. When
surveyed about life insurance as a noble service. 89 respodents
agreed and believe that insurance is a bettering service to human life
and society as a whole where as 19 respondents show disagreement.
 ACCEPT LIFE IN S UR AN CE AS A CAR EER ?
50
41
40
RESPONDENTS

30 18
NO. OF

20

10

0
Ye s No
R ES PO N S ES

From the 59 respondents who agreed to know about the life

insurance as a career, 18 of them agreed to join HDFC Standard life
insurance for agency and come to the company fore more
information whereas 41 still took time to think and postponed to
some future date. People are highly dissatisfied from the earning,
status and living standard they are sustaining at present and would
definitely like to make some additional source of earning and for this
agency for life insurance would prove a boon.
 IS LIFE IN S UR AN CE IN D US TR Y G R O W IN G ?
92
100
80
RESPONDENTS

60
40 13
20
0
Ye s No
R ES PO N S ES

From all 105 respondents, 92 agreed that life insurance sector is a

growing concern and will grow at a rapid pace in future where as 13
took as a mere stagnant industry. Financial services are growing at a
tremendous pace as people are urging to make their investment in
lucrative opportunities and therefore life insurance sector is playing a
vital role in educating the people to make their investment which
could secure their future, needs and living despite some fatal
calamity that might or might not occur.
 AGR EE WITH PR IVATISATION OF LIFE
IN SUR AN CE?
80 74
70
60
RESPONDENTS

50
40 31
30
20
10
0
Ye s No
R ESPON SES

Among 74 respondents from 105 respondents favored the

privatization of the life insurance and perceive that the people of
India will know be more aware and knowledgeable with respect to
life insurance than that in the past 50 years with the working of LIC.

The myth of LIC since it is a Government concern is still continue to

prevail even though people have become more advanced and they
can invest their hard earned money after undertaking their pros nad
cons and company position in the market.
 FINDINGS

• Trained employees can work more efficiently.

• Training makes employees more loyal to an organization.

• Training makes an employee more useful to a firm.

• Training enables employees to secure promotions easily. They can

realize their career goals comfortably.

• Employees can avoid mistakes on the job. They can handle jobs with
confidence. They will be more satisfied on their jobs.

• Training can contribute to higher production and fewer mistakes,

greater job satisfaction and lower employee turnover. Also, it can
enable employees to cope up with organizational, social and
technological change.
 RECOMMANDATION

Following are suggestions made for the benefits and augmentation of

the sound working of the company – HDFC Standard life insurance:

1. Need to train and develop life insurance agents with more

comprehensive knowledge and skills to counter every queries of the
customer.

2. It is suggested that company should not left any stone unturned

towards sound advertisement and promotional measures on every section
whether it is printed, media or or air via radio.

3. It is also suggested that skilled management graduates need to

be places on sales and marketing of financial servies who can render
their best ideas for the accomplishment of the company goals and
objectives to the best extent.

4. Also, care need to be taken that every customer’s grievance

should be met with delight whether before purchase or after sales.
5. There should be an expansion measure for more offices .

6. location of more centres for offices of the company be

established sop that company may grow its network.

7. There should more advanced measures are required to develop

to capture the needs of customer so that they can be inspire and

motivated to invest.
 CONCLUSION

In this Knowledge-based economy, training helps people to learn how

to do the things differently or to the different things. Products are now
increasingly knowledge-intensive; for this employers are responsible for
providing opportunities for continued learning. To cope with the challenges
and competitiveness in the world, every organization needs the services of
trained persons for performing the activities in the systemic way. So,
training program plays a key role in individual as well as organizational
performance.
 BIBIOLIOGRAPHY

Following are sources which helped me during my summer training:

BOOKS:

KOTHARI C.R.: Research Methodology Management, 3rd Edition

KOTLER PHILIP: Marketing Management” 11th Revised edition ,2002

GUPTA S.P.: Statistical Methods “Thirteen revised edition, 2001

MAGAZINES:

India Today

Business World
REFERENCES

Websites: -

www.hdfcinsurance.com

www.irdaindia.org

www.liccouncil.org

www.businessconnect.com
 APENDIX

Questionnaire:

Name: - ______________________________________________________

Age:-____________________________

Location: - ____________________________________________

_______________________________________________________

Occupation:

Q.1. What do you mean by life insurance?

a) Protection of human asset value against uncertainty 

b) A sum received after death 

c) Both 
Q.2. Do you think life insurance is essential for every one?

a) Yes 

b) No 

Q.3. What is your qualification?

a) Post graduate 

b) Graduate 

c) Senior secondary 

Q.4. Do you come under:

a) 18-25 age group 

b) 25 – 35 age group 

c) 35 – 45 age group 

d) Above 45 age group 

Q.5. What dissatisfied you most in your occupation

a) Low employment 

b) Low earning / income 

c) Low status 

d) Huge capital investment 

Q.6. Would you like to know about a career in life insurance

advisor ship where you can fulfill every desire of your life?

a) Yes 

b) No 

Q.7 Do you perceive that life insurance business is a noble

service oriented business?

a) Yes 

b) No 
Q.8. Would you like to become or opt for life insurance advisor
under esteemed and prospering organization HDFC Standard
Life insurance?

a) Yes 

b) No 

Q.9. Do you agree that the life insurance business is a growing

industry and will grow and rapid pace in future?

a) Yes 

b) No 

Q.10. Do you favor the privatization of life insurance by the

Government where a significant number of companies now in
the market for life insurance to the customers with the alliance
of multinationals?

a) Yes 

b) No 
 Suggestions: -

1. ……………………………………………………………

2. ……………………………………………………………

3. ……………………………………………………………

4. ……………………………………………………………

5. ……………………………………………………………