Introduction of Life insurance

Insurance provides financial protection against a loss arising out of happening of an uncertain event. A person can avail this protection by paying premium to an insurance company A pool is created through contributions made by persons seeking to protect themselves from common risk. Premium is collected by insurance companies which also act as trustee to the pool. Any loss to the insured in case of happening of an uncertain event is paid out of this pool. Insurance works on the basic principle of risksharing. A great advantage of insurance is that it spreads the risk of a few people over a large group of people exposed to risk of similar type. Different Life Insurance products can help provide the following benefits :

Tax Savings Risk Coverage (Term Plan) Long Term Investments (Pension Plan / Child Plan)

Why do you need Life Insurance?:

Why do you need Life Insurance? Life Insurance is almost a basic need. Its the first step in Personal Financial Planning .It provides valuable benefits if you make your choices carefully. Its a comprehensive wealth accumulation solution that benefits almost all.

Life Insurance Products: Life Insurance Products Unit Linked Insurance Plan Traditional Savings Plan Protection or Term Plan Health Insurance Plan

1. Unit Linked Insurance Plan: Unit Linked Insurance Plan A Unit Linked Life Insurance Plan (ULIP) offers the dual benefits of protection as well as savings which helps you to fulfill your long term financial goals with the added advantage of flexibility and transparency.

2. Traditional Savings Plan: Traditional Savings Plan Traditional plans are the oldest types of Life Insurance plans available. They usually invest in low risk return options and offer guaranteed maturity

proceeds along with declared bonuses. It also offer you the facility to take a loan against your investment

3. Protection or Term Plan : Protection or Term Plan Protection or Term plans have a high risk protection component. The main objective of these plans is to protect your family financially from unforeseen circumstances.

4. Health Insurance Plan: Health Insurance Plan Health Insurance plans insure you against several illnesses. They protect your peace of mind, get rid of all worries about treatment expenses, and allow you to focus on more important things, like getting better.

Types Of Life Insurance Products(Term Assurance)

Based on the benefit patterns the traditional Life Insurance products can be categorised into the following types:

Term Insurance Whole Life Insurance Endowment Insurance Annuities

Term Insurance provides for life insurance protection for the selected term (period of years) only. In case the person (whose life is insured) dies during the term, the benefits are payable under the policy and in case of his survival till the end of the selected term the policy normally expires without any benefit becoming payable. Term insurance may be regarded as temporary insurance and is more nearly comparable with "Property & Casualty insurance" contracts than the other forms of Life insurance contracts.

Types of Insurance
Life Insurance Health Care Insurance Home Insurance

 Travel Insurance Auto Insurance

OBJECTIVE OF THE STUDY

To know the promotional strategies of life insurance. To know how they face their competitors strategies. To know how they survive in the cutthroat competition. To know the products of the ICICI prudential life insurance To know the product life cycle of the ICICI prudential life insurance

Product marketing
In an ideal world, you would use market research to find out what your customers want and then design products to suit them.

In reality, product management starts with existing products and you have to improve on them with limited cash, skills and technological resources. But the principle still applies - good product marketing looks for ways to adapt and promote products to match customer requirements. Product features, design and quality can all be tailored to the needs of your target market. So too can its image and the customer service that you provide.

Product positioning
Simply meeting customer needs is not enough - you also need to make sure they pick you ahead of your competitors. You could focus on quality, reliability and customer service to position your product as a premium offering that's better than the competition. Customising products and services for individual customers will also make you seem unique. A tight focus on the different customer segments you're targeting can help you identify opportunities to differentiate effectively. Products targeted in this way - such as car insurance specifically for women can give you a competitive edge, even if the product itself has few specific features.

Product life cycles

Successful products don't often stay at the top for long. What usually happens is that they follow a life cycle, from introduction to the point where they are overtaken by newer, better alternatives. If you understand where your product is in its life cycle, you can market it in a way that will maximise sales. When you introduce a product, for example, you need to invest in promotion to build awareness (such as free samples) and target your marketing at people who influence others to buy. As the product's popularity grows, sales will increase and your unit costs will go down. But competitors will emerge to grab a share of the profits to be made. Your marketing objective will now be to maintain and increase your market share - for example, by improving your offer and making it more widely available. Your sales will peak and competition will heat up as the product reaches maturity. At this point, stressing the way your offer differs from your rivals' can help you maintain margins and market share. Finally, sales will fall as new products emerge. At this stage, you should focus on controlling costs and boosting efficiency.

New product development

1. Growth 2. Maturity 3. Decline

To keep up with your customers - and your rivals you will need to ensure you have a steady flow of new products. If you're aiming to be the first to market with new products, you'll need to invest heavily in innovation. This is a high-cost, high-risk strategy, but the payoff can be immense - especially if you patent your innovation.

Being second to market is the best strategy if you're a smaller firm with fewer resources. Costs and risks are lower, and you need to focus more on

differentiation than innovation to tap into a growing market. You should aim for a product mix that fits your overall marketing strategy. If you sell products which customers purchase infrequently (such as printers) you should think about diversifying into related products or services that are purchased more often (such as consumables or service contracts). Developing products that share the same underlying platform can also be a costeffective way of using your existing product expertise.

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Scope of the study:

For every problem there is a research. As all the researches are based on some and my study is also based upon some objective and these are as follows.

To understand the insurance business and products of life insurance . To find out the peoples perception about life insurance. To find out whether people were really aware of life insurance. To find out how people think about private life insurance. To find out what respondents expect from life insurance. To understand Consumer buying behavior To come out with conclusion and suggestions based on the analysis and the nterpretation of data

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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic.The word research has been derived from French word Researcher means to search.

RESEARCH DESIGN: Research Design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data. The design used for carrying out this research is Descriptive.
DATA TYPE: In this research the type of collection is Primary data Secondary data data

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DATA SOURCE:
secondary data are: Questionnaire Books Websites Magazine Brochure

The sources of collection of

SAMPLING PLAN:
It is very difficult to collect information from every member of a population .As time and costs are the major limitation that the researcher faces. A sample of 100 was taken the sample size of 100 individuals were selected on the basis of convenient sampling technique. The individuals were selected in the random manner to form sample and data were collected from them for the research study.

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ANALYSIS AND INTERPRETATION: Data collection through questionnaire and

personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Various steps

required for this purpose were editing, coding and tabulating. Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful manner. The data collected by questionnaire was analyzed,

interpreted with the help of table, bar chart and pie chart.

Consumer Perception Towards Life Insurance Product: An Empirical Study

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The life insurance plays a significant role in the well being of the people. Till insurance sector reforms the LIC has enjoyed the monopoly in life insurance business. After liberalization when private companies were allowed to start life insurance business a number of multinational giants in life insurance business have collaborated with Indian companies to start insurance business in India. Now this has posed a tough challenge to the LIC because of their latest technical know how expertise well structured marketing network etc. Of course the LIC has also made its business functioning flexible and faced the challenges boldly that emerged from the process of insurance sector reforms. Keeping in view the above issues the present book on consumer perception towards life insurance products has undertaken a comprehensive study in this regard. In this study a special mention on consumer behaviour particularly on the consumer perception has been dealt elaborately. Further the growth and development of life insurance sector has been focused. Apart from this a survey has been made to study the consumer perception towards insurance products offered by different life insurance companies. A comparative analysis has been made between public and private sector life insurance companies in this regard. Further to improve the functioning of the life insurance companies and to protect the interest of the policy
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holders a few important suggestions have been recommended. (jacket)

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Why do you invest in life insurance

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LIMITATIONS: The research is confined to a certain parts due to time constraints and does not necessarily shows a pattern applicable to all of Country. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be

considered in order to assimilate the findings. Availability of quality resource Sample selection and size Time factor

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Findings
Majority of the public uses television for entertainment or information gathering, followed by newspaper and internet. Radio is seems to be out dated in urban areas. But after revolution in mobile technology and satellite radio it has again started growing. Majority of the public goes behind brand name. Thats why corporate advertising plays a vital role in growing stage. It is also found that insurance companies like to give their ads in News/Business channel. Liking an advertisement does not mean that public would like to buy that product. If we talk about the private players, publics first choice is ICICI Prudential followed by HDFC Standard Life and Reliance Life Insurance.

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R E C OM M E N D A T I O N S A N D SUGGESTIONS
Followings are the recommendations and the suggestions not only for the Aviva life insurance company but also for other private life insurance companies if the want to complete with

public/government life insurance companies.

1. Creating positive image:

Private companies should try their level best to create positive and favorable image in the minds of people i.e. in the minds of their target customers.

2.

Training and development of F.C.:

Company must provide

training to their agents and financial so that the can satisfy customer and doubts effectively.

3.

Concern towards customers:

Serious concern must be given to

the customers as in todays scenario it regarded as Customer is a king. In formal words we can say that if can customers more loyal towards the company.

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4.

Agency holder must be well educated:

The Company should

give agency to that person who is well educated and can convince the customer b handling his queries and doubts.

5. Co-operation with agents and branch managers:

The Company must full co-operate with branch managers and agents.

6. financial consultants and agents to motivate them and to solve grievances if there are any.

Availability of branch offices:

areas;

There

must be the branch offices in each20-30 Km.

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7.

Efficient management:

The management appointed must be that

much capable that it can control the whole team and improve the goodwill and image of the company.

8. Sales promotion and marketing:

The marketing department must be so aggressive that it can have a close watch on the competitors activities. Not only this but also it must take care of the need and wants of the customers also.

9.

Incentive schemes and permanency in job:

There must be

good incentive schemes to be designed as these can acts as good motivators for the agents. The scheme of permanent job placement must be introduce for those F.C. and agents who have shown extra ordinary performance.

10. Solution

of Grievances:

There must regular meetings with the

CONCLUSION
Life insurance Corporation has completed more than three decades and thats where counts, inters of brand name, different number of policies for differed class and age group of customers.
Life Insurance has today become a mainstay of any market economy since it offers plenty of scope for garnering large sums of money for long periods of time. A well regulated Life Insurance industry which moves with the times by offering its customers tailor made products to satisfy their financial needs is, therefore, essential if we desire to progress towards a worry free future

The Private players are on the way, but they need a lot of time investment for creating a favorable brand image.

BIBLIOGRAPHY

Marketing Management by Philip Kotler, Pearson Education 2nd ed. Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th ed. IRDA Journal ICICI Prudential Company magazines Newspaper and Business magazines

WEBSITES www.iciciprulife.com www.google.co.in/indian insurance industry www.irdaindia.org

QUESTIONNAIRE
Dear Sir/Madam, I am a student of university institute of management, conducting a marketing survey on product development

strategy of life insurance product, IN jabalpur CITY. I

request you to fill this questionnaire & I assure that this data will be used only for study purpose & it will be kept confidential.

1. 2.

Name Address

_________________________________ _________________________________ _________________________________ _________________________________

3.

Age

a. Less than 25 b. 25 35 4. Qualification

c. 35-45 d. 45 and above

a. Graduate b. Postgraduate 5. Occupation a. Business b. Professional

c. Diploma d. Other discipline

c. Job holder d. Other

6. What is your average annual income? Up to 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more

a. b. c. d.

7. Your family size a. Below 5 members b. 5 10 members c. Above 10 members

7. According to you life insurance is, a. A tax saving plan b. A saving scheme with good return c. A financial security for the family d. Risk coverage e. All the above 8. Have you taken any life insurance product of ICICI Prudential Life insurance? YES NO

If yes 9. Which are in these? a. Unit gain plan b. Invest gain plan c. Whole life plan d. Children plan e. Pension plan f. Others __________________ 10. Are you aware of the benefits in your policy? Yes No

If yes what are they? Sum assured Additional benefits Maturity date

 Risk coverage 11. According to you what are the disadvantages in an insurance plan? Lapsation Liquidity Fixed term Unable to decide your premium Unable to decide the sum assured High risk coverage at high premiums Other disadvantages

12. In which of the following would you like to invest? 13. Equity fund Debt fund Balanced fund Cash fund Mutual fund Recurring deposits

Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________

Thank you for sparing your valuable time