Professional Documents
Culture Documents
1. OBJECTIVES 5
2. THEORY AND CONCEPT 6
3. COMPANY PROFILE 7
I. COMPANY 7
II. VISION 8
III. PROMOTERS 10
IV. PRODUCT 12
V. DISTRIBUTION 18
4. STRUCTURE OF THE SALES FUNCTION 19
5. IT INTEGRATION 23
6. RESEARCH METHODOLOGY 32
a. PROBLEM&RESEARCH OBJECTIVE 32
b. RESEARCH PLAN 33
c. DATA COLLECTION 33
7. ANAYLISIS 39
8. FINDING 52
9. PORTER FIVE COMPETITIVE FORCES 54
10. SWOT ANAYSIS 57
11. BCG MATRIX 61
12. RECOMMENDATION AND SUGGESTIONS 63
13. BIBLIOGRAPHY 65
OBJECTIVES
Financial market is one of the markets where there is lots of option for
the Company, because this market is at the starting point or at the initial
the insurance as well as the mutual fund. The financial market mainly
depend upon the investor who have the power of money to invest into
the market in the form of insurance or mutual funds, and our objective
was to find out investor who can be the future client of the company, our
the people who can change their financial decision, because most of the
HNI client usually take the Advice of the people who are close to
Financial market is one of the market, which had started to grow a few
years ago, and with boom in this sector many private company came
into existence, and ICICI prudential is one of them. The Financial
market is mainly depend on the people who had enough money to
invest, to get a good return out of it and our project aim was to find out
those prospect who can invest heavily on the financial market and the
source through which we can reach them, such as:-
• Bankers.
• Chartered Accountant.
• Investment Consultant
It is general known that most of the heavy investor usually consults their
bankers, chartered accountant or their Investment Consultant before
taking any decision while investing, because they are the people who are
generally close to them and know them very well, so our project was to
find out, who are the people who can change their decision to ICICI
Prudential favour .Most of HNI are usually depend upon their CA,
because he is the person who control the financial detail of his client
and his decision are generally consider as one of the most valuable
decision . So our main aim of the project was to find out the various
details such as:-
• Chartered Accountants name
• Chartered Accountant, Detail.
• Clients Advisor
• Bank Name
COMPANY PROFILE
United Kingdom. ICICI Prudential was amongst the first private sector
(IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. In the
financial year ended March 31, 2005, the company garnered Rs 1584
agent tie-ups. For the past four years, ICICI Prudential has retained its
position as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at
He h
alt alt
h Total We
Protection
We cover you at
every step in Life
Life
VISION
To make ICICI Prudential the dominant Life and Pensions player built
Company’s policyholders
dealings.
Ownership and Passion. Each of the values describes what the company
stands for, the qualities of people and the way they work.
reshaping the sector. Given the quality of parentage and the commitment
ICICI Bank:-
second-largest bank with total assets of about Rs.112, 024 Crore and a
network of about 450 branches and offices and about 1750 ATMs. It
profit of Rs.1637 Crore for the year ended March 31, 2004. ICICI
Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the
the UK and Europe, the US and Asia, provides retail financial services
and unit holders worldwide. As of June 30, 2004, the company had over
ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord
Krishna Bank and some co-operative banks, as well as over 150
corporate agents and brokers. It has also tied up with NGOs, MFIs and
Dhan for distribution of Salaam Zindagi, a policy for the socially and
customers.
Products
Insurance Solutions
ICICI Prudential Life Insurance offers a range of innovative, customer-
centric products that meet the needs of customers at every life stage. Its
Savings Solutions:-
Protection Solutions
• Lifeguard is a protection plan, which offers life cover at very low
Child Plans
benefits to a child along with life insurance cover for the parent
regular premium.
Retirement Solutions
thirties.
plan
• Life Link Pension II is a single premium market-linked pension
plan.
bonuses.
of the society.
obligations.
• ICICI Pru Group Term Plan: ICICI Pru?S flexible group term
ICICI Pru Life offers flexible riders, which can be added to the basic
customer.
as additional benefit.
• Accident Benefit: This rider option pays the sum assured under
procedures.
• Income Benefit: This rider pays the 10% of the sum assured to
the nominee every year, till maturity, in the event of the death of
Plus
key person.
All premiums paid for securing a Keyman life insurance policy are
Mutual Funds
A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then
other securities. The income earned through these investments and the
Tied Agency
Both types of structures are described as follows:
through banks and alliances. Within a short span of two years, and with
with there partners and add value to its customers as well as the
leverage distribution synergies with its partners and add value to the
Banks
ICICI Bank
Federal Bank
Bank of India
Lord Krishna Bank
Corporate Agents
Bajaj Capital
India Infoline
Way 2 Wealth
Blue Chip
AHS
APS
S M Insurance
Investment Managers
Ltd. is as follows:
o Branch Sales Manager (BSM)/ Center Sales Manager
o Sales Manager(SM)
Tied Agency: -
Tied Agency is the largest distribution channel of ICICI Prudential,
Generally this advisors works under the leadership of unit manager, who
o Sales Manager(SM)
IT INTEGRATION
network services to the whole organization. This group runs the 'Digital
business application.
The IT function is divided into two functional units and two staff units.
Functional Units
1. Systems Delivery
Staff Units
1. IT Quality
3. Corporate Systems
level, as per user requirements. This include running end of period batch
jobs, executing downloads & uploads, executing report runs and batch
queries, taking backups, maintaining tape libraries and executing review
across HO and all branches. This unit also provides local helpdesks at
evaluating new products, trends and strategies and conduct research into
and compare it to the state of the practices of the industry. The CMM
process.
The CMM has 5 Levels, 18 Key Process Areas (KPA's), 316 Key
Improvement.
weaknesses.
Members of SEPG are given either full time or part time responsibility
SEPG
rotational basis.
Responsibilities of SEPG
Committee.
level.
organizational level.
activities.
ICICI Pru has defined 15 processes that cover the entire Software
Management Responsibility
Defines the way the software quality system is structured and provides
Requirements Management
initiation activities.
Estimation –
to estimates.
subcontracted work.
Reviews –
identified in the design document into software units that can be coded
Outlines the steps involved in Planning and carrying out Testing of the
software components.
Process Improvement –
Improvements.
Measurements –
industry, which had the mettle to take up the six-sigma initiative. It's
quite some time now since ICICI Prudential took up this quality
ICICI Prudential have blended quality in the form of six sigma into all
their processes and systems. And that gave birth to a hybrid "Business
J ET (Login to Customer
Received)
Accuracy MIS
J ET (Cheque Date
J ET (Cheque Date to to
2. Branch Discrepancy: Any error caught in the application form or
3. Call Back Error: All errors identified at post issuance call back
stage.
contract
details
• Data Entry Error: Error done while doing data entry at COPS
S ta g e
• Underwriting Error : Error done by underwriters
Service – Overall
Categ
5
Compla
4
Level
Reque
3
RESEARCH METHODOLOGY
Our main objective was to find out the top HNIs (High net worth
income) group and their various mode of investment. The main problem
was how to find out the top twenty HNI clients from the bunch of
started with designing the questionnaire for the clients whom I was
going to target and to know about their investment pattern. The main
Research plan
The research process depends upon developing the most efficient plan
Our objective was to find the “Synergy of HNIs with there Distribution
Channel”.
This objective had made our project too narrow because from now
onward our task was to find the top industries and person who can invest
above 1 crores and more then that. So from now onwards I started to
Data source
For this project both primary and secondary data were the most valuable
source of information.
Secondary data:-
Secondary data provide a starting point for research and offer the
The secondary data was the most important source for my project
because my first aim was to find out the top five person or industries
from every segment of the industries so for this reason I started
collecting the various directory which can help me in finding out the
Telephone Directory.
City directory.
HDFC Banks.
Transporter directory.
Exporter Directory.
Lawyers Directory.
CNF
Primary data:-
Primary data are data freshly gathered for a specific purpose. The
Banks.
Local residents.
People from industries
Research Approaches:-
From the two data source which I have mention above secondary data
are the easiest way to gather and the cost of collecting this data is very
low and easily available from the respective association. And I started
starting point of the survey this information play a important part for
me and this help me to short out the people which, I can meet with them
for me
by me in my survey.
me in my survey.
Research Instruments:-
1. Questionnaires.
2. Psychological tools.
3. Mechanical Devices.
4. Qualitative Measures.
behaviors, who is their financial consultant etc. And this was the
technique which I felt the best way to extract information about the
client
Sampling Plans
After collecting entire data and deciding on the research approach and
instruments, now I had to decide on the sampling plan which was one of
the important task, because from the bunch of people I had to select only
those people ,whom I can target from now onward .There are three way
Contact Methods:-
Once the client had been decided now my task was how to contact
things.
once, because the client had no time for me, and there
wrong, if we say that it is also the land of rich people. The Various
• Sarees Industries.
• Carpet Industries.
• Oil Industries.
• Hotel Industries.
• Transport.
• Textile Industries.
• “Etc”
ANALYSIS OF DATA CHART
R e tu r n c lie n ts a r e lo o k in g a t
10% 5%
L e s s th a n 1 0 %
B /W 1 0 -1 5 %
40% B /W 1 5 -2 0 %
45% A bove 20%
From the Above Pie chart, it is clear that most of the client are looking
above 15% , this is because they are getting more return from their
earlier investment such as in the business and in real state, this shows
that they are willing to take more risk to get more return from their
investments
The second largest group is between 10% to 15%, this shows that most
of the businesses man wants to balance the risk and return of their
Around 85% of the clients comes under this two category ,this shows
that most of the clients are ready to take risk for their investments.
From the below pie chart, preference of the clients for the various
because at present there is not much option for the client in the city, and
the city recently. While some clients like to invest in other mutual funds
as well.
M u tu a l F u n d P re fe re d
20%
P r e f e r e n c e o f C lie n t
N a tio n a li ze d B a n k
P riv a te B a n k
From the above chart it is very clear that the nationalized banks are far
ahead in compare to private banks. There are many factors, which are
1. Nationalized banks are operating for many years in the city and
the private banks had opened their branches, a few years an ago.
and for this reason customers are not willing to change their
banks.
visit, and this is very well done by some of the nationalized banks
5. most of the private banks are using metro city style of behavior
while dealing with the clients and this behavior are not liked by
6. Some of the private banks are charging more money for their
to private banks.
nationalized banks.
S ta te B a nk o f
N a tio n a liz e d B a n Ind
k s ia
B a nk o f Ind ia
6% 11% 11%
6% Unio n B a nk o f
6% ind ia
P unja b Na tio na l
B a nk
C e ntra l B a nk o f
60%
Ind ia
A lla ha b a d B a nk
From the above chart it is very clear that Union Bank of India is the
leading nationalized bank of the City. It has 60% share in the banking
1. The service of the union bank is far better then any nationalized
P r iv a te B a n k s
IC IC I B a n k
50% 50% HD F C B a nk
PRIVATE BANKS: - the pie chart shows the preference of the client
for the various Private Banks. It is very clear from the chart that ICICI
Bank and HDFC are the two leading private banks of the city. This is
mainly because.
• These two banks are the first private banks which has opened
the company.
A g e B ra k e t
5%
20% L e s s th a n 5 y e a rs
B /W 5 -1 0 y e a rs
B /W 1 0 -1 5 y e a rs
60% 15% A b o v e 1 5 y e a rs
From the Above Chart it is very clear that most of the industries are
very old.
• Around 60% of the industries are more then 15 years old, this
• Form the above chart it is clear that most of the HNI relies on
their own decision, there are around 84% of the people who
thinks that they are more intelligent to take decision of their own.
because banker are the people who generally interact with them
relationship .
Bank FD
RBI Bond
20%
34%
5% M u tu a l F u n d
2% U n i t L in k e d
17% P la n / In s u r a n c e
22%
R e a l E s ta te
B a c k in to b u s in e s s
T e n u re o f F D p re fe re d
S h o rt T e rm (L e s s
25% th a n 2 y e a rs )
M e d iu m T e r m ( B / W
2 -5 y e a rs )
50% L o n g T e rm ( M o re
17% th a n 5 y e a rs )
8% N ot Know n
we can see from the above chart that there are majority of clients (from
the clients who have disclosed this data) prefer the short term fixed
deposits as their favorite option. Most of the clients use the ideal money
which they have to meet the uncertainty or short term requirement.
In s u r a n c e P a r t n e r P r e f e r e d
13%
7% L IC
47% HDFC
IC IC I P r u d e n ti a l
33% O r i e n ta l In s u r a n c e
This chart show the preference of the people who had invested in the
insurance sector, and from the chart it is very clear that LIC is the
the insurance sector and had capture most of the market by being
LIC had a very good network of agents, and those are the back
LIC had provided better service in the past which had made trust
in the mind of the people and for that reason they feel more
comfortable.
HDFC and ICICI Pru are the second in this field mainly because
they had opened their branches recently and slowly they are
company .
FINDING
The most common reason is that the public banks are operating for
many years and they have developed a good relationship with their
client and this is the reason why the HNI are not eager to move to the
them while their visit and this is very well done by the public banks
in the public banks are local residents and they have their personal
There is excess calling by the employee of the icici banks and by the
Advisors of ICICI Prudential, and this is one of the reasons why they are
not interested in the bank nor in ICICI prudential, and the other reason is
that most of the time Advisors try to meet the HNI clients without prior
Most of the HNI clients, Money are kept ideal in the banks –
This is a very good opportunities for the icici prudential to cash most of
the HNI client in varanasi, because there is not much option for them for
investment and most of the client prefer to keep a good amount of cash
LIC is the most prefer insurance company in the country, this is because
of the brand name and LIC is also the first mover in the insurance sector
and this is a great advantage for them. There are lots of things which
Company.
PORTER FIVE COMPETITIVE FORCES
Competitive Force:
Michael Porter has identified five forces that determine the intrinsic
• Industry competitors
• Potential entrants.
• Substitutes.
• Buyers.
• Suppliers.
Threat of Intense Segment Rivalry:
the growing stage of the life cycle, and these makes this segment
• Bajaj Alliances
• HDFC.
• Franklin Templeton.
• Reliance.
makes this Sector attractive to most of the financial companies. So, for
five years of this segment but on the other hand the company like, LIC
Segments attractiveness varies with the height of its entry and exit
because the entry barriers are high for the foreign companies, because of
the restriction imposed by the Indian government on them, such as, they
can have a maximum of 26% stage in the company and secondly the
by the govt. and the exit barriers are low. This means that few new firms
can enter into the industry and poor-performing firms can easily exit and
for this reason, this segment is more attractive for the companies.
products, this segment is unattractive because there are many actual and
potential substitutes for the product of ICICI prudential and all the
competitors have almost similar product or plans, but they mainly differ
sectors.
plans.
bargaining power is more, because banks and CA are the easiest and the
important channel to reach the client and for that reason they have the
STRENGTH:-
over the country as number one bank in the private sector and this
is the name which people have trusted for many years, which is
the people.
force of good marketing brain, which gives an edge over the other
Corporate Agents
Bajaj Capita
India Infoline
Way 2 Wealth
Advanced Financial Services (Karvy)
Blue Chip
AHS
APS
Strategic Marketing Pvt. Ltd.
S M Insurance
Investment Managers
WEAKNESS:-
the competition is very tuft and are not concentrating on the other
and this makes most of the people to avoid this plan because they
Funds.
OPPORTUNITIES:-
are large parts of the cities were Nationalized banks have large
because they are operating for such a long time and there is a
of LIC.
Threats:-
abase.
Threat with some private banks: - there are some banks which
CASH COW: -
Tied Agency: -Tied agency are cash cow for ICICI prudential because
they are the people who brings more customer to the company and cover
a large area of the city and the cost of keeping them is very less because
advisors works on the commission basis the this is the reason why they
department.
STAR: -
matrix, because most of the HNI which the company gets is through the
Bankers this is because most HNI have their Account in the Banks and
they also rely on the banks for their investment. Secondly people
name is used by the ICICI prudential to get more customers and usually
Question Marks:-
the city like Varanasi, where most of the decision are taken by the HNI
we can reach to their client very easily and in future they can become
Dogs:-
is no dog for the company at present and in future ,which are on the
Most of the client whom I meet during my survey told me that they
Business:-
When we look at the Small city like Varanasi, most of the HNI client
banks are giving good service for many years and If ICICI prudential
can make tie-up with the employees of this banks then they can be
business with the ICICI banks, and this is mainly because of their
service and the banks do not give preference to them and there are
many restrictions in their operations. So I suggested that some staff
should be made to look after them, because they are the customers
Most of the time, clients get disturb because of telephone call made
by the advisors of ICICI prudential and bank. I accept that this is the
Most of the time people do not want to do business with the ICICI,
because of the Hidden cost which they come across while dealing
class: -
the service class. It is generally known that more insurance are made
by the service class to get reduction from the Tax, so we should also
focus on the service class because they are the people who wants to
country.
The local employees will have their contact in the city and this can
be use by the company to get more business from their contact and
Directories:
Telephone Directory.
City directory.
HDFC Banks.
Transporter directory.
Exporter Directory.
Lawyers Directory.
Other Materials:
Marketing Management by Philip Kotler.
Finsight (Level 1).
Product Brochures.