SUBMITTED TO: A.PROF.

CHANJYOT KAUR
SUBMITTED BY :AMAN KUMAR
BBA 3RD YEAR
10836.
1

Acknowledgement
I am thankful to almightily God for blessings and support that he has bestowed upon
me to giving the strength to complete this project.
I convey a special thanks to Assi. Prof. Chanjyot Kaur who give me opportunity to work
on this project and for there extended support and guidance.
Finally, I thanks to my family, friends and all persons who help me to complete this
project.

INDEX

Sr. No.

Content

Page
No.
4

Introduction

Concept of marketing

Introduction of insurance

Role of IRDA

11

Market strategies in Bharti AXA

15

Importance of market strategies

24

Objective of study

26

Review of literature

27

10

Data collection

29

11

Analysis of data

30

12

Finding

45

13

Suggestions

46

14

Conclusion

47

15

Bibliography

48

Introduction
Bharti AXA Life is a life Insurance player that was started in 2006. It brings together strong
financial expertise of the Paris-headquartered AXA Group and Bharti Enterprises - one of
India's leading business groups with interests in telecom, agricultural business, financial
services, and retail. The joint venture has a 74% stake from Bharti and 26% stake from AXA
.The company launched national operations in December 2006. Today, Bharti AXA Life has a
national footprint of distributors trained to provide quality financial advice and insurance
solutions to the large Indian customer base.
Bharti AXA Life offers a range of innovative products and services that cater to specific
insurance and wealth management needs of customers

Bharti Enterprises is an Indian business conglomerate headquartered in New Delhi, India. It

was founded in 1976 by Sunil Bharti Mittal and it operates in 20 countries across Asia and
Africa. Bharti Enterprises owns various businesses spanning across telecommunications,
retail, financial services and manufacturing. harti Enterprises Limited, through its subsidiaries,
engages in the fields of telecom, financial services, retail, fresh and processed foods, and real
estate in India and internationally. It offers integrated telecommunications, such as 2G, 3G and
4G, fixed line, high speed broadband through DSL, IPTV, DTH, and national and international
long distance services to carriers. The company deploys, owns, and manages telecom towers
and communication structures for various mobile operators; and develops commercial real
estate in central business district areas of metropolitan cities, retail real estate in up-market
localities of metropolitan cities, and residential real estate in the Delhi NCR.

History
The company was founded by Sunil Bharti Mittal along with his two siblings in 1976. The
company started with manufacturing bicycles before diversifying into various sectors. It
entered into telecommunications industry in 1995.

Companies
Bharti is present in various sectors with the largest revenue contribution coming from telecom
industry.
1. Bharti Airtel

Coverage map of Bharti Airtel across 19 countries

2.Satya Bharti School in Haryana

Bharti Airtel Ltd is the third largest mobile operator in the world, in terms of subscriber base,
and has a presence in 20 countries. The company is Indias largest integrated telecom company
in terms of customer base and offers mobile, fixed line, broadband, IPTV, DTH and enterprise
services.

3. Bharti Infratel
Bharti Infratel deploys and manages telecom towers and communication structure for various
wireless operators. The company has pioneered the GreenTowers P7 initiative for the
betterment of the environment. In India, Bharti Infratel owns 33,446 towers across 11 circles. It
will spend 1,086 crore to set up 4,813 new towers and upgrade its existing ones by financial
year 2016.[1] Bharti Infratel also has a 42% stake in Indus towers which was created as a Joint
Venture between Bharti Infratel, Vodafone and Idea & owns more than 100,000 towers across
15 circles.
4. Bharti Retail
Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a chain
of multiple format stores. The companys neighborhood format stores operate under
the Easyday brand and the compact hypermarket format under the 'Easy day market' brand.
Recently the company has become more involved in the food economic sectors, with a joint
partnership in the agricultural company FieldFresh.

5. Bharti TeleTech
Bharti Teletech is Indias leading telecom & allied products company. It is one of the largest
manufacturers of land line telephones in the world. With a strong distribution
network across the country, the company is also the primary distributor of IT and
Telecom

products

from

international

brands

as Motorola, Blackberry, Thomson, Polycom, Transcend, and Beetel.

such

6. FieldFresh Foods
FieldFresh Foods is a joint venture between Bharti Enterprises and DMPL India Ltd. (a
subsidiary of Del Monte Pacific Ltd.). The company offers fresh fruits & vegetables and
processed foods & beverages in the domestic as well as international markets.

7. Bharti AXA General Insurance and Life Insurance

Bharti AXA is a joint venture between Bharti Enterprises and AXA, world leader in financial
protection and wealth management. They offer a range of life insurance and wealth
management products.

8. Centum Learning
Centum (formerly Bharti Learning Systems Limited), a wholly owned subsidiary of Bharti
Enterprises, is a learning and development organisation that specializes in the customer
experience arena.

12. Bharti Foundation

Bharti Foundation was set up in 2000. It aims to create and support programs that bring about
sustainable changes through education and the use of technology and information.

13. Bharti Realty

Bharti Realty is the in-house Real Estate arm for Bharti Group and facilitates by extending
support to the Group Companies for identifying, developing and maintaining real estate.
Founded in 1976, by Sunil Bharti Mittal, Bharti has grown from being a manufacturer of
bicycle parts to one of the largest and most respected business groups in India. With its
entrepreneurial spirit and passion to undertake business projects that are transformational in
nature, Bharti has created world-class businesses in telecom, financial services, retail, and
foods.
Bharti started its telecom services business by launching mobile services in Delhi (India) in
1995. Since then there has been no looking back and Bharti Airtel, the group's' flagship
company, has emerged as one of the top telecom companies in the world and is amongst the top
five wireless operators in the world.

Through its global telecom operations Bharti group has presence in 21 countries across Asia,
Africa and Europe - India, Sri Lanka, Bangladesh, Jersey, Guernsey, Seychelles, Burkina Faso,
Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Ghana, Kenya, Madagascar,
Malawi, Niger, Nigeria, Sierra Leone, Tanzania, Uganda, and Zambia.

Over the past few years, the group has diversified into emerging business areas in the fast
expanding Indian economy. With a vision to build India's finest conglomerate by 2020 the
group has forayed into the retail sector by opening retail stores in multiple formats - small and
medium - as well establishing large scale cash & carry stores to serve institutional customers
and other retailers. The group offers a complete portfolio of financial services - life insurance,
general insurance and asset management - to customers across India. Bharti also serves
customers through its fresh and processed foods business. The group has growing interests in
other areas such as telecom software, real estate, training and capacity building, and
distribution of telecom/IT products.
Bharti strongly believes in giving back to the society and through its philanthropic arm the
Bharti Foundation it is reaching out to over 30,000 underprivileged children and youth in India.
Bharti AXA Life Insurance is a joint venture alliance between Bharti, one of India's leading
groups with interests in telecom, agriculture business and retail, and AXA, a Peris
Headquartered Company is a world leader in financial protection and wealth management.
Bharti is the country's pioneer in the telecom sector with Bharti Airtel Limited, which is Indias
leading private sector provider of telecommunications services with an aggregate of over 70
million customer base. It provides mobile services, fixed line, enterprises and broadband
services.
AXA's has diversified operations across the world with major operations based out of Europe,
North America and the Asia Pacific area. Bharti owns 74% of the stake and AXA owns the
remaining 26% of the stake of the joint venture
Bharti AXA commenced its operations across the country in December 2006 with its
headquarters in Mumbai, the financial capital of India. It has a strong management team which
comprises of Sandeep Ghosh as the Chief Executive Officer at Bharti AXA Life Insurance,
Jyoti Punja as the Chief Operating Officer (COO), Mr. Venkatasubramanian A as the Chief and
Appointed Actuary and V Srinivasan as the Chief Financial Officer of Bharti AXA Life
Insurance. There is a robust team to design insurance product that will cater the different needs
of the Indian consumers.

Concept of Marketing
There are many definitions of marketing. The better definitions are focused uponcustomer
orientation and satisfaction of customer needs:According to Philip Kotler - Marketing is the social process by which individuals and
groups obtain what they need and want through creating and exchanging products and
value with others.
According to P.F Drucker - Marketing is not only much broader than selling, it is not a
specialized activity at all It encompasses the entire business. It is the whole business seen
from the point of view of the final result, that is, from the customer's point of view.
Concern and responsibility for marketing must therefore permeate all areas of the
enterprise.

INTRODUCTION OF INSURANCE:
Wherever there is uncertainty there is risk. We do not have any control over uncertainties which
involves financial losses. The risks may be certain events like death, pension, retirement or
uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the
savings of the public and providing them with risk coverage. The main function of Insurance is
to provide protection against the possible chances of generating losses. It eliminates worries
and miseries of losses by destruction of property and death. It also provides capital to the
society as the funds accumulated are invested in productive heads. Insurance comes under the
service sector and while marketing this service, due care is to be taken in quality product and
customer satisfaction. While marketing the services, it is also pertinent that they think about the
innovative promotional measures. It is not sufficient that you perform well but it is also
important that you let others know about the quality of your positive contributions. The
creativity in the promotional measures is the need of the hour. The advertisement, public
relations, word of mouth communication needs due care and personal selling requires in
tensivecare.
INSURANCE MARKETING:
The term Insurance Marketing refers to the marketing of Insurance services with the aim to
create customer and generate profit through customer satisfaction. The Insurance Marketing
9

focuses on the formulation of an ideal mix for Insurance business so that the Insurance
organisation survives and thrives in the right perspective.

MARKETING --MIX FOR INSURANCE COMPANIES:

The marketing mix is the combination of marketing activities that an organization engages in so
as to best meet the needs of its targeted market. The Insurance business deals in selling services
and therefore due weight-age in the formation of marketing mix for the Insurance business is
needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its
price, place, promotion, people, process & physical attraction. The above mentioned 7 P's can
be used for marketing of Insurance products, in the following manner:
PRODUCT:
A product means what we produce. If we produce goods, it means tangible product and when
we produce or generate services, it means intangible service product. A product is both what a
seller has to sell and a buyer has to buy. Thus, an Insurance company sells services and
therefore services are their product. In India, the Life Insurance Corporation of India (LIC) and
the General Insurance Corporation (GIC)are the two leading companies offering insurance
services to the users. Apart from offering life insurance policies, they also offer underwriting
and consulting services. When a person or an organisation buys an Insurance policy from the
insurance company, he not only buys a policy, but along with it the assistance and advice of the
agent, the prestige of the insurance company and the facilities of claims and compensation. It is
natural that the users expect a reasonable return for their investment and the insurance
companies want to maximize their profitability. Hence, while deciding the product portfolio or
the product-mix, the services or the schemes should be motivational. The Group Insurance
scheme is required to be promoted, the Crop Insurance is required to be expanded and the new
schemes and policies for the villagers or the rural population are to be included. The Life
Insurance Corporation has intensified efforts to promote urban savings, but as far as rural
savings are concerned, it is not that impressive. The introduction of Rural Career Agents
Scheme has been found instrumental in inducing the rural prospects but the process is at infant
stage and requires more professional excellence.
2. PRICING:

10

In the insurance business the pricing decisions are concerned with The premium charged
against the policies, Interest charged for defaulting the payment of premium and credit facility,
and Commission charged for underwriting and consultancy activities. With a view of
influencing the target market or prospects the formulation of pricing strategy becomes
significant. In a developing country like India where the disposable income in the hands of
prospects is low, the pricing decision also governs the transformation of potential policyholders
into actual policy holders. The strategies may be high or low pricing keeping in view the level
or standard of customers or the policy holders. The pricing in insurance is in the form of
premium rates. The three main factors used for determining the premium rates under a life
insurance plan are mortality, expense and interest. The premium rates are revised if there are
any significant changes in any of these factors.

Mortality (deaths in a particular area):When deciding upon the pricing strategy the

average rate of mortality is one of the main considerations. In a country like South Africa the
threat to life is very important as it is played by host of diseases.
o

Expenses: The cost of processing, commission to agents, reinsurance companies as well

as registration are all incorporated into the cost of installments and premium sum and forms
the integral part of the pricing strategy.
o

Interest: The rate of interest is one of the major factors which determines people's

willingness to invest in insurance. People would not be willing to put their funds to invest in
insurance business if the interest rates provided by the banks or other financial instruments are
much greater than the perceived returns from the insurance premiums.

3. PLACE:
This component of the marketing mix is related to two important facets , Managing the
insurance personnel, and Locating a branch. The management of agents and insurance
personnel is found significant with the viewpoint of maintaining the norms for offering the
services. This is also to process the services to the end user in such a way that a gap between
the services- promised and services -- offered is bridged over. In a majority of the service
generating organizations, such a gap is found existent which has been instrumental in making
worse the image problem. The transformation of potential policyholders to the actual
policyholders is a difficult task that depends upon the professional excellence of the personnel.
The agents and the rural career agent sating as a link, lack professionalism. The front-line staff
and the branch managers also are found not assigning due weight-age to the degeneration

11

process. The insurance personnel if not managed properly would make all efforts insensitive.
Even if the policy makers make provision for the quality upgrading the promised services
hardly reach to the end users. It is also essential that they have rural orientation and are well
aware of the lifestyles of the prospects or users. They are required to be given adequate
incentives to show their excellence. While recruiting agents, the branch managers need to
prefer local persons and provide them training and conduct seminars. In addition to the agents,
the front-line staff also needs an intensive training programmed to focus mainly on behavioral
management. Another important dimension to the Place Mix is related to the location of the
insurance branches. While locating branches, the branch manager needs to consider a number
of factors, such as smooth accessibility, availability of infrastructural facilities and the
management of branch offices and premises. In addition it is also significant to provide safety
measures and also factors like office furnishing, civic amenities and facilities, parking facilities
and interior office decoration should be given proper attention. Thus the place management of
insurance branch offices needs a new vision, distinct approach and an innovative style. This is
essential to make the work place conducive, attractive and proactive for the generation of
efficiency among employees. The branch managers need professional excellence to make place
decisions productive.

4. PROMOTION:
The insurance services depend on effective promotional measures. In a country like India, the
rate of illiteracy is very high and the rural economy has dominance in the national economy. It
is essential to have both personal and impersonal promotion strategies. In promoting insurance
business, the agents and the rural career agents play an important role. Due attention should be
given in selecting the promotional tools for agents and rural career agents and even for the
branch managers and front line staff. They also have to be given proper training in order to
create impulse buying. Advertising and Publicity, organisation of conferences and seminars,
incentive to policyholders are impersonal communication. Arranging Kirtans, exhibitions,
participation in fairs and festivals, rural wall paintings and publicity drive through the mobile
publicity van units would be effective in creating the impulse buying and the rural prospects
would be easily transformed into actual policyholders.
5. PEOPLE:
Understanding the customer better allows to design appropriate products. Being a service
industry which involves a high level of people interaction, it is very important to use this
12

resource efficiently in order to satisfy customers. Training, development and strong

relationships with intermediaries are the key areas to be kept under consideration. Training the
employees, use of IT for efficiency, both at the staff and agent level, is one of the important
areas to look into.
6. PROCESS:
The process should be customer friendly in insurance industry. The speed and accuracy of
payment is of great importance. The processing method should be easy and convenient to the
customers. Installment schemes should be streamlined to cater to the ever growing demands of
the customers. IT & Data Warehousing will smoothen the process flow. IT will help in
servicing large no. of customers efficiently and bring down overheads. Technology caneither
complement or supplement the channels of distribution cost effectively. It can also help to
improve customer service levels. The use of data warehousing management and mining will
help to find out the profitability and potential of various customers product segments.
7. PHYSICAL DISTRIBUTION:
Distribution is a key determinant of success for all insurance companies. Today, the nationalize
insurers have a large reach and presence in India. Building a distribution network is very
expensive and time consuming. If the insurers are willing to take advantage of India's large
population and reach a profitable mass of customers, then new distribution avenues and
alliances will be necessary .Initially insurance was looked upon as a complex product with a
high advice and service component .Buyers prefer a face-to-face interaction and they place a
high premium on brand names and reliability. As the awareness increases, the product becomes
simpler and they become off-the-she l fcommodity products. Today, various intermediaries, not
necessarily insurance companies, are selling insurance. For example, in UK, retailer like Marks
& Spencer sells insurance products. The financial services industries have successfully used
remote distribution channels such as telephone or internet so as to reach more customers, avoid
intermediaries, bring down over heads and increase profitability. A good example is UK insurer
Direct Line. It relied on telephone sales and low pricing. Today, it is one of the largest motor
insurance operator. Technology will not replace a distribution network though it will offer
advantages like better customer service. Finance companies and banks can emerge as an
attractive distribution channel for insurance in India. In Netherlands, financial services firms
provide an entire range of products including bank accounts, motor, home and life insurance
and pensions. In France, half of the life insurance sales are made through banks. In India also,
13

banks hope to maximize expensive existing networks by selling a range of products. It is

anticipated that rather than formal ownership arrangements, a loose network of alliance
between insurers and banks will emerge, popularly known as bancassurance. Another
innovative distribution channel that could be used are the non-financial organisations. For an
example, insurance for consumer items like fridge and TV can be offered at the point of sale.
This increases the likelihood of insurance sales. Alliances with manufacturers or retailers of
consumer goods will be possible and insurance can be one of the various incentives offered.
ROLE OF IRDA IN INSURANCE SECTOR
Concept of IRDA:
IRDA is Insurance Regulatory Development Authority, that has been set up to protect the
interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance
industry and for matters connected therewith or incidental there to.
Insurance Regulatory and Development Authority To protect the interests of the
policyholders

Insurance

Regulatory

&

Development

Authority

is

regulatory

and

development authority under Government of India in order to protect the interests of the
policyholders and to regulate, promote and ensure orderly growth of the insurance
industry. It is basically a ten members' team comprising of a Chairman, five full time
members and four part-time members, all appointed by Government of India. This
organization came into being in 1999 after the bill of IRDA was passed in the Indian
parliament.
Role of IRDA in insurance sector
Regularizing the activities of the insurance companies, which were permitted to establish
their business in India; besides more number of our citizens be brought into the net of life
insurance cover. Then to create healthy competition among insurance companies of both
general and life, besides regulating them.
Duties , Power & Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA

14

Subject to the provisions of this Act and any other law for the time being in force, the
Authority shall have the duty to regulate, promote and ensure orderly growth of the
insurance business and re-insurance business.

Without prejudice to the generality of the provisions contained in sub-section (1), the
powers and functions of the Authority shall include,

issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest, settlement of insurance
claim, surrender value of policy and other terms and conditions of contracts
insurance;

specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

specifying the code of conduct for surveyors and loss assessors;

promoting efficiency in the conduct of insurance business;

promoting and regulating professional organizations connected with the insurance and
re-insurance business;

levying fees and other charges for carrying out the purposes of this Act;

calling for information

investigations

from, undertaking inspection of, conducting enquiries and

including

audit

of

the

insurers,

intermediaries,

insurance

intermediaries and other organizations connected with the insurance business;

control and regulation of the rates, advantages, terms and conditions that may be
offered by insurers in respect of general insurance business not so controlled and
regulated by the Tariff Advisory Committee under section 64U of the Insurance
Act, 1938 (4 of 1938);

specifying the form and manner in which books of account shall be maintained
and statement of accounts shall be rendered by insurers and other insurance
intermediaries;

regulating investment of funds by insurance companies;

regulating maintenance of margin of solvency;

adjudication of disputes

between insurers and intermediaries

intermediaries;

15

or insurance

supervising the functioning of the Tariff Advisory Committee;

specifying the percentage of premium income of the insurer to finance schemes for
promoting and regulating professional organizations referred to in clause (f);

specifying the percentage of life insurance business and general insurance business to
be undertaken by the insurer in the rural or social sector; and

exercising such other powers as may be prescribed

Impact of IRDA On Indian Insurance Sector

The creation of IRDA has brought revolutionary changes in the Insurance sector. In last 10
years of its establishment the insurance sector has seen tremendous growth. When IRDA
came into being; only players in the insurance industry were Life Insurance Corporation of
India (LIC) and General Insurance Corporation of India (GIC), however in last decade 23
new players have emerged in the filed of insurance. The IRDA also successfully deals
with any discrepancy in the insurance sector.
Regulators
Insurance is a federal subject in India. The primary legislation that deals with insurance
business in India is: Insurance Act, 1938, and Insurance Regulatory & Development
Authority Act, 1999.Insurance Industry has ombudsmen in 12 cities. Each ombudsman is
empowered to redress customer grievances in respect of insurance contracts on personal
lines where the insured amount is less than Rs. 20 laces, in accordance with the
Ombudsmen Scheme
.

Concept of insurance
An introduction to insurance
With the insurance sector in full bloom, today, it would not be wrong to say that in the present
market scenario, there is an insurance available for just about anything and everything.
With even a bourgeois family man opting for various insurance schemes, the question today is
not whether you have insurance or not. Instead it is, whether you need a particular insurance
or not? Insurance is no doubt an area of immense importance in regards to the financial
and monetary sectors of every individual. The whole idea behind Insurance as a financial
security tool was to design something which could secure the financial well-being of an
individual as well as his/her dependents, in case he/she undergoes an unforeseen loss.
16

These losses could be related to health, property, assets or life in general. Insurance helps
people manage monetary risks and losses related to investments, liabilities for wrong
financial actions, and risks for inability to earn income at any stage of life. Insurance generally
covers all these risks. The basic economic principle of life insurance, there fore , is the risk
suffered by a few is spread over a large no. of persons who face the same risk
Definition of Insurance
promises of reimbursement in the Case of loss; paid to people or companies so concerned
about hazards that they have made prepayments to an insurance company"
Definition of life Insurance
Life insurance can be defined as a policy that will pay a specified sum to beneficiaries up on
the death of insured"
How it works
While applying for insurance, you need to fulfill a lot of paperwork formalities. A handful of
forms need to be filled in by you while applying for insurance with a particular insurance
company, some of which are compulsory by law, while the others are optional, depending from
one company to another. By filling up all the necessary formalities and agreeing to the
terms and conditions of an insurance policy of a particular company, a contract is
developed between the both of you. An insurance policy encloses in it a copy of all the terms
and conditions of the insurance company as well as providing you with the detailed
information about the monthly premium you will be paying, also specifying the life or the term
of the insurance. The policy will also enclose in it, all the accidents or mishaps which will be
covered by the insurance company in case they occur to you or any of your dependant or
property or assets, depending upon the type of insurance you have opted for. The insurance
company agrees to pay you a sum of money to recover the losses you underwent in the
occurrence of a specific mishap, in exchange for the monthly payments made by you to
the company, also known as the premium. The severity of that event or mishap may be
varying from a car breakdown to a medical emergency, depending on the type of insurance
you have opted for "Term insurance policies can be issued for as short as a period of one year
or for fixed terms of 5,10,15 or20 years or for protection up to a certain age say 60 or 65 years"
If you underwent an incident which you know has been insured by your insurance
company, you can make a claim for all the damage done in the incident and can receive a
17

payment for d same from them. On every claim that you make, be it a huge one or a
nominal one, you will receive an amount you are insured for, excluding a fraction of the total
amount which you must pay for, in each claim. The higher is the fraction of amount which you
agree to pay for every insured incident, the lower are the premiums which you will have to pay
to the insurance company and vice versa. However, insurance companies underwrite proposals
for term insurance policies very care fully various restrictions as to
"Age at entry
Amount of assurance
Period of insurance etc"

Insurance Contract
The insurance contract is a legal document that spells out the coverage, features,
conditions and limitations of an insurance policy. It is critical that you read the
contract and ask questions if you don't understand the coverage. You don't want to pay
for the insurance and then find out that what you thought was covered isn't included.
Insurance terminology you should know:

Bound

Once the insurance has been accepted and is in place, it is called "bound". The process
of being bound is called the binding process.

Insurer

A person or company that accepts the risk of loss and compensates the insured in the event
of loss in exchange for a premium or payment. This is usually an insurance company.

Insured

The person or company transferring the risk of loss to a third party through a
contractual agreement (insurance policy). This is the person or entity who will be
compensated for loss by an insurer under the terms of the insurance contract.

Insurance Rider/ Endorsement

An attachment to an insurance policy that alters the policy's coverage or terms Insurance

Umbrella Policy

When insurance coverage is insufficient, an umbrella policy may be purchased to cover losses
above the limit of an underlying policy or policies, such as homeowners and auto insurance.
18

While it applies to losses over the dollar amount in the underlying policies, terms of
coverage are sometimes broader than those of underlying policies.
Insurable Interest
In order to insure something or someone, the insured must provide proof that the loss will
have a genuine economic impact in the event the loss occurs. Without an insurable
interest, insurers will not cover the loss. It is worth noting that for property insurance
policies, an insurable interest must exist during the underwriting process and at the time of
loss. However, unlike with property insurance, with life insurance, an insurable interest
must exist at the time of purchase only.

Nature of life insurance contract

1. Unilateral
2. Conditional
3. Contract of adhesion
4. Contract of certain amount
5. Essential general contract"

Marketing Strategies
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases. Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned. See
strategy dynamics. Marketing strategy needs to take a long term view, and tools such as
customer lifetime value models can be very powerful in helping to simulate the effects of
strategy on acquisition, revenue per customer and churn rate.
Marketing strategy involves careful and precise scanning of the internal and external
environments. Internal environmental factors include the marketing mix and marketing mix
modeling, plus performance analysis and strategic constraints. External environmental factors

19

include customer analysis, competitor analysis, target market analysis, as well as evaluation of
any elements of the technological, economic, cultural or political/legal environment likely to
impact success. A key component of marketing strategy is often to keep marketing in line with
a company's overarching mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to
attain these goals, and detail implementation. A final step in developing a marketing strategy is
to create a plan to monitor progress and a set of contingencies if problems arise in the
implementation of the plan.
Marketing Mix Modeling is often used to help determine the optimal marketing budget and
how to allocate across the marketing mix to achieve these strategic goals. Moreover, such
models can help allocate spend across a portfolio of brands and manage brands to create value.

MARKETING STRATEGY IN BHARTI AXA LIFE INSURANCE

The marketing strategy analysis, planning, implementation and management process is
described below. The strategic situation analysis considers market and competitor
analysis, market segmentation, and continuous learning about markets. Designing
marketing strategy examines customer targeting and positioning strategies, marketing
relationship strategies and planning for new products. Marketing program development
consists

of

product,

distribution,

price,

and

promotion

strategies

designed

and

implemented to meet the value requirements of targeted buyers. Strategy implementation

and management consider organizational design and marketing strategy implementation
and control"

PROCESS OF MARKET STRATIGIES

Stage 1: Strategic Situation Analysis

Marketing management uses the information provided by the situation analysis to guide the
design of a new strategy or change an existing strategy. The situation analysis is
conducted on a regular basis after the strategy is under way to evaluate strategy performance

20

and identify needed strategy changes. Market Vision, Structure, and Analysis markets need
to be defined so that buyers and competition can be analyzed. For a market to exist, there
must be people with particular needs and wants and one or more products that can satisfy
buyers needs, and buyers willing and able to purchase a product that satisfies their needs and
wants. A product-market consists of a specific product (or line of related products) that can
satisfy a set of needs and wants for the people (or organizations) willing and able to
purchase it. The term products used to indicate either a physical good or an intangible service.

Analyzing product-markets and forecasting how they will change in the future are vital to
business and marketing planning. Decisions to enter new product-markets, how to serve
existing product-markets, and when to exist in unattractive product-markets are critical
strategic choices. The objective is to identify and describe the buyers, understand their
preferences for products, estimate the size and rate of growth of the market, and find out
what companies and products are competing in the market.

1. STRATEGIC
SITUATION
ANALYSIS

4 . IMPLIMENTING
AND MANAGING
MAR KETING
S.STRATEGIC

2. DESIGNING
MARKET STRATEGIC

3. MARKETING PROGRAM
DEVOLPMENT

Stage 1: Strategic Situation Analysis

21

Marketing management uses the information provided by the situation analysis to guide the
design of a new strategy or change an existing strategy. The situation analysis is
conducted on a regular basis after the strategy is under way to evaluate strategy performance
and identify needed strategy changes. Market Vision, Structure, and Analysis markets need
to be defined so that buyers and competition can be analyzed. For a market to exist, there
must be people with particular needs and wants and one or more products that can satisfy
buyers needs, and buyers willing and able to purchase a product that satisfies their needs and
wants. A product-market consists of a specific product (or line of related products) that can
satisfy a set of needs and wants for the people (or organizations) willing and able to
purchase it. The term products used to indicate either a physical good or an intangible service.

Analyzing product-markets and forecasting how they will change in the future are vital to
business and marketing planning. Decisions to enter new product-markets, how to serve
existing product-markets, and when to exist in unattractive product-markets are critical
strategic choices. The objective is to identify and describe the buyers, understand their
preferences for products, estimate the size and rate of growth of the market, and find out
what companies and products are competing in the market.

Evaluation of competitors strategies, strengths, limitations and plans is also a key aspect of
the situation analysis. It is important to identify both existing and potential competitors.
Competitor analysis includes evaluating each key competitor. The analyses highlight the
competitions important strengths and weaknesses. A key issue is trying to figure out what each
competitor is likely to do in future.
Continuous Learning about Markets one of the major realities of achieving business
success today is the necessity of understanding markets and competition. Sensing what is
happening and is likely to occur in the future is complicated by competitive threats that
may exist beyond traditional industry boundaries. For example,other insurance company
policy

Stage 2: Designing Market-Driven Strategies

The strategic situation analysis phase of the marketing strategy process identifies
market opportunities, defines market segments, evaluates competition, and ssesses the
organizations strengths and weaknesses. Market sensing information plays a key role in

22

designing marketing strategy, which includes market targeting and positioning strategies,
building marketing relationships, and developing and introducing new products. Market
Targeting and Strategic Positioning marketing advantage is influenced
by several situational factors including industry characteristics, type of firm (e.g., size), extent
of differentiation in buyers needs, and the specific competitive advantage(s) of the company
designing the marketing strategy. The core issue is deciding how, when, and where to
compete, given a firms market and competitive environment.

The purpose of the marketing targeting strategy is to select the people (ororganizations)
that management wishes to serve in the product-market. When buyers needs and wants
vary, the market target is usually one or more segments of the product-market. Once the
segments are identified and their relative importance to the firm determined, the targeting
strategy is selected. The objective is to find the best match between the value requirements of
each segment and the organizations distinctive capabilities. The targeting decision is the focal
point of marketing strategy since targeting guides the setting of objectives and developing a
positioning strategy. The options range from targeting most of the segments to targeting
one or few segments in a product-market. The targeting strategy may be influenced by the
markets maturity , the diversity of buyers needs and preferences, the firms size
compared to competition, corporate resources and priorities, and the volume of sales
required to achieve favorable financial results.

Deciding the objectives for each market target spells out the results expected by
management. Examples of market target objectives are desired levels of sales, market
share, customer retention, profit contribution, and customer satisfaction. Marketing
objectives may also be set for the entire business unit and for specific marketing activities
such as advertising.

The marketing program positioning strategy is the combination of product, value-chain, price,
and promotion strategies a firm uses to position itself against its key competitors in meeting the
needs and wants of the market target, the strategies and tactics used to gain a favorable
position are called the marketing mix or the marketing program.

23

Marketing Relationship Strategies marketing relationship partners may include end user
customers, marketing channel members, suppliers, competitor alliances, and internal
teams. The driving force underlying these relationships is that a company may enhance
its ability to satisfy customers and cope with a rapidly changing business environment
through collaboration of the parties involved. Relationship strategies gained new
importance in the last decade as customers became more demanding and competition
became more intense. Building long-term relationships with customers and value-chain
partners offers companies a way to provide superior customer value. Although building
collaborative relationships may not always be the best course of action, this avenue for gaining
a competitive edge is increasing in popularity. Strategic partnering has become an important
strategic initiative for many well known companies and brands. Many firms outsource
the manufacturing of their products.

The trend of the 21st century is partnering rather than vertical integration.
Planning for New Plans new products are needed to replace old products because of declining
sales and profits. Strategies for developing and positioning new market entries involve
all functions of the business. Closely coordinated new-product planning is essential to
satisfy customer requirements and produce products with high quality at competitive
prices. New-product decisions include finding and evaluating ideas, selecting the most
promising for development, designing the products, developing marketing programs, use
and market testing the products, and introducing them to the market. The new-product
planning process starts by identifying gaps in customer satisfaction. The differences
between existing product attributes and those desired by customers offer opportunities for new
and improved products.

Stage 3: Market-Driven Program Development

Market targeting and positioning strategies for new and existing products guide
the choice of strategies for the marketing program components. Product, distribution,
price, and promotion strategies are combined to form the positioning strategy selected for each
market target"
The marketing program (mix) strategies implement the positioning strategy. The objective
is to achieve favorable positioning while allocating financial, human, and production
resources to markets, customers, and products as effectively and efficiently as possible.

24

Strategic Brand Management products (goods and services) often are the focal point

of

positioning strategy, particularly when companies or business adopt organizational

approaches emphasizing product or brand management. Product strategy includes:
(1) developing plans for new products,
(2) managing programs for successful products, and
(3) deciding what to do about problem products (e.g., reduce costs or improve the product).
Strategic brand management consists of building brand value (equity) and managing the
organizations portfolio for overall performance.

Price also plays an important role in positioning a product or service. Customer reaction
to alternative prices, the cost of the product, the prices of the competition and various legal and
ethical factors establish the extent of flexibility management has in setting prices. Price
strategy involves choosing the role of price in the positioning strategy, including the
desired positioning of the product or brand as well as the margins necessary to satisfy
and motivate distribution channel participants. Price may be used as an active (visible)
component of marketing strategy, or, instead, marketing emphasis may be on other
marketing mix components (e.g., product quality). Advertising, sales promotion, the sales
force, direct marketing, and public
relations help the organization to communicate with its customers, value-chain partners,
the public, and other target audiences. These activities make up the promotion strategy,
which performs an essential role in communicating the positioning strategy to buyers
and other relevant influences. Promotion informs, reminds, and persuades buyers and others
who influence the purchasing process.

Stage 4: Implementing and Managing Market-Driven Strategy

Selecting customers to target and the positioning strategy for each target moves
marketing strategy development to the action stage. This stage considers designing the
marketing organization and implementing and managing the strategy. Designing Effective
Market-Driven Organizations an effective organization design matches people and work
responsibility in a way that is best for accomplishing the firms marketing strategy.
Deciding how to assemble people into organizational units and assign responsibility to the
various mix components that make up the marketing strategy are important influences on
performance

25

Organizational structures and processes must be matched to the business and marketing
strategies that are developed and implemented. Organizational design needs to be
evaluated on a regular basis to assess its adequacy and to identify
necessary changes.
Strategy Implementation and Control marketing strategy implementation and control
consist of: (1) preparing the marketing plan and budget; (2) implementing the plan; and (3)
using the plan in managing and controlling the strategy on an ongoing basis. The
marketing plan includes details concerning targeting, positioning, and marketing mix
activities. The plan spells out what is going to happen over the planning period, who is
responsible, how much it will cost, and the expected results (e.g., sales forecasts). The
marketing plan includes action guidelines for the activities to be implemented, who does what,
the dates and location of implementation, and how
implementation will be accomplished. Several factors contribute to implementation
effectiveness including the skills and commitment of the people involved, organizational
design, incentives, and the effectiveness of communication within the organization and
externally. Marketing strategy is an ongoing process of making decisions, implementing
them, and tracking their effectiveness over time. In terms of its time requirements, strategic
evaluation is far more demanding than planning. Evaluation and control are concerned
with tracking performance and, when necessary, altering plans to keep performance on
track. Evaluation also includes looking for new opportunities and potential threats in the
future. It is the concerning link in the strategic marketing planning process. By serving
as both the last stage and the first stage (evaluation before taking action) in the
planning process, strategic evaluation assures that strategy is an ongoing activity.

TYPES OF MARKETING STRATEGIES

Every marketing strategy is unique, but can be reduced into a generic marketing
strategy. There are a number of ways of categorizing these generic strategies. A brief
description of the most common categorizing schemes is presented below:1. Strategies Based On Market Dominance
In this scheme, firms are classified based on their market Share or dominance of an
industry. Typically there are three types of market dominance strategies:
Leader
Challenger

26

 Follower"
2. Porter Generic Strategies
strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers
to the market penetration while strategic strength refers to the firms sustainable competitive
advantage
Cost leadership
Product differentiation
Market segmentation"
3. Innovation Strategies
This deals with the firm's rate of the new product development and business model
innovation. It asks whether the company is on the cutting edge of technology and
business innovation. There are three types:
Pioneers
Close followers
Late followers"
4. Growth Strategies
In this scheme we ask the question, How should the firm grow?
There are a number of different ways of answering that question, but the most
common
gives four answers:
Horizontal integration
Vertical integration
Diversification
Intensification"
ROLE OF MARKETING STRATEGIES IN LIFE INSURANCE

As weve seen the key objective of an organizations marketing efforts is to develop

satisfying

relationships

with customers

that benefit both the customer

and the

organization. These efforts lead marketing to serve an important role within most
organizations and within society.

27

At the organizational level, marketing is a vital business function that is necessary in nearly
all industries whether the organization operates as a for-profit or as a not-for-profit. For
the for-profit organization, marketing is responsible for most tasks that bring revenue
and, hopefully, profits to an organization. For the not-for-profit organization, marketing
is responsible for attracting customers needed to support the not-for-profits mission, such
as raising donations or supporting a cause. For both types of organizations, it is unlikely they
can survive without a strong marketing effort.
Marketing is also the organizational business area that interacts most frequently with the
public and, consequently, what the public knows about an organization is
determined by their interactions with marketers. For example, customers may believe a
company is dynamic and creative based on its advertising message.
At a broader level marketing offers significant benefits to society. These benefits include:

Developing products that satisfy needs, including products that enhance societys
quality of life

Creating a competitive environment that helps lower product prices

Developing product distribution systems that offer access to products to a large

number of customers and many geographic regions

Building demand for products that require organizations to expand their labor force

Offering techniques that have the ability to convey messages that change societal
behavior in a positive way (e.g., anti-smoking advertising)

A very common way to promote a Life insurance company through Life

Insurance Marketing is to make the name of the company familiar to others by
means

of television commercials, handling out pamphlets, hanging banners in

populated areas and by providing exciting offers.

Telephone marketing is another way of Life Insurance Marketing. One can see
the telephone companies send messages about various offers and they make phone
calls. Web Insurance Marketing is another good strategy to promote insurance
policies. The pop ups that one sees while using Internet are actually a very
effective way of sending messages across the potential insurance customers.

One should listen to the existing Life Insurance Policy Holders as well as the

28

potential Life insurance policy holders and listen to what people who actually
matters have to say. One common problem that the insured persons face is that the
insurance companies do not inform its clients about the hike in the premium
rates.

These things should be kept in mind. Not only that, a client should be informed
about everything related to his policy and the Life insurance company should keep
the transparency as much as possible.

a high recognition for the Life insurance Company. Eminent workers join local
community institutions, such as Chamber of Commerce, and by signing up there one
can help out various projects that take place. These kinds of activities and social
works on behalf of the Life insurance company helps the company to get free
publicity as their names are published in news paper and in media also. Doing
charity works also helps the Life insurance companies to come across various
people who act as volunteers and can act as their potential Life insurance
clients. People also like to deal with like minded people and companies and this
is how many deals are made.

A Life Insurance Company should not charge different Life insurance client
different charges for the same policy. This kind of policy gives the Life insurance
policy holders the feeling that they are being treated unfairly and also that the Life
insurance companies are only looking for profits and not the betterment of
customer welfare.

When a Life insurance claim is filed, especially for a very big hefty amount, the Life
insurance Company should help out the policy holder in processing out the
paperwork. One should not let bureaucracy enter and make it so difficult for the one
making the claim so that he gives his claim .This has always been a common tactic on
the insurance company's part to avoid paying claims claimed by the policy
holder. This though makes a short term profit for the company but it hurts in
the long run as the reputation of the company is hampered severely.

People in this Life insurance industry should always try to keep in constant contact
with the existing customers as well. The competition in the insurance market is
so

29

fierce today that no company wants to loose out on a customer to another company.
Clients who are not contacted for a longer period of time normally fail to
remain

loyal to the insurance company and look for a different Life insurance company.
The company can keep the records of the client's birthday and days like anniversary and
sent him or her small tokens of love or loyalty at a regular basis. If the company can
afford a little more it can send dinner coupons to the Life insurance policy
holder. These things play a major role and can be considered as an effective Life
Insurance Marketing strategy.

May be the most crucial thing in insurance marketing is to always speak about unity and
honesty while dealing with a business. A Life Insurance Holder can find so
many frauds in various life insurance companies today, that life insurance customers are
going for products and services which are trustworthy to them. Feeling safe is
about insurances and other things are most important as far as the insurance holder

is concerned. So, if a company remains loyal to its customers it will itself do

Life Insurance Marketing for itself. So, only by remaining loyal to its customers
the company can do a world of good to its reputation and this would in itself bring more
potential Life Insurance Holders to the company, because the customers prefer
safety more than anything else these days.

IMPORTANCE OF MARKETING STRATEGIES

1. Streamlines Product Development
A marketing strategy helps you create products and services with the best chances for
making a profit. This is because marketing strategy starts with marketplace research,
taking into consideration your optimal target customer, what your competition is doing
and what trends might be on the horizon. Using this information, you determine the
benefit customers and clients want, what theyre willing to pay and how you can
differentiate your product or service from the competition.
2. Helps Determine Optimal Prices

30

Part of a marketing strategy is setting the right price for your product or service based
on what you learned in your market research. If you learned that customers want a highend product in your category, your pricing strategy might require you to sell at prices
that create a high-end perceived value. If your target customer is bargain conscious and
is willing to accept fewer bells and whistles on your product in exchange for paying
less, your pricing strategy will require you to sell at or below the competitions price.
3. Establishes Effective Distribution
Once you know what product features youll offer, who your target customer is and
what your price points will be, you can select where you want to sell to maximize your
marketing effectiveness. Younger customers will be more likely to shop using a
smartphone or on a website, paying with PayPal or a credit card. Older customers might
prefer to shop at retail outlets. If your market research shows you need to be in retail
stores but you dont have a sales force, you can use a wholesaler or distributor.
4. Assists with Marketing Communications
Your market research will help you create your brand, or image you want to establish
about your business. Without marketplace research and a strategic marketing plan, you
might respond to solicitations from advertising salespeople on an individual, reactionary
basis, sending messages that dont fit in with the brand identity youve created based on
your product development efforts. A marketing strategy lets you determine if a
particular magazine, radio station or website fits into your selling plans.
5. Organizational Impact
When you have a marketing strategy, your departments can better work with each other,
because they are all working from the same plan. For example, your advertising people
will talk with your product development people to determine what message you should
send about your benefit. Your sales people will talk with the people responsible for
managing your image to determine if they can offer discounts, coupons or rebates
without damaging your brand.
6. The Marketing Plan

31

Promotional and marketing strategies are often first brainstormed and written as part of
an organization's marketing plan. If your small business doesn't have a marketing plan,
you should seriously consider developing one. Most marketing plans include the current
or expected strategies you have for your products, the price points of those products,
how you intend to distribute the products, and your advertising and marketing tools. A
marketing plan is also important for developing a promotional strategy as it helps your
business identify its target markets and to set measurable goals. It is vital to the success
of the organization that you implement a marketing plan that aims for growth and
positive change in the bottom line.
7. Understanding Your Clients
Promotional and marketing strategies can also assist your business in understanding and
connecting with clients and customers. If your marketing plan is loosely structured, you
might not have much success at targeting products to the "right" demographics. Having
a solid and well-thought-out marketing plan can help you identify gaps in the
marketplace and provide feasible solutions for your clients. If you operate an ice cream
business in a neighborhood where no other ice cream shops exist, it might be easier to
attract clients than in a town where there are other ice cream options. In this case,
understanding that your clients want sprinkles and waffle cones might help you sell
more ice cream and keep your customers coming back for more.

OBJECTIVE OF STUDY
1. To find out what kind of policies sale in the market.
2. To find out what kind of the strategies mainly using in the local market.

32

3. To find out Factor which effecting the buying behavior of customer or marketing
strategies .
4. To find out the effect of brand on innovation strategies.

33

REVIEW OF LITRATURE AND RESEARCH STUDY

1. Hogan, John D (2001). Financial Services Reform: The Gramm-Leach-Bliley Act and
its implications for insurance, Journal of Financial Service Professionals, January
2001.
In this paper, the author contends that the impact of the GLB Act on the insurance industry is
unclear. It had been widely assumed that the banking industry would
quickly expand into non-banking activities, as synergies could be expected from the
large bank customer information base and frequent contacts with customers. However,
this quick response has not taken place, partly because of perception of risk in the insurance
business. The author also cites a research study by The Federal Reserve Bank of Atlanta that
suggests that bank holding companies will add insurance products to their lines of business for
sound reasons such as: 1) small increment costs involved, 2) the presence of existing
customer relationships, 3) revenue diversification, 4) absence of interest rate risk in insurance
compared with loans and 5) banks web-based marketing capability.

2.McDaniel, David (1995): Agents worst nightmare: Banks are gaining the edge to sell
insurance in a big way. Bests Review [Property/Casualty], The article explains that
insurance agents are afraid of banks cutting into their business as they have in Europe
where banks are far more efficient than agents. The article lays out how to make the
proposed legislation ineffective, by warning of unsubstantiated tie-ins and bank coercion,
proposing 10-day waiting periods, state legislation, and tough fire ABSTRACT . This
paper describes Nigerians attitudes towards the insurance institution.
The attitudes, most often negative, are mirrored through low patronage of insurance
services. It discusses such social-cultural factors that account for these attitudes and what
role marketing strategies can play to change such negative tide. Drawing from theoretical
foundation, an empirical survey was conducted among 392 members of the public
insuring and non-insuringto gauge their awareness level and general attitudes towards

34

insurance companies and their operations. The findings present different demographical
factors and their attitudes towards insurance companies and their services. It is expected
that findings from such survey would constitute vital input for insurers in designing
marketing strategies that would further stimulate and boost patronage and perception of
insurance services. Key words: insurance, attitude, Nigeria, demography, marketing,
strategies African Journal of Accounting, Economics, Finance and Banking Research
Tajudeen Olalekan Yusuf, Ayantunji Gbadamosi, & Dallah Hamadu The demand for life
insurance in a country may be affected by the unique culture of the country to the extent that it
affects the populations risk aversion (Douglas and Wildavski, 1982). Henderson and
Milhouse (1987) argue that an individuals religion can provide an insight into the
individuals behaviour; and understanding religion is an important component of
understanding a nations unique culture. Also, Zelizer (1979) notes that religion historically
has provided a strong source of cultural opposition to life insurance as many religious
people believe that a reliance on life insurance results from a distrust of Gods protecting
care. Until the nineteenth

century, European

nations

condemned

and

banned

life

insurance on religious grounds. Zelizer also states that religious antagonism to life
insurance still remains in several Islamic countries. In similar vein,

Wasaw and Hill (1986)

tested the effect of Islam on life insurance consumption using an international data set. The
results of their study indicate that, ceteris paribus, consumers in Islamic nations
purchase less life insurance than those in non-Islamic nations. This ecomes more
evident in the fact that there is comparatively very low ratio of Muslims in developed
countries with the majority residing in medium to low human development countries.
From

the

thirty-five

low

human

development countries as defined by the Human

Development Report (2004), seventeen have a majority Muslim population and a further five
have a Muslim population of over 20 percent. Muslims around the world are commonly
faced with low-income levels, and African Journal of Accounting, Economics, Finance
and Banking Research Tajudeen Olalekan Yusuf, Ayantunji Gbadamosi, & Dallah Hamadu
Berman, Peter. "Rethinking Health Care Systems: Private Health Care Provision in India."
Harvard School of Public Health Working Paper, November 1996. Business Today. "The
Monitory Group Study on Insurance I and II." March 22 and April 7, 2000.

35

Mitra, Sumit and Nayak, Shilpa. "Coming to Life." India Today, May 7, 2001. Asian
Economies, Vol. 27(2), June 1997, 5-31. U.S. Department of State FY 2001 Country
Commercial Guide: India. Commercial Guide for India was prepared by U.S. Embassy
New Delhi and released by the Bureau of Economic and Business in July 2000 for Fiscal
Year 2001.

Dr. Zultowski discussing differences between the market segments and offering ideas on how
to effectively market to them. Lastly, a scripted presentation by Dr. Zultowski, who presented
the research findings at the 2014 Life & Annuity Symposium, is provided to help develop
presentations of the research and marketing ideas from the study.
While the results of the research initiative are in English, the whitepaper and scripted
presentation will soon be available in Standard Chinese.
Research Projects Life Insurance
The Product Development Section and Committee on Life Insurance Research are pleased to
make available a new research report that explains the concept and construction of marketconsistent embedded value (MCEV), and explores the methodology by which one might
calculate MCEV, or the market-consistent value of new business (MCVNB), in the pricing
process. Authored by Novian Junus, David Wang and Zohair Motiwalla of Milliman Inc., the
report includes discussions of profit/risk measures and also compares through case studies how
some U.S. products would fare under the MCVNB/risk-neutral paradigm, in contrast to the
standard real-world pricing approach

Scope of study
I survey In a village named

Rrasulpur to know about the perception of people and find out

what kinds of product they like. in this survey I meet with different type of age group of
people, gender , different type of income level of people. Every people are different from each
other but they give some similar answer. By this survey I also provide a feedback to our Bharti
AXA.

36

Limitation of study
a. Data which I collect is very small thats why we could reach at any perfect result
b. Mostly people are unaware about Bharti AXA life insurance policies and
company.
c. People are not interested to fill the questionnaire and not read questions
carefully.
d. There is lack of resource Resources .
DATA COLLECTION
I have collect the data both primary and secondary.
Primary Data-:
It include the data which collect through survey report and questionnaire. The
primary data is collected by the getting the questionnaire filled from the different type of
people. I have use of questionnaire for finding the perception of consumer, strategies of
insurance company, value of brand.
The questionnaire consist of 15 question which filled by the 15 different persons. Each
questionnaire has various multiple options. Depending upon their response I find the result.
Secondary data-:
It includes the data from internet hyperlinks and books, journals and news paper.
Mainly I have collected data from internet and books. The main aim to collect the secondary
data is to understand the meaning of market strategies, process, importance.

Sample size-:
Sample size was taken 15 to understand the survey.

37

Analysis of Collected Data

1. In which sector would you like to invest their surplus money ?

(a) Insurance

(b)share

(d) private finance

(e) other

(c) mutual funds

Collected data-:
Type

Insurance

Share

Mutual fu.

Private

Other

total

No. of person
Percentage(%)

2
13%

2
13%

1
7%

finance
5
34%

5
33%

15
100%

Pie chart -:

Result-:
38

From above pie chart, there are 34% persons are interested in private finance, 13%
persons are interested in share market, 13% persons are interested in insurance, 7% persons are
interested in mutual funds, 33% persons are interested in other method of investment for
investing there surplus income.

2. Is any need of insurance in our life?

a) Yes
b) no
Collected Data-:
Options
Yes
No
Total

No. of persons
14
1
15

Pie chart

Result-:

39

Percentage (%)
93%
7%
100%

From above pie chat, 93% persons are says that there is a need of insurance in our
life and 7% persons are says that there is no need of insurance in our life.

3. In which sector would you like to invest in term of policy?

a) public sector

b) private sector

c)both

Collect data-:
Option
No of persons
Percentage(%)

Public
7
47%

Private
3
20%

Pie Chat-:

40

Both
5
33%

total
15
100%

Result-:
From above pie chat we can say that 47% persons are want to invest in public sector,
20% persons are want to invest in private sector, 33% persons are want to invest in both sector.

4. What kind of plan you like of Bharti AXA life insurance?

a) Endowment

b) term plan

c) convertible

d) health

Collected data-:
Option

Endowment

Term plan

Convertible

41

Health

total

No. of person
Percentage

plan
8
53%

Plan
0
0%

4
27%

Plan
3
20%

15
100%

(%)

Pie chart-:

Result -:
According to above pie chart, 53% people are want to buy a indowment plan,27%are
want to buy term plan,20%want to buy a health plan.

5. What kind of endowment plan of BALI you like?

a) Child plan

b) retirement plan

42

c) whole life insurance

Option

Child plan

Retirement plan

Whole life insurance

Total

No. of person

15

Percentage

29%

50%

21%

100%

(%)

Pie Chart-:

Result-:
According to above pie chat , 50% persons are interested in the in retirerment plan,
29% persons are interested in the child plan, 21% persons are interested in whole life
insurance.

43

6. Is brand name of BALI viable while taking a insurance policy ?

a)agree

b)most agree

c) disagree

d)most disagree

Collected data-:
Option

Agree

Most Agree

Disagree

Most disagree

Total

No. of persons

10

15

Percentage (%)

27%

67%

6%

0%

100%

Pie Chat-:

Result -:
44

From above pie chat we can say that 67%persons are most agree with statement brand
name of BALI is viable while taking a insurance policy27%are only agree and 6% are
disagree.

7. Which source increase your awareness about Bharti AXA life

insurance pvt. Ltd?
Internet

b) news paper

c)advertisement

d) journals

e) all

Collected Data
Option
No. of person
Percentage (%)

Internet
6
40%

News paper
4
27%

Advertisement
3
20%

Pie chart-:

45

Journals
0
0%

All
2
12%

Total
15
100%

Result-:
According to above pie chart, 40% people are gets knowledge about the BALI from
internet, 27% from news paper,20% from advertisement through other channel, 13% people are
gets knowledge from all and above.

8. Which factor effect more while taking a insurance policy of BALI?

a) Price factor

b) permotion factor

c) govt . factor

d) other factor

Collected Data-:

Option
No. of people
Percentage

Price factor

Permotion

Govt. factor

Other factor

Total

6
40%

factor
0
0%

5
33%

4
27%

15
100%

(%)

Pie Chart-:

46

Result -:
From above pie chart we can say that, 40% people not buy a policy from BALI due to
price of policies, 33% people not buy a policy from BALI due to govt. , 27 % people not buy a
policy from BALI due to other type of factor.

9. Whether communication skills of agent which work in BALI convinced

you buy a policy ?
a) Most effect

b) little effect

c) no effect

Collected Data-:
Option
No. of person
Percentage (%)

Most effect
12
80%

Little effect
2
13%

Pie Chart -:

47

No effect
1
7%

Total
15
100%

Result -:
From above pie chart,communication skills of agent helps to convience the customers. 80%
people are in favour and 7% are not in favour.

10.Is physical layout of Bharti axa life insurance branch has give positive
effect on you ?
a) Yes

b) no

Collect Data -:
Option

Yes

No
48

Total

No. of persons
Percentage (%)

10
67%

5
33%

15
100%

Pie Chart-:

Result -:
According to above pie chart 67% people are says that, physical layout of branch
has give positive effect and 33% are not in favour.

11. Dealing in BALI is good or bad in terms and condition of their

policy ?

49

a) Good

c ) excellent

b) very good

d) bad

e) not known

Collected Data -:
Option

Good

Very good

Excellent

Bad

No known

No.of person

Percentage (%)

40

33

13

Pie chart-:

Result -:
From above pie chart , 40% people are says that the policy of BALI are good in term and
condition and 33%says it is very good, 7% persons give vote for exellent, 7% says it is bad.
The term and condition are term of premium, legal work , claim, free locking period.

50

12.Are you satisfy with their insurance policy ?

a) Fully satisfy

b) not satisfy

Collected Data -:

Option
No. of person
Percentage(%)

Yes
11
73%

Pie Chart-:

Result-:

51

No
4
27%

Total
15
100%

According to above pie chart 73% people are satisfy with their policy and 27% are
not satisfy with their policy due fraud,unclaim or agents which provide wrong information.

13. Whether insurance protect you most as compare to other investment

ways?
a) Agree

b) most agree

c) disagree

d) most disagree

Collected Data-:
Option
No. of persons
Percentage(%)

Agree
3
20%

Disagree
1
7%

Most agree
11
73%

Pie Chart-:

52

Most disagree
0
0%

Total
15
100%

Result -:
According to above pie chart 73%persons are most agree with statement insurance
protect you most as compare to other investment ways, 20% are only agree, 7 % are disagree
and no person would be most disagree from this statement.

14.Service of Bharti AXA life insurance is

a) Good
e) not known

b) very good

c) excellent

d) bad

Collected Data-:
Option
No. of person
Percentage(%)

Good
1
7%

Very good
2
13%

Excellent
2
13%

Pie Chart-:

53

Bad
1
7%

Not known
9
60%

Total
15
100%

Result-:
From above pie chart , 60% people are unaware about the Bharti AXA
policies, 13% are say excellent, 13%give vote to very good and 7% says bad
service.

15.Are you want to perchage a policy from Bharti axa life insurance ?
a) yes

b) no

collected Data-:
Options
No. of person
Percentage

Yes
13

No
2

54

Total
15
100%

Pie chart-:

Result -:
According to above pie chart ,87%persons are want to buy a policy and 13% are not
want to buy a policy.

Finding
1. Finding about perception of consumer

55

a) Mostly person are wants their investment their surplus money in other ways as compare
to insurance.
b) 20 to 25 years age old persons are interested in the term insurance but they want some
maturity benefit.
c) 30 to 50 years old persons are like to retirement plan.
d) Mostly person are like saving plan and most of person are says that, insurance protect
more as compare to other investment method.
e) Mostly people want a high rate of return plan for our child for his whole life.

Strategies used in local insurance sector

a) In our local market LIC is a market leader and other companies are follow them.LIC is
a market because mostly people are want to invest in govt. sector.
b) Product Differentiate. For ex. AXA retirement solution are totally different from LIC
or other insurance companies.
c) Growth strategies

2. Factors which affecting buying behavior of customer

a. Most of the price are create problem because if we launch a low price policy for
high income levels, people they never perchage it and if we launch high price
policy in low income levels, people again not buy a policy
b. Govt. factor also a main factor which effect the market strategies
c. Other factor like demographic, phylogical factors, political etc. is also affecting
the market policies.

3. Affect of brand
Brand is create a unique image in the market. Person are want to perchage a
policy from a well establish branded company which means LIC.

56

Suggestion to Bharti AXA

1. There is need of awareness in the market so for this purpose they start exhibition in the
rural area as well as urban area.
2. LIC is a market leader. So there is need of innovative strategies.
3. To remove the price problem there is need of the new micro product strategies.
4. Make policy according to people perception.
5. Increase our promotional scheme and make new promotional strategies .

57

Conclusion
Bharti AXA Life is a life Insurance player that was started in 2006. It brings together strong
financial expertise of the Paris-headquartered AXA Group and Bharti Enterprises - one of
India's leading business groups with interests in telecom, agricultural business, financial
services, and retail. The joint venture has a 74% stake from Bharti and 26% stake from AXA
.The Company launched national operations in December 2006.
The marketing strategy analysis, planning, implementation and management process is
described below. The strategic situation analysis considers market and competitor
analysis, market segmentation, and continuous learning about markets. Designing
marketing strategy examines customer targeting and positioning strategies, marketing
relationship strategies and planning for new products. Marketing program development
consists

of

product,

distribution,

price,

and

promotion

strategies

designed

and

implemented to meet the value requirements of targeted buyers. Strategy implementation

58

and management consider organizational design and marketing strategy implementation

and control"
Most of the people are unaware about the policies. But those person buy the policy they are
fully satisfy .From the above research the result is Bharti axa need to devolpe the new plan
which is less costly. Need of strategies are,

Innovation strategies

Promotion of AXA

Product Differentiate

Follower

Growth strategies

Bibliography
Primary Data-:
I.

Questionnaire
59

Secondary Data-:
1. Internet links

60