bus research icici swati
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SALES MANAGEMENT PROJECTON
ALLOCATION OF SALES QUOTA
IN NCR REGION OF ICICIPRUDENTIAL
SUBMITTED TO: - SUBMITTED BY
MR AJAY NARULA BHAWNASHARMA
NITIN JAGETIA
RAKESH CHOPRA
RISHABH BHATIA
RITESH DAYAL
SWATI
NANDA
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CONTENTS
ACKNOWLEDGEMENT
SYNOPSIS
INSURANCE INDUSTRY IN INDIACOMPANYS HISTORY
VISION & STRATEGY
SITUATIONAL ANALYSIS- INTERNAL
o SWOT ANALYSIS
SITUATIONAL ANALYSIS- EXTERNAL
o CONSUMER ANALYSIS
o COMPETITORS ANALYSIS
SALES QUOTA METHODS USED BY THE COMPANY
MOST POPULAR METHODS OF SALES QUOTA
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ACKNOWLEDGEMENT We are interdependent on each other for accomplishment of our goals. We doacknowledge that the study is an outcome of constructive support and cooperation of many persons towards we feel indebted.The goal was fixed moves were calculated and we moved with full enthusiasm, vigor andkeen interest. There were times when it proved to be an uphill task, the goal seeming
beyond our research but as work progressed our determination and will power grewstronger and the completion of this work was further confirmed by getting the exemplaryguidance and valuables support of the faculty.
We take immense pleasure in expressing our deep sense of gratitude to the companyrepresentative Mr. RAVI CHOPRA, Financial Service Manager (ICICI PRUDENTIALLIFE INSURANCE) Mr NITIN CHAUHAN, Financial Service Manager (ICICIPRUDENTIAL LIFE INSURANCE) for their able guidance and valuable time,cooperation and inspiration without which this project would not have been possible.
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SYNOPSIS
GROUP NO. F1103
TITLE: Study of allocation of Sales Quota for ICICI Prudential
OBJECTIVE : To understand the following:
1) Different practices adopted in the Industry with respect to Sales Quota.2) To develop the ability to analyze various problems related to Sales Quota and to
be able to provide solutions for the same.
INTRODUCTION:Security has been one of the primary concern for humans for years. Today people are
becoming more and more educated. With growing literacy rate what has been growing isthe need to get insured from unseen problems. The insurance industry has thus realizedthe existing potential in the market and more and more companies are offeringfascinating insurance products to the consumers.
Over the past five years, the life insurance industry has witnessed a seachange in terms of product offerings, service, risk management, fund options and others.Customers are now much more aware about life insurance and its benefits. What is more,in just a short period of time, life insurance has also become amongst the most excitingsectors to work in or partner with, demonstrating the immense job opportunity it hascreated.In fact, today private sector insurance companies have increased their share in thetotal market to nearly 34 per cent, which is much higher than most industry estimates.
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ICICI Prudential Life Insurance Company Limited continues to hold on toits top rank ever since it started operations. ICICI Prudential Life is the first life insurer inthe country (including the Life Insurance Corporation of India) to declare the embeddedvalue-the present value of future profits embedded in the policies sold.. Today thecompany has one of the widest distribution networks with 153 branches in 110 locationsspread across the country. On service, the focus is to create a variety of touch points inorder to enable customers to interact easily with the company.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services groupheadquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA).ICICI Prudential Life has a range of products that meet the needs of every segment, in
both individual and group policies. There are 13 policies to cater to individuals, whichcan be enhanced with six riders so as to create a number of combinations.
The company also offers three group policies : Group Term,Group Gratuity, GroupSuperannuation.
ICICI Prudential Life operates in 23 locations, some of which have multiple branches. Policies are issued from the head office in Mumbai.
ICICI Prudential's capital stands at Rs.29.32 billion.ICICI Prudential is also the only private life insurer in India to receive a NationalInsurer Financial Strength rating of AAA (Ind) from Fitch ratings.It has a strong presence across India with over 735 branches and over 243,000advisors.
IMPORTANCE OF THE PROJECT:To understand the effectiveness of Sales Quota in the following:
1) In monitoring and measuring performance of the Sales person.2) Motivating Sales person.3) Achieving Desired Sales.
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VISION
Understanding the needs of customers and offering them superior products and
service.
Leveraging technology to service customers quickly, efficiently and conveniently.
Developing and implementing superior risk management and investment strategies to
offer sustainable and stable returns to policyholders.
Providing an enabling environment to foster growth and learning for our employees.
And above all, building transparency in all dealings.
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VALUES
Every member of the ICICI Prudential team is committed to 5 core values:
a) Integrity
b) Customer First
c) Boundary less
d) Ownership
e) Passion
PROMOTERS
ICICI Bank :-
ICICI was founded by the World Bank, Government of India and representatives of the
private sector in 1955 to encourage and assist industrial development and investment in India.
ICICI Bank is Indias 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 offers a wide range of
banking products and financial services to corporate and retail customers through a variety of
delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital, asset management and
information technology. ICICI Bank posted a net profit of Rs.1637
Crore for the year ended March 31, 2004. ICICI Banks equity shares are listed in India on
stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and
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the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).The Various segment of ICICI are .
Prudential PLC
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,
the US and Asia, provides retail financial services products and services to more than 16
million customers, policyholder and unit holders worldwide. As of June 30, 2004, the
company had over US$300 billion in funds under management. Prudential has brought to
market an integrated range of financial services products that now includes life assurance,
pensions,mutual funds, banking, investment management and general insurance. In Asia,
Prudential is the leading European life insurance company with a vast network of 24 life and
mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
The company has six Bancassurance tie-ups , having agreements with 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
corporates for the distribution of rural policies and organizations like Dhan for distribution of
Salaam Zindagi, a policy for the socially and economically underprivileged sections of
society.
ICICI Prudential has recruited and trained about 2,14,000 insurance advisors to interface
with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to
provide superior quality of service to customers.
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Identify direct competitors NAME OF THE PLAYER MARKET SHARE (%)(2003)
Name of the Player Market share (%)
LIFE INSURANCE CORPORATION OF INDIA 82.3
ICICI PRUDENTIAL 5.63
BIRLA SUN LIFE 2.56
BAJAJ ALLIANZ 2.03
SBI LIFE INSURANCE 1.80
HDFC STANDARD 1.36
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TATA AIG 1.29
MAX NEW YARK 0.90
AVIVA 0.79
OM KOTAK MAHINDRA 0.51
ING VYSYA 0.37
MET LIFE 0.21 ICICI still leads the private sector pack. With a portfolio of over 6.5 million policies, India's
biggest private sector life insurer has not merely held on to its share but grown it; at the end
of January 2008, the firm commanded 29 per cent of the share owned by private sector
players. Quite some way below was Bajaj Allianz with 21 per cent, while State Bank of India
came in third with 10 per cent.
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41 Per Cent Growth in Life Insurance Industry in 2006 Life insurance sector grew by 41 per cent in 2005-06 due to better performance of
country's largest life insurer, LIC, and private players like Bajaj Allianz and ICICIPrudential. The 15 life insurance companies together collected Rs 35,898 crore in thefiscal ended March this year, compared to Rs 25,343 crore in the previous fiscal,according to data compiled by regulator IRDA. Life Insurance Corporation's premiumincome rose more than 28 per cent to Rs 25,645 crore after it sold 3.16 crorepolicies as against Rs 19,972 crore collected a year ago. However, LIC's marketshare dipped by 6.63 per cent to 71.44 per cent from 78.07 per cent in the year agoperiod due to stiff competition and aggressive marketing of private life insurers. The14 private players were able to steadily increase their market share from 21.93 percent to 28.56 per cent in a year's time by collecting Rs 10,252 crore during theperiod under review.
Courtesy: The Economic Times, June 02, 2006
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SITUATION ANALYSISWhile working on the project we can understand different situations and problems which we
need to analyze. Further decisions will be taken on the basis of the situation at hand.
Components of a Situation Analysis1. Corporate level situation analysis
-Corporate mission and objectives- Resources and competencies- Environmental problems and opportunities- Demographic- Social-cultural- Economic- Technological- Legal and regulatory- Competition- Portfolio analysis
2. Product level situation analysisMarket analysis- Describe the product-market structure- Find out who buys- Assess why buyers buy- Determine how buyers make choices- Determine bases for market segmentation- Identify potential target markets- Competitive analysis-Identify direct competitors- Assess likelihood of new competitors- Determine stage in product life cycle- Assess pioneer advantages- Assess intensity of competition- Determine the competitors advantages and
disadvantages- Market measurement- Estimate market potential- Determine relative potential of each geographic area
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Competitive Situation
This subtopic of the situation analysis section provides information about key competitors:
description of key competitors and their market positioning size of key competitors in
units/dollars market shares of key competitors sales trends of key competitors strengths and
weaknesses of key competitors compared to your company's product or services perceived
marketing strategies of key competitors and their probable impact on your company.
Target Buyer or End User Situation
This subsection of the situation analysis section provides actionable information on selling to
target buyers and stimulating purchases or usage by the ultimate end users. Key questions
answered in this subsection include: description of target buyers or end users in demographic,
psychographic, and lifestyle terms target buyer/end user wants, needs, attitudes, and
perceptions of category products and services where target buyers/end users are located and
how to reach them which segments of the total market or category are growing or declining
and why.
Product Situation
This subtopic of the situation analysis section provides company information on: sales profit
product trends cost-of-goods history (five years) marketing spending history (five years of
advertising, promotion, PR spending) distribution trends and developments description of the
sales organization (e.g., company or brokers).
Distribution Situation
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This subtopic of the situation analysis section describes each distribution channel and its
relative importance to the company in terms of: percent of company sales company volume
cost to distribute products and services growth potential competitive status.
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STRENGTH
1 Brand Name of ICICI :-The name of the ICICI is known in all 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 mainly due to the ICICI Bank. So ICICI
Prudential, do not have the crises of the brand name
2 STRONG FINANCIAL BACKING : - the ICICI prudential had a strong
financial backing from their promoter, (ICICI BANK and Prudential), which help
the company to build trust on the mind of the people.
3 STRONG SALES FORCE : - The Company has a very strong force of
good marketing brain, which gives an edge over the other competitor especially
nationalized insurance company like LIC. And secondly it has a very good
distribution channel which helps the company to get more clients from these
reliable sources. These channel include
Allied Banks like
ICICI Bank
Federal Bank
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South Indian Bank
Bank of India
Lord Krishna Bank
Some co-operative banks
WEAKNESS
Lack of Information about the product :-Most of the product of the ICICI
Prudential are known by the people, this is because of lack of information about the product and
bad marketing strategies by the company mainly in small cities
FOCUSING MAINLY ON THE URBAN SECTOR:- ICICI prudential
mainly focus on the urban sector of the country, where the competition is very tuft and are
not concentrating on the other sector of the country mainly in the rural sector where there.
Most of the Plans are too complicated:- ICICI Prudential insurance plan are toocomplex to understand for a layout person, and this makes most of the people to avoid this
plan because they feel difficulties to understand. The same is in the case of Mutual Funds.
OPPORTUNITIES
1 A large Part of cities are uncovered: - A large part of the cities are
uncovered by ICICI Prudential life insurance where they do not have any
branches.
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2 Some Top Nationalized banks should be made Allies: - There are large
parts of the cities were Nationalized banks have large number of clients in compare to
private banks, this is mainly because they are operating for such a
long time and there is a good opportunities to converted those customer into ICICI
prudential customer, By making them allies.
There is a good opportunities to increase the Advisors base : - when we
compare the ratio of Advisors with LIC, then we will find that there is a large gap
between them, so there is an opportunities to increase the advisor base by breaking the
agents of LIC.
Threats:-
1 LIC: - LIC is the greatest threat to ICICI prudential in the area of insurance
sector, because it is one of the oldest insurance company in the country, and have
a large size of the customer abase.
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PRODUCTS
PRODUCT PRODUCT OFFERING 1) Secure Plus savings plan that offers 3 levels of
protection.
2) Cash Plus 3 levels of protection as well as liquidity
Options
3) Save? n ?Protect Customer requires savings plan that
offers life protection along with adequate
returns4) Cash Back anticipated endowment policy ideal for
meeting milestone expenses like a childs
marriage, expenses for a childs higher
education or purchase of an asset5) Life Time & Life Time II offer customers the flexibility and control
to customize the policy to meet thechanging needs at different life stages. Eachoffer 4 fund options- Preserver, Protector,Balancer and Maximiser
6) Life Link II single premium Market Linked InsurancePlan which combines life insurance cover with the opportunity to stay invested in thestock market
7) Premier Life limited premium paying plan that offers
customers life insurance cover till the age
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of 758) Invest Shield life Market Linked plan that provides capital
guarantee on the invested premiums anddeclared bonus interest
9) Invest Shield Cash Market Linked plan that provides capital
guarantee on the invested premiums and
declared bonus interest along with flexible
liquidity options.
10) Invest Shield Gold Market Linked plan that provides
capital guarantee on the invested
premiums and declared bonus interest
along with limited premium payment
terms.
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PROTECTION PLAN
MARKET-LINKED RETIREMENT PRODUCT
PRODUCT OFFERINGLifeTime Pension II a regular premium market-linked pension
planLife Link Pension II a single premium market-linked pension plan
Invest Shield Pension A regular premium pension plan with acapital guarantee on the investible premiumand decxlared bonuses
PLAN OFFERINGChild Plan :
Smart Kid
education plans provide guaranteed
educational benefits to a child alongwith life insurance cover for the parent who
purchases the policyRetirement Solutions :
Forever Life
SecurePlus Pension
retirement product targeted at individuals intheir thirties
a flexible pension plan that allows one toselect between 3 levels of cover.
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PROBLEM ANALYSIS
WHAT TYPES OF QUOTAINDUSTRY PRACTICE OF TARGETGLOBAL MARKET HOW TARGET
QUOTA MIX PIE CHART
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The SMART Goal ProcessS pecific
M easureable
A chievableR elevant
T hrifty
Components of a MarketingPlanAnalysisStrategyPositionBudgetActionM easurement
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Sales Target
Objectives for setting Target:
1. To provide quantitative performance standards
2. To provide tighter sales and expense control
3. To motivate desired performance
4. To use in connection with sales contest
Types of targets:1. Sales Volume
2. Financial
3. Activity
4. Combination
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Sales Volume Target:Sales Volume quotas are set for geographical areas, product lines , or marketingchannels or for more of these in combination with any unit of the sales organization,the exact design depending upon what facets of the selling operation managementwants to appraise or motivate.
The smaller the selling unit, the more effective a quota is for controlling sales operations. Setting a sales volume Quota for a sales region , for example ,obtains some direction and control , but setting sales volume quotas for each sales territory in the region obtains much more.
DOLLAR SALES VOLUME QUOTAS
Companies selling broad product lines set sales volume quotas in dollars rather
than in units of product.These companies meet complications in setting unit quotas and in
evaluating sales performance for individual products.
UNIT SALES VOLUME QUOTAS Sales volume quotas in units of products are used in two situations. One is that
in which prices fluctuate considerably ; in this situation ,unit sales volume quotas are better
yardsticks than are dollar sales volume quotas.
The second situation occurs with narrow product lines sold at stable prices,unit
quotas are preferable due to psychological reasons.
POINT SALES VOLUME QUOTAS
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Activity quota
Activity quotas are set for total sales calls, calls on particular classes of customers,calls on prospects, number of new accounts, missionary calls, productdemonstrations, placement or erection of displace, making of collections and the like.Before setting activity quotas, management needs time and duty studies of how sales
personnel actually apportion their time, making additional studies to determine howsales personnel should allocate their efforts .
, Used when SP are involved in non selling activities1. Tot. sales calls on a particular category of customer 2. Order call ratio :tot. no. of calls being made/ tot. no. of
customers being made3. Market development : Calls on prospect4. Sales report5. Call frequency6. Demos organized road shows, stalls, seminars, sales
prom. activity7. Lost business analysis
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Combination and other point system quotas
Combination quotas control performance of both selling and non selling activities. Thesequotas overcome the difficulty of using different measurement units to appraise differentaspects of performance. Because performances against combination quotas are computed as
percentages, these quotas are known as point systems, the points being percentage points.Combination quotas summarize over all performance in a single measure, but they presentsome problems.
It controls performance of both selling and non selling activities(A) (B)
Activity target actual %age achieved weight A*BSales volume 3New a/c obtained 2Calls on prospect 1Displays erected 1
Combination Targets
Setting up targets:Sales volume target derived from Sales volume potential presentTargets derived from total sales estimatePast sales experienceOn executive judgment
1. Rs. Sales Volume Target:
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2. Unit sales volume target:
3. Point sales volume quota: eg. Nokia
Macro Environment Situation
This describes the relevant information on the macro environmental trends affecting your
business.
Technological: Innovation can create or wipe out industries and businesses in less than a
year. One example is the popularity and convenience of CD players all but eliminated the sale
of record players and seriously depressed the manufacture and sale of vinyl records. This is
especially important for you if your product is technology based.
Social and cultural: There is a sweeping trend for Americans (and the world) to dress more
casually, with function and comfort driving new clothing and shoe trends. People are cooking
less and are more concerned about nutrition and fat in their diets. And today, American
business people are less willing to sacrifice family life for business careers .
APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE SECTOR
There is a evolutionary change in the technology that has revolutionized the entire insurance
sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for
trend analysis and personalization.
With increased competition among insurers, service has become a key issue. Moreover,
customers are getting increasingly sophisticated and tech-savvy. People today dont want to
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accept the current value propositions, they want personalized interactions and they look for
more and more features and add ones and better service
The insurance companies today must meet the need of the hour for more and more
personalized approach for handling the customer.
Market Situation
This subtopic of the situation analysis section provides information on the size, growth, and
trends of the overall market and any relevant segments of the total market or category.
For example, local business could include local industry sales or volume for the last five
years and estimated total market for this year and the following year, with company sales and
share of the market.
Market Growth : This topic would tackle the questions of is the market growing? Is it static or
is it shrinking? After gathering the necessary data, analysis can be drawn out to forecast total
market growth for the next five years.
With the forecast made available a more detailed marketing strategy can be drawn, if the
market is static what should you do to increase your sales?
Market Segmentation : Effective marketing and sales initiatives require a thorough
understanding of your target markets and channels. We can help you concentrate your
resources where they are most effective using thorough research and analysis. We'll help you
get a better understanding of factors critical for marketing and sales success
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Demographics: Consumer wants; preferences and the frequency of their purchases are mostly
associated with demographic information. Demographics help you determine the markets
age, gender, nationality, education, household composition, occupation and income. For
example, a home-building contractor should begin to pay closer attention to the needs of
people over 65 (20 percent of the USA population will be over 65 by the year 2000) as baby
boomers begin to edge closer to retirement. People are living longer and spending more on
vacations, recreation, and entertainment.
Market Geographies : This section addresses where your customers are physically located. If
you are marketing your services over the Internet, your client's physical location may be
irrelevant. However, if your job is to promote a local fundraising or store, having an internet
as marketing tool is a fast and cheap way to advertise your products.
Market Psychographics : This category describes the personality of a person, therefore it is
less tangible, but still precious. For example, the lifestyle of a student is significantly
different with a working professional. If selling a gamer based computer to students
understanding what they want and attracts them is very important.
Market Behaviors : Buyers can be analyzed based on their knowledge, use or response to a
product or service. These behavioral variables may include the occasions that stimulate a
purchase, the benefits realized when reading a testimony, the rate of possible usage, their
loyalty, the buyer-readiness stage, and their attitude toward the service you offer.
Upon determining the market demography, geography, psychograph, and behaviors, we
move on to determine the:
Market needs : Value and worth is determined by the user or client. Whether it is in tangible or
intangible forms, the question is what is needed? Are you providing the right solution to the
right problem? Are you making the users or clients overall value as a company increase or
satisfy the needs? These questions would be compiled in this section .
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Think in a broader terms such as how would the product benefit, excite, and attract the
customers? For example, Televisions, all of them are for viewing but why are there so many
differences in sizes, resolutions, and prices? Is a HDTV the same as a normal TV? Certainly
not, HDTV has the capabilities to show better resolution and is normally more expensive.
People who can afford HDTV reflect their economic situation and social status.
This topic is a reminder that all of your marketing activities should be based in meeting the
needs of your customers. For each market segment a strategy should be included that outlines
the market needs that would lead this market segment group to want to buy your products or
use your service.
Market Trends : Understanding the market patterns or trends may enable you to "get ahead" of
your market and allow you to know where it is going before it gets there. Seizing a potential
window of opportunity can be critical to establishing a competitive advantage. Timing is
critical to any marketing strategy. One good example is the iPod from Apple Computer Inc.
The iPod accounts for 75 percent of all MP3 players sold in the United States, according to
the NPD Group Inc. Apple has shipped 21.8 million iPods since Jobs introduced the player in
October 2001, with 18.1 million units sold in the last four quarters alone. When Apple first
introduced the iPod in the early 2001, many people doomed its future but Apple Computer
Inc persisted because they are able to foresee the market trends which led them to todays
75% mp3 market dominance.
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Estimate market potentialMarket Potential for Private Life Insurance Companies in India It has been found out that:
* 85 percent of the Indians prefer LIC than any other insurance companies.
* 'Prevention of Loss', 'Assured Returns' and 'Long term Investment' are the important factors
influencing Indians in opting for Life Insurance
* Only few of the Indians are aware of private life insurance companies.
* Most of the Indians are of the opinion that private insurance companies would be able to
perform well in the long run.
* Most of the Indians are interested in 'Money back' policies than others
* Most of them are interested in insuring for an amount of Rs. 1- 2 lakhs
* There is significant relationship existing between monthly household income and amount
insured
* Based on the monthly household income, Indians prefer to their investment needs like bank
deposit, post office schemes, real estate, insurance, gold, chit funds, shares etc.
* Agents are mostly responsible for selling insurance products in India
The market potential for private insurance companies is found to be greater in the long run as
most of the Indians are of the opinion that, private insurance companies would be able to
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perform well in the future. The private and foreign insurance companies have to immediate
steps in appointing more number of agents and/or advisors in addition to the employees as it
has been found out that agents are the best channel to reach the general public regarding
selling of insurance products. The private and foreign insurance companies have to
concentrate on the factors like 'Prevention of Loss', 'Assured Returns' and 'Long term
Investment'. They can also focus on an insurance amount of Rs. 1 2 lakhs with 'money
back policies'. Hence, the market has potential. The private and foreign insurance
companies that are taking immediate steps can tap it.
The numbers of Competitors are less in the Insurances sectors that makes this Sector
attractive to most of the financial companies. So, for that reason ICICI prudential have a tuff
competition with other competitors in this segment and secondly icici Pru had an experience
of five years of this segment but on the other hand the company like, LIC had more then 20
years of experience of this market. So for ICICI prudential there is threat mainly with the
LIC. And in future this can lead to frequent price wars, advertising battles and new-product
introductions and will make it expensive to compete. But overall this segment is very
attractive .
Threat of new entrants: - segments attractiveness varies with the height of its entry and
exit barriers.If we look from this angle then this segment is moderate 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 companies should have certain amount of money with them as mention by the
govt. and the exit barriers are low. This means that few new firms can enter into the industry
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and poor-performing firms can easily exit and for this reason, this segment is more attractive
for the companies.
Threat of substitute Product: - When we considers on the substitute 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 in the service point of view .
Threat of Buyers growing Bargaining Power : - This segment is unattractive
because the buyers possess strong or growing bargaining powers such as: -
The buyers switching cost is low in the financial investment sectors.
The product is undifferentiated because most of the companies in the insurance sector provide
almost same policies and investment plans.
Threat of Suppliers Growing Powers : - In this segment, the suppliers 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 strong bargaining power .
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CHANNEL PARTNERS
ICICI Prudential uses a multi-channel distribution strategy.
FSC: Financial Service ConsultantBOI: Bank of India
Channel partner
BANCASSURANCE CORPORATE AGENTS FSCDIRECT MARKETING
ICICIBANK
CITIBANK
FEDERALBANK
ALLAHBADBANK
PUNJAB &MAHARASHTRACOOPERATIVE BANK
BOI
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ORGANISATIONAL STRUCTURE
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VP: Vice President NH: National HeadRM: Regional Manager AM :Area Manager SM: Sales Manager FSM: Financial Service Manager
FSC: Financial Service Consultant
VP
NH
RM
AM AM AM AM
SM SM
FSMFSM
FSC FSC FSC FSC FSCFSC FSCFSC
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Problems related to Quota System
1. Should be fair and attainable quotas: Good quotas are accurate, fair and attainable.Obtaining accurate quotas is a function of the quota setting procedure: the more closely quota arerelated to territorial potentials, the greater the chances for accuracy but, in addition, regardless of the type of quota sales volume, budget, activity, or combination sound judgment is importantin analyzing market data, adjusting for contemplated policy changes( and appraising changes in
personnel capabilities)Quotas are fair and attainable; this depends not only upon the quality of managements
judgment but upon the capabilities and motivation of sales force .
2. Securing and maintaining sales personnels acceptance of quotas:- managementmust make certain that sales personnel understand quotas and the quota setting procedure. If sales
personnel do not understand the procedure used in establishing quotas, they may suspect, for
example that the quotas are the techniques to obtain extra efforts from them at no cost to thecompany.
3. Keeping sales personnel informed:- Effective sales management keeps sales personnelinformed of their progress related to quotas. Sales personnel receive frequent reports detailingtheir performance to date. This permits them to analyze their own strong and week points andcorrective action .
4. Need for continuous managerial control:- In administering any quota system, their is aneed for continuous monitoring of performance. Arrangements must be made together andanalyze performance statistics with minimum delay. Keeping sales personnel informed atfrequent intervals, at least monthly, requires sub dividing the year.
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DECISION ANALYSIS
CHANGE OF QUOTA BY COMPANYEVALUATION SHEET
RELATION BETWEEN QUOTAS ANDPERFORMANCE
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DECISION ANALYSIS
Decision will depend upon the kind of situation or problem at hand.
Detail Study Input:
Data Collection: Monthly,quarterly,annual sales report.
Data Preparation: Designing Sales Reports
Data Chart: Diagramatic Representation of Sales Report.
Data Analysis: To compare Sales Data of the firm with industry Standards.
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 valuable source of information.
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 desired information
about the industries and people.
The various directories are as follows:-
Telephone Directory.
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Income Tax office.
City directory.
1 Chartered Accountant Directory.
2 Carpet Industries Directory.
3 Hotel Industries Directory.
4 HDFC Banks.
5 Indian medical association directory.
6 Transporter directory.
7 Exporter Directory.
8 Lawyers Directory.
9 Builders & Constructors Directories
10 CNF
Primary data :-
Primary data are data freshly gathered for a specific purpose. The various sources of
primary data for my project are as follows.
1 Banks.
2 Local residents.
3 People from industries
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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 by collecting this directory from the various sources,
because at the 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 to collected more
information about them or who are my target people.
After collecting the secondary data or information from the secondary sources then I
started collecting from primary sources to narrow down my research. There are basically
five ways to collect data.
1 Survey Research: - This method was the most appropriate way to
collect data. And I have used this method in my project to find out
the company need by identifying the suitable prospect in the city who
can become the ICICI pru client.
2 Observational Research:- This method was not used by me in my
project ,because this survey have no use for me
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3 Focus-group Research: - This method is also not used by me in my
survey.
4 Behavioral data: -This method was also not used by me in my
survey.
Research Instruments
There is various way of research instrument of collecting primary data, the various methods are:-
Questionnaires.
Psychological tools.
Mechanical Devices.
Qualitative Measures.
From the above mentioned research instruments I had used only Questionnaires technique to
find out the various information about the clients such as their turnover, chartered accountant,
investment behaviors, who is their financial consultant etc. And this was the technique which I
felt the best way to extract information about the client
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Sampling PlansAfter 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 of sorting the data.
Sampling Unit : - who is to be surveyed? And now my task was to define the target population,
which will be sampled from the number of people.
Sample Size : - large sample give more reliable result than small sample, so for this reason I had
taken around 40 people to whom I should focus upon, because my target was only 20 clients .
PROPOSAL ANALYSISAt the end of the project we recommend our prospective and solution to the situation at
hand.
Future policy While ICICI Prudential has done well to stay at the top, the next seven years will
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certainly be more difficult than the last seven.
Competition is getting more keen in the past couple of years, Bajaj Allianz is believedto have written more policies than Prudential. SBI Life has a stronger distribution nowthat it has signed on many more agents and newcomers like Reliance (which took over AMP Sanmar) are growing at a fast pace. But the strong growth in the industry hassurprised everyone
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Future policy While ICICI Prudential has done well to stay at the top, the next seven years willcertainly be more difficult than the last seven.
Competition is getting more keen in the past couple of years, Bajaj Allianz is believedto have written more policies than Prudential. SBI Life has a stronger distribution nowthat it has signed on many more agents and newcomers like Reliance (which took over AMP Sanmar) are growing at a fast pace. But the strong growth in the industry hassurprised everyone
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