20886108 project icici
DESCRIPTION
A research about ICICI bankTRANSCRIPT
TABLE OF CONTENTS
1. OBJECTIVES 5 2. THEORY AND CONCEPT 6 3. COMPANY PROFILE 7
I. COMPANY 7II. VISION 8III. PROMOTERS 10IV. PRODUCT 12V. DISTRIBUTION 18
4. STRUCTURE OF THE SALES FUNCTION 19 5. IT INTEGRATION 23 6. RESEARCH METHODOLOGY 32
a. PROBLEM&RESEARCH OBJECTIVE 32b. RESEARCH PLAN 33c. DATA COLLECTION 33
7. ANAYLISIS 39 8. FINDING 52 9. PORTER FIVE COMPETITIVE FORCES 54 10. SWOT ANAYSIS 57 11. BCG MATRIX 61 12. RECOMMENDATION AND SUGGESTIONS 63 13. BIBLIOGRAPHY 65
OBJECTIVES
Financial market is one of the markets where there is lots of option for
the Company, because this market is at the starting point or at the initial
stage. ICICI prudential is a part of these financial markets who is selling
the insurance as well as the mutual fund. The financial market mainly
depend upon the investor who have the power of money to invest into
the market in the form of insurance or mutual funds, and our objective
was to find out investor who can be the future client of the company, our
project “Synergy of High Net- Worth Individuals (HNI) With their
Distribution Channel” ,which mainly focus on finding out the
investment behaviors of the HNI clients, their mode of investment , and
the people who can change their financial decision, because most of the
HNI client usually take the Advice of the people who are close to
them ,and has the knowledge about the financial market.
THEORY AND CONCEPT
Financial market is one of the market, which had started to grow a few
years ago, and with boom in this sector many private company came
into existence, and ICICI prudential is one of them. The Financial
market is mainly depend on the people who had enough money to
invest, to get a good return out of it and our project aim was to find out
those prospect who can invest heavily on the financial market and the
source through which we can reach them, such as:-
• Bankers.
• Chartered Accountant.
• Investment Consultant
It is general known that most of the heavy investor usually consults their
bankers, chartered accountant or their Investment Consultant before
taking any decision while investing, because they are the people who are
generally close to them and know them very well, so our project was to
find out, who are the people who can change their decision to ICICI
Prudential favour .Most of HNI are usually depend upon their CA,
because he is the person who control the financial detail of his client
and his decision are generally consider as one of the most valuable
decision . So our main aim of the project was to find out the various
details such as:-
• Chartered Accountants name
• Chartered Accountant, Detail.
• Clients Advisor
• Bank Name
COMPANY PROFILE
About ICICI Prudential:-
ICICI Prudential Life Insurance Company is a joint venture between
ICICI Bank, a premier financial powerhouse and prudential plc, a
leading international financial services group headquartered in the
United Kingdom. ICICI Prudential was amongst the first private sector
insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority
(IRDA).
ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. In the
financial year ended March 31, 2005, the company garnered Rs 1584
Crore of new business premium for a total sum assured of Rs 13,780
Crore and wrote nearly 615,000 policies. The company has a network of
about 56,000 advisors; as well as 7 Bancassurance and 150 corporate
agent tie-ups. For the past four years, ICICI Prudential has retained its
position as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at
every step in life.
VISION
To make ICICI Prudential the dominant Life and Pensions player built
on trust by world-class people and service.
This is what company hopes to achieve:
Total Protection
ICICI Prudential Life is all about……
Health Wealth
We cover you at every step in Life
Life
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
Company’s policyholders
Providing an enabling environment to foster growth and
learning for Companies employees
And above all, building transparency in all Company’s
dealings.
The success of the company will be founded in its unflinching
commitment to 5 core values -- Integrity, Customer First, Boundary less,
Ownership and Passion. Each of the values describes what the company
stands for, the qualities of people and the way they work.
Company believes that it is on the threshold of an exciting new
opportunity, where it can play a significant role in redefining and
reshaping the sector. Given the quality of parentage and the commitment
of its team, there are no limits to its growth.
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 India’s
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
Bank’s equity shares are listed in India on stock exchanges at Chennai,
Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and 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.
Val
ue
of ben
efit
Time Period
Death
InsuranceStock marketBond
But the value of Life Insurance...
Maturity
life cover
Products
Insurance Solutions
ICICI Prudential Life Insurance offers a range of innovative, customer-
centric products that meet the needs of customers at every life stage. Its
27 products can be enhanced with up to 6 riders, to create a customized
solution for each policyholder.
Savings Solutions:-
• SecurePlus is a transparent and feature-packed savings plan that
offers 3 levels of protection.
• Cash Plus is a transparent, feature-packed savings plan that offers
3 levels of protection as well as liquidity options.
• Save?n?Protect is a traditional endowment savings plan that
offers life protection along with adequate returns.
• CashBak is an anticipated endowment policy ideal for meeting
milestone expenses like a child’s marriage, expenses for a child’s
higher education or purchase of an asset.
• LifeTime & LifeTime II offer customers the flexibility and
control to customize the policy to meet the changing needs at
different life stages. Each offer 4 fund options- Preserver,
Protector, Balancer and Maximiser.
• LifeLink II is a single premium Market Linked Insurance Plan
which combines life insurance cover with the opportunity to stay
invested in the stock market.
• Premier Life is a limited premium paying plan that offers
customers life insurance cover till the age of 75.
• InvestShield Life is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest.
• InvestShield Cash is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with flexible liquidity options.
• InvestShield Gold is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest
along with limited premium payment terms.
Protection Solutions
• Lifeguard is a protection plan, which offers life cover at very low
cost. It is available in 3 options- level term assurance, level term
assurance with return of premium and single premium.
Child Plans
• SmartKid education plans provide guaranteed educational
benefits to a child along with life insurance cover for the parent
who purchases the policy. The policy is designed to provide
money at important milestones in the child’s life. SmartKid plans
are also available in unit-linked form- both single premium and
regular premium.
Retirement Solutions
• Forever Life is a retirement product targeted at individuals in their
thirties.
• SecurePlus Pension is a flexible pension plan that allows one to
select between 3 levels of cover.
Market-linked retirement products
• LifeTime Pension II is a regular premium market-linked pension
plan
• Life Link Pension II is a single premium market-linked pension
plan.
• Invest Shield Pension is a regular premium pension plan with a
capital guarantee on the investible premium and declared
bonuses.
ICICI Prudential also launched- Salaam Zindagi, a social sector group
insurance policy targeted at the economically underprivileged sections
of the society.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
• ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity
plan helps employers fund their statutory gratuity obligation in a
scientific manner. The plan can also be customized to structure
schemes that can provide benefits beyond the statutory
obligations.
• ICICI Pru Group Superannuation Plan: ICICI Pru offers a
flexible defined contribution superannuation scheme to provide a
retirement kitty for each member of the group. Employees have
the option of choosing from various annuity options or opting for
a partial commutation of the annuity at the time of retirement.
• ICICI Pru Group Term Plan: ICICI Pru?S flexible group term
solution helps provide affordable cover to members of a group.
The cover could be uniform or based on designation/rank or a
multiple of salary. The benefit under the policy is paid to the
beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic
policy at a marginal cost, depending on the specific needs of the
customer.
• Accident & disability benefit: If death occurs as the result of an
accident during the term of the policy, the beneficiary receives an
additional amount equal to the sum assured under the policy. If
the death occurs while traveling in an authorized mass transport
vehicle, the beneficiary will be entitled to twice the sum assured
as additional benefit.
• Accident Benefit: This rider option pays the sum assured under
the rider on death due to accident.
• Critical Illness Benefit: protects the insured against financial
loss in the event of 9 specified critical illnesses. Benefits are
payable to the insured for medical expenses prior to death.
• Major Surgical Assistance Benefit: provides financial support
in the event of medical emergencies, ensuring benefits are
payable to the life assured for medical expenses incurred for
surgical procedures. Cover is offered against 43 surgical
procedures.
• Income Benefit: This rider pays the 10% of the sum assured to
the nominee every year, till maturity, in the event of the death of
the life assured. It is available on SmartKid, SecurePlus and Cash
Plus
• Waiver of Premium: In case of total and permanent disability
due to an accident, the premiums are waived till maturity. This
rider is available with SecurePlus and Cash Plus.
Keyman Insurance Plans
A keyman is an individual who directly affects the profitability and
the continuity of a business and whose absence may have an adverse
effect on the health and continuity of the business. Keyman insurance
is a life insurance policy taken by the company on the life of such a
key person.
The objective of the Keyman insurance is to provide the company
with money so that the financial losses to the company can be
protected, in absence of the Keyman. The aim is to indemnify the
company of these losses and to allow business continuity.
All premiums paid for securing a Keyman life insurance policy are
treated as business expenditure u/s 37 (1).
Mutual Funds
A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then
invested in capital market instruments such as shares, debentures and
other securities. The income earned through these investments and the
capital appreciations realized are shared by its unit holders in proportion
to the number of units owned by them.
DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India, having commenced operations in 74 cities
and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad,
Amritsar, Anand, Aurangabad, Bangalore, Bareilly, Bharuch, Bhatinda,
Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore,
Dehradun, Durgapur, Faridabad, Goa, Guntur, Guwhati, Gurgaon,
Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar,
Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota,
Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore,
Meerut, Mehsana, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi,
Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Saharanpur, Salem.
STRUCTURE OF THE SALES FUNCTION
ICICI Prudential’s sales function is divided into two functional
structures within the organization. These two Structures are:
Bancassurance & Alliances
Tied Agency
Both types of structures are described as follows:
Bancassurance & Alliances-
ICICI Prudential was a pioneer in offering life insurance solutions
through banks and alliances. Within a short span of two years, and with
nearly a large number of partners, B & A has emerged as a vital
component of the company’s sales and distribution strategy,
contributing to approximately one third of company’s total business.
The business philosophy at B&A is to leverage distribution synergies
with there partners and add value to its customers as well as the
partners. Flexibility, adaptation and experimenting with new ideas are
the hallmarks of this channel. The business philosophy at B&A is to
leverage distribution synergies with its partners and add value to the
business of both. Bancassurance Team includes:
Banks
ICICI Bank
Federal Bank
South Indian Bank
Bank of India
Lord Krishna Bank
Some co-operative banks
Corporate Agents
Bajaj Capital
India Infoline
Way 2 Wealth
Advanced Financial Services (Karvy)
Blue Chip
AHS
APS
Strategic Marketing Pvt. Ltd.
S M Insurance
Investment Managers
Emgee Muthoot Insurance
The hierarchy structure of the ICICI Prudential Life Insurance
Ltd. is as follows:
o Branch Sales Manager (BSM)/ Center Sales Manager
o Sales Manager(SM)
o Assistant Sales Manager (ASM)
o Team Leader (TL)
o Financial Service Consultant (FSC)
Tied Agency: -
Tied Agency is the largest distribution channel of ICICI Prudential,
comprising a large advisor force that targets various customer segments.
The strength of tied agency lies in an aggressive strategy of expanding
and procuring quality business. With focus on sales & people
development, tied agency has emerged as a robust, predictable and
sustainable business model.
Generally this advisors works under the leadership of unit manager, who
motivate them in every step by providing training and guidance to them,
usually each unit manager have 20 to 30 advisors under them.
o Branch Sales Manager (BSM)/ Center Sales Manager
o Sales Manager(SM)
o Assistant Sales Manager (ASM)
o Unit Manager (UM)
IT INTEGRATION
The Information Technology function at ICICI Prudential is committed
to enable business through the use of technology. It is segmented into 4
groups to enable highest levels of delivery to the customers: Life Asia
Solutions Group that provides flexibility in designing better product
offerings to end-users, the Solutions Group- Web that provides real-time
information to customers and is responsible for customer relationship
management, IT Architecture & Corporate Solutions Group is in charge
of developing and maintaining a blueprint for the IT architecture for the
enterprise as a whole. This team works as an in house R&D Solution
Group, exploring new technological initiatives and also caters to
information needs of corporate functions in the organization. IT
Infrastructure group is responsible for providing hardware, software,
network services to the whole organization. This group runs the 'Digital
Nervous System' of the Enterprise at the highest levels of efficiency and
provide robust, scalable and highly available platform for deployment of
business application.
The IT function is divided into two functional units and two staff units.
Functional Units
1. Systems Delivery
2. Operations & Infrastructure
Staff Units
1. IT Quality
2. IT Architecture and strategy
Systems Delivery focuses on Business Analysis of processes and
generation of business requirements in conjunction with the users, all
activities within the Software Development Life Cycle (SDLC) -
starting with Business Requirements Analysis and ending with
Implementation of a system that meets the requirement. These include
vendor and platform evaluation and selection, system design, acceptance
testing (Pre - UAT), and post implementation support.
The systems delivery unit is aligned with the business organization by
forming three vertical units:
1. Core Insurance Systems
2. Distribution and Access Channel Systems
3. Corporate Systems
IT Operations focuses on operating the applications at the agreed
level, as per user requirements. This include running end of period batch
jobs, executing downloads & uploads, executing report runs and batch
queries, taking backups, maintaining tape libraries and executing review
activities like security reviews etc.
IT Infrastructure focuses on procuring, providing and maintaining the
necessary hardware, Local network, branch network, e-mail network
and internet access facilities in order to enable optimum automation
across HO and all branches. This unit also provides local helpdesks at
all required points.
IT Quality focuses on improving SDLC and operations processes,
defining benchmarks for both, collecting metrics, reporting compliance
and publishing dashboards. It conducts process compliance reviews and
in addition is responsible for framing the Information security policies.
IT Architecture and Strategy evaluates existing architecture and
strategies, and evolves the architecture that helps company maintain
technical edge over competitors for the oncoming years. It is also
evaluating new products, trends and strategies and conduct research into
their applicability in Company’s domain.
The Capability Maturity Model for Software (CMM) is a framework
that describes the key elements of an effective software process. The
CMM describes an evolutionary improvement path from an ad-
hoc.Immature process to a mature disciplined process.
The CMM covers practices for planning, engineering, and managing
software development and maintenance. When followed, these keys
practices improve the ability of organizations to meet goals for cost,
schedule, functionality, and product quality.
The CMM establishes a yardstick against which it is possible to judge,
in a repeatable way, the maturity of an organization's software process
and compare it to the state of the practices of the industry. The CMM
can also be used by an organization to plan improvements to its software
process.
The CMM has 5 Levels, 18 Key Process Areas (KPA's), 316 Key
Practices and 52 Goals.
ICICI Prudential have opted the CMM
To Meet Customer/Market needs.
To have Best Practices.
To look for higher maturity by ensuring repeatability.
Usage of Statistical results on Processes for Continuous
Improvement.
A diagnostic tool to look into organization's strength and
weaknesses.
The processes in the IT department are scaled to meet all KPA's
from CMM level 3
A Software Engineering Process Group (SEPG) is a team of software
professionals with the responsibility of driving and facilitating software
process improvement efforts within an organization.
Formation of SEPG (Software Engineering Process Group)
A management representative is the chairperson of the SEPG.
SEPG chairperson ensures that a core of Professionals representing all
the technical groups of all verticals and functional groups of the
organization form SEPG.
Members of SEPG are given either full time or part time responsibility
for SEPG activities like defining process, transitioning technology and
tools into the
organization, piloting the process / technology improvements and
deploying the process / technology improvements.
SEPG chairperson identifies the persons to carry out the tasks of
SEPG
SEPG chairperson reviews the SEPG activities on a quarterly
basis (or depending on the business needs) and he/she identifies
the roles and responsibilities for the SEPG members on a
rotational basis.
SEPG members are trained to perform statistical process control
and analysis, technology transition, management activities, tool
evaluation techniques and causal analysis.
SEPG should consist of 6-8 members.
Responsibilities of SEPG
Define organizational goals and measurement plans for software
process performance in discussion with the Project Steering
Committee.
Develop and implement software process at the organizational
level.
Co-ordinate process / technology improvement activities at the
organizational level.
Ensure members of the software team and other related groups
receive orientation on the organizations software process
activities.
Internal process assessment.
Maintain the organizations software process assets.
Explore potential areas for applying new technology.
Identify, select and evaluate new technologies.
Incorporate Effective process / technologies into the organization
based on the organizations business plan and goals.
Review SEPG Activities
Review and approve Software Process Improvement Plan
ICICI Pru has defined 15 processes that cover the entire Software
Development Life Cycle (SDLC) of a software project. Each process
has artifacts associated to facilitate data collection during various stages,
track changes and monitor the progress of the project/enhancement.
The processes are as follows.
Management Responsibility
Defines the management's accountabilities, responsibilities, and
commitment towards continuous support for the software quality system
and process improvement.
Software Quality System
Defines the way the software quality system is structured and provides
guidelines to make any changes to the same.
Requirements Management
Outlines the activities involved in gathering, analyzing, reviewing and
approval of requirements. Manages changes to requirements and project
initiation activities.
Estimation –
Outlines the estimation methods to be followed and managing changes
to estimates.
Project Planning and Tracking –
Describes the activities involved during the planning stage of a project,
provides means to monitor and control the progress of the project.
Software Subcontract Management –
Outlines defining the work to be subcontracted, agreement on
commitments with the subcontractor, planning; tracking and QA of the
subcontracted work.
Reviews –
Describes the steps involved in carrying a review activity and
documenting the findings of the review.
Design and Coding –
Outlines the steps involved in translating the software components
identified in the design document into software units that can be coded
compiled and tested.
Testing –
Outlines the steps involved in Planning and carrying out Testing of the
software components.
Software Quality Assurance –
Outlines the activities carried out by the SQA
Software Configuration Management –
Outlines the process involved in preparing the Configuration
management plan, identifying and base lining the configurable items,
steps involved in releasing the tested software.
Enhancement and Post Production –
Outlines the processes to be followed for activities related to minor,
medium and production related issues.
Process Improvement –
Outlines the activities to be carried out for Software Quality System
Improvements.
Measurements –
Describes the measurements to be collected at various stages of the
project and the analysis to be done.
Post Project Evaluation –
Mentions the activities involved in evaluating the performance of the
project after its completion.
SIX SIGMA IMPLEMENTATION BY ICICI PRUDENTIAL.
ICICI Prudential is one of a handful of companies in the service
industry, which had the mettle to take up the six-sigma initiative. It's
quite some time now since ICICI Prudential took up this quality
initiative and since then they have grown beyond expectations. As
another step towards becoming a world-class service Organisation,
ICICI Prudential have blended quality in the form of six sigma into all
their processes and systems. And that gave birth to a hybrid "Business
Excellence" team with the people making processes and ensuring
quality coming together to cut down cost and process
inefficiencies.Some of the figure of the sigma level are :
Expense Processing MIS:-
Policy Issuance Sigma Level:-
Jun-05 May-05 Apr-05Norms Days
Blue Dart 8
Cat A Non Blue Dart 9
Blue Dart 9
Cat B Non Blue Dart 10
Blue Dart 11
Non Blue Dart 12
Blue Dart 13
Non Blue Dart 14
Blue Dart 11Non Blue Dart 12
Blue Dart 13Non Blue Dart 14
Policy Issuance - Sigma Levels
J ET (Login to Customer Received)
3.19 3.04 2.97
3.28 3.22 3.01
J ET (Cheque Date to Customer Received)
Cat A 2.93 2.78 2.75
Cat B 3.14 3.04 2.90
MEDICAL (Medical Test to Customer Received)
Cat A 2.95 2.59 2.57
Cat B 3.11 2.89 2.83
Policy Issuance Sigma Level – HNI
J un-05 May-05 Apr-05Norms Days
Blue Dart 11
Non Blue Dart 12
Blue Dart 13
Non Blue Dart 14
Blue Dart 11Non Blue Dart 12
Blue Dart 13Non Blue Dart 14
2.34
Cat B 3.21 2.89 2.60
MEDICAL (Medical Test to Customer Received)
Cat A 2.86 2.64
2.49
Cat B 3.15 3.07 2.76
J ET (Cheque Date to Customer Received)
Cat A 2.96 2.71
Policy Issuance - Sigma Levels
Accuracy MIS
1. Accuracy MIS presents the number of error caught at various
stages of policy issuance
2. Branch Discrepancy: Any error caught in the application form or
underwriting sheet before data entry at COPS.
3. Call Back Error: All errors identified at post issuance call back
stage.
4. Correction Complaints: All complaints received for errors on
contract
details
5. Opportunities: All contracts issued in previous month
S ta g e E r r o r sO p p o r tu -
n itie sB u s in e s s
R a tioD a ta
C a p tu r eD a ta E n tr y
U n d e r -w r itin g
B r a n c h D i s c r e p a n c y7 8 6 3 5 0 3 2 2 . 2 4 % 1 7 5 2 2 2 3 8 9
C a l l B a c k E r r o r 6 2 0 3 1 2 1 9 1 . 9 9 % 2 0 7 3 9 5 1 8
C o r r e c t i o n C o m p l a i n t s2 2 5 2 4 6 1 7 0 . 9 1 % 2 4 2 0 1 0
T o ta l E r r o r s 1 6 3 1 4 0 6 8 1 8 4 0 7E r r o r % 2 5 % 5 0 % 2 5 %
E r r o r T y p eA c c u r a c y M IS
• Data Capture: Error done while filling application form
• Data Entry Error: Error done while doing data entry at COPS
• Underwriting Error : Error done by underwriters
Service – Overall
Service Sigma
2.792.54
2.9
3.48 3.49 3.52
0
1
2
3
4
5
6
Apr 05 May 05 Jun 05
Sig
ma
Leve
l
Complaint Request Target
Apr 05 May 05 J un 050.65% 0.59% 0.58%4.13% 2.84% 2.95%Requests
Business Ratio
Complaints
Category
RESEARCH METHODOLOGY
Research is one of the most important parts in the survey to collect
information and knowledge. Marketing research is defined as the
systematic design, collection, analysis, and reporting of data and
findings relevant to a specific marketing situation facing the company.
Problem and Research Objective
Our main objective was to find out the top HNIs (High net worth
income) group and their various mode of investment. The main problem
was how to find out the top twenty HNI clients from the bunch of
people without knowing them in detail.
To get all this information a thorough planning had to be done, so I first
started with designing the questionnaire for the clients whom I was
going to target and to know about their investment pattern. The main
things to be known from the clients were:
1. There Annual turnover
2. Who are there bankers
3. There chartered accountant
4. Who influence there investment decision
5. What is there annual investment
Research plan
The research process depends upon developing the most efficient plan
for gathering the needed information. Designing a research plan calls
for decisions on the data sources, research approaches, research
instruments, sampling plan, and contact methods.
Our objective was to find the “Synergy of HNIs with there Distribution
Channel”.
This objective had made our project too narrow because from now
onward our task was to find the top industries and person who can invest
above 1 crores and more then that. So from now onwards I started to
target only to a special segment of the people.
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.
Income Tax office.
City directory.
Chartered Accountant Directory.
Carpet Industries Directory.
Hotel Industries Directory.
HDFC Banks.
Indian medical association directory.
Transporter directory.
Exporter Directory.
Lawyers Directory.
Builders & Constructors Directories
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.
Banks.
Local residents.
People from industries
Research Approaches:-
From the two data source which I have mention above secondary data
are the easiest way to gather and the cost of collecting this data is very
low and easily available from the respective association. And I started
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.
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.
Observational Research:- This method was not used
by me in my project ,because this survey have no use
for me
Focus-group Research: - This method is also not used
by me in my survey.
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:-
1. Questionnaires.
2. Psychological tools.
3. Mechanical Devices.
4. 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
Sampling Plans
After collecting entire data and deciding on the research approach and
instruments, now I had to decide on the sampling plan which was one of
the important task, because from the bunch of people I had to select only
those people ,whom I can target from now onward .There are three way
of sorting the data.
o 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.
o 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.
Contact Methods:-
Once the client had been decided now my task was how to contact
them ,and for me there only two ways of contacting them .
1. Personal Interview: - this method was the most
appropriate way of survey, because by personal
interview I came to know their feeling about the
ICICI. Their personal behavior and many more
things.
2. Telephone: - This method is also used by me for
once, because the client had no time for me, and there
was no other option for me.
Major Industries of the city:
Varanasi is usually considered as the land of Temple but it will be not
wrong, if we say that it is also the land of rich people. The Various
Industries of the city are:-
• Sarees Industries.
• Carpet Industries.
• Oil Industries.
• Hotel Industries.
• Transport.
• Textile Industries.
• “Etc”
ANALYSIS OF DATA CHART
Return clients are looking at:-
R e t u r n c l i e n t s a r e l o o k i n g a t
5 %
4 0 %4 5 %
1 0 %
L e s s t h a n 1 0 %
B / W 1 0 - 1 5 %
B / W 1 5 - 2 0 %
A b o v e 2 0 %
Returns client are looking at
From the Above Pie chart, it is clear that most of the client are looking
above 15% , this is because they are getting more return from their
earlier investment such as in the business and in real state, this shows
that they are willing to take more risk to get more return from their
investments
The second largest group is between 10% to 15%, this shows that most
of the businesses man wants to balance the risk and return of their
investment so that there is no big loss in the future.
Around 85% of the clients comes under this two category ,this shows
that most of the clients are ready to take risk for their investments.
Mutual Fund Preference Chart
From the below pie chart, preference of the clients for the various
mutual funds is depicted. In this Mutual Fund preference, HDFC emerge
as the winners closely followed by Prudential ICICI. This is mainly
because at present there is not much option for the client in the city, and
secondly ICICI prudential and reliance, have opened their branches in
the city recently. While some clients like to invest in other mutual funds
as well.
M u t u a l F u n d P r e f e r e d
4 0 %
2 0 %
4 0 % H D F CP r u d e n t i a l I C I C IM u t u a l I P O
Preference of Clients between Nationalized and Private Banks
P r e f e r e n c e o f C lie n t
N a t i o n a li z e d B a n k
P r i v a te B a n k
From the above chart it is very clear that the nationalized banks are far
ahead in compare to private banks. There are many factors, which are
affecting the decision of the people.
1. Nationalized banks are operating for many years in the city and
the private banks had opened their branches, a few years an ago.
2. Most of the nationalized banks employees are local residents
which plays an important role in customer relation.
3. The customer relationships of the nationalized banks are very old
and for this reason customers are not willing to change their
banks.
4. most of the clients wants a special attention to them while their
visit, and this is very well done by some of the nationalized banks
.while the private banks are unable to do this.
5. most of the private banks are using metro city style of behavior
while dealing with the clients and this behavior are not liked by
most of the people
6. Some of the private banks are charging more money for their
service, especially in preparing draft and other transaction. While
nationalized banks are not charging at all or very less in compare
to private banks.
7. There are more branches of the nationalized banks in compare to
private banks, which makes people more interested in the
nationalized banks.
N a tio n a l iz e d B a n k s
1 1 %6 %
6 0 %
6 %
6 % 1 1 %
S ta te B a nk o fInd ia
B a nk o f Ind ia
Unio n B a nk o find ia
P unja b Na t io na lB a nk
C e nt ra l B a nk o fInd ia
A lla ha b a d B a nk
From the above chart it is very clear that Union Bank of India is the
leading nationalized bank of the City. It has 60% share in the banking
segment. The factor which favor them are:
1. The service of the union bank is far better then any nationalized
banks in the city.
2. Union bank provide additional facilities to its HNI clients.
3. They have better relationship with their clients.
4. Union banks if India had more branches in the city ,which makes
their clients easy to reach to their branches.
PRIVATE BANKS CHART
P r iv a te B a n k s
5 0 %5 0 %
IC IC I B a n k
H D F C B a n k
PRIVATE BANKS: - the pie chart shows the preference of the client
for the various Private Banks. It is very clear from the chart that ICICI
Bank and HDFC are the two leading private banks of the city. This is
mainly because.
• These two banks are the first private banks which has opened
their branches in the city.
• ICICI and HDFC brands name, play an important part in their
success in the city because people usually go through the name
the company.
AGE BRAKET OF THE IINDUSTRIES
A g e B r a k e t
5 %2 0 %
1 5 %6 0 %
L e s s t h a n 5 y e a r s
B / W 5 - 1 0 y e a r s
B / W 1 0 - 1 5 y e a r s
A b o v e 1 5 y e a r s
From the Above Chart it is very clear that most of the industries are
very old.
• Around 60% of the industries are more then 15 years old, this
shows that they have a strong financial backing.
• They are very much stable in their fields or segment
1 1 %5 %
8 4 %
B a n k e r
I n t e r n a l A d v i s o r s
S e lf D e c i s i o n
• Form the above chart it is clear that most of the HNI relies on
their own decision, there are around 84% of the people who
wants to take their own financial decision because either they do
not wants to share their investment decision with other or they
thinks that they are more intelligent to take decision of their own.
• Secondly bankers are more prefer by the HNI, this is generally
because banker are the people who generally interact with them
and secondly HNI believe on their bankers because of the
relationship .
2 0 %
5 %
2 %
1 7 %2 2 %
3 4 %
B a n k F D
R B I B o n d
M u t u a l F u n d
U n i t L i n k e dP l a n / In s u r a n c eR e a l E s t a t e
B a c k i n t o b u s i n e s s
Preference investment Instrument
Business emerge to be the most preferred investment instrument of
the clients with maximum 34% of clients from all the clients
preferring this as their favorite investment option Because, it gives
more return then any other investment.
Bank FD emerges out to be the second most preferred option
for the clients to invest in the market. This is also dependant on
various reasons which are given as under:
o Easy loans available against the Bank Fixed Deposits.
o Clients can withdraw their money at almost anytime giving
them the option of maintaining Liquidity.
o With all this Bank FD also provides a decent return
concerned the minimum of the risk in any of the available
investment instruments.
o We have seen above in the analysis of nationalized vs.
private banks that nationalized banks are the more
preferred ones, this also adds weight to clients preferring
Bank FDs due to trust build during all these years.
Then, next preferred option for the clients is Unit link
plan/Insurance.
T e n u r e o f F D p r e f e r e d
2 5 %
1 7 %8 %
5 0 %
S h o r t T e r m ( L e s st h a n 2 y e a r s )
M e d i u m T e r m ( B / W2 - 5 y e a r s )
L o n g T e r m ( M o r et h a n 5 y e a r s )
N o t K n o w n
we can see from the above chart that there are majority of clients (from
the clients who have disclosed this data) prefer the short term fixed
deposits as their favorite option. Most of the clients use the ideal money
which they have to meet the uncertainty or short term requirement.
INSURANCE PARTNER PREFERENCE CHART
I n s u r a n c e P a r t n e r P r e f e r e d
4 7 %
3 3 %
7 %1 3 %
L IC
H D F C
IC IC I P r u d e n t i a l
O r i e n t a l In s u r a n c e
This chart show the preference of the people who had invested in the
insurance sector, and from the chart it is very clear that LIC is the
leading company in this field, because of many factors such as:-.
LIC is leading in this field mainly, because it is the first mover in
the insurance sector and had capture most of the market by being
first mover in this sector
LIC had a very good network of agents, and those are the back
bone of the company.
LIC had provided better service in the past which had made trust
in the mind of the people and for that reason they feel more
comfortable.
HDFC and ICICI Pru are the second in this field mainly because
they had opened their branches recently and slowly they are
capturing the market and in the future the ratio is decrease,
because there are many opportunity to cash in by both the
company .
FINDING
Most of the HNI client prefers the nationalized bank in
comparison to private banks.
The most common reason is that the public banks are operating for
many years and they have developed a good relationship with their
client and this is the reason why the HNI are not eager to move to the
private banks. Secondly, most of the clients want a special attention to
them while their visit and this is very well done by the public banks
(especially by the union banks of India,) because most of the employee
in the public banks are local residents and they have their personal
contact with them.
Telephone Calling by the ICICI bank and ICICI prudential
Advisors are disturbing the clients-
There is excess calling by the employee of the icici banks and by the
Advisors of ICICI Prudential, and this is one of the reasons why they are
not interested in the bank nor in ICICI prudential, and the other reason is
that most of the time Advisors try to meet the HNI clients without prior
notice, this create a bad impression about the company.
Most of the HNI clients, Money are kept ideal in the banks –
This is a very good opportunities for the icici prudential to cash most of
the HNI client in varanasi, because there is not much option for them for
investment and most of the client prefer to keep a good amount of cash
with them for uncertainty and for other reasons.
In the insurance sector LIC is the number one company
prefer by the people-
LIC is the most prefer insurance company in the country, this is because
of the brand name and LIC is also the first mover in the insurance sector
and this is a great advantage for them. There are lots of things which
favors them are.
The company image in the mind of the people
The life long service of the company
A very good channel of people (agents)
Very good relationship with their clients
Lack of information or knowledge about the private Insurance
Company.
PORTER FIVE COMPETITIVE FORCES
Competitive Force:
Michael Porter has identified five forces that determine the intrinsic
long-run profit attractiveness of a market or market segment.
• Industry competitors
• Potential entrants.
• Substitutes.
• Buyers.
• Suppliers.
Threat of Intense Segment Rivalry:
A segment like insurance sector which is very attractive because, it is in
the growing stage of the life cycle, and these makes this segment
attractive but on the other hand it already contains aggressive
competitors such as: -
• Life Insurance of India.
• Bajaj Alliances
• ICICI Prudential Life Insurance.
• HDFC.
• Franklin Templeton.
• Reliance.
• Unit trust Of India. Etc.
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 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 Buyer’s growing Bargaining Power: -This segment is
unattractive because the buyers possess strong or growing
bargaining powers such as: -
• The buyer’s 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.
SWOT ANALYSIS
STRENGTH:-
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
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.
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
South Indian Bank
Bank of India
Lord Krishna Bank
Some co-operative banks
Corporate Agents
Bajaj Capita
India Infoline
Way 2 Wealth
Advanced Financial Services (Karvy)
Blue Chip
AHS
APS
Strategic Marketing Pvt. Ltd.
S M Insurance
Investment Managers
Allied Corporate AgenciesStrong Marketing and Sales Promotion
team
ULIPs: Almost 90% of the total business of ICICI Pru is the
business with the sale of ULIPs and only 10% of the products are
the traditional insurance policies. So this is the strength which
ICICI Pru can work upon more to get the maximum positive
results.
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 too complex 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:-
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.
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:-
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.
Threat with some private banks: - there are some banks which
are providing these services to their customer. And slowly taking
away a good market share.
BCG Matrix
CASH COW: -
Tied Agency: -Tied agency are cash cow for ICICI prudential because
they are the people who brings more customer to the company and cover
a large area of the city and the cost of keeping them is very less because
advisors works on the commission basis the this is the reason why they
works so hard. Around 30 to 40 advisors work under one unit manager.
The cost of maintaining them is very less in comparison to the other
department.
STAR: -
BANKERS:-Bankers are star of the company when we plot in the BCG
matrix, because most of the HNI which the company gets is through the
Bankers this is because most HNI have their Account in the Banks and
they also rely on the banks for their investment. Secondly people
recognized ICICI prudential as a part of ICICI bank and ICICI bank
name is used by the ICICI prudential to get more customers and usually
customer trust ICICI prudential because of ICICI banks.
Question Marks:-
Corporate; - Corporate allies come under the Question marks because
the city like Varanasi, where most of the decision are taken by the HNI
themselves, with little help or no help with their Chartered Accountant,
but there is a greater chance, if we convince their CA and through them
we can reach to their client very easily and in future they can become
star for the company but lot of investment is required.
Dogs:-
No one at present;-As Insurance sector is at the growing stage, so there
is no dog for the company at present and in future ,which are on the
three section can become dog for the company
RECOMMENDATION AND SUGGESSTION
• Lack of information about the service provided By the ICICI
prudential life insurance: -
Most of the client whom I meet during my survey told me that they
were unaware of the service and scheme, which the company is
providing to the people. This is mainly because of the lack marketing
their product by the company. So I suggest that the company should
market its brand in more aggressive manner.
• Start Making Link with the Nationalized Banks to get more
Business:-
When we look at the Small city like Varanasi, most of the HNI client
prefer and have their account in Nationalized banks, because this
banks are giving good service for many years and If ICICI prudential
can make tie-up with the employees of this banks then they can be
able to get more business from this contact.
• Service of the ICICI bank should be improved: -
What I hear in Varanasi is that most of the HNI do not want to do
business with the ICICI banks, and this is mainly because of their
service and the banks do not give preference to them and there are
many restrictions in their operations. So I suggested that some staff
should be made to look after them, because they are the customers
who mainly give us the business.
• Access Telephone Calling should be stopped: -
Most of the time, clients get disturb because of telephone call made
by the advisors of ICICI prudential and bank. I accept that this is the
most successful mode of contacting the people, but access calling
create a wrong impression in the mind of the customer.
• Image of the ICICI should be improved in the City: -
Most of the time people do not want to do business with the ICICI,
because of the Hidden cost which they come across while dealing
with the bank.
• More focus is given to the industrial class then the service
class: -
ICICI prudential are concentrating more on the industrial class then
the service class. It is generally known that more insurance are made
by the service class to get reduction from the Tax, so we should also
focus on the service class because they are the people who wants to
secure their life by investing in the insurances sector and in the
mutual funds. So I suggest that concentration should be given to this
class also because the ratio of the service class is much high in the
country.
• More Local Employee should be hired by the company: -
The local employees will have their contact in the city and this can
be use by the company to get more business from their contact and
This will add additional benefit to the company
BIBLIOGRAPHY
Internet Websites:
www.iciciprulife.com
www.icicibank.com
www.google.com
www.bima.com
Directories:
Telephone Directory.
Income Tax office.
City directory.
Chartered Accountant Directory.
Carpet Industries Directory.
Hotel Industries Directory.
HDFC Banks.
Indian medical association directory.
Transporter directory.
Exporter Directory.
Lawyers Directory.
Builders & Constructors Directories
CNF
Other Materials:
Marketing Management by Philip Kotler.
Finsight (Level 1).
Product Brochures.