NAME Vishal Patel Neha patel Bharatsingh Rajpurohit Ankita Rane Shivam Rawal Krutika Sachde Priyanka Shah

Virali Shah Bhagyashree Thakkar

ROLL NO. 71 72 81 83 85 89 98 100 116

Sameer Velani

125

 PART-I

Introduction Goods v/s services Characteristics Classifications 10 Ps of marketing mix 4 pillars SWOT analysis

PART-II

 Activities

which are of financial nature are brought under the term Financial Services. Identification of Banking and Insurance financial service institutions as organisation were meant to take the country towards development. In this service sector quality counts more than the quantity. The game is old but the new rules are still developing.

 Banking

and Insurance basically stands for mobilizing and allocation savings. Nationalizations of services leads to development of Indian economy and canalized financial resources for the upliftment of weaker sections of the society.

 In

olden days banking and insurance did not find any attractions in the low level of economic activities a little business prospectus. Banking and insurance control by the authority of RBI and IRDA. Basically banks is an institution which deals with money and credit, where as insurance is social device to reduce or eliminate risk of life and property.

Characteristics Entity Storage Title Pricing Consumer reaction Life Image Focus Inventory

Service Intangible Not possible No ownership Labour based Spontaneous Still born Corporate Customer expectation Personnel Tangible Possible

Goods

Ownership Material based Delayed Longer Brand Customer needs Raw material

Repairs
Delivery

Impossible
Along with production

Possible
Separate from production

Intangibility : For e.g. Attractive pass book, bank statement, gold credit card and brand name.

Inseparability : For e.g. Low customer contact i.e. ATM, face- toface contact For completion of transaction

 Variability

: The greater the degree of automation within any transaction process, the greater the degree of standardization. For e.g. Simple transaction ATM variation in quality

Perishibility

: For. e.g. Cheque needs to be cleared by the date.

 Demand:

Fluctuating demand since based on economic condition of the nation. For e.g. In boom condition the customer are demanding and more money invested in bank.

CLASSIFICATION OF BANK

COMMERCIAL BANKS e.g. HDFC

CO-OPRATIVE BANK e.g.NKGSB

STRUCTURE OF BANKING RBI

COMMERCIAL e.g. HDFC CO-OPRATIVE e.g. Sarasvat

DEVELOPMENTAL e.g. IDBI

NATIONAL e.g. Punjab

PRIVATE

SHORT TERM

LONG TERM

INDUSTRIAL

AGRICULTURA L NABARD

EXIM

PRODUCT: The bundle of utilities

-Borrowing/deposit: Current deposit. Saving deposit. Fixed deposit. Recurring deposit.

-Lending: Term loan. Loan & Advances. E.g. Home loan Pre & Post Shipment Overdraft Cash Credit Clean Loan Guarantors

Potential

Augmented

Expected

Core

Core

Deposit, withdrawals, F.D, Easy loan, Interest, Currency, etc. Prompt Services, Convenient timing, less documentation, ATM, Debit & Credit Card, DEMAT, etc. Tele banking, Internet banking, Locker facilities, Discounting of Bills, Bills Payment, Money Transfer, Traveller Cheque, etc. Bank at home e.g. ICICI, Counselling, Tax Consultant, Gold Credit card, 24hrs banking, etc.

Expected

Augmented

Potential

 PRICING:

In banking price mix is nothing but the rate of interest and fee or commission charged by different bank.
RBI RBI regulates rate of Interest. E.g. ICICI BankInterest on FD- 810% COMPETITION Competition Price based on the services of the bank. E.g. ICICI issue of duplicate statement RS: 25 per page

 The

location analysis for banks branches. Following are factors of determination of the locations:
Crowded area Industrial Structure

Transportation

Place
Competitors Visibility

Real State Rates

Residential Area

 For

e.g. ICICI. March 31, 2000, bank had a network of 81 branches, 16 extension counters and 175 ATMs.

Advertising Print Media Personnel selling

Hoardings

Sales Promotion

Online Banking

Pamphlets Word of Mouth

Tele Marketing e.g. SMS

 They

also used the Short Message Service (SMS) Wireless Application Protocol (WAP) Call Centre

ICICI bank views people as a key source of competitive advantage ICICI bank is the Indias second largest bank; it had just over 7,700 employees at March 2002. ICICI bank has built strong capabilities in training and development to build competencies. A six-sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in its areas. Frontline staff members are being trained on the regular basis by IT users support group on the various enhancements as well as new packages designed for offering customized solutions to customers.

Selecting of a bank

Enquiry

Getting detailed info. On various bank a/c.

Selecting the type of a/c

Creating Cheques & passbook

Getting an a/c

Verification

Filling the form with relevant documents

Forwarding it to the customers

Regular deposits & withdrawals

The physical evidences include the logo, the layout of the branch, the passbook, flashy cheque books, the furniture, the reports, punch lines, other tangibles, employees dress code etc.

 Based

on RATER analysis:
Reliability e.g. Regular transaction records

Assurance e.g. Knowledge & politeness

Responsiveness e.g. Teller

Tangibles e.g. clean & ion uniform of the employees

Empathy e.g. May I help you Attitude.

 Perception

refers to maintain the brand image in minds of customers in that manner which they don't switch over to the competitor.

PLANNING:
To

forecast the future. Preparation of the blue print of the services Smooth conducting.

 BASE

OF BANKING SECTOR

STRENGTH

OPPORTUNITIES

WEAKNESS

THREATS

STRENGTHS -Managed by authorised body. -Adoptability to change. -Highly trained employees. -Vast networking. WEAKNESSES -Illiteracy of the people -Close mind People. -Lack of personnel Skill.
OPPORTUNITIES -Employment -Fast growing economy. -Saving Behaviour. -Development of SSI -Vast Country. THREATS -Lack of awareness. -Aggressive strategy of foreign players.

 Intangibility

: The offerings of the service, insurance, are free from any products. : This goes to say that during a transaction the presence of both the service provider and consumer is of the highest essential.

Inseparability

Variability : The policies & its properties will remain the same for each and every person and also across companies, but while the transaction is carried out the qualities of service may vary with each case.
Perishability : Insurance service offerings cannot be stored. Once the policy tenure expire or matured the benefits gets over. Simultaneity : Service offering is produced and consumed the exact same time.

Life insurance. General insurance. Fire insurance. Marine insurance. Health insurance. Property insurance. Travel insurance. Total permanent disability insurance Miscellaneous insurance.

 PRODUCT:

LIC INDIA
PRODUCT OF LIFE INSURANCE

Children insurance plan.e.g. Jeevan annurag

Plans for handicapped. E.g. Jeevan aadhar

Endowment assurance plan. E.g. Jeevan mitra

Money back plan e.g. Jeevan surbhi 20

Pension plan e.g. Jeevan nidhi

Special plan

Golden jubilee e.g Bima gold

Special jubilee e.g. Jeevan saral

Potential

Augmented

Expected

Core

Core
Life Non life insurance policy.

Expected
After sales service low claim settling period.

Augmented
Online premium payment Payment through credit card.

Potential
Loan against the policy. Maturity claims settled on or before the maturity date.

General insurance
Premium Mortality tables Expected surplus

Life insurance
Life expectancy age Medical history

CHANNEL OF DISTRIBUTION

Direct selling

Partner selling

Electronic channel

Agents

Bank assurance

LIC on internet

Financial advisors

Postal department

Information kiosks

Call centres

Selling through corporate

SMS

Zonal offices 100 Divisional offices 2048 Branch office.

AdvertisingT.V-Met life

Print MediaLIC

Personnel sellingagents

Radio-ICICI Prudential.9 2.5redFm

Sales Promotion

Internet (www.licindi a.com)

Public relation Word of Mouth

Tele Marketing e.g. SMS

 Sponsoring

event: e.g. Max new York life insurance company sponsored the recent ICC cricket would cup 2010- India. Gifts: e.g. LIC provides diaries, pens, booklets, etc. Brochures, seminars, etc.

 LIC

views people as a key source of competitive advantage LIC of Indias top public insurance company; it have just over 6,28,301 Agents employees. Agents are the front stage employees The attitude and friendliness of the agents determines what the customer feels about the service given to him LIC has built strong capabilities in training and development to build competencies. A six-sigma initiative has been undertaken for the lateral recruitment process to improve capabilities in its areas.

Selecting of a Insurance co.

Enquiry

Calls to agent

Financial review form

Agents submits & signed form in the insurance office

Filling of proposals along with documents

Selection of plan

Agent suggest 2 or 3 policies

Verifying the documents submitted

Reconfirmation

Regularly payment of premium

 Physical

evidence includes: Policy documents, Brochures, Periodic statement, Renewal Notices, Business cards, Stationary, Calendars, Diaries, websites.

Based on RATER Reliability Analysis: e.g. Agent is reliable

in providing inf. Of policy

Assurance e.g. Knowledge & politeness

Responsiveness e.g. Responsible for claim.

Tangibles e.g. Insurance policy documents

Empathy e.g. May I help you Attitude and human carrying.

 Perception

refers to maintain the brand image in minds of customers in that manner which they don't switch over to the competitor.

PLANNING: To forecast the future. Preparation of the blue print of the services Smooth conducting.

 BASE

OF INSURANCE SECTOR

STRENGTH

OPPORTUNITIES

WEAKNESS

THREATS

STRENGTHS -Consumer grievance redresses. -Adoptability to change. -Diversification of funds. -Channels. -Rural customer are must. WEAKNESSES -Less coverage in rural Ares. -Out dated Product. -Lack of personnel Skill. OPPORTUNITIES -Employment -Fast growing economy. -Saving Behaviour. -Increasing per capita income in India. -Vast Country. THREATS -Lack of awareness. -Aggressive strategy of foreign players.

INSURANCE IS NO MORE A PUBLIC SECTOR MONOPOLY IN INDIA

R.N.

MALHOTRA COMMITTEE.

Govt. stake in insurance co. 50% Holding of GIC subsidiaries not > 5% Controller of Insurance (Currently a part from the

Finance Ministry) should be made independent.

 Opened the Insurance sector. Made I.R.A a statutory body.

STATUTORY STATUS: the Insurance Act, 1938, Life Insurance Corporation Act , 1956 & the General Insurance Business Act , 1972 . The

IRDA (Insurance regulatory development authority) was set up on April 19th,2000. This made the conventional Insurance sector to be more competitive

The opening of the sector was done to, Make available long term funds for infrastructure
Introduce Make

new and innovative products

Effective improvement in quality of service to the customers

 This

gave rise to a cutting edge competition between private players and L.I.C.

Shakeout. Private insurers financial muscle, their professionalism, and the incentives they offer has created a shakeout in public sector. of service: The service factor. An area, which never received its desired importance earlier was tapped by private players.

Importance

Aditya Birla group & Sun Life , CanadaHDFC and Standard Life, UK ICICI and Prudential, UK Max India and New York Life,USA Tata group and AIG, USA

LIFE LIFE LIFE LIFE LIFE & NON-LIFE

SBI and Cardiff, France

Reliance with no foreign alliance

LIFE
NON-LIFE