MARKET SEGMENTATION IN ING VYSYA LIFE INSURANCE

CONTENTS

Chapter 1: INTRODUCTION Chapter 2: COMPANY PROFILE AND ITS OBJECTIVE Chapter 3: OBJECTIVES OF THE STUDY METHODOLOGY LIMITATIONS Chapter 4: DATA ANALYSIS Chapter 5: FINDINGS AND SUGGESTIONS

2 13

19 22 38

APPENDIX
BIBLIOGRAPHY QUESTIONNAIRE 43 45

Chapter-1 INTRODUCTION

MARKETING
Marketing is the craft of linking the producers (or potential producers) of a product or service with customers, both existing and potential. Some form of marketing arises naturally in all capitalist societies but is not limited to capitalist societies. Marketing techniques are also applied in politics, religion, personal affairs, and many other aspects of life. Marketing methods are informed by many of the social sciences, particularly psychology, sociology and economics. Marketing research underpins these activities. Through advertising, it is also related to many of the creative arts. Successful marketers typically have a customer orientation or focus

Overview
In popular usage, the term "marketing" refers to the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning. It can be divided into four sections, often called the "four Ps," only one of which is promotion. They are:

Product - The Product management aspect of marketing deals with the specifications of the actual good or service, and how it relates to the end-user's needs and wants.

Pricing - This refers to the process of setting a price for a product, including discounts. Promotion - This includes advertising, promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company.

Place or distribution refers to how the product gets to the customer; for example, point of sale placement or retailing.

These four elements are often referred to as the marketing mix. A marketer will use these variables to craft a marketing plan. For a marketing plan to be successful, the mix

of the four "p's" must reflect the wants and desires of the consumers in the target market. Trying to convince a market segment to buy something they don't want is extremely expensive and seldom successful. Marketers depend on marketing research to determine what consumers want and what they are willing to pay for. Marketers hope that this process will give them a sustainable competitive advantage. Marketing management is the practical application of this process.

MARKET SEGMENTATION
Market segmentation is the process of grouping a market into smaller subgroups. This is not something that is arbitrarily imposed on society: it is derived from the recognition that the total market is often made up of submarkets (called segments). These segments are homogeneous within (i.e. people in the segment are similar to each other in their attitudes about certain variables). Because of this intra-group similarity, they are likely to respond somewhat similarly to a given marketing strategy. That is, they are likely to have similar feelings about a marketing mix comprised of a given product, sold at a given price, distributed in a certain way, and promoted in a certain way. Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers

The Need for Market Segmentation The marketing concept calls for understanding customers and satisfying their needs better than the competition. But different customers have different needs, and it rarely is possible to satisfy all customers by treating them alike. Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production, mass distribution, and mass communication. The drawback of mass marketing is that customer needs and preferences differ and the same offering is unlikely to be viewed as optimal by all customers. If firms ignored the differing customer needs, another firm likely would enter the market with a product that serves a specific group, and the incumbent firms would lose those customers. Target

marketing on the other hand recognizes the diversity of customers and does not try to please all of them with the same offering. The first step in target marketing is to identify different market segments and their needs. The requirements for successful segmentation are:

homogeneity within the segment heterogeneity between segments stability of segments segments are measurable and identifiable segments are accessible and actionable segment is large enough to be profitable

The variables used for segmentation include:

Geographic Variables
o o o

region of the world or country country size climate age gender sexual orientation family size family life cycle income occupation education socioeconomic status religion nationality personality life-style

Demographic Variables
o o o o o o o o o o o

Psychographic Variables
o o

o o

values attitudes benefit sought product usage rate brand loyalty product end use readiness-to-buy stage decision making unit

Behavioural Variables
o o o o o o

When numerous variables are combined to give an in-depth understanding of a segment, this is referred to as depth segmentation. When enough information is combined to create a clear picture of a typical member of a segment, this is referred to as a buyer profile. A statistical technique commonly used in determining a profile is cluster analysis. Bases for Segmentation in Industrial Markets In contrast to consumers, industrial customers tend to be fewer in number and purchase larger quantities. They evaluate offerings in more detail, and the decision process usually involves more than one person. These characteristics apply to organizations such as manufacturers and service providers, as well as resellers, governments, and institutions. Many of the consumer market segmentation variables can be applied to industrial markets. Industrial markets might be segmented on characteristics such as:

Location Company type Behavioural characteristics

Location In industrial markets, customer location may be important in some cases. Shipping costs may be a purchase factor for vendor selection for products having a high bulk to

value ratio, so distance from the vendor may be critical. In some industries firms tend to cluster together geographically and therefore may have similar needs within a region. Company Type Business customers can be classified according to type as follows:

Company size Industry Decision making unit Purchase Criteria

Behavioural Characteristics In industrial markets, patterns of purchase behaviour can be a basis for segmentation. Such behavioural characteristics may include: Usage rate Buying status: potential, first time, regular, etc. Purchase procedure: sealed bids, negotiations etc.

BENEFITS OF MARKET SEGMENTATION Designing responsive product to meet the needs of market place Developing effective and cost efficient promotional tactics and campaigns Gauging the companys market position-how the company is perceived by its customers and potential customers relative to the competition Fine tuning of the current marketing strategies

PROCESS OF MARKET SEGMENTATION

SEGMENT IDENTIFICATION

It is nothing but determining a given number of homogenous market segments based on selected segmentation, variables and criteria. Segments should be customer focused, a justifiable size, distinguishable, accessible, accountable and profitable. MARKET SELECTION It refers to selection of one or more groups to target for any marketing activity. It is impossible to pursue every market opportunity. So, marketers must make strategic choices based on customer needs, competitive opportunities, corporate objectives and the firms financial, technical and marketing resources.

TARGET MARKET
A target market is the market segment which a particular product is marketed to. It is often defined by age, gender and/or socio-economic grouping.

Targeting strategy is the selection of the customers you wish to service. The decisions involved in targeting strategy include:

how many segments to target which segments to target how many products to offer which products to offer in which segments

There are three steps to targeting:

market segmentation target choice product positioning

Targeting strategy decisions are influenced by:

market maturity diversity of buyers needs and preferences the company's size

strength of the competition the volume of sales required for profitability

POSITIONING
Positioning is the technique in which marketers try to create an image or identity for a product, brand, or company. It is the 'place' a product occupies in a given market as perceived by the target market. Positioning is something that is done in the minds of the target market. A product's position is how potential buyers see the product. Positioning is expressed relative to the position of competitors. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. The ability to spot a positioning opportunity is a sure test of a persons' marketing ability. Successful positioning strategies are usually rooted in a product's sustainable competitive advantage. The most common basis for constructing a product positioning strategy are:

positioning on specific product features positioning on specific benefits, needs, or solutions positioning on specific use categories positioning on specific usage occasions positioning against another product positioning through product class dissociation

INDIAN INSURANCE INDUSTRYIAN INSURANCE INDUSTRY: Insurers

Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers: Life Insurers:

Life Insurance Corporation of India (LIC)

General Insurers:

General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely (with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited 3. National Insurance Company Limited 4. United Insurance Company Limited

Yr 2001 and 2007

Life Insurers S.No. Registration Date of Number Reg. Name of the Company

1 2 3 4

101 104 105 107

23.10.2000 15.11.2000 24.11.2000 10.01.2001

HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited

5 6 7 8 9 10 11 12

109 110 111 114 116 117 133 135

31.01.2001 12.02.2001 30.03.2001 02.08.2001 03.08.2001 06.08.2001 04.09.2007 19.12.2007

Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited . ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited Metlife India Insurance Company Pvt. Ltd. Future Generali India Life Insurance Company Limited IDBI Fortis Life Insurance Company Ltd.

General Insurers : S.No. Registration Number 1 102 Date of Registration 23.10.2000 Royal Sundaram Alliance Insurance Company Limited Reliance General Insurance Company Limited. Name of the Company

103

23.10.2000

3 4 5

106 108 113

04.12.2000 22.01.2001 02.05.2001

IFFCO Tokio General Insurance Co. Ltd TATA AIG General Insurance Company Ltd. Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited. Apollo DKV Insurance Company Limited Future Generali India Insurance Company Limited Universal Sompo General Insurance Company Ltd.

115

03.08.2001

131 132 134

03-08-2007 04-09-2007 16-11-2007

8 9

Yr: 2002
Insurance Industry in this year had 5 new entrants; namely Life Insurers:

S.No. Registration Date of Number Reg. 1 121

Name of the Company

03.01.2002 AMP Sanmar Life Insurance Company Limited.

122

14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

General Insurers : S.No. 1 2. 3. Registration Number 123 124 125 Date of Registration 15.07.2002 27.08.2002 27.08.2002 Name of the Company Cholamandalam General Insurance Company Ltd. Export Credit Guarantee Corporation Ltd. HDFC-Chubb General Insurance Co. Ltd.

*
Yr: 2004
Life Insurers: S.No. 1 Registration Number 127 Date of Reg. 06.02.2004 Name of the Company Sahara India Insurance Company Ltd.

Yr: 2005
Insurance Industry in this year had 1new entrant; namely Life Insurers: S.No. 1 Registration Number 128 Date of Reg. 17.11.2005 Name of the Company Shriram Life Insurance Company Ltd.

*-YRS 2003 AND 2006 HAD NO ENTRANTS

CHAPTER 2

COMPANY PROFILE AND ITS OBJECTIVE

INTRODUCTION TO ING VYSYA LIFE

ING Vysya Life in India - An Overview

ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance industry in India in September 2001, and in a span of 5 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force. It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore. The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in enhancing the very quality of life, in addition to safeguarding an individual's security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and Caring. The Companys portfolio offers products that cater to every financial requirement, at any life stage. We believe in continuously developing customer-driven products and services and value being accessible and responsive to the needs of our customers. In fact, the company has developed the LifeMaker, a simple method which can be used to choose a plan most suitable to a specific customer based on his needs, requirements

and current life stage. This tool helps you build a complete financial plan for life, whether the requirement is Protection, Savings or Investment, Retirement. ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset.

Management Team
Board of Directors (as on August 13, 2007) Mr. Rajan Raheja : Chairman Mr. Kshitij Jain : Managing Director & Chief Executive Officer Mr. Peter Alexander Smyth : Director Mr. N.N. Joshi : Director Mr. Satish Raheja : Director Mr. Rajesh Kapadia : Director Mr. S.B. Ganguly : Director Mr. Vijay Aggarwal : Alternate Director to Mr. Sathish Raheja

Senior Management Team

Kshitij Jain : MD & CEO T K Uthappa : VP, Sales - Tied Agency Rahul Agarwal : VP - Customer Services Rene van der Poel : VP & Head - Alternate Channels Amit Gupta : VP & Head - Marketing Priya Gopalakrishnan : VP & Head - Human Resources Y V D V Prasad : VP - Business Development R Hemamalini : Appointed Actuary & CIRO S Ravishankar : VP - Information Technology & Corporate Services

Corporate Objective
At ING Vysya Life, it is strongly believed that as life is different at every stage, life insurance must offer flexibility and choice to go with that stage. It is fully prepared and committed to guide one on insurance products and services through its well-trained advisors, backed by competent marketing and customer services, in the best possible way. It is their aim to become one of the top private life insurance companies in India and to become a cornerstone of INGs integrated financial services business in India.

Mission
To set the standard in helping its customers manage their financial future partners. A glance at its equity partners:

ING Group Exide Industries Limited Gujarat Ambuja Cements Limited Enam Group

ING is a global financial institution of Dutch origin. It has NG Group ING Group is known for its philosophy of keeping it simple. This thought is the result of ING Groups 150 years of understanding of customers needs and fulfilling 150 years of experience, and provides a wide array of banking; insurance and asset management services in over 50 countries and is trusted by over 60 million customers. Its 1,13,000 employees work daily to satisfy a broad customer base individuals, families, small businesses, large corporations, institutions and governments. The ING Group has gone from strength to strength year after year and is the world's 13th largest company. The ING Group is the world's largest financial institution with over US $ 1 trillion# in assets and profits of US $ 8.5 billion in 2005.

Over the last 150 years, ING Group has grown to become the largest insurer in the world. Today it touches the lives of millions of people across 50 countries. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING's long-term commitment. In the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries successfully.

PARTNERSExide Industries Limited With eight manufacturing plants strategically located across the country, Exide is Indias largest producer of automotive and industrial batteries. Its range of products covers everything from the smallest batteries required in motorcycles to the giant batteries powering submarines. For the fiscal year 2004-05, the company registered a sales turnover of Rs. 1,482 crores and a net profit of Rs. 77 crores. Boasting an uninterrupted dividend payment track record of 58 years, the company has a global presence through its subsidiaries in Singapore, Sri Lanka and the United Kingdom. It is the market leader in the organised sector in both the automotive and industrial segments. 'EXIDE' and 'SF(Standard Furukawa)', the flagship brands of the Company, are also the leading battery brands in the country. Gujarat Ambuja Cements Limited

Gujarat Ambuja Cements Limited. is the fastest growing cement company in India and considered one of the most reputed companies in India. GACLs brand Ambuja Cement is considered a premium brand in the Indian market. Apart from domestic sales, Ambuja Cement is also the largest seller of Indian cement in countries including Sri Lanka, Dubai and Kuwait. Its plants are some of the most efficient in the world, with environment protection measures that are on par with the finest in the developed world. It is the most profitable cement company in India, and the lowest cost producer of cement in the world. Enam Group Enam Group is one of Indias leading financial service providers reputed for its ability to perceive the true potential of businesses and enhance their value. The culture at Enam Group is deeply rooted in ethics, innovation and financial sobriety.

Chapter 3 OBJECTIVES OF THE STUDY METHODOLOGY LIMITATIONS

OBJECTIVES OF THE STUDY

To know how ING VYSYA segmented its insurance market in terms of age, income, occupation, plans and policies. To know the socio-economic profile of the sample respondents. To know the opinions of the people about the market segmentation process of ING VYSYA LIFE in India.

RESEARCH METHODOLOGY
The following methodology has been adapted to examine the proposed topic A study on market segmentation of ING VYSYA life insurance SAMPLING METHODS The convenient sampling method used wasDATA COLLECTION To carry out the present study, both primary and secondary data have been used.

Primary data has been collected with the help of questionnaires, which has been
designed and developed in this regard. The questionnaire have been administered to all sample respondents to elecit all the required information.Wherever necessary, meticulous observations have also been made. In addition to this, the officials of the concerned offices have also been interviewed. SAMPLE SIZE

As per the requirements of the study, a sample of 75 respondents has been chosen.

Secondary data on the other hand, has been collected from relevant textbooks,
magazines, newspapers, periodicals etc. At last, both primary and secondary data have been integrated to make the study exact and relevant.

LIMITATIONS OF THE STUDY

Because of time and resource constraints, the sample size chosen is small. It is difficult to figure out the real opinions of the sample respondents from what they stated.

Chapter 4 DATA ANALYSIS

1) AGE 21-30 31-40 ABOVE 41 NO. OF RESPONDENTS 22 26 27 PERCENTAGE 29.30 34.60 36

TOTAL

75

100

ANALYSIS
The above table represents the present ages of the respondents insured in ING VYSYA life insurance company. 27 out of the 74 sample respondents , majority of the samples ewho have insured themselves in ING VYSYA lefe insurance company fall in the age group of ABOVE 41 followed by 26 respondents who fall in the age group of 31-40 and a relatively few in the age group of 21-30.Thus, we can say that majority of the samply respondents are from the age group of ABOVE 41 while a relatively few are in the group of 21-30.

30 NO. OF RESPONDENTS 25 20 15 10 5 0 21-30 31-40 AGE ABOVE 41 Series1

2) GENDER MALE NO. OF RESPONDENTS 65 PERCENTAGE 86.60

FEMALE

10

13.30

TOTAL

75

100

ANALYSIS
The above table shows the gender of the sample insured in ING VYSYA Life insurance company.65 out of 75 sample respondents, majority of the respondents who insured their lives in ING VYSYA are males while only a relatively few are females.By this, we can say that majority of the sample respondents are males while only a relatively few are females.

NO .O F RESPO NDENTS

70 60 50 40 30 20 10 0 MALE GENDER FEMALE

Series1

3) EDUCATION LESS THAN 10TH INTERMEDIATE GRADUATION POST GRADUATION TOTAL NO. OF RESPONDENTS 22 14 30 9 75 PERCENTAGE 29.30 18.60 40 12 100

ANALYSIS
The above table presents the education level of the sample insured in ING VYSYA Life insurance company.30 out of 75 are graduates.22 of the 75 respondents had their education upto 10th class.Very few of them are under the Post-graduation level. This

shows thata majority of the sample respondents are graduates while a relatively few are Post-graduates.

EDUCATION

9 22 LESS THAN 10TH INTERMEDIATE GRADUATION 30 14 POST-GRADUATION

4)

OCCUPATION BUSINESS EMPLOYEE PROFESSIONAL TOTAL

NO OF RESPONDENTS PERCENTAGE 35 10 30 75 46.6 13.3 40 100

ANALYSIS
The above table shows the occupations of the sample respondents in ING VYSYA Life insurance company.35 out of 75 fall in the business section. 30 of the sample respondents are professionals. Very few are employees. Thus, we can say that majority of the sample respondents are business people and relatively few are employees.

WORK

30 35

BUSINESS EMPLOYEE PROFESSION

10

5)

MONTHLY INCOME NO. OF RESPONDENTS PERCENTAGE LESS THAN 10,000 10000-20000 20000 AND ABOVE TOTAL 33 25 17 75 44 33.3 22.6 100

ANALYSIS
The above table shows the monthly income of the sample respondents who have insured their lives in ING VYSYA Life insurance company. Out of 75 sample respondents, majority of the people fall in less than 10,000 income level. 25 of them fall

in 10,000-20,000 income level. Very few of them fall in the 20,000 and above level. Thus, we can say that majority of the sample respondents fall in the less than 10,000 income group while relatively few fall in the above 20,000 income level.

NO. OF RESPONDENTS

20000 AND ABOVE 23% LESS THAN 10,000 44% LESS THAN 10,000 10000-20000 20000 AND ABOVE 10000-20000 33%

6)

COVER/INCOME YES NO TOTAL

LESS THAN 10,000 10,000-20,000 22(100%) . 22(100%) 26(100%) .. 26(100%)

20,000 AND ABOVE TOTAL 27(100%) 27(100%) 75(100%) . 75(100%)

ANALYSIS
The above table shows how many people in a particular income level have insurance cover. It can be said that from the analysis that majority of the sample respondents who have insurance cover fall in the above 20,000 group while a relatively few of them fall in less than 10.000 group.

30 NO . O F RESPO NDENTS 25 20 15 10 5 0 1 2 YES/NO 3 YES NO

7)

INCOME/INSURANCE COVER 0-2 LAKHS

LESS THAN 10,000 24(72.2%)

20,000 AND 10,000-20,000 ABOVE 17(68%) 3(17.64%)

TOTAL 44(58.6%)

2-4 LAKHS 4-6 LAKHS 6 LAKHS AND ABOVE TOTAL

7(21.2%) 2(6.06%) 0(0%) 33(100%)

3(12%) 3(12%) 2(8%) 25(100%)

3(17.64%) 5(29.4%) 6(35.2%) 17(100%)

13(17.33%) 10(13.33%) 8(10.66%) 75(100%)

ANALYSIS
The above table shows the quantum of insurance cover the sample respondents have on their lives. By the above figures, we can say that majority of the sample respondents have insured themselves according to their incomes . The lower income group people have mostly insured themselves below 2 lakhs.

30 25 20 15 10 5 0

24 17 3 7 3 3 2 3 5 0 6 LESS THAN 10,000 10,000-20,000 2 20,000 AND ABOVE

0-2 LAKHS 2-4 LAKHS 4-6 LAKHS

6 LAKHS AND ABOVE

8)
INCOME/POLICIES LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE TOTAL REASSURING LIFE 7(20.58%) 5(15.1%) 3(37.5%) 15(20%)

CREATING LIFE FULFILLIN LIFE POWERING LIFE FREEDOM TOTAL

7(20.58%) 6(17.68%) 7(20.58%) 7(20.58%) 34(100%)

6(18.1%) 8(24.2%) 8(24.2%) 6(18.1%) 33(100%)

1(12.5%) 1(12.5%) 0(0%) 3(37.5%) 8(100%)

14(18.6%) 15(20%) 15(20%) 16(21.3%) 75(100%)

ANALYSIS
The above table shows the plans/policies owned by sample respondents.By just observing the figures obtained in the table, it can be concluded that sample respondents have almost all plans equally.

RESPONDENTS

REASSURI NG LIFE

10 8 6 4 2 0

LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE CREATING LIFE FULFILLIN LIFE FREEDOM POWERIN G LIFE

POLICIES

9)
INCOME/SUM ASSURED LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE TOTAL

1.5 LAKHS 3 LAKHS 4 LAKHS ABOVE 4 LAKHS TOTAL

27(81.8%) 4(12.1%) 2(6%) 0(0%) 33(10%)

17(68%) 3(12%) 3(12%) 2(8%) 25(100%)

5(29.4%) 3(17.6%) 4(23.5%) 5(29.4%) 17(100%)

49(65.3%) 10(13.3%) 9(12%) 7(9.3%) 75(100%)

ANALYSIS
The above table denotes the sum assures by the respondents for all the policies. From the figures above, it can be concluded that a majority of the sample respondents who fall in different income groups owned policies worth Rs. 1.5 lakhs.

60 50 40 30 20 10 0 1.5 LAKHS 3 LAKHS 4 LAKHS ABOVE 4 LAKHS INCOME

NO. OF RESPONDENTS

LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE

10)

INCOME/SUM ASSURED LESS THAN 10,000 10,000-20,000 25,000-50,000 4(12.1%) 3(12%) 50,000-75,000 7(21.2%) 5(20%) 75,000-1 LAKH 2(6%) 2(8%) 1-1.5 LAKHS 20(60.6%) 15(60%) TOTAL 33(100%) 25(100%)

20,000 AND ABOVE TOTAL 4(23.5%) 11(14.6%) 2(11.7%) 14(18.6%) 3(17.6%) 7(9.3%) 8(47.05%) 43(57.3%) 17(100%) 75(100%)

ANALYSIS
The above table denotes the sum assures for each plan with regard to their income. By going through the figures, we can conclude that the sum assured for each plan is mostly between 1 to 1.5 lakhs.

NO. OF RESPONDENTS

25 20 15 10 5 0

20 15 4 3 4 25,00050,000 7 5 8 2 2 2 3 75,000-1 LAKH 1-1.5 LAKHS LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE

50,00075,000

SUM ASSURED

11)
INCOME/PREMIUM YES NO TOTAL LESS THAN 10,000 15(60%) 10(40%) 25(100%) 10,000-20,000 25(83.33%) 5(16.6%) 30(100%) 20,000 AND ABOVE 20(100%) 0(0%) 20(100%) TOTAL 60(80%) 15(20%) 75(100%)

ANALYSIS
The above table denotes whether premium is paid regularly or not. From the above figures, it can be said that majority of the sample respondents pay thir premiums regularly while only a few of them are irregular.

30 25 20 15 10 5 0 LESS THAN 10,000 10,000-20,000 INCOME 20,000 AND ABOVE

NO. OF RESPONDENTS

YES NO

12)
INCOME/PAYMENT SALARY SAVING SCHEME QUARTERLY HALF YEARLY YEARLY TOTAL LESS THAN 10,00010,000-20,000 20,000 AND ABOVE TOTAL 2(6.06%) 20(60.6%) 7(21.2%) 4(12.1%) 33(100%) 8(47.05%) 2(11.7%) 2(11.7%) 5(29.4%) 17(100%) 15(60%) 2(8%) 3(12%) 5(20%) 25(100%) 25(33.3%) 24(32%) 12(16%) 14(18.6%) 75(100%)

ANALYSIS
The above table denotes the mode of payment of premiums by the sample respondents. From the above figures, it can be concluded that a majority of the sample respondents make their premium payments through salary and quarterly methods.

NO. OF RESPONDENTS

25 20 15 10 5 0 QUARTER LY SALARY SAVING SCHEME YEARLY HALF YEARLY

LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE

PAYMENT METHOD

13)
INCOME/INTEREST YES NO CAN'T SAY TOTAL LESS THAN 10,000 20(57.1%) 10(28.5%) 5(14.2%) 35(100%) 10,000-20,000 5(50%) 3(30%) 2(20%) 10(100%) 20,000 AND ABOVE 15(50%) 7(23.3%) 8(26.6%) 30(100%) TOTAL 40(53.3%) 20(26.6%) 15(20%) 75(100%)

ANALYSIS
The above table presents the interest of the people to take a few more policies of ING VYSYA Life. From the above figures, the conclusion drawn is that a majority of the sample respondents are interested to take a few more policies of ING VYSYA, if their income increases.

25 NO . O F RESPO NDENTS 20 15 10 5 0 LESS THAN 10,000 10,000-20,000 INCOME 20,000 AND ABOVE YES NO CAN'T SAY

14)
INCOME/PLANS MAXIMISING LIFE REWARDING LIFE BEST YEARS CONQUERING LIFE SAFAL JEEVAN TOTAL LESS THAN 10,000 7(20.5%) 6(17.6%) 7(20.5%) 7(20.5%) 7(20.5%) 34(100%) 10,000-20,000 8(24.2%) 6(18.1%) 5(15.1%) 8(24.2%) 6(18.1%) 33(100%) 20,000 AND ABOVE 3(37.5%) 1(12.5%) 1(12.5%) 0(0%) 3(37.5%) 8(100%) TOTAL 18(24%) 13(17.3%) 13(17.3%) 15(20%) 16(21.3%) 75(100%)

ANALYSIS
The above table indicates preferable plans of ING VYSYA.By the above analysis, ir can be concluded that plans such as maximising life, Safal Jeevan and conquering life are the fast moving plans in the market.

NO. OF RESPONDENTS

9 8 7 6 5 4 3 2 1 0

LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE

PLANS

15)
INCOME/IMAGE EXCELLENT VERY GOOD GOOD SATISFACTORY POOR TOTAL LESS THAN 10,000 2(5.88%) 5(14.7%) 15(44.11%) 9(26.4%) 3(8.82%) 34(100%) 10,000-20,000 5(22.7%) 10(45.4%) 4(18.1%) 2(9.09%) 1(4.54%) 22(100%) 20,000 AND ABOVE 9(47.3%) 7(36.8%) 2(10.5%) 1(5.26%) 0(0%) 19(100%) TOTAL 16(21.3%) 22(29.3%) 21(28%) 12(16%) 4(5.33%) 75(100%)

ANALYSIS
The above table presents the opinion of the sample respondents on the corporate image of ING VYSYA life. From th whole table, it can be concluded that the corporate image of the company is very good and good as perceived by a majority of the sample respondents.

NO . O F RESPO NDENTS

16 14 12 10 8 6 4 2 0
T D Y D N O R O LL E TO O G O O O R

LESS THAN 10,000 10,000-20,000 20,000 AND ABOVE

IMAGE

TI

FA

Chapter 5 FINDINGS AND SUGGESTIONS

FINDINGS AND SUGGESTIONS

One of the findings drawn from the study is that majority of the sample respondents fall in the age group of above 41 while relatively few of them fall in the age group of 21-30.This may be due to the fact that above 41 age group people are well settled and have an idea of saving for their future. The company must target the age of 21-30 because they join fresh and have no idea of savings. If the company can plan a policy that suits them, it will be beneficial to them and also to the company.

It is understood from the study that majority of the sample respondents are businessmen while a few are employees. The businessmen constitute nearly 47% while employees constitute 13% only. However professionals constitute a huge 40%.

It is understood that majority of the sample respondents possessed Graduation while relatively few of them had their Post graduation. The opinions of these people will reflect the findings of the study.

 It is also noted that majority of the sample respondents fall under less than 10,000 income level while a few fall in the 20,000 income level. The opinions of people who fall in the socio-economic background as stated above will reflect the findings of the study.

Another finding drawn from the study is that majority of the people who owned Reassuring life plan fall in the 0-10,000 income group while relatively few of them fall in the above 20,000 income group. Almost all similar observations have been made in case of plans such as Creating life, Fulfilling life, Powering life and freedom. It is also noted that no body owned powering life plan in the above 20,000 group. This is partly due to the fact that majority of the sample respondents surveyed fall in the lower income groups.

Another finding drawn from the study is that more people insured their lives for a sum assured of Rs.1.5 lakh, while relatively few people insured their lives for a sum assured of Rs. 2.5 lakhs,3.5 lakhs and above. This is because; there is a correlation between income and insurance cover. The lower income groups cannot have adequate insurance cover on their lives due to financial problems, while the higher income people may not show interest to insurance. Hence, it is suggested to ING VYSYA to market high sum insured plans so that more premium can be collected from these plans and so, it will be beneficial for the company.

The study also shows that from the sample respondents surveyed, majority of the people do not pay their premiums regularily. This may be due to negligence, transfers, loss of jobs or other reasons. So, the company should direct its advisors or agents to keep continuous contact regularly with the customer so that the latter may pay premium regularly. By doing this, the company can minimise the lapse rate.

 Another finding drawn from the study is that 33% of the sample respondents are salaried people and the rest of them are not salaried. If the company concentrates on the non-salaried people, there may be a possibility for the lapsation of policies due to the income fluctuations or some reasons. On the other hand, if the company concentrates on the salaried ones, lapsation of the policies will be very much low as the premium will be deducted directly from the salaries of employees. Hence, it is suggested to ING VYSYA to concentrate on salaried segment and non-salaried segment.

Another finding drawn from the study is that, more than half of the respondents agreed to take few or more policies in ING VYSYA and the rest of them were not interested in this regard. This may be due to the fact that they do not like the benefits or they are not aware of the benefits of the company or due to some other reasons. Hence, the company, through the advisors, should monitor the market continuously and accordingly, It should know the reasons for the disinterest of the people. After that, it may make necessary changes in the policies/plans in terms of improved benefits and reduced costs. This helps the company increase its customer base.

In the study, majority of the sample respondents feel that the corporate image of ING VYSYA is very good followed by good, excellent and satisfactory. Relatively few of them felt that its corporate image is poor. It is a fact that corporate image helps in increasing the sales of the company. So, the company should try and make its corporate image even better, which would be possible through continuous advertising.

APPENDIX
BIBLIOGRAPHY QUESTIONNAIRE

BIBLIOGRAPHY

BIBLIOGRAPHY BOOKSo Marketing Management------------ Philip Kotler o Marketing Management------------- Sontaki o Insurance Chronicle--------------ICMR Publication o Research Methodology-------------R.C.Kothari o ING VYSYA LIFE product manuals

WEBSITESo www.ingvysyalife.com o www.bambooweb.com o www.globalinsurance.com

QUESTIONNAIRE

QUESTIONNAIRE A SURVEY ON THE MARKET SEGMENTATION OF ING VYSYA LIFE INSURANCE

PERSONAL INFORMATION NAME AGE GENDER EDUCATION OCCUPATION MONTHLY HOUSE HOLD INCOME MARKET SEGMENTATION OF ING VYSYA 1) Do you have insurance cover to your life? a) Yes b) No 2) If yes, then how much insurance cover do you have? a) 0-2 lakhs b) 2-4 lakhs c) 4-6 lakhs d) 6 lakhs and above 3) Name the plan/policies of ING VYSYA you are under. a) Reassuring life b) Creating life c) Fulfilling life d) Freedom e) Other

4) Please state the sum assured for all the policies together. a) 1 lakh b) 2 lakhs c) 3 lakhs d) above 3 lakhs

5) Please state the sum assured for each plan. a) Rs.25,000 b) Rs.50,000 c) Rs.75,000 d) Rs.1 lakh and more

6) Do you pay premium regularly for all the plans? a) Yes b) No

7) State the mode of payment for all the policies. a) Salary saving scheme b) Quarterly c) Half yearly d) Annual 8) Would you take a few more policies of ING VYSYA, if your income rises? a) Yes b) No c) Cant say

9) Which plan do you prefer? a)Maximising life b)Rewarding life Best years a) Safal jeevan b) Others

10) What is your opinion on the corporate image of ING VYSYA? a) Excellent b) Very good c) Good d) Satisfactory e) Poor