STUDY ON MARKETING

STRATEGIES AND
ANALYSIS OF
CONSUMER AWARNESS
AT KOTAK LIFE INSURANCE

KOTAK LIFE
INSURANCE
Kotak Mahindra Old Mutual Life Insurance Ltd is a 74:26
joint venture between Kotak Mahindra Bank Ltd., its affiliates
and Old Mutual plc.
The company started operations in 2001, and strives to
offer its customers outstanding value through high customer
empathy, consistent and benchmarked service and a suite of
products that leverage the combined prowess of protection
and long term savings.
The company covers over 8 million lives and is one of the
fastest growing insurance companies in India.

About Kotak Mahindra Group

Established in 1985, the Kotak Mahindra group is
one of India's leading financial services
conglomerates. In February 2003, Kotak Mahindra
Finance Ltd. (KMFL), the Group's flagship company,
received a banking license from the Reserve Bank
of India (RBI).

About Old Mutual

Old Mutual provides life assurance, asset
management, banking and general insurance to
more than 16 million customers in Africa, the
Americas, Asia and Europe. Originating in South
Africa in 1845, Old Mutual has been listed on the
London and Johannesburg Stock Exchanges,
among others, since 1999.

NEED OF THE STUDY

To analyze the concept of insurance better and for
making customer awareness analysis towards
insurance. First a sample survey was done on this to
know the awareness level of customers in this
regard and by this the satisfactory levels of the
existing investors who have already invested in life
insurance.

OBJECTIVE

The objectives of this study are as following:

Proper understanding and analysis of life insurance
industry.
To know about brand awareness of Kotak Life
Insurance and customers preference about Kotak
Life Insurance.
Conduct market survey on a sample selected from the
entire population and derive opinion on that research.
To offer suggestions based upon findings.

LITERATURE
REVIEW

Berekson (1972), Showers and Shotick (1994),

Baek and DeVaney (2005) found that the effect of age was
positive and significant, but Ferber and Lee (1980),Bernheim
(1991) and Chen et al. (2001) found a negative significant
relationship between age and life insurance demand, whereas
Hammond et al. (1967), Duker (1969) anderson and
Nevin (1975), Burnett and Palmer (1984), Gandolfi and Miners
(1996) argued that age was not a significant factor in
purchase of life insurance.

Bernheim (1991) used Probit, Tobit and Heckman model to

investigate the impact of bequest motives on savings based on
the estimates of the demand for life insurance, using the 1975
Longitudinal Retirement History Survey data.
Most researchers such as Hammond et al. (1967), Ferber and
Lee (1980), Burnett and Palmer (1984),Gandolfi and Miners
(1996) and Baek and DeVaney (2005),agreed in their research
that there is a positive relationship between education and life
insurance demand.
Abhinav International Monthly Refereed Journal of
Research in
Management & Technology

METHODOLOGY

All the findings and conclusions are based on the

survey done in the working area within time limit.
Data has been collected from 100 respondents
for studying Customer awareness about the brand
and life insurance, selected randomly from different
areas in Mumbai such as:
Employees of Government Departments
Employees of Private Firms
Business / Self Employed

ANALYSIS

It is very important that trained marketing professionals

who are able to communicate specific features of the policy
should sell the policy.
People are less aware about the policies and features of
insurance. Therefore Kotak Life is recommended to shed light
on policies and explain the benefits, thus increasing the
awareness.
The penetration of insurance in India is around 22%. This
indicates that a vast majority of rural population is not
covered. The market player needs to explore this untapped
potential through their marketing and sales network.

 Insurance companies will also have to get savvy in

distribution. Enhanced marketing thus will be crucial.
A stringent accounting practice to prevent failures
amongst the insurers. To prevent any underhand workings of
the insurer and to prevent them from going bust, a stringent
accounting practice is imperative.
A level playing field at all stages of development in the sector
for all the players. An unbiased environment is where the
best comes out of the players. Their real strength shines
through.

LEARNING

Training related to: to recruitment of life advisor

and to gain knowledge about the selling process of
insurance.
We followed the criteria of FRIENDs TECHNIQUE
as determined by Kotak Life under the process of
customer segmentation.
F: Friends
R: Relatives
I: Institutes
E: Ex- colleagues
N: Neighbours
D: Daily acquaintance

After we categorize the customers according to

FRIENDs technique, we sort out eligible customers
though following:
M: Money
A: Age
H: Health
A: Authority
N: Need