ssm- b&i sector-mamta rawal

7/29/2019 SSM- B&I Sector-mamta rawal

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NAMEROLL

NO.

Vishal Patel 71

Neha patel 72

Bharatsingh Rajpurohit 81

Ankita Rane 83

Shivam Rawal 85

Krutika Sachde 89

Priyanka Shah 98

Virali Shah 100

Bhagyashree Thakkar 116Sameer Velani 125


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PART-I

IntroductionGoods v/s services

PART-II

CharacteristicsClassifications10 Ps of marketing mix4 pillarsSWOT analysis


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Activities which are of financial nature arebrought under the term FinancialServices.

Identification of Banking and Insurancefinancial service institutions asorganisation were meant to take thecountry towards development.

In this service sector quality counts morethan the quantity.

The game is old but the new rules are stilldeveloping.


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Banking and Insurance basically stands formobilizing and allocation savings.

Nationalizations of services leads to

development of Indian economy andcanalized financial resources for the

upliftment of weaker sections of the

society.


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In olden days banking and insurance didnot 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.


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Characteristics Service Goods

Entity Intangible Tangible

Storage Not possible Possible

Title No ownership Ownership

Pricing Labour based Material based

Consumer reaction Spontaneous Delayed

Life Still born Longer

Image Corporate Brand

Focus Customer expectation Customer needs

Inventory Personnel Raw material

Repairs Impossible Possible

Delivery Along with production Separate from

production


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

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


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Variability :

The greater the degree of automation within any

transaction process, the greater the degree of

standardization.

For e.g.

Simple transaction ATMvariation in quality

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

date.


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Demand:

Fluctuating demand since based oneconomic condition of the nation.

For e.g. In boom condition the customer

are demanding and more moneyinvested in bank.


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CLASSIFICATION

OF BANK

COMMERCIAL BANKS

e.g. HDFC

CO-OPRATIVE BANK

e.g.NKGSB


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STRUCTURE OF BANKING

RBI

COMMERCIAL

e.g. HDFC

NATIONAL

e.g. Punjab

CO-OPRATIVE

e.g. SarasvatDEVELOPMENTAL

e.g. IDBI

SHORT

TERM

INDUSTRIAL

LONG

TERMPRIVATE

EXIMAGRICULTURA

L

NABARD


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PRODUCT: The bundle of utilities

-Borrowing/deposit: -Lending:Current deposit. Term loan.Saving deposit. Loan & Advances.Fixed deposit. E.g. Home loanRecurring deposit. Pre & Post Shipment

OverdraftCash CreditClean LoanGuarantors


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Potential

Augmented

Expected

Core


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Core

Deposit, withdrawals, F.D, Easy loan, Interest,Currency, etc.

Expected

Prompt Services, Convenient timing, lessdocumentation, ATM, Debit & Credit Card, DEMAT,etc.

Augmented

Tele banking, Internet banking, Locker facilities,Discounting of Bills, Bills Payment, Money Transfer,Traveller Cheque, etc.

Potential

Bank at home e.g. ICICI, Counselling, Tax Consultant,Gold Credit card, 24hrs banking, etc.


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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 Bank-Interest on FD- 8-10%

COMPETITION Competition Price

based on theservices of thebank.

E.g. ICICI issue ofduplicatestatement RS: 25per page


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The location analysis for banks branches.

Following are factors of determination of

the locations:

Place

Crowded area

Transportation

Visibility

ResidentialArea

Real StateRates

Competitors

IndustrialStructure


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For e.g. ICICI.

March 31, 2000, bank had a network of 81

branches, 16 extension counters and 175ATMs.


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SalesPromotion

Advertising

Personnelselling

OnlineBanking

TeleMarketinge.g. SMS

Word ofMouth

Pamphlets

Hoardings

Print Media


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They also used the Sho rt Message Service

(SMS)

Wireless App l icat ion Protocol (WAP)

Call Centre


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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 anddevelopment 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 regularbasis by IT users support group on the various

enhancements as well as new packages designed for

offering customized solutions to customers.


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Selecting of abank

EnquiryGetting detailedinfo. On various

bank a/c.

Selecting thetype of a/c

Filling the formwith relevantdocuments

VerificationGetting an a/cCreating

Cheques &passbook

Forwarding it tothe customers

Regulardeposits &withdrawals


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The physical evidences include the logo, the layout of the

branch, the passbook, flashy cheque books, thefurniture, the reports, punch lines, other tangibles,

employees dress code etc.


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Based on RATER analysis:

Assurancee.g. Knowledge &

politeness

Tangibles

e.g. clean & ion uniform of the

employees

Empathy

e.g. May I help you

Attitude.

Responsivenesse.g. Teller

Reliability

e.g. Regular

transaction records


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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 servicesSmooth conducting.


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BASE OF BANKING SECTOR


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STRENGTH OPPORTUNITIES

WEAKNESS THREATS


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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.


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Intangibility :

The offerings of the service, insurance, are

free from any products.

Inseparability :

This goes to say that during a transactionthe presence of both the service provider

and consumer is of the highest essential.


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Variability :The policies & its properties will remain the samefor each and every person and also acrosscompanies, but while the transaction is carried outthe qualities of service may vary with each case.

Perishability :

Insurance service offerings cannot be stored. Oncethe policy tenure expire or matured the benefitsgets over.

Simultaneity :

Service offering is produced and consumed theexact same time.


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Life insurance.

General insurance.

Fire insurance.

Marine insurance.

Health insurance.

Property insurance.

Travel insurance.Total permanent disability insurance

Miscellaneous insurance.


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PRODUCT: LIC INDIA

PRODUCT OFLIFE

INSURANCE

Childreninsurance

plan.e.g. Jeevanannurag

Plans forhandicapped.E.g. Jeevan

aadhar

Endowmentassurance plan.

E.g. Jeevanmitra

Money backplan e.g. Jeevan

surbhi 20

Pension plane.g. Jeevan

nidhi

Special plan

Golden jubileee.g Bima gold

Special jubileee.g. Jeevan

saral


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Potential

Augmented

Expected

Core


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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.


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General insurance

Premium

Mortality tables

Expected surplus

Life insurance Life expectancy

age

Medical history


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CHANNEL OF

DISTRIBUTION

Direct selling

Agents

Financialadvisors

Call centres

Partner selling

Bank assurance

Postaldepartment

Selling throughcorporate

Electronicchannel

LIC on internet

Informationkiosks

SMS


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7 Zonal offices

100 Divisional offices

2048 Branch office.


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SalesPromotion

Advertising-T.V-Met life

Personnelselling-agents

Internet(www.licindi

a.com)

TeleMarketinge.g. SMS

Word ofMouth

Publicrelation

Radio-ICICIPrudential.92.5redFm

Print Media-LIC


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Sponso r ing event :

e.g. Max new York life insurance company

sponsored the recent ICC cricket would

cup 2010- India.

Gif ts:

e.g. LIC provides diaries, pens, booklets,etc.

Brochu res, sem inars, etc.


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LIC views people as a key source of competitive

advantage LIC of Indias top public insurance company; it

have just over6,28,301 Agents employees.

Agents are the front stage employees

The attitude and friendliness of the agentsdetermines 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.


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Selecting of aInsurance co.

Enquiry Calls to agentFinancial review

form

Agent suggest 2or 3 policies

Selection of planFilling of

proposals alongwith documents

Agents submits &signed form in theinsurance office

Verifying thedocumentssubmitted

ReconfirmationRegularly

payment ofpremium


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Physical evidence includes:Policy documents, Brochures, Periodic

statement, Renewal Notices, Business

cards, Stationary, Calendars, Diaries,websites.


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Assurance

e.g. Knowledge &

politeness

Tangibles

e.g. Insurance policy documents

Empathy

e.g. May I help you Attitude

and human carrying.

Responsivenesse.g. Responsible for

claim.

Reliabilitye.g. Agent is reliable

in providing inf. Of

policy

Based on RATER

Analysis:


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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 servicesSmooth conducting.


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BASE OF INSURANCE SECTOR


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STRENGTH OPPORTUNITIES

WEAKNESS THREATS


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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.


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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.


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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 regulatorydevelopment authority) was set up on April19th,2000.

This made the conventional Insurance sectorto be more competitive


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The opening of the sector was done to,

Make available long term funds forinfrastructure

Introduce new and innovative products

Make Effective improvement in quality of

service to the customers


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This gave rise to a cutting edge competitionbetween private players and L.I.C.

A Shakeout. Private insurers financial muscle,their professionalism, and the incentives theyoffer has created a shakeout in public sector.

Importance of service: The service factor. Anarea, which never received its desiredimportance earlier was tapped by private

players.


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Aditya Birla group & Sun Life ,

Canada-

LIFE

HDFC and Standard Life, UK LIFE

ICICI and Prudential, UK LIFEMax India and New York Life,USA LIFE

Tata group and AIG, USA LIFE & NON-LIFE

SBI and Cardiff, France LIFE

Reliance with no foreign alliance NON-LIFE


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ssm- b&i sector-mamta rawal

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