Atulkumar R.patil Project

- 1 -To study the potential of the channel and expansion of the distribution channel in
Bhusawal. Area.
PROJECT REPORT ON
“ To Study The Potential Of The Channel And Expansion Of

The Distribution Channel In Bhusawal Area”
FOR
HDFC STANDARD LIFE INSURANCE
SUBMITTED TO
G.B.S institute of management & information research
IN THE PARTIAL FULFILLMENT OF

MASTERS IN MARKETTING MANGEMENT
BY
AtulKumar R.Patil
Masters in marketing management (I.U.V)

2007-08
ATULKUMAR--- HDFC-SLIC
Bhusawal. Area.
CE RTIFICATE
This is to certify that
Mr./ms. ______________________________________________
A student of Masters Degree in Marketing Management (I.U.V) has completed his/her
Project work titled _______________________________________________________
for _____________________________________________________________________
in fulfillment of the partial requirements of the G.B.S Institute University of I.U.V the
course.
The project work and the enclosed report are completed as per the requirements and to
the satisfaction of the project guide.
Bhusawal. Area.
Date: h . 2008
CERTIFICATE
To Whomsoever It May Concern
This Is To Certify That Mr. AtulKumar R.Patil, Has Successfully Completed His
Summer Project Titled “To Study The Potential Of The Channel And Expansion Of The
Distribution Channel In BHUSAWAL. Area” For H.D.F.C. Standard Life Insurance
From 15th June To 15th Aug 05 In Partial Fulfillment Of Course “Master In Marketing
Management” From G.B.S Institute Of Management & Information Research.
We wish him all the best for all the future endeavors.
Best regards,
(Authorized signature)
Bhusawal. Area.
ACKNOWLEDGEMENT
A project usually falls short of its expectations unless guided by the right person at the
right time. Success of a project is an outcome of sincere efforts, channeled in the right
direction, efficient supervision and the most valuable professional guidance.
This project would not have been completed without the direct and indirect help and
guidance of such luminaries. They provide me with the necessary resources and
atmosphere conductive for the healthy learning and training..
At the outset I would like to take this opportunity to gratefully acknowledge the very kind
and patient guidance I have received from my project guide Mr. Tanmay Bhale. Without
his critical suggestion and evaluation at every stage of the project, this project could not
have reached its present form. In addition, my internal guide Mr. Anjum khan has
critically evaluated my each step in developing this project report.
Lastly I would like to thank all the members of HDFC SLIC and my colleagues who gave
me fruitful information to finish my project.
Mr.: Atulkumar
R.Patil
Bhusawal. Area.
EXECUTIVE SUMMARY
Introduction
Summer training in business organization is to fuse among student a sense of critical
analysis of the real managerial situation to which they are exposed. This gives them an
opportunity to apply their conceptual, theoretical & imaginative skills in real life
situations and to evaluate the results thereof.
HDFC is a name renowned not only in housing but also in banking and insurance sector.
HDFC Standard Life Insurance is now a brand image in private insurance sector. While
two month project, I visited specialized areas to recruit insurance advisor and to find
market potential of other public sectors as well as private sectors. This report is the
written account of what I learned and experienced during my training.
Objectives
Management objectives
 To grow through diversification by leveraging off the existing client base.
 To transform ideas into viable and creative solutions.
 To develop close relationships with individual households. Research objectives
 To gain familiarity with a phenomenon or to achieve new insights into it.
Bhusawal. Area.
 To recruit Insurance Advisor for HDFCSLIC on the presence of various
competitors and difficult traditional market situation.
Sub objectives
 To find out new way of sales promotion techniques as well as recruitment
techniques also and distribution network to generate business.
 To find out the attitude of new customers and existing customers towards
HDFCSLIC
Research Methodology
The research was an exploratory type of research, which aimed at estimating the true
potential of the market concerned and also an analysis regarding the market potential.
The tools used for this purpose were questionnaire and telephonic interviews. The
research methodology comprised of the following
 Problem identification
 Research objectives
 Developing research plan
 Data collation
 Data processing and analysis
 Findings
 Recommendations
 Conclusion
Bhusawal. Area.
Key Finding
 Expansion of the channel of Financial Consultants is not very attractive.
Conclusion
 Alternate channels should be developed in order to increase the reach of
HDFCSLIC products.
Limitations
 The prospects were not willing to invest the required fees for the training
provided by HDFCSLIC.
 Most of the respondents were pressed for time due to pre-occupation
Recommendations
 HDFCSLIC should try to enhance the Internet channel.
 Bancaasureance.
Bhusawal. Area.
INDEX
INTERODUCTION 4
INDUSTRY PPROFILE & ANALYSIS 5-19
COMPANY PRIFILE 20-49
LITERATURE SURVEY 50-55
OBJECTIVE 56
RESEARCH METHODOLOGY 57-67
FINDING AND ANALYSIS 68-83
LIMITATION 84
CONCLUSION 85-86
RECOMMENDATION 87-88
BIBLOGRAPHY & QUESTIONNAIRE 89
Bhusawal. Area.
INTRODUCTION
Most producers do not sell products directly to final users. Between them stands a set of
intermediaries performing a variety of functions. A marketing channel is a set of
interdependent organizations involved in the process of making a product service
available for use consumption. It is also a system of relationships among businesses that
participate in the process of buying & selling products.
The project was undertaken, with the objective of expanding the marketing channel of
HDFCSLIC. Thus for the attainment of the objective a questionnaire was prepared. The
questionnaire involved questions relating to an individuals age, qualification, income,
social base etc. This information was thus helpful in identifying an individual’s interest in
HDFCSLIC. It also provided information relating to whether the marketing channel had
any prospects of expansion or not.
The purpose of the project was to study the population, determine the characteristics and
thereby draw an inference, to know how effective and efficient the channel is. The project
though had to face the constraints like lack of time, interest and also the problem of
communication, which led to a low conversion rate of likely prospects.
Thus as a recommendation to refine the channel and make it more effective and efficient,
Internet channel and banc assurance could be used.
Bhusawal. Area.
INDUSTR Y PR OFIL E AN D AN ALYSI S
Development of Insurance Sector:
Insurance is one of the important instruments designed to deal with risk through sharing.
Insurance is related to protection of the economic value of assets. Every asset has a value.
The asset would have been created through the efforts of the owner in the expectation that
either through the income generated there from or some other output, some of his needs
to be met. However if the asset gets lost earlier, being destroyed or made non functional
through an accident or other unfortunate event, the owner and those deriving benefits
their from suffer. Insurance is a mechanism that helps to reduce such adverse
consequences.
In this simplest aspect it is imbues with two fundamental characteristics:
a) It transfer risk from one person to a group, and

b) It facilitates sharing of losses, on some equitable basis, by all members of group.
The importance of insurance is two folds.
Bhusawal. Area.
From Individual’s point of view:
Insurance is an economic device whereby the individual substitutes a small certain cost
(the premium) for a large uncertain financial loss (the contingency insured against) that
would exist if it were not for the insurance.
From the social point of view:
Insurance may be perceived device to be an economic instrument, which reduce and
eliminates risk through the process of combining a sufficient number of homogeneous
exposure into a group and makes the losses predictable for a group as a whole.
Chronological Development Of Insurance Sector:
1818
Establishment of British firm Oriental Life Insurance in Kolkata.
1823
Establishment of Bombay Life Insurance in Company.
1912
The Indian Life Assurance Companies Act 1912.
1928
The Indian Insurance Companies Act was enacted the Government Collect statistical
information about both life and non-life insurance business transacted in India-by-India
and foreign insurers.
Bhusawal. Area.
1938
The 1928 Act was consolidated and amendment by the Insurance Act with effective
control over the activities of insurance.
1950
The Act was amended resulting I in far reaching changes in the insurance sector,
including a statutory requirement of equity capital for companies carrying on Insurance
business, ceiling on the shareholdings in such companies, stricter control on investments
submission of periodical returns relating to investments and such other information to the
controller.
1956154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on
life insurance business in India mostly concentrated in Urban Areas
On January 19 the management of life insurance business of 245 Indian and provident
societies, then operating in India, was taken over by the Central Government. An Act of
Parliament,Viz. LIC Act 1956, with a capital contribution of Rs. 50 million, formed Life
Insurance Corporation in September 1956. One justification of the nationalized was the
need to raise the funds for rapid industrialization and this justification still hold for
liberalization of Insurance Sector for a faster development of infrastructure and basic
facilities in India.
Bhusawal. Area.
1971
Management of Non-life insurers was taken over by the Central Government as a prelude
to nationalization.
1972
Watershed in the history of General Insurance Business in India. General Insurance
business was nationalized with effect from Jan 1, 1973 by the General Insurance Business
(Nationalization) Act, 1972 Prior to 1973, general insurance was urban centric, catering
mainly to the needs of organized trade and industry 107 insurers including branches of
foreign companies operating the country were amalgamated and grouped into four
companies, viz the National Insurance Company Ltd. The Oriental Insurance Company
Ltd, The New India Assurance
Company Ltd, and The United Insurance Company Ltd, GIC was incorporated as a
company in 1972 and commenced business on January 1st 1973.
The Government subscribed to its capital that, in turn, subscribed to the capital of the
four companies. GIC was designated as the reinsure under the Insurance Act, to which all
the domestic insurers were obliged to cede 20% of the gross direct premium in India. In
order to ensure maximum retention in the country and to secure the best terms from
foreign reinsures, GIC and its subsidiaries have a common program for reinsurance
cessions.
Bhusawal. Area.
THE ROLE OF MALHOTRA COMMITTEE

1993: First step To Liberalization Malhotra committee termed to recommend measures to
deregulate Indian Insurance Sector. The following recommendation was forwarded to
liberalize the Insurance sector.
1. The private sector should be allowed to enter the insurance business, but no
Single company will be allowed to transact both life and general insurance
business. The number of entrance should be controlled.
2. The new entrants shouldth write a specified portion of their business in rural
areas.
3. Minimum paid up capital of new entrant should be 100 crores. The promoters
Holding in a private business company should not exceed 40% of the total.
However, if the promoters wish to start with a higher holding, they should be
permitted to do so provided their holdings is brought down to 40% within a
specified time through public offerings.
Bhusawal. Area.
4. If and when the entry of foreign insurance companies is permitted, it should be on
a selective basis. They would be required to float an Indian company for the
purpose, preferably as a joint venture with an Indian partner.
5. The controller of insurance should effectively start functioning before the Private
sector is allowed to enter the insurance field.
6. Regulatory and prudential norms as well as conditions for ensuring level playing
fields among insurer should be finalized early so that intending entrants are aware
of to insure that the life insurers do not neglect the small man of rural business
and general insurers have balance portfolio and
7. Though the nationalized insurance companies are in a position to face

Competition, it is essential that they quickly upgrade their technology, recognize
themselves on more efficient lines.
The Liberalization of the insurance sector has been the subject of much debate for some
years. The policy maker were in the catch of twenty-two situation where in for own they
wanted competition, development and growth of this insurance sector which is extremely
essential for channeling the investments in the policy makers had the fears that the
insurance premed which are substantial, would slip cut of the country and wanted to have
a cautious approach of opening for foreign particular in the sector. IRDA came into
picture with its important provision.
Bhusawal. Area.
IMPORTANT PROVISION OF IRDA ACT

IRDA have laid provision regarding Insurance Industries. Some of the important
provisions are:
 Foreign equity has been capped at 26% No separate provision for NRIs and FIIs
has been made in the bill.
 The bill grants domestic insurance companies ten-years time to reduce the equity
to 36% level. It means that the Indian promoter will have to dilute its stake in the
private insurance firms from 74% to 26% in ten years.
 The minimum capital has been prescribed for life and general insurance at Rs. 100
froes and Rs. 200 crores for re-insurance firms. The government has also set
minimum solvency and deposit norms. The solvency margins are Rs. 50 crores for
life Insurance business. The minimum deposits to be maintained by life insurers
has been set at 1 percent of the gross premium received in the year, subject to a
ceiling of 100 crore.
Bhusawal. Area.
The bill also requires the insurer to maintain separate account relating funds of
Shareholders and policyholders. It further stipulates that the funds of the
Policyholders should be retained within the country, thus ensuring that the Indian
Policyholders funds don’t find their way outside India.
 Rural Insurance is being made mandatory but Insurance Regulatory

Development Authority (IRDA) would set the percentage of rural to Urban
insurance.
 The investments norms are applicable to the nationalized insurers will also
apply to the new entrants. The investment guideline ensures 25% of the
investments in liquid assets to ensure against asset-liability mismatches.
 It denies the insurance companies any investment in private limited

company; the investments need to be restricted to 10% of the insurer’s
inventible corpus.
 Presently 755 of investments are under the direct category. The remaining
25% can be placed with corporate in the form of loans etc. besides; no
investments in foreign securities would be allowed. The divestment of the
United Kingdom Government securities for LIC and GIC is evident of the
fact that even the government backed Insurance Institutions would be
allowed to invest in foreign securities.
Bhusawal. Area.
LICENSING OF INSURANCE AGENT, (Regulation, 2000)
The IRDA has announced regulation pertaining to licensing of insurance agent, which has
come into force with effect from 14th July 2000.
Qualifications An insurance agent should satisfy the following
Requirements:
Posses a minimum educational qualification of 12th standard or equivalent .
Completely one hundred hours (100) of practical training in life insurance business, from
an approved institution, where the applicant is seeking a license for the first time to act as
an instance agent. This training requirement is relaxed in certain situation where the
applicant possesses professional qualification.
Pass the pre-recruitment test, based on an examination conducted by the Insurance

Institute of India (III) or another approved body.
Have the requisite knowledge to solicit and procure insurance business.
Be capable of providing necessary service to the policyholders.
Bhusawal. Area.
Agent licensed before the regulations were notified will be exempted form the
requirements pertaining to minimum educational qualifications, practical training and
certificate requirements.
We would, however, be happy to provide them training to enhance their skills should they
wish to associate with us.
THE AGENCY SYSTEM
Clause 3 of the regulation provide that an agent can represent only one life insurer or one
general insurer or both, at a time.
This implies that the agent will have to terminate his/her contract, if any, with an existing
Life or general insurer before joining another life or general insurer.
A person having both agencies, life and general, shall be known as a Composite Agent.
In addition to this , all licenses renewed prior to notification ot the new regulations will
be valid for a period of three years.
The training referred to in the regulations, will be initially organized by HDFC
STANDARD LIFE INSURANCE COMPANY LTD. This training will enable the
applicants to qualify for the pre-recruitment examination to be conducted by the
Insurance Institute of India (III) or any other approved examination body.
Bhusawal. Area.
COMMISSIONS
The rewards of selling Insurance are lucrative:
The limits on commission as provided in the Insurance Act
1938 are as under:
Type of Policy Commission Limits
Immediate Annuity 2% of premium
Deferred Annuity 2% of premium
(Single premium)
Deferred Annuity 7.5% of the 1st year’s premium.
(Regular premium) 2% of each renewal premium.
All Other A maximum of 40% of the first year’s
Cases(Endowment, premium.
Money back, etc) A maximum of 7.5% of the 2nd & 3rd
year’s premium.
A maximum of 5% of the renewal
premium.
Total commission payable in the first 5
years cannot exceed 60% of the annual
premium payable on the policy.
 Here commission structures will be competitive
Role of The HDFC Standard Life Agent – The Consultant
The company’s agent would be a professional salesperson and
would be given the designation of a “Consultant” by the company.
Bhusawal. Area.
The consultant would act as a financial advisor to the customer.

He/She would:
 Analyze the customers’ financial requirements.

 Help them plan their goals and
 Recommend appropriate solutions, so that the customer is
able to meet his/her financial objectives in the most optimum
manner. He/She shall provide support to customers on an
ongoing basis.
The company would also support the Consultant by the repuires
training and information so that he/she is able to provide the best
service to customers.
Thus, the company’s Consultant would have a far wider role to
play than “the typical Insurance Agent”.
Corporate Agent – The second distribution channel:
Who can be a Corporate Agent?

According to the Licensing of Insurance Agent Regulation, 2000,
‘Corporate Agent’ is defined as ‘a person other than an individual
as specified in clause (1), i.e. a firm , a company formed as defined
in clause (4A) of Section 2 of the Act’
Present Regulations
Bhusawal. Area.
Tied agency with only one life insure or general insure or both, at a
time.
All directors and employee in the business of soliciting or carrying
out insurance business need to undergo the necessary practical
training so as to hold an insurance license issued by IRDA.
The memorandum of Association or the Partnership Deed should
include as its main object the carrying out or soliciting of insurance
business.
Why should be a Corporate Agent with us?

 You can offer an important financial product to your silent.
 It provides you with another major revenue stream.
 You can leverage the promoters brand equity.
 You can provide security to your clients by association with
HDFC Standard Life.
 You will be offering superior service standards.
 HDFC Standard Life offers economies of scale
Who are we looking for?
A person having-
 A well-established infrastructure and client base.
 A good background of financial services/experience in the
distribution of financial products.
Bhusawal. Area.
 An excellent geographical reach.
Potential in the Insurance Sector
Scope of Insurance Business in India:

The Malhotra Committee estimated that the insurance operation
penetration in India is to the extent of about 25% of insurable
population. As of 1999-2000, LIC has about 10 crores policies in
force, which contribute a Premium of about 6% of the GDS (Gross
Domestic Savings) of household in India.
Based on a report by the Confederation of Indian Industries (CII),
it is anticipated that this figure of 10 crores policies in force is
likely to double in the next decade. By the year 2010, the premium
income is expected to account for 18% of the Gds, amounting to
Rs. 5,12,000 crores.
Bhusawal. Area.
Bhusawal. Area.
HDFC STANDARD LIFE INSURACE

MAN WITH A MISSION
An extract from the book ‘A Tribute’

If ever there was a man with a mission it was Hasmukhbhai
Parekh, our Founder and Chairman Emeritus, who left this earthly
abode on November 18, 1994.
Born in a traditional banking family in Surat, Gujarat, Mr. Parekh
started his financial career at Harkisandass Lukhmidass – a leading
stock broking firm. The firm closed down in the late seventies, but
long before that, he went on to become a towering figure on the
Indian financial scene.
In 1956 he began his lifelong financial affair with the economic
world, as General Manager of the newly formed Industrial Credit
and Investment corporation of India (ICICI). He rose to become
chairman and continued so till his retirement in 1972.
At the ripe age of 60, Hasmukhbhai started his second dynamic life, even
more illustrious than his first. His vision for mortgage finance for housing
gave birth to the Housing Development Finance Corporation – it was a
trendsetter for housing finance in the whole Asian continent.
He was a true development banker. His building up HDFC without any
government assistance is itself a brilliant chapter in financial history. His
Bhusawal. Area.
wisdom and warmth drew people from all walks of life to him, for advice,
guidance and inspiration.
A soft-spoken man of grew words, Mr. Parekh nevertheless held strong
and definite views with a quiet conviction. He was always concerned with
building bridges,, improving and encouraging communication between
people.
He was also a writer in his own right. There are over 200 published
articles by him, full of incisive comments on finance and economics. In
1953 he brought out a volume called: The Bombay Money Market. Ir
detailed the intricate working of the Indian money market. His works in
Gujarati – Hirane Patro, Hirane Vandhu Paro – occupy pride of place in
Gujarati literature. In 1992, the Government of Indian honored him with
the Padme Bhusnan Award. The London School of Economics & political
science conferred on him with the Padma Bhushan Award. The London
School of Economics & political science conferred on him an Honorary
Fellowship.
But there was much more to the man than his financial genius. In his own
unassuming way, Hasmukhbhai devoted all his life to raising resources for
philanthropic causes. He was one of the Founder Members of the Center
for Advancement of Philanthropy, and its Chairman till 1993 he till active
interest in the Bombay Community Pubic Trust. Designed spastically to
serve the needs of the city’s underprivileged citizens.
Bhusawal. Area.
When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he

said: “Taking over form H.T. Parekh is a formidable task; his vision…
brought about not only an institution, but an entire concept which has
proved itself to be of lasting importance.”
In his last years, developments in the financial sector brought him some
measure of satisfaction. Says ICICI Chairamn, N. Vaghul: “The most
gratifying aspect about his life is that values he cherished all his life, came
into reality in the last years… opening up the financial sector, and
deregulation of lending rates were issues he stood for all his life, and this
happened before hipassed away.”
Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the
financial wizard, but also much more so, the man. The only and best
tribute we can pay to such an individual is to try and follow in his
footsteps, keeping in mind his high ideals and philanthropic outlook
OBJECTIVE & BACKGROUND

Housing Finance Sector
Against the milieu of rapid urbanization and a changing socio-economic
scenario, the demand for housing has grown explosively. The importance
of the housing sector in the economy can be illustrated by a few key
statistics. According to the National Building Organization (NBO), the
total demand for housing is estimated are 2 million units per year and the
total housing shortfall is estimated to be 19.4 million units, of which
Bhusawal. Area.
12.76 million units is from rural areas and 6.64 million units from urban
areas. The housing industry is the second largest employment generator in
the country. It is estimated that the budgeted 2 million units would lead to
the creation of an additional 10 million man-years of direct employment
and another 15 million man-years of indirect employment.
Having identified housing as a priority area in the Ninth Five Year Plan
(1997-2002), the National Housing Policy has envisaged an investment
target of Rs. 1.500 billion for this sector. In order to achieve this
investment target, the Government needs to make low cost funds easily
available and enforce legal and regulatory reforms.
Background
HDFC Was incorporated in 1977 with the primary objective of
meeting a social need that of promoting home ownership by
providing long-term finance to households for their housing needs.
HDFC was promoted with an initial share capital of Rs. 100
million.
Business Objectives
The primary objective of HDFC is to enhance residential housing
stick in the country through the provision of housing finance in a
systematic and professional manner, and to promote home
ownership. Another objective is to increase the flow of resources to
the housing sector by integrating the housing finance sector with
the overall domestic financial markets.
Bhusawal. Area.
Organizational Goals
HDFC’s main goals are to
Develop close relationships with individual households

Maintain its position as the premier housing finance institution in
the country
Transform ideas into viable and creative solutions
Provide consistently high returns to shareholders
To grow through diversification by leveraging off the existing
client base.
SOCIAL INITIATIVES
The year 2004-05 saw HDFC making renewed efforts in fulfilling
its social commitment by way of several ongoing as well as new
initiatives. The latter included innovative financing of slum up-
gradation and low-income housing projects, dialoguing with key
stakeholders on policy issues, responding to the tsunami tidal wave
disaster and staff volunteering and participation in varied
community development activities. HDFC also gained special
recognition for its corporate social responsibility (CSR) function in
the form of winning the Economic Times Corporate Citizen Award
for 2003-04.
Shelter Assistance Reserve
Bhusawal. Area.
During the year, the Shelter Assistance Reserve continued to play

its role of participating in and supporting various meaningful
development initiatives by extending grant funding over 135
NGOs, philanthropic and boundary agencies, local bodies and
others. The overall utilization effected out of the Reserve for the
year 200405 stood at Rs. 497.36 lacs and its segment-wise break-
up is highlighted in the chart below:
Bhusawal. Area.
Cited below are a few case examples reflecting the general

utilization of the reserve?
Human Development Center Trust
It started in 2002 with a mere 16 children, 7 teachers and 2
classrooms, Now, three years later, the Little Angels School, run
by the Human Development Centre Trust has 78 children on its
rolls (with another 80 on the waiting list), 35 staff and 5
classrooms. This school is for children who are differently made,
yet no different from us. It caters to children facing problems such
as hyperactivity, slow learning, attention deficit disorders, dyslexia
and other such physical and mental handicaps.
The school takes in children from all strata of society offering pre-
vocational training, speech therapy, basic education and vocational
guidance to the students. Each child is offered a unique
programmed based on his/her current status of mantel and
physical development. Programmers that motivate him/her to go
beyond their perceived level of competencies. The focus is on
trying to make the children self-reliant, for instance to able to
operate a bank account or even to shop for essential commodities
on their own. Currently the school operates from the premises of a
municipal school in Bandra, Mumbai. It has classes from
Kindergarten to the 10th standard and some of the student and some
of the students has appeared for the Open School Examination in
Bhusawal. Area.
New Delhi. HDFC has recently got involved with the school’s
activities and has funded the Trust towards improving the school’s
facilities and partly supporting staff expenses.
A glimpse into Chetna’s day…
It is estimated that there are more than 400,000 deaf-blind people
throughout the country. It works in partnership with local
organizations, deaf-blind children and adults, their families and
professionals to ensure that everyone challenged with this
disability has access to advice, opportunities and support.
HDFCs Chas partnered with Sense India to support the dear-blind
population in the states of Tamil Nadu and Uttar Pradesh along
with ten local NGOs. The aim is to reach out to the children in
these states who are not getting any kind of services and to
integrate them into local schools with children who have residual
vision and hearing.
Help Age India
Although ageing is an irreversible biological phenomenon, in
today’s times it is associated with denial, depression, loneliness
and a certain degree of alienation from mainstream family life.
Further, with gradual improvement in public health
And standard of living, the average longevity of the people is
increasing; the elderly populace is in fact one of the fastest flowing
sections of society in India. The major concerns, however, remain,
Bhusawal. Area.
to be security, both financial and physical, access to health and

support systems and incidence of violence and abuse
Established in 1978 with support from Help the aged in the United
Kingdom, help Age India is working for the cause and care of
senior citizens, with the ultimate aim of empowering them to take
decisions pertaining to their own lives. Help Age supports almost
all the Old Age Homes in the country. It runs various programmers
to make life easier for the elderly with free cataract operations
performed in villages, the adopr-a-gran scheme, mobile Medicare
units all over the country, encouraging economic independence
measures, etc.
During the year, HDFC has partnered Help Age India by
sponsoring 200 free cataract operations in the interiors of
Rajasthan and Gujarat. In support of the elderly populace in the
country, HDFC also funded Dignity Foundation, an NGO working
with senior citizens, to come out with a calendar in Braille.
Population First
• India has 16.7% of the worked population but only 2.45% of
the world’s land resources and 4% of the world’s water
resources.
• Over the last 10 years, India added 180,627,359 persons to its
population, equivalent to the population of Brazil.
Bhusawal. Area.
• Ninety-three out of every 1,000 children in India die in the

first five years of their life.
• One in four infants in India are born with a low birth weight
– less than 2.5 kilograms.
The statistics are grim and what makes it worse is that vary little is
known of what it makes to be a part of such horrific numbers.
Population first is working to support the programmers of the
Government towards population stabilization in the country. The
organization engages corporate houses, the media and civil society
on issues concerning health and population in India. The mission is
to sensitize the country into accepting that population growth is a
key problem facing country today.
Population first has taken up Thane District, Mumbai as one of its
project areas. The project focuses on issues relating to awareness,
and seeing awareness translate into action. HSFC has been an
active supporter of Population First and its activities since its
inception in 2002 and is currently funding the launch of a project
for the girl child called “Laadli” Mobile Creches.
A typical day at a Mobile Creches Center:
The Mobile Creches center id located on a construction site, next
to the “jhuggis” where the workers live. No gardens or
playgrounds for the children are here, only gaping foundation pits,
piles of bricks, and a dry, cement dust in the air. The center is a
Bhusawal. Area.
temporary structure, about 250 square feet in size – walls of bare

brick and a roof of tin sheets. The room is divided in to three
parts; the crèche for children under 2 years, the balwadi (pre-
school) for the 3-5 year olds, and non-formal-education (NFE) for
6 years and above. Bright collages give the room an sair o f
festivity, Modesrt though it is, the center is a triumph for Mobile
Creches.
By 9:00 a.m., the mothers arrive to leave their babies for the day…
The Creche (0 -2 yrs old): The centering-charge manages the cent
with the help of four other childcare workers. The time is spent
feeding the crèche children and taking care of them.
The Balwadi (3 -5 yrs): The children in this section are kept busy
in small groups. T-Free play, story telling exercise etc. keeps the
children occupied.
NFE (6 -12 yrs old): The older children are taught some
communication skills, basic English mathematics general
knowledge etc.
The centre is bustling with activity to 4.30 p.m. when the mothers
start arriving to pick up their children. Over 450 such day-care
centers have been step up on
Building sites as well as slum clusters in Delhi, Mumbai and Pune
for children of migrant construction workers. HDFC has been
consistently supporting Mobile Crèches with grant funds for
Bhusawal. Area.
several years, including a day-care center in a slum at Dakshinpuri,

New Delhi since 2002.
Rashtriya Gramin Vikas Nidhi (RGVN)
RGVN descries itself as an organizational innovation in support of
social action. Set up in 1990 and headquartered at Guwahati,
Assam, RGVN seeks to improve the quality of life of the urban,
rural and trivial and trivial poor in the northeast region and other
eastern states by providing financial, technical, managerial and
other support service. Despite and militant conditions, RGVN has
been able to make its mark as a professional development support
agency.
RGVN does not restrict it self to a defined area of activity.
Typically, any activity that has the potential to generate sur5plus
and raise the income levels of the poor in a self-sustaining way, is
to RGVN an activity that needs to be encouraged., The principal
activities undertaken over the past decade have been promoting,
supporting and building the capabilities of voluntary agencies and
local NGOs that are engaged in development; running a savings
and credit programmed; low cost housing; and more recently,
initiating work in the field of education.
HDFC has been associated with RGVN since 1997 in the area of
housing loans for the economically weaken r section households.
In response to the flood situation in Assam during July 2004,
Bhusawal. Area.
RGVN engaged in several flood-relief activates. As a long-term

measure, HDFC has sponsored the construction of an emergency
shelter in Morigaon District. The 1,000 sq.ft. Shelter has been
constructed in the premises of an educational institution and can
accommodate unto a hundred flood victims in times of need. At
other times, it would faction a multi-purpose community facility.
EMOPLOYEE INITIATIVES
The employees a HDFC are invariably enthusiastic to participate in
and in organizing social activates whenever such and opportunity
arise, During the year, HDFC staff at Bhubaneshwar, Aurangabad
and Andheri (Mumbai) organized dreading and painting
competitions under the banner of “The Little Artist Contest” for
primary school children. HDFC was also the exclusive sponsor of
the ‘Kids World Exhibition 2004’ held in Mumbai in June 2004,
which included the showcasing of artifacts from the NGO Child
Relief and You (CRY).
The end of the year saw an Origami workshop being conducted by
the Chamber office for the students of St. Anthony Girls’ High
School. Origami is an art that gives life to paper and imagination
and engaging in it is a well-known way to calm the mind and
enhance creativity and concentration. The Bangalore office lent
support to a social campaign organized by school children in
association with an NFO – Buoyancies. The campaign armed at
Bhusawal. Area.
creating awareness on the issues of environment, education and

population explosion.
The Nashik office hosted a blood donation camp with eminent
doctors supporting the cause by spreading awareness about blood
donation myths and facts. The camp was a success and saw
participation from HDFC customers as well.
Mumbai Marathon
On your mark: get set: go…
An average Mumbaikar spends much of his time running after
either local trains or buses; however, January 16, 2005 gave
thousands of Mumbaiites one more reason to run – the Mumbai
Marathon 2005 – reflecting the zealous spirit of the city.
Not to be left behind was our was our enthusiastic staff from the
Mumbai region. 75 HDFC employee formed th ‘HDFC Team’ to
run for The Akanksha Foundation, an NGO involved in the
education of and creating opportunities for slum and street
children. The Vasundhara Vriksh Vanwadi Jalsinchan Bikas
Sahakari Mandali Ltd. (VVSM) or the ‘ Vasundhare Cooperative
Society’ in short, was promoted by the Dharampur Utthan Vahini
(DHRUVA), an associate organization of BAIF Development
Research Foundation. DHRUVA is a community-based yet
professional organization set up in 1995 for sustained
intensification of BAIF’s wadi-initiative, a comprehensive rural
Bhusawal. Area.
development prigramme in the tribal villages of Bansda block

(district Balsad) in southern Gujarat. The VVSM is a locally
managed farmers’ the chief guest, Ms Anu Aga, Director – thermal
Ltd., handing over the Trophy for the first prize to SAATHI, an
NFO form Mumbvai co-operative society who have come together
with the aim of owning a “Wadi” (a small orchard, developed on
wastelands) each and then jointly cultivation, processing and
marketing their produce, Most of the farmers specialize in
cultivation mangoes. The then also process the mangoes to deliver
packaged products such as pickles, mango-pulp, jams and squash.
VVSM and DHRUVA initially approach HDFC IN June 2000 with
a proposal to finance their miscellaneous funding requirements.
HDFC sanctioned a loan of Rs. 49.28 lacs under the MFF,
structured flexibly with a term loan component and a working
capital component having quarterly and half- yearly repayments.
The loan also allowed a moratorium on principal for six months.
Subsequently, HDFC advanced similar loans of Rs. 30 lacs in May
2002 and Rs. 40 lacs in April 2003. The loan funds are utilized
towards bulk purchase of mangoes at standard rates form the
farmers. The mangoes are then sorted for immediate processing
and storage. The family members of the farmers are employed in
processing of these mangoes into pickle and pulp. These by-
products are then branded and sold under the banner of
Bhusawal. Area.
‘Vrindaven’, Apart from generating profits for the farmers the

loans have also ensured employment during off seasons. During
the year, HDFC sanctioned and disbursed another loan of Rs. 36
lacs, taking the cumulative disbursements to the co-operative to
Rs. 156 lacs.
Grameen Crafts first approached HDFC in early 2001 for a
working capital loan of Rs. 8.17 lacs to strengthen their operations
in the area of handloom and handicraft (ceramic) products. The
loan tenor of three years from HDFC allowed the agency to
revolve the funds for expanding these activities. With their
successful marketing and sound performance in repayment as well
as implementation, HDFC had no hesitation in approving a second
loan of Rs. 12 lacs in December 2002 towards export orders for
textile, ceramic (pottery) and leather products. The associated
artisan producer groups have benefited with an average income
growth ranging from 30% to 60%, besides improved and safe
working conditions and insurance cover. During the year, HDFC
Sanctioned a third loan of Rs. 30 lacs (against project cost of Rs.
55 lacs) of which Rs. 18 lacs stood disbursed as on March 31,
2005.
Ainancing Slum Rehabilitaion and Up-gradation
Ganesh Nagar ‘d’ CHS at Mahalatme, Mumbia
Bhusawal. Area.
A number of residents are employed as Grade IV staff with the

municipal corprtation and some work in the private sector too.
However, due to the very high denstities and avsence of proper
sanitation and drainage infrastructure, the living conditions are
rather sub-human, similar to the larger slums surrounding it. Most
of the other slum-dwellers in the area and their co-operatives have
decided to sallow an outside builder to come and redevelop their
sites under the state government’s Slum Rehabilitation Scheme.
The SRS on the other hand could successfully motivate the Ganesh
Nagar ‘S’ Co-operative Housing Society (also an outcome of SRS’
efforts) to put themselves into the developers’ shoes and take
charge of the implementation themselves.
The housing project envisages construction of three buildings with
a total of 520 residential and commercial units, each admeasuring a
carpet area 225 sq.ft. of these 416 units are meant for the members
of the co=operative including the incentive area allowed to the
NGO and the CHS for assuming the role of a developer. The
remaining 104 units being the free sale portion comprise shops and
apartments which can be sold to subsidize the cost of construction.
Sue to the high density, the sale area on site was bound to be very
little, and therefore transferable development rights (TDR) would
form a majo revenue stream for the project. The total project cost
Bhusawal. Area.
of approx. Rs. 950 lacs is to be recovered from the sale of slum-

TDR and the free-sale portion.
HDFC has been incolved with this project since 2002, when the
SRS and the co-operative were doing the groundwork on social
mobilization, obtaining building permission indentifying a
contractor eith expertise in low-cost construction and assessing the
economic feasibility of the project. In order to ease the stretched
cash flows and improce the ocverall viability, HDFC suggested a
self-help approach wherein each member would contribe an
amount of Rs. 50,000-65,000 towards the construction cost – with
the understanding that any surpluses at the end of the project shall
be shared equally. HDFC held several rounds of discussions with
SRS and the CHS managing committee to determine an acceptable
implementation framework and a suitable financial plan, which
was finally agreed upon by all the slum residents in their general
body meeting.
The construction activity has been spit into three separate phases
(i.e three buildings) to be completed in an estimated 18-24 months.
HDFC initially approved and disbursed a loan of RS. 20 lacs to the
SRS for the preliminary expenses of Phase I. Subsequently, HDFC
sanctioned a line of credit of Rs. 100 lacs to the Fanesh Nagar ‘D’
CHS, funds from which can be drawn and repaid anytime during
the term of 24 months. In the absence of a conventional security
Bhusawal. Area.
such as the mortgage of the land or constructed units, HDFC

approached CORDAID, a Dutch donor agency to partly guarantee
this line (up to Euro 1,50,000) against the payment of a guarantee
commission. So for, Rs. 25 lacs has been disbursed out of the line
and Phase I is now nearing completion.
SEWA’s Parivartan initiative at Ahmedabad
The “Parivartan Slum Up gradationProgramme” of the Gujarat
Mahila Housing SEWA Trust (better kinown as MHT, a sister
organization of the Self-employed Women’s Association) was
launched in 1995. Also kinown as a slum-networking project,
Privates brings basic infrastructure services, including water and
sanitation, in an affordable and sustainable way to the slums and
chawls of Ahmedavad city. The idea is to forge a tri-partite
collaboration, between the Ahmedabad Municipal Corporation
(AMC),the target communities (slum residents organized with
MHT facilitation) and the private sector.
This partnership envisages a cost sharing mechanism for the
provision of following basic urban services: paving internal
reads.underground sewerage link and water supplu to individual
households. Storm water drainge street linghing and solid waste
management. The core philosophy is to recognize that the
community can be an informed client willing to pay for the initial
Bhusawal. Area.
costs and maintenance of these services and also participate in their

design and implementation.
HDFC has been associated with SEWA,SEWA Bank and their
affiliate MHT for over a decade through funding of various
projects involving micro-enterprise development, low income
housing and earthquake rebuilding measures. Taking this
relationship forward, in June 2004, HDFC sanctioned a line of
credit of Rs. 35 lacs to the MHT, allowing flexible drawls and
repayments. To finance the expansion of the privation programmer
in five slum pockets of Ahmedabad, expected to benefit over 600
households.
The line operates similar to bridge loan to meet the ongoing
construction expenses of the MHT (which also functions as a
contractor) for executing the work orders issued by the AMC. The
AMC then reimburses these costs after inspecting the completed
civil work, which forms the repayment to HDFC. An impact
assessment study carried out by SEWA Academy highlights the
overall empowerment of the residents and positive developments
in the area of health and hygiene, primary education, income and
productivity, social status and also a better relationship with other
local authorities. HDFC is now extending this line of credit for
another year, which may be useful to MHT in replication this
initiative in the cities of Surat and Vadotara.
Bhusawal. Area.
In January 2005, the MHT together with the Ministry of Urban

Employment and Poverty Alleviation organized a two-day
symposium on the “National Slum Development Programme:
Achievements and Opportunities.” HDFC contributed a policy
paper titled ‘ Issues in Financing Slum Infrastructure’ that was
published as part of the conference literature.
Responding to the Tsunami Disaster
The tsuami catastrophe of December 26,2004 has caused
unprecedented devastation in the coastal destricts of Insia. In the
immediate aftermath, HDFC made a grant conrribution of Rs. One
crore to the Prime Minister’s National Relidf Fund. Further to this,
HDFC employees voluntarily decided to torego a day’s salary or
more, thereby raising over Rs. 13 lacs.
HDFC also extended support to its micre-finace clients, i.e. those
existing MFF borrowers who became victims of the calamity,
through NGO intermediaries. The agencies include Mugavai
Kalanjia Mahalir Vattara Sangam, a federation of DHAN
Foundation at Mandapam block, Center for Appropriate
Technology (CAT) at kanyakumari and the Indian Association for
Savings and Credit (IASC). The Overseas Private Investment
Corporation (OPIC), a development agency of the United States
Government has approached HDFC to explore channeling of grant-
Bhusawal. Area.
cum-loan funds for rehabilitation measures in the tsunami-hit

areas.
IN CONCLUSION…
HDFC has always believed in the enduring business advantage of
“doing the right thing” – having well-defined purpose, adhering to
our core values and giving back to the society – thereby gaining in
terms of not only customer loyalty and employee satisfaction but
also profitability.
In this context, HDFC was among the first Indian corporate to join
the Global Compact an international imitative that brings
companies together with UN agencies, labor and civil society to
support universal environmental and social principles. HDFC
remains wholly committed to the Global Compact and strives to
further its cause by upholding its ten principles in the areas of
human rights, labor, the environment and anticorruption.
As our Chairman, Mr. Deepak Parekh quoted the following words
of John Wesley, the 18th century evangelist, while accepting The
Economic times Corporate Citizen Award won by HDFC for the
year 2003-04:
FUTURE
HDFC has always been market-relented and dynamic with respect
to resource mobilization as well as its lending Programme. This
renders it more than capable to meet the new challenges that have
Bhusawal. Area.
emerged. Over the years, HDFC has developed a vast client base of
borrowers, depositors, shareholders and agents, and it hopes to
capitalize on this loyal and satisfied client base for future growth.
Internal system have been developed to be robust and agile, to take
into account changes in the volatile external environment.
HDFC has developed a network of institutions through
partnerships with some of the best institutions in the world, for
providing specialized financial services. Each institution is being
fine-tuned for a specific market, white offering the entire HDFC
customer base the highest standards of quality in product design,
facilities and service.
MANAGEMENT
HDFC is professionally managed organization with a board of
directors consisting of eminent persons who represent various
fields including finance, taxation, construction and urban policy &
development. The board primarily focuses on strategy formulation,
policy and control, designed to designed to deliver increasing value
to shareholders.
Board of Directors
Mr. D S Parekh – Chairman Mr. D N Gosh
Mr. Keshub Mahindra – Vice Dr. S A Dave
Chairman Mr. S Venkitaramanan
Mr. Renu S. Karnad – Executive Dr. Ram S Tarneja
Bhusawal. Area.
Director Mr. N M Munjee

Mr. K M Mistry – Managing Mr. D M Satwalekar
Director
Mr. Shirish b Patel
Mr. B S Mehta
Mr. D M Sukthankar
HDFC has a staff strength of 1029, which includes professionals

from the fields of finance, law, accountancy, engineering and
marketing.
Bhusawal. Area.
HDFC STANDARD LIFE INSUTANCE

The Partnership:
HDFC and Standard Life first came together for a possible joint
venture, t enter the Life Insurance market, in January 1995. It was
clear from the outset that both companies shared cililar balues and
beliefs and a strong relationship quickly formed. In October 1995
the companies signed a 3 year joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC,
further strengtherning the relationship.
The nest three years were filled with uncertainty, due to changes in
government and ongoing dalays in getting the IRDA (Insurance
Regulatory and Development authority) Act passed in Parliament.
Despite this both companies remained firmly committed to the
venture.
In octover 1998, the hoint venture agreement was renewed and
additional resource made available. Around this time Standard Life
Purchased 2% of Infraastructure Decelopment Finance Company
Ltd. (IDFC). Standard Life also started to use the services of the
HDFC Treasury department to advise them upon thir investments
in India. Towards the end of 1999, the opening of the market
looked very promising and both companies agreed the time was
right to move the operation to the nect level. Therefore, in January
Bhusawal. Area.
2000 an expert team from the UK hoined a hand picted team

fromHDFC to form the core projectr team, bvased in Mumbai.
Around this time Standard Life purchased a further 5% stke in
HDFC and a 5% stake in HDFC Bank.
In a further development Standard Life agreed to participate in the
Asset Management Company promoted by HDFC to enter the
mutual fund market. The Mutual Fund was launched on 20th July
2000.
Incorporation of HDFC Standard Life Insurance Company
Limited:
The company as incorporated on 14th August 2000 under the name
of HDFC Standard Life Insurance Company Limited.
Our ambition form as far back as October 1995 was to be the
private company to re-enter the life insurance market in India. On
the 23rd of October 2000, this ambition was realized when HDFC
Standard Life was the only life company to be granted a certificate
of registration HDFC are the main shareholders in HDFC Standard
Life, with 81.4% while standard Life Owns 18.6%. Given Standard
Life’s existing investment allowed under current regulations.
HDFC and Standatd Life have a long and close relationship built
upon shared values and trust. The ambition of HDFC standard Life
is to mirror the successes of the parent companies and be the
Bhusawal. Area.
yardstick by which all other insurance companies in India are

measured.
Mission:
We aim to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive
company in the market; rather it is a combination of several things
like-
• Customer service of the highest order
• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater to different needs of different
customers
• Use of technology to improve service standards
• Increasing market share.
Values:
• SECURITY: Providing long term financial security to out
policyholders will be our constant Endeavour. We will be
doing this by offering life insurance and pension products.
• TRUST: We appreciate the trust placed by our policyholders
in us. Hence, we will aim to manage their investments very
carefully and live up to this trust.
Bhusawal. Area.
• INNOVATION: Recognizing the different needs of our

customers, we will be offering a range of innovative products
to meet these needs.
Mission is to be the vest new life insurance company in India and
these are the values that will guide us in this.
Bhusawal. Area.
LITERATURE SURVEY
Marketing is typically seen as the task of creating, promoting, and
delivering goods and services to consumers and businesses.
Marketers are skilled in stimulating demand for a company’s
products, but this if too lomited a view of the tasks marketers
perform. Just as production and logistics professionals are
responsible for supply management, marketers are responsible for
demand management. Marketing mangers seek to influence the
level, timing and compositon of demand to meet the organization’s
objective.
Marketing people are involved in the marketing 10 types of
entities: goods, services, experiences, events, persons, places,
properties, organizations, information, and ideas.
GOODS: Phusical goods constitute the bulk of most countries
production and marketing effort.
SERVICES: As economis advance, a growing proportion of their
activities is focused on the production of services.
EXPERIENCES: By orchestrating several services and goods, a
firm. Con create. Stage. And market experiences. Walt Disney
World’s Magic Kingdom represents experimental marketing
customers visit a fairy kingdom, a pirate ship, or a haunted house.
So does the Hard Rock Café.
Bhusawal. Area.
EVENTS: Marketers promote time – based events, such as the

Olympics. Company anniversaries, major trade shows, sports
events. And artistic performances. There is a whole profession of
meeting planners who work out the details of an event and make
sure it comes off perfectly.
PERSONS: Celebrity marketing is a major business. Years ago,
someone seeking fame would hire a press agent to plant stories in
newspapers and magazines. Today every major film star has an
agent, a personal manager, and ties to a public relations agency.
PLACES: Places-cities, states, regions, and whole nations---
compete actively to attract tourists, factories, company head
quarters, and new residents.
PROPERTIES: Properties are intangible rights of ownership of
either real property (real estate) or financial property (stocks and
bonds). Properties are brought and sold, and this requires
marketing.
PRGANISATIONS: Organizations actively work to build a strong,
favorable image in the minds of their target publics.
INFORMATION: Information can be produced and marketed as a
product. This is essentially what schools and universities produce
and distribute at a price to parents, students, and communities.
IDEAS: Every market offerings includes a basic idea. Products and
services are platforms for delivering some idea or benefit.
Bhusawal. Area.
WHAT IS MARKETING?
MARKETING is a societal process buy which individuals and
groups obtain what they need and want through creating, offering,
and freely exchanging products and services of value with others.
For a managerial definition, marketing has often been described as
“the art of selling products’’ but people are surprised when they
hear that the most important part of marketing is not selling.
Selling is only the tip of marketing iceberg.
There will always, one can assume, be need for some selling. But
the aim of marketing is to make selling superfluous. The aim of
marketing is to know and understand the customer so well that the
product or service fits him and sells it. Ideally, marketing should
result in a customer who is ready to buy. All that should be needed
then is to make the product or service available.
-PETER DRUCKER
The American Marketing Association offers the following
definition:
“Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, gods and
services to create exchanges that satisfy individual and
organizational goals.”
MARKETING CHANNELS
Bhusawal. Area.
To reach a target market, the marketer uses three kinds of

marketing channels – Communication channels – It deliver and
receive messages from target buyers, and include newspapers,
magazines, radio, television, mail, telephone, bill boards, posters,
filers, CD’s audio tapes, and the internet. Beyond these
communications are conveyed by facial expressions and clothing,
the load of retail stores, and many other media. Marketers are
increasingly adding dialogue channels (e-mail and toll-free
numbers) to counter valance the more normal n=monologue
channels ( such as ads).
DISTRIBUTION CHANNELS
To display, sell. Or deliver the physical product or service(s) to the
buyer or user. They include distributor, wholesalers, retailers,
retailers and agents.
SERVICE CHANNELS
It is used to carry out transactions with potential buyers. Service
channels include warehouses, transportations companies, banks
and insurance companies that facilitate transactions. Marketers
clearly face a design problem in choosing the best mix f
communication, distribution, and service channels for their
offerings.
Bhusawal. Area.
A Marketing channel is a set of interdependent organizations

involved in the process of making a product or service available
for use or consumption.
WHY MARKETING CHANNELS AND WHY DO THEY
CHANGE?
Demand side factors:
1. To find out the awareness of insurance in people mind. As
we have disussed that insurance is not purchased it is h=sold
byu channel of distribution so before selling it has to be made
known to the people buy making them aware. The belief that
Kife Insurance is necessary for ones life is to be made
inculcate in them.
2. To find out new Insurance Advieor and follow them up.
3. To find out new way of recruitment of Insurance Advisor as
through Internet, Walk-In-Interview or Past Experience
vases.
Supply Side factors:
Routinization of transactions: The cost of distribution, i.e.
amount mode and timing, can be minimized if the transactions are
routinized; otherwise, every transaction is subject to bargaining ,
with an accompanying loss of efficiency.
Reduction in number of contacts: Without channel
intermediaries, every producer would have to interact with every
Bhusawal. Area.
potential buyer in order to create all possible market exchange and

thus facilitate transactions.
Bhusawal. Area.
OBJECTIVE AND SCOPE OF THE STUDY

The objective of this study is to present a dissertation for the
fulfillment of part of requirement for G.B.S Jalgaon.
The broad objective of this study is to give practical knowledge
and training to us.
The main objective was to conduct summer training to recruit
insurance advisor for HDFCLIC on the presence of various
competitors and difficult traditional market situation.
Objective Include with:
1. To find out the awareness of private insurance players in the
mind of people.
2. To set up brand image of HDFCSLIC.
3. To penetrate the traditional market which is captured by life
insurance Corporation of India.
4. To find out new advisor to HDFCSLIC.
5. To find out new way of sales promotion techniques as well as
recruitment techniques also and distribution network to
generate business.
6. To find out the attitude of new customers and existing
customers towards HDFCSLIC.
Research Objective
The term Research Objective means to discover answer to
questions through the application of scientific procedures. The
Bhusawal. Area.
main aim of research is to find out the truth which is hidden and
which is hidden and which has not been discovered as yet.
Through each research study has it’s own specific purpose, we any
think of research objective as falling into a number of following
broad groupings:
1. To gain familiarity with a phenomenon or to achieve new
insights into it.
2. To portray accurately the characteristics of a particular
individual, situation or group.
3. To determine the frequency with which something occurs or
with which it is associated with something else
4. To test a hypothesis of a causal relationship between
variables.
Developing research plan
After objectives ot the research project has been established, the
next task for researcher is to arrange his ideas in order and write
them in the form of an experimental plan or what can be described
as a ‘Research plan’. Research plan is essential because of
following steps:
1. Research plan helps to organize ideas in a form whereby it is
possible to look for flaws and inadequacies, if any.
2. It provides an inventory of what must be done and which
materials have to be collected as a preliminary step.
Bhusawal. Area.
3. It is a document that can be given to others for comment.

The steps involved in developing a research plan are as follows:
a. Data source:
The task of data collection begins after research problem has been
defined and research design/plan chalked out. While deciding
about the method of data collection to be used for the study. The
researcher should keep in mind two types of data viz., Primary and
Secondary.
The primary data are those which are collected afresh and for the
first time, and thus happen to be original in character. This data is
collected by the researcher himself. The primary data is generally
collected by means of questionnaire, telephone and direct
interview, observation method etc.
The Primary Data has been collected by means of:
1. Questionnaire
2. Personal Interviews
3. Telephone Interviews
The Secondary data on the other hand, are those which are already
been collected by someone else and which have already been
passed through statistical process.
When the researcher utilizes secondary data, then he has to look
into various sources from where he can obtain them. In this case he
is certainly not confronted with the problems that are usually
Bhusawal. Area.
associated with the collection of original data. Secondary sta may

either be published data or unpublished data. Usually published
data are available in:
1. Various publications of the central, state and local governments.
2. Various publications of foreign governments or international
bodies.
3. Technical and trade journals.
4. Books, magazines and newspapers.
5. Reports prepared by research scholars, universities etc in
different fields.
6. Public records and statistics. Historical documents and other
sources of published information.
7. Reports and publications of various associations.
The sources of unpublished data are many. They may be found in
diaries, letters, unpublished biographies and autobiographies and
also may be available with scholars and research workers, trade
association, labor bureaus and other public/private individuals and
organizations.
The Secondary Data was collected form trade journals,
magazines, newspapers, reports and publications of various
associations, reports prepared by research scholars etc.
b. Research Approach:
There are two basic approaches to research:
Bhusawal. Area.
1. Quantitative Approach: This approach involves the

generation of data in quantitative form, which can be
subjected to rigorous quantitative analysis in a formal and
rigid fashion. This approach can be further classified into:
Inferential Approach: the purpose of inferential approach is to form
a data base from which to infer characteristics or relationship of
population. This usually means survey research where a sample of
population has the same characteristics.
Experimental Approach: this approach is characterized by much
greater control over the research environment and in this case some
variables are manipulated to observe their effect on other variables.
Simulation Approach: It involves the construction of an artificial
environment within which relevant information and data can be
generated. This permits an observation of the dynamic behavior of
a system under controlled conditions.
Inferential Approach has been used in this project.
II. Qualitative Approach: this type of research is concerned with
subjective assessment of attitudes, opinions and behavior. Research
in such a situation is fiction of researcher’s insights and
impressions. Such and approach to research results either in non-
quantitative form or in the form which are not subjected to
rigorous quantitative analysis.
Bhusawal. Area.
c. Research Instrument: Paper based questionnaire,

Interviews.
d. Sampling Plan:
Sampling is a selection of units from the entire group called the
population or universe of interest. In marketing a sample is a
particular segment or part of the market and it is the focus for
taking the marketing decisions which can be applied to the entire
market. The unit included in the sample were individual
respondents, house wives, families, dealers, firms, and so on. The
unit included in the sample can be easily approached to obtain the
desired information for taking the desired marketing decisions.
• Sampling population: All the residents of and
Bhusawal.
• Sampling Frame:
1. Population Frame: All individuals of
Bhusawal area, who fulfill the eligibility
criteria. Obtained through telephone
directory.
2. Time Frame: 2 months in present scenario.
• Sampling Method: sample random sampling.
• Sampling Plan: Each unit in population has an
equal chance of being included in the sample. For N
Bhusawal. Area.
sampling units, the chance of each unit being

selected is 1/n.
• Sample Size: Sample Size is 200.
Processing and analysis of data
The data, after collection, has to be processed and analyzed in
accordance with the outline laid down for the purpose at the time
of developing trhe research plan. This is essential for ensuring that
we have all the relevant data for making contemplated
comparisons and analysis. The term processing implies editing,
coding, classification and tabulation of collected data so that they
are amenable to analysis.
Thus, in the process of analysis, relationships or differences
supporting or conflicting with original or new hypotheses should
be subjected to statistical tests of significance to determine with
what validity data can be said to indicate any conclusions.
Processing operations:
Various processing operations are as follows:
Editing:
Editing of data is a process of examining the collected raw data
(especially in surveys) to detect errors and omissions and to correct
theses when possible. Editing involves a careful scrutiny of the
completed questionnaires. Editing is done to assure that the data
are accurate, consistent with other facts gathered,. Uniformly
Bhusawal. Area.
entered, as completed as possible and have been well arranged to

facilitate coding and tabulation.
Editing should be done in 2 stages. They are:-
Field editing:- it consist of review of the reporting forms by the
investigator for completing (translating or rewriting) what the
investigator has written in abbreviated or in illegible form at the
time of recording the respondent’s responses. This type of editing
is necessary in view of the fact that individual waiting styles often
can be difficult for others to decipher.
Central editing: it should take place when all the forms have been
completed and returned to the office. This type of editing implies
that all forms should get a thorough editing by a single editor or by
a team of editors in case of a large enquiry. The editor(s) may
correct the obvious error such as an entry in the wrong place, entry
recorded in months when it should have been recorded in weeks,
and the like.
Coding:-
Coding refers to the process of assigning numerals or other
symbols to answers so that response can be put into a limited
number of categories or classes. Such classes should be appropriate
to the research problem under considerations. They must also
posses the characteristics of exhaustiveness (i.e., there must be a
class for every data item) and also that of mutual exclusively
Bhusawal. Area.
which means that a specific answer can be placed in one and only
one cell in a given category set.
Coding decisions should usually be taken at the designing stage of
the questionnaire. This makes it possible to precede the
questionnaire choices and which in turn is helpful for computer
tabulation. But in case of hand coding some standard method can
be used. One such standard method is to code in the margin with a
colored pencil. The other method can be to transcribe the data form
the questionnaires to a coding sheet. Whatever the method adopted,
the coding errors should be altogether eliminated or reduced a to
minimum level.
Classification
Most research studies result in a large volume of raw data which
must be reduced into homogeneous groups if we are to get
meaningful relationships. This fact necessitates classification of
data, which happens to be the process of arranging the data in
groups or classes on the basis of common characteristics. Data
having a common characteristic are placed in one class and in this
way the entire data get divided into a number of groups or classes.
Classification can be one of the following two types, they are:
Classification According To Attributes:
According to these type of classification, data are classified on the
basis of common characteristics which can either be descriptive
Bhusawal. Area.
(such a literacy, sex etc) or numerical (such as weight, height,

income etc). Descriptive characteristics refer to qualitative
phenomenon, which cannot be measured quantitatively; only the
presence or absence in the individual item can be noticed. Data
obtained this way on the basis of certain attributes are known as
statistics of attributes and their classification is said to be
classification according to attributes.
Classification According To class-intervals: the numerical
characteristics refer to quantitative phenomenon which can be
measured though statistical units. Data relating to income,
production, age, weight, etc. come under this category. Such data
are known as statistics of variables and are classified on the basis
of class intervals.
Tabulation
When a mass of data has been assembled, it becomes necessary for
the researcher to arrange the same in some kind of concise and
logical order. This procedure is referred to as tabulation. Thus,
tabulation is the process of summarizing raw data and displaying
the same in compact form for further analysis. In a broader sense,
tabulation is an orderly arrangement of data in columns and rows.
Bhusawal. Area.
FINDINGS AND ANALYSIS

Ques2 what are your educational qualification?
A. 10th Pass B. 10+2 Pass
C. Graduate D. Post Graduate
E. Below 10th
1. QUALIFICATION OF RESPPMDENTS
Qualification No. of respondents % of respondents
Below 10th 4 2
10th 15 8
12th 24 12
Graduation 119 61
Post Graduation 34 17
Total 200 100
From the data we have found that out of 200 respondents

61%(119) are graduates, 17%(34) are post graduates, 12%(24) are
10+2 pass, 8%(15) are 10th pass and 2% (4) are not even 10th
qualified.
Analysis
Qualification of an individual is a major consideration for
becoming a financial consultant as there is a minimum level of
qualifications specified by IRDA it is also a general necessity
because a well qualified person in general can do a better justice to
the job.
Bhusawal. Area.
All the graduates and postgraduates were already pre-occupied.

Therefore, finding appropriate candidates as financial consultants
in PCMC are was difficult. This factor acts a hindrance in the
expansion of the existing channel.
Ques3 what are the current occupation?
A. student B. self employed C. salaried D. house
wife E. retired
OCCUPATION
Occupation No. of respondents % of respondents
Student 13 6.5
Salaried 39 19.5
Self employed 102 51
House wife 37 18.5
Retired 9 4.5
Total 200 100
From the previous data it is found that out of 200 respondents

51%(102) are self employed followed by 19.5%(39) salaried,
18.5(37) house wife, 6.5(13) students and 4.5%(9) retired.
Analysis
The occupation of an individual is a very important parameter
whether a person can give the necessary time and commitment to
the job of a financial consultant. Generally, it is perceived that the
self-employed and salaried are bound by time. Therefore, they cant
find a dedicated time for the job.
Ques 4 is your family a single income family?
Bhusawal. Area.
A. single income B. multi income

INCOME SOURCES
No. of earners No. of respondents % of respondents
Single income 93 46.5
Multi income 107 53.5
Total 200 100
Ques5 how many members of your family are dependent on the

income earner?
A. less than 1.2 lacs B. 1.2 – 2.5 lacs
C. 2.5 – 4.2 lacs D. more than 5 lacs
INCOME SOURCES (CONTD.)
Family income no. of respondents % of respondents

Less than 1.2 lacs 28 14
1.2 – 2.5 lacs 64 32
2.5 -4.2 lacs 61 30.5
More than 4.2 lacs 47 23.5
Total 200 100
The above ques3,4 depict that more that 53.5% households have
multi;le sources of income 46.5% who have a single source of
income were not ready to invest the initial training fees.
Analysis
The above two question (income distribution) depict that
households have multiple sources of income and single source of
income were not ready to invest the initial training gees. There are
Bhusawal. Area.
one or more family members who earning less than 1.2 lacs
between more than 4.2 lacs.
Ques6 would you like to interested becoming the financial

consultant?
A. interested B. not interested C. can’t say
INTEREST IN BECOMING AN FC
NO. of respondents % of respondents
Interested 70 35
Not-interested 104 52
Can’t say 26 13
Total 200 100
Analysis
During the project it was found that most of the respondents were
skeptical about the job of financial consultant. The reason is that
most of them believe that the level of persuasion required for
selling insurance policies is very high and requires lot of time. The
people who were interested had a flair for selling and also a high
number of social contacts.
Ques7 to become a FC what are the different age group?
A. 25-35 FEMALE B. 35-55FEMALE
C. 25-45 MALE D. 45-55 MALE
AGE DISTRIBUTION
Age No. of respondent % of respondent
Bhusawal. Area.
25-35 FEMALE 22 11
35-55 FEMALE 48 24
25-45 MALE 84 42
35-55 MALE 46 23
TOTAL 20840 100
From the data it was found that out of 200 respondent 52% were
not interested in knowing more about becoming a financial
consultant and 35% interested and 13% were not sure.
Analysis
Age has a considerable influence on the willingness of individuals
to become a financial consultant. During the project it was found
that individuals in the age group of 25-35 years are keener to know
about an additional source of income than the other age group
individuals. The reason for this is that in this age group an
individual has a lot of responsibility (financial & social) on his
shoulders.
Ques 8 what would be the size of your social contact base who
know you on First name basis?
\A. less than 50 B. 50-100
C.100-500 D. more than 500
SOCIAL CONTACT BASE
No. Of respondents % of respondents
Less than 50 12 6
Bhusawal. Area.
50-100 86 43
100-500 52 26
More than 500 50 25
Total 200 100
From the previous data we have found that out of 200 respondents
6%(12) did not have any social contacts where as 43% (86) had a
50-100 contact, 100-500, 26%(52) had a contact 25% had a contact
more than 500.
Ques 9 Do you have work Experience?

A. No work experience B. less that 1 year
C. 1-5 year D. more than 5 year
WORK EXPERIENCE
No. of respondents % of respondents
No work experience 22 11
Less than a year 52 26
1-5 years 92 46
More than 5 years 34 17
Total 200 100
Form the previous data we have found that out of 200 respondents
12% (22) did not have experience in sales where as 46%(92) had a
experience of 1-5 years, 26%(52) had a experience of less that a
year and 17% had a experience of more than 5 years.
Analysis
Bhusawal. Area.
Sales related experience would be helpful for individual to sell

insurance policies as they would possess the basic selling skills
though their exist many successful financial consultant who did not
have any previous experience in sales during the project it was
found that people with sales related experience were more
confident about selling insurance policies.
However, respondents having relevant sales experience in the
sector(service) were not found to be high. Moreover, insurance
being a non product item, affected their confidence in selling such
a service.
Quest 10 what ate the different mode for purchasing financial

product?
A. Corporate agent’s B. financial consultant
C. Internet D. Bancaasurance
FEASIBILITY OF CHANNELS
Channels No. of respondents % of respondents
Corporate agents 29 15
Financial consultants 61 30
Internet 63 31
Bancaasurance 47 24
Total 20630 100
From the above graph it has been identified that internet is a

booming channels and also respondents using the internet channel
Bhusawal. Area.
have an option of purchasing the product either through corporate

agents or financial consultants.
Analysis
As people are pressed for time they prefer to purchase the financial
products through a channel, which is at arms length like internet
channels, and similarly the financial consultants are also easily
reachable as they come to the door step. Therefore a combination
of both the channels would give a better outcome than as
standalones.
Bhusawal. Area.
LIMITATIONS
Following were the limitations faced during the training period-
1. Due to time constraint conversion rate was less.
2. Some respondents did not have the required communication
skills, which resulted in lack of interest on the part of the
respondents.
3. Respondents were not ready to reveal anything about them.
Bhusawal. Area.
CONCLUSION
FROM THE FINDINGS, THE FOLLOWING CONCLUSIONS
WERE DERIVED:
Time: most of the respondents were pressed for time due to pre-
occupation. Hence, maximum respondents did not show much
interest in being a financial consultant and a part of the marketing
channel.
Low trust level on private insurance companies compared to LIC.
Investment: the prospects were not willing to invest the required
fees for the training provided HDFCSLIC.
Lack in interest: some respondents were simply not interested to
become financial consultants.
Communication: some respondents did not have the required
communication skills and hence were not ready to become a
financial consultant.
Lack of computer awareness: since the test of eligibility was
conducted online some respondents were hesitant. This made them
shoe low interest in becoming a financial consultant.
Lack of knowledge eligibility: a percentage of respondents were
not academically qualified for being a part of the channel and also
were not well versed with the insurance sector.
Bhusawal. Area.
Hence, expansion of the channel of financial consultants is not

very attractive. Therefore, alternate channel should be developed
on order to increase the reach of HDFCSLIC products.
Bhusawal. Area.
RECOMMENDATIONS
HDFCSLIC SHOULD try to enhance the internet channel because
of the following reasons:
8. Cost effectiveness/ very low cost of operation.
9. Even though the computer penetration for insurance products
currently stands at 1% the coming years would prove beneficial
since online purchases are expected to grow to 5%
10.This channel would serve the segments, which are pressed for
time and those who do not prefer going to instance offices, in
the best possible way.
11.The internet would also increase the spatial convenience and
hence make it convenient for the working class to purchase
insurance at any time of the day.
12.Bancaasurance: strategic alliance with banks would enable
HDFCSLIC to cross-sell their products to existing consumers of
the bank.
Existing channel of HDFCSLIC
PRIPOSED CHANNEL
The internet channel would function as a complimentary
channel and not a competing channel.
The channel would generate the pass on the leads and pass on
theses leads to the corporate agents, financial consultants, of
banks in the area of preference and in the preferred channel.
Bhusawal. Area.
BIBLIOGRAPHY
Philip Kotler
Marketing Management
Eleventh Edition-2004, Pearson Education Pvt. Ltd.
C.R. Kothari
Research Methodilogy
Second Edition- 1990, New Age International, New Delhi
Patrick Forsyth
Channel Management
First Edition-2002, Capstone Publishing, Uk
Www.Hdfc.Org.In
Www.Google.Com
Www.Irda.Org.Com
Www.Hdfcslic.Com

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- 1 -To study the potential of the channel and expansion of the distribution channel in

“ To Study The Potential Of The Channel And Expansion Of

HDFC STANDARD LIFE INSURANCE

G.B.S institute of management & information research

IN THE PARTIAL FULFILLMENT OF

Masters in marketing management (I.U.V)

This is to certify that

A student of Masters Degree in Marketing Management (I.U.V) has completed his/her

Project work titled _______________________________________________________

the satisfaction of the project guide.

To Whomsoever It May Concern

Distribution Channel In BHUSAWAL. Area” For H.D.F.C. Standard Life Insurance

Management” From G.B.S Institute Of Management & Information Research.

direction, efficient supervision and the most valuable professional guidance.

atmosphere conductive for the healthy learning and training..

critically evaluated my each step in developing this project report.

me fruitful information to finish my project.

Summer training in business organization is to fuse among student a sense of critical

situations and to evaluate the results thereof.

written account of what I learned and experienced during my training.

 To grow through diversification by leveraging off the existing client base.

 To transform ideas into viable and creative solutions.

 To develop close relationships with individual households. Research objectives

 To gain familiarity with a phenomenon or to achieve new insights into it.

competitors and difficult traditional market situation.

 To find out new way of sales promotion techniques as well as recruitment

techniques also and distribution network to generate business.

research methodology comprised of the following

 Developing research plan

 Data processing and analysis

 Most of the respondents were pressed for time due to pre-occupation

 HDFCSLIC should try to enhance the Internet channel.

INDUSTRY PPROFILE & ANALYSIS 5-19

COMPANY PRIFILE 20-49

LITERATURE SURVEY 50-55

RESEARCH METHODOLOGY 57-67

FINDING AND ANALYSIS 68-83

BIBLOGRAPHY & QUESTIONNAIRE 89

INDUSTR Y PR OFIL E AN D AN ALYSI S

Development of Insurance Sector:

In this simplest aspect it is imbues with two fundamental characteristics:

a) It transfer risk from one person to a group, and

Chronological Development Of Insurance Sector:

THE ROLE OF MALHOTRA COMMITTEE

7. Though the nationalized insurance companies are in a position to face

IMPORTANT PROVISION OF IRDA ACT

 Rural Insurance is being made mandatory but Insurance Regulatory

 It denies the insurance companies any investment in private limited

Qualifications An insurance agent should satisfy the following

Posses a minimum educational qualification of 12th standard or equivalent .

Pass the pre-recruitment test, based on an examination conducted by the Insurance

THE AGENCY SYSTEM

The consultant would act as a financial advisor to the customer.

 Analyze the customers’ financial requirements.

Who can be a Corporate Agent?

Why should be a Corporate Agent with us?

 An excellent geographical reach.

Potential in the Insurance Sector

Scope of Insurance Business in India:

HDFC STANDARD LIFE INSURACE

An extract from the book ‘A Tribute’

When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he