Beruflich Dokumente
Kultur Dokumente
for
SmartKid Policy
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Presented to:
XXXXXX
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Presented by:
XXXX
1.Introduction
2.Competitors
1.Situation Analysis
Key features:
➢ Lump sum payment of Sum Assured plus company
contributes future premiums in the unfortunate event of
death of parent (life assured).
➢ With Income Benefit Rider, the child (beneficiary) would
receive an annual allowance every year till maturity, in
the unfortunate event of death of parent.
➢ Flexibility to increase the investment by investing
additional money over and above your regular premiums
as top ups.
➢ Eliminate the need to the your investment with the
Automatic Transfer Strategy.
➢ Choose from 8 investment funds to invest your money
based on the risk appetite.
➢ Withdrawal facility to provide money at key educational
milestones of the child.
➢ Potentially higher returns over the long-term by investing
in unit-linked funds.
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➢ Cover Continuance option to ensure continuance of life
insurance cover, if you wish to stop paying premiums.
➢ Avails tax benefits on premiums paid and benefits
received under the Income Tax Act, 1961.
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f. Profits : Fixed cost are very high. Companies don’t
earn much profits or have benchmark profitability from
the child plan premium as the number of competitors
and similar products are high. Whatever the profit that
company earns is from the premium load. IPru will
break even by 2010 when its total cost will be equal to
total revenue. It will be the first private insurer to break
even.
Attractiveness
High Low
Market Size + -
Growth + -
Sales Cyclicity + -
Seasonality - +
Rivalry in + -
category
Profits - +
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49%. At present, there are 22 insurers in India. New
companies are looking for more and more new areas to
develop its market. The new companies have the fear of
being eliminated by the big player but as the market
size is very large and this area is almost undiscovered,
there is lots of potential for the new players. High
capital requirement is also an inhibitor. Certain
regulations keep the players from coming in but if these
regulations are removed then India will become heaven
for the insurance companies. The threat of new
entrants at presently low so the attractiveness is high.
b. Power of suppliers : NA
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e. Current Rivalry in category : Rivalry is very high.
There are about 22 insurance companies in India and
every company provides almost all kinds of products.
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online purchasing of Insurance products. With a few clicks
customers can avail products. But the use of this facility is
limited to people living in metros & other developed cities.
Moreover, one-to-one selling has been found more effective in
Insurance industry. In the coming few years it is expected that
use of online selling will increase.
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Maturity Fund Value Higher or Fund Value Fund Value
Benefit guaranteed
maturity
benefit or
fund value
Admin Rs. 60 NA Rs. 61 Rs. 60
Charges
(per
month)
Min/Max 10/25 5/18 3/25 10/25
Policy
term
Additional Regular Death Death Death
Benefits Payouts, Benefit, Benefits, Benefit,
Accidental Double/ Loyalty Death +
death and Triple units, Partial critical
disability Guaranteed Withdrawal illness
rider, Waiver maturity benefit,
of premium benefit, Loyalty
rider Units, Partial
Withdrawal
Top Up Rs. 2000 Rs. 5000 Rs. 2000 Rs. 5000
min
amount
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IPru Birla Sun SBI Life HDFC
SmartKid Life Unit Plus Standard
Children’s Child Plan Young Star
Dream plan ii
Price Penetration Penetration Penetration Penetration
pricing – 1 pricing – 4 pricing - 3 pricing - 2
Place Direct Direct Internet, Internet,
(distributio channels, channels, Tied agency, bancassuran
n, Channel Internet, Internet, bancassuran ce. - 3
or Tied agency, Tied agency, ce. - 2
intermedia bancassuran bancassuran
ry) ce. – 1 ce. – 4
(graded on
the basis
of
effectivene
ss)
Product 1 4 2 3
(referring
to quality)
Promotion Personal Personal Sales Personal
selling, Sales selling, Sales Promotion, selling, Sales
Promotion, Promotion, Public Promotion,
Public Public Relations – 4 Public
relations, relations, relations,
Direct Mail, Direct Mail, Trade fair,
Trade fair, Trade fair, Advertising,
Advertising, Advertising, Sponsorship
Sponsorship Sponsorship –2
–1 –3
Physical Very Good - Average- 3 Not Good - 2
2
Evidence 1 attractive -4
People Trained in all Trained in all No specific Trained in all
aspects - 1 aspects - 3 training aspects - 2
given - 4
Process 2 3 4 1
Total 8 24 23 15
The lower the total, the better the marketing mix.
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and sales
Service 1 3 4 2
Support activities
Procureme NA NA NA NA
nt
HRM 3 4 1 2
Firm 2 3 1 4
Infrastruct
ure
1
market
Ability to 2 4 1 3
finance
Ability to 1 4 3 2
manage
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3. Targeting : They are marking middle class and upper
middle class who are very passionate to educate their
children and make them self reliant. As the policy’s
minimum premium to be charged is Rs 10000, it is
necessary that the mass marketing goes well.
2. Forecast Assumptions :
• population growth rate - 1.548% (2009 data); Birth rate
- 22.22 births/1000 population (2009 data)
• After the current recession, in current scenario, the
growth rate can be low. But in future, we can expect a
boom.
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1. Other Assumptions if any :
• IRDA can impose new regulations, which can be anti-
growth
• New Competitor entry
• Better product with better features
• The economy has yet not improved. There is still
credit crunch. This boom what we are seeing in the
economy now, can be the base of yet another
recession.
3.b Objectives
1. Corporate Objective : The Corporate objective of Ipru is
“To be the dominant Life, Health and Pensions player built
on trust by world-class people and service. This is
achieved through:
a. Understanding the needs of customers and
offering them superior products and service
b. Leveraging technology to service customers
quickly, efficiently and conveniently
c. Developing and implementing superior risk
management and investment strategies to
offer sustainable and stable returns to our
policyholders
d. Providing an enabling environment to foster
growth and learning for our employees
e. Building transparency in all our dealings.
1. Marketing objective :
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1,004 crores for FY2009, resulting in a stable new
business margin of 18.9%.
1. Core Strategy :
○ The value proposition of Smart Kid lies in the its
better service and its bundle of benefits that it brings
to the consumer in the form of investment, wealth
management, contingency planning and faster claim
process. The child is provided great financial security
which only its parents can provide.
○ The core competency of this product lies in “NEED
BASED SELLING“ for which it is very innovative any
product which suits best to the requirement of the
customer.
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3.d Strategy - Marketing Programmes
1. Integrated Marketing Communication
Programmes :
• Public relations : It had launched this product with
a very good promotional campaign.
• Mass marketing : Through its aggressive
marketing strategy it tries to get hold of maximum
market share.
• Sales promotions : Very often the advertisements
of insurance products are broadcasted so that the
reach gets maximum in a less span.
• Direct marketing : Through its large number of
FOS(feet on street) it spreads the need for this
product.
• Internet : Though internet does not play a very
vital role at present, but as the people will
understand the need of insurance and use of
insurance will increase, this approach will be
integral part of any marketing communication
programme.
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provide capital appreciation while maintaining a
suitable balance between return, safety and liquidity.
• To generate Superior long- term returns from a
diversified portfolio of equity and equity related
instruments of large, mid and small cap companies.
• To provide long-term capital appreciation from an
equity portfolio predominantly invested in NIFTY
scripts.
• To generate superior long-term returns from a
diversified portfolio of equity an equity related
instruments of companies operating in four important
types of industries viz., Resources, Investment-related,
Consumption-related and Human capital leveraged
industries
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• Entrusted with helping our customers meet their
long-term goals, we adopt an investment
philosophy that aims to achieve risk adjusted
returns over the long-term.
• Last but not least, 10,000+ strong staff is given
the opportunity to learn and grow, every day in a
multitude of ways. They believe this keeps them
engaged and enthusiastic, so that they can deliver
on our promise to cover you, at every step in life.
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Contingency Plan) for The SMART KID would be made keeping
such things in mind.
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