Business Problem in start-up of a DST vertical in

Jharkhand.

By:
Group 02
PGEXP:14-16
Akhilesh Kumar - Roll No.:X002
Ekansh Bachchan - Roll No.:X008

Dr. R. P. Singh - Roll No.:X006

Rajesh Ranjan- Roll No.:X025

OBJECTIVES:
Plan aims at identifying the needs of opening another stream of
business (DST) along with establish market in terms of quality
and value-priced insurance products.
Channel Plan for distribution of retail insurance business and a
marketing strategy for selling insurance through this DST
Channel.
Business & profit generation by meeting with budgeted
business plan.
Financial projections have been estimated for the offices with
some assumptions stated on the Excel sheet & charts.

MARKET DEFINITION:
The main classes of Clients, Market & Business will be targeted
are:
1.Main Towns & outskirts.
2.CCL, BCCL, SAIL, HEC, MACON, NTPC, TATA, TELCO &
all Ancillaries Employees.
3.All State & Central Government Employees.
4.Educational institutions
5.Housing societies.
6.Motor Showroom & Workshops.
7.Retail Traders.
8.Traders Associations.
9.Hotels & Restaurants.
10. Schools, Shops & Malls.

Geography Mapping

The new branches in 1st phase in the Jharkhand State will serve to the
area of Ranchi, Dhanbad & Jamshedpur, covering up all nearby urban,
semi urban & rural area to approach targeted premium & Revenue in 1st
phase geography.

Economic & Market Scenario

The general insurance business in India is currently at Rs 78,000 crore
(US$ 11.7 billion) premium per annum industry and is growing at a
healthy rate of 17 per cent.
The exact size of the Jharkhand retail Insurance market is difficult to
predict. The estimation of potential has been approached from different
angles and validated.

MOTOR INSURANCE
Motor insurance is mandatory in India. Due to this reason, the motor insurance
dominates the Non-life segment in India. Indias non-life insurance industry is
dominated by motor insurance (43%), followed by health insurance at 25%.

Personal Accident & Health

Insurance:
In terms of gross written premium, the Indian personal accident and health
insurance segment recorded the fastest growth in the country's insurance
industry at a review-period (2010-2014) CAGR of 16.3%.
.
As far Jharkhand as State is having total population is 30 Million with 24
districts, 33 sub Division, 211 Blocks & 32620 Villages. The outline of
plans to concentrate on a richer penetration in rural & semi urban areas
along with Main cities for a larger chunk of the insurance market for PA &
Health Insurance products.

DST Market share so far

The below table gives us an idea about the channel wise distribution
of Personal accident & health insurance policies in India. The direct
channels market share is sizable along with individual agents &
brokers market share.

PROBLEM IN EXECUTION.
Recruitment of employees.
Product Training.
Day to Day Engagement.
Business Production.
Overall Profitability.

Problem affects the establishment of DST

Mass recruitment not getting right set of peoples.
College graduates having limited product & market knowledge.
Not efficient & effective in clients & product
communication.
Not good at products price negotiation.

Issues, Costs & Other Impacts

Solution of engaging team in production lead to vertical closer.

Current cost of operation will be a sunk cost for the origination.

Lot many newly recruited employees will be shift to other

vertical will lead to extra cost.

Overall a negative impression to the top management.

Financials

Financials

A successful solution solve the problem.

Using customer survey form to get the database & information collected.

Using collected data for information & requirements gathering.

Offering suitable plan with pricing to the requirement.
Allocating lead to the concerned IO to close the sales.
Generate budgeted business volume from the team.
Meeting with business expenses & generating revenue.

Customer Survey Form

Microsoft Office
Word Document

Executive Beat Plan

IO NAME:
Category
(A,B,C)

REGION/Branch NAME:
Branch Name Date of
(prioritized)
Visit

Location

No. of
Calls

Quotation

Product

Premium

Conclusion
Reviewed the need to create a plan and the benefits that we
can get by planning this survey.
We have looked at the activities that are involved in planning a
survey which include the survey value, the survey cost, defining
the project, defining the audience, defining the project team and
defining the project timeline.
It is important for us to create a survey plan since it will guide,
direct, and coordinate the tasks required to initiate and
complete our survey successfully.
Although each project is unique, using a standardized planning
tool will help us get the results we want from this survey project
to engage & start producing.