Executive Summary

This Project is about HDFC STANDARD LIFE INSURANCE including its complete
profile, nature and details about its group companies, companys vision, mission and
product range including its manpower, turnover and market share. Detailed explanation is
given on strengths, weakness, opportunities and threats of the organization and also
includes Best Practices/USPs that the Company follows in different functional area.
The main concentration is laid on the functional analysis of the organization i.e. what are
the marketing strategies of hdfc standard life insurance, how they are followed and
practiced , recruitment policy for financial consultants and what is the recruitment
process of HDFC SLI.
In this project have also included the lessons learnt from the summer training including
the few statements given for working environment, personal experience, practical
knowledge gained during summer training, difficulties faced, suggestions for training of
students in future and most importantly the conclusion of the report.

Chapter 1
Profile of the Company

1,1 PROFILE OF THE COMPANY

Name of the firm

: HDFC STANDARD LIFE INSURANCE

Industry

: Finance, Insurance Services

Functional Area

: Marketing

Employees

: 2000

Head Quarters :

: Mumbai

Phone

: 011 4336 8900

Website

: www.hdfcife.com

Regd. Office

: Vikas Marg 1st Floor , Aditya corporate Plaza Plot no. 4,

Karkardooma , community center, Shahdara ,New Delhi

1.2 NATUR E OF THE COMPANY

HDFC is one of Indias leading financial institutions, offering complete financial
solutions that encompasses every sphere of life- from commercial banking , to stock
broking , to mutual fund , to life insurance , to investment banking , the group caters to
the financial needs of the individuals and corporate .
GROUP COMPANIES ARE:
HDFC Limited
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.

HDFC Bank Limited

The Housing Development Finance Corporation Limited (HDFC) was amongst the first
to receive approval from the Reserve Bank of India to set up a bank in the private sector.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai.

HDFC Securities Limited

HDFC Securities Ltd was promoted by the HDFC Bank & HDFC with the objective of

providing the diverse customer base of the HDFC Group and other investors, a capability
to transact in the Stock Exchanges & other financial market transactions.
HDFC securities, provides you with the necessary tools to allocate, select and manage
your investments wisely, and also support it with the highest standards of service,
convenience and hassle-free trading tools.

HDFC Realty Limited

HDFC Realty is a new, organized electronic marketplace for properties. HDFC realty
provides the entire gamut of real estate services, bringing together the "clicks world" and
the "bricks world" in a revolutionary and user-friendly way. Making available the best
guidance, and the most professional, transparent, efficient service to the real estate
customer.

HDFC STANDARD LIFE INSURANCE

HDFC STANDARD LIFE is the name which is working as one of the best private
insurance company in insurance sector. HDFC Standard Life Insurance Company Ltd
was incorporated on 14th August 2000.It got the certificate of registration on 23rd
October.

COMPANYS VALUES:

SECURITY: Providing long term financial security to our policy holders will be our
constant endeavor. This is done by offering life insurance and pension products.

TRUST: Company appreciates the trust placed by our policy holders in us. Hence,
company will aim to manage their investments very carefully and live up to this trust.

INNOVATION: Recognizing the different needs of our customers, company will be

offering a range of innovative products to meet these needs.

Companys mission is to be the best new life insurance company in India and these are
the values that will guide us in this.
HDFC CHUBB GENERAL INSURANCE COMPANY LIMITED
With over one century of experience in the field of non-life insurance from Chubb and
HDFCs expertise from the financial segment, HDFC Chubb General Insurance
Company Limited has the consumer insight to make its product range world class and
comprehensive.

STANDARD LIFE
Standard Life is Europe's largest mutual life assurance company. Standard Life, which
has been in the life insurance business for the past 175 years, is a modern company
surviving quite a few changes since selling its first policy in 1825. The company
expanded in the 19th century from its original Edinburgh premises, opening offices in
other towns and acquiring other similar businesses.
Standard Life currently has assets exceeding over 70 billion under its management and
has the distinction of being accorded "AAA" rating consequently for the past six years by
Standard & Poor.

1.3 COMPANYS VISSION and MISSON

COMPANYS VISSION

Ethical , Professional and transparent long term client relationship.

To deliver what promised on time.

All times quality services and integrated financial solution.

To provide composite range of financial services to clients.

Clear understanding of customers perspective and suitability.

Be financially profitable, stable and debt free.

Maintain confidentiality of investors

COMPANYS MISSION:
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

1.4 PRODUCT RANGE

At HDFC Standard Life, we offer a bouquet of insurance solutions to meet every
need. We cater to both, individuals as well as to companies looking to provide
benefits to their employees. This section gives you details of all our products. We
have incorporated various downloadable forms and product details so that you can
make an informed choice about buying a policy.
For individuals, we have a range of protection, investment, pension and savings
plans that assist and nurture dreams apart from providing protection. You can choose
from a range of products to suit your life-stage and needs.
For organisations we have a host of customised solutions that range from Group
Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These
affordable plans apart from providing long term value to the employees help in
enhancing goodwill of the company.
Individual Products
We at HDFC Standard Life realize that not everyone has the same kind of needs.
Keeping this in mind, we have a varied range of Products that you can choose from
to suit all your needs. These will help secure your future as well as the future of your
family.

Protection Plans
You can protect your family against the loss of your income or the burden of a loan
in the event of your unfortunate demise, disability or sickness. These plans offer
valuable peace of mind at a small price. Our Protection range includes our Term
Assurance Plan & Loan Cover Term Assurance Plan.
Investment Plans
Our Single Premium Whole Of Life plan is well suited to meet your long term
investment needs. We provide you with attractive long term returns through regular
bonuses.
Pension Plans
Our Pension Plans help you secure your financial independence even after
retirement. Our Pension range includes our Personal Pension Plan, Unit Linked
Pension, Unit Linked Pension Plus
Savings Plans
Our Savings Plans offer you flexible options to build savings for your future needs
such as buying a dream home or fulfilling your childrens immediate and future
needs. Our Savings range includes Endowment Assurance Plan, Unit Linked
Endowment, Unit Linked Endowment Plus, Money Back Plan, Childrens Plan, Unit
Linked Youngstar, Unit Linked Youngster Plus .

10

Group Products
One-stop shop for employee-benefit solutions
HDFC Standard Life has the most comprehensive list of products for progressive
employers who wish to provide the best and most innovative employee benefit
solutions to their employees.
We offer different products for different needs of employers ranging from term
insurance plans for pure protection to voluntary plans such as superannuation and
leave encashment. We now offer the following group products to our esteemed
corporate clients:
Group Term Insurance
Group Variable Term Insurance
Group Unit-Linked Plan
An investment solution that provides funding vehicle to manage corpuses with
Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave
Encashment schemes of your company
Also suitable for other employee benefit schemes such as salary saving schemes and
wealth management schemes

11

Social Products
Development Insurance Plan
Development Insurance plan is an insurance plan which provides life cover to
members of a Development Agency for a term of one year. On the death of any
member of the group insured during the year of cover, a lump sum is paid to that
members beneficiaries to help meet some of the immediate financial needs
following their loss.
Eligibility

Members of the development agency and their spouses with:

-

Minimum age at the start of the policy 18 years last birthday

Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group. The
group to be covered is only eligible if it contains more than 500 members.

12

1.5 TURNOVER AND MANPOWER:

Total Team Size: 1250+

I.
II.

Designing Resources: 100+

Development Resources: 600+

III.

Testing Resources: 500+

IV.

Content Management Resources: 100+

V.
VI.

Support Team: 200+

Client Relationship Management Team: 100+
Team Structure

Turnover of the Company:

Its diversified business interests include Financial Services,
Infrastructure and Housing, Manufacturing, Services and Trading.
The turnover of HDFC Standard Life Insurance is about 600crore.
(aprox.)

Turnover

13

1.6 ORGANISATIONAL STRUCTURE

CEO

Chief Manager

Marketing
Manager

Promotion Head

Accounts
manager

Document
ation

Office
assistant

Fig No. 1.1- Organizational Structure

14

Clerks

1.7). MARKET SHARE & POSITION OF THE COMPANY IN THE INDUSTRY.

As the company is new in the market and only 22 months old hence, it is not possible to
calculate the market position exactly. As the company has diversified products with
unique features direct comparison is not possible with the other existing companies in the
market.
Credent provides set of services which are not provided by any other company in the
market as Healthcare services, Accidental insurance, Medical insurance, mutal
fund,bonds,securities and many other services are provided under one roof.
HDFC Standard Life has recorded a strong year on year growth of 112% for the period
April-March 2011- 13, in comparison with the same period 2004-05, with new business
first year premium of Rs.1029 crores. The growth achieved by the company was
considerably higher than the private sector industry average of 84% for 2011-06. In terms
of effective premium income (EPI), which gives a 10% value to a Single Premium policy,
and is an internationally accepted indicator of an insurance companys performance, the
EPI grew by 103% from Rs.436 Cr. to Rs. 887Cr.
HDFC Standard Lifes growth in new business is a result of number of lives insured as
well as, an increase in the average premium. For the individual business, volume
measured by the number of lives insured, witnessed a 32% growth. The average premium
also increased by 62% from Rs.17,000 in 2010-11 to Rs. 27,500 in 2011-02
Commenting on the huge potential that exists in the Indian market today, Mr. Deepak
Satwalekar, Managing Director & CEO of HDFC Standard Life emphasised, The GDP
has been growing over 8% per annum and 47% of all savings are now in financial saving
15

forms; 16% of savings is in the form of insurance premiums and another 16% is in
Provident Fund and Pensions i.e., 32% of Indias financial savings of the household
sector are available to be tapped. Therefore, growth for the private life insurance industry
is inevitable and HDFC Standard Life is confident of maintaining a steady growth pace.
Highlighting HDFC Standard Lifes differentiators, Mr. Deepak Satwalekar said, Our
Company has the most competitive fund management charge, which is the lowest in
equity based products. Our fund management charge is as low as 0.8% per annum, the
key to enhancing long-term returns. Our other differentiator is that we believe in offering
life insurance solutions to customers based clearly on their needs, and Disha is the way
it is done.
Disha is a Professional Sales Skills Training Program. The delegates in this program are
introduced to a Need-based selling approach, which can cater to all our clients opting
for life insurance solutions. Disha is aimed at providing a good service to the client and
building long-term relationships Contribution to the individual business premium income
by the different channels of distribution also changed significantly, compared to last year.
The Corporate Agency and Bancassurance channel has grown tremendously and
currently accounts for 43% of the companys business. Speaking on this, Mr. Satwalekar
said, The strategy to concentrate on activating a limited number of bancasurance
partners rather than going in for signing up a large number of banks in the early years,
also paid off. Our key to achieving bancassurance success is our belief in a partnership
approach, customized product offerings, highly ethical dealings and providing good value
to our partners and their customers.

16

HDFC Standard Lifes offerings of Employee Benefit Solutions, to the corporate sector,
through Group Business, have met with increased success with year on year growth of
174%. Commenting on the strong growth of HDFC SLs Group Business, Mr.
Satwalekar said, Our excellent fund performance on retirement products and increase in
our client base with 150 clients cutting across a spectrum of industries spanning from
multinationals to PSUs to the older business houses, have been the highlights of the
year.
Ongoing training for conventional products and specialized training for unit linked
products for more than 33,000 of our financial consultants has also helped its customers
choose the products best suited for their need for protection, savings, investments and
pensions. HDFC Standard Life is the only company requiring its sales force to undergo
specific training in ULIPs before they are permitted to sell the same. There has been a
huge jump in the number of its Financial Consultants who have qualified to become
members of the prestigious Million Dollar Round Table (MDRT). From 124 members as
on 31st December 2004, the number has increased to 318 members as on 31st December
2011.

17

Table Showcasing Financial Results:

Apr-Mar

Apr-Mar

2011-2012

2012-2013

(Rs. Cr.)

(Rs. Cr.)

668.40

1532.21

129.23

i. New Business

486.15

1028.94

111.65

ii. Renewal

182.25

503.27

176.14

Effective Premium Income 436.08

887.30

103.47

135.15

173.58

Parameters

Total received premium

% Growth

(Total)

Group Business Premium 49.40

(EPI)

Table No. 1.1- Table Showing Financial Results

HDFC Standard Life continues to have one of the widest reaches amongst new
insurance companies. The Companys geographical presence has also increased and
covers 169 offices across the country.

18

1.8.1 PRESENT LEADERSHIP:

Managing Worker & Chairman

- Mr. Deepak S. Parekh

Vice Chairman

-Mr. Keki M. Mistry

Finance Director

-Mr. David Nish

Director of HDFC

-Mr. A. K.T. Chari

1.8.2 People whom we have met during internship n their level.

1. Mr. Amit Kumar

: Head-Business Development

2. Mr. Arvind Jha

: Marketing Manager

3. Mr. Ranjeet Jha

: Line Supervisor

19

1.9 Source of data collection

Research is not an isolated activity, but rather seeks to build on previous work as well as
providing new avenues for exploration. The very prerequisite to conduct every study is to
develop a research design or plan.
Research design calls for determining the information needed, developing a plan for gathering
it efficiently and presenting the design in the form of findings, analysis and must recommend
some suggestions.
Research design includes gathering of data, sampling plans and instruments and tools that will
use to gather data. Research is carried out in two phases:
Desk research:
Desk research is the first phase of research. It includes collection of published and unpublished
data available within or outside the organization.
Field research:
The data collection methods used for comparative research include experiments, content
analysis and existing statistics.
Data type/Sources of information:
Data can be obtained from two important sources, namely:

20

Primary source:
Primary data measurement observed and recorded as a part of an original study. When the data
required for a particular study can be found neither in the internal record of the enterprise nor
in the published sources, may it become necessary to collect original data that is to conduct
first hand investigation.
The work of collecting original data is usually limited by time, money & manpower available
for the study.
Secondary source:
When an investigator uses a data, which has already been collected by others, such data are
called secondary data.
Method of data collection: The secondary data has been collected through several websites,
journals, business magazines and newspapers, books.

21

Chapter 2
SWOT Analysis of the Company

22

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to

evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or
in a business venture. A SWOT analysis can be carried out for a product, place, industry
or person. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieving that objective. The technique is credited to Albert Humphrey, who led a
convention at the Stanford Research Institute (now SRI International) in the 1960s and
1970s using data from Fortune 500 companies. The degree to which the internal
environment of the firm matches with the external environment is expressed by the
concept of strategic fit.
Setting the objective should be done after the SWOT analysis has been performed. This
would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an

advantage over others

Weaknesses: are characteristics that place the team at a disadvantage

relative to others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the
business or project

Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective.
23

First, the decision makers should consider whether the objective is attainable, given the
SWOTs. If the objective is not attainable a different objective must be selected and the
process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make
the analysis useful and find their competitive advantage.
SWOT analysis aims to identify the key internal and external factors seen as important to
achieving an objective. The factors come from within a company's unique value chain.
SWOT analysis groups key pieces of information into two main categories:
1. internal factors the strengths and weaknesses internal to the organization
2. external factors the opportunities and threats presented by the
environment external to the organization

Analysis may view the internal factors as strengths or as weaknesses depending upon
their effect on the organization's objectives. What may represent strengths with respect to
one objective may be weaknesses (distractions, competition) for another objective. The
factors may include all of the 4Ps; as well as personnel, finance, manufacturing
capabilities, and so on.
The external factors may include macroeconomic matters, technological change,
legislation, and socio-cultural changes, as well as changes in the marketplace or in
competitive position. The results are often presented in the form of a matrix.
SWOT analysis is just one method of categorization and has its own weaknesses. For
example, it may tend to persuade its users to compile lists rather than to think about
24

actual important factors in achieving objectives. It also presents the resulting lists
uncritically and without clear prioritization so that, for example, weak opportunities may
appear to balance strong threats.
It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of
individual SWOTs will be revealed by the value of the strategies they generate. A SWOT
item that produces valuable strategies is important. A SWOT item that generates no
strategies is not important.

2.1. STRENGTHS
1. HDFC offers a range of individual and group insurance solutions.
2. HDFC has the financial expertise required to manage your long-term
investments safely and efficiently.
3. The company has covered over 8,77,000 lives year ending March 31,
2007
4. Rated AAA by CRISIL and ICRA for the 10th consecutive year for
High service standards
5. HDFC Bank industry is a rapid growing and a nobler service industry.

2.2. WEAKNESSES
1. LIC is prevalent and sustains even today a major source of population.
2. Low number of offices and network and number of life insurance agents.
25

3. Lack of knowledge and expertise.

4. Heavy management expenses and administrative costs.
5.

Low customer confidence on the private players.

6.

Poor retention percentage of tied up agents.

2.3. OPPORTUNTIIES
1. HDFC has captured its mere15 20% growth therefore a wide open
untapped market is open to the company to develop, grow and measure its
success.
2. Still the number of companies are few and company has every
capabilities to grow and forward its performance areas to the widest

2.4. THREATS
1. People are hesitant to invest and put their hard earned money to the
private life insurance company with the fear of getting lost.
2. Belief Banks (government) corporation phobia is continue to surmount
the people of India despite lots of flaws and development and
liberalization of life insurance.
3. Alternative financial services such as mutual fund, banking services,
share and securities also pose problems and threats to the working of the
life insurance sector.

26

4. Illiteracy and unemployment also pose threat.

2.2.1 Best Practices/USPs that the Company Follows in different

Functional Area
Hdfc is also creating its vantage position in service sector for Indians residing overseas.
MLM (Multi level marketing) or direct marketing is followed by the company. The
good example of its products with clear USP is Sharing Your Responsibilities.
Hdfc is offering its services in terms of Plans and each of them has their own unique
feature i.e. Unique Selling Proposition. These features allow company to be used as a
branding tool that deploys strategy to how to attract people from the market.

27

Chapter 3
Functional analysis of at the Company

28

MARKETING STRATEGY OF HDFC

Banking Industry is one of the most important service industries which touches the lives
of millions of people. Its service is unique both in social and economic points of view of
a nation. Earlier the attitude of banking service was that it was not professional to sell
one's services
and was unnecessary in the sense that traditional relationships and quality of products
were sufficient to carry forward the tasks. Before the mid 1950's the banks had no
understanding or regard for marketing. The bank building was created in the image of a
Greek Temple to impress the public about the importance of a bank. The interior was
austere and the teller rarely smiled. Bankers maintained austere dignity and they hardly
maintained friendliness Marketing strategy is defined by David Aaker as a process that
can allow an organization to concentrate its resources on the optimal opportunities with
the goals of increasing sales and achieving a sustainable competitive advantage.
Marketing strategy includes all basic and long-term activities in the field of marketing
that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore
contribute to the goals of the company and its marketing objectives

It was in the late 1950's that marketing in banking industry emerged in the west. It
emergence was in the form of advertising and promotion concept. At that time, personal
setting could not get a significant place. (.3radually there was a change in the attitude of
bankers, probably in time with the attitudinal change in customers. The idea of customers'

29

satisfaction began in the late 1950's, flourished in 1960's and became an integral part of
the banking services in the
1970's. But the same trend could not be applicable, especially in developing countries and
to be more specific in India because of socioeconomic and political reasons. Marketing
came into Indian banks in the late 1950's not in the form of marketing concept but in the
forms of advertising and promotion concept. Soon it was realised that marketing
transcends advertlslng and friendliness'. Till 1950 it was recognised that personal selling
was not necessary. The bankers went out of their way to avoid being accused of selling.
The bankers even eliminated the word 'selling' and they called the function of customer
contact 'business development function'. The bankers' attitudes and comprehensions
about marketing changed in the 1960's. They began to realise that marketing was a lot
more than smiling and friendly tellers2. The idea of
customer convenience began in the late fifties and it flourished in the 1960's. Bankers
were beginning to understand the concept of market segmentation in the late 1960's. The
bank marketing profession changed dramatically in the 1970's. Marketing positions in
banks were created and marketing was accepted as an organisational imperative. To
understand how banking services can be marketed better, one must examine bank~nga s a
service industry, in the content of a swiftly changing environment, redefine marketing to
suit a banker's needs, analyse how the marketing of financial services differs from that of
other products, identify the tasks involved there in and set forth a series of steps for
effective bank marketing

30

Marketing Strategy of HDFC

The frantic pace of branch expansion and credit disbursement during the development
banking
period has direct impact on the health of public sector banks. The real outcome was the
proliSt*ration of loss-making branches. The problem of communication and tl.anspot-t
network in the countryside, rising customer dissatisfaction with banking services, and
resultant apathy of bank staff towards developmental work are the basic reasons for this.
The RBI urged coinmercial banks to take stock of the state of affairs, to consolidate their
gains and go slow on branch expansion, thus ushering in the period of consolitiation. The
bank visualises the r ~ s kin herent in continuing to do business as before. So there is a
growing awareness that market~ng was an essential tool in the hands of the banker, an
inescapable necessity without which perhaps survival itself might become difficult in
future. The most importarit factors which have given a momentum to the bank marketing
in the country are Financial Disintermediation. The basic job of a banker IS to accept
deposits from investors and or depositors and after probiding funds for statutory
obligation like SLR and CRR bank extend loan to borrowers. The difference between
deposit interest rate and the loan interest rate is the banker's 'spread'. Thus the bank acts
as an interlinking factor and this is called financial intermediation
Financial Intermediation of HDFC
In another angle, the banker brings together those who have surplus fund and thosr who
are in need of it. This has been the process for the last few decades in India. Now due to
the opening of new avenues for both deployment of surplus fund and also for securing
funds, meeting of depositor and borrower via banks are now meeting without the
31

mediation of bank. There are a number of non-banking alternat~vesf or the depositor like
share market, Post-office saving, UTI,
mutual funds and company fixed deposit. All these are investment avenues and many
other similar ones have flooded in to the Indian financial market. Furthermore, it is an
unavoidable process of rapid economic growth. The outcome of these processes is
undermining the traditional banking function of intermediary between investors and
borrowers. This is known as the process of financial disintermediation
DEPOSITOR BANKER BORROWER
Financial Disintermediation
The baslc outcon~e is that the process of financial disintermediation cut tlic. roof of
traditional banking. On the one side, deposit mobilisation is threatened because of
alternative lucrative
investment avenues are available to depositors. Similar is the case for lending aspect also
because borrowers can now access cheaper and less cumbersome avenues tor raising
resources. In a nutshell, financial disintermediation has created a serious threat to the
very survival and
growth of basic banking activities. In such a situation, banks have been frantically
looking for
alternatives to survive and thrive. It is here that bank marketing came to their rescue.
With its emphasis on the centrality of the customer to entire banking operations, the bank
marketing concept has provided a way out in the form oi' a host of new banking services
and instruments.

32

Bank marketing has ernerged as the principal survival strategy for banks confronted with
an accelerating pace of disintermediation. Another face of the growth of Indian economy
in recent years has been the fantastic increase in needs and expectation of banking
customers, Important factors for this change are - The spread of Television, including
access to international
channels, - Rise of Indian middle-class with considerable financial resources ant1
furthermore, a higher propensity towards consumption, - Entry of foreign and private
sector banks in India, - Break-up of the joint family system in urban India, and - Govt.
intervention for protecting the interest of consumers. All these and similar other
developments have combined to produce a typical bank customer who is no longer
prepared to accept things lying down. HI: has started harbouring higher-expectations
from banks to fulfil his newfound needs and has become quite articulate about them".
Now due to the change in the attitude of' customers, banks
cannot continue with their "take it or leave it" attitudes. If they do so they will lose their
customers because customers have a number of other options. So banks must be closer to
the customer in order to satisfy them. In other words, this is exactly what bank marketing
is.
An offshoot of economic liberalisation is the phenomenal growth in competition in the
banking industry. A number of private sector banks with considerable financial might and
expertise have already made an entry. In addition to this, foreign banks have also made
their presence in the country Besides, a large number of Non-banking Finance
Companies as awe11 as recently proposed local area banks are competing to get the
maximum share of the market. So for the first

33

time, bank customers in lndia are going to have a choice. This situation brings 'bank
marketing' to increase business and profit. Marketing strategies serve as the fundamental
underpinning

of marketing

plans designed

to

fill

market

needs

and

reach marketing objectives. Plans and objectives are generally tested for measurable
results. Commonly, marketing strategies are developed as multi-year plans, with a tactical
plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however,
time horizons are becoming shorter as the speed of change in the environment
increases. Marketing strategies are dynamic and interactive. They are partially planned
and partially unplanned. See strategy dynamics. Marketing strategy needs to take a long
term view, and tools such as customer lifetime value models can be very powerful in
helping to simulate the effects of strategy on acquisition, revenue per customer and churn
rate.
Marketing strategy involves

careful

scanning of

the

internal

and

external

environments Internal environmental factors include the marketing mix andmarketing

mix

modeling,

environmental

plus
factors

performance
include

analysis

customer

and

strategic

constraints External

analysis, competitor

analysis, target

market analysis, as well as evaluation of any elements of the technological, economic,

cultural or political/legal environment likely to impact success A key component of
marketing strategy is often to keep marketing in line with a company's
overarching mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to
identify business alternatives, establish challenging goals, determine the optimal
34

marketing mix to attain these goals, and detail implementation. A final step in developing
a marketing strategy is to create a plan to monitor progress and a set of contingencies if
problems arise in the implementation of the plan.
Marketing Mix Modeling is often used to help determine the optimal marketing budget
and how to allocate across the marketing mix to achieve these strategic goals. Moreover,
such models can help allocate spend across a portfolio of brands and manage brands to
create value.
The customer of HDFC bank today is most discerning. With banks operating in a
buyer's market, the customer looks for a bank which can meet all his present ant1 future
requirements at an affordable competitive cost. He is also increa:;ingly quality-conscious.
Almost everyone would appreciate that no two classes of customers are alike. Therefore
in any environment relating to a banks branch or region, the potential clientele can
always be classified into different homogeneous segments and distinct 4 Ps package
judiciously offered to each segment.
Market segmentation is the strategy of dividing markets inorder to conquer them, a
continuous policy of looking for differences, geograph~cal or otherwise in the total
market and the continuous exploitation of these differences2'. Market segmentation
differentiates customers with similar banking needs from those with dissimilar needs. If
homogeneity is greater in needs and behaviour of a group of customers then it is easier to
understand them. In addition to that, segmentation provides a solid basis upon which the
marketing strategy of a bank can be designed. Furthermore, segmenting the market also
helps to evolve a distinctive marketing package for each segment based on the needs of

35

different customer segment. This in turn helps the marketer to cultivate in the customer's
mind a perception of
psychological membership of bankers' offerings. A customer is more likely to have a
feeling that the given marketing package has been specially designed for a person like
him only, and not for everyday. This will result in greater satisfaction of customer needs
which will inturn result in to higher return for every rupee spent.

Marketing literature is teeming with information about the different basis on which
market segmentation may be attempted. Some of the popular basis of segmentation are
geographic, demographic, psychological, volume., benefit2' etc. Geographic
segmentation in the banking context, one may have variations like metropolitan, urban,
rural, north west, east, south, large city, small city on the b;asis of population, hill area,
tribal area and desert area. By this segmeni.ation, it is assumed that customers in a given
geographic region would show a high degree of homogeneity in their banking needs. As
geographic region are already demarcated, it is the easiest way of segmenlation.
Generally, geographic segmentation could be further extended on the basis of
demographic segmentation of customers. Typical demographic parameters in use are age,
sex, income, occupation education, social class etc. In India, geographic and demographic
segmentation combined together are likely to yield far more homogeneous segments than
either of them individually.

36

HDFC Customer Focus are:

The extent to which what customers say they want does not match their
purchasing decisions. Thus surveys of customers might claim that 70% of a
restaurant's customers want healthier choices on the menu, but only 10% of them
actually buy the new items once they are offered. This might be acceptable except
for the extent to which those items are money-losing propositions for the
business, bleeding red ink. A lesson from this type of situation is to be smarter
about the true test validity of instruments like surveys. A corollary argument is
that "truly understanding customers sometimes means understanding them better
than they understand themselves." Thus one could argue that the principle of
customer focus, or being close to the customers, is not violated herejust
expanded upon.

The extent to which customers are currently ignorant of what one might argue they
should wantwhich is dicey because whether it can be acted upon affordably depends on
whether or how soon the customers will learn, or be convinced, otherwise. IT hardware
and software capabilities and automobile features are examples. Customers who in 1997
said that they would not place any value on internet browsing capability on a mobile
phone, or 6% better fuel efficiency in their vehicle, might say something different today,
because the value proposition of those opportunities has changed
Types of market research
Market research, as a sub-set aspect of marketing activities, can be divided into the
following parts:
37

Primary research (also known as field research), which involves the conduction
and compilation of research for a specific purpose.

Secondary research (also referred to as desk research), initially conducted for one
purpose, but often used to support another purpose or end goal.

By these definitions, an example of primary research would be market research

conducted into health foods, which is used solely to ascertain the needs/wants of the
target market for health foods. Secondary research in this case would be research
pertaining to health foods, but used by a firm wishing to develop an unrelated product.
Primary research is often expensive to prepare, collect and interpret from data to
information. Nevertheless, while secondary research is relatively inexpensive, it often can
become outdated and outmoded, given that it is used for a purpose other than the one for
which it was intended. Primary research can also be broken down into quantitative
research and qualitative research, which, as the terms suggest, pertain to numerical and
non-numerical research methods and techniques, respectively. The appropriateness of
each mode of research depends on whether data can be quantified (quantitative research),
or whether subjective, non-numeric or abstract concepts are required to be studied
(qualitative research).
There also exist additional modes of marketing research, which are:

Exploratory research, pertaining to research that investigates an assumption.

Descriptive research, which, as the term suggests, describes "what is".

Predictive research, meaning research conducted to predict a future occurrence.

38

Conclusive research, for the purpose of deriving a conclusion via a research

process.

3.1. RECRUITMENT POLICY for Financial Consultants

In todays rapidly changing business environment, a well defined recruitment policy is
necessary for every organization so as to respond to its human resource requirements in
time. HDFC SLI thus believes that it is important to have a clear and concise recruitment
policy in place, which can be executed effectively to recruit the best talent pool for the
selection of the right candidate at the right place quickly.
Recruitment policy of any organization is derived from the personnel policy of
the same organization. In other words the former is a part of the latter. However,
recruitment policy by itself should take into consideration the governments reservation
policy, policy regarding sons of soil, etc., personnel policies of other organizations
regarding merit, internal sources, social responsibility in absorbing minority sections,
women, etc. Recruitment policy should commit itself to the organisations personnel
policy like enriching the organisations human resources or servicing the community by
absorbing the retrenched or laid-off employees or casual/temporary employees or
dependents of present/former employees, etc.

39

A clear and concise recruitment policy helps ensure a sound recruitment process.
It specifies the objectives of recruitment and provides a framework for implementation of
recruitment program. It may involve organizational system to be developed for
implementing recruitment program and procedures by filling up vacancies with best
qualified people.
HDFC SLI has formulated its recruitment policy giving consideration to the
following factors:

Organizational objectives

Personnel policies of the organization and its competitors.

Government policies on reservations.

Preferred sources of recruitment.

Recruitment costs and financial implications

3.2. RECRUITMENT PROCESS IN HDFC SLI

The job evaluation of the vacancy is done so as to understand to understand the skills
required in the candidate. Recruitment when done via external sources generally follows
the following process in HDFC SLI:
3.2.1 CV Submission
Information regarding the vacancies and required eligibility criteria is published in the
newspapers, websites, employment magazines etc. Potential candidates interested in
joining the Co are required to send their complete curriculum vitae. An acknowledgement
of receipt is sent for all submitted applications to the candidate's email.

40

3.2.2 Application Evaluation

The Human Resources department evaluates all incoming applications, against
prerequisite abilities and skills set for all current openings. All applications are kept based
on strengths and specialization, for future reference.
3.2.3 Ability Tests
Potential candidates will be invited to participate in aptitude tests i.e. numerical, verbal,
English and psychometric, when deemed necessary.
3.2.4 Capability Based Interviews
To ensure that our recruitment process is fair and consistent, all candidates who are
successful at the exams are invited for a capability based interview. Interviews are based
against capabilities, required for each position for which the candidate is interviewed for.
A capability or competency is an ability described in terms of skills & behaviors that are
essential to effectively perform within a job.
Apart from the educational and academic capability, the chief attributes HDFC SLI looks
out for in a candidate are as follows:
We look out for a candidate who values Integrity
Has a zeal for Excellence
Is focused on Results
Is Self driven and Enthusiastic
Is a good Learner and Team Player
Is dedicated to Customer Satisfaction

41

3.2.5 Reply Letters

At all stages of the process candidates are kept informed of the status of their application
with an email reply letter.
3.2.6 Job Offer
If a candidate successfully reaches the final stage, a position offering is made in
conjunction with a competitive reward package.
3.2.7 FACTS AND FINDINGS
HDFC SLIs recruitment policy is well structured and provides the company with a
competitive edge due to the following reasons:

The recruitment policy focuses on recruiting the best potential people.

It ensures that every applicant and employee is treated equally with dignity and
respect.

It is an unbiased policy.

It aids and encourages employees in realizing their full potential.

IT allows transparent, task oriented and merit based selection.

It abides by relevant public policy and legislation on hiring and employment

relationship.

It Integrates employee needs with the organizational needs

42

EXCELLENT OPPORTUNITY

Join HDFC Standard Life Insurance as a Financial Consultant

Flexible work timings You can work whenever you like.

and earn a rewarding career

You can work full-time or part-

time, depending on your convenience. However, the time you invest will determine
your success

Anyone can join

- Young graduates, Housewives, Retired Personnel, Self-employed

or Working Professionals.

Zero Investment

- There is no start-up capital required. Be your own boss with

flexible working environment, unlimited earning potential and opportunities to be

part of a world class sales team.

Attractive Remuneration - Company offers excellent commissions, award and rewards for the
performers.

You have unlimited earning potential. Commission structure is pretty handsome and
is 15-40% and renewal commission of 5% second year onwards till the policy is in
force.

Certificate by IRDA- You will get world class training free of cost and
certification by Insurance Regulatory Development Authority.

43

Desired Profile:
Age: 18Yrs to 65 Yrs
Education: Intermediate or more
Experience: Not mandatory
Type of Job: Full Time or part time

Documents Required:
8 photograph
Age proof (passport, Birth certificate, College Leaving Certificate, Driving License)
Address proof
Education proof
Copy of PAN Card
Duely Signed Cancelled Cheque of self
A candidate needs to bring a DD of Rs. 925/- in case of offline training and Rs.825 in
case of online training towards HDFC SLIC LTD payable at Mumbai.

44

Recruitment process of FCs

Fill up of Agency form

IRDA Training (100 hrs)

IRDA Exam

Fail

Pass

Exit

Product Training

Tradition Product

ULIP Product

Internal Assessment

Fail

Exit
Fig. No.3.1 Recruitment Process of Financial Consultants

45

Pass

Certification

The Career Path in HDFC Standard Life Insurance Company Ltd. mainly has two
operations in its all branches. HDFC Standard Life Insurance Company Ltd. has divided
its operation into two departments for the better management. These departments are:
Channel Development Department
1. Area Managers
2. Channel Development Managers
3. Channel Development Executives
4. Recruitment Consultant
Sales Department
1.

Territory Manager

2.

Business Development Managers

3.

Sales Development Managers

4.

Financial Consultants

3.3.Channel Development Department

Channel Development Department is department which plays a major role in the
organization. This department is engaged in recruiting the effective and efficient FCs for
the organization so the people they are recruiting is capable to bring the business for the
organization and fulfill the organizational goals and objectives. Recruiting the FCs not
only task for the channel development department but to provide the IRDA training to the
selected candidate and preparing for the IRDA exams for getting the IRDA license. After
getting the IRDA license a candidate is able to sell the insurance product and become the

46

Financial Consultant, and he/she transferred to the sales department for the further
process.

3.3.1Role of CDMs
1. Team building The first step for any CDM is make a team for the recruitment process.
A CDM can use the different resource for the recruitment like Recruitment Consultants &
Project. Through these resource of recruitment a CDM can move for the further process.
2. Training & Induction The next step is to provide the training & induction programs
for his/her team (i.e. recruitment resource) and he/she should has to do field work with
his/her team.
3. Planning & Implementation of Lead Generation Activities. A CDM required
minimum one BOP per week, he can use the canopy, road shows, BTL activities as well
for better recruitment for the organization.
4. Resource Motivation and Drive.
One Vendor Review meet per Week ( Channel Development Manager to Review)
One Vendor Meet per Month( AM-CD to Address) Felicitation & Rewards to top
performers
5. IRDA Training & Examination A CDM has to arrange FCs 50 hours training
tracking through LC & RCs. and IRDA Examination tracking through increasing I/O
Ratio.

47

6. Relationship Management at Local Level A CDM has to be regular branch visits to

keep the better relationship with local level:

Relationship Management

FC Recruitment, Licensing & Business Updates to Retail functions

Updating Ops-Agency Co-Ordinator on Process Change

7. Checking Quality Parameters

Q Score

Q Score >3 is not allowed

FC Pre Login Interview Sheet

Fulfillment of RI documents

8. Recruitment Activity Monitor

Ensure you update RAM daily

100 % adherence

3.4.Sales Department
Sales Department is the most important department for any organization, without it no
organization move further. All the business is depends on the sales department and all
the operations are done for promoting the sales. So i.e. the better management and better
sales executive are require for increasing the sale of Insurance products (Insurance
Policies).

The Territory Manager monitors the branch and all the BDMs are the

subordinate of him. TM keeps the eyes on all the activities or a branch and his/her
48

subordinates like BDMs, SDMs, CDMs, FCs and others.

The Channel Development

department helps in recruiting the best Financial Consultant to the organization so he/she
would be able to take more business (large amount of Premiums) and helps in achieving
the organizational goal. After getting the IRDA licence FCs are transferred to sales
department from channel development department under different SDMs & BDMs. Then
sales department provides them product and other training which can make them to go in
the market and to sell the insurance policies

3.4.1Job Description for Financial Consultants:

3.4.11 Pre sales role

Identifying prospective clients.

Meeting prospective clients.

Understanding the need of the client.

Presenting solutions to client.

Closing sales.

Post sales role

Taking 1-2 references from the client

Providing timely updates to the client for maintaining Lifelong relationship.

HDFC Company was a strategic merger of HDFC(banking powerhouse in India) and

Standard Life largest insurer in the UK and is also the 28th largest company in the
world. In India, the company is marketing life insurance products and unit linked
investment plans. From my research at HDFC SLIC, I found that the company has a lot
of competition from other private insurers like ICICI, Aviva, Birla Sun Life and Tata
49

AIG. It also faces competition from LIC. To compete effectively HDFC SLIC could
launch cheaper and more reasonable products with small premiums and short policy
terms

(the

number

of

years

premium

is

to

be

paid).

Insurance sector has become more dynamic and critical for thriving existence in todays
uncertain world. Selling insurance as a product is a lot difficult in practicality as it looks
theortically. One has to get an insight into this field to resolve it.Working for such
objective will definitely hone us and once accomplished it provides a great satisfaction of
fulfillment. It also helps us to understand the real organizational problems, perceptions
and challenges. This will add a very useful knowledge to our repertoire in the form of
knowledge about the nitty-gritty of one of the most promising sectors in India i.e the
banking and insurance sector
GROWTH AND MARKETING
In good times and bad, HDFC Bank sticks to its 30 per cent profit growth. Delivering
such growth, quarter after quarter, is a carefully crafted strategy. Its a well known fact
that the bank increases its provision cover for its loans, such that it can deliver 30 per cent
growth in more challenging years. This strategy is evidently paying off this year. Though
the net interest income has grown at 22.3 per cent in the first quarter compared to the
corresponding one last year, the bank has managed to deliver a 30 per cent net profit
growth.
The bank is nimble-footed enough to change its loan mix in different scenarios. With
corporate India going through a difficult phase, the bank has increased the share of retail
loans to 52 per cent now from under 50 per cent last year. Analysts say the bank is
growing ahead of the sector across most retail segments. According to Emkay Global, the
50

33 per cent growth in retail loans year-on-year (YoY) and 4.4 per cent quarter-on-quarter
was predominantly led by automobile loans (up 19 per cent YoY), commercial vehicles
(60 per cent YoY), business banking (27 per cent YoY), home loans (up 23 per cent
YoY) and personal loans (34 per cent YoY). These segments cumulatively account for 80
per cent of the retail loans.
Even as the rest of the industry is faced with deceleration in deposits, the bank has
managed to grow its deposits by 22 per cent YoY and 4.4 per cent sequentially. The
banks loan/deposit ratio has moved up by 360 basis points sequentially to 82.8 per cent.
The low-cost current account-savings account deposits have also grown by 14 per cent
YoY. Though the banks net NPAs are up 24 per cent annually and 12 per cent
sequentially, Vaibhav Agarwal of Angel Broking says it has enough fire power to sustain
a bottom line growth of 30 per cent even after provisions and a net interest income
growth of 22 per cent
Analysts say since the bank has created a buffer in good times, it would be able to deliver
superior earnings even in difficult times. Would this kind of growth sustain in the years to
come? Given that Indias nominal GDP growth is 12-14 per cent, analysts believe credit
growth would be in 17-20 per cent. Given that HDFC Banks share in the banking sector
is 4.3 per cent, there is enough room for growth. This effectively means the bank can
grow at least 22-25 per cent for some more years

51

Chapter 4
Lessons Learnt

52

4.1. Working Environment

Company has a well motivated staff as every employee is engaged in performing

their own work.

There is strict discipline regarding working hours in the company which reaps
employee turnover.

Good working conditions are provided to the employees so that employee can
perform their task efficiently.

If any employee has any doubt or clarification it can be easily resolved by consulting
it with immediate superior. This makes an employee perform the tasks in the manner
as required by the company.

Appropriate time for break is given to the employees of organization.

4.2. Personal Experience

With this summer training lot information in the field of finance and insurance is
now known to me.

Much information regarding performance of other companies in the same field is

also known to me.

Hard work & zeal to work is very much needed to be on the top in a trading
company as there is very high competition in this field.

This company is utilizing the talents of its employees in a very efficient manner as
every person has been assigned different tasks to perform. This makes the work of
the company in a very efficient way.
53

Working time in the company is strictly followed with which employees are also
satisfied.

4.3. PRACTICAL KNOWLEDGE GAINED DURING THE SUMMER TRAINING

Working under Hdfc Life has been a great help and it has helped in the following ways
1) Getting knowledge about the Indian markets.
2) Getting to know how to sell policies through telephonic conversation
3) Knowledge about the market share of various companies offering many types of
services to the customers including health policies, holiday packages etc.
4) Dealing with people face to face and telling them about the companys products and
services.
5) Solving the problem of customers is very important for the organization as it fosters
long term relationship between the customers and organization.
6) As the competition in the market is very tough it is very important for the organization
to offer the best services and to work hard to survive n the market.
7) The organisation must take care of the needs of the people and satisfy their needs so as
to survive in the market.

54

4.4. Difficulties Faced

First of all working in new field was difficult to adapt.

As my summer training was in the field of finance and marketing, it was difficult
to work as a sales executive of the company and increasing the business through
selling policies and recruitments

There was a lack of time to expose, learn and analyze the environment fully as
well as to complete the project.

4.5. SUGGESTIONS FOR TRAINING OF STUDENTS IN FUTURE

Summer training for students is important because it is the time to obtain as much
knowledge about their field. As a student, training can help you to implement the
concepts you learned at your classes. It is true that without learning a concept you can't
implement it, but just learning a concept doesn't mean that you can correctly implement
it. Training also helps the student to get an exposure of the true business world and
training develops confidence in whatever we have learned. Training helps to train the
students for future challenges .
So students shall be sent for Training because it proves to be helpful for the student as
they learn new things and get to know the working environment of the organizations.
And this is also an opportunity for the students to face the real problems which they may
face in their future.

55

4.6 CONCLUSION
Summer training is a best example for a trainee to learn about the company working,
corporate culture under which is operating the functions. HDFC is company under
which I gained a significant knowledge with respect to Financial concepts, its
importance and applicability as well as undertook the task to recruit capable life
insurance advisors which is conducive for the company to grow with more
prosperity. What I taught in the management institute utilized them fruitfully leading
to the best advantage to the company and to the best experience for mine.
At far I can conclude that life insurance is a noble service which is very important
for every citizen to learn and realize its importance because this is the only source
which can remain the status where one is with the family bread earner and ever when
he is not.
With the growing financial sector I would like to opt. this industry for my future
career advancement and as an opportunity to service this industry.
From this 40 days experience in a corporate, I got a good exposure about what really the
corporate life is about. Its waking along with targets and mind stresses every morning.
The person who can manage these target and stress are shining in those fields.
The practical experience is an entirely different aspect when considered about what we
learnt in classroom. This summer training report would reveal the various learning
process. I have learned some of the key things like how to behave in the organization?
How to talk with customers? how to communicate with senior officials?

56

The study, which I conducted on the analysis of finance and marketing, public relations
of Hdfc Life , has been a great experience.
As the objective was to examine the Finance department of the company the entire report
has been an effort to do just that. The insight obtained has been helpful in understanding
what happens in the industry.

57

References/Bibliography

http://www.hdfclife.com/

http://www.hdfclife.com/AboutUs/AboutUs.aspx

http://en.wikipedia.org/wiki/Standard_Life

Internal Experts

Company Audit Reports

Journals

58