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    Rambir Insurance Group 2

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    Nitin Agarwal
    Rambir Singh, a 43-year-old farmer, is approached by an insurance agent, Ratan Sharma, to purchase an insurance policy for his daughter's future. Rambir is unsure whether to buy insurance and discusses the option with his two brothers - Satish, an engineer, and Laxman, a chartered accountant. The case also examines whether Ratan targeted the right customer segment given new competitors entering the market. It provides background on the characters and their socioeconomic classifications to determine which segment has the most potential for insurance sales. The analysis concludes Rambir's segment (B1) should be the target as it has higher potential returns than his brothers' segments (A2).

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    Attribution Non-Commercial (BY-NC)
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    Rambir Insurance Group 2

    Uploaded by

    Nitin Agarwal
    907 views15 pages
    Rambir Singh, a 43-year-old farmer, is approached by an insurance agent, Ratan Sharma, to purchase an insurance policy for his daughter's future. Rambir is unsure whether to buy insurance and discusses the option with his two brothers - Satish, an engineer, and Laxman, a chartered accountant. The case also examines whether Ratan targeted the right customer segment given new competitors entering the market. It provides background on the characters and their socioeconomic classifications to determine which segment has the most potential for insurance sales. The analysis concludes Rambir's segment (B1) should be the target as it has higher potential returns than his brothers' segments (A2).

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    Rambir Singh, a 43-year-old farmer, is approached by an insurance agent, Ratan Sharma, to purchase an insurance policy for his daughter's future. Rambir is unsure whether to buy insurance and discusses the option with his two brothers - Satish, an engineer, and Laxman, a chartered accountant. The case also examines whether Ratan targeted the right customer segment given new competitors entering the market. It provides background on the characters and their socioeconomic classifications to determine which segment has the most potential for insurance sales. The analysis concludes Rambir's segment (B1) should be the target as it has higher potential returns than his brothers' segments (A2).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    907 views15 pages

    Rambir Insurance Group 2

    Uploaded by

    Nitin Agarwal
    Rambir Singh, a 43-year-old farmer, is approached by an insurance agent, Ratan Sharma, to purchase an insurance policy for his daughter's future. Rambir is unsure whether to buy insurance and discusses the option with his two brothers - Satish, an engineer, and Laxman, a chartered accountant. The case also examines whether Ratan targeted the right customer segment given new competitors entering the market. It provides background on the characters and their socioeconomic classifications to determine which segment has the most potential for insurance sales. The analysis concludes Rambir's segment (B1) should be the target as it has higher potential returns than his brothers' segments (A2).

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Rambir Singh and His Family: Buying Insurance

    Background
    The case is about Rambir Singh who has been approached

    by Ratan Sharma, insurance agent to purchase an insurance for his daughters future needs.
    Rambir is in dilemma whether he should buy insurance or

    not. He reviews his situation and also takes advise from his two brothers.
    The case discusses the dilemma for Ratan Sharma that

    whether he has chosen the right segment to target, given the situation that new competitors are entering the market.

    Characters
    Rambir Singh:

    Trader of Agricultural commodities in Rampur Wife of Rambir Singh Brother of Rambir Singh Brother of Rambir Singh Life Insurance Agent working with IIC.

    Sapna Devi: Satish: Laxman: Ratan Sharma:

    Profiles
    Rambir Singh Age: 43 Years Marital Status: Married Kids: Daughter and Son Family: Joint Family FLC: Full Nest Occupation: Trader Education: College dropout City: Rampur Traits: 1.Worries about family 2.Opinion Seeker 3. Wife and brothers influence his decisions Satish Occupation: Engineer Education: Graduate Kids: 8 year old son Wife: Is a school teacher Laxman Occupation: CA Wife: Training for CA Kids: None Traits: More risk oriented

    SEC Classification Basis

    SEC Classification
    SEC system based on two variables: Education of chief earner Number of consumer durables (assumed) owned by the family.

    Rambir Singh Education: High school Number of consumer durables: 6 SEC: B1

    Satish Education: Graduate Number of consumer durables: 7 SEC: A2

    Laxman Education: Graduate Number of consumer durables: 7 SEC: A2

    Targeting
    Rampur Population: 300,000

    Distribution of different SEC

    Targeting
    Segment Size:

    A1: 0.04% or 20 Households A2: 0.4% or 200 Households A3: 1.3% or 650 Households B1: 2.3% or 1150 Households B2: 3.2% or 1600 Households 20% market penetration in each segment. Market Share for IIC is 90% Sec A1 pays twice the premium than B1 Sec A2 and A3 pays 1.5 times the premium of B1 Sec B1 and B2 pays the approx the same premium

    Assumptions:

    Targeting
    Value creation: Sec A1: 20*0.2*0.9*2x = 7.2x Sec A2: 200*0.2*.0.9*1.5x = 54x Sec A3: 650*0.2*0.9*1.5x = 175.5x Sec B1: 1150*0.2*0.9*1x = 207x Sec B2: 1600*0.2*0.9*1x = 288x
    Based on the above calculation Sec B1 (Rambir) should be targeted

    as sec B1 has more potential (almost 4 times) than sec A2 (Satish and Laxman).

    Also people like Rambir in sec B1 are opinion leader and can

    influence other farmers belonging to sec B1 and B2 which further increases the attractiveness of this segment and increases the market size.

    Positioning

    Value-priced, trustworthy, reliable, ethical and flexible insurance options for the traders and rural community to realize their dreams of better trade and agriculture, child-education and marriage, pensions in the later parts of their lives with guaranteed returns and personal touch.

    Products

    Marriage Products Life Insurance Products Health Insurance Products Education related Products

    Pricing
    Value-pricing driven pricing models Proper coverage addressing one or more insurance areas e.g. combo

    insurance products
    Guaranteed return schemes for rural people Multiple payment options e.g. on preferred days of month or in

    cash, etc.
    Waivers if one fails to pay premiums for genuine reasons

    Place
    Word-of-mouth should play a powerful role Village congregations are the ideal forum to spread awareness Getting on board the most influential villagers (such as Rambir

    himself) to set examples for others to follow suit


    Participation in and sponsoring of events that rural folks enjoy the

    most
    Building a base customer support representatives to attend to

    complaints, support, etc.

    Promotion
    Insurance agents could tie up with moderately educated rural folks

    to train them free of cost on how insurance products work, benefits thereof, etc.

    Awareness through such folks in exchange for incentives e.g.

    commissions, gifts, etc. Good performers could be encouraged to become agents themselves

    Rural melas or fairs rather than advertisements could be

    organized to build product awareness

    Incentive schemes for the earliest subscribers by way of reduced

    premiums, etc.

    THANK YOU

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