Suryadatta Education
Foundation’s Suryadatta Institute of Management & Mass communication, SIMMC Campus; Survey No. 342, Near Chandani Chowk, Opp. Crystal Honda, Bavdhan (BK),
PROJECT REPORT ON INDUSTRY ORIENTATION (FMCG,INSURANCE & TELECOM SECTOR)
SUBMITTED BY BHARAT KUMAR PUROHIT IN THE PARTIAL FULFILMENT OF CORPORATE MASTER OF BUSINESS ADMINISTRATION (PGDM)
TO 1
SURYADATTA INSTITUTE OF MANAGEMENT & MASS COMMUNICATION (SIMMC) PUNE 2008-2010
2
ACKNOWLEDGEMENT
The last few days has been full of learning and sense of contribution towards the organization .I would like to thank suryadatta group of institute for giving me an opportunity of learning and contributing hrough this project .I would like to thanks all the people who knowingly and unknowingly supported me in the endeavour. As a student of the suryadatta institute of management and mass communication(simmc) pune .I would first of all like to express my gratitude to all the outset I would like to express my deep gratitude to all of them whose collective effort leads to the successful completion of my project network
3
CONTENT S. NO
CHAPTER
1.
INTRODUCTION
2 SECTOR
STUDY OF
A.FMCG (ITC,HUL,AMUL) (
B.INSURANCE KOTAK,LIC,BAJAJ)
C.TELECOM (AIRTEL,BSNL,AIRCEL) 4
3
ANALYSIS
4 LEARNING EXPERIENCE 5
BIBLIOGRAPHY
5
SECTOR 1
6
7
Company 1 Hindustan unilever limited
Intoduction COMPANY PROFILE Hindustan Unilever Limited (HUL) is India's largest fast
moving
consumer
goods
company,
with
leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20 distinct consumer categories, touch the lives of 8
two out of three Indians. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs.13,718 crores. The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among
360,675
individual
shareholders
and
financial institutions. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.HUL is 9
also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.Over time HUL has developed into a viable & competitive sourcing base for Unilever world wide in Home and Personal Care & Foods & Beverages category of products. HUl is also a global marketing arm for select licensed
Unilever
brands
and
also
works
on
building categories with core country advantage such as branded basmati rice.HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice 10
cream and culinary products. They are manufactured over 40 factories across India. The operations involve over 2,000 suppliers
and
associates.
HUL's
distribution
network,
comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.HUL believes that an organisation's worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIVpositive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation 11
after the Tsunami caused devastation in South India.In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 100,000 plus villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives of over 600 million people. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of 12
hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 84.6 million people in approximately 43890 villages of 8 states. The vision is to make a billion Indians feel safe and secure If Hindustan Unilever straddles the Indian corporate world, it is because of being single-minded in identifying itself with Indian aspirations and needs in every walk of life.
13
DISTRIBUTION NETWORK
Hindustan
Unilever's
distribution
network
is
recognised as one of its key strengths. Its focus is not only to enable easy access to their brands, but also
to
touch
consumers
with
a
three-way
convergence of • product availability, • brand communication, •
and higher levels of brand experience. HUL's products,manufactured across the country, are distributed through a network of about 7,000 redistribution stockists covering about one 14
million retail outlets. The distribution network directly covers the entire urban population. The general trade comprises grocery stores, chemists, wholesale,kiosks and general stores. Hindustan Unilever services each with a tailormade mix of services. The emphasis is equally on
using
stores
for
direct
contact
with
consumers, as much as is possible through instore facilitators. PRODUCT PROFILE Hindustan Unilever is biggest company in the FMCG (Fast Moving Consumer Goods) sector. Its products are divided into various categories. These are given as follows:Home and Personal Care: 15
under this it is further divided into two parts Dets: all the detergents and dishwashers are covered in this.For example, Vim, Rin, Surf Exel.Personal Products:
this comprises of all the products
related to personal care. these are as follows: Oral: toothpaste and toothbrush ( Pepsodent, Close Up) – Skin: soaps, talcum powder, fairness cream, (
body
Pears,
lotion,
Vaseline,
winter Fair
&
cream Lovely,
Ponds’) – Hair: Shampoos ( Sunsilk, Clinic All Clear) • SKIN CATEGORY 16
• PEARS • Introduced in India in 1902, Pears soap has no equal. It is gentle enough, even for baby's skin. • Pears is manufactured like any other soap, but unlike in conventional soaps, the glycerine is retained within the soap. That is the cause if its unique transparency. After manufacturing, the soap is mellowed under controlled conditions over weeks. At the end of this maturing process, it is individually polished and packed in cartons.
17
18
SUGGESTIONS
• The company can launch a new variant of Pond’s, which could be Pond’s Fairness Body Lotion. This will cater to the fairness need of whole body and not just hands and face. The target customer of this variant can be the youth who are more boldly dressed and want the whole texture of the skin to be same. Most of the time the face looks fairer than the hands and the legs. • To launch a display scheme for Pears which can counter the competition from Fiama Di Wills that it may face in the future. HUL can buy windows from the retailers for the display of Pears soap and face wash. •
The youth of today is not much into the consumption of fairness cream because they think it to be harmful for the skin and they are very conscious about the health of their skin. To cater to this segment of population which is very huge, Fair & Lovely can initiate activities which makes the youth aware about the 19
qualities of the brand and to make them understand that the cream is not harmful for their skin.
20
Company 2
ITC
21
Introduction ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 14 billion and a turnover of over US $ 5 billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's
Most
Respected
Companies
by
BusinessWorld and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.ITC has a diversified presence in Cigarettes,
Hotels,
Paperboards
&
Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded 22
Apparel, Personal Care, Stationery, Safety Matches and
other
FMCG
outstanding
products.
market
leader
While in
ITC
its
is
an
traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged
Foods
&
Confectionery,
Branded
Apparel, Personal Care and Stationery.As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nationoriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international consciously
competitiveness contributing 23
to
but
by
enhancing
also the
competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: superior
unmatched
brand-building
supply
chain
service
skills
capabilities,
management in
distribution and
hoteliering.
reach, effective
acknowledged
Over
time,
the
strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.
ITC's
Agri-Business
is
one
of
India's
largest
exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'eChoupal' initiative is enabling Indian agriculture significantly
enhance
its
competitiveness
by
empowering Indian farmers through the power of 24
the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively
create
for
ITC
a
huge
rural
distribution infrastructure, significantly enhancing the
Company's
marketing
reach.ITC's
wholly
owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, business
including process
e-enabled
services
outsourcing.ITC's
and
production
facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a 25
globalising environment to consistently reward more
than
3,60,000
shareholders,
fulfill
the
aspirations of its stakeholders and meet societal expectations.
1)History ď ś
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre
of
the
Company's
existence.
The
Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's
headquarter 26
building,
'Virginia
House', which came up on that plot of land two years later, would go on to become one of Kolkata's
most
venerated
landmarks.
The
Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's
multi-business
portfolio
encompassing a wide range of businesses Cigarettes
&
Tobacco,
Hotels,
Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. ď ś
Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed 27
the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.
28
ď ś
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for 1)
the nation. ITC chose the hotels business for its potential
to
earn
high
levels
of
foreign
exchange, create tourism infrastructure and generate
large
scale
direct
and
indirect
employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.In 1979, ITC entered the Paperboards business by promoting ITC 29
Bhadrachalam
Paperboards
Limited,
which
today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became
a
Division
Bhadrachalam
of
the
Paperboards
Company,
Division.
In
November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards
&Specialty
Papers
Division.
ITC'spaperboards'technology,productivity, quality
and
manufacturing
processes
are
comparable to the best in the world. It has also made
an
immense
contribution
to
the
development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It
is
directly
environmental development. paperboard
involved protection
In
2004,
education,
and
community
ITC
manufacturing 30
in
acquired
facility
of
the BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu
2)Meaning of Name ITC
stands
for
“Imperial
Tobacco
Company”
initially when it was incorporated for the 1st time in 1924. Later on the name has been changed to “Indian Tobacco Limited” in 1974. After that, in recognition
of
the
Company's
multi-business
portfolio encompassing a wide range of businesses -
Cigarettes
&
Tobacco,
Hotels,
Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's
name
were
removed
effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'. There is no specific meaning of ITC name is given on their website. But 31
what I think is that it is the name given to the company to signify the operation of the company. Since ITC started its business in tobacco industry, they have chosen the name to demonstrate their nature of business and what exactly what they want to perform
1)Evolution of Name ď ś
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. ITC had a humble beginning and in the initial days it used to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th birthday on August 24, 1926, ITC purchased the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years later company's headquarter building, 'Virginia House' came on that plot. Progressively the ownership of the company Indianised, and the name of the Company was changed to I.T.C. 32
Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses, the full stops in the Company's
name
were
removed
effective
September 18, 2001 and the Company was rechristened as 'ITC Limited'.
Product MiX
33
PRODUCT Cigarettes •
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands
includes
Insignia,
India
Kings,
Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. FMCG Foods •
ITC
made
its
entry
into
the
branded
&
packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June
2002
with
brand 34
launches
in
the
Confectionery,
Staples
and
Snack
Foods
segments. •
The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary
packaging
andsourcing
of
agricultural commodities. ITC's world famous restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a deep understanding of the Indian palate and the expertise required to translate this knowledge into
delightful
dining
experiences
for
the
consumer. ITC has stood for quality products for over 98 years to the Indian consumer and several of its brands are today internationally benchmarked for quality.
Lifestyle Retailing 35
•
ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills
Clublife
evening
accessories and
Essenza
wear, Di
Wills
fashion – an
exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels.
• Hotels •
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80 destinations, ITCWelcomgroup has set new standards of excellence in the hotel industry in
36
Accommodation, Guest Safety
Cuisine,
Environment
and
1)Chairman The
chairman
limited: ➢ Yogesh Chander Deveshwar
Executive Directors: 37
of
ITC
➢ Sahibzada Syed Habib –ur-Rehman ➢ Anup Singh ➢ Krishnamoorthy Vaidhyanath
38
COMPANY 3
AMUL
39
40
INTRODUCTION
Advertising plays a very pre dominant role for any Marketer. Goods no matter of how good quality, they may be are of no use if they are not brought to the notice of the consumer. Advertising can be classified on the basis of target audience towards whom the advertising is directed .there could be different set of target audience. These are: • Consumer(households) • Industries • Traders • Professionals • Institutions In our project we would be solely concentrating on the household sector , this sector dominates any other sector in terms of its goods and services. The complexity of human behavior is one major factor which makes a job of Marketer tough. The success of any advertising campaign depends on its effectiveness that is how effective it is in stimulating consumer to buy the product or at least give a thought to the product .there are various type of advertising media which can be used . But the choice of media is a very critical decision as a selection of wrong advertising media can lead tocolossal resources and it can even have an impact on goodwill of a company. The media has to be selected taking into consideration the 41
target audience and as a manager we also to take into consideration the Advertising Budget.In this project which has been assigned to us by Praveen Patil we have taken a company named Amul and then we have made an analysis of its advertising and sales promotion techniques, the communication mix employed by the company for its various product categories and how effective these strategies have been in positioning Amul as not only Amul but as Amul – The Taste of India . The project has offered us enormous scope to enhance our practical understanding of the purpose and significance of advertising and sales promotion as an effective tool of communication mix. Why we have selected Amul – The Taste of India? We wanted to take something different. All other companies are primarily companies whose object right from its inception has been profit maximization. We are not saying that is not out there to make profits but the point we are trying to highlight is that Amul started as a cooperative which took on the responsibility of rural development through providing source of income to millions of farmers. It is one such company which hasstrongly infused the message of corporate social responsibility right through it started functioning. It had spurred the white 42
revolution in the whole country. It has done so much pride to India by making it one of the world’s leading producer of milk. Many companies reach zenith but there are very few of them who adopt a social responsibility in their functioning. Amul is indeed different from all the other companies because it started its operations at the grass root level that is farmers. There cannot be a morenoble cause than this for a company to adopt .Taking this into consideration we decided that we will take Amul as our subject of study. We would like to thank Prof. Praveen Patil who has given us this golden opportunity of penning down our thoughts and views. What is Amul all about? BUSINESS needs ideas, not merely money. Ventures run on just money, but starved of ideas, would eventually fall prey to competition and perish. And, if ideas are available in abundance, business can overcome other handicaps, including its relative weaker money power, compared to that of its rivals. The success story of the Gujrat Cooperative Milk Marketing Federation (GCMMF) proves this point. Amul follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co43
operative, Amul has given multinationals a run for their money. • The Amul Pattern has established itself as a uniquely appropriate model for rural development. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand. • Amul’s is India’s largest diary producing company with over half the market leading other national companies such as Mother Diary and multinational food product companies such as Nestle India and Hindustan Lever Ltd. • Amul demonstrates how careful and consistent product stewardship combinedwith a deep and intimate understanding of the market leads to consistent growth and success. The company can process nearly 10 million litres of milk each day. • The company started as the Gujarat Cooperative Milk Federation in 1946,collecting just 250 litres of milk a day. The company was formed to give farmers their due and protect them from unscrupulous middlemen. Since then the company has come a long way . but one thing is still the same . that time also it was by and for the farmers and today also it’s the same . • In the mid 1950’s Amul looked for ways to utilize the surplus milk by manufacturing Butter, Milk,Cheese and other milk derived products. 44
• It is integrated into the fabric of Indian society ,from its roots in representing small farmers and struggler or the poor and impoverished in difficult circumstances. Key information related to Amul’s Products : Butter Launched in 1955, butter was one of the first milk products offered by Amul. It was also the first time Amul successfully challenged the hegemony of an established brand. Amul's earliest competitor, Polson had been the monopoly milk supplier to the Bombay Milk Scheme. Amul displaced Polson to emerge as the undisputed leader in the butter market... Cheese GCMMF launched processed cheese in 1959 followed by cheese powder in the early 1970s. In the 1980s the popularity of cheese increased Ghee, Skimmed milk powder and Baby food Amul launched ghee (clarified butter) and skimmed milk powder in 1955. Amul Ghee was an instant success...Milk and UHT Milk Amul was the market leader in the Gujarat whole milk market with a 90% market share in 2002.
45
Plants
First plant is at ANAND, which engaged in the manufacturing of milk, butter, ghee, milk powder, flavored milk and buttermilk.
Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul Ganthia and Amul lite.
46
BOARD MEMBERS Shri Ramsinh Prabhatsinh Chairman Parmar Shri Rajendrasinh DhirsinhViceParmar Chairman Shri Dhirubhai Zala Smt. Mansinh Chauhan
Amarsinh Kohyabhai
Director Director
Shri Maganbhai Gokalbhai Director Zala Shri Shivabhai Mahijibhai Director Parmar Shri Pravinsinh Solanki
Fulsinh
Director
Shri Chandubhai Director Madhubhai Parmar Shri Bhaijibhai Zala
Amarsinh
Director
Shri Bipinbhai Director Manishankar Joshi Smt. Sarayuben Director Bharatbhai Patel Shri Ranjitbhai Kantibhai Director Patel 47
SECTOR 2
48
49
AIRTEL BHARTI HISTORY OF COMPANY Bharti Airtel is one of India's leading private sector providers of telecommunications services based on an aggregate of 66,689,943 customers as on April 30, 2008, consisting of 64,370,434 GSM mobile and 2,319,509 Bharti Telemedia subscribers. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU’s) - mobile services, telemedia services (ATS) & enterprise services. The mobile services group provides GSM mobile services across India in 23 telecom circles, while the ATS business group provides broadband & telephone services in 94 cities. The enterprise services group has two sub-units - carriers (long distance services) and services to corporates. All these services are provided under the Airtel brand. Company shares are listed on The Stock Exchange, Mumbai (BSE) and The National Stock Exchange of India Limited (NSE).
50
The company has a strategic alliance with SingTel. The investment made by SingTel is one of the largest investments made in the world outside Singapore, in the company
51
The company’s mobile network equipment partners include Ericsson and Nokia. In the case of the broadband and telephone services and enterprise services (carriers), equipment suppliers include Siemens, Nortel, Corning, among others. The Company also has an information technology alliance with IBM for its group-wide information technology requirements and with Nortel for call center technology requirements. The call center operations for the mobile services have been outsourced to IBM Daksh, Hinduja TMT, Teletech & Mphasis
MILESTONE OF COMPANY 1
Mobile phone operator, Bharti Airtel, became the first Indian telecom company to serve 50 million customers last month, and is now the world’s tenth largest wireless carrier.
2
Bharti has doubled its user base in the past 14 months alone, and hopes to reach 100 million subscribers by 2010, according to company executives.
3
“Our next 50 million will largely come from rural India as our plan is to reach 5,200 census towns and over five lakh villages, covering 96 per cent of the Indian population,” said Bharti Airtel president and CEO, Manoj Kohli, at a news conference this week. 52
Vision BY 2010 AIRTEL WILL BE THE MOST ADMS IN INDIA *LOVED BY MORE CUSTOMERS. * TARGETED BY TOP TALENT. *BENCHMARKED BY MORE BUSINESS.
53
Airtel comes to you from Bharti Tele-Ventures Limited - a part of the biggest private integrated telecom conglomerate, Bharti Enterprises. A consortium of giants in the telecommunication business. In it's six years of pursuit of greater customer satisfaction, AirTel has redefined the business through marketing innovations, continuous technological up gradation of the network, introduction of new generation value added services and the highest standard of customer care. Bharti is the leading cellular service provider, with an all India footprint covering all 23 telecom circles of the country. It has over 12 million satisfied customers. Cellular telephony was introduced in India during the early 1990s. At that time, there were only two major private players, Bharti (Airtel) and Essar (Essar) and both these companies offered only post-paid services. Initially, the cellular services market registered limited growth.
54
Bharti’s Mission To be globally admired for telecom services that delight customers. We will meet global standards for telecom services that delight customers through: • Customer Service Focus • Empowered Employees • Cost Efficiency • Unified Messaging Solutions • Innovative products and services • Error- free service delivery
55
The composition of the Board is as under: ○ Sunil Bharti Mittal ○ Rajan Bharti Mittal ○ Akhil Gupta ○ Rakesh Bharti Mittal ○ Chua Sock Koong ○ N. Kumar ○ Kurt Hellstorm ○ Donald Cameron ○ Paul O’Sullivan ○ Professor V.S. Raju ○ Pulak Chandan Prasad ○ Bashir Abdullah Currimjee ○ Gavin Darby ○ Syeda Imam ○ Ajay Lal
56
○ York Chye Chang ○ Paul Donovan
57
â—‹
BSNL
INTRODUCTION Bharat Sanchar Nigam Limited (known as BSNL, India Communications Corporation Limited) is a public sector telecommunication company in India. Bharat Sanchar Nigam Ltd. formed in October, 2000, is World's 7th largest Telecommunications Company providing comprehensive range of telecom services in India: Wireline, CDMA mobile, GSM Mobile, Internet, Broadband, Carrier service, MPLS-VPN, VSAT, VoIP services, IN Services etc. Within a span of five years it has become one of the largest public sector unit in India. BSNL has installed Quality Telecom Network in the country and now focusing on improving it, expanding the network, introducing new telecom services with ICT applications in villages and wining 58
customer's confidence. Today, it has about 47.3 million line basic telephone capacity, 4 million WLL capacity, 20.1 Million GSM Capacity, more than 37382 fixed exchanges, 18000 BTS, 287 Satellite Stations, 480196 Rkm of OFC Cable, 63730 Rkm of Microwave Network connecting 602 Districts, 7330 cities/towns and 5.5 Lakhs villages. It is India's largest telecommunication company with 24% market share as on March 31, 2008. Its headquarters are at Bharat Sanchar Bhawan, Harish Chandra Mathur Lane, Janpath, New Delhi. It has the status of Mini Ratna, a status assigned to reputed public sector companies in India. BSNL is India's oldest and largest Communication Service Provider (CSP). Currently has a customer base of 73 million as of June 2008. It has footprints throughout India except for the metropolitan cities of Mumbai and New Delhi which are managed by MTNL.
THE BSNL SERVICES ➢
BSNL LANDLINE •
PHONE PLUS SERVICE
•
NEW TELEPHONE CONNECTION
•
PERMANENT CONNECTION
•
CONCESSION IN RENTALS
•
SHIFT OF TELEPHONE
•
TRANSFER OF TELEPHONE
•
TELEPHONE TARIFF 59
➢
➢
BSNL MOBILE •
POSTPAID
•
PREPAID
•
GPRS/WAP/MMS
•
TARIFF
•
SMS & BULK SMS
➢
BSNL WLL
➢
INTERNET SERVICES •
NETWORK
•
BROADBAND
•
TYPES OF ACCESS
•
WI-FI
•
BSNL WEB HOSTING
•
DIAL UP INTERNET
BSNL BROADBAND •
REGISTER ONLINE
•
TARIFF
•
CHECK USAGE
○ 60
Marketing strategies of BSNL Marketing vision of the BSNL has to be based on overall mission and vision of the organization. The mission of BSNL is i.
To provide world class State-of-art technology telecom services on demand at affordable price.
ii. To provide world class telecom develop country's economy.
infrastructure
to
And the vision of BSNL is i. To become the largest telecom Service Provider in Southeast Asia. In dynamic environment anything permanent is “CHANGE�. So we must revise and review so that focus is never lost. Marketing Objective
61
The ultimate objective of any marketing activity is to satisfy the customers and today even a step ahead i.e. ‘delighting’ the customers, for which customers are offered something beyond their expectations from the service or the product. The objective being to acquire and retain the customers, who should continually feel that they are getting more value of the money, they are departing with. Marketing
is
the
establishment,
maintenance
and
optimization
mutually
valuable
development, of
long-term
relationships
between
consumers and organisation. Social Responsibility We were the most trusted telecom brand in year 2003 & 2004. We have been given Golden Peacock award for Best Corporate Social responsibility. How can we leverage these distinctions? These achievements need to be highlighted through public relation exercise like press meet. This will help us in building our marketing image. In sales and distribution front though we have over 62
one-lakh retailers, 1000 franchisees, 3300 CSCs, 36000 exchanges why are we not visible like others? Why can’t we utilize all possible space? Can’t we leverage our franchisee and STD-PCO strengths? Can we make these outlets as our core strength? Why our recharge coupons, India Telephone Cards are in shortage when there is no capacity constraint? Does it imply that our planning for printing, inventory management, logistics, and supply chain and of course franchisee management is inefficient? Do we have targets for these just like DELs & CellOne? Why can’t we leverage this huge network for better customer care and improve collection efficiency? We must realize that with waiver of security deposits, no OYT schemes, no advance rentals, adjustment of landline security for CellOne, we don’t get fixed deposits to meet our funds requirements. Everything has to be met from Operating revenues. We need to improve collections, realize bills early, not on the last day of payment and reduce bad debts. We need to provide 24X7 culture in our organization, though we have been providing operation and maintenance on 24X7 basis in the past and we will 63
continue to provide in future too, but what about provisioning customer care and marketing on 24X7 basis
64
AIRCEL
65
66
AIRCEL
Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be the regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the world’s most attractive highgrowth, low-penetration markets Maxis in INDONESIA On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepon Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the company as a national operator. Th initial launch phase encompasses 1,300 BTS, providing both 2G and 3G services. NTS expects to have up to 480 employees by launch date and to increase significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21,2006. Currently, Aircel has operations in 9 of the 23-telecom circles of India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam, North East, Jammu and Kashmir, Himachal Pradesh and Bihar. Aircel launched its services in Bihar and Himachal Pradesh in December 2006 and also recently received the 67
licenses to operate in the remaining 14- telecom circles of India giving it the ability to become a pan-India player. Maxis’ expansion into Indonesia and India is another milestone in our aspiration to be the regional communications leader of choice. The acquisition of a 51% stake in PT Natrindo Telepon Seluler (NTS), Indonesia and a 74% equity interest in Aircel, India provides new growth opportunities for Maxis. These acquisitions give Maxis a strong foothold in two of the world’s most attractive highgrowth, low-penetration markets. This marks the beginning of the new world of Maxis – a world beyond voice, and beyond borders. MAP Maxis in Indonesia On 29th April 2005, Maxis acquired 51% of PT Natrindo Telepo Seluler. Maxis is currently in the middle of rolling out a Java wide network to establish the company as a national operator. The initial launch phase encompasses 1,300 BTS, providing both 2G and 3G services. NTS expects to have up to 480 employees by launch date and to increase significantly upon launching. Maxis in India Maxis completed the acquisition of a 74% stake in Aircel on March 21, 2006. Currently, Aircel has operations in 9 of the 23 telecom circles of India - Chennai, Tamil Nadu, West Bengal, Orissa, Assam,North East, Jammu and Kashmir, Himachal Pradesh and Bihar. Aircel launched its services in Bihar and Himachal Pradesh in December 2006 68
and also recently received the licenses to operate in the remaining 14 telecom circles of India giving it the ability to become a pan-India player. Aircel expects to aggressively grow its subscriber base in India and is developing a broad range of new propositions for its customers - from branding, to increased network coverage, to innovative product and service offerings, to refreshing customer experience. As of 31st December 2006, Aircel serves more than 4.5 million subscribers with a network comprising of almost 4,000 BTS. Aircel continues to be the market leader in Tamil Nadu and Chennai circle. Aircel’s network provides 2G and GPRS services, and is EDGE capable. Aircel is also currently in the process of conducting 3G Trials across different cities in India. In addition, Aircel is the first cellular operator in India to launch wireless Internet services using WiMAX technology. It aims to immediately extend its WiMax coverage to over 20 cities to serve enterprise broadband customers. Over the next few quarters, India is expected to add new subscribers at the rate of 5 to 6 million per month. India offers huge opportunities for Aircel given the current low mobile.
MISSION STATEMENT 69
We are conditionally committed to exceeding our customer’s expectations. we will provide network and services that are innovative and reliable, allowing our customers any time anywhere communications. we will attract, develop and retain an exceptional team of people. We are committed to enhancing the quality of real life in the community in which we operate. Wewill meet the financial expectation of our shareholders . OUR GOALS AND VALUES CUSTOMERS :our customers are our most valued assets. we will strive to exceed their expectations at all time by providing them with superior services that embody value, innovation, quality and care. PEOPLE : our people are our greatest resources. we will attract, train and retain the best.we will challenge them to develop their full potential in the context of our company goals. INTEGRITY : We will maintain and strive for the highest levels of personal and professional 70
integrity and honesty in all ours dealings. We will keep our promises. RESPECT : We will treat with respect & dignity all people we deal with. EXCELLENCE : We are committed to excellence in all what we do.there will be.
SECTOR 3 71
72
Executive Summary The service industry is one of the fastest growing sectors in India today. The upcoming sectors which are really showing the graph towards upwards are - Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Amongst the above-mentioned areas insurance is one sector, which took a lot of time in positioning itself. The insurance business of non-life companies was not much in problems but the major problem was with life insurance. Life Insurance Corporation of India had monopoly for more than 45 years, but the picture then was completely different. Previously people felt that “Insurance is only for classes not for masses� but now the picture is vice-versa. The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves 73
against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance
Company
started
by
Europeans
in
Calcutta was the first life insurance company on Indian
Soil.
All
the
insurance
companies
established during that period were brought up with the purpose of looking after the needs of European community and these companies were not insuring Indian
The
Insurance
Regulatory
Development Authority (IRDA) 74
and
The Insurance Act, 1938 had provided for setting up of the Controller of Insurance to act as a strong and powerful supervisory and regulatory authority for insurance. Post nationalization, the role of Controller of Insurance diminished considerably in significance since the Government owned this insurance companies.But the scenario changed with the private and foreign companies foraying in to the insurance sector. This necessitated the need for a strong, independent and autonomous Insurance Regulatory Authority was felt. As the enacting of legislation would have taken time, the then Government constituted through a Government resolution an Interim Insurance Regulatory Authority pending the enactment of a comprehensive legislation.natives The Insurance Regulatory and Development Authority Act, 1999 is an act to provide for the establishment of an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto and further to amend the Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and 75
the General insurance Business (Nationalization) Act, 1972 to end the monopoly of the Life Insurance Corporation of India (for life insurance business) and General Insurance Corporation and its subsidiaries (for general insurance business).
76
Kotak Mahindra life insurance COMPANY PROFILE
Stock broking businesses in the UK. Kotak Group was established in 1985.Kotak Mahindra Bank is the parent company of the group. Kotak Group entered into the life insurance business in 2001. Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. (76%) and Old Mutual plc. (24%) Old Mutual plc.Is a
world-Class
international
financial
services
company. It was established in South Africa before 160 years. OLD MUTUAL is the largest financial services business in South Africa, through its life insurance, asset management, banking and general insurance 77
operations. The company serves 4 million life insurance policyholders and employs over 13 000 South Africans in its local operations. In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management
skills
through
its
23
asset
management businesses. The company’s US Life business recorded sales of $4 billion at the end of 2002.Operations
in
the
United
Kingdom
are
focused on wealth management, through Gerrard as one of the leading private client The OLD MUTUAL Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups. Mission: “At Kotak Life Insurance, we aim to help customers take important
financial decisions at every stage
in life by offering them a wide range Of innovative 78
life insurance products, to make them financially independent.� MANAGEMENT MR. UDAY KOTAK is the CEO of the company. Other Top Management persons are as follows:Mr. Gaurang Shah (Managing Director) Mr. Gaurang Shah is the Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited.Mr. Gaurang Shah is a Chartered Accountant and a Cost and Works Accountant. He has also done his Company Secretary ship from the Institute of Company Secretaries of India. Mr. Gaurang Shah has been with the Kotak Group for the past eight years where he has held different positions of great responsibility and juggled multiple tasks effectively. His cumulative experience, primarily in financial services, stands at over 21 years, several of those in building the retail finance business. At 79
Kotak Life Insurance, Mr. Shah will focus on developing new lines of businesses and leveraging the company's existing competencies and network to steer Kotak Life Insurance on its ongoing growth path with even greater thrust. Mr. Shah has a commendable number
of
expertise in managing employees.Mr.
Shah
a large
has
been
previously associated with Kotak Mahindra Primus since its inception and has contributed towards its growth to become a Rs.2000 Cr plus business. Before coming to Kotak Life Insurance, Gaurang Shah was Group Head of Retail Assets for Kotak Mahindra
Bank.
The
Retail
Assets
include
commercial against shares. KOTAK GROUP IS INVOLVED IN THE FOLLOWING AREAS OF BUSINESS:Kotak Mahindra Prime Ltd. Kotak Mahindra Capital Company Ltd. 80
Kotak Securities
Old Mutual was established more than 150 years ago. Old mutual plc. is a world-class international financial service company. It owns the largest companies in the following areas in South Africa. They are: 1.Life Insurance Company 2.Asset Management Company 3.Bank 4.Non-life insurance company It has been developed into an International financial services group whose activities are focused on asset gathering and asset management. The Old Mutual Group offers a diverse range of financial services in three principal geographies: South Africa, the United States and the United Kingdom. The company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of 81
the elite FTSE 100 index. In the 2003 rankings of the World's 500 .
Conclusion
➢ All the insurance company must advertise more in the market because not all people know more about life Insurance policy. ➢ Most number of people wants Guaranteed Returns so company must focus on this for the customer investment. ➢ Make insurance policy which can buy any one so we can insured them through this type of life insurance policy.
82
BAJAJ ALLIANZ INSURANCE COMPANY
GENERAL
Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength. Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.
83
As on 31st March 2008, Bajaj Allianz General Insurance maintained its premier position in the industry by garnering a premium income of Rs. 2578 crore, achieving a growth of 43 % over the last year.Bajaj Allianz has made a profit before taxes of Rs. 167 crore and is the first company to cross the Rs.100 crores mark in profit after tax by generating Rs. 105 crores. In the first quarter of 2008-09, the company garnered a gross premium of Rs.733.53 crores against Rs.573.73 core last year for the same period registering a growth of 28%. Bajaj Allianz today has a countrywide network connected through the latest technology for quick communication and response in over 200 towns spread across the length and breadth of the country. From Surat to Siliguri and Jammu to Thiruvananthapuram, all the offices are interconnected with the Head Office at Pune.
VISION • To be the first choice insurer for customers • To be the preferred employer for staff in the insurance industry. • To be the number one insurer for creating shareholder value 84
MISSION As a responsible, customer focused market leader, we will strive to understand the insurance needs of the consumers and translate it into affordable products that deliver value for money. A Partnership Based on Synergy Bajaj Allianz General Insurance offers technical excellence in all areas of General and Health Insurance as well as Risk Management. This partnership successfully combines Bajaj Finserv's in-depth understanding of the local market and extensive distribution network with the global experience and technical expertise of the Allianz Group. As a registered Indian Insurance Company and a capital base of Rs. 110 crores, the company is fully licensed to underwrite all lines of general insurance business including health insurance
85
INDUSTRY AND PRODUCTS
Bajaj Allianz Life Insurance Company was the No1. Pvt. Sector Life Insurance co. for the FY 2005-06. With a pan India presence and over 900 + offices, Bajaj Allianz Life Insurance has already has a customer base of close to 2 million customers. Bajaj Allianz Life Insurance has developed insurance solutions that cater to every segment and age-income profiles. For companies it provides comprehensive 'Employee Benefit Solutions' (Group Term Life, EDLI, Gratuity, Super-annotation, Key man Insurance and more); for the individual Invest Gain (a unique life insurance plan where sustenance of income is combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child Gain (Children's plan), Risk Care (Pure Term), Lifetime Care (whole life), Term Care (term with return of premium), Saran Visitant (Retirement Plan), Protector (Mortgage term insurance plan), New Unit Gain Super, New Family Gain, New Unit Gain Plus, New Unit Gain, New Unit 86
Gain Premier, New Unit Gain Easy Pension Plus, New Unit Gain Easy Pension Plus – single premium. Currently Bajaj Allianz has a product portfolio of 30 products and more need-based products are in the pipeline. It has followed Bancassurance Model which is the term used to describe the sale of insurance products in a Bank. The word is a combination of "banque or bank" and "assurance" signifying that both banking and insurance are provided by the same corporate entity. The usage of the word picked up as banks and insurance companies merged and banks sought to provide insurance, especially in markets that have been liberalized recently. It is a controversial idea, and many feel it gives banks too great a control over the financial industry.
HR SYSTEMS BajaJ Allianz has: • A Management style which is participative and consensus based. • A Work culture which is Open, informal & collaborative. 87
• A Communication style, which is open and not bound by traditional hierarchies. • A Compensation & Benefits package which rewards and recognizes the best.
88
COMPANY
LIFE
3
Insurance Corporation of India (LIC)
The Life Insurance Corporation of India has been a national-builder since its formation in1956. The performance of LIC has been exemplary and has been growing from strength be it customer base, agency network, branch office network, new business premium and the like. It has played a significant role in spreading life insurance widely across the country.True to objectives of nationalization, the LIC has invested the funds mobilized from policy holders for the benefit of the community at large. 89
The other subsidiary companies under LIC are:P Life Insurance Corporation (LIC) of India International – A joint venture offshore company promoted by LIC which commenced its operations in July, 1989 with the objective of offering policies denominated in US $ to NRIs residing in the Gulf.P LIC Nepal – Formed in 2001 in joint venture with Vishal Group of Industries, Nepal. P LIC Lanka – Formed in 2003 in joint venture with Bartleet Group of Companies, SriLanka P LIC Housing Finance – Established in 19th June, 1989 in Dubai with the objective of providing long term finance for construction of houses or apartments. P LIC Housing Finance Limited Care Homes – A wholly owned subsidiary of LIC Housing Finance which builds “Assisted Community Living Centers”for senior citizens. Business Crores}
performance
in
2007-2008
1. Total Income Rs 2,06,363 2. Total Premium Income Rs 1,49,706 90
{Rs.
In
3. Total Policy Payments Rs 57,623 4. Total Life Fund Rs 6’86’616 5. Total Assets Rs 8,03,820 The business performance for LIC in the last fiscal year (07-08) has been good compared to the fiscal year (06-07). There has been a significant growth in total assets and totalincome earned.Channels of DistributionIndividual Agent: The individual agent has been the bedrock and the lynchpin in the marketing of insurance, especially life insurance. The professional agent has been the strongest link between the life insurer and the customer. Span of Organization
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,7 zonal offices and the corporate office. LIC’s wide are network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some banks and service providers to offer on-line premium 91
collection facility in selected cities.LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line kiosks and IVRS, Info Centres have been commissioned at Mumbai,Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many othercities. With a vision of providing easy access to its policy holders, LIC has launched SATELLITE SAMPARK OFFICES. The Satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future
Investment In Govt. & Social Sector As per the prescribed investment pattern approved by IRDA, the controlled funds are invested as follows:Not less than 50% is invested in Govt. Securities or other approved Investments.Not less than 15% is 92
invested in infrastructural and social sector Investments.Not exceeding 35% in others to be governed by prudent exposure norms..
93
Products: They have in their basket more than 40 different plans catering to the differing needs of different segments of the society,covering a age group of 080 year-,basic insurance plans (whole life, endowment and money back), Term Assurance Plans, Pension Plans,Capital Market linked Plans, Health Plan etc.
New products launched in 2007-08
1.Jeevan Bharti 窶的 (Money exclusively for Women)
Back
Plan
2.Market Plus-I (Unit linked Pension Plan)
3.Money Plus-I (Unit linked Insurance plan) 4.Anmol Jeevan-I (Term Insurance Plan) 94
5.Child Career Plan & Child Future Plan (Children’s Plans)
95
FMCG SECTOR At the supermarkets Self-service stores and supermarkets are fast emerging in metros and large towns. To service modern retailing outlets in the metros, HUL has set up a full-scale sales organisation, exclusively for this
channel.
The
business
system
delivers
excellent customer service, while driving growth for the company and the store. At the same time, innovative
marketing
initiatives
are
taken
to
provide consumers with experience of our brands
96
at the store itself, through product tests and instore sampling. ď Ź
This is termed as Modern Trade. It has got different
distribution
network
and
work
differently. It is fast gaining pace as more and more people are turning to malls for shopping. Today shoppers don’t just want to buy their daily groceries but they also want a shopping experience. They want to spend time in air conditioned store, no more they are ready to sweat for spending money. These big box retailers provide them a platform where they can roam around, pick, compare and choose their products. These stores provide them a 97
whole new experience of shopping without shedding any drop of sweat. We
tried
to
analyze HUL’s distribution network in the light of 20 most significant variables that affect the distribution part
0f
channel
management for any organization in the business of
marketing & selling of
goods. 1. No of Consumers 2. Geographic Dispersion Of Consumers 3. Frequency of purchase 4. Tendency to postpone purchase
98
5. Level
of
Familiarity/Knowledge
(of
consumer) 6. Degree of brand loyalty 7. Purchased on Impulse 8. level of Involvement(LOI) 9. Purchased as a Basket of Goods 10. Speed & complexity of Decision making process 11. present of Expert influencer in the process 12. Element of crisis purchase exists 13. Element of risk aversion exists 14. Perish ability of the product
99
TELECOMMUNICATION The word telecommunication was adapted from the French word telecommunication. It is a compound of the Greek prefix tele-, meaning 'far off', and the Latin communicare, meaning 'to share'. Telecommunication is the transmission of signals over a distance for the purpose of communication. In modern times, this process almost always involves the sending of electromagnetic waves by electronic transmitters but in earlier years it may have involved the use of smoke signals, drums or semaphore. Today, telecommunication is widespread and devices that assist the process, such as the television, radio and telephone, are common in many parts of the world. There is also a vast array of networks that connect these devices, including computer networks, public telephone networks, radio networks and television networks. Computer communication across the Internet, such as e-mail
100
and instant messaging, is just one of many examples of telecommunication. The basic elements of a telecommunication system are: • a transmitter that takes information and converts it to a signal for transmission • a transmission medium over which the signal is transmitted • a receiver that receives and converts the signal back into usable information Often telecommunication systems are two-way and devices act as both a transmitter and receiver or transceiver. For example, a mobile phone is a transceiver. Telecommunication over a phone line is called point-to-point communication because it is between one transmitter and one receiver, telecommunication through radio broadcasts is called broadcast communication because it is between one powerful transmitter and numerous receivers. A collection of transmitters, receivers or transceivers that communicate with each other is known as a network. Digital networks may consist of one or more routers that route data to the correct user. An analogue network may consist of one or more switches that establish a connection between two or more users. For both types of 101
network, a repeater may be necessary to amplify or recreate the signal when it is being transmitted over long distances. This is to combat attenuation that can render the signal indistinguishable from noise. The shaping of a signal to convey information is known as modulation. Modulation is a key concept in telecommunications and is frequently used to impose the information of one signal on another. Modulation is used to represent a digital message as an analogue waveform. This is known as keying and several keying techniques exist — these include phase-shift keying, frequency-shift keying, amplitude-shift keying and minimum-shift keying. Bluetooth, for example, uses phase-shift keying for exchanges between devices.
102
Insurance Industry in India : The origin of life insurance in India can be traced back to 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English Widows. In those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance Society that started its business in 1870 was the first company to charge same premium for both Indian and non-Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during6 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business. 103
Insurance sector in India grew at a faster pace after independence. In 1956, Government of India brought together 245 Indian and foreign insurers and provident societies under one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5 crore. Before 1956, insurance was private with minimal government intervention. In 1956, life insurance was nationalized and a monopoly was created. In 1972, general insurance was nationalized as well. But, unlike life insurance, a different structure was created for the industry. India had the nineteenth largest insurance market in the world in 2003. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. Insurance in India has gone through two radical transformations. One holding company was formed with four subsidiaries. As a part of the general opening up of the economy after 1992, a Government appointed committee recommended that private companies should be allowed to operate. It took six years to implement the recommendation. Private sector was allowed into insurance business\in 2000. However, foreign ownership was restricted. No more than 26% of any company can be foreign-owned. 104
A totally regulation free regime ended in 1912 with the introduction of regulation of life insurance. A comprehensive regulatory scheme came into place in 1938. This was disabled through nationalization in what follows, we examine the insurance industry in India through different regulatory regimes. But, the Insurance Act of 1938 became relevant again in 2000 with deregulation. With a strong hint of sustained growth of the economy in the recent past, the Indian market is likely to grow substantially over the next few decades.7 The rest of the chapter is organized as follows. First, we study the evolution of insurance business before nationalization. This is important because the denationalized structure brought back to play important legal rules from 1938. Next we analyze the nationalized eraseparately for life and property casualty business as they were not nationalized simultaneously. Much of post-independence history of insurance in India was the history of nationalized insurance. In the following section, we examine the new legal structure introduced after the industry was denationalized in 2000. In the penultimate section, we examine the current state of play and projected future of the industry.
105
106
107
I learn many thing from this project • I know all about the company & sector • I know also what the company growth & profit • Company how to manage the customer relation management • What is the company mission & vision
108
Text books referred(1) Chandra,parsanna’project management (2) Itc year books (3) Kotak insurance year book Website/pages visitedwww.google.com www.scibd.com www.itc.com www.hul.com www.kotakmahindra life insurance.com www.bhartiairtel.com www.bsnl.net
109