SALES AND DISTRIBUTION MANAGEMENT

GROUP ASSIGNMENT- I

Submitted to

Prof. Subrat Sahu

Submitted by

Vineet George (171164)

Aman Shah (171203)

Avadhesh Bagdi (171206)

Bhaumik Seta (171208)

Date of submission: 09/10/2018

Institute of management, NIRMA UNIVERSITY

Contents
ABOUT TATA AIG GENERAL INSURANCE COMPANY LIMITED ...................................................................... 3
ICICI PRUDENTIAL LIFE INSURANCE .............................................................................................................. 4
ABOUT THE PROJECT..................................................................................................................................... 5
INSIGHTS ....................................................................................................................................................... 8
LEARNINGS .................................................................................................................................................. 10
 ABOUT TATA AIG GENERAL INSURANCE COMPANY LIMITED
Tata AIG General Insurance Company Limited is an Indian general insurance company and
a joint venture between the Tata Group and American International Group (AIG). Tata Group
holds a 74 percent stake in the insurance venture with AIG holding the balance of 26 percent.

Company was started in India in the year 2001 and is still providing insurance to individuals as
well as corporate. The organization offers an array of general insurance covers which are well
thought out under commercial and consumer demands. The commercial sector
covers Energy, Marine, property and specialized financial covers. The consumer insurance
service offers a variety of general Insurance products such as insurance for Automobiles,
personal accident, casualty, home, health and travel.

The current CEO of the company is Neelesh Garg. The company is headquartered in Mumbai
and is currently employing more than 2000 employees. The corporation has its presence in more
than 160 cities across the country.
 ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by ICICI
Bank Limited and Prudential Corporation Holdings Limited. The company also started in the
same year as that of TATA AIG. The company is amongst the top players in the Indian insurance
market.

The company is headquartered in Mumbai and the current CEO of the company is N.S. Kannan.
The parent company of the same is ICICI Bank.

Market share of ICICI prudential life insurance

 ABOUT THE PROJECT
Two different sales persons were visited from the TATA AIG insurance and ICICI prudential life
insurance. The profiles of both the person were different and had different allotted job at the
company. The profiles were-

1. Rushabh Jajal
Deputy Manager
Strategic alliance and business tie ups of key partnership group
TATA AIG

2. Faique Sadiq
Area sales manager in broker and corporate alliances
ICICI Prudential

The distribution and sales part of the FMCG and insurance sector are very different but the basic
concepts used in the sales and distribution of both the sectors are quite synonymous. The FMCG
sector has both the parts of B2B and B2C wherein banking and insurance sector also has there
both perspectives. While FMCG has distributors and retailers for the purpose of the sale,
insurance sector has sales person who visits customer and banks in order to develop a long term
relationship
 • National Sales Manager
• Zonal Sales Manager
• Regional Sales Manager
• Area Sales Manager
• Channel Sales Manager

Sales Team Hierarchy of TATA AIG General Insurance Company Limited

For the sales of insurance, there are four main channels through which company mainly operates.
They are-

 Individual agents
 Banks
 Corporate agents
 Brokers
 Direct selling
 Others

Graph showing the channel wise distribution of TATA AIG

 INSIGHTS
Goals:

1. Increase in sales
2. Increase in the customer base

Field experience:

 They tie up with the brokers. Brokers are ideally given a commission of around 30-35%
of the sales of the policies. However they manage to pay the brokers commission as high
as 50% to get the deal in their favour creating a win-win situation for both the company
as well as the brokers themselves.
 Also they maintain relationship with the brokers and the agents to raise the sales of their
policies by promising added benefits and incentives. They are also rated on the basis of
KPIs (Key Performance Indicators).

Barriers in the sales process:

1. Lack of interest:

The leads are often not interested in the products as they are approached by many agents
through different channels and often the message is not conveyed due to clutter.

2. Lack of information to the prospects:

When the potential customers are approached according to the lead generated, they do not
have appropriate information about the product. So it serves as a barrier.
 3. Mis-selling:

The product is often misrepresented or wrongly explained to the potential customers to

achieve increased sales.
For e.g. For an insurance which would cover cancer, the customer is also promised that it
would cover the expenses due to eye disorders. This is a common practice in this
industry.

Risks involved with job security:

 As Sales in the only revenue generator for a company, Sales professionals are considered
to be the most valuable asset when compared to professionals in other verticals at the
time of recession.
 At the time of booming, the expectations and the targets are high for the sales
professionals which leads to high retrenchment rate.
 LEARNINGS
 The project was really insightful for the entire group and helped us to understand what
happens on the field especially when the kind of job we came across was selling
insurance.
 We came to know critical factors like customer relationship, customer retention, market
expansion and external factors affecting the sales process.
 While talking to the sales executives, we came to know about the various loopholes and
malpractices that are prevalent in the industry.
 We also came to know the barriers and risks associated with the sales and job and also
came to know their responsibilities.
 The pay structure of the sales executives was more of variable pay (more than 25%).