CASE STUDY ABOUT RAMBIR SHARMA

{ About the insurance…. }

INTRODUCTION

• This case study talks about the perception of both the customer ( Rambir Singh) and the seller ( Ratan Sharma) about the purchase of an insurance policy.

• It also tells us how various factors like demographics, psychographics etc affect the decision of the customer.

CHARACTERS

Rambir Singh Rambir Singh – (main character) the customer.

Ratan Sharma– Insurance agent ( seller)

Laxman Singh – Younger brotherSatish Singh – Younger Brother

Sapna Devi – Wife of Rambir

DEMOGRAPHICS

• Age : 44 years• Marital status : married• Children : 2• Family : joint family• Occupation: business• Status : middle class• Residence: Rampur village

PSYCHOGRAPHICS

• Very much concerned about his family members.

• Thinking about the future of his daughter.

• Has to pay the housing loan.• Takes the opinion of all the members

before taking any decision.• Feels the need of the insurance.

CASE - ACASE - A

Best Consumer Segment for Ratan Sharma

• Mr. Ratan has an Aim of Selling maximum policies so as to increase the presence of his company in Rampur

• There are 2 ways to do so: Sell lower number of high premium policies to

small number of rich people.Sell large number of small premium policies to

the lower people.

Continue..

• Mr. Ratan can convince the lower income people by making them realize about their future needs and savings.

• In place like Rampur, there is less number of Industries and Service class people. So, less number of Rich People.

Effect of Education

• As the insurance has huge clauses and criteria, it needs detailed explanation to convince the people.

• Educated people will understand it better and it would be easy to convince them and they would understand the need of such a commodity better.

• Very tough to explain to uneducated people.

Effect of Occupation

• The people who have steady income, that is not effected by changes in climate and other external factors, believe in depositing the money in FDs and PPF.

• In case of Rambir, agricultural products are affected by vagaries of business so, its difficult for him to pay insurance premium continuously.

Effect of market dynamics

• Market dynamics basically includes competitors, market size etc.

• Here, Rampur has only 1 insurance company right now, but 2 more companies are coming, so the current firm needs to change its marketing strategies.

• Now, company has to change its plans. (from monopolistic to competitive)

SEGMENTS CONCERN

• Different segments have different needs and wants, different capacity of purchasing power.

• Higher income group people tend to invest in high return investments rather than insurance.

• Whereas, the lower income group people tend to save money for future use and they have low risk taking capacity (conservative in nature).

COMMUNICATION

• Directly putting forward the need of insurance in current situation.

• Explaining that future is uncertain and the family should not suffer even though the person suffers.

• Inflation and other factors.

CASE - B

FLC STAGES OF RAMBIR SINGH

• Rambir is in the expanding stage ( middle age, married, with 2 children).

• The consumption pattern at this stage increases from that of the previous stage.

• As, the number of dependents increase, the need of insurance to secure them also increases.

The Impact Of FLC On Felt Needs

• He would tend to accumulate money as his retirement plans.

• Save for eventuality

• Marriage and education of children

Effect of joint family

• A decision is taken after consulting with family members as they influence the buying behavior.

• The situation should be win- win situation so as to avoid any kind of problems in the family.

• The responsibility is also a very important factor in joint family.

Factors in decision making

• The future expenses (like Inflation)• The level of standard of living.• The premium paying ability.• The cause of taking insurance.• The risk taking ability.• The return expected.

THANK YOU !!!!

Presented by:

Megha Jain

Nikhil KumarSwati Gupta