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SELLING ANALYSIS OF DEMAT ACCOUNT (HNWI) OF EDELWEISS BROKING LIMITED
Presented by: INDRAJIT CHAKRABORTY, DEEP GHOSH & MANISHA KUNDU
SALES ANALYSIS OF DE-MAT ACCOUNT (HNWI) OF EDELWEISS BROKING LIMITED
REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT FOR POST GRADUATE PROGRAMME IN MANAGEMENT
INDRAJIT CHAKRABORTY (Reg No: EIILM/PGP/09-10/A034) DEEP GHOSH (Reg No: EIILM/PGP/09-10/A041) MANISHA KUNDU (Reg No: EIILM/PGP/09-10/A021)
UNDER THE GUIDANCE OF PROF. AVIJIT CHAKRABORTY (EIILM, KOLKATA) & MR. SATRAJIT DUTTA MOJUMDAR (HNI SALES MANAGER AT EDELWEISS BROKING LIMITED. 3A, UPPER WOOD STREET, 2ND FLOOR SAVITRI TOWER, KOLKATA700017)
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT 6, WATERLOO STREET, KOLKATA- 700069
A Task is not a single man’s effort, as there are various factors, situations and there are people combined together to form the background for the accomplishment of any task. The project report bears the imprint of some very important people both from my institution (EIILM, KOLKATA) and from the organisation (EDELWEISS BROKING LIMITED, KOLKATA), who are related to shape up this project. We are highly grateful and sincerely acknowledge valuable contributions imparted by these imminent people towards the completion of the project. We would like to thank sincerely my company guide Mr Satrajit Dutta Majumdar, HNI sales manager, Edelweiss, Kolkata, for his valuable guidance, inputs, support and briefing about the industry. We are grateful to the organizational members for their help and support. Most importantly, we deeply want to express our profound gratitude and thankfulness to Prof. Abhijit Chakraborty for having faith on our abilities. Knowledge gained from him will always inspire and encourage us to scale new heights in the future. I thank all the respondents who have given their precious time to answer my questionnaire during the survey for primary data collection.
Indrajit Chakraborty Deep Ghosh Manisha Kundu
Serial No. Content 1. Executive summary
Page No. 5
2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Introduction to the topic Introduction to Edelweiss Objective Methodology Data Projection Analysis Findings Recommendations Conclusion Limitation References Survey Questionnaire
7 9 12 13 14 15 47 48 49 49 50 51
Edelweiss Capital Limited is a Mumbai based company which started its operation in the year 1995. The mission statement of the company is “Ideas create, values protect”. It provides services like investment banking, institutional equities, private client broking, asset management, wealth management, investment advisory services, treasury, insurance broking, wholesale financing, and mutual funds. The major clients are corporations, institutional investors, and high net-worth individuals. This Project is a comprehensive study of selling strategy of Edelweiss and identifying its opportunities and challenges. It talks about studying the method of identifying customer’s investment needs and suggesting them suitable financial products, thus the sales of various financial products of the company and analyse the various distribution strategies exploited by the firm. The project also deals with customer relationship management; it gives a picture about how to build a good relationship with the clients who bring business for the company (existing, prospective and dormant clients). This project will explore the various distribution channels used by Edelweiss to sell its products. The project will focus on the strength areas of the company while at the same time tries to identify the weak areas so that it can be overcome. A comparative analysis of Edelweiss with other broking firms has also been done. The strategy followed by Edelweiss in relation with Sales and Distribution is unique and acts as a (USP) unique selling proposition in favour of the company. The strength of Edelweiss is its market image and well equipped research team, which it uses as a potential selling tool. As an intern, I have carried out research to track acceptability for different distribution channels. I went for the field work, talked to customers and tracked their investment pattern to help them suggest the kind of financial product they should use according to their risk appetite. Adding to this, I have been communicating with different types of customers through various media, including client visits, who fall under the sample space for this project. My job here is to advise them to take the suitable products offered by the company, depending on certain criteria, in order to make investing easier for them. I have also worked as a part of sales force of the company and sold De-mat account.
Having said that. asking for an appointment following which there will be client visit. I have been handling the profile of Customer Relationship Management. In the visit the main focus would be to convince the clients to do more business with the company and telling them about the benefits provided by the company.Some of the data has been collected from the customers regarding their views about Edelweiss. I hope my findings are useful for the company. Interaction with the clients helped to know the image of the company in the minds of the customers and it helped me to come up with suggestions to further improve the services of the company. a comparative study has carried out to see where Edelweiss stands in the race for offering Products and services. 6|Page . I have been talking to existing HNWIs clients of the company over the phone. I have concentrated on existing and dormant clients trying to know their opinion about their association with Edelweiss. So tracking the transformation is really interesting and worth appreciating.
manufacturers’ representatives. As a result the customer starts identifying and associating him with the product.e.) and opportunities and challenges faced by it. a good sales figure reflects high acceptability for the company through its products in the market and vice-versa. thus the sales of various financial products of the company and analyse the various distribution strategies exploited by the firm. Selecting a sales and distribution approach is a key element of a successful business model. distributors. Sales are important from every company’s point of view. A good distribution ensures easy availability of a product in the market and helps the company penetrate further into it. sales figure is a reflection of the company’s acceptability in the market. My job profile is interacting with the HNI clients and convincing them to open demat account with the organization. Another most important thing is the Distribution of its products in an effective way so that they reach the customers. at once encompasses both a company’s connection to its customers and a significant portion of its total costs. This involves calling the clients and client visits. Moreover it costs less to retain customers than to compete for new customers. limited set of options (i. dealers) and most firms in an 7|Page . fruitful relationships by developing long-term bonds. companies selected from a defined. The customer relationship is aimed at creating strong long lasting. prefers and accepts the company’s products and services over competitors’ offerings and recommend others to buy. In today’s context building relationships with customers is a part of the strategy of the company because customer retention is vital for an organization. Traditionally. This will help me get an insight into the various aspects of customer relationship. CRM is a part of the project. The project stresses on HNI clients and strategy adopted by the company to handle them. or more broadly the overall process of selling and delivering products to customers. Sales refer to volumes. The project basically stresses on studying the method of identifying customer’s investment needs and suggesting them suitable financial products. A company builds up a distribution strategy with an endeavour to reach out to maximum consumer pool in a minimum time frame and incurring least costs.INTRODUCTION TO THE TOPIC The project is about selling strategies of a financial service providing company (Edelweiss Securities Ltd. direct sales. This helps the company identify potential segments and cater to its requirements. The sales approach.
Therefore. 8|Page . creating potential instability in competitive positions for current leaders and areas of opportunity for others. the number of options has expanded greatly and the breadth of choices by competitors has proliferated in parallel.Industry made similar choices. Recently. many companies are forced to rethink their approaches to sales and distribution. Thus the project covers various areas and hope it is useful for the company. some of the traditional options no longer offer the same balance of services and costs and now cease to achieve the desired results. Competitors’ analysis has been done to explore the strategies adopted by the competitors and the areas for improvement. The project talks about the opportunities and challenges that are there before the company. To make matters more uncertain.
What is needed is light. all but invisible to the untrained eye. Asset Management.edelcap. 9|Page . BSE: 532922 and Bloomberg: EDEL. The Edelweiss Group is now a conglomerate of 46 entities including 39 Subsidiaries and 6 Associate companies (December ’09). Edelweiss exists to innovate. which are engaged in the business of providing diverse financial services. The company’s research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate. It operates through 65 offices in 21 cities in India. today has emerged as one of India’s leading integrated financial services conglomerates. institutional and HNI clients. The Edelweiss Group offers one of the largest ranges of products and services spanning varied asset classes and diversified consumer segments. Edelweiss Capital Limited (www.com). primarily linked to the capital markets. And Edelweiss is a powerhouse of financial innovation –illuminating both the solutions and the perils. Treasury and Financing. Brokerage Services. It is a listed company since December 2007 under the symbols NSE: EDELWEISS. leveraging a strong partnership culture and unique model of employee ownership.IN. Edelweiss Capital Limited now employs about 1200 employees.AN INTRODUCTION TO EDELWEISS The answers to most questions lurk in the shadows. As one of the fastest growing investment banking and financial services company in India. The Group’s product offerings are broadly divided into Investment Banking. incorporated on 21st November 1995.
2008 Ranked among the top ten players in Annual Bloomberg and Annual Thomson-Reuters Present Chairman and CEO. 7 crore in the previous year Edelweiss is amongst the largest institutional broking firm. BSE: 532922.60 companies within 6 industry categories. Banks and Insurance companies Listing in various stock exchanges NSE: EDELWEISS. Mutual Funds. FIs.IN Awarded as “Best Merchant Banker” by the Outlook Money NDTV Profit Awards.Mr. which will broaden and strengthen its entire institutional business Asset base of over INR 800 cr. which covers approximately 50 . Rashesh Shah 10 | P a g e . with a focus on large and medium cap stocks. In lending business It is empanelled with over 40 leading FIIs. The company’s Equities Broking division has now expanded to include 215 stocks in 19 sectors accounting for 70 percent of market capitalization Alternate Asset Management’s total asset value currently stands at $625 million Wholesale Financing division soared to Rs. Bloomberg: EDEL. 141 crore in FY08 from Rs.HIGHLIGHTS ESL has a strong equity research team. enjoying a healthy 5% plus market share in the institutional broking segment Edelweiss is also in the process of widening its product portfolio by penetrating into product specific and sector specific niches.
47 per cent of its revenue is from treasury and wholesale financing Research (POD) . covers over 200 stocks across 19 sectors that accounts for about 70% of the total market capitalization Offices. Professional Integrity.Rs 5.edelblue. and proprietary trading.com. model of employee ownership Culture. providing broking services to Institutional and corporate clients and high net worth individuals Market Capitalization.90 researchers.ESL focuses on the wholesale equity segment. Equity Base.building long term relationships with the clients and equipping the clients about the market knowledge so that they can address the day by day fast growing opportunities USP.com 11 | P a g e .SNAPSHOT Approach.edelcap.000 crore Website.over Rs 2. Execution orientation.www.The single minded focus on thought leadership and relentless pursuit of the ‘new’ and ‘different’ is it in products.stock broking. Culture. Research Driven Aim. employs over 1600 employees Major clients. research services.operates from 56 offices in 21 Indian cities.Client Focus. depository services. www.Entrepreneurial and result driven emphasizing confidentiality and integrity Operations.500 crore (Rs 55 billion). distribution of financial products. services or people.
12 | P a g e .How Edelweiss segments their customer and their preferences as per age.explore the growth potential segments. Study the satisfaction level of the customer.MAIN TEXT OBJECTIVE Customer segmentation. This project will help the company to understand HNI customer base in a better way so that suitable strategy can be adopted.Competitive analysis done among several broking firms. Competitive analysis. gender and annual income.In this project customer’s satisfaction level analysed as per our data. Identifying the growth areas of the company.For selling its very important to understand the customers perception. To understand the customers need and accordingly sell them suitable de-mat account.
METHODOLOGY Methodology is a strategy that guides a research in providing answers to research questions and for this research survey has been done. The next step involves the use of secondary data provided by company for selling de-mat account and analytical study. The tool for the survey is a specially designed questionnaire which highlights the demographic. client visits and meetings. A competitors’ analytical study with the help of primary as well as secondary data. This analysis will help in understanding the products and services available with the competitors present in the financial services sector. asset specific information. The analysis of the raw information is followed by tele calling. Collection of primary data in the process of evaluating the investment pattern. The visit will also provide valuable feedback which will further enhance the services of the organization. This involves carrying out a brief survey on the individuals having annual income of Rs 3 lakhs and above. The client meetings will provide us a platform to pitch the different de-mat account plans available in the company and also the client can put forward their issues related to services provided with much ease. 13 | P a g e . income. level of satisfaction and their suggestion.
14 | P a g e . The sample size is taken as 100.DATA PROJECTION The data is being collected through primary and secondary sources. Secondary data: Database given by company. Primary data: The will be collected through questionnaires provided by the company from people in Kolkata.
credible source of information and service 15 | P a g e .ANALYSIS OF SELLING STRATEGY 1. trust and goals are nurtured over time. Emphasis on knowledge of product 3. Edelweiss stresses on building good relationship with its clients as in case of financial firms the intangible nature of services makes Relationship strategy vital. The main purpose of a salesperson is not just to make sales but to create customers. Influenced by past performance of products and competition and present situations 4. SELLING STRATEGY OF EDELWEISS Relationship strategy The key to success in selling is the ability to establish working relationships with the customers in which mutual support. Seeks to be accepted as a reliable. Product centered selling and client centered selling Points 1. Product Centered Selling Stress on research and development of product Client Centered Selling Stress on research and development of relationships with clients Emphasis on knowledge of customers directed more to consideration of future Growth and developments in the client World seeks to raise client’s expectations of Personal excellence 2.
Implementation of the sales program.2. Then accordingly the sales program is implemented. Evaluation and control of the sales performance First a strategic sales program is made keeping in mind the company’s objectives. The concept of telemarketing is being adopted by the company. EDELWEISS SALES MANAGEMENT PROCESS Formulation of strategic sales program. The company adopts majorly Direct Selling Strategy to sell its products. Appointments are fixed over the phone which is followed by the client meeting. Following this there is an evaluation of the sales force performance. The whole process can be shown with the help of a flowchart:- 16 | P a g e .
Measurable. Attainable. thereby achieving the principle of profit maximization. and Time-bound. Sales goal should be SMART – Specific.Create direct selling process Indentify the customer Make appointment with customer Give suitable demo & pitch Ensure knowledge about product Close deal After sales promt service Ensure increase in customer value Sales organization always makes effort to increase sales. Realistic. thus contributing to the overall growth of the enterprise. S • Specific • Measurable • Attainable M A R T • Realistic • Time-bound 17 | P a g e .
Selling skills. METHODS ADOPTED BY SALES PERSON TO SELL THE PRODUCT Cashing in on Brand Name or the Company’s reputation. Though the company is new in Kolkata. Customer Benefit Approach. Interactive Approach. it is a well established brand in Mumbai.3.It talks about the skills the salesman should possess as follows:- Problem solving skill Negotiation skill Effective communication SELLING SKILLS Conflict managem ent Listening skills 18 | P a g e .the approach is interactive i. like online platform etc.they convey to customers the benefits they will get after getting associated with Edelweiss.e.Representatives approach the customers with the strength of Brand name that Edelweiss has. it is a two way communication and client queries are always welcomed.
This is done to ensure that the company has the best sales force Training Program. interacting with them and convincing them to maintain a good relationship with the company so that the company is in a profit.Possession of these skills is very important as conversion of a prospect customer to a company client very much depends on the selling skills and how the matter is put forth the client.the sales team has to appear in the evaluation conducted by the company to test their market and product knowledge. The project part that covers D-Mat account sales.Team leaders are given training regarding the product and market so that they can handle customer queries. Motivational Rewards. This is to motivate others to perform well and at the same time appreciate the hard work done by the winning team Continuous Evaluation. Thus the company follows an effective sales strategy (PUSH STRATEGY) which is customer focused.The sales team is given a fixed target which it needs to achieve within a month. THE MAJOR ATTRIBUTES OF THE SELLING STRATEGY IN THE COMPANY Sales target. 19 | P a g e . 4.The team who performs the best is given some rewards. involves calling the clients.
communicate. and brand name. customer demand. McCarthy classified these activities as marketing mix tools. options. such as the way it is packaged. Product: “Product” refers to a bundle of attributes.product. we might think of what we offer as a bundle of goods and services. Our pricing approach should reflect the appropriate positioning of our product in the market and result in a price that covers our cost per item and includes a profit margin . services. Businesses that create or assemble a product will have two options: Selling directly to consumers or selling to a vendor 20 | P a g e . Place: “Place” refers to the distribution channels used to get our product to your customers. price. Other product attributes include quality. MARKETING MIX (THE 4P’S) The marketing mix is to devise marketing activities and assemble fully marketing programs to create. place and promotion. Apart from the physical product itself.5. Price: “Price” is consumer’s perception of the present worth for the product or service to him/her. With this contact we can easily detect market changes that occur and adapt to them. Thus. What our product is will greatly influence how we distribute it. features.Our selection of a pricing strategy should be based on product. and deliver value for consumers. and the other products we will offer. the competitive environment. warranties. there are elements associated with our product that customers may be attracted to. These tools can be classified into four categories.
where. Password-protected areas allow users to go more intimately interact with us.Promotion: “Promotion” refers to the advertising and selling promotion. and a logo. and sales promotions. and why people should buy from us. • Television: Television allows access to regional or national audiences. The purpose of promotion is to get people to understand what our product is. • Word of Mouth: Word of mouth depends on satisfied customers (or dissatisfied customers) telling their acquaintances about the effectiveness of our product. public relations. and why they should want it. contests. personal selling. including newspapers. It is how we let people know what you’ve got for sale. or national levels. coupons. • Electronic: Company Web sites provide useful information to interested consumers and clients. Advertisements allow broad promotion of our products. Advertising methods to promote our product or service include the following. We can send letters. • Print: Direct mail and printed materials. flyers. 21 | P a g e . fact sheets. allow us to explain what. A key channel is advertising. but may be more expensive than other options. regional. Direct e-mail contact is possible if we have collected detailed customer information. what they can use it for. when. consumer and trade magazines. Mid-to-late week is generally the best time to run our radio ad. and brochures directly to new or old customers on local. • Radio: Radio advertisements are relatively inexpensive ways to inform potential local customers about our business. Promotion may involve advertising.
The use of colour in combination with texture and finishes is identified to be a simple but very effective factor of differentiation. marketing graphics and branding graphics. Two types of graphics can be used to establish identity. motivating. helping to convey particular messages to the customer and creating a special atmosphere affecting employees and customers likewise. 22 | P a g e . This recognizes the importance of attracting. People form an important part of the differentiation in a service organization which can create added value for the customer. training. PROMOTION) but when it comes to services marketing 3p’s are added to it:PEOPLE The importance of people within the marketing of services has led to great interest in internal marketing. PRICE. PROCESS The processes by which services are created and delivered to the customer is a major factor within the services marketing mix as services customers will often perceive the service delivery system as part of the service itself. PLACE.g. SERVICE MARKETING (3P’S) Coming to the Marketing Mix generally there are 4P’s (PRODUCT. and retaining quality employees by developing jobs to satisfy individual needs. the history and values of the respective institution. PHYSICAL EVIDENCE The exterior design can be utilized to communicate e.6.
RESEARCH METHODOLOGY The Research methodology carried out during this project has been divided into THREE main parts which is shown below: Research Methodology Market Segmentation Comparative Analysis Market Survey Customers’ segmentation Institutional segmentation on the basis of CRM Questionnaires Telephonic Analysis for prospective client Analysis for existing clients 23 | P a g e .
The senior citizens are more of a conservative nomenclature. The proportion of each one of them is shown below: 12% Young & Affluent (20-39) 25% 63% Middle Age( 40-55) Senior Citizen( 55 & above) Source: Customer database. 24 | P a g e .The project has been segregated into three parts: A) MARKET SEGMENTATION: the basic idea behind Market Segmentation is ATTRACTING. On the basis of the survey conducted. This relationship is illustrated below with the help of hypothetical scale. it has been deduced that the young and affluent section has more risk appetite and aggressive as compared to the middle aged and senior citizens. 2) Middle aged customers (40-55 yrs) 3) Senior Citizens. Edelweiss Securities Ltd. affluent segment. Customers at Edelweiss Securities Ltd can briefly be segmented into three basic categories: 1) Young. RETAINING AND GROWING CUSTOMERS.
Bank Deposits. 25 | P a g e . LOW AFFLUENCY: Customer Nomenclature: Conservative. Risk appetite: HIGH Investment Preference: Mutual funds. hypothetical scale can be drawn in order to retrieve the investment and risk taking capacity of customers so as to advice them their kind of investment tool. AGE AFFLUENCY LOW HIGH HIGH LOW LOW LOW AGE. HIGH AGE. equity. HIGH AFLUENCY Customer Nomenclature: Aggressive. Risk appetite: LOW Investment Preference: Bullion. insurance.Compressed Analysis of Customer’s Risk Appetite: INCOME-AGE RELATIONSHIP: Combining all the market survey analysis (expressed in fore coming pages).
like questionnaire. The investment preferences recommended to them includes a logical combination of aggressive as well as conservative customers. those customers should also be taken into consideration that features in between the two ends: Aggressive and Conservative. competitors visits. B) COMPARATIVE ANALYSIS: Collection of data is done is done through different sources. These customers are known to be moderate in their approach having a balanced Risk Appetite.“MODERATE CUSTOMERS”: Here. customers’ feedback. etc. customer database. Companies visited: 1) INDIABULLS SECURITIES LIMITED 2) KOTAK SECURITIES LIMITED 3) ICICIC DIRECT 4) HDFC SECURITIES 26 | P a g e .
Indiabulls. 27 | P a g e . so far has been good in meeting customers’ needs. b) Signature account: It is an online trading platform. d) NRI trading terminal: NRIs can also enjoy the online trading platform for trading in Indian capital market. e) IPO online: It is a specified terminal for applying to IPOs. ISL is in the business of providing securities broking and advisory services and is a corporate member of capital market. Various distribution channels of Indiabulls: a) Power Indiabulls: It is an online trading platform with an online terminal with live updates. f) Equity analysis: A platform for reviewing the comprehensive report and advisory services. g) Currency derivative: Offers currency trade in NSE.1) INDIABULLS SECURITIES LIMITED Indiabulls securities limited (ISL) is the pioneer in retail broking industry having a Pan India presence and providing service to a customer base of over half a million. c) Depository service: Another name for DEMAT account. Through its different types of distribution channel. wholesale debt market and derivative segment of NSE and of the capital market and derivative segment of BSE.
Low rate of brokerage is their competitive edge and a USP.CAN IMPROVE ON TO CRM STRATEGY TO RETAIN ITS EXISTING CUSTOMERS OPPORTUNITIES THREATS The major flaw in the system is delayed response to customers’ queries.SWOT ANALYSIS STRENGTHS WEAKNESSES FAST IMPLEMENTATION OF ORDERS REAL TIME QUOTS LOW RATES OF BROKERAGE (30 PAISE) EVERYDAY BUY/SELL CALLS * HAS A WEAK SECURITY SYSTEM * NUMBER OF SCRIPT ON ONE PAGE 25 * VERY SLOW RESPONSE TO CUSTOMER QUERIES AND COMPLAINTS * GETTING CASH BACKDIFFICULT LOSS OF MARKET SHARE DUE TO DELAY IN RESPONSE AND QUERIES * IN CURRENT MARKET TURMOIL. complaints and clients’ instruction. Receiving funds from Indiabulls is the worst part of their customer service. But they are really good on fast implementation of orders and real time quotes. 28 | P a g e .
The division also has a comprehensive research cell with sectoral analyst covering all the major areas of the Indian economy. The most important fact is that it has the highest brokerage as compared to other broking house in the same league.2. Owing to its banking parent. Edelweiss. here has an edge as it gives 50 scripts at a time. KOTAK SECURITIES Kotak securities. it has a competitive edge over other broking houses. Suggestive buy or sell calls to customers on daily basis. SWOT ANALYSIS STRENGTHS WEAKNESSES VERY FAST ORDER PROCESSING STRONG SECURITY SYSTEM CUSTOMER REAL TIME TRACKER OWNED BANKING ACCOUNT * # OF SCRIPT IS 25 * AVERAGE RESPONSE TO QUERIES AND RESPONSE * HIGH BROKERAGE COMPARED IN THE SAME LEAGUE WITH OWNED BANK ACCOUNTS OF HIGH CUSTOMERS. 29 | P a g e . The limitation that it faces is it doesn’t allow more than 25 scripts at a time. is the stock broking and distribution arm of Kotak Mahindra Group. a subsidy of Kotak Mahindra Bank. It caters to the needs of foreign and Indian institutional investors in Indian equities. IT CAN INCREASE ITS CUSTOMER BASE BY PITCHING TO ITS EXISTING CUSTOMERS. The website is more cumbersome as compared with others. Kotak is really good. BY GIVING OFFERS OPPURTUNITIES * LOSS OF CUSTOMERS DUE TO BROKERAGE THREATS on prospect of customer relationship.
The brokerage rate is a major concern as it charges a premium brokerage and is far higher than its nearest competitors. the subsidy of ICICI bank is the market leader in the field of broking industry with a market share of more than 31 percent. order execution is a weak link in the system. b) Wise investment account: Along with stock trading and IPOs trading in BSE and NSE. OPPORTUNITIES THREATS ICICI direct has got a good overall reputation apart from flaw in providing real time online ticker to the customers. It also provides with independent market expertise and support through a dedicated relationship manager. 30 | P a g e . Strong security system High brokerage WEAKNESSES Accsesing website at a peak time. CAN WIN ON TO MARKET SHARE NEGOTIATING ON BROKERAGE IMPROVEMENT IN CRM * LOSS OF CUSTOMER DUE TO BY BROKERAGE. no player in the market can take over. Still it has succeeded in maintaining the highest market share. All facility of trading in equities. margin trading. mutual funds and now post office savings are a dream for any investor. ICICI DIRECT ICICIC Direct. buy today sell tomorrow and call and trading on phone. SWOT ANALYSIS STRENGTHS Owned bank account. However. Fast order processing. c) Active traders account: Active traders account gives more personalized investment option to the investors. If this featured is cleared. It allows investors to use online and offline stock trading. This account allows cash trading. spot trading. wise investment account also provide option to invest in mutual funds and bonds online.3. Has three types of accounts: a) Share trading account: share trading account by ICICI direct is primarily for buying and selling of stocks in BSE and NSE.
b) Cash-n-Carry on both NSE and BSE (Delivery) c) Intraday trading on NSE and BSE. It checks the account balance before processing the order.com: a) Online trading for residents and NRIs. HDFC SECURITIES LIMITED HDFC securities is a wing of HDFC bank and promoted by JP Morgan with a market share of around 5 per cent. Response to customer queries is quick. Mutual Funds and Derivatives. giving access to Equities. 31 | P a g e . processing of orders (buy and sell) is a little slow as compared to other houses. Dematerialization account charges are high as compared to other broking firms. e) Online IPOs f) Telephone based trading for equities.4. Derivatives and IPOs. SWOT ANALISYS STRENGTHS WEAKNESSES * SLOW ORDER PROCESSING * NO DIALY BUY/SELL CALLS * LACK OF PROPER RESEARCH OWNED BANK ACCOUNT STRONG SECURITY SYSTEM REAL TIME TRACKER QUICK RESPONSE TO CUSTOMERS CAN INCREASE ON TO MARKET SHARE SLOW BY IMPROVING RESEARCH AND ADVRTISMENT STRATEGIES. OFFERINGS OFHDFCsec. IPOs. However. d) Trade in future and option in NSE. HDFC Securities provides customers a robust platform to trade in equities in NSE and BSE and derivatives in NSE. OPPORTUNITIES * LOSS OF CUSTOMERS DUE TO ORDER PROCESSING THREATS HDFC securities has an edge over other broking house as it has its own banking account within the house so fund transfer both ways and processing is rapid. Its security system owing to its banking background is flawless which give investors a sense of security.
EDELWEISS Vs COMPETITION Banking account contracted Owned Slow Very strong Owned quick Very strong Contracted Owned Very fast weak Fast Strong Order processing fast Security system Very strong Demat charges(rs) Buy/sell calls # of script on 1 page 1250/yes 40 750/No 25 0.81% 500/No 25 0.64% 300/yes 25 0.40paise Available NA Average 5.72% Brokerage (negotiable) 0.40paise Available NA Quick 4.93% 750/No 25 0.40Paise Real time tracker Available Post office saving NA Response to Quick customer queries Market share Data not available The data presented above is a compressed comparison of EDELWEISS and its major competitors 32 | P a g e .30Paise Available NA Very slow 13.75Paise Not available Yes Slow 25.
33 | P a g e . Though there are many firms that are offering very low brokerage to the clients. the benefit that it enjoys is that the customers can have their account I its bank so fund transfer is very easy. ICICI is the major competitor. Research of Edelweiss is best among all its competitors and no one can beat Edelweiss on that The only point that is not in the favour of Edelweiss is low Brand equity in Kolkata. Besides it has a very good brand image and people trust on that. Edelweiss is very competitive. Indiabulls is customer friendly and its terminal is considered very fast.INTERPRETATION From the above table following conclusions can be drawn:When it comes to brokerage. So Edelweiss needs to focus on these two competitors. The Brand image is not there in the minds of the people as the company is new in Kolkata. There are different plans depending on the trading volume of the clients Services offered by Edelweiss are premium and one of the best among all. the company has come up with its new prepaid plans in which the brokerage is as low as 10 paisa. This is the reason that despite charging a high brokerage it is very popular among masses. So the company needs to work on it and establish a good brand image as it matters a lot in this industry From the above table it can be seen that ICICI and Indiabulls are its biggest competitors. Edelweiss has online trading platform that has live streaming quotes and Express trade facility wherein the client can punch in the trade while looking at the values of the stocks.
com 34 | P a g e .Market share of different players in the market *number of terminals **market share in percentage Source: tradeji.
Age segmentation of customers. 12% Young & Affluent (20-39) 25% 63% Middle Age( 40-55) Senior Citizen( above 55) Conclusion: As per the age segmentation 63% of them is young and 25% is in middle age section. 35 | P a g e . So. it can be interpreted that young people are interested in share trading more.SALES QUESTIONNAIER ANALYSIS 1.
3. 7 lakhs and above 11% more than 5 lakhs 14% <3 lakhs 35% 3-5 lakhs 40% 36 | P a g e . Segmentation as per annual income.2. Female 17% Male 83% Conclusion: As per our survey male are interested in investment than females. Gender Segmentation of customers.
37 | P a g e . Through which of the channels do you usually buy a financial product? Channels Internet Broker 25% 75% Conclusion When it comes to channels of buying a financial product most of the people prefer to buy it from a broker as it is the most trusted source and they have a good market and product knowledge. This graph shows that broking business is a profitable one as it attracts the large volume of potential customers 75%. 25% Internet and Broker.Conclusion: People having annual income of 3-5 lakhs are more interested in investment in Kolkata. 4.
So it can be said that most of the people prefer risk-free return. Equity shares are the next best option according to the respondents. What is your preferable tool of investment? Bank Deposit Mutual Fund Real Estate Gold & Bullion Derivative Instrument Equity Shares 22% 36% 5% 25% 5% 7% Conclusion When it comes to investing one’s income 36% of the people prefer to be on the safer side and avoid risk by investing in the bank deposits. While a 22% of graph shows that equity shares are considered as a good option by the investors due to their high return. 38 | P a g e .5. The next option is mutual funds as they are comparatively risk free.
39 | P a g e .6. How did you come to know about Edelweiss? Other sources 8% reference group 10% Print & electronoc media 20% Internet 62% Conclusion The above responses shows that most of the people came to know about Edelweiss by other sources. This shows that the company needs to work a lot towards creating Brand Awareness in Kolkata. while many through reference group. Reference group is a good source of information about the company.
Are you aware of all the products offered by Edelweiss? Brand Awareness Yes 36% No 64% Conclusion 64% of the people are not aware of the products offered by the Edelweiss.7. 40 | P a g e . while a large chunk of respondents had never heard of Edelweiss. In this category few of the respondents knew about the equity share trading but were not aware of all the products.
8. 41 | P a g e . so it gives a clear picture that there is a huge untapped segment among which the product needs to be pitched. Have you used any Edelweiss financial product? Yes 22% No 78% Conclusion In response to the question 78% of the respondents said that they are not using any Edelweiss product at present.
Of the 10 of 22 people using Edelweiss products nearly 50% prefer equity shares.9. 42 | P a g e . Which Edelweiss product are you using now? 12 10 8 6 10 4 2 2 0 De-mat Mutual Fund Debentures Structured products 2 8 Conclusion From the response it can be seen that De-mat (equity shares) is the highest selling product of Edelweiss followed by mutual fund.
10 Motila l Oswal. 5 Kotak. 6 Indiabulls. 43 | P a g e . 8 ICICI Direct. 12 Sharekhan.10. 30 Edelweiss . The company needs to give attention to the Brand image building. 21 Religare. Sharekhan is preferred for its customer friendly approach and trading terminal. This is mainly because of its good Brand Image and linked bank account. Still Edelweiss stands in the competition and is preferred mainly because of its research facility. India Infoline. Best company according to the respondents. 4 Conclusion 30% of the respondents ranked ICICI Direct as the number one share trading company. 4 HDFC securities.
the reputation of the company. Edelweiss has good research so it has the capability of attracting customers.11. Of the above factors all are present in Edelweiss except a good Brand Image in Kolkata. Brokerage is the second most important factor. Brokerage 20% Advance R & D 10% Brand Image 35% Dealer support 13% Proximity with residence 10% Services 12% Conclusion When it comes to the choice of the company the factor that affects the decision to the largest extent is the Brand Image i. 44 | P a g e . which it needs to build. The best example is ICICI.e. Factors affecting the choice of a company.
45 | P a g e .12. Possible sources searched for financial product information. They trust on their experience with the company and act accordingly. word of Moutth 12% Television 10% Friends 22% Newspaper/Ma gazine 11% Internet/Websit e 45% Conclusion Most of the respondents 45% trust share broking websites when it comes to financial product information especially in stock market.
49 50 45 40 35 30 25 20 15 10 5 0 32 11 8 Extremly satisfied satisfied Neutral Dissatisfied Conclusion. The company needs to work on these customers and minimize their dissatisfaction. 46 | P a g e . Overall performance of Edelweiss.13.49% of the customers are satisfied and 8% dissatisfied.
gender and annual income. so they are preferring online de-mat service. from like icici direct is the best de-mat service provider in Kolkata. strong economic growth.People of Kolkata is not so much aware of the products served by edelweiss 47 | P a g e .FINDINGS Young people prefers Edelweiss de-mat service than other age groups.49% of the sample size are satisfied but it should be increased by different strategies. Next they targets their customers and according positioning themselves.Young people is very much accustomed with computer and internet. Satisfaction level if the customers. In front of any company the main challenge is the pitfalls of sensex and also development and offerings of other broking firms. Competitor analysis.Edelweiss segments their customer by age. and huge untapped retail customer.There are many opportunities before Edelweiss like increasing geographical penetration. Opportunities and challenges before the company. Awareness about Edelweiss products. Marketing strategy of Edelweiss in Kolkata.Due to this project we found out the competitor analysis.
The company should work on building Brand image in Kolkata as it plays a major role when it comes to taking decision about a company. Special training about products. 48 | P a g e .RECOMMENDATIONS More flexible advance brokerage plans.brokers so that they can tap a large chunk of the customers. Maintain a grievance cell for clients to know their needs better. There should be more number of brokers and sub. If the customer complaints are handled properly they will again do business with the company.
LIMITATIONS Some aspects might not be covered due to time constraint. Many customers don’t wish to listen to us because of their busy schedule. Incorrect data given by the respondents might not justify the purpose. In a rapidly changing industry.CONCLUSION From the analysis of the questionnaires and above findings it can be concluded that Edelweiss approach to sales and distribution strategies is right and its innovation in the distribution channel by tie-up with retail shops will help it a lot. analysis on one day or in one segment can change very quickly. When it comes to competitors ICICI is its biggest competitor and the company lags behind when it comes to Brand Image. The study is limited to only Kolkata. 49 | P a g e . The information by the customers regarding their investment may be partially correct because they do not wish to disclose their asset information. Reliance on the secondary data means that some of the information may be subject to verification. The CRM strategy of the company is different for Retail customers and HNWIs.
in www.com MARKETING MANAGEMENT BY PHILIP KOTLAR.edelweiss.nseindia. JHA Valuable insight provided by the company guide and the faculty guide 50 | P a g e .com www.edelcap.wikepedia. KOSHI.com www.REFERENCES www. KELLER.
a) < 3 lakhs. What are the possible sources that you search for financial product information before making any decision? a) Television/Radio c) Newspaper/Magazine e) Word of Mouth 4. Gender: a) Male b) Female 3. …………………………………………………………………………………………………………………………………………… …… 1. We appreciate your business and want to make sure we meet your expectations. What is your preferable tool of investment? a) Bank deposits c) Derivative instruments e) Gold and bullion b) Real Estate d) Mutual funds f) Equity shares b) Broker b) Internet/Website d) friends b) Middle age(39-55) 51 | P a g e . a) Young & affluent(25-39) c) Senior citizen(above 55). 2. Age segmentation. Through which one of the channels do you usually buy a financial product? a) Internet c) Direct from the company 5. Annual income. B) 3-5 lakh c) 5-7 lakh d) 7 lakh and above. As a Management Trainee currently working with Edelweiss Securities I want to thank you for giving us the opportunity to serve you. 3. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far.QUESTIONNAIRE Dear Customer.
6. Company preference for opening de-mat account. Which Edelweiss Products are you using now? a) Mutual Fund c) Debentures b) demat d) others. please specify 9. Have you used any Edelweiss Financial products? a) Yes b) no 8. How did you come to know about Edelweiss? a) Internet c) Reference group b) Print and electronic media d) By chance 6. ICICI direct Share khan Motilal Oswal Religare Edelweiss Indiabulls HDFC Securities India Infoline Kotak 52 | P a g e . Are you aware of all the products offered by Edelweiss? a) Yes b) No 7.
a) Extremely satisfied c) Neutral b) Satisfied d) less satisfied e) Dissatisfied Phone no: Email id: Name: 53 | P a g e . Brokerage Advance R & D Dealer Support Proximity of the firm with residence Services Brand image 11. Please rate the overall performance of Edelweiss on following scales.10. Factors affecting in choice of the companies.
54 | P a g e .
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