SERVICE MARKETING

ASSIGNMENT-2

EDELWEISS BROKING LIMITED

ANALYSIS

BY
KIRUBA T
19BSP1329
INDUSTRY PROFILE:
The brokerage industry is currently characterized by a large number of
companies (private or unorganized). In effect it is a fragmented industry with a
large number of participants. The industry thus has monopolistic competition,
i.e. a large number of firms selling a slightly differentiated product. Indian stock
broking industry is the oldest trading industry that has been around even before
the establishment of BSE in 1875. The Brokers & Exchanges Industry is
cyclical and comprised of two distinct types of businesses. Brokerages, also
known as financial services companies, strive to meet the investing needs of
their clients. Brokerages are fairly diversified. A big chunk of the top line
comes from filling buy and sells orders from clients. There are two ways in
which a broker can meet a client's trade request. The broker can act as an
intermediary, matching a customer's buy order with a third-party's sell order and
vice versa. In this capacity, the broker acts as an agent, receiving a
"Commission" (highlighted on the Value Line page). As well, the broker can act
as a principal, meeting a customer's order from its own inventory There are
several broking limited in India. The top Broking companies in India are,

o Zerodha
o Angel Broking
o IIFL/ India Infoline
o Motilal Oswal
o Sharekhan
o Upstox
o ICICI Direct
o Edelweiss
o HDFC Securities
o 5Paisa
There are several firms offering several products in that Trading, IPOs and
mutual funds are the top three products offered by 90% of firms offering
trading, 67% IPOs, and 53% offering mutual fund transaction.

INTRODUCTION TO THE COMPANY

Evolution:

The Edelweiss broking limited is the subsidiary of Edelweiss group.

Edelweiss Group was founded by Rashesh shah in Mumbai, India. It is one of
the India’s leading diversified financial services company. It provides a broad
range of financial products and services to diversified clients like corporations,
institutional and individuals. The business are Life Insurance, Housing Finance,
Mutual Fund and Retail Financial Markets including Stock Broking. Edelweiss
has investment advisory for Equity, Derivatives, Currencies, Mutual Funds,
Gold ETFs, IPOs. The company is registered with National Stock Exchange of
India, Bombay Stock Exchange and MCX Stock Exchange.

Aim:

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.

Product and service:

Edelweiss offers a large range of products and services spanning across
asset classes and consumer segments. Edelweiss broking limited providing the
services are

 Credit (including Retail Finance and Debt Capital Markets),

 Financial Markets (including Asset Management),
 Commodities and
 Life Insurance
  Mutual fund investment.

The Life Insurance, Retail Finance including Housing Finance, Mutual Fund
and Retail Broking businesses - both online and offline formats, have paved the
way for Edelweiss to cater to the large retail client segment.

Fig 3. Product category

BUSINESS OPERATIONS:
Business operations of Edelweiss are under three business groups
1. Credit business
2. Advisory Business
3. Insurance Business
Credit business:
Credit business is the largest contributing business. Based on that the
company PAT of Rs.1, 169 crore is the highest among all segments for the year
ended 31 March 2019.

Edelweiss Advisory Business:

The net revenue from advisory business was Rs.1310cr for FY19.The
advisory comprises of
 Wealth Management
  Asset Management
 Capital Market

Edelweiss Insurance Business:

 Edelweiss added insurance business in 2011 for expanding the retail
market.
 Life insurance is offered by edelweiss Tokio life insurance company ltd
with starting
capital of 500 crores.
There are basically two types of insurance exist. They are follows
 General Insurance
 Life Insurance

Annual Maintenance Charges For Demat Account

Clients have to pay an annual maintenance charge of Rs 560 to Edelweiss
Broking Ltd in order to smooth run of account once a year. If the client will not
pay this amount till the date Edelweiss charges 21% interest annually.

Advanced Brokerage Plan

Brokerage is the only form of revenue for any broking firm. Edelweiss
Broking ltd
charges its client 0.5% for delivery and 0.05% for intraday on volume as flat
charges. But in
this cut throat competition of brokerage where every firm offers less brokerage
than
competitors edelweiss has also offers less brokerage under some special
schemes. In
advanced brokerage plan client has to pay brokerage in advance to the
Edelweiss and in turn
Edelweiss charges them discounted brokerage. The amount paid by the client as
advanced
brokerage is inclusive of service tax.

SWOT ANALYSIS:

Fig 4. SWOT

Edelweiss broking limited has strength, weakness, opportunities and

threats which will help the company to improve their businesses.

STRENGTH:

 Strength is one of the most reputed research and advisory firm of India. It
helps the clients to get better idea to invest in the market.
 Offline presence with more than 4300 sub brokers across various cities of
india.so the client will get the exact benefits directly from the sub brokers. So
the client has trust on the company.
 CRISIL rated no.1 for the best ULIP plan – Wealth Plus.
 Edelweiss has good and reliable trading platform. So the investors can
easily access.

WEAKNESS:

 Weakness is AMC and Brokerage charges for trading is somewhat higher

than the some other companies
  Number of client is more but in that investing people in the market is very
less. So the company should give live examples and create more
awareness to clients to invest in the market.

OPPORTUNITY:

 Opportunity are digital marketing increasing the ads will attract more and
more customers.
 Only few of them are investing in the market. So the company can
increase the investors and get a huge market opportunity.

THREATS:

 Threat is there is competition in the market. Many companies like

Mothilal Oswal, HDFC, Angel broking etc., so the company should work
on better service and for less brokerage plans. It leads to get more
customer and leads to the profitability of the company.
 Many players in the market as the opportunity is more.

Selling strategy:

Fig 9. Selling Strategy

 First a strategic sales program is made keeping in mind the company’s
objectives. Then accordingly the sales program is implemented. Following this
there is an evaluation of the sales force performance. The company adopts
majorly Direct Selling Strategy to sell its products. The concept of
telemarketing is being adopted by the company. Appointments are fixed over
the phone which is followed by the client meeting. The whole process can be
shown with the help of a flowchart:-

Fig 10. Flowchart for sales program

Relationship strategy:

The key to success in selling is the ability to establish working

relationships with the customers in which mutual support, trust and goals are
nurtured over time. 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.
Methods adopted by sales person:

The methods that adopted by sales person to attract clients are,

Customer Benefit Approach- they convey to customers the benefits they will get
after getting associated with Edelweiss, like online platform etc.

Cashing in on Brand Name or the Company’s reputation- Representatives

approach the customers with the strength of Brand name that Edelweiss has.

Interactive Approach- the approach is interactive i.e. it is a two way

communication and client queries are always welcomed.