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. Submitted By AMIT KUMAR Under guideline PROF. AMIT KULSHRESTH In Partial Fulfillments of the Requirement for the award of Indira School of Career Development Pune 2010-12
I hereby take the opportunity to express my gratitude towards those who have made great contribution in completion of this project work. I feel immense pleasure to thanks Mr. Nilesh K Vyavahare, regional head equity, Indiabulls Securities, Pune who very kindly helped me in providing necessary information and guidance from time to time.
I would specially thank Mr. Rietesh Raje Bhosale (Branch Manager) for being my project guide.
I would like to thank V.G.Nulkar (Director) of Indira School Career Development, for providing me with a wonderful opportunity to work with Indiabulls Securities ltd.,Pune. The success of any task lies in the effective input, but this cannot be obtained without proper guidance of the concern authorities and their co-operation. I would like to thank Prof. Amit kulshresth for guiding me throughout the project. I wish to acknowledge those many people whose feedback has enable me to satisfactorily complete my summer training.
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Acknowledgement Project Objective Executive Summary Company Profile Introduction Of The Market Framework For The Competitive Analysis Research And Methodology Of Project Work Findings In Project Limitation Of Research SWOT Analysis Limitation Recommendation Bibliography Annexure
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1. To study the working procedure of Indiabulls investment solution as a
2. To study the Indiabulls Securities Competitors weaknesses in relation to
3. To analyze the product& services of Indiabulls investment solution. 4. To learn the marketing techniques that are used to acquire a client, was the
Secondary objective of the summer training.
5. To study the working procedure of Indiabulls Securities as a other
Investment sector like mutual fund, insurance.
6. To analyze the customer reflection on investment sector. 7. To study on customer portfolio.
The objective of the study was to do the competitive analysis of DP service and broking service provided by INDIABULLS SECURITIES and its major competitors in Pune region on the basis of 7p s of service marketing. The study was conducted to measure the customer satisfaction level of Indiabulls Securities. Study was focuses on clients within Pune region. Indiabulls Securities provides many products and services but we focused our study on DP services and Broking services only. Outcome of the analysis shows that though INDIABULLS SECURITIES is new player In the market of pune region, that is why they are still behind in many more factors and they need to improve those factors. Some recommendations are given to improve. (Project study has been done with the help of primary and secondary data.)
About Company Mission
To create long term value by empowering individual investors through superior financial services supported by culture based on highest level of teamwork, efficiency and integrity.
To provide the most useful and ethical Investment Solutions - guided by value driven approach to growth, client service and employee development.
INDIABULLS is a financial services company which has emerged as a one-stop Investment solution provider. It was founded in 2004 by two visionary and hard working entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. The company is headquartered in New Delhi, and has its corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida. INDIABULLS is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 400 man years in the financial markets The Company is supported by more than 4500 Indiabullsians and has a team of over 900 business offices in 235 cities across India. With a customer base of over 200,000 the Indiabulls Group has an eye for the intricate financial needs of its clients and caters to both their short – term and long – term financial needs through a comprehensive bouquet of investment services. It has been founded with the aim of providing world class investing experience to the investing
community. These services range from offline & online trading in equity, commodities and currency derivatives to debt markets to corporate finance and portfolio management services. The company has a sizable presence in the distribution of 3rdparty financial products like mutual funds, insurance products and property broking. It also provides expert Advisory on Life Insurance, General Insurance, Mutual Funds and IPO’s. The distribution network is backed by in-house back office support to provide prompt and efficient customer service.
The Equity broking arm – INDIABULLS Securities Pvt. Ltd offers personalized premium services on the NSE, BSE & Derivatives market. The Commodity broking arm Indiabulls Commodities Pvt. Ltd offers services in Commodity trading on NCDEX and MCX. The INDIABULLS group also has a PCG division providing investments solutions for High Net worth Individuals. The Corporate Advisory Services arm – Indiabulls Capital Services (P) Ltd offers entire gamut of Investment Banking services to corporate. INDIABULLS can boast of some of the most respected names in the private equity space like Sequoia Capitals, Nexus India Capital and Subhkam Ventures as its shareholders.
ADDRESS: CORPORATE OFFICE
(A) Delhi Corporate office: Indiabulls Investment Solutions P 45/90 1st, 2nd, 3rd Floor, Connaught Place, NewDelhi-110001 PHONE NO.: 011 - 43529700 / 400 / 500 (B) Mumbai Corporate Office:
Indiabulls Investment Solution Ground Floor, Jhawar House Building 285, Princess Street, Mumbai-400002 PHONE NO.: 022-66181200 / 100
ADDRESS: REGIONAL OFFICE
Kolkata regional office: Indiabulls Investment Solution 56 Hemant Basu Sarani, Stephen House, 4th Floor, Opp-B.B.D Bagh Bus Stand, Kolkata-70000 PHONE NO.: 033-4005437/424
33 Mr.Gajendra Nagpal Founder &CEO Mr. Ram M Gupta Co-Founder & President Mr.Y.P. Narang Head - Fixed Income Group Mr. Sandeep Arora Chief Operating Officer Mr. Vikas Mallan Chief F i n a n c i a l Officer, Head ± Distribution Mr. Subhash Nagpal Director -Strategic Planning & Distribution Ms.Deepa Mohamed Head -HR &Training Ms. Anjali Mukhija Chief Compliance Officer
Mr. Vijay Chopra National Head (Business Alliances) Mr. Anurag Nayar Chief Technology Officer
WHY INDIABULLS SECURITIES?
Why customer would choose INDIABULLS SECURITIES as a preferred Service Provider?
➢ Well integrated front and back office, paper and electronic systems. A focused Client Relation Team to manage your needs & queries. A single point contact for your comfort .
➢ In-house capability to address all IT needs in terms of software development, maintenance, back office processing, database administration, network maintenance, backups and disaster recovery ➢ Multilevel security is maintained in software, applications and guard s to access to various data, client and internal reports ➢ Expertise in running processes utilizing digital signatures. ➢ Constant review and benchmarking of processes to ensure adherence to global best practices ➢ Insurance cover with international re-insurance ➢ Full Confidentiality of business operations
VALUES OF INDIABULLS SECURITIES
➢ Safety & Efficiency of Operations is a hallmark of INDIABULLS SECURITIES
➢ Professionalism & Integrity ➢ Customer First ➢ Relationship building
➢ Commitment to Quality irrespective of asset size
PRODUCT AND SERVICES
EQUITY: Indiabulls Plus
Browser based trading terminal that can be accessed by a unique ID and password. This facility is available to all our online customers the moment they get registered with us.
Application based terminal for active traders. It provides better speed, greater analytical Features & priority access to Relationship Managers. Features:
Trading at NSE, BSE and Derivatives on single screen.
➢ Add any number of scrips in the Market Watch. ➢ Tick by tick live updation of Intraday chart. ➢ Greater exposure for trading on the margin available ➢ Common window for market watch and order execution. ➢ Key board driven short cuts for punching orders quickly. ➢ Real time updation of exposure and portfolio. ➢ Facility to customize any number of portfolios & watch lists. ➢ Facility to cancel all pending orders with a single click. ➢ Instant trade confirmations.
➢ Banking integration with ICICI Bank, HDFC Bank & Axis Bank,& Bank of
India,& Corporation Bank, & Karnataka Bank, & Oriental bank of Commerce, & South Indian Bank, & Vijaya Bank and Yes Bank.
➢ Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Indiabulls offers a unique feature of a single screen trading platform in M CX and NCDEX. Indiabulls offers both Offline & Online trading platforms. You can Walk in or place your orders through telephone at any of our branch locations. Online Commodity Internet trading Platform through UniFlex.
➢ Live Market Watch for commodity market (NCDEX, MCX) in one screen. ➢ Add any number of scrips in the Market Watch. ➢ Tick by tick live updation of Intraday chart. ➢ Greater exposure for trading on the margin available. ➢ Common window for market watch and order execution. ➢ Key board driven short cuts for punching orders quickly. ➢ Real time updation of exposure and portfolio.
➢ Facility to customize any number of portfolios &watch lists. ➢ Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Indiabulls Security Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work.
Indiabulls Depository Services offers dematerialization services as a participant in Central Depository Services Limited ( CDSL), through its Depository operations. The company believes inefficient and cost-effective And integrated service supports to its brokerage business. Indiabulls Securities Private Limited, as a depository participant, will offer depository accounts for individual investors as well as corporates which will enable them to transact in the dematerialized segment, without any hassles. Depository offers a safe, convenient way to hold securities as compared to holding securities in paper form. Our service provides an integrated single platform for all our clients ensuring a risk free, efficient and prompt depository process.
Facilities Offered by Indiabulls
De-ma teri a liz ation: You can submit your physical shares at the Indiabulls branch forDematerialization into electronic form.
Re -ma teri alization:
You can also request for Re-materialization which enables you to convert the dematerialized shares into physical form.
Tr an s f er :
Inter and intra depository services are available through which you can transfer shares.
You can apply for IPO using your demat account details and on allotment the securities are transferred d irectly to your demat account.
Corporate Ac tio ns:
While holding your stock in demat account, in case you are eligible for any bonus and rights issues the allotment would be transferred to your demat account.
Ea s i :
You can view your demat account over the Internet and avail a host of services. This facility empowers our clients to view, download, print updated holdings with respective valuations.
Estock Lo gin P ro c ess :Enter your client id a s your Demat account number. The password would be your bank account number linked with your Demat account. Please change the password as soon as you login. This is in your own interest and security. BACK OFFICE Indiabulls through its online back-office aims to increase the Transparency and provides you the link to view the details of Your account online anytime and anywhere. Here you have the advantage of viewing the following reports online:
Sauda Details Financial Ledger
Net position f or theday Net position Detail( for the complete financial year)
WHAT IS INVESTMENT?
In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In g eneral terms, investment means the use of money in the hope of making more money.
In business, the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business.
WHO IS THE INVESTOR?
An individual who commits money to investment products with the expectation offinancial return. Generally, the Primary concern of an investor is to minimize risk while maximizing return, as opposed to a speculator, who is willing to accept a higher level of risk in the hopes of collecting higher-than-average profits.
WHAT IS INVESTMENT MARKET?
The place where the customers are able to invest their money through a third party in various type of sector like stock mutual fund, bond etc. with a willing of a return of a g ood profit. It obviously may be a loss of return.
TYPES OF INVESTMENT
• • • • • • • • • •
Equity Mutual fund Insurance Commodity Property Depository IPO Real estate Fixed income Bond
Equities are a type of security that represents the ownership in a company.
Equities are traded (bought and sold) in stock markets. Alternatively, they can be
purchased via the Initial Public Offering (IPO) route, i.e. directly from the company. Investing inequities is a good long-term investment option as the returns on equities over a long time horizon are generally higher than most other investment
avenues.However, along with the possibility of g reater returns comes greater risk.
A commodity is some good for which there demand is, but which is supplied without qualitative differentiation across a market. It is a product that is the same no matter who produces it, such as petroleum, note book paper, or milk, words, copper is copper. The price of copper is universal, and fluctuates daily based on global supply and demand. Stereos, on the other hand, h ave many levels of quality. And, the better a stereo is [perceived to be], the more it will cost. One of the characteristics o f a commodity good is that its price is determined as a function of its market as a whole. Well established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, ethanol, salt, sugar, coffee beans, soybeans, aluminum, rice, wheat, gold and silver. Commoditization occurs as a g oods or services market loses differentiation across its supply.
DEPOSITRY Investing in bank or post-office deposits is a very common way of securing surplus funds. These instruments are at the low end of the risk-return spectrum.
Basic Requirements for Share Trading / Investments
A Demat Account and a Trading account:
Demat is an abbreviation of dematerialization. Dematerialization is the process of converting physical certificates into electronic form which are maintained in an account with the Depository Participant. Depository: Depository is an organization responsible to maintain investor’s securities in the electronic form In India there are two such organizations viz. NSDL and CDSL. The depository is similar to a Bank with the exception that banks handle funds whereas a depository handles securities of the investors. For
availing the services offered by a depository an investor has to open an account with the depository through a Depository Participant.
The market intermediary through whom the depository services can be availed by the investors is called a Depository Participant (DP).Organizations involved in the business of providing financial services like banks, brokers, custodians and financial institutions, can work as DPs. These days almost all trades have to be settled in dematerialized form. Hence a Demat account is a must for dealing in shares.
DP will just give you an account to hold your shares. However, to buy or sell shares one needs a trading account. The Trading account may either be
an online trading account or an offline trading account. Trading account can be opened with any broker/ sub-broker. A broker is a member of the stock exchange, who buys and sells shares on his behalf and on behalf of his clients. One time fees is to be paid for this account, which may vary from broker to broker. Whenever, one buys or sells shares through such account, he needs to pay a small fee which is referred to as brokerage.
INTRODUCTION TO THE MARKET
The trading on stock exchange in India use to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fully automated screen based trading system(SBTS) where member can punch into the computer quantities of securities and the price in which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. SBTS electronically matches the orders on strict price/time priority and hence cut down on time, cost and risk of error, as well as on fraud resulting in improvement operational efficiency.
BASICS OF SHARE MARKET:The Economic Reforms in India have strengthened the fundamental of our Industries over a past few years. Investors’ faith in Indian Companies is obvious from the rising trend in our Markets. With the empowerment of SEBI, Market has become a much safer place. Online Treading & T + 2 settlement cycle have made investing and trading. The Economic Reforms in India have strengthened the fundamental of our Industries over a past few years. Investor’s faith in Indian Companies is obvious from the rising trend in our Markets. With the empowerment of SEBI, Market has become a much safer place. Online Trading & T + 2 Settlement cycle have made investing and trading much hassle-free. Today, one can buy and sell shares comfortably; sitting at home or office with just a few mouse clicks and all this takes just a few seconds.
What is Share?
A share is a small unit of the total equity capital of a company. Share-holders are the Owners of the company, since they are contributing towards the Equity Capital of that particular Company. And as such they are also eligible for sharing the profits of the Company, in the form of a Dividend. The share holders enjoy a voting right and their consent matters in all the key decisions of the Company. In short a Share can be described as a Document issued by the Company, which entitles the holder to be one of the owners of the company. A share can be purchased through Primary Market or Secondary Market. All the buy-sell transactions in the share are carried out through licensed members called brokers
What is Stock Market?
As per the Securities Contract (Regulation) Act, 1956 ‘Stock Exchange’ is defined as anybody of individuals (incorporated or not), constituted for the purpose o f assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock Market plays a vital role in facilitating the industries to raise resources (funds) for their business ventures through public issues. Stock Markets proficiently deploy the resources from those looking for better investment opportunities (investors) to those who need the same (industries). There are 23 Stock Exchanges in India, out of which 22 are region al exchanges, while one is National exchange. India's oldest and first stock exchange is Bombay Stock Exchange. It was established in the year 1875. NSE (National Stock Exchange) & BSE (Bombay Stock Exchange) are the p rime and foremost stock exchanges in India.
Mumbai (Bombay) Stock Exchange
Phiroze Jeejeebhoy Tower, 5th Floor, Dalal Street, Bombay 400 023 Tel.: 91-22-265-5861, 2265-5581 Fax 91-22-265-8121
National Stock Exchange of India Ltd.
Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E) Mumbai - 400 051. Tel No: (022) 26598100 - 8114 Fax No: (022) 26598120
Competition is the necessary evil. It is necessary for the health of the industry & spurs new product & service development. Competition being as important force needs to be feedback hence the need for a framework for competitor analysis, which is critical to the understanding of competitor s strength & weaknesses. Competition always induce firms to revise their product portfolio as also to revisit their product market to understand changing needs expectations & perceptions of a different market segment. It also motivates to make their product futures rich & versatile.
One of the major benefits of competition is market development. By enlarging the product mix depth of distribution & prices competition drives firms to look for opportunities in new market.
MOTIVATION TO REDUCE COST
Competition motivates firms to reexamine their cost structure & eliminate inefficiencies in the marketing system. Competition is the great leveler so far as product prices are concern this because most competitors creates an in equilibrium in the market through the price route. This is especially true a
product group where a demand is principally price sensitive.
Following are the various competitors of the India Infoline in the PUNE region.
➢ ICICI Direct.com ➢ Kotak securities ➢ Motilal oswal ➢ HDFC
➢ India Infoline.
➢ Karvy Securities. ➢ Share Khan.
➢ India Bulls.
➢ And other local agencies.
➢ India Infoline. ➢ Kotak Securities.
➢ Motilal Oswal. ➢ ICICI Direct.com
FRAMEWORK FOR THE COMPETITIVE ANALYSIS:ANALYSING THE COMPETITORS STRENGTH & WEAKNESS :Competition, being an important market force needs to be tracked, analyzed & preempted. Market leader always have a system to help them preempt any competitive moves. For this, it is not just important to know competitor by name, but also critical to understand it s major strength & weaknesses. A competitor s strength may be its marketing systems, aggressive sales force, and its relationship with major external environmental variables like government & financial institute or a financial resources base. For the effective competitive analysis only strength & weaknesses are not sufficient we need to consider other key factors like market share of the company & 7p s of service marketing i.e.
➢ Product ➢ Price ➢ Place ➢ Promotion ➢ Process ➢ Physical evidence ➢ People etc.
COMPETITIVE ANALYSIS:“YOU MAY BE GOOD, BUT IF YOUR COMPETITORS ARE BETTER THEN YOU NEED TO CHANGE”
STRENGTH & WEAKNESSES OF INDIABULLS SECURITIES:Strength:Services:As products of Indiabulls is an extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized
research reports with almost 80%efficiency etc give Indiabulls an edge over its competitor’s .Indiabulls provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.
Products:Company’s product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loop holes of all the products offered by the other competitors like low cost, user friendly online trading services etc
Branding:Though the company has efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceed from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in trader.
COMPETITION FROM BANKS
Most of the banks due to good branding have the faith of the customers of their Banking database. So they enjoy the liberty of huge database and customers find it More reliable to trade their rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of Their customers to saving accounts. This makes trading easier, and at the same time A trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.
INDIA INFOLINE:Strength:INDIA INFOLINE was incorporated under the companies act 1956 at the imitative of the government of India. INDIA INFOLINE is promoted by the all India financial and investment institutions and insurance companies, viz. IDBI, UTI, ICICI, IFCI, LIC, GIC and its subsidiaries. INDIA INFOLINE is the oldest DP service provider. Largest number o f DP A/C s operations carried by INDIA INFOLINE.
Price facter affects customer satisfaction many more times. There is no special marketing team in INDIA INFOLINE for Pune region. Number of unsatisfied customers is increasing day by day.
ANAND RATHI:Strength:Breadth of Services
In line with its client-centric philosophy, the firm offers to its clients the entire spectrum of financial services ranging from brokerage services in equities and commodities, distribution of mutual funds, IPOs and insurance products, real estate, investment banking, merger and acquisitions, corporate finance and corporate advisory. Clients deal with a relationship manager who leverages and brings together the product specialists from across the firm to create an optimum solution to the client needs.
AR brings together a highly professional core management team that comprises of individuals with extensive business as well as industry experience.
Our research expertise is at the core of the value proposition that we offer to our clients. Research teams across the firm continuously track various markets and products. The aim is however common - to go far deeper than others, to deliver incisive insights and ideas and be accountable for results.
The name of the organization ANANDRATHI indirectly indicates that it belongs to an individual. Small range o f product line.
MOTILAL OSWAL:Strength:The retail business unit provides equity investment solutions to more than 1,75,000 investors through over 1000 outlets spanning 375 cities and 24 states. These solutions are provided by a force of over 2000 employees and over 1000 Business Associates. The organization finds its strength in its team of young, talented and confident individuals. Qualified professionals carry out different functions under the able leadership of its promoters, Mr. Motilal Oswal and Mr. Raamdeo Agrawal. Stringent employee selection process, focus on continuous training And adoption of best management practices drive the quest to achieving their Core Purpose and Values. Motilal Oswal having strong fund management.
The name of the organization MOTILAL OSWAL indirectly indicates that it belongs to an individual.
Kotak Securities has 195 branches servicing more than 2,20,000 customers and a coverage of 231 Cities Largest distributor of IPO's Kotak securities having strong equity research and portfolio management.
Weakness:Kotak group is basically known for their banking services as their core business.
ICICI DIRECT.COM:Strength:The 3-in-1 account integrates your banking, investment and demat accounts. ICICIdirect.com comes from ICICI, the organization trusted by millions of Indians. More flexible than other service provider known for more efficient management.
Weakness:ICICI is basically known for their banking services as their core business perceptibly high charges.
PERCEPTIBLE ANALYSIS ON THE BASIS OF 7P s OF SERVICE MARKETING:Marketing mix is one of the most basic concepts in marketing, defined as the elements of the organization that can be used to satisfy or communicate with customer. The traditional marketing mix is composed of the four p’s i. e.
1. Product 2. Price 3. Place 4. Promotion
These are very essential to the successful marketing of services. Service are usually produced and consumed simultaneously customers are often present in the firms interact directly with the firm s personnel and are actually part of the service production process also, because services are intangible customers will often be looking for any tangible cue to help them understand the nature o f service experience. acknowledgement of the importance of these additional communication variables has led services marketers to adopt the concept of an expanded marketing mix for services includes,
5. People 6. Physical Evidence 7. Process.
PRODUCT:We are well aware of the fact that services product are found intangible nature. It includes physical goods features, quality level, accessories, packaging, warranties, product line and branding. Therefore now we have focused on the depository services (demat & broking). And all the competitors of INDIABULLS SECURITIES provides same products with the same product line so here no significant difference between provided services so there no need to compete in between INDIABULLS SECURITIES and other major competitors in this factor.
PRICE:This element of marketing mix is related to the decision influencing the fee structure includes, A/C opening charges, AMC, Transfer fee, Brokerage charged by service providing organization. Analysis on the basis of secondary data is as follows.
AMC 200 360 360 500 500
20 25 15 25
It is found that the a/c opening charges at INDIABULLS SECURITIES is very competitive, and its AMC is minimum in market as compared to others. While the opening charges of IIL is very high.AMC charges of IIL is high, as compare to other , but with very less ratio while Kotak has less AMC charges. So a/c opening and AMC charges of Indiabulls is very competitive in comparison to other players in market.
TRANFER FEE AND DEMAT CHART
Interpretation – By analyzing the above chart it finds that transfer fee & dematerialization Charges of Indiabulls Securities is very competitive an aggressive in comparison to others charges o f India Infoline & ICICI DIRECT .COM are slightly same. MOTILAL OSWAL and IIL charges same amount for the transfer fee & dematerialization. On the other hand we can see that KOTAK SECURITIES stands strong because they provide these services at free cost.
BROKERAGE SERVICE PROVIDER BROKERAGE
0.03 0.10 0.05 0.15 0.25
0.30 0.50 0.55 0.60 0.75
IIL KOTAK SECURITIES MOTILAL OSWAL ICICI DIRECT
Brokerage Charges Interpretation –
By analyzing the above schedule and bar graph we come to know that Indiabulls Securities charges for trading is lesser than its competitors in the market. It is also found that KOTAK SECURITIES also charges minimum amount for Trading after Indiabulls. On the other hand it is also found that ICICI DIRECT charges maximum price for trading. Though INDIABULLS SECURITIE is well in this factor they need to cut off their price to attract more customer.
PLACE:Another important element of marketing mix is place which focuses attention on the offering of services by the provider to the customer & the place of location for
the service generating organizations. In this factor the location is preferred at the point where we find some of the essential features such as easy and convenient accessibility, safety and protection, availability of the infrastructure facilities etc. We can’t neglect that these features make available to the branches. The location advantage which simplify the task of marketing effectively.
DISTRIBUTION ANALYSIS:In this damnation of the analysis we found that Indiabulls Securities have one service providing center in Pune, and it is located in commercial area i.e. 1. Prabhat Road, deccan And other competitors having following numbers of service providing centers in Pune, shown in following graph.
By analysis of the above data we found that as compare to competitors INDIABULLS SECURITIES has less no. of centers in PUNE i.e. only one. Due to this factor market penetration of Indiabulls Securities is very less. In near future Indiabulls is planning to expand their service area by opening two more branches in Pune. It is also found that Kotak & IIL has same no. of centers as compare to each other
PROMOTION:Sales do not occur automatically to be more specific in the business environment where we find the intensity of competition moving upward, it is not possible to go and remain at for the long time to come, unless we prepare the ground or set the stage for future expansion & evolve new ideas for creating favorable selling conditions. It is sales promotion which is backs up pre selling & stimulates the impulsing buying. It attracts the prospects & keeps moving the existing customers behind the product.
In the period of two month of summer project we found Indiabulls Securities’ promotional activities are as follows. Indiabulls Securities offers combo pack scheme i.e. DP account and Trading account, both in Rs. 1000/- only. A trading account holders get the facility of opening a saving account with UTI bank with the minimum balance of Rs. 500/- It also provides corporate account at competitively less charges
Maximum number of advertising hoardings found in PUNE region in well located areas. Attractive punch line Behind Every Successful Investor. Believe in advertising in local news paper and electronic media.
Kotak offers saving bank account of kotak Mahindra bank with Dp account. Using attractive punch line Think Investment, Think Kotak. Heavy advertising strategy in print and electronic media.
MOTILAL OSWAL:➢ Attractive punch line Solid Research, Solid Advice. ➢ Advertisement hoardings found in main commercial areas. ➢ Motilal Oswal publishes business review.
ICICI DIRECT.COM:➢ Offers bank account with trading and demat account. ➢ Offers a scheme of account opening at Rs.1/➢ Account holder gets insurance o f Rs. 100000/-.
By analyzing the above data we found that INDIABULLS SECURITIES has lagging behind comparing to their competitor in the essential element of promotion. Where ANAND RATHI & KOTAK SECUR ITIES believe in More Promotion More Sales. Though they entered recently in the market compared to INDIA INFOLINE they are well established in the market & competing toughly
because of their rational promotional.
PEOPLE:All human actors who plays the part in service delivery and thus influence the buyers perception manly the firms personnel the customer and the other customers in service environment. How these people are dressed their personal appearance & their attitudes & behavior all influence the customer s perception of the service. Indiabulls Securities hires quality people and they are trained the technical skill which are using in organization. On the other hand competitors provide the technical knowledge time to time and make them aware about up going competition. In addition to that damnation competitor has made the completion of formal dress code to their executive and employees, which indicates discipline to their duties. The environment in which the services are delivered and where the firm and customer interact and any tangible components that facilitate performance or communication of services. The physical evidence of services includes all the tangible representation of the service. Such as broachers, latter head, business card, report format and etc. INDIABULLS SECURITIES provides following thing to their customer Monthly fact sheet, ➢ Demat letter, ➢ Annual report, ➢ Demat kit. Etc.
And other competitor also provides the same kind of physical things. So it is not better to compete in between this dimension of service marketing mix.
PROCESS:What is process?
The actual procedure, mechanism and the flow of activities b y which the services delivered and operating systems. The actual delivery steps the customer experiences, or the operational flow of services will also provide customer with evidence or which to judge the service. By analyzing the process model of INDIABULLS SECURITIES and it competitors we analyze following.
➢ Process model dimensions. ➢ Time taken for account opening. ➢ Technology employed.
➢ Order processing. ➢ Settlement of claim
Time taken for account opening:Indiabulls Securities:It takes minimum 2 days to open an account and a week to get it activated.
India Infoline:It takes minimum 2 days to open an account and week to get it activated
Anand Rathi:This firm takes 1 to 2 days for activation. KOTAK and ICICI DIRECT.COM and MOTILAL OSWAL take nearly 3 days to open and get it activated.
ANALYSIS ON THE BASIS OF MARKET SHARE:The term market share means contribution of the organization in the total competitive market. This acquires the particular part of the market. Market share of any organization shows it stability in the competition it helps to create the prospects on the basis of present position. Large market share help s to
dominate the market which results awareness about the organization in the minds of people on the basis of present market share. It is convenient to decide their target regarding sells, advertising and marketing strategy.
MARKET SHARE OF INDIABULLS SECURITIES & THEIR COMPETITOR IN PUNE REGION (For DP services, on the basis of secondary data)
MARKET SHARE %
ICICI DIRECT OTHERS
The present scenario of the market share of DP services in PUNE region Indiabulls Securities is has acquired 5% market share within a short span of 3 years. The competitors are also competing toughly though the competitors entered in market of DP services in PUNE region recently. Near major part of market is captured by local agencies & other miner competitor.
RESEARCH AND METHODOLOGY OF PROJECT WORK
Research Methodology can be defined as:
1. "the analysis of the principles of methods, rules, and postulates employed a
2. "the systematic study of methods that are, can be, or have been applied
3. "a particular procedure or set of procedures."
DATA SOURCES: PRIMARY DATA
Primary data, Secondary data.
Primary data is data that is collected for the first time in the processing of the Analysis1. View point of General public of Pune region 2. Knowledge of team manager of Indiabulls investment solution 3. Knowledge of employees of Indiabulls investment solution
Under secondary sources, we collect information from internal and external sources. We made use of internet www.Indiabullsindia.in www.google.com And miscellaneous sources (such as brochures, pamphlets, library) under external Sources.
The population for the study is general public of a Pune area in during the survey period, extending from may 3, 2010 to July 3,2010.During the survey period, a total of 150 people were asked several questions. The people were given eight questions about interest in investment, preferable investment sector, future Plan for investment, period of investment etc. Each question have 4-5option. M any people choose 1 or more option of same question so first of all I count the answer of several question ,then I calculate the percentage of collected data. Then I was put the data in different type of chart to understand collected data easily. A sample questioner is attached at below. By analyzing the collected data I understood about the investment market. I was also understood about the view point of customer upon investment sector.
FINDINGS IN PROJECT
Q1. Do you invest? We ask this question from 150 people and we get following response
a) Yes b) No
: 110 respondent : 40 respondent
INTEREST IN INVESTMENT
a. Of all the people we surveyed 73% of people do investment in various types of investment field.
b. 23% of the people responded negatively i.e. they don’t do any kind of
investment because they don’t have any fund or they are not interested. c. From above finding we can say that most of the people are willing to invest because they want to secure their future.
Q2.In which sector do you invest?
We ask this question from 150 people, and we got mixed response from the public a) Equity b) Commodity c) Mutual fund d) Insurance e) Others : 65 respondents : 20 respondents : 50 respondents : 70 respondents : 25 respondents
a. From our survey we have found that in today’s market most of the people still prefer insurance sector for the purpose of security and tax savings. 63.63% people preferred investment in insurance sector. b. Equity sector is second most preferred sector for investment because it gives more profit in less time and scope of making money is vast in this sector that is why 59%of people like to invest in equity sector.
c. 45.45% people prefer mutual fund for investment purpose because it has less
risk than equity market. This market is more stable. It depends on NAV value but return is not so quick.
d. There is also some other sector like commodity, currency trading, ulip etc.
these are not as preferred as earlier sectors. That is why 18.18%people invest in commodity whereas 22.72%people invest in other sectors.
Q3. Which firm do you prefer for investment?
We asked this question for knowing that which brokering firm people are selecting for Investment purpose.
a) Indiabulls Securities
:10 :20 respondents :25 respondents :20 respondents :25 respondents :10 respondents
b) IIL c) Kotak Securities d) Motilal Oswal e) ICICI Direct f) others
Preferred brokering firm
a) 22.72% people prefer to invest in Kotak Securities and ICICI Direct
because these two firms offer bank account with trading and demat account. b) 18.18% people invest in IIL and Motilal Oswal because IIL offers combo pack of DEMAT and trading a/c at rs. 555 whereas Motilal oswal provides solid research and advice.
c) 9.09% people prefer Indiabulls Securities. No. of people choosing
Indiabulls Securities is very less because very less people know about this co.
d)9.09% of people trade with other brokering firms available in pune.
Q4. Which feature do you prefer for selecting the broking firm? We asked this question to know which features generally people prefer before selecting any brokering firm:
a) Past record of company b) Brokerage c) Goodwill of the company d) Service quality e) Others
: 70 respondents : 80 respondents : 60 respondents : 80 respondents : 50 respondents
SELECTION OF BROKERING FIRM
a) For 72.72% people brokerage and service quality offered by
companies are an important feature before selecting any company for trading because these features shows the status of co, in market. b) 63.63% of people look for the past record of the co. because they want to assure themselves about the co. past performances. And will make them choose the best firm with good fundamentals.
c) For 54.54% people goodwill of the firm matters more before
choosing any firm for stating business with them.
d) 45.45%of people look for other features like personal relation with
the share trade or healthy financial status of the firm.
Q5 what is your purpose for investment?
We asked this question to know the purpose or reason behind the investment a) Saving b) Short term gains c) Long term gains : 20 respondents : 50 respondents : 40 respondents
PURPOSE OF INVESTMENT
a) Out of all the people we surveyed 45.45%of people said that their main
purpose of investment is short terms gains because most of the investors are younger so they want to make money from investment quickly and use it for their other purposes. b) 36.36 %people said that they do their investment for long terms for earning more gains. c) Out of all people 18.18% people invest for the purpose of savings like insurance and FD’s. d) Companies provide different products to different customers according to their investment purpose.
Q6. How long have you been investing? We asked this question to know the how long he has been in investment activity
a) Less than 1 year b) 1-3 years c) 3-5 years d) More than 5
30 respondents 40 respondents 25 respondents 15 respondents
PERIOD OF INVESTMENT
a) Most of the people that is 36.36%people are investing from past 1 to 3 years because these people are of youger generation and they want to invest in market and earn some money. b) 27.27%of people are investing from past one year because with liberalization of market more and more opportunities of investment are comingup.
c) 22.72% of people are investing from past3 to 5 years these people have most of the knowledge about co.’s and product offered by the company. d) Only 13.63% of people investing from past 5 years because investment trend in market have picked up from past 1or 2 years.
Q7. How much do you invest annually? We asked this question to know the investment range of the customers. Rs. 0-50000 Rs.50000-100000 Rs.100000-500000 Rs. 500000 and above : 45 respondents : 40 respondents : 20 respondents : 5 respondents
a) From this question we want to know investment range of the customers 41%of the people invest between the range of o-50000. Because most of the people are beginner in market thtat’s why they start investment from low range. b) 36.36% of people are investing between the range of 50000-100000 because they have got some experience of 1 to 3yrs or more. c) 18.18% of people invest in the range of 100000-500000 so that they can make more money from investment. d) 5%of the all people we surveyed invest above 500000. These people are mainly businessman or they do have a decent salaried job.
Q8. How you invest your money? We asked this question to know the investment pattern of the clients i.e period of their investment.
a) Monthly b) Quarterly c) Half yearly d) Yearly
: 50 respondents : 30 respondents : 20 respondents : 10 respondents
PERIOD OF INVESTMENT
a) 45.45% of people are investing monthly because it’s easy for them to pay
monthly installments. They prefer to invest their money monthly. b) 27.27% of people invest quarterly because some type of investment need them to pay quarterly. c) From all the people we surveyed 18.18 %people like to invest half yearly to get rid of the tension of investing monthly they invest twice a year remains tension free. d) .1% of people want to invest annually because either they have huge money or they want to get rid of tension of paying money monthly.
LIMITATION OF RESEARCH
Time duration of project work was short, and this was biggest limitation of my project work. Therefore this report may not be authentic. But still I tried my best to cover each sector
. SAMPLE SIZE:
My sample size was 150 among which 40 respondent were not investing anywhere. And some respondents gave multiple answers.
Since I did not get any reimbursements for the expenses spent by me for this research work so it was not possible for me to conduct the extended field work.
Information is presented from customer’s opinion only.
A SWOT analysis focuses on the internal and external environments, examining strength and weaknesses in the internal environment and opportunities and threats in the external environment.
As products of Indiabulls is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customizer search reports with almost 80%efficiency etc give Indiabulls an edge over its competitors. Indiabulls provides other support services that make retail investors more confident and assured with their trading. SMS alerts(allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.
We have a growing network of 150 branches and more than 300 business partners
spread across 180 cities in India .OUR target is to have 350 branches and 1000 business partners in 300 cities of India and more than 7 International offices by the end of 2006. Unlike a traditional broking firm, Indiabulls group work on the philosophy of partnering for wealth creation.
Company’s product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products coverall the loop holes of all the products offered by the other competitors like low cost, user friendly online trading services etc.
Though the company has an efficient product but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also plays a major role in imbibing confidence in traders.
COMPETITION FROM BANKS
Most of the banks due to good b r anding have the faith of the customers of their Banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage o f linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.
The external environment analysis may reveal certain new opportunities for profit and growth.
After the NSE brought the screen based trading system stock markets are now more secured which h a s attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Indiabulls is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Indiabulls has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time.
In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same paces the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. The traditional business model is highly dependent on a large network of Sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers
UNFULFILLED NEEDS OF THE CUSTOMERS
With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets.Indiabulls has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, Indiabulls hopes to fully utilize and capitalize on this platform. This original idea b y Indiabulls itself was born out of the consumer’s need for a more transparent, easy to understand and convenient option of investing in stock.
The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which are being shown by increasing volumes, transactions and indices.
A lot of new competitors are trying to enter the market in this bullish run to taste The flavor of this cherry. This is creating a lot of competition f o r large players Like Indiabulls and it is creating little confusion in the minds of customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like ICICI, kotak Securities,HDFC,5paisa etc are posing a lot of threats to the company, Religare
TECHNOLOGY BASED BUSINESS
Online trading is totally based on the technology which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier 'of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the ‘Go/No-go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but internet is not that safe. Though a lot of cyber laws are being made but not yet execute
➢ I am very lucky to get a chance of doing my project in Indiabulls Investment
➢ Public have a good response about the investment market. ➢ Public prefer the risk factor than quick profit. ➢ Investment sector has a g o o d market in future. ➢ Public preferred short term investment than long term. ➢ Public don’t w ant to save a very big amount or small amount from their
income, but they want to save medium amount from their income.
➢ Public preferred to invest either monthly or yearly basis than
➢ Major part of public paid tax for their investment ➢ Young generations are more interested to the equity market.
doing my project work by survey of market position following recommendations is required for Indiabulls to take top position in investment sector.
➢ Need different strategy for different sector of equity, mutual fund, insurance. ➢ For equity market they need to pull the young generation 0f 20-35yrs. Who
are ready to take risk as client? Also need to look after the old client properly.
➢ For mutual fund and insurance sector they need to convince the client who is
ready to invest for long term as well as shorter
➢ Indiabulls have to search those clients who are investing their money monthly
and yearly basis.
➢ It is more profitable for the company get those clients who are investing
10%-20% from their income because these types of people have a large number in market. So these types of people increase the no of client of the Company which is the profitable for the company.
➢ Indiabulls should build up a good relation with their customer. ➢ Indiabulls should give extra facilities to their client than other broking houses
BOOKS:1. Money outlook 2. Marketing management by Philip Kotler 3. Marketing management by Saxena. 4. Annual report of the company.
WEBSITE:1. 2. 3. 4. 5. 6.
www.anandrathi.com www.motilaloswal.com www.icicidirect.com www.Indiabullsindia.com www.kotaksecurities.com www.indiaInfoline.com
INDIABULLS SECURITIES LTD. CLIENT NAME: CLIENT ID:CONTACT NO:DATE:Date-
Q1. Do you invest?
Q2. In which sector do you invest? a) b) c) d) e) Equity Commodity Mutual fund Insurance Others
Q3. Which firm do you prefer for investment?
a) Indiabulls Securities
b) c) d) e) f)
IIL Kotak Securities Motilal Oswal ICICI Direct Others
Q4 Which feature do you prefer for selecting the broking firm?. a) b) c) d) e) Past record of company Brokerage Goodwill of the company Service quality Others
Q5. What is your purpose to invest in stock market? a) Saving b) Short term gains c) Long term gains
Q6. How long have you been to invest in the stock market? a) Less than 1 year b) 1-3 year c) 3-5 year d) More than 5 year
Q7. What is your investing money range for stock? a) Rs.0-50000 b) Rs.50000-100000 c) Rs.100000-500000 d) Rs500000 and above Q8. How you invest your money? a) Monthly b) Quarterly c) Half yearly d) Annually
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