EDELWEISS BROKING LIMITED

SELLING ANALYSIS OF DE-

MAT ACCOUNT (HNWI) OF

EDELWEISS BROKING

LIMITED

Presented by: INDRAJIT CHAKRABORTY, DEEP GHOSH &

MANISHA KUNDU

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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

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ACKNOWLEDGEMENT

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

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CONTENTS

Serial No. Content Page No.

1. Executive summary 5

2. Introduction to the topic 7

3. Introduction to Edelweiss 9

4. Objective 12

5. Methodology 13

6. Data Projection 14

7. Analysis 15

8. Findings 47

9. Recommendations 48

10. Conclusion 49

11. Limitation 49

12. References 50

13. Survey Questionnaire 51

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EXECUTIVE SUMMERY

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.

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Some of the data has been collected from the customers regarding their views

about Edelweiss. Having said that, a comparative study has carried out to see

where Edelweiss stands in the race for offering Products and services. I have been

handling the profile of Customer Relationship Management. I have been talking

to existing HNWIs clients of the company over the phone, asking for an

appointment following which there will be client visit. 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. So tracking the

transformation is really interesting and worth appreciating. I have concentrated

on existing and dormant clients trying to know their opinion about their

association with Edelweiss. 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. I hope my findings

are useful for the company.

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INTRODUCTION TO THE TOPIC

The project is about selling strategies of a financial service providing company (Edelweiss Securities Ltd.) and opportunities and challenges faced by it. The project stresses on HNI clients and strategy adopted by the company to handle them. CRM is a part of the project. 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. The customer relationship is aimed at creating strong long lasting, fruitful relationships by developing long-term bonds. As a result the customer starts identifying and associating him with the product, prefers and accepts the company’s products and services over competitors’ offerings and recommend others to buy. Moreover it costs less to retain customers than to compete for new customers. My job profile is interacting with the HNI clients and convincing them to open demat account with the organization. This involves calling the clients and client visits. This will help me get an insight into the various aspects of customer relationship. The project basically stresses on 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. Sales are important from every company’s point of view. Another most important thing is the Distribution of its products in an effective way so that they reach the customers. Sales refer to volumes, sales figure is a reflection of the company’s acceptability in the market; a good sales figure reflects high acceptability for the company through its products in the market and vice-versa. 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. A good distribution ensures easy availability of a product in the market and helps the company penetrate further into it. This helps the company identify potential segments and cater to its requirements. Selecting a sales and distribution approach is a key element of a successful business model. The sales approach, or more broadly the overall process of selling and delivering products to customers, at once encompasses both a company’s connection to its customers and a significant portion of its total costs. Traditionally, companies selected from a defined, limited set of options (i.e. direct sales, manufacturers’ representatives, distributors, dealers) and most firms in an

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Industry made similar choices. Recently, the number of options has expanded greatly and the breadth of choices by competitors has proliferated in parallel, creating potential instability in competitive positions for current leaders and areas of opportunity for others. To make matters more uncertain, some of the traditional options no longer offer the same balance of services and costs and now cease to achieve the desired results. Therefore, many companies are forced to rethink their approaches to sales and distribution. The project talks about the opportunities and challenges that are there before the company. Competitors’ analysis has been done to explore the strategies adopted by the competitors and the areas for improvement. Thus the project covers various areas and hope it is useful for the company.

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AN INTRODUCTION TO EDELWEISS

The answers to most questions lurk in the shadows; all but invisible to the untrained eye. What is needed is light. And Edelweiss is a powerhouse of financial innovation –illuminating both the solutions and the perils. As one of the fastest growing investment banking and financial services company in India, Edelweiss exists to innovate. Edelweiss Capital Limited (www.edelcap.com), incorporated on 21st November 1995, today has emerged as one of India’s leading integrated financial services conglomerates. The Edelweiss Group offers one of the largest ranges of products and services spanning varied asset classes and diversified consumer segments. The Group’s product offerings are broadly divided into Investment Banking, Brokerage Services, Asset Management, Treasury and Financing. The company’s research driven approach and consistent ability to capitalize on emerging market trends has enabled it to foster strong relationships across corporate, institutional and HNI clients. Edelweiss Capital Limited now employs about 1200 employees, leveraging a strong partnership culture and unique model of employee ownership. It operates through 65 offices in 21 cities in India. It is a listed company since December 2007 under the symbols NSE: EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN. The Edelweiss Group is now a conglomerate of 46 entities including 39 Subsidiaries and 6 Associate companies (December ’09), which are engaged in the business of providing diverse financial services, primarily linked to the capital markets.

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HIGHLIGHTS

ESL has a strong equity research team, which covers approximately 50 - 60 companies within 6 industry categories, with a focus on large and medium cap stocks.

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. 141 crore in FY08 from Rs. 7

crore in the previous year Edelweiss is amongst the largest institutional broking firm, 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, which will broaden and strengthen its entire institutional business

Asset base of over INR 800 cr. In lending business

It is empanelled with over 40 leading FIIs, FIs, Mutual Funds, Banks and

Insurance companies Listing in various stock exchanges NSE: EDELWEISS, BSE: 532922,

Bloomberg: EDEL.IN Awarded as “Best Merchant Banker” by the Outlook Money NDTV Profit

Awards, 2008 Ranked among the top ten players in Annual Bloomberg and Annual

Thomson-Reuters Present Chairman and CEO- Mr. Rashesh Shah

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SNAPSHOT

Approach- Client Focus, Execution orientation, Culture, Professional Integrity, Research Driven 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 USP- The single minded focus on thought leadership and relentless pursuit of the ‘new’ and ‘different’ is it in products, services or people, model of employee ownership Culture- Entrepreneurial and result driven emphasizing confidentiality and integrity Operations- stock broking, research services, distribution of financial products, depository services, and proprietary trading, 47 per cent of its revenue is from treasury and wholesale financing Research (POD) - 90 researchers, covers over 200 stocks across 19 sectors that accounts for about 70% of the total market capitalization Offices- operates from 56 offices in 21 Indian cities, employs over 1600 employees Major clients- ESL focuses on the wholesale equity segment, providing broking services to Institutional and corporate clients and high net worth individuals Market Capitalization- Rs 5,500 crore (Rs 55 billion), Equity Base- over Rs 2,000 crore Website- www.edelcap.com, www.edelblue.com

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MAIN TEXT

OBJECTIVE Customer segmentation- How Edelweiss segments their customer and their preferences as per age, gender and annual income. To understand the customers need and accordingly sell them suitable de-mat account- For selling its very important to understand the customers perception. This project will help the company to understand HNI customer base in a better way so that suitable strategy can be adopted. Competitive analysis- Competitive analysis done among several broking firms. Identifying the growth areas of the company- explore the growth potential segments. Study the satisfaction level of the customer- In this project customer’s satisfaction level analysed as per our data.

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METHODOLOGY

Methodology is a strategy that guides a research in providing answers to research questions and for this research survey has been done.

Collection of primary data in the process of evaluating the investment pattern. This involves carrying out a brief survey on the individuals having annual income of Rs 3 lakhs and above. The tool for the survey is a specially designed questionnaire which highlights the demographic, income, asset specific information, level of satisfaction and their suggestion.

The next step involves the use of secondary data provided by

company for selling de-mat account and analytical study.

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.

The analysis of the raw information is followed by tele calling,

client visits and meetings. 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. The visit will also provide valuable feedback which will

further enhance the services of the organization.

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DATA PROJECTION

The data is being collected through primary and secondary sources. Primary data: The will be collected through questionnaires provided by the company from people in Kolkata. The sample size is taken as 100. Secondary data: Database given by company.

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ANALYSIS OF SELLING STRATEGY 1. 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, 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.

Product centered selling and client centered selling

Points Product Centered Selling Client Centered Selling

1. Stress on research and development of product

Stress on research and development of relationships with clients

2. Emphasis on knowledge of product

Emphasis on knowledge of customers

3. Influenced by past performance of products and competition and present situations

directed more to consideration of future Growth and developments in the client World

4. Seeks to be accepted as a reliable, credible source of information and service

seeks to raise client’s expectations of Personal excellence

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2. EDELWEISS SALES MANAGEMENT PROCESS

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:-

Formulation of strategic sales program.

Implementation of the sales program.

Evaluation and control of the sales performance

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Sales organization always makes effort to increase sales, thereby achieving the principle of profit maximization, thus contributing to the overall growth of the enterprise. Sales goal should be SMART – Specific, Measurable, Attainable, Realistic, and Time-bound.

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

S • Specific

M • Measurable

A • Attainable

R • Realistic

T • Time-bound

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3. METHODS ADOPTED BY SALES PERSON TO SELL THE PRODUCT

Cashing in on Brand Name or the Company’s reputation- Representatives approach the customers with the strength of Brand name that Edelweiss has. Though the company is new in Kolkata, it is a well established brand in Mumbai. Customer Benefit Approach- they convey to customers the benefits they will get after getting associated with Edelweiss, like online platform etc. Interactive Approach- the approach is interactive i.e. it is a two way communication and client queries are always welcomed. Selling skills- It talks about the skills the salesman should possess as follows:-

SELLING SKILLS

Problem solving

skill

Effective communication

Listening skills

Conflict managem

ent

Negotiation skill

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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 project part that covers D-Mat account sales, involves calling the clients,

interacting with them and convincing them to maintain a good relationship with

the company so that the company is in a profit.

4. THE MAJOR ATTRIBUTES OF THE SELLING STRATEGY

IN THE COMPANY

Sales target- The sales team is given a fixed target which it needs to achieve within a month.

Motivational Rewards- The team who performs the best is given some 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- the sales team has to appear in the evaluation conducted by the company to test their market and product knowledge. This is done to ensure that the company has the best sales force

Training Program- Team leaders are given training regarding the product and market so that they can handle customer queries.

Thus the company follows an effective sales strategy (PUSH STRATEGY) which is

customer focused.

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5. MARKETING MIX (THE 4P’S)

The marketing mix is to devise marketing activities and assemble fully marketing

programs to create, communicate, and deliver value for consumers. McCarthy

classified these activities as marketing mix tools. These tools can be classified

into four categories- product, price, place and promotion.

Product:

“Product” refers to a bundle of attributes. Apart from the physical product

itself, there are elements associated with our product that customers may be

attracted to, such as the way it is packaged. Other product attributes include

quality, features, options, services, warranties, and brand name. Thus, we might

think of what we offer as a bundle of goods and services.

Price:

“Price” is consumer’s perception of the present worth for the product or service to him/her. 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 .Our selection of a pricing strategy should be based on product, customer demand, the competitive environment, and the other products we will offer.

Place: “Place” refers to the distribution channels used to get our product to your customers. What our product is will greatly influence how we distribute it. With this contact we can easily detect market changes that occur and adapt to them. Businesses that create or assemble a product will have two options:

Selling directly to consumers or selling to a vendor

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Promotion: “Promotion” refers to the advertising and selling promotion. It is how we let people know what you’ve got for sale. The purpose of promotion is to get people to understand what our product is, what they can use it for, and why they should want it. Promotion may involve advertising, public relations, personal selling, and sales promotions. A key channel is advertising. Advertising methods to promote our product or service include the following. • Radio: Radio advertisements are relatively inexpensive ways to inform potential local customers about our business. Mid-to-late week is generally the best time to run our radio ad. • Television: Television allows access to regional or national audiences, but may be more expensive than other options. • Print: Direct mail and printed materials, including newspapers, consumer and trade magazines, flyers, and a logo, allow us to explain what, when, where, and why people should buy from us. We can send letters, fact sheets, contests, coupons, and brochures directly to new or old customers on local, regional, or national levels. • Electronic: Company Web sites provide useful information to interested consumers and clients. Password-protected areas allow users to go more intimately interact with us. Advertisements allow broad promotion of our products. Direct e-mail contact is possible if we have collected detailed customer information. • Word of Mouth: Word of mouth depends on satisfied customers (or dissatisfied customers) telling their acquaintances about the effectiveness of our product.

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6. SERVICE MARKETING (3P’S)

Coming to the Marketing Mix generally there are 4P’s (PRODUCT, PRICE, PLACE, 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. This recognizes the importance of attracting, motivating, training, and retaining quality employees by developing jobs to satisfy individual needs. People form an important part of the differentiation in a service organization which can create added value for the customer. 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. PHYSICAL EVIDENCE The exterior design can be utilized to communicate e.g. the history and values of the respective institution. The use of colour in combination with texture and finishes is identified to be a simple but very effective factor of differentiation, helping to convey particular messages to the customer and creating a special atmosphere affecting employees and customers likewise. Two types of graphics can be used to establish identity, marketing graphics and branding graphics.

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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

Analysis for prospective client

Telephonic

Analysis for existing clients

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The project has been segregated into three parts:

A) MARKET SEGMENTATION: the basic idea behind Market

Segmentation is ATTRACTING. RETAINING AND GROWING

CUSTOMERS.

Customers at Edelweiss Securities Ltd can briefly be segmented into three basic

categories:

1) Young, affluent segment.

2) Middle aged customers (40-55 yrs)

3) Senior Citizens.

The proportion of each one of them is shown below:

Source: Customer database, Edelweiss Securities Ltd.

On the basis of the survey conducted, 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. The senior citizens are

more of a conservative nomenclature. This relationship is illustrated

below with the help of hypothetical scale.

63%

25%

12%

Young & Affluent (20-39)

Middle Age( 40-55)

Senior Citizen( 55 &above)

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Compressed Analysis of Customer’s Risk Appetite:

INCOME-AGE RELATIONSHIP:

Combining all the market survey analysis (expressed in fore coming pages),

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 AFLUENCY HIGH AGE, LOW AFFLUENCY:

Customer Nomenclature: Aggressive. Customer Nomenclature: Conservative.

Risk appetite: HIGH Risk appetite: LOW

Investment Preference: Mutual funds,

equity, insurance. Investment Preference: Bullion, Bank Deposits.

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“MODERATE CUSTOMERS”:

Here, those customers should also be taken into consideration that features in

between the two ends: Aggressive and Conservative. These customers are

known to be moderate in their approach having a balanced Risk Appetite. The

investment preferences recommended to them includes a logical combination

of aggressive as well as conservative customers.

B) COMPARATIVE ANALYSIS:

Collection of data is done is done through different sources, like

questionnaire, competitors visits, customer database, customers’

feedback, etc.

Companies visited:

1) INDIABULLS SECURITIES LIMITED

2) KOTAK SECURITIES LIMITED

3) ICICIC DIRECT

4) HDFC SECURITIES

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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. ISL is in the business of providing securities broking and advisory

services and is a corporate member of capital market, wholesale debt market

and derivative segment of NSE and of the capital market and derivative

segment of BSE.

Through its different types of distribution channel, Indiabulls, so far has been

good in meeting customers’ needs.

Various distribution channels of Indiabulls:

a) Power Indiabulls: It is an online trading platform with an online terminal

with live updates.

b) Signature account: It is an online trading platform.

c) Depository service: Another name for DEMAT account.

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.

f) Equity analysis: A platform for reviewing the comprehensive report and

advisory services.

g) Currency derivative: Offers currency trade in NSE.

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SWOT ANALYSIS

STRENGTHS WEAKNESSES

FAST IMPLEMENTATION OF ORDERS * HAS A WEAK SECURITY SYSTEM

REAL TIME QUOTS * NUMBER OF SCRIPT ON ONE PAGE 25

LOW RATES OF BROKERAGE (30 PAISE) * VERY SLOW RESPONSE TO CUSTOMER

EVERYDAY BUY/SELL CALLS QUERIES AND COMPLAINTS

* GETTING CASH BACKDIFFICULT

LOSS OF MARKET SHARE DUE TO DELAY * IN CURRENT MARKET TURMOIL,CAN

IN RESPONSE AND QUERIES IMPROVE ON TO CRM STRATEGY TO

RETAIN ITS EXISTING CUSTOMERS

OPPORTUNITIES THREATS

The major flaw in the system is delayed response to customers’ queries, complaints

and clients’ instruction. But they are really good on fast implementation of orders

and real time quotes. Low rate of brokerage is their competitive edge and a USP.

Receiving funds from Indiabulls is the worst part of their customer service.

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2. KOTAK SECURITIES

Kotak securities, a subsidy of Kotak Mahindra Bank, is the stock broking and

distribution arm of Kotak Mahindra Group. It caters to the needs of foreign and

Indian institutional investors in Indian equities. The division also has a

comprehensive research cell with sectoral analyst covering all the major areas

of the Indian economy.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

VERY FAST ORDER PROCESSING * # OF SCRIPT IS 25

STRONG SECURITY SYSTEM * AVERAGE RESPONSE TO

CUSTOMER

REAL TIME TRACKER QUERIES AND RESPONSE

OWNED BANKING ACCOUNT

* HIGH BROKERAGE COMPARED

IN THE SAME LEAGUE

WITH OWNED BANK ACCOUNTS OF * LOSS OF CUSTOMERS DUE TO

HIGH

CUSTOMERS, IT CAN INCREASE ITS BROKERAGE

CUSTOMER BASE BY PITCHING TO ITS

EXISTING CUSTOMERS, BY GIVING

OFFERS

OPPURTUNITIES THREATS

on prospect of customer relationship, Kotak is really good. Suggestive buy or sell calls to

customers on daily basis. The limitation that it faces is it doesn’t allow more than 25

scripts at a time. Edelweiss, here has an edge as it gives 50 scripts at a time. The website is

more cumbersome as compared with others. The most important fact is that it has the

highest brokerage as compared to other broking house in the same league. Owing to its

banking parent, it has a competitive edge over other broking houses.

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3. ICICI DIRECT

ICICIC Direct, the subsidy of ICICI bank is the market leader in the field of broking

industry with a market share of more than 31 percent.

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. This account allows cash

trading, margin trading, spot trading, buy today sell tomorrow and call and

trading on phone.

b) Wise investment account: Along with stock trading and IPOs trading in BSE

and NSE, wise investment account also provide option to invest in mutual

funds and bonds online.

c) Active traders account: Active traders account gives more personalized

investment option to the investors. It allows investors to use online and

offline stock trading. It also provides with independent market expertise

and support through a dedicated relationship manager.

SWOT ANALYSIS STRENGTHS WEAKNESSES

Owned bank account. Accsesing website at a peak time.

Fast order processing.

Strong security system High brokerage

CAN WIN ON TO MARKET SHARE * LOSS OF CUSTOMER DUE TO BY

NEGOTIATING ON BROKERAGE BROKERAGE.

IMPROVEMENT IN CRM

OPPORTUNITIES THREATS

ICICI direct has got a good overall reputation apart from flaw in providing real

time online ticker to the customers. If this featured is cleared, no player in the

market can take over. All facility of trading in equities, mutual funds and now

post office savings are a dream for any investor. However, order execution is a

weak link in the system. The brokerage rate is a major concern as it charges a

premium brokerage and is far higher than its nearest competitors. Still it has

succeeded in maintaining the highest market share.

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4. 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, giving access to Equities, IPOs, Mutual Funds and

Derivatives.

HDFC Securities provides customers a robust platform to trade in equities in NSE

and BSE and derivatives in NSE.

OFFERINGS OFHDFCsec.com:

a) Online trading for residents and NRIs.

b) Cash-n-Carry on both NSE and BSE (Delivery)

c) Intraday trading on NSE and BSE.

d) Trade in future and option in NSE.

e) Online IPOs

f) Telephone based trading for equities, Derivatives and IPOs.

SWOT ANALISYS STRENGTHS WEAKNESSES

OWNED BANK ACCOUNT * SLOW ORDER PROCESSING STRONG SECURITY SYSTEM * NO DIALY BUY/SELL CALLS REAL TIME TRACKER * LACK OF PROPER RESEARCH QUICK RESPONSE TO CUSTOMERS

CAN INCREASE ON TO MARKET SHARE * LOSS OF CUSTOMERS DUE TO

SLOW BY IMPROVING RESEARCH AND ORDER PROCESSING

ADVRTISMENT STRATEGIES.

OPPORTUNITIES 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.

However, processing of orders (buy and sell) is a little slow as compared to other

houses. Its security system owing to its banking background is flawless which give

investors a sense of security. Dematerialization account charges are high as

compared to other broking firms. It checks the account balance before processing the

order. Response to customer queries is quick.

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EDELWEISS Vs COMPETITION

Banking account contracted Owned Owned Contracted Owned

Order processing fast Slow quick Very fast Fast

Security system Very strong Very strong Very strong weak Strong

Demat charges(rs)

1250/- 750/- 750/- 300/- 500/-

Buy/sell calls yes No No yes No

# of script on 1 page 40 25 25 25 25

Brokerage(negotiable)

0.40Paise 0.40paise 0.75Paise 0.30Paise 0.40paise

Real time tracker Available Available Not available Available Available

Post office saving NA NA Yes NA NA

Response to customer queries

Quick Quick Slow Very slow Average

Market share Data not available 4.93% 25.64% 13.81% 5.72%

The data presented above is a compressed comparison of EDELWEISS and its major

competitors

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INTERPRETATION From the above table following conclusions can be drawn:-

When it comes to brokerage, Edelweiss is very competitive. Though there are many firms that are offering very low brokerage to the clients, the company has come up with its new prepaid plans in which the brokerage is as low as 10 paisa. 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.

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.

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. The Brand image is not there in the minds of the people as the company is new in Kolkata. 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. ICICI is the major competitor, the benefit that it enjoys is that the customers can have their account I its bank so fund transfer is very easy. Besides it has a very good brand image and people trust on that. This is the reason that despite charging a high brokerage it is very popular among masses. Indiabulls is customer friendly and its terminal is considered very fast. So Edelweiss needs to focus on these two competitors.

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Market share of different players in the market

*number of terminals

**market share in percentage

Source: tradeji.com

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SALES QUESTIONNAIER ANALYSIS

1. Age segmentation of customers.

Conclusion:

As per the age segmentation 63% of them is young and 25% is in

middle age section. So, it can be interpreted that young people are

interested in share trading more.

63%

25%

12%

Young & Affluent (20-39)

Middle Age( 40-55)

Senior Citizen( above 55)

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2. Gender Segmentation of customers.

Conclusion:

As per our survey male are interested in investment than females.

3. Segmentation as per annual income.

Male 83%

Female 17%

<3 lakhs 35%

3-5 lakhs 40%

more than 5 lakhs 14%

7 lakhs and above 11%

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Conclusion:

People having annual income of 3-5 lakhs are more interested in

investment in Kolkata.

4. Through which of the channels do you usually buy a financial product?

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.

75%

25%

Channels

Internet Broker

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5. What is your preferable tool of investment?

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. The next option is mutual funds as they are comparatively risk free. Equity shares are the next best option according to the respondents. So it can be said that most of the people prefer risk-free return. While a 22% of graph shows that equity shares are considered as a good option by the investors due to their high return.

36%

7%

5%

25%

5%

22%

Bank Deposit Real Estate Derivative Instrument

Mutual Fund Gold & Bullion Equity Shares

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6. How did you come to know about Edelweiss?

Conclusion

The above responses shows that most of the people came to know about

Edelweiss by other sources, while many through reference group. This shows

that the company needs to work a lot towards creating Brand Awareness in

Kolkata. Reference group is a good source of information about the company.

Internet 62%

Print & electronoc

media 20%

reference group 10%

Other sources 8%

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7. Are you aware of all the products offered by Edelweiss?

Conclusion

64% of the people are not aware of the products offered by the Edelweiss. In

this category few of the respondents knew about the equity share trading but

were not aware of all the products, while a large chunk of respondents had

never heard of Edelweiss.

Yes 36%

No 64%

Brand Awareness

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8. Have you used any Edelweiss financial product?

Conclusion

In response to the question 78% of the respondents said that they are not

using any Edelweiss product at present, so it gives a clear picture that there is

a huge untapped segment among which the product needs to be pitched.

Yes 22%

No 78%

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9. Which Edelweiss product are you using now?

Conclusion

From the response it can be seen that De-mat (equity shares) is the highest

selling product of Edelweiss followed by mutual fund. Of the 10 of 22 people

using Edelweiss products nearly 50% prefer equity shares.

10

8

2 2

0

2

4

6

8

10

12

De-mat Mutual Fund Debentures Structuredproducts

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10. Best company according to the respondents.

Conclusion

30% of the respondents ranked ICICI Direct as the number one share trading

company. This is mainly because of its good Brand Image and linked bank

account. Sharekhan is preferred for its customer friendly approach and

trading terminal. Still Edelweiss stands in the competition and is preferred

mainly because of its research facility. The company needs to give attention

to the Brand image building.

ICICI Direct, 30

Sharekhan, 21 Motila

l Oswal,

12

Religare, 4

Edelweiss, 10

Indiabulls, 8

HDFC securities, 6

India Infoline, 5 Kotak, 4

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11. Factors affecting the choice of a company.

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.e. the reputation of the company. The

best example is ICICI. Brokerage is the second most important factor. Edelweiss

has good research so it has the capability of attracting customers. Of the above

factors all are present in Edelweiss except a good Brand Image in Kolkata, which

it needs to build.

Brand Image 35%

Services 12%

Proximity with residence

10%

Dealer support 13%

Advance R & D 10%

Brokerage 20%

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12. Possible sources searched for financial product information.

Conclusion

Most of the respondents 45% trust share broking websites when it comes to

financial product information especially in stock market. They trust on their

experience with the company and act accordingly.

Television 10%

Internet/Website

45% Newspaper/Ma

gazine 11%

Friends 22%

word of Moutth 12%

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13. Overall performance of Edelweiss.

Conclusion- 49% of the customers are satisfied and 8% dissatisfied. The

company needs to work on these customers and minimize their dissatisfaction.

0

5

10

15

20

25

30

35

40

45

50

Extremlysatisfied

satisfied Neutral Dissatisfied

11

49

32

8

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FINDINGS

Young people prefers Edelweiss de-mat service than other age groups- Young people is very much accustomed with computer and internet, so they are preferring online de-mat service. Satisfaction level if the customers- 49% of the sample size are satisfied but it should be increased by different strategies. Marketing strategy of Edelweiss in Kolkata- Edelweiss segments their customer by age, gender and annual income. Next they targets their customers and according positioning themselves. Opportunities and challenges before the company- There are many opportunities before Edelweiss like increasing geographical penetration, strong economic growth, and huge untapped retail customer. In front of any company the main challenge is the pitfalls of sensex and also development and offerings of other broking firms. Competitor analysis- Due to this project we found out the competitor analysis, from like icici direct is the best de-mat service provider in Kolkata. Awareness about Edelweiss products- People of Kolkata is not so much aware of the products served by edelweiss

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RECOMMENDATIONS

More flexible advance brokerage plans.

If the customer complaints are handled properly they will again do business with the company.

There should be more number of brokers and sub- brokers so that they can tap a large chunk of the customers.

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.

Maintain a grievance cell for clients to know their needs better.

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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. The CRM strategy of the company is different for Retail customers and HNWIs. When it comes to competitors ICICI is its biggest competitor and the company lags behind when it comes to Brand Image.

LIMITATIONS

Some aspects might not be covered due to time constraint.

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.

Incorrect data given by the respondents might not justify the purpose.

Many customers don’t wish to listen to us because of their busy schedule.

In a rapidly changing industry, analysis on one day or in one segment can change very quickly.

The study is limited to only Kolkata.

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REFERENCES

www.edelcap.com www.nseindia.com www.edelweiss.in www.wikepedia.com MARKETING MANAGEMENT BY PHILIP KOTLAR, KELLER, KOSHI, JHA Valuable insight provided by the company guide and the faculty guide

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QUESTIONNAIRE

Dear Customer, As a Management Trainee currently working with Edelweiss Securities I want to thank you for giving us the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. We appreciate your business and want to make sure we meet your expectations. ………………………………………………………………………………………………………………………………………………… 1. Age segmentation. a) Young & affluent(25-39) b) Middle age(39-55) c) Senior citizen(above 55). 2. Gender: a) Male b) Female 3. Annual income. a) < 3 lakhs. B) 3-5 lakh c) 5-7 lakh d) 7 lakh and above. 3. What are the possible sources that you search for financial product information before making any decision? a) Television/Radio b) Internet/Website c) Newspaper/Magazine d) friends e) Word of Mouth 4. Through which one of the channels do you usually buy a financial product? a) Internet b) Broker c) Direct from the company 5. What is your preferable tool of investment? a) Bank deposits b) Real Estate c) Derivative instruments d) Mutual funds e) Gold and bullion f) Equity shares

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6. How did you come to know about Edelweiss? a) Internet b) Print and electronic media c) Reference group d) By chance 6. Are you aware of all the products offered by Edelweiss? a) Yes b) No 7. Have you used any Edelweiss Financial products? a) Yes b) no 8. Which Edelweiss Products are you using now? a) Mutual Fund b) demat c) Debentures d) others, please specify 9. Company preference for opening de-mat account. ICICI direct

Share khan

Motilal Oswal

Religare

Edelweiss

Indiabulls

HDFC Securities

India Infoline

Kotak

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10. Factors affecting in choice of the companies. 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. a) Extremely satisfied b) Satisfied c) Neutral d) less satisfied e) Dissatisfied Phone no: Email id: Name:

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