A REPORT

ON

BY

(GLOBSYN BUSINESS SCHOOL)

COURSE: PGPIB

BATCH: 03

ENROLLMENT No. 011103017

SUMMER INTERNSHIP PROJECTSUMMER INTERNSHIP PROJECT

FINAL REPORTFINAL

REPORT

SALES AND DISTRIBUTION STRATEGIES OF

EDELWEISS: “OPPORTUNITIES AND

CHALLENGES”

A REPORT

ON

SALES AND DISTRIBUTION STRATEGIES OF EDELWEISS AND ITS

OPPORTUNITIES AND CHALLENGES

BY:

SUSNAT PRADHAN

DATE OF SUB MISSION SUB MITTED TO:

13th JULY, 2010 PROF BIKRAMJIT SEN

(Faculty Guide)

MR. GYAN CHAND JAISWAL

(Company Guide)

1 | P a g e

TO WHOM IT MAY CONCERN

This is to certify that Mr. Susnat Pradhan 1st year PGPIB batch student (PGPIB03, Roll No.011103017) of Globsyn Business School, has done her summer project titled “Sales and Distribution strategies of Edelweiss: Opportunities and Challenges ” under my guidance as a partial fulfillment of PGPIB curriculum requirement.

Wish him all success in life.

Date:

Place: Kolkata

Gyan Chand Jaiswal Prof Bikramjit Sen

(Company Guide) (Faculty guide)

Edelweiss Broking Ltd. Globsyn Business School

2 | P a g e

AUTHOR I ZATIO N

I, Susnat Pradhan hereby declare that the project titled “S ales a n d Distri b ution strat e g y of E d el w e i ss and its o pp o r tun i t i es a n d c h alle n g es ” is an original and genuine work carried out under the guidance of Mr. Gyan Chand Jaiswal (Area sales manager, Edelweiss) and

Prof. Bikramjit Sen (Faculty member GBS Kolkata) from 5th April, 2010 to 12th June, 2010 in partial fulfillment of PGPIB Program. I declare that the report submitted by me is a bona-fide work of my own. However, any discrepancies, if any, found in the project will be completely my responsibility.

Signature:

Place: Kolkata Name- Susnat Pradhan

Date: 13th July, 2010 Enroll No. - 011103017

3 | P a g e

ACKN OWLEDGE M ENT

No task is a single man’s effort as there are various factors, situations and people combine together to form the background for the accomplishment of any task.

This project report bears the imprint of some very important people, both from my institution, GBS Kolkata as well as the Organization (Edelweiss Broking Ltd.), who are directly or indirectly related in shaping up this project. I am highly grateful and sincerely acknowledge valuable contributions imparted by these imminent people towards the completion of this project.

I would like to thank sincerely my Company Guide, Mr. Gyan Chand Jaiswal, Area sales manager, Edelweiss, Kolkata, for his useful guidance and inputs. I am grateful to the Organizational members of Edelweiss for their help and support throughout the project.

Most importantly, I deeply want to express my profound gratitude and thankfulness to Prof. Bikramjit Sen for having faith in my endeavors and abilities. Knowledge gained from him will always inspire and encourage me 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.

Susnat Pradhan

4 | P a g e

TABLE OF CONTE NTS

S N .N O. CO N TE N T P A G E N O.

1. Executive Summary 6

2. Introduction to the topic 8

3. Purpose 9

4. Scope 9

5. Limitations 10

6. Methodology 11

7. Introduction to the Indian Stock Market 12

8. Introduction to Edelweiss 15

9. Main Text

Findings about the selling strategy

Findings about the Distribution strategy

Findings about the CRM strategy

Strategy of Edelweiss in Kolkata

22

26

32

36

10. Primary Data analysis

Consumer Risk Analysis

Competitor Analysis

Questionnaires’ analysis

39

41

43

11. Key findings 51

12. Conclusion 52

13. Recommendations 52

14. References 53

15. Annexure- Questionnaires 54

5 | P a g e

EXECUT I VE S UMM ARY

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 Sales and Distribution 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 analyze 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 favor 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 advice 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 Demat account. I have visited to many places in purba and paschim Medinipur. 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 retail 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 t rack ing 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.

6 | P a g e

Objective of the project-

To cover the various aspects of sales and distribution strategy

To track the CRM policy of the company and its importance

Competitor’s analysis and knowing the opportunities and challenges before thecompany.

Methodology-

Primary data collection- primary data was collected through questionnaire design and conducting a survey.

Secondary data collection- source of secondary data was books, journals, company websites and database provided by the company.

Limitations-

Short duration of the project

Customer response may not be 100% right

7 | P a g e

INTRODUCTION TO THE TOPIC

The project is about selling and distribution strategies of a financial service providing company (Edelweiss Broking Ltd.) and opportunities and challenges faced by it. The project stresses on retail 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 c u stomer r e t e n t i on 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 cus tomers . My job prof i le i s interacting with the existing retail clients and the clients who are in a dormant stage and convincing them to start business with the company and maintain their association with the company. This involves calling the exist i ng clie n ts and cli e nt v is i t s . 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 analyze 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 endeavor 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. S ele c t i ng a sales a n d d is t r i b ution a p p r oach is a k ey element of a su c cessf u l busin e ss m od el . 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 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. C o m p e t i t o r s’ a n al y sis 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.

8 | P a g e

PU R POSE

To identify the distribution channels in the financial firm– this project will explore the various distribution channels of the company like brokers and sub- brokers

To study the distribution strategy of the company- Stress will be given on the distribution strategy employed by the firm

To understand the customer needs and accordingly sell them suitable products – for selling it’s important to understand the customer perception. This project will help company to know the customer base in a better way so that suitable selling strategy can be adopted

To study how do sales and distribution channel choices fit into the overall business model- the project will find the effectiveness of channels in the company

How are the underlying characteristics of sales and distribution channels changing in the new segment - the project will find out whether with Edelweiss coming in a new segment the distribution channels are changing or not and how their sales strategy has been affected

Creating competitive advantage with sales and distribution strategy - the aim of the project is to explore how competitive advantage can be gained by adopting the right strategies

To identify the growth areas of the company - the project will also focus on as to how the company can improve its sales further and what are the segments where there is a growth potential

To study the importance of CRM- the project deals with the relationship management with HNI clients and its various aspects

SCOPE

There is a wide scope of this project for the company as well as industry. As the study is about the sales and distribution strategies that are the major factors that decidecompany’s success, so knowing a good deal about it is of much importance. The company can trace the loopholes and take corrective measures which will help it improve further. The project has covered various marketing concepts and the models that fit into the business model. The scope is just not limited to the company; it gives an idea of the industry.

9 | P a g e

L IMI T ATIOS

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 and East & West Midnapore

SORCES of DATA

The data is being collected through primary and secondary sources.

Primary Data

The data will be collected through questionnaires from people in Kolkata. The sample size is taken as 100 for sales and distribution questionnaire and 30 each for the two questionnaires related to CRM.

Secondary Data

Database given by the company

Websites of the company and books

Journals and magazines

10 | P a g e

ME THODOLOGY

Research methodology is a strategy that guides a research in providing answers to research questions and for this, research survey is being done.

For the collection of primary data the questionnaire designed for the purpose was given to the customers to know their response. The data were collected in ten weeks , in Kolkata and East & West Midnapore. The average response rate was 75.9%, due to the short time available for the interviews. This was followed by client visits and interaction with the distribution agents like broker and sub-broker.

Q uest ionna ire Design

The questions were designed in an easily understandable way that the respondents may not have any difficulty in answering them.

S a mpli n g U ni t :

The respondents who were asked to fill out questionnaires are the sampling units.

S a mpli n g Ar e a :

The area of the research was area of Kolkata and East & West Midnapore, India.

Int erpretat ion

Interpretation refers to the task of drawing inference from the collected facts after an analytical study, in fact it is a search for broader meaning of research findings it is through interpretation that the researcher can well understand the abstract principle that respondents beneath his findings. The simple statistical tools will used to analyze the data collection; Bar Graphs and pie chart have been used to illustrate the findings diagrammatically.

11 | P a g e

INTRODUCTION TO THE INDIAN ST OCK MARKE T

The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of BSE in 1875

Inception- The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance.

Bubble burst- The early stock market saw a boom till 1865, and then in Jul1865, what was then used to be called the share mania ended with burst of the stock market bubble. In the aftermath of the crash, banks, on whose building steps share brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the “Native Share and Stock Brokers Association”

Beginning of a new phase- A new phase in the Indian stock markets began in the 1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies, which created a surge in retail investing.

Growth supporting factors-The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilization that evinced huge interest from retail investors. A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India.

Setting up of SEBI- the Securities and Exchange Board of India (SEBI), which was set up in 1988 as an administrative arrangement, was given statutory powers with the enactment of the SEBI Act, 1992. The broad objectives of the SEBI include-

to protect the interests of the investors in securities

to promote the development of securities markets and to regulate the securities markets

12 | P a g e

Incorporation of NSE- NSE was incorporated in Nov 19 9 2 as a tax paying company, the first of such stock exchanges in India, since stock exchanges earlier were trusts, being run on no-profit basis. NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network, electronic trading, greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. To speed the securities s e t t l emen t p rocess , T h e De p osit o r i e s Ac t 1996 w a s p a s sed tha t allowed for dematerialization (and dematerialization) of securities in depositories and the transfer of securities through electronic book entry. The National Securities Depos i to ry L imi ted (NSDL) se t up by l ead ing f inanc ia l institutions, commenced operations in Oct 1996.

Despite passing through a number of changes in the post liberalization period, the industry has found its way towards sustainable growth. A stock Broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. To work as a broker a certificate of registration from SEBI is mandatory after satisfying all the terms and conditions.

FINANCIAL M ARKETS

The financial markets have been classified as

C ash ma rk et (spot ma rk e t ) – largest traded, the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately.

De r ivat i v es ma rk et – after cash market, the derivatives markets are the financial markets for derivatives. The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives.

De b t ma rk et - The bond market (also known as the debt, credit, or fixed income market) is a financial market where participants buy and sell debt securities.

C o m m od i t i e s market – af ter commodit ies market , Commodi ty marke t s a re markets where raw or primary products are exchanged. These raw commodities are traded on regulated co m m o d i t i e s exc h a n g e s , in which they are bought and sold in standardized contracts.

NE ED O F A BRO KER

A broker is a person or firm that facilitates trades between customers. It is advisable to conduct transactions through an intermediary. For example one needs to transactthrough a trading member of a stock exchange if they intend to buy or sell any security

13 | P a g e

on stock exchanges. One needs to maintain an account with a depository if they intend to hold securities in demat form. You need to deposit money with a banker to an issue if you are subscribing to public issues. One gets guidance if you are transacting through an intermediary. A broker acts as a go between and, in doing so, does not assume any risk for the trade. The broker does, however, charge a commission. A broking firm acts as an intermediary between NSE and Client. Stock Brokers come under the category of Market Players. The membership in the stock exchange can be granted as individualmembership and corporate membership.

B

The market intermediaries play an important role in the development of Securities Market by providing different types of services. There are two major stock-exchanges N S E (c o mpos i t i on of 5 0 stoc k s) and BSE ( C o m p osit i on of 3 0 stoc k s).

Ex cha nge- wise St ock Brokers Regist ered w it h SEBI (As on Ma rch 31, 200 8)

SN NO. STOCK EXCHANGE TOTAL NO. OF STOCK BROKERS

NO.OF CORPORATE BROKERS

CORPORATE BROKERS AS A% OF TOTALSTOCK BROKERS

1. Ahmadabad 321 157 48.912. Bangalore 256 124 48.443. BSE 946 767 81.084. Bhubaneswar 214 19 8.885. Calcutta 957 204 21.326. Cochin 435 80 18.397. Coimbatore 135 48 35.568. Delhi 374 213 56.959. Gauhati 103 3 2.9110. ISE 935 345 36.9011. Jaipur 488 18 3.6912. Ludhiana 297 85 28.6213. MPSE 174 34 19.5414. Madras 181 71 39.2315. NSE 1,129 1,039 92.0316. OTCEI 719 551 76.6317. Pune 188 55 29.2618. UPSE 354 78 22.0319. Vadodara 311 64 20.58

14 | P a g e

NSENSE BROKERBROKER CLIENTCLIENT

AN INTRODUCTION T O EDE LWE ISS

Edelweiss capital was started by two IIM graduates Mr. Rashesh Shah and Mr. Venkat Ramaswami. The Company is operating in India as an Integrated Investment Banking Company. Edelweiss strives to be a thinking organization, trying to be innovative and imaginative. The policy of the company ensures transparency and greater opportunities for all its clients.

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 crorer

Website- ww w. edelcap. com , www. edelweiss. in

15 | P a g e

HIGHLI G HTS

EBL 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 215stocks 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 healthy5% plus market share in the institutional broking segment

Edelweiss is also in the process of widening its product portfolio by penetrating into p r o d u c t specific a n d s e c t o r s p e c i f i c n i c h e s , w h i c h w i l l b r o a d e n a n d 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 andInsurance 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. Raskesh Shah Well respected Brand with strong position in relevant market segments

S TREN G HTS O F THE C OM P ANY

Has an integrated business model, which specializes in providing a wide range of

financial products and services such as investment banking, institutional

equities, wealth management, and wholesale finance.

Is well positioned to leverage the growing financial sector in India and become a

significant market player, especially in areas like investment banking,

institutional equities etc.

Has a strong research platform with research products, such as fundamental and alternative research, catering to institutions and HNWIs and retails. The fundamental

16 | P a g e

research covers ~190 companies which represent ~69% of the market capitalization of all the companies listed on BSE as on August, 2008. On the other hand alternative research utilizes quantitative techniques to identify short term and medium term investment opportunities in the capital market

The company has a strong internal controls and risk management system employed throughout t h e f i r m t o a c c e s s and m o n i t o r r i s k a c r o s s v a r i o u s business line. The Risk exposure is monitored and controlled through a variety of separate but complementary financial, credit and operational reporting system

Is an established brand with strong track record of high growth and

profitability?

Is strongly focused on nurturing & maintaining strong business relationships

with corporate & institutional clients Well positioned to utilize the immense opportunities in the Indian financial sector

RECENT APPROACH

Edelweiss is a premium broking firm whose targets were only HNWI clients. But seeing the opportunity in retail sector it has forayed into it. The company is providing the same research facility to its retail clients as it provided to its premium clients. It is offering an online platform to the clients which will increase transparency and make business hassle free for the clients. The company is making a shift from ESL (Edelweiss Securities limited) to EBL (Edelweiss Broking Limited).

T h e b en ef i t s o ff er e d b y t he c om p a n y t o i t s c li e n t s a re : -

Online Platform News alert through Mobile messages and e-mail Dealer support Portfolio Doctor (Turtle) Toll Free Number (Helpline Services)

Thus the company is customer focused and protects the wealth of its customers through its innovative ideas. The company is repositioning itself from a niche marketer to a mass marketer and is aiming at Brand Repositioning.

17 | P a g e

THE PRODUCTS AND SERVICES OFFERED BY EDELWEISS ARE AS FOLLOWS:-

Capital based

Agency based

S ER V ICES

Recent initiatives/high growth areas

Investment Banking: This includes services such as M&A advisory, transaction execution relating to structured finance, equity markets, real estate, and infrastructure.

Institutional Equities: Edelweiss’ Institutional equities business comprises institutionalequity sales, sales-trading, and research.

Private Client Brokerage: These services are targeted at high net worth and other individuals who actively invest and trade in the equity market.

Wealth Management: Wealth management involves providing investment advisory, planning & asset deployment services to high net-worth individuals.

Asset Management: This involves both asset management as well as investment advisory services. Under this, the company advises three funds with an aggregatecorpus of over USD 330 mn.

18 | P a g e

Insurance Brokerage: Edelweiss has also entered the non-life insurance brokerage business as an IRDA registered broker in 2005 and it distributes insurance products through its subsidiary, Edelweiss Insurance Brokers Limited.

Treasury: The internal treasury operations manage the excess capital funds by investing the same in low risk strategies to achieve risk-adjusted returns.

Wholesale financing: Wholesale business provides the high net worth individual and corporate clients with facilities such as loans against shares, loans to finance IPO subscriptions, and loans against mutual fund units. This is done through a subsidiary, ECL Finance Limited.

PRODU CTS

Advisory Based Broking (ABB) – an asset management service.

Margin Funding- The Company provides funds to people who wish to invest large amount in stock market but are lacking in fund. Fund is provided against securities. The company has a policy of ‘hair cut’ which means that the assets that are kept as securities, they are valued less than their original price. Fund is provided for investing in only those stocks that are listed in the stock broker’s list of the company. This is to save the company from loss as company has those stocks in the list that are less volatile and whose market value is good.

Structured Product- As such, structured products were created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. Structured products can be used as an alternative to a direct investment, as part of the asset allocation process to reduce risk exposure of a p o r tfo l i o , or to utilize the current market trend

Mutual Fund- This is a product offered by the company that takes money from the investors and invests it in the stock market on their behalf as customers are not fully aware of the stock market. They take money from many customers and collectively invest in the stock market.

Insurance- Another product offered by the company in which the agent gets commission on every insurance policy done by him

Arbitrage- Arbitrage, or true arbitrage, involves buying and selling a security and taking advantage of prices differences that may exists on different markets.While rare, this does happen from time to time

Portfolio Management Services- this product comes under wealth management.Customers are advised where they should invest their total investment savings.

Initial Public Offering (IPO) - This product invites public to participate in the bidding process.

19 | P a g e

Demat account- it refers to Dematerialized Account. It is necessary to sell and buy stocks. So it is just like a bank account where actual money is replaced by shares. One has to approach the DPs, to open his demat account. So one doesn’t have to possess any physical certificates showing that you own these shares. They are all held electronically in the account. As one buys and sells the shares, they are adjusted in their account. Just like a bank passbook or statement, the DP provides with periodic statements of holdings and transactions.

Commodity market- In this market metals and agricultural products are traded.MCX for metal products and NCDEX for agricultural products.

CLIE NT RE VENUE MIX

Institutional/corporate client individual clients

22%

78%

20 | P a g e

G ROWTH STRATEG Y

The Company’s growth areas are basically across three categories- Products, asset classes and client segments. It basically focuses on HNWI clients, and now it has come into the retail segment which is its source of growth. From the asset side it gets fixed income and is also into real estate. The popular products are wholesale financing,financial product distribution etc.

21 | P a g e

M AIN TEXT

FINDI NGS

Sales and distribution management constitutes one of the most important areas for customer satisfaction. Sales management has been defined as the management of a firm’s personal selling functions while distribution is an indirect function. Therefore integration is required between sales and distribution functions.

(1)SELLING STRATEG Y O F 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

P rodu c t - ce n t er e d s ell in g C l i e n t- ce n t er e d s ell in g

1.

2.

3.

4.

Stress on research and development 1.

of product

Stress on research and development of

relationships with clients

Emphasis on knowledge of product 2. Emphasis on knowledge of customers

Influenced b y p a s t performance of 3. products and competition and present situations

directed more to consideration of future

Growth and developments in the client

World

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

seeks to raise client’s expectations of

Personal excellence

22 | P a g e

The strategy of Edelweiss is a mix of product centered and client centeredstrategy.

(2) EDELWEISS’S SALES M ANAGEMN ET 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:-

Create direct sellingprocess

Identify the customer

Make appointmentwith customer

Give suitable demo &pitch

Ensure knowledge about product

Ensure increase in

cust. value

After sales promptservice

Close deal

23 | P a g e

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

(3) M E T HODS O F A PP ROA C H A D O P T E D B Y S A L ES P E R S O NS TO S ELL E D ELWEISS P RO D U C TS

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 and local dealer support.

Interactive Approach- the approach is interactive i.e. it is a two way communication and client queries are always welcomed.

AIDAS THEO RY O F SE LLING

ATTEN

TION

INTERE

ST

DESIRE

ACTION

INTEREST INTEREST

ATTENTION ATTENTION

DESIRE DESIRE

ACTION ACTION

Seek the attention of the prospect client

Maintain the attention by creating interest

Create desire in customer’s mind to buy the product

Induce the client to buy the product

24 | P a g e

SELLING SKILLS - Talking about the skills that a salesperson should posses, they are asfollows:-

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 (P U S H S T R ATE G Y ) which iscustomer focused.

25 | P a g e

(4) DISTRIBUTIO N STRATEG Y

Distribution channels are organized structures performing the tasks necessary to facilitate exchange transactions. The functions of distribution channels are to create time, space and state utilities which constitute the added value of distribution. Distributors (wholesalers, retailers, agents, brokers) are required because manufacturers are unable to assume by themselves, at a reasonable cost, all the tasks implied by a free and competitive exchange process. Distribution channels can be characterized by the number of intermediary levels that separate the supplier from the end-user. The selection of a particular channel design is determined by factors related to market, buyer behavior and company characteristics. When the channel structure is indirect, some degree of co-operation and co-ordination must be achieved among the participants in the vertical marketing system. Regarding the number of intermediaries is necessary; three market coverage strategies are possible: intensive, selective or exclusive distribution. Distribution is one of the elements of marketing mix. Through distribution channel the product passes through intermediaries before reaching the end consumer.

Distribution channel can have number of levels-

Zero level channel One level channel Two level channel

Choice of distribution channel depends on

Market consideration – consumer or industrial market, number of potential customers, size of order, buying habits of customers, geographical concentration of markets

Product considerations - Technical nature, Perishability

Company considerations- Financial resources, Services provided by the channels, Experienced and competent management, desire for control of channels

Middlemen considerations – Competition, sales potential, Availability of desired middlemen, attitude of middlemen, cost

The key differentiating factors of a successful distribution channel are as follows:

Quality of advice given by the company to its customers Choices of products After sales service Settlement of issues if any

Managing distinct cultural and social ethos Marketing the product as an essential financial product Building trust

26 | P a g e

Role of distribution channels

To adjust the discrepancy of assortment through the process of sorting, accumulation, allocation, and assorting

To minimize the distribution costs through reutilizing and standardizing transactions to make exchange more efficient and effective

To facilitate the searching process of both buyers and sellers by structuring the information essential to both the parties

To provide a place for both parties to meet each other and reducinguncertainty.

Distribution channel strategy

Setting distribution objectives in terms of the customer requirements

Finalizing the set of activities that are required to be performed to achieve the channel objectives

Organizing the activities so that the responsibility of performing the activities is shared among the entities that are meant to perform these activities

Developing policy guidelines for the smooth functioning of the channel on a day to day basis

The distribution extension decision is based on distribution development index (DDI) a Category Development Index (CCI). If we see the current situation of edelweiss is considered then it can be seen that DDI is high as the brand is readily available in the market as compared to its competitors. While CCI is low if we consider the retail segment, in which the company is a new comer. Per capita consumption of its products in the market relative to per capita consumption of the total financial products is low. So the strategy adopted by Edelweiss would be “Concentrating on demand generation activities”.

In the retail sector the strategy of Edelweiss is to go for Brand Repositioning and become a mass marketer. The company is distributing Pamphlets among the customers for its promotion and building an image in the minds of the customers.

27 | P a g e

H distribution

development

L

LH

H- High L- low

Category development

Edelweiss is itself an intermediary between NSE and client and is a part of the distribution channel. But as a company it has its own distribution strategies to sell products to the customers.

(5) DISTRIBUTIO N CHANNELS OF THE COM PANY

The company has named the services provided to the customers as CLIENT ADVISORY SERVICES (CAS). The company has a multichannel distribution system. Client Advisory Services is mainly looking into five channels for distribution-:

A. Inbound Team

B. Sub Broker/ Remissor

C. Direct Selling Agency

D. Corporate Accounts E. Free Accounts

28 | P a g e

Inbound Team: - CAS currently has an inbound team of 30 members divided into four team leaders. Each team leader can have 8 fixed cost agents reporting to him. These fixed cost agents are sourcing accounts directly from the market. Team leaders are reporting to ASM which in turn are reporting to the Regional Head. Each agent has a specific target assigned to him.

Rep orti ng Hi erarchy:

RegionalHead

Area SalesManager

Team leaders

Fixed costagents

Sub – Broker/ Remissor- Sub brokers charge commission for the business they bring to the company by bringing clients. Sub-brokers have their own office space and they need not work in the office of the company they are working for as sub-broker. Whereas Remissor is a type of Sub-Broker that uses the office space of the company it is working for. They have a fixed participation in the company. Remissor is given a certain low % as compared to Sub-brokers as they are using the resources of the company

Direct Se l li n g A g e n t s ( DS A ) - DSA’s are working for the company but they have no profit participation. They are given commission on the basis of account clients under Edelweiss. The DSA’s looks for agents who can work under them. They have a team of around 7-8 members who source the clients for them. These agents get commission from the DSA’s and they have no connection with the company.

Corpo r a t e A c c o u n t s- This is a way to get bulk accounts from the companies. NSE and BSE listed companies are offered free accounts. First an appointment is fixed in the target company which is followed by a corporate presentation. This is the major contributor to the company’s sales.Free Accounts- The rediffmail users who registered in our site get free account(post paid) and one month free trade.

29 | P a g e

Ex an

Ex po

(6) CHANNE L MANAG EM EN T TASKS

Design of channel structure

Ex-ante phase

Distribution channel strategy

Establishing the channel

Channel objectives Activity finalization Activity organization Developing Policy

guidelines

Motivating the channel members Ex-poste

phase

Resolving conflicts amongchannel members

Managing the distribution channels is an important task. It involves two phases- managing before the channel is actually executed. This is called the ex-ante phase. During this phase the channel is designed and established. The next phase is ex-poste phase, i.e. the phase after the channel has comes into work, in which the channelmembers are motivated and the conflicts are resolved.

30 | P a g e

(7) INNO VATIO N IN DISTRIBUTIO N CHANNELS

Edelweiss’ Retail stores are an approach to shift from traditional marketing channelsand this can give the competitive edge and is the differentiating factor.

(8) D I S TRIBUTI O N CHANNEL STRATEGY OF EDELWEISS BASED ON CUSTOMER BEH AV I OU R

P U S H F O R C E P U LL F O R C E

Financiallyunaware/unsure

sales force

Financially aware/unsure Telemarketing, mediaAdvertising

Financially astute/sure Financial media Telephone, internet

Financial niches Recommendations,historical relationships

Face to face, telephone

31 | P a g e

(9) A S HORT C OM P A R I S O N O F C O NSU M ER P RO D U C TS TO THE FINAN C IAL P RO D U C TS W HEN IT CO M ES TO S A L ES A ND D I S TRIBUTI O N

The financial services are different from the consumer products offered. If we make a comparative analysis following points can be highlighted:-

I n t erac t i on with t he c u st ome r - In case of consumer products the company has no direct contact with its customers. It distributes its products to the distributors and after that does not come in the picture. They come in contact with the customers only in case of any complaints. In case of a financial product the company personnel interact directly to the customers and convince them to buy the product. Thus the responsibility of company increase in case of financial products

Buy in g P att ern - Many consumer products are taken by the customer on an impulse while taking a financial product involves a long thought process.

(10) VARIOU S ASPECT S O F CU STOM ER RELATION SHIP M ANAG EMEN T

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. The project involves interacting with the existing HNWI clients and the clients who are in a dormant stage and convincing them to start business with the company and maintain their association with the company. This involves calling the existing clients and client visits. This helped in getting an insight into the various aspects of customer relationship.

FINANCIAL SERVI CES

Edelweiss is financial service providing company. In case of financial company the differentiating factor is the services provided by the firm. Financial services basically mean all those kinds of services provided in financial or monetary terms, where the essential commodity is money. These services include; Leasing, Hire purchase, venture capital, Merchant banking, Insurance, housing finance, Mutual funds, factoring, stock broking and many others. The term financial services in its broader sense refer to “mobilizing and allocation of savings’’. It is identified as all those activities involved in the process of converting savings into investment.

There are number of factors which make the financial services different from physical goods. T he m a j or c h aracte r is t ics of f i n a n cial ser v ic e s are – I n t a n g i b ili t y , L ack of o w n e r shi p , I ns ep arabili t y , P e r i shabili t y , H e t e r o g e n e i ty, F i d u c i a r y r es p onsi b ili t y , L ong ter m .

32 | P a g e

SERVICES M ARKETIN G TRIANG LE

FIRM

Internal marketing External Marketing

EMPLOYEES

CUSTOMERS Interactive Marketing

According to Grönroos the internal marketing has to be managed by the company’sleadership, the interactive marketing happens between the employees and the clients and the external marketing is what takes place between the company’s management and the clients.

3P’S OF SERVICE MARKETING

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 EVIDANCE

The exterior design can be utilized to communicate e.g. the history and values of the respective institution. The use of color 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.

33 | P a g e

Two types of graphics can be used to establish identity, marketing graphics and branding graphics. While marketing graphics promote products and services, branding graphics enhance brand image and should be used complementary with all marketing activities (Grow, 2004).

MO DERN M ARKETING CONCEPT

Starting point Focus Means End

Classical

TargetMarket

ConsumerNeeds

IntegratedMarketing

CustomerSatisfaction

Contemporary

IndividualCustomer

CustomerExperience

CRM

CustomerLoyalty

Need of C R M

To keep existing customers in the face of intense competition and the higher comparative cost of acquiring new customers

Intense completion in the industry results in emphasis on service quality as means of achieving competitive advantage

close and long term relationship with customers imply continuing exchange opportunities with existing customers at a lower marketing cost per customer

Good relationship with customers can result in a good word-of-mouth publicity.

Service quality cracks can often be prepared over where good relationships have existed previously

To pursue a customer centric strategy rather than a product centric strategy

Individual Customer

Individual CustomerIndividual Customer

Individual Customer

Customer Experience

Customer Experience

CRM CRM Customer Loyalty

Customer Loyalty

34 | P a g e

MODE L FOR CRM MARKE TING

Customer needs assessment and acquisition

Customer development through personalization &customization

Customer retention and referring new customers

Addition of value with products and services

Contact and involvement

Intimacy and one to one relationship

Price

offers

Special facilities/services

Information sharing

Relationship

marketing

Commitment

Recognition

Respe

ct

Rewar

d

Recipr

ocatio

n

Transp

arency

Share values

High customer

satisfaction

Increased market

share High

customer loyalty

High customer retention index

Life time customer

CRM involves the above shown process. First the customer needs are identified and they are acquired. This is followed by development of customers through customization and then steps are taken to retain the customers.

(11) HNWIs VS RETAI L CLIENT S

HNWIs RETAIL

Individualized distribution Mass distributionIndividualized Message Mass advertisingShare of customer Share of marketProfitable customers All customers

Customer’s need

assessment & acquisitionCustomer development through personalization & customization

Customer retention & referring new customer

High customer satisfaction

Increased market share

High customer loyalty

High customer retention index

Life time customer

Relationship marketing

Commitment

Recognition

Respect

Reward

Reciprocation

Transparency

Share values

Addition of values with products & services

Contact & involvement

Intimacy & one to one relationship

Price offers

Special facilities/services

Information sharing

Customer retention Customer attractionIndividual customer Average customerCustomized offering Standard productFocus on few but profitable Focus on large number of

customersCustomersExtra services Normal servicesProactive marketing Reactive marketing

35 | P a g e

The above comparison shows that the strategy adopted for retail clients is different from that of HNWIs depending on their values and profit they bring to the organization.

(12) M ARKETING STRATEG Y O F EDELWEISS IN KO LKATA

SE GME NTING, TARGETING AND POSI TION ING

The company is segmenting the customers on the basis of demography. The various categories are-

Age- the company is targeting only those people who are of 28yrs. of age and above. This is to ensure that they have a sound understanding of stock market

Gender- Male clients are being targeted as it is the case with most of the families that the male members’ trade and women don’t take much interest in trading. So they are targeting the male clients

Educational qualification- The Company is looking for educated customers who can understand the stock market and get the advice given by the company. As Edelweiss is a premium broking firm so while it is catering to the retail clients but still it is maintaining its image

Income level- the company is targeting people who have an annual income of3lakhs and above. This ensures that they are able to invest in the stock market

CLASSIFICATION OF CUSTOMERS ON BASIS OF THEIR VOLUME & LEVEL OF INVESTMENT

36 | P a g e

According to the above diagram the HNWIs are the customers whose volume is low but their level of investment is huge so they are of much importance. As the volume of customers decrease their level of investment increases that means that there are few clients that account for most of the profits of the company.

The research and development wing has taken a center stage in the innovation process going forward. The company is thus positioning itself as a premium broking firm as it basically caters to HNI clients. It believes in providing quality service to its clients. Even as it enters the retail segment, it is maintaining its premium image as is clear from the choice segmentation of customers. It maintains a good client base and provides quality services to them. The company is POD (Point of differentiation) is its quality Research and development.

FACING THE COM PET ITORS

Flank attack is the strategy adopted by Edelweiss to attack its competitors. In this strategy the company attacks on the competitor’s weak point. Here the company is attacking the competitors on the basis of brokerage and research.

Few strategies recommended by Edelweiss

Our recommended strategy is to be overweight domestic-focused sectors: telecom, industrials, consumer discretionary, and BFSI Our top large cap picks are Bharti, BHEL, Crompton, Hero Honda, HDFC Bank, SBI, Sun TV and Suzlon.

E D ELWEISS IN N E WS

SPONSOR OF ICL- Edelweiss is the sponsor of ICL and this will give it wider coverage and help it build its brand. The technique for which Edelweiss is going is Event sponsorship and this is an effective way to cover mass media.

TIE-UP WITH UNION BANK OF INDIA- to roll out Wealth Management Services to cater its High Net worth Individuals (HNI) in Mumbai. Under the conditions of the tie-up, Edelweiss will be contributing a whole range of wealth management products and alternative investment options such as structures product, Real Estate Funds, Art.

Edelweiss is looking for long term customer base and for that reason it is trying to understand the investment pattern of the customers and accordingly suggest them the financial products matching their risk profile. While other companies are just selling their products Edelweiss by conducting this survey is actually trying to understand theinvestment needs of the customers.

37 | P a g e

OPPORTUNITIES BEFORE THE COMPANY

Strong economic growth, increased geographic penetration, growth of SMEs and the increasing need for capital among Indian corporations are expected to continue to drive India’s financial services industry.

The Company is already well established in domains such as investment banking.Moreover, it plans to invest a large part of its IPO in prepaying of loans, enhance margins with stock exchanges and establish new offices.

Huge untapped retail segment - the Company has a huge opportunity before it as it has a vast untapped retail segment.

Increasing affluent class- The rise of the affluent class will aid the growth of the company

The Indian financial sector carries immense growth opportunities, be it investment banking, wealth management, insurance broking or any other domain

The focus on diversity has already reduced the risk of client and product concentration. With a continuous rise in number of HNIs, and the expansion of capital markets, domains such as investment banking, PMS are likely to experience outstanding growth

CHALLENGES BEFORE THE COMPANY

More people have sold the shares in the Indian share market than they bought in the recent weeks. This has added to the fall of sensex to lower points.

Foreign investors have pulled out from stock markets leading to heavy losses in stocks and mutual funds

Because of such uncertainty many people have started saving money in banks rather than investing

Business Volatility- The business in which the company is in is very volatile and keeps changing with the market situation. So to keep a good pace of growth is the challenge that lies ahead

Competition- The competition is fierce among different market players and standing in this situation is a challenge

Risk management- The business is prone to a high risk and minimizing risk is the need of the time

People- The company should maintain the good working force that it has with it at present and improve it to gain competitive advantage

38 | P a g e

ME THODOLOGY

Research Methodology

Consumer profiling andInvestment need analysis

Comparative Analysis Market Survey

Suggesting suitable products

De-mat account sales

Questionnaire

Telephonically

Sales &distribution

Existing customers

Dormant customers

KEY FINDING S

(i)Consu mer prof iling an d invest ment need a na lysis

The survey involved classifying the customers into three categories on the basis of their risk appetite following the Jacob’s Model. According to this model customers can be classified into three classes on the basis of their investment preference.

AGG RESSIVE CUSTOM ER S:

10% 25%

65%

Research MethodologyResearch Methodology

Consumer profiling & Investment need analysis

Consumer profiling & Investment need analysis

Comparative AnalysisComparative Analysis Market SurveyMarket Survey

QuestionnaireQuestionnaire TelephonicallyTelephonically

Dormant Customers

Dormant Customers

Existing Customers

Existing Customers

Sales & Distribution

Sales & Distribution

De-mat account saleDe-mat account saleSuggesting suitable products

Suggesting suitable products

Bonds StocksShort term

39 | P a g e

Rs. 2

MO DERATE CUSTOM ERS CO NSERVAT IVE CUSTOM ER

Bonds Stocks Short term

Bonds Stocks Short term

20%

50%

30%

25%

25%

50%

CO NCLU SIO N

Whether a person is aggressive, moderate or conservative the determining factor is the investment he makes in the different sectors. If he is investing more in the stock market that means he is willing to take risks and thus is an aggressive customer. A moderate customer invests partially in stocks and partially in bonds and short term. While a conservative person invests very less in the stock market. Many people are unaware of the category they fall in. Like they think that they are aggressive but do not invest that amount in stock market, then it is important to tell them the right mix that they should have if they want to be aggressive. If a person is considers himself o be conservative then he should invest more in bonds as they guarantee fixed return.

RISK TAKING ABILITIES OF PEOPLE

LOSS WILLING TO INCUR ON INVESTMENT OF Rs.

Above 100

0Rs. 10-20 4%

11%

Rs. 5-10

14

%

ZERO 36%

Rs. 1-535%

Conclusion

While classifying people under the three categories, it was seen that most of the customers were conservative i.e. they were not willing to take any risk when it comes to investment. Only 4% people were aggressive and ready to take risks to maximize theirreturn.

40 | P a g e

DEMAT ACCOUNT SALES

Along with classifying the customers into various categories the de-mat was also pitched to them especially to those customers who lacked in their investment in the stock market and did not had the right combination of investments.

COMPARITIVE ANALYSIS

Ede lw eiss Sh ar e k han Religa r e In d ia

Info l i n e

Moti l al Os w al

IC IC I Direct

In d ia b ul l s

Brokerage Competitive competitive nominal high nominal High low

Services Premium Good average average good Very good average

Online trading

Yes

with excellentSoftware

Yes

with the mostpreferred

yes yes yes Yes

but noStreaming

Real-time quotes

Research Excellent good average average average Very good average

Brand image

Not good inKolkata

Very good

average average good Excellentsatisfactory

AMC Free

for the 1st

year, 562

Rs.400 Rs.325 Rs.300 Rs.325 Rs.500 Rs.500

Demat account charges

Free accountopening

Rs.725 Rs.300 Rs.550 Rs.425AroundRs.750

Rs.500

Exposure 3-4 times 5 times 5-6times 3-4times 6-7times 3-5 times 6-7times

INTE RPRETATIO N

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.

41 | P a g e

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 beatEdelweiss on that

The only point that is not in the favor 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 Sharekhan 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. Sharekhan is customer friendly and its terminal is considered very fast. So Edelweiss needs to focus on these two competitors.

COMPARITIVE MARKET SHARE OF EDELWEISS

15.81

6.93

12.71 6

13.67

17.19

27.69

Edelweiss Sharekhan ICICI Motilal Oswal

HDFC Indiabulls others

ICICI is the market leader followed by Sharekhan. Edelweiss holds 6% of the marketshare and shows a bright potential of growth.

42 | P a g e

2

7

SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS

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

Internet Broker Direct from the company

20% 5%

75%

Conclusion

When it comes to channels of buying a financial product most of the people prefer to buy it from a broker as it is the most trusted source and they have a good market and product knowledge. Many people like to inquire themselves directly from the company while 5% of the people look for internet as a medium. This graph shows that broking business is a profitable one as it attracts the large volume of potential customers

Q. What is your preferable tool of investment?

All Values In Percentage Term

40

3635

30

2522

20

15

10

5 55

0

Bank Deposit Real estate

Derivativeinstrument

mutual fund

Gold andbullion

Equity shares

Conclusion- When it comes to investing one’s income 36% of the people prefer to be onthe 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

43 | P a g e

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.

Q. How did you come to know about Edelweiss?

40

35

30

25

20

15

10

12.75

20.3

27.6

39.4

0

Internet

Print and electronic media

reference group By chance

Conclusion

The above responses shows that most of the people came to know about Edelweiss by chance 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.

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

All figures are in percentage term

70

60

50

40

6430

20 36

10

0Yes No

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

44 | P a g e

not aware of all the products, while a large chunk of respondents had never heard ofEdelweiss.

Q. Have you used any Edelweiss financial product?

90

80

70

60

50

40 78.44

30

20

10 21.56

0

Yes No

In response to the question 78.44% 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

Q. Which Edelweiss product are you using now?

10% 5% mutual fund

40% De-mat

45% debentures

other(structured pro

duct)

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 21.56% of people using Edelweissproducts nearly 50% prefer equity shares.

45 | P a g e

5

Q. Best company according to the respondents

3530

30

25 21.44

20

15 1210

5

107.56

64 4

0

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.

Q. Factors affecting the choice of a company

All figures are in percentage term

30 28

25 23

20

20 18

15

10

5 3.5

6.898

0

BrandImage

Innovation Services Proximity

withre sidence

Dealer

support

Advance d BrokerageR & D

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.

46 | P a g e

Q. Possible sources searched for financial product information

35%

30%

32%

25%

20%

15%

10%

19%

21%11%

17%

5%

0%

Conclusion

Most of the respondents 32% trust their friend’s advice when it comes to financial product information especially in stock market. They trust on their experience with the company and act accordingly.

ANALYSIS O F THE QU ESTIO NNAIRE FO R EXISTING CLIEN TS

Association with the company6 months 1 year 2 years more than 2 years

8%

11%

43%

38%

47 | P a g e

Conclusion

Most of the customers in Kolkata are newly acquired as the company is new.

Satisfaction level of the customers

50

45

40

35

30

25 4920

3215

10

5 11 8

0

Extremely satisfied

satisfied neutral dissatisfied

Conclusion

49% of the customers are satisfied and 8% dissatisfied. The company needs to work on these customers and minimize their dissatisfaction.

Expectations of the customer

s

reduction in brokerage

improved service qualitymore tips customer friendly norms

22%34%

13%

31%

Conclusion

Most of the customers want the brokerage to be reduced and services to be improved.

48 | P a g e

`ANALYSIS OF QUESTIONNAIRE FOR DORMANT CLIENTS

Reason for disassociation

Liquidity crisis Alternate brokerage firmlost faith in capital market temporary breaks

11%7%

56%26%

Conclusion

Because of the present turmoil in the stock market most of the people have taken temporary breaks and are not trading, While 7% of the people have found alternate broking houses.

49 | P a g e

Attractive features of the competitorslow brokerage proximity to residence trained people in desk good system support good research

3%

32%43%

10%

12%

Conclusion

Low brokerage is what attracts most of the customers. Besides Edelweiss needs to improve its quality of service.

Returning back

6 months-1year 2 year 2years and

more never

5% 8%

14%

73%

Conclusion

8% of the customers say that they will never return back.

50 | P a g e

F I ND I N G S

Various aspects of selling strategy of Edelweiss- Selling strategy adopted by Edelweiss is Relationship strategy, Mix of product centered and client centered strategy . Besides analysis of the sales management process of the company has been done. The method of approach adopted by salespersons to sell Edelweiss products has been covered and the selling skills required have been found out. Moreover attributes of the selling strategy of the company have been revealed.

Various aspects of the Distribution strategy of the company- under this the findings are- Role of distribution channels, Various distribution channels of the company, Innovative approach in distribution channel, Revealing the distribution channel strategy of Edelweiss based on customer behavior

Various aspects of Customer Relationship management- under this the CRM strategy of the company has been covered, Characteristics of services marketing Difference between the ways of catering to HNWIs and Retail clients

Marketing strategy of Edelweiss in Kolkata- As the company is entering intoretail segment so the company’s new marketing strategy has been found out

Opportunities and challenges before the company- The various aspects of it has been found out in this report

Competitor analysis- various competitors of the company have been found out to know the position of Edelweiss and help it formulate the strategies accordingly

Risk Taking Ability- The risk taking ability of people decrease with an increasing age, people take more risks when they are young

Preferred channel for buying a financial product- Brokers- From theanalysis of the questionnaires it was found out that brokers are the preferred channel for buying a financial product

Preferred tool of investment by the customers – The preferred tool of investment was found out to be deposits as they have less risk

Awareness about the products of Edelweiss- It was found that people are not aware of Edelweiss in Kolkata that much as about its competitor companies

Popularity of the Edelweiss products- Among the Edelweiss products equity is the most preferred investment option

Factors affecting the choice of a company- Brand image and Brokerage play a vital role when it comes to the choice of a company

Reliable source of financial information-People consider their friends to be agood medium when it comes to knowing about financial products.

Satisfaction level of the customers- Majority of the Edelweiss customers are satisfied from the service provided by the company.

Expectations of the customers- Customers expect the company to improve itsservice.

Competitive advantage of Edelweiss over its rivals- Edelweiss’ competitive advantage is its research and development department and online trading platform that is user friendly.

Sales promotional strategy adopted by Edelweiss during the financialturmoil-The company is going for aggressive advertisement campaign and putting hoardings all over the place to create awareness.

51 | P a g e

Customer base of Edelweiss- The customer base of Edelweiss is basically of institutional clients

The findings are shown in detail in the analysis of the graphs and findings in the main text.

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.

R E C O M M E ND ATI O N S

Make the complaint process and complaint redressal process easy so that there is a scope of improvement

Increase two way communications between the company and the client

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 majorrole when it comes to taking decision about a company

The company needs to go for aggressive advertisement campaign The company should leverage on its research and aggressively use it to promote the

products Special training about company products to sales team so that they create

awareness among the people Edelweiss should leverage its competence not only for HNWIs but also for retail

and corporate clients

Bring student plan to attract the student especially from Engineering Medical and MBA field to capture customer before others.

52 | P a g e

RE FE RE NCE S

www . e d elca p. com www . ns e i n d i a. com www . e d el weiss. in www . g o o g le . com www . w i k e p e d i a. com Valuable insight provided by the company guide and the faculty guide

53 | P a g e

QU ESTIO NNAIRE

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. Annual Income

a) > 3 lakh b) 3 lakh- 5lakh

c) 5 lakh- 7 lakh d) 7 lakh and above

2. 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 f) others, please specify

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

a) Internet b) Broker

c) Direct from the company d) others, please specify

4. 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

5. 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

54 | P a g e

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. How long have you been associated with Edelweiss?

a) Less than 1 month b) 1month-3month

c) 6-12 months d) more than 1 year

10. Evaluate the performance of following firms by ranking them on a scale inascending order

ICICI direct.com

Share khan

Motilal oswal

HDFC securities

Edelweiss

India Infoline

Religare

India bulls

5paise.com

11. Please indicate the level of importance regarding your decision factor in buying a financial product in the following scales: 1-not important 5-extremelyimportant

1 2 3 4 5Reputation of the companyInnovative productsService of the firmProximity of firm with residence/officeDealer support and guidanceAdvanced research & development department

55 | P a g e

12. Please rate the overall performance of Edelweiss on following scales

a) Extremely satisfied b) Satisfied

c) Neutral d) less satisfied

e) Dissatisfied

13. Will you recommend Edelweiss products to your friends/family?

a) Yes b) no

14. If currently you are not using Edelweiss products and edelweiss further enhances its products/services by adding your desirable features, will you buy it?

a) Yes b) no

15. Are you satisfied with Edelweiss’ current services in sales and distribution?

a) Yes b) no

16. What is your opinion about selling strategy of Edelweiss?

a) Excellent b) Above average

c) Average d) below average

17. In the current financial turmoil according to you what should be the sales promotional strategy for Edelweiss?

a) Point of purchase display b) Aggressive add campaign in radio and television

c) Through leaflet d) telemarketing

e) Personal selling

18. According to you what is the competitive advantage of Edelweiss over its rivals?

a) Minimum cost b) Our quality of service

c) Quality of service providing persons d) easy availability of service

e) Diversified product portfolio f) Good research input

56 | P a g e

19. Personal Information

(i) Name:

………………………………………………………………………………..

(ii) Age: less than 25 25-35 35-45 45-55 more than 55

(iii) Gender: male female

(iv) Marital status: Married single

(v) Educational Qualifications: 10th pass 12th pass graduate post

graduate

(vi) Occupation: service business profess ion other, please specify

Phone no: Email id:

Signature:

57 | P a g e

FOR DORMANT CLIENTS QU ESTIO NNAIRE

1. Why you are not associated with Edelweiss?

a) Liquidity crisis b) lost faith in capital

market c) Alternate brokerage firm d) temporary breaks

2. If you are associated with other firm, what are the features that attract you?

a) Low brokerage b) Good system support

c) Proximity to residence d) Research input

e) Trained people in the desk

3. What according to you is the weakness of Edelweiss?

a) Low brand awareness b) brokerage

c) Services d) others, please specify

4. You prefer to return back with Edelweiss in

a) 6 months b) 1 year

c) 2 years and more d) never

5. Which sector’s performance is best?

a) Equity b) mutual fund

c) Insurance d) portfolio

6. Do you support the transition of Edelweiss from niche to mass market?

a) Yes b) No

58 | P a g e

7. In which product did you faced the problem?

a) Equity and Derivatives b) Commodity

c) Portfolio d) E-broking

e) Any others, please specify……………………………………………………...........

8. Any suggestion that you would like to put forward by which Edelweiss can improve on its services

…………………………………………………………………………………………………………………………………………………………………………………………………….

9. Personal Information

(i)Name:

(ii) Age: less than 25 25-35 35-45 45-55 more than 55

(iii) Gender: male female

(iv) Marital status: Married single

(v) Educational Qualification 10th pass 12th pass graduate post graduate

(v) Occupation: service business profess ion other, please specify

(vi)Contact Details:

Phone no: Email id:

Signature:

59 | P a g e

EX ISTING CLIEN TS

QU ESTIO NNAIRE

1. Since how long you have been associated with Edelweiss?

a) 6 months b) 1 year

c) 2 years d) more than 2 years

2. What are the products that you have opted from Edelweiss?

a) Equity b) Dematerialization

c) Insurance c) Portfolio management

e) Any other. (Please specify)………………………………………………….

3. As a customer, mention your level of satisfaction derived from Edelweiss. a)

Excellent b) Very good

c) Good d) below average

e) Poor

4. In current global turmoil scenario, what are your expectations from Edelweiss?

a) Reduction in brokerage b) Providing more tips

c) Improvement in service quality d) providing more lenient and flexible

Customer friendly norms

60 | P a g e

5. You would recommend Edelweiss to your

a) Family b) friends

c) Anyone without hesitancy d) no one

6. Your recommendation to make Edelweiss better?

……………………………………………………………………………………………….

7. Personal Information

(i)Name: ……………………………………………………………………………..

(ii) Age: less than 25 25-35 35-45 45-55 more than 55

(iii) Gender: male female

(iv) The marital status: Married single

(v) Educational 10th 12th graduate post graduate Qualification:

(vi) Occupation: service business profession other, please specify

(vii) Contact Details:

Phone no: Email id:

Signature:

61 | P a g e