Professional Documents
Culture Documents
FINAL
REPORT
A REPORT
ON
COURSE: PGPIB
BATCH: 03
BY:
SUSNAT PRADHAN
(Faculty Guide)
(Company Guide)
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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.
Date:
Place: Kolkata
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AUTHORIZATION
I, Susnat Pradhan hereby declare that the project titled Sales an d Distribution strategy of
Edelweiss and its opportunities and challenges 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:
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ACKNOWLEDGEMENT
No task is a single mans 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
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TABLE OF CONTENTS
1. Executive Summary 6
3. Purpose 9
4. Scope 9
5. Limitations 10
6. Methodology 11
8. Introduction to Edelweiss 15
9. Main Text
Competitor Analysis 41
Questionnaires analysis 43
12. Conclusion 52
13. Recommendations 52
14. References 53
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EXECUTIVE SUMMARY
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.
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 P ro d u c t s a n d
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 r a c k i n g t h e 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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Objective of the project-
Competitors analysis and knowing the opportunities and challenges before the
company.
Methodology-
Primary data collection- primary data was collected through questionnaire design
and conducting a survey.
Limitations-
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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 todays 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 companys products and services over
competitors offerings and recommend others to buy. Moreover it costs less to retain
customers than to c o m p e t e for new c u s t o m e r s . My j o b p r o f i l e 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 existing 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 customers 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 companys 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 companys 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. 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 companys
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. 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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PURPOSE
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 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
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 decide
companys 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.
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LIMITATIOS
Some aspects might not be covered due to time constraint
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
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
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METHODOLOGY
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 te n w ee ks , 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.
Questionnaire Design
The questions were designed in an easily understandable way that the respondents may not
have any difficulty in answering them.
Sampling Unit:
The respondents who were asked to fill out questionnaires are the sampling units.
Sampling Area:
The area of the research was area of Kolkata and East & West Midnapore, India.
Interpretation
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.
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INTRODUCTION TO THE INDIAN STOCK MARKET
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 Jul
1865, 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.
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-
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Incorporation of NSE- NSE was incorporated in Nov 1992 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 e m e n t p r o c e s s , T h e Depositories A c t 1 9 9 6 w a s p a s s e d t h a t
allowed for dematerialization (and dematerialization) of securities in
depositories and the transfer of securities through electronic book entry. The
National Securities D e p o s i t o r y L i m i t e d ( NSDL) s e t u p b y l e a d i n g
f i n a n c i a 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 MARKETS
Cash market (spot market) largest traded, the spot market or cash market is a
commodities or securities market in which goods are sold for cash and delivered
immediately.
Derivatives market 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.
Debt market - The bond market (also known as the debt, credit, or fixed income
market) is a financial market where participants buy and sell debt securities.
Commodities ma r ke t a f te r commodit ies ma rk et , C o m m o d i t y m a r k e t s
a r e markets where raw or primary products are exchanged. These raw commodities
are traded on regulated commodities exchanges, in which they are bought and sold
in standardized contracts.
NEED OF A BROKER
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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 individual
membership and corporate membership.
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 NSE
(composition of 50 stocks) and BSE (Composition of 30 stocks).
Exchange-wise Stock Brokers Registered with SEBI (As on March 31, 2008)
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AN INTRODUCTION TO EDELWEISS
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
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
Website- www.edelcap.com,
www.edelweiss.in
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HIGHLIGHTS
The companys Equities Broking division has now expanded to include 215
stocks in 19 sectors accounting for 70 percent of market capitalization
Alternate Asset Managements 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 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
It is empanelled with over 40 leading FIIs, FIs, Mutual Funds, Banks and
Insurance companies
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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 a n d 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
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).
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.
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THE PRODUCTS AND SERVICES OFFERED BY EDELWEISS ARE AS FOLLOWS:-
SERVICES
Capital
based
Agenc
y based
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.
PRODUCTS
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 brokers 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.
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
Initial Public Offering (IPO) - This product invites public to participate in the
bidding process.
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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 doesnt 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, th ey 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.
22%
78%
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GROWTH STRATEGY
The Companys 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.
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MAIN TEXT
FINDINGS
Sales and distribution management constitutes one of the most important areas for
customer satisfaction. Sales management has been defined as the management of a firms
personal selling functions while distribution is an indirect function. Therefore integration is
required between sales and distribution functions.
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.
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The strategy of Edelweiss is a mix of product centered and client centered
strategy.
First a strategic sales program is made keeping in mind the companys 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 Identify Make Give Ensure
direct the appointme suitable knowledge
selling customer nt demo about
process with &pitch product
customer
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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
Customer Benefit Approach- they convey to customers the benefits they will get
after getting associated with Edelweiss, like online platform and local dealer
support.
INTER
EST
INTEREST Maintain the attention by creating interest
DESIRE
ACTIO
ACTION
N
DESIRE
Create desire in customers mind to buy the
product
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SELLING SKILLS - Talking about the skills that a salesperson should posses, they are as
follows:-
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.
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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(4) DISTRIBUTION STRATEGY
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Role of distribution channels
Finalizing the set of activities that are required to be performed to achieve the
channel objectives
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.
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H
distribution
development
H
L
Category development
H- High L-
low
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
D. Corporate Accounts
E. Free Accounts
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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.
Reporting Hierarchy:
Regional
Head
Area Sales
Manager
Team leaders
Fixed cost
agents
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 Selling Agents (DSA)- DSAs are working for the company but they have no
profit participation. They are given commission on the basis of account clients under
Edelweiss. The DSAs 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 DSAs and they have no connection with the company.
Corporate Accounts- 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 companys sales.
Free Accounts- The rediffmail users who registered in our site get free account(post paid) and
one month free trade.
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(6) CHANNEL MANAGEMENT TASKS
Design of Ex an
Ex-ante
channel phase
structure
Channel
objectives
Activity
fnalization Motivating the channel
members Ex Ex-poste
po
Activity
organization phase
Developing
Policy
guidelines
m
e
m
b
e
r
s
Edelweiss Retail stores are an approach to shift from traditional marketing channels
and this can give the competitive edge and is the differentiating factor.
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(9) A SHORT COMPARISON OF CONSUMER PRODUCTS TO THE
FINANCIAL PRODUCTS WHEN IT COMES TO SALES AND DISTRIBUTION
The financial services are different from the consumer products offered. If we make a
comparative analysis following points can be highlighted:-
Interaction with the customer- 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
Buying Pattern- Many consumer products are taken by the customer on an
impulse while taking a financial product involves a long thought process.
FINANCIAL SERVICES
There are number of factors which make the financial services different from
physical goods. The major characteristics of financial services are Intangibility,
Lack of ownership, Inseparability, Perishability, Heterogeneity, Fiduciary
responsibility, Long term.
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SERVICES MARKETING TRIANGLE
FIRM
EMPLOYEES CUSTOMERS
Interactive Marketing
Coming to the Marketing Mix generally there are 4Ps (PRODUCT, PRICE,
PLACE, PROMOTION) but when it comes to services marketing 3ps 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.
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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).
Need of CRM
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MODEL FOR CRM MARKETING
Special rocati
facilities/service
s on
Trans
Information
sharing
paren
cy
Share values
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
RETAIL CLIENTS
HNWIs RETAIL
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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.
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 dont 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 of
3lakhs and above. This ensures that they are able to invest in the stock market
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.
Flank attack is the strategy adopted by Edelweiss to attack its competitors. In this
strategy the company attacks on the competitors weak point. Here the company is
attacking the competitors on the basis of brokerage and research.
EDELWEISS IN NEWS
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 the
investment 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 Indias financial services industry.
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 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
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
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
METHODOLOGY
ResearchMethodology
Research Methodology
Questionnaire
Questionnaire Telephonically
Suggesting
Suggesting suitable De-mat
De-mat account sale
Telephonically
suitable products account sales
products
SalesSales
& & ExistinExisting DormanDormant
Distribution g Customers t Customers
distribution
custome custome
rs rs
KEY FINDINGS
The survey involved classifying the customers into three categories on the basis of
their risk appetite following the Jacobs Model. According to this model
customers can be classified into three classes on the basis of their investment
preference.
AGGRESSIVE
CUSTOMERS:
10% 25%
6
5
%
Bonds Stocks
Short term
39 | P a g e
MODERATE CUSTOMERS CONSERVATIVE CUSTOMER
Bonds Stocks Bonds Stocks Short term
Short term
20% 3 2
0 5 50%
% %
50%
2
5
%
CONCLUSION
RISK TAKING
ABILITIES OF
PEOPLE
5
-
1
0
1
4
%
Rs. 1-5
35%
C
o
n
c
l
u
s
i
o
n
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
Edelweiss Sharekhan Religare Motila ICICI Indiabulls
India l Direc
Infoline Oswal t
for the
1st
year,
562
INTERPRETATION
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 beat
Edelweiss 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.
6.93
27.69
13.67
42 | P a g e
SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS
5%
20%
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
30
25
25
22
20
15
10
7
5 5
5
0
Bank Deposit Real estate mutual fund Equity shares
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.
40
35
30
2
5
39.4
2
0
2
1 2 7.
5
0. 6
1 3
0
12.7
5
0
Internet reference group By chance
Pri
nt
an
d
ele
ctr
oni
c
me
dia
C
o
n
c
l
u
s
i
o
n
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?
70
60
50
40
64
30
20 36
10
0
Yes 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 of
Edelweiss.
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
5% mutual fund
10%
40% De-mat
45% debentures
o
t
h
e
r
(
s
t
r
u
c
t
u
r
e
d
p
r
o
d
u
c
t
)
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 Edelweiss
products nearly 50% prefer equity shares.
45 | P a g e
Q. Best company according to the respondents
35
30
30
25
21.44
20
15
10
7
12 . 5
1 5
0 6
5
6
4
4
0
C
o
n
c
l
u
s
i
o
n
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.
25
23
2
0
20
18
15
1
0 8
6.89
3.5
0
Brand Innovation Services Deal Advance d Brokerage
Image Proximity er R &D
with suppo
re sidence rt
C
o
n
c
l
u
s
i
o
n
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%
32%
30%
25%
20% 19%
17%
15%
21% 1
10% 1
%
5%
0%
Conclusion
Most of the respondents 32% trust their friends advice when it comes
to financial product information especially in stock market. They trust on
their experience with the company and act accordingly.
8
%
11%
43%
38%
47 | P a g e
Conclusion
Most of the customers in Kolkata are newly acquired as the company is new.
50
45
40
35
30
25 49
20
15
32
10
5
11 8
0
Ext satisfied neutral dissatisfied
re
m
el
y
sa
ti
sfi
e
d
Conclusion
Expecta
tions of
the
custom
ers
reduction in brokerage
22%
34%
13%
3
1
%
Conclusion
48 | P a g e
`ANALYSIS OF QUESTIONNAIRE FOR DORMANT CLIENTS
11%
7%
56%
26%
C
o
n
c
l
u
s
i
o
n
49 | P a g e
Atractive features of the competitors
low brokerage proximity to residence trained people in desk
good system support good research
3%
32%
43%
10%
12%
Conclusion
R
e
t
u
r
n
i
n
g
b
a
c
k
6 months-1year 2 year
2years and
more never
5%
8%
14%
7
3
%
Conclusion
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.
RECOMMENDATIONS
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 major
role 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
REFERENCES
www.edelcap.com
www.nseindia.com
www.edelweiss.in
www.google.com
www.wikepedia.com
Valuable insight provided by the company guide and the faculty guide
53 | P a g e
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. Annual Income
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
3. Through which one of the channels do you usually buy a financial product?
a) Internet b) Broker
54 | P a g e
7. Have you used any Edelweiss Financial products?
a) Yes b) no
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-extremely
important
1 2 3 4 5
Reputation of the company
Innovative products
Service of the firm
Proximity of firm with residence/office
Dealer support and guidance
Advanced research & development department
55 | P a g e
12. Please rate the overall performance of Edelweiss on following scales
e) Dissatisfied
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
17. In the current financial turmoil according to you what should be the sales
promotional strategy for Edelweiss?
e) Personal selling
18. According to you what is the competitive advantage of Edelweiss over its
rivals?
56 | P a g e
19. Personal Information
(i) Name: ..
graduate
Signature:
57 | P a g e
FOR DORMANT CLIENTS
QUESTIONNAIRE
2. If you are associated with other firm, what are the features that attract you?
a) 6 months b) 1 year
c) Insurance d) portfolio
a) Yes b) No
58 | P a g e
7. In which product did you faced the problem?
c) Portfolio d) E-broking
8. Any suggestion that you would like to put forward by which Edelweiss can improve on
its services
9. Personal Information
(i)Name:
(v) Educational Qualification 10th pass 12th pass graduate post graduate
(vi)Contact Details:
Signature:
59 | P a g e
EXISTING CLIENTS
QUESTIONNAIRE
a) 6 months b) 1 year
2. What are the products that you have opted from Edelweiss?
a) Equity b) Dematerialization
e) Poor
4. In current global turmoil scenario, what are your expectations from Edelweiss?
60 | P a g e
5. You would recommend Edelweiss to your
a) Family b) friends
7. Personal Information
(i)Name: ..
(v) Educational 10 th
12th graduate post graduate
Qualification:
Signature:
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