Service Marketing Mix In Sub-Broking Firm

PRESENTED BYSURAVI PRADHAN

roll no. 74EIILM

Business modelEXCHANGE

Depositories participant

Sub broker

Client

Depositories participant

Sub broker

Client

Product• Demat account opening

• Stock broking services

• Commodity trading service

• Currency trading service

• Market research and analysis, Trading tips to customers

• IPO Issue and registration

• Wealth management and portfolio services

• FOLLOWING PENETRATING PRICING

PriceStock Broker Fees Brokerage Charges Transaction Charges•Account Opening Charge Rs 750 •Demat Account AMC Rs 400•Minimum Brokerage Rs 16 per scrip

•Equity Delivery0.50%•Equity Intraday 0.10%•Equity Future 0.10%•Equity Options Rs 100 per lot•Currency Futures 0.10%•Currency Options Rs 30 per lot•Commodity0.10%

•Equity Delivery 0.00325%•Equity Intraday 0.00325%•Equity Future 0.0025%•Equity Options 0.055% on Premium•Currency Futures 0.0025%•Currency Options 0.055% on Premium•Commodity 0.003%

Following penetrating pricing as huge completion in the market as well as every sub broking firm is offering similar product

place• An office will be set up in prime location in Kolkata• Phone calls and messages to the potential as well

as the existing clients about the market movement and convince to trade

• Doorstep service within limited area for opening up Demat Account and other services

• Broker’s website and mobile app of the handling for order placement and transaction

• Process trade with pre-defined criteria fixed by the client

Place

promotion• Phone calls, messages and emails to approach

clients References• Social networking site pages and post• Flash advertisement on websites• Advertising in business newspapers/ magazines

and TV channels• Providing demo trading classes to the potential

investors• Inviting students from different business schools

for summer internship

Promotion

• Demat account and other forms• Letter of Authorization• Contract note• Share certificate• Email and message containing transaction details

Physical Evidence

ProcessApproach

clientOpen Demat and trading

account

Minimum margin money amount given

by cheque

Provide trading and

investment tips

Order placement and

execution

Payment made by the client

(inclusive Brokerage and

transaction fees)

Notification along with

share certificate and contract note sent to client

Skilled people to approach new potential traders and investors

Highly skilled people required to assess the client’s requirement and develop portfolio

Technical analyst to predict the market movement and provide trading and investment tips

Maintain relationship with the customer & satisfy them by making phone calls telling about the market movement

People

Security deposit with broker 50,000Registration fees to exchange (non-refundable) 10,000For currency trading 5,0005 computer and TV 55,000Total fixed cost(a) 1,20,000Total fixed cost per month [b=(a)/12] 10,000Electricity charges per month 3,000Rent per month 5,000Broadband connection per month 1,000Phone bill per month 1,000Flash advertisement per month (considering only in weekends) 4,000Total variable cost per month(c) 14,000Total cost in per month[b+c] 24,000

Cost Estimation

*Starting a business as sole proprietor or partnership therefore excluding salary part

Revenue EstimationOpening up demat account (50:50 agreement with broker) 350

Brokerage fees (50:50 agreement with broker)estimation based on trade worth rs. 1,00,000Eq delivery 250

Eq intraday 50

Eq future 50

Eq options 100

Currency future 50

Currency option 30

Commodity trading 50

*considering only income from trading

BEP analysis

800,000

1,600,000

2,400,000

3,200,000

4,000,000

4,800,000

5,600,000 -

10,000

20,000

30,000

40,000

50,000

60,000

fixed costvariabletotal costtotal revenue

BEP volume rs.25,68,000

THANK YOU