INTRODUCTION

INTRODUCTION OF THE TOPIC

1

The topic is to study the consumer preference towards investment in stock market.

DEMAT A/C is a pool of various scripts and securities, where as online trading A/C is a

tool of purchasing/ selling of shares or scripts online. These scripts are then transferred to

DP i.e. Depository account after three days.

This topic includes the practical experience of selling company product that is followed

by studying the consumer preference or interest towards share market. This is a market,

which is uncertain some time it gives huge profit and also vice versa; it depends up on the

investment customer made. This is a better option to have better returns on the invest-

ments then investing in banks, mutual fund or bonds et. But risk is high in this case.

This product offers customer two type of investment option INTRADAY and DELIV-

ERY both has there own benefits and limitation but a better way to have more returns on

investment. Intraday means investing in share market for a day i.e. purchasing and selling

of the share in one day. Delivery is purchasing share and selling those shares next day. A

strategy that focuses on developing a unique long-run competitive position in the market

by assessing consumer needs and the firm's potential for gaining a competitive advan-

tage.A business’ approach to marketing its products/ services expresses in broad terms,

which forms the basis for developing a marketing plan.

Marketing starts with market research, in which needs and attitudes and competitors'

products are assessed, and continues through into advertising, promotion, distribution,

and, where applicable, customer servicing and repair, packaging, and sales and distribu-

tion.

The broad marketing thinking that will enable an organization to develop its products and

marketing mixes in the right direction, consistent with overall corporate objectives.

OBJECTIVE OF THE STUDY

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1) Main objective

To find what marketing strategies is adopt by sharekhan for promotion

of the product & creating the customer.

2) Specific Objective

A) Comparison between sharekhan & its competitors;

B) Marketing of the product;

C) Why invest through sharekhan ltd.;

D) Motivating customer for trading;

JOB DISCRIPTION

The company placed me as a Summer Trainee. I have been handling the

Following responsibilities:

Ø My job profile is to coordinate the team and also help them to sale the product and

also help them in field.

Ø My job profile is to generate the lead by cold calling.

Ø My job profile is to understand customers’ needs and advising them to make a

portfolio as per their investment.

Ø My job profile is to do sales promotion through e-mails, canopies, making cold

calling, distributing pamphlets and etc.

Ø My job profile is to convince customer for investment in Commodity.

AREA ASSIGNED

I covered areas Delhi (pitampura)

TARGET MARKET

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Ø Different properties dealers.

Ø Charted accountants.

Ø Lawyers

Ø Travel agencies

Ø Transport business

Ø House wives

Ø Businessmen

Ø Corporate employees etc.

DAY TO DAY JOB EXPERIENCE

· Reporting time: 9.30 AM

· Fixing appointment with clients.

· Visit clients place.

· Demonstrate the product on Internet to the client.

· Completing the formalities like filling the application form and documentation.

· Cold calling.

4

SHAREKHAN LTD.

BACKGROUND OF SHAREKHAN LTD.

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Sharekhan is one of the leading retail brokerage of SSKI GROUP, which is running suc-

cessfully since 1922 in the country. It is the retail broking arm of the Mumbai-based

SSKI Group, which has over eight decades of experience in the stock broking business.

Sharekhan offers its customers a wide range of equity related services including trade ex-

ecution on BSE, NSE, Derivatives, depository services, online trading, investment advice

etc.

The firm’s online trading and investment site- www.sharekhan.com was launched on Feb

8, 2000. The site gives access to superior content and transaction facility to retail cus-

tomers across the country. Known for its jargon-free, investor friendly language and high

quality research, the site has a registered base of over one-lakh customers. The number of

trading members currently stands at over 3 Lacs. While online trading currently accounts

for just over 2 per cent of the daily trading in stocks in India, share khan alone accounts

for 32 percent off the volume traded online.

The content-rich and research oriented portal has stood out among its contemporaries be-

cause of its steadfast dedication to offering customers best-of-breed technology and supe-

rior market information. The objective has been to let customers make informed deci-

sions and to simplify the process of investing in stocks.

On April 17, 2002 Share khan launched Speed Trade, a net-based executable application

that emulates the broker terminals along with host of other information relevant to the

Day Traders. This was for the first time that a net-based trading Pstation of this caliber

was offered to the traders. In the last six months Speed Trade has become a de facto stan-

dard for the Day Trading community over the net.

Share khan’s ground network includes over 588 centers in 170 cities in In-

dia, of which 32 are fully owned branches.

SSKI Group Companies

• SSKI Investor Services Ltd (Sharekhan)

• S.S. Kantilal Ishwarlal Securities

• SSKI Corporate Finance

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• I dream Productions

SSKI- CORPORATE STRUCTURE

SSKI INVESTOR SERVICES PVT. LTD.

SSKI AS AN INSTITUTIONAL BROKER

Serving institutional Investors- Domestic/ International

· In the Indian securities business since 1922………

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SSKI Securities Pvt. Ltd.

Morakhia Family Associates 100%

Retail broking arm of the group: - Shareholding pattern: 55.5%Morakhia family (promoters) 18.5% HSBC Private Equity India Fund Ltd. 18.5% First Carlyle Ventures, Mauritius 7.5% Intel Pacific Inc.

SSKI Corporate Finance Pvt. Ltd.Investment Banking arm of the group Shareholding pattern: 50.5% SSKI Securities Pvt. Ltd. 49.5% Morakhia family

· Our institutional Research team is rated as one of the best in the in-dustry.

· Rated 1st by Asia Money.

Sharekhan Business

1 Brokering business

2 White feathering house production

Vision:-

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From sharekhan.com to India’s largest chain of branded retail share

Shops

588 branded share shops across 170

cities in India

To be the best retail brokering Brand in the retail business of stock market.

Mission:-

To educate and empower the individual investor to make better investment decisions

through quality advice and superior service.

PRODUCTS OFFERED BY SHAREKHAN LTD.

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Share khan Ltd. Offers following products: -

1) CLASSIC ACCOUNT: -

This is a User Friendly Product, which allows the client to trade through websites www.

Sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers

to invest in stocks or who do not trade too frequently.

Features:-

· Integration of On-line trading, Saving Bank and Demat Account.

· Instant cash transfer facility against purchase & sale of shares.

· Competitive transaction charges.

· Instant order and trade confirmation by E-mail.

· Streaming Quotes.(Cash & Derivatives)

· Personalized market watch.

· Single screen interface for Cash and derivatives and more.

· Provision to enter price trigger and view the same online in market watch.

2) SPEEDTRADE ACCOUNT: -

SPEEDTRADE is an internet-based software application that enables you to buy and sell

in an instant.

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It is ideal for active traders and jobbers who transact frequently during day’s session to

capitalize on intra-day price movement.

Features:-

· Instant order Execution and Confirmation.

· Single screen trading terminal.(NSE)

· Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest calue etc.)

· Hot keys similar to brokers terminal.

· Alerts and reminders.

3) ONLINE IPO’s: -

Share khan is tie up with nine banks for online fund transferring i.e. HDFC, ICICI,

IDBI, CITI, Union Bank of India, oriental Bank of Commerce, INDUSIND, Yes Bank

and UTI bank for online money transfer. You can apply all the forthcoming IPO online

hasselfree, paperless and time saving work.

4) Mutual Fund Online: -

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You can apply to Mutual Funds of SBI, Birla, Sundaram, HDFC, central bank, re-

liance etc. With share khan hasselfree, paperless and time saving works.

Share khan help you to choose the right Mutual Funs for your investment by pro-

viding you information on Top Gainers/Losers, Schemes Comparison, Ranking of

Various MFs, NAV History of MFs and their performance.

5) Trade in Commodities.

6) Mutual Fund Advisory.

7) Portfolio Management Services.

SERVICES OFFER BY SHAREKHAN LTD .

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REASONS TO CHOOSE SHAREKHAN LTD.

Experience

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Research Based

Investment Advice

Training and

SeminarsInvestment and

Training Services

EQUITIES DERIVATIESCOMMODITIES

Technology Based

Investment Tools

Integrated Demat

Facility

SSKI has more than eight decades of trust and credibility in the Indian stock market. In

the Asia money broker’s poll held recently, SSKI won the ‘India’s best broking house for

2004’award. Ever since it launched Share khan as its retail broking division in February

2000, it has been providing institutional-level research and broking services to individual

investors.

Technology

With online trading account you can buy and sell shares in an instant from any PC with

an Internet connection. You will get access to our powerful online trading tools that will

help you take complete control over your investment in shares.

Accessibility

Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for

investors. These services are accessible through our centers across the country (over 588

locations in 170cities)over Internet (through the website www.sharekhan.com) as well

as over the Voice Tool.

Knowledge

In a business where the right information at the right time can translate into direct profits,

you get access to a wide range of information on our content-rich portal, share khan. You

will also get a useful set of knowledge-based tools that will empower you to take in-

formed decisions.

Convenience

You can call our Dial-N-Trade number to get investment advice and execute your trans-

actions.ithasdedicated call- center to provide this service via a toll free number 1800-22-

7500 & 1800-227050 from anywhere in India

Customer Services

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Our customer service team will assist you for any help that you need relating to transac-

tions, billing, demat and other queries. Our customer service can be contracted via a toll

free number, e-mail or live chat on www.sharekhan.com.

Investment Advice

Share khan has dedicated research teams of more than 30 people for fundamental and

technical research’s. Our analysts constantly track the pulse of the market and provide

timely investment advice toe you in the form of daily research emails, online chat, printed

reports and SMS on your mobile phone.

STOCK EXCHANGE MUMBAI

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Sharekhan is the retail broking arm of SSKI, an organization with more than

eight decades of trust & credibility in the stock market.

• Amongst pioneers of investment research in the Indian market

• In 1984 ventured into Institutional Broking & Corporate Finance.

• Leading domestic player in Indian institutional business

• Over US$ 5 billion of private equity deals

LITERATURE REVIEW

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GENERAL INTRODUCTION

DP (Depository Participants)

As an investor you open a securities account with a DP. DPs are attached to the deposito-

ries very much the same way as commercial banks are attached to RBI . All interactions

including account opening, dematerialization, transactions, pledge etc are done through

the DP.

Reasons to choose DP

You can select your DP to open a demat account just like you select a bank for opening a

savings account. Some of the important factors for selection of a DP can be:

Convenience: proximity to the office/residence, business hours.

Comfort: reputation of the DP, past association, range of services etc. Find out if the DP

is in a position to give the specific service you may need.

Cost: the service charges levied by DP and the service standard.

Dematerialization:-

The dematerialization system is an alternative to the physical existence of securities. In this

system securities are converted into the electronic form and deposited in a depository

account in the investors name.

In order to dematerialize certificates, an investor will have to first open an account with a

DP and then request for the dematerialization of certificates by filling up a Dematerializa-

tion Request Form (DRF), which is available with the DP, and submitting the same along

with the physical certificates. The investor has to ensure that before the certificates are

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handed over to the DP for demat, they are defaced by marking "Surrendered for Demateri-

alization" on the face of the certificates.

Procedure for selling dematerialized securities

The procedure for selling dematerialized securities in stock exchanges is similar to the

procedure for selling physical securities. Instead of delivering physical securities to the

broker, you instruct your DP to debit your account with the number of securities sold by

you and credit your broker's clearing account. This delivery instruction has to be given to

your DP using the delivery instruction booklet received from the DP at the time of open-

ing the account. The procedure for selling securities is given here below:

· Investor sells securities in any of the stock exchanges linked to NSDL through a

broker.

· Investor gives instruction to DP to debit his account and credit the broker's (clear-

ing member pool) account.

· Before the pay-in day, investor's broker gives instruction to his DP for delivery to

clearing corporation.

· The broker receives payment from the stock exchange (clearing corporation).

· The investor receives payment from the broker for the sale in the same manner

payment is received for a sale in the physical mode.

PROCESS ON ACCOUNT OPENING

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LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE DISAGREE

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

DOCUMENTS:

1) Photo ID Proof

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NO

2) Residence Proof (Permanent)

· Passport

· Pan Card

· Driving Licence

· Voter's ID

· Passport (valid)

· Voter's ID

· Driving Licence (valid)

· Bank Statement (latest)

· Telephone Bill (latest)

· Electricity Bill (lates)

· Ration Card

· Flat Maintanance Bill (latest)

· Insurance Policy (latest)

· Leave-Licence/Purchase Agreement

3) Residence Proof (Correspondence)

· Passport (valid)

· Voter's ID

· Driving Licence (valid)

· Bank Statement (latest)

· Telephone Bill (latest)

· Electricity Bill (lates)

· Ration Card

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· Flat Maintanance Bill (latest)

· Insurance Policy (latest)

· Leave-Licence/Purchase Agreement

4) Two Photographs (Passport size)

ACCOUNT OPPENING CHARGES:-

1 For classic account Cheque of Rs. 750/= In Favour of M/s S.S.Kantilal Ishwarlal Se-

curities Pvt. Ltd. or Rs. 500/= or 350/= in case of corporate offer.

Or

1 For Speedtrade Account Cheque of Rs. 1000/= In Favour of M/s S.S.Kantilal Ish-

warlal Securities Pvt. Ltd.

ACOUNT OPENING CHARGES COMPARISION

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Charge Classic Account Speedtrade Account

Account Open-

ing

Rs. 750/= Rs. 1000/=

* Refundable in case the brokrage is more than Rs. 500/= p.m.

*Taxes as per govt.

Depository Charges

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Account Opening Charges

Rs. NIL

Annual Maintenance Charges Rs. NIL first year

Rs. 300/= p.a. from second year onward

Brokerage: 0.03 % Plus Taxes for Each leg of Intra-day trade 0.30 % Plus Taxes for

trades resulting in delivery Minimum Brokerage Intra Day Per Share: 5 Paisa each

leg (buy or sell) for Intra-day Trades (For eg on a Rs 20 Scrip, brokerage @0.1% = 2 p,

but there is a min chargeable amt of 5 p).

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SHARKHAN SERVICES

Dial-N-Trade

Along with enabling access for your trade online, the CLASSIC and SPEEDTRADE

ACCOUNT also gives you our Dial-n-trade services. With this service, all you have to

do is dial our dedicated phone lines 1-800-22-7500.

IPO ON-Line

Can apply all the forthcoming IPO online hasselfree.

Research tips

Company provide 4-6 e-mails to there customers per day

Online trade in shares

Sharekhan customers can online trade through there computers, through Internet during

the market timings

Online fund transfer

We have tie up with seven banks for online fund transferring i.e. ICICI , HDFC, IDBI,

CITI, UBI, OBC, INDUSIND and UTI bank for online money transfer.

Ø Research Based Investment Advice

Ø Investment and Trading Services

Ø Training and Seminars

Ø Technology Based Investment Tools

Ø Integrated Demat Facility

Ø COUSTOMRE CAN TRADE IN

Equities, Derivative, Commodities

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CLOSURE OF ACCOUNT

1. CLOSURE ON CLIENT’S REQUEST

A DP can close a depository account on receipt of an application in the prescribed format.

The application should be made by the account holder or by all the joint-holders. An ac-

count can be closed only when there is no balance in the account. In case there is any bal-

ance in the account sought to be closed, the following steps are necessary.

(a) Re-materialization of all securities standing to the credit of the account at the time of

making the application for closure; or

(b) Transferring the balance to the credit of another account opened by the same account

holder(s) either with the same participant or with a different participant. Before closing

the account the DP should ensure that all pending transactions have been settled. The re-

quest for closure should be processed only after ensuring that there is unbalance lying in

the account.

2. CONSOLIDATION OF ACCOUNT

Some clients could have opened multiple accounts to dematerialize their shares held in

multiple combination and sequence of names. However, they may not need so many ac-

counts after they have dematerialized their shares and may want to bring all their share

holdings into one or fewer accounts. This can be achieved by using normal off market

transfer instruction.

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3.CLOSURE BY DP

The DP may also initiate closure of a client's account if the client has defaulted in per-

forming its obligations laid out in the client-participant agreement. The participant should

give sufficient notice to the client before initiating closure of his account. The notice

should clearly state the reasons for closure of account. The process of closing account in

such a case is the same that of client-initiated closure.

CLOSURE /SHIFTING OF CLEARING ACCOUNT

A clearing member may transfer its clearing account from one DP to another DP. For

this, simultaneously applications have to be made for closure of account to the earlier DP

and for opening of new clearing member account to the new DP. On receipt of the appli-

cation, the new DP forwards the application to the depository for approval and allotment

of a new CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens a

New clearing account and intimates the depository about the new client-ID. On receipt of

intimation from the new participant, the depository advises the old DP to close the ac-

count. The old DP then closes the account and intimates the clearing member. All payout

of securities, subsequent to closure of old clearing account, take place in the new account.

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REARSEARCH METHODOLOGY

REAEARCH METHODOLOGY

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Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with logic behind him. Why a research study has been undertaken, how a research

problem has been defined, in what way and why the hypothesis has been formulated,

what data have been collected and what particular method has been adopted, why particu-

lar technique of analyzing data has been used and a host of similar other questions are

usually answered when we talk of research methodology concerning a research problem

or study.

RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and

analysis of in a manner and aims to combine relevance to the research purpose with econ-

omy in procedure. In fact the research design is the conceptual structure within which re-

search I conducted. Research design is needed because it facilitates the smooth sailing of

the various research operations thereby making research as efficient as possible yielding

maximum information with minimal expenditure of effort, time and money.

I have adopted descriptive and conclusive research design. Descriptive research is those

studies, which are concerned with describing the characteristics of a particular individual

or a group. Since the aim is to obtain the accurate information about the customer in

terms of his interest towards investment in stock sector. I have used the techniques of

questioning customer in order to know their consumer behavior, their interests, their

needs and etc.

It is very important for the sales executive to study the mind of the customer so that the

personal visit would not be a waste of time, money and efforts.

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DATA SOURCES:

The researcher can gather primary data, secondary data or both. Secondary

data are data that were collected for another purpose and already exist somewhere. Pri-

mary data are data specially gathered for a specific purpose or for a specific research

project. When the needed data do not exist or are outdated, inaccurate, incomplete, or un-

reliable, the researcher will have to collect primary data. Most marketing research

projects involve some primary data collection.

PRIMARY DATA:

I have collected primary data through personal references;

LMS i.e. Leads management system of the company;

Customer references;

SECONDARY DATA:

The main source of information for the project was

Ø Weakly magazine;

Ø Telephone directory

Ø Used leads of the company;

Ø Leads of the other company; i.e. telephone list for tele calling;

CONTACT METHOD:

29

The marketing researchers have four choices to contact the respon-

dents:

ü Mail,

ü Telephone,

ü Personal and

ü Online. I chose the above techniques to reach to the customer in a

most convenient method.

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LIMITATIONS

· Lack of awareness of Sharekhan and stock market:

Since the area is not known before it takes lot of time in convincing people to start in-

vesting in shares primarily in IPO’s.

· Some people are comfortable with traditional system:

As people are doing trading from there respective brokers, they are quite comfortable

to trade via physical form of paper, they want to trade off line, i.e. through telephone

or etc.

· Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno savvy.

Also Internet penetration is poor in India.

· Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are

quite annoyed with the phone call.

· Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5-digit

phone number to wrong phone number, some people have registered to know about

their personal quarries. They are the unsatisfied clients of the company.

· Misleading concepts:

Some people think that as all the shares are in electronic form and they don’t have

any physical proof. Sometimes this leads to a great misconception of the entire

process.

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MARKETING STRATEGIES OF SHAREKHAN

Marketing strategy?

32

A strategy that focuses on developing a unique long-run competitive position in the mar-

ket by assessing consumer needs and the firm's potential for gaining a competitive advan-

tage.

· A business’ approach to marketing its products/ services expresses in broad terms,

which forms the basis for developing a marketing plan.

· Marketing starts with market research, in which needs and attitudes and competi-

tors' products are assessed, and continues through into advertising, promotion,

distribution, and, where applicable, customer servicing and repair, packaging,

and sales and distribution.

· The broad marketing thinking that will enable an organization to develop its prod-

ucts and marketing mixes in the right direction, consistent with overall corpo-

rate objectives.

MARKETING STRATEGIES OF THE COMPANY

v Tele Calling: -

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The company uses the tele calling/ phone calling to reach the

customer, which are interested. This is the most important technique to save time

and giving demo of the companies product through making call in order to know

the customer interest towards the product. This is the strategy with which one can

motivate customer to go for the product and etc.

v LMS:

It is leads management system which means leads are generated by

the customer who want to purchase the product of the company. Company pro-

vide facility to the customer on online to fill the registration form through which

the companies executives can provide more information to the customer.

v Yellow Pages:

Yellow pages are used to gather data for making calls so that cus-

tomer who did not fine time and are unaware of the product can know about the

product. Customers are given freedom to ask question related to the products this

is the technique used to increase the awareness of the company.

v Canopy’s:

This is the most important technique used by sharekhan securities to market its

product in different areas of the city, company put their canopies and customer

who are willing to know about the product come forward and provide best of their

knowledge. Besides this companies executives ask customer to fill the question-

nair that tells the company about the levels of brand awareness. It also increases

the product awareness because it is generally put at the crowdies places like near

main markets, cinema s, hotels, ATM or etc where people come in good numbers.

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v Direct Marketing

Sharekhan executive’s reaches to the does of the customer by

fixing appointments with the interested customer, they describe the details of the

product. Executive give demonstration of the products so that customer can un-

derstand better.

v Advertising:

Advertising is the most important tool of increasing awareness of

the product and this is the most widely used technique by the company to tell

about the new features and new lunch by giving briefing of the product.

Sharekhan use banners, distribution of pamphlets, and advertisement in newspa-

pers, magazines.

v References:

Sharekhan strategy is to satisfy the customer in terms of their need by

providing them timely services and knowledge about the trade in equities, mutual

funs by giving tips for investment advises through e-mails or toll free calls for this

purpose customers are provided relationship manager who give investment advise

and also make transaction on their behalf on demand. B satisfying customer exec-

utives ask their references that not only increase the awareness but also increase

the good will of the company.

v Competitiveness:

The company is innovative and uses the latest tech-

nology to improve the product to fulfill the demands of the customers. Sharekhan

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make it easy for the customer to make online transaction of shares. The company

is competitive in terms of the product price and facilities it offers to the customer.

v Internet:

Company provides detailed information about the products on Internet

so that customer can know about the product easily and completely.

UNIQUE OBJECTIVE OF THE COMPANY

• 200000+ retail customers being serviced through centralized call centre / web

solution

• 60 branches, semi branches servicing affluent/aggressive traders through highly

skilled financial advisors

• 250 independent investment managers/franchisees servicing 50000 highly valued

clients

• Strong advisory role through Fundamental & technical research

• New initiatives - Portfolio Management Services & Commodities trading.

• Dealing in mutual funds.

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COMPETITOR ANALYSIS

5PAISE.COM

Company Background

Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-brok-

ing was started under the brand name of 5 paisa.com. Apart from offering online trading

in stock market the company offers mutual funds online. It also acts as a distributor of

various financial services i.e GOI securities, Company Fixed Deposits, Insurance. Lim-

ited ground network, present in 20 Cities

Charges for Demat:

Account opening charge :- 750 Rs.

Intra day cut off time 3 pm

DELIVERY:- 0.87%

INTRADAY:- 0.12%

Transaction charges Rs.23 or 0.04% of transaction

Annual Maintenance Charges:- Rs.300

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KOTAK STREET

Company Background

Kotakstreet is the retail arm of kotak securities. kotakstreet, caters exclusively to your

stock broking and investment requirements. Kotak Securities needs no introduction as

one of the largest stock broking houses in the country and a leading distributor of primary

market offerings Kotak Securities limited is a joint venture between Kotak Mahindra

Bank and Goldman Sachs, Pricing For Kotak

SOME FEATURES OF KOTAKSTREET:-

Account Opening charge :- 750

INTRADAY:- 0.10

DELIVERY:- 0.25

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INDIABULLS

Company Background

India Bulls is a retail financial services company present in 70 locations Covering 62 cit -

ies. It offers a full range of financial services and Products ranging from Equities to In-

surance. 450 + Relationship

Managers who act as personal financial advisors

•POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the same is

shown as a reflection in client DP account. Charges are levied to move shares from IB

pool Account to client DP account

SOME CHARGES IN INDIABULL:-

Account opening charge:- 750

Annual Maintenance Charges Rs.:- NIL

INTRADAY:- 0.15

DELIVERY:- 0.64

Intraday cut off time 3:10pm

Annual Maintenance Charges :- NIL

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ICICI Direct

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of

ICICI Bank Limited and the Website is owned by ICICI Bank Limited

Demat Charges:

account opening charges:- 975 Rs.

INTRADAY:- 0.27

DELIVERY:- 0.55

Transaction Charges (selling) Rs.15 or 0.04% of transaction

Intra day cut off time 3 pm

Annual Maintenance Charges Rs.350

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HDFC SECURITIES

Company Background

The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates pro-

mote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the

largest team of Tele-brokers

DEMAT ACCOUNT WITH HDFC:-

· It is conversion of physical shares into electronic form.

· Dematerialization charges

· Rs. 3 per share certificate

· Folio charges are Rs.150 per annum.

· Buying and selling transaction through brokers –Charges are 0.05% of transaction

value

· Intra day cut off time 3 pm

Off market transactions charges - 0.04% of transaction value

CHARGES FOR DEMAT ACCOUNT:-

Account opening charge :- 750

Yearly charge: 450 per year

Annual Maintenance Charges:- Rs.500

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SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths

and weaknesses in the internal environment and opportunities and threats in the external

environment.

STRENGTHS

Services

As a product Sharekhan is a extremely innovative product with very less

cost. Services like online trading facility, institutional and domestic broking, customized

research reports with almost 80% efficiency etc give Sharekhan an edge over its competi -

tors. Sharekhan provides other support services that make retail investors more confident

and assured with their trading. SMS alerts (allowing traders and investors to make the

most of the available opportunities), Softer, intangible features like imagery, equity driv-

ing preference. Through efficient trading processes Investors can place their orders di-

rectly on the Internet, do all the information seeking and basically own the investing

process.

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Distribution Network

Sharekhan with almost 1200 branches spread across 500 cities beefed up

by comprehensive online research, advice and transaction services. In near future expect

to make 200000+ retail customers being serviced through centralized call centre / web so-

lution,

60 branches/semi branches servicing affluent/aggressive traders through highly skilled fi-

nancial advisors, 250 independent investment managers/franchisees servicing 50000

highly valued clients, strong advisory role through Fundamental & technical research and

new initiatives are being made in Portfolio Management Services & Commodities trad-

ing.

Marketing

Sharekhan is a product of SSKI, a veteran equities solutions company with over

decades of experience in the Indian stock markets. Sharekhan does not claim expertise in

too many things. Share khan’s expertise lies in stocks and that's what it talks about with

authority. So when he says that investing in stocks should not be confused with trading in

stocks or a portfolio-based strategy is better than betting on a single horse, it is something

that is spoken with years of focused learning and experience in the stock markets.

Products

Company’s product line is quite flexible in the sense that there is a product for every kind

of investors. Also all the products cover all the loopholes of all the products offered by

the other competitors like low cost, user-friendly online trading services etc.

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WEAKNESS

Customer Satisfaction

As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking

house catering to heavy investors or small segment of the market can afford to and does

provide relationship managers for their customers, who can understand the trading needs

of individual customers, and advise accordingly. However, a broking house like

Sharekhan, which caters to the mass segment, is in no position to provide relationship

managers for individual customers.

Branding

Though the company has a efficient products but large part of investment interested

population does not know the company. The most basic expectation for a trader or in-

vestor when one begins trading is that one must get timely delivery of shares and pro-

ceeds from sale of shares. Also ones cash balances with the broker must be safe and se-

cure. Though this confidence in the broker comes with time and experience, good and

transparent practices also play a major role in imbibing confidence in traders.

Competition from banks

Most of the banks due to good branding have the faith of the customers of their

banking database. So they enjoy the liberty of huge database and customers find it more

reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank

and ICICI Bank have the advantage of linking the trading accounts of their customers to

saving accounts. This makes trading easier, and at the same time a trader withdraws ex-

actly as much money from his account as is needed to complete the trade. Similarly sales

proceeds are credited directly to saving account.

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OPPORTUNITIES

The external environment analysis may reveal certain new opportunities for profit and

growth.

Ever-increasing market

After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investors and the demand is increasing day by

day. This has resulted in improved liquidity and heavy volumes on transactions.

Sharekhan is one of the early entrants here. As to how much it will roar and how swift it

can swoop on the market, the future alone can answer such queries. Sharekhan has been a

mega player and is known for being a mover of stocks. It is also known for putting big

deals through and enjoys good networking with the FIIs. It has been dynamic enough to

move with the times and capture the opportunities that the market throws up from time to

time.

Improving Technology

In country like India technology is always improving which gives the com-

pany a chance to keep on improving their product with time whereas for the small players

like local brokers it will be difficult to keep the same pace as the changing technology.

Also with SEBI lying down some strict guidelines small brokers are finding it harder to

retain the customers with no research department and small capital. The traditional busi-

ness model is highly dependent on a large network of sub-brokers, and many established

players may not have systems (technology, customer service, etc.) capable of directly ser-

vicing so many retail customers.

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Unfulfilled needs of the customers

With so many competitors offering their products in the market but no one is able to

completely satisfy the customers. Some have the problem of lack of information or some

were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this

unsatisfied set of customers and to make hold in the market. The Internet serves to break

all barriers to information, as it offers an extremely hassle-free investing platform. And,

Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by

Sharekhan itself was born out of the consumer's need for a more transparent, easy to un-

derstand and convenient option of investing in stocks.

Education Level

The education level in the country is improving year after year as far as

technology goes. With that the understanding of the stock market is also increasing and a

lot of retail investors are steeping in the markets which is being shown by increasing vol-

umes, transactions and indices.

THREATS

New Competitors

A lot of new competitors are trying to enter the market in this bullish run to taste

the flavor of this cherry. This is creating a lot of competition for large players like

Sharekhan and it is creating little confusion in the minds of the customers about the ser-

vices provided by the broker. Also many banking firms are entering into the market with

huge investment. Competitors like icici, kotak, hdfc, 5-paisa etc. are posing a lot of

threats to the company.

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Technology based business

Online trading is totally based on the technology, which is quite com-

plex. Typically, the technology solution has to start from the Internet front-end (or

the screen that you see when you begin trading). Then it needs to get into the 'mid-

dle tier' of risk management systems that assess data from banks and depository

participants (DP), calculate client risk at that point in time, and give the 'Go/No go'

advice to the trade. So technology is a kind of threat because unless until it is

working properly it is good but Internet is not that safe. Though a lot of cyber laws

are being made but not yet executed.

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OBSERVATIONS AND ANALYSIS

DATA ANALYSIS

49

6.1 Market share of share-khan securities

COMPANY MARKET SHARE

ICICI Direct 28.00%

Sharekhan 24.00%

Indiabulls 22.00%

5 Paisa 20.00%

HDFC 6.00%

28%

24%22%

20%

6%

ICICI Direct

Sharekhan

Indiabulls

5 Paisa

HDFC

INTERPRETATION:-

The above data describes the market share of the sharekhan competitors in which share

has the second highest market share among all its competitors heaving customer base of

more then or approximate 4.5 lack.

6.2 COMPETITORS BROKERAGE COMPARISION

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COMPETITORS BROKER-

AGE INTRA DAY DILIVERY

ICICI direct 0.27% 0.55%

HDFC securities 0.10% 0.50%

INDIA BULLS 0.15% 0.64%

SHARE KHAN 0.1% 0.5%

5 PAISA 0.12% 0.87%

INTERPRETATION:-

The above is the detail of the companies’ brokerages in which sharekhan has com-

petitive brokerage over others in which there reduction of the brokerage depending

upon the deal between client and the customer.

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6.3 GROWTH RATE OF SHAREKHAN

GROWTH RATE IN % YEAR

2.5 2007

3.1 2008

3.6 2009

4 2010

4.5 2011

GRAPH NO. 6.B

INTERPRETATION:-

The above graph shows the growth rate of the company from 2006 to 2010, which shows

the increase in the growth trend.

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SHAREKHAN Growth

6.4 GROWTH RATE OF COMPETITORS:-

COMPANY Year 2009-10

HDFC NIL

5 Paisa 2%

Indiabulls 1%

Sharekhan 4%

ICICI 5%

GRAPH NO. 6.C

INTERPRETATION:-

The above graph show that ICICI direct is no. 1 in the growth rate of the competitors and

sharekhan on the 2nd position. HDFC securities are lowest in the growth rate.

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ICICI

Indiabulls

6.5 COMPARISON ACCORDING TO NO. OF CUSTOMER

COMPANY MARKET SHARE

No of customer in lack

ICICI direct 7

SHARE KHAN 4.5

INDIA BULLS 2.5

5PAISA 2.4

HDFC securities 1.1

GRAPH NO. 6.D :-

INTERPRETATION:-

The above graph shows the market share of the customer we are at position no two heav-

ing customer base of around 4.5 lakh customer, ICICI heaving the maximum and HDFC

has the minimum customer.

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6.6 Client acquisition ( During the Project of Two month(1ST June 2011 to 31st july

2011):-

Clint Acquisition (Approx.)

Total Data 3000

Calls made 2700

Responses 1200

Appointment fixed 130

Appointment confirmed 45

Appointments converted 26

GRAPH NO. 6.E:-

INTERPRETATION:-

The above graph shows the numbers of customer (appr.)That has reached through the

marketing tools and technique. Approximately out of 3000 clients finally 26 were con-

verted.

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6.7 Trading through website or software:- COMPANY NAME FACILITY

Sharekhan both

ICICI direct website

HDFC securities website

5paisa both

Indiabull website

INTERPRETATION:- According to the table of 6.7 only sharekhan and 5paise provide the facility of both (trad-ing through website and software) And the other three company provide the facility of trading through website.

6.8 Demat account charges or annual maintenance charge:-

COMPANY NAME charges

Sharekhan Free 1st year,415 p.a. from 2nd year onwards

ICICI direct Free 1st year,300 p.a. from 2nd year onwards

HDFC securities 500 p.a.

5paisa 250 p.a.

Indiabull No account maintenance charges

INTERPRETATION:-

The above table shows that the indiabull not take any maintenance charges for account and sharekhan charge Rs 415, icici charges Rs 300, hdfc charges Rs 500, 5paisa charge Rs 250.

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6.9 Tie up with banks:-

COMPANY NAME Bank names

Sharekhan HDFC bank, ICICI bank, UTI bank, CITI bank, OBC bank, IDBI bank, YES bank, CANARA bank, INDUSIND bank.

ICICI direct ICICI BANK ONLY.

HDFC securities HDFC BANK ONLY.

5paisa HDFC bank, ICICI bank, UTI bank, CITI bank, GLOBAL TRUST bank.

Indiabull HDFC bank, ICICI bank, CITI bank, ABNAMRO bank, STAN-CHART bank.

INTERPRETATION:- Above table show that the sharekhan company tie up with more than its competitors, and HDFC securities & ICICI direct give preference only own banks.

6.10 Comparison in software charges:-

COMPANY NAME Charges in Rs.

Sharekhan NIL

ICICI direct N.A

HDFC securities N.A

5paisa 1000

Indiabull N.A

INTERPRETATION:-The above table show that only two company provide the software for trading and sharekhan not charge for software but company 5paisa charge 1000 RS. N.A- not applicable

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6.11. Types of account :-

COMPANY NAME Account name

Sharekhan 2(classic a/c, speed trade a/c)

ICICI direct Web based

HDFC securities Web based

5paisa 2( trader terminal, investor termi-nal )

Indiabull Web based

INTERPRETATION:-

The above table show that every company provide some account for trading therefore

sharekhan also provide two a/c classic a/c and speed trade a/c and ICICI direct, HDFC se-

curities, Indiabull provide the web based a/c and 5paisa provide the trade terminal a/c, in-

vestor terminal for trading.

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6.12 Buy today sell tomorrow(BTST):-

Buy Today Sell Tomorrow (BTST ) is a facility that allows you to sell shares even one day after the buy order date, without you having to wait for the receipt of shares into your demat account.

Example:-

Assume that you buy shares of ABC Limited at 11.00 a.m. today. Suppose, at 2.00 p.m. today, the price of this scrip has risen by Rs 10.But you want to sell these shares tomorrow because you feel that the scrip price will rise further. But the shares would not have come into your demat account tomorrow. What can you do?

BTST is the solution to your query. If you use a Margin Trade, you would gain only to the extent of the price rise that happens today I.e. Rs 10. However, if you wish to take advantage of the price rise over a longer time period, then you would use BTST.

So, you would purchase the share today at 11.00 a.m. and sell it say tomorrow using BTST® at 2.00 p.m.

COMPANY NAME decision

Sharekhan yes

ICICI direct Yes but only on 127 scripts of NSE

HDFC securities no

5paisa yes

Indiabull yes

INTERPRETATION:-

The above table show that only HDFC securities not provide the facility of BTST and other all of company provide the facility of the BTST ( Buy today sell tomorrow ).

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6.13. Comparison according to service of SMS alert:-

COMPANY NAME SMS Alert

Sharekhan 100 per month

ICICI direct yes

HDFC securities no

5paisa no

Indiabull no

INTERPRETATION:-

The above table show that sharekhan use SMS alert for the customer satisfaction. Every month sent 100 SMS to their customer and ICICI also sent the some SMS to their cus-tomer but other company ( HDFC securities, 5paisa, Indiabull ) not sent the SMS to their customer.

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61

FINDINGS

FINDINGS

According to the study of the project report and company experience of two month the

analysis the following findings:

ü According to graph one icici has the maximum market share and sharekhan is at

position no 2. sharekhan has a competitive product feature and services that

makes it possible to reach at this position.

ü According to graph two SHAREKHAN has brokerage less then ICICI and

HDFC but Same as INDIABULLS but more then other competitors. Broker-

age is the main concern for the customer thus company provide some negotia-

tion flexibility in brokerage charges, in terms of brokerage we are better then

the ICICI and HDFC company charge less form the customer for the same

purpose and providing better service.

ü According to graph 3 which shows the competitors growth in terms of the cus-

tomer acquisition from 2006 to 2010, Sharekhan has a growth rate of 4% and

ICICI has a maximum Growth rate of 5%

ü According to Graph no 4, which shows the total no of customer, sharekhan has

the second largest customer base with 4.5 lakh among its competitors.

ü Due to high competition the companies provide same product with different fea-

tures and services. With this regard sharekhan is at no one for services, bro-

kerage and follow-up.

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RECOMMENDATIONS

After heaving an experience of two moths in sales of Demat account I would like to sug-

gest the following things

v Company has an advantage of reach tips for which sharekhan s known for,

the customer who are new they need relationship managers

who will tell them about investment so it should be provided to

al the customer on demand this will lead to customer satisfac-

tion and will hip to have more references from the satisfied

customer.

v The company also have the advantage of brokerage charges it need some

revision so that the customer who are locking for the less bro-

kerage can open there account in are company taking into con-

sideration the different proposal, it can be reduced for a HNI

client.

v The company has shown the growth trend and it has reached at no 2 it can

move to no one because it has an advantage of its services. As

sharekhan is already Tie up with 7 banks for online fund trans-

fer that reduces the paper work for customer and ease in trad-

ing.

v The company can increase the customer base if the account opening

charges it reduced from 750 to 400, which will give, boost the

competition.

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64

CHAPTER 8 CONCLUSION

After studying the project I would like to conclude that

Ø Company should focus on customer satisfaction at every levels of the account

opening procedure.

Ø Brokerage can be reduced with the attractive proposals for the HNI.

Ø Relationship manager should be given on the customer demand.

Ø Company should use the tool of advertising for marketing the brand and the prod-

uct..

Ø The account opening time should be reduce to maximum 5 days because customer

losses the opportunity of investments.

Ø The company shows the positive trend in growth but it can be increased more if it

focuses on building the brand equity.

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66

BIBLIOGRAPHY

BOOKS REFERED:

MARKETING MANAGEMENT - PHILIP KOTLER

RESEARCH METHEDOLGY - C.R KOTHARI

OFFICIAL BROUCHERE OF SHAREKHAN SECURITIES PVT LTD.

1. www.nsdl.com

2. www.sharekhan.com

3. www.hdfc.com

4. www.nseindia.com

5. www.icicidirect.com

6. www.kotaksecurities.com

7. www.indiabulls.com

8. www.indiainfoline.com

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