EDELWEISS BROKING LIMITED

SELLING ANALYSIS OF DE-

MAT ACCOUNT (HNWI) OF
EDELWEISS BROKING
LIMITED
Presented by: INDRAJIT CHAKRABORTY, DEEP GHOSH &
MANISHA KUNDU
 SALES ANALYSIS OF DE-MAT ACCOUNT (HNWI) OF
EDELWEISS BROKING LIMITED
REPORT SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT
FOR

POST GRADUATE PROGRAMME IN MANAGEMENT

INDRAJIT CHAKRABORTY (Reg No: EIILM/PGP/09-10/A034)

DEEP GHOSH (Reg No: EIILM/PGP/09-10/A041)

MANISHA KUNDU (Reg No: EIILM/PGP/09-10/A021)

UNDER THE GUIDANCE OF

PROF. AVIJIT CHAKRABORTY (EIILM, KOLKATA)

&

MR. SATRAJIT DUTTA MOJUMDAR

(HNI SALES MANAGER AT EDELWEISS BROKING LIMITED. 3A,

UPPER WOOD STREET, 2ND FLOOR SAVITRI TOWER, KOLKATA700017)

EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT

6, WATERLOO STREET, KOLKATA- 700069

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 ACKNOWLEDGEMENT
A Task is not a single man’s effort, as there are various factors, situations and
there are people combined together to form the background for the
accomplishment of any task.

The project report bears the imprint of some very important people both from
my institution (EIILM, KOLKATA) and from the organisation (EDELWEISS BROKING
LIMITED, KOLKATA), who are related to shape up this project. We are highly
grateful and sincerely acknowledge valuable contributions imparted by these
imminent people towards the completion of the project.

We would like to thank sincerely my company guide Mr Satrajit Dutta Majumdar,

HNI sales manager, Edelweiss, Kolkata, for his valuable guidance, inputs, support
and briefing about the industry. We are grateful to the organizational members
for their help and support.

Most importantly, we deeply want to express our profound gratitude and

thankfulness to Prof. Abhijit Chakraborty for having faith on our abilities.
Knowledge gained from him will always inspire and encourage us to scale new
heights in the future.

I thank all the respondents who have given their precious time to answer my
questionnaire during the survey for primary data collection.

Indrajit Chakraborty

Deep Ghosh

Manisha Kundu

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 CONTENTS

Serial No. Content Page No.

1. Executive summary 5
2. Introduction to the topic 7
3. Introduction to Edelweiss 9
4. Objective 12
5. Methodology 13
6. Data Projection 14
7. Analysis 15
8. Findings 47
9. Recommendations 48
10. Conclusion 49
11. Limitation 49
12. References 50
13. Survey Questionnaire 51

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 EXECUTIVE SUMMERY
Edelweiss Capital Limited is a Mumbai based company which started its
operation in the year 1995. The mission statement of the company is “Ideas
create, values protect”. It provides services like investment banking,
institutional equities, private client broking, asset management, wealth
management, investment advisory services, treasury, insurance broking,
wholesale financing, and mutual funds. The major clients are corporations,
institutional investors, and high net-worth individuals. This Project is a
comprehensive study of selling strategy of Edelweiss and identifying its
opportunities and challenges. It talks about studying the method of identifying
customer’s investment needs and suggesting them suitable financial products,
thus the sales of various financial products of the company and analyse the
various distribution strategies exploited by the firm. The project also deals with
customer relationship management; it gives a picture about how to build a
good relationship with the clients who bring business for the company (existing,
prospective and dormant clients). This project will explore the various
distribution channels used by Edelweiss to sell its products. The project will
focus on the strength areas of the company while at the same time tries to
identify the weak areas so that it can be overcome. A comparative analysis of
Edelweiss with other broking firms has also been done. The strategy followed by
Edelweiss in relation with Sales and Distribution is unique and acts as a (USP)
unique selling proposition in favour of the company. The strength of Edelweiss is
its market image and well equipped research team, which it uses as a potential
selling tool.

As an intern, I have carried out research to track acceptability for different

distribution channels. I went for the field work, talked to customers and tracked
their investment pattern to help them suggest the kind of financial product they
should use according to their risk appetite. Adding to this, I have been
communicating with different types of customers through various media,
including client visits, who fall under the sample space for this project. My job
here is to advise them to take the suitable products offered by the company,
depending on certain criteria, in order to make investing easier for them. I have
also worked as a part of sales force of the company and sold De-mat account.

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Some of the data has been collected from the customers regarding their views
about Edelweiss. Having said that, a comparative study has carried out to see
where Edelweiss stands in the race for offering Products and services. I have been
handling the profile of Customer Relationship Management. I have been talking
to existing HNWIs clients of the company over the phone, asking for an
appointment following which there will be client visit. In the visit the main focus
would be to convince the clients to do more business with the company and
telling them about the benefits provided by the company. So tracking the
transformation is really interesting and worth appreciating. I have concentrated
on existing and dormant clients trying to know their opinion about their
association with Edelweiss. Interaction with the clients helped to know the image
of the company in the minds of the customers and it helped me to come up with
suggestions to further improve the services of the company. I hope my findings
are useful for the company.

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

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

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 AN INTRODUCTION TO EDELWEISS

The answers to most questions lurk in the shadows; all but invisible to the
untrained eye. What is needed is light. And Edelweiss is a powerhouse of
financial innovation –illuminating both the solutions and the perils. As one of the
fastest growing investment banking and financial services company in India,
Edelweiss exists to innovate.

Edelweiss Capital Limited (www.edelcap.com), incorporated on 21st November

1995, today has emerged as one of India’s leading integrated financial services
conglomerates. The Edelweiss Group offers one of the largest ranges of
products and services spanning varied asset classes and diversified consumer
segments. The Group’s product offerings are broadly divided into Investment
Banking, Brokerage Services, Asset Management, Treasury and Financing. The
company’s research driven approach and consistent ability to capitalize on
emerging market trends has enabled it to foster strong relationships across
corporate, institutional and HNI clients. Edelweiss Capital Limited now employs
about 1200 employees, leveraging a strong partnership culture and unique
model of employee ownership. It operates through 65 offices in 21 cities in
India. It is a listed company since December 2007 under the symbols NSE:
EDELWEISS, BSE: 532922 and Bloomberg: EDEL.IN. The Edelweiss Group is now a
conglomerate of 46 entities including 39 Subsidiaries and 6 Associate companies
(December ’09), which are engaged in the business of providing diverse financial
services, primarily linked to the capital markets.

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HIGHLIGHTS

 ESL has a strong equity research team, which covers approximately 50 - 60

companies within 6 industry categories, with a focus on large and medium
cap stocks.

 The company’s Equities Broking division has now expanded to include 215
stocks in 19 sectors accounting for 70 percent of market capitalization

 Alternate Asset Management’s total asset value currently stands at $625

million

 Wholesale Financing division soared to Rs. 141 crore in FY08 from Rs. 7
crore in the previous year

 Edelweiss is amongst the largest institutional broking firm, enjoying a

healthy 5% plus market share in the institutional broking segment

 Edelweiss is also in the process of widening its product portfolio by

penetrating into product specific and sector specific niches, which will
broaden and strengthen its entire institutional business

 Asset base of over INR 800 cr. In lending business

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

 Listing in various stock exchanges NSE: EDELWEISS, BSE: 532922,

Bloomberg: EDEL.IN

 Awarded as “Best Merchant Banker” by the Outlook Money NDTV Profit

Awards, 2008

 Ranked among the top ten players in Annual Bloomberg and Annual
Thomson-Reuters

 Present Chairman and CEO- Mr. Rashesh Shah

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SNAPSHOT

Approach- Client Focus, Execution orientation, Culture, Professional Integrity,

Research Driven

Aim- building long term relationships with the clients and equipping the clients
about the market knowledge so that they can address the day by day fast
growing opportunities

USP- The single minded focus on thought leadership and relentless pursuit of
the ‘new’ and ‘different’ is it in products, services or people, model of employee
ownership

Culture- Entrepreneurial and result driven emphasizing confidentiality and

integrity

Operations- stock broking, research services, distribution of financial

products, depository services, and proprietary trading, 47 per cent of its
revenue is from treasury and wholesale financing

Research (POD) - 90 researchers, covers over 200 stocks across 19 sectors that
accounts for about 70% of the total market capitalization

Offices- operates from 56 offices in 21 Indian cities, employs over 1600

employees

Major clients- ESL focuses on the wholesale equity segment, providing broking
services to Institutional and corporate clients and high net worth individuals

Market Capitalization- Rs 5,500 crore (Rs 55 billion),

Equity Base- over Rs 2,000 crore

Website- www.edelcap.com, www.edelblue.com

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 MAIN TEXT

OBJECTIVE

Customer segmentation- How Edelweiss segments their customer and their

preferences as per age, gender and annual income.

To understand the customers need and accordingly sell them suitable de-mat
account- For selling its very important to understand the customers perception.
This project will help the company to understand HNI customer base in a better
way so that suitable strategy can be adopted.

Competitive analysis- Competitive analysis done among several broking firms.

Identifying the growth areas of the company- explore the growth potential
segments.

Study the satisfaction level of the customer- In this project customer’s

satisfaction level analysed as per our data.

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 METHODOLOGY

Methodology is a strategy that guides a research in providing answers to

research questions and for this research survey has been done.

Collection of primary data in the process of evaluating the

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

The next step involves the use of secondary data provided by

company for selling de-mat account and analytical study.

A competitors’ analytical study with the help of primary as well as

secondary data. This analysis will help in understanding the products and
services available with the competitors present in the financial services
sector.

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

client visits and meetings. The client meetings will provide us a platform
to pitch the different de-mat account plans available in the company and
also the client can put forward their issues related to services provided
with much ease. The visit will also provide valuable feedback which will
further enhance the services of the organization.

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 DATA PROJECTION

The data is being collected through primary and secondary sources.

Primary data:

The will be collected through questionnaires provided by the company from

people in Kolkata. The sample size is taken as 100.

Secondary data:

 Database given by company.

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ANALYSIS OF SELLING STRATEGY
1. SELLING STRATEGY OF EDELWEISS

Relationship strategy
The key to success in selling is the ability to establish working relationships
with the customers in which mutual support, trust and goals are nurtured
over time. Edelweiss stresses on building good relationship with its clients as
in case of financial firms the intangible nature of services makes Relationship
strategy vital. The main purpose of a salesperson is not just to make sales but
to create customers.

Product centered selling and client centered selling

Points Product Centered Selling Client Centered Selling

1.
Stress on research and development of Stress on research and
product development of
relationships with
clients

2.
Emphasis on knowledge of product Emphasis on
knowledge of
customers
3.
Influenced by past performance of directed more to
products and competition and present consideration of future
situations Growth and
developments in the
client World

4.
Seeks to be accepted as a reliable, seeks to raise client’s
credible source of information and expectations of
service Personal excellence

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2. EDELWEISS SALES MANAGEMENT PROCESS

Formulation of strategic
sales program.

Implementation of the
sales program.

Evaluation and control of

the sales performance

First a strategic sales program is made keeping in mind the company’s

objectives. Then accordingly the sales program is implemented. Following this
there is an evaluation of the sales force performance. The company adopts
majorly Direct Selling Strategy to sell its products. The concept of
telemarketing is being adopted by the company. Appointments are fixed over
the phone which is followed by the client meeting. The whole process can be
shown with the help of a flowchart:-

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 Create Make Give Ensure After Ensure
Indentify Close
direct appointment suitable knowledge sales increase in
the deal
selling with demo & about promt customer
customer
process customer pitch product service value

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.

S • Specific

M • Measurable

A • Attainable

R • Realistic

T • Time-bound

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3. METHODS ADOPTED BY SALES PERSON TO SELL THE PRODUCT

Cashing in on Brand Name or the Company’s reputation- Representatives

approach the customers with the strength of Brand name that Edelweiss has.
Though the company is new in Kolkata, it is a well established brand in Mumbai.

Customer Benefit Approach- they convey to customers the benefits they will get
after getting associated with Edelweiss, like online platform etc.

Interactive Approach- the approach is interactive i.e. it is a two way

communication and client queries are always welcomed.

Selling skills- It talks about the skills the salesman should possess as follows:-

Problem
solving
skill

Negotiation Effective
skill communication
SELLING
SKILLS

Conflict
Listening
managem
skills
ent

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Possession of these skills is very important as conversion of a prospect customer
to a company client very much depends on the selling skills and how the matter
is put forth the client.

The project part that covers D-Mat account sales, involves calling the clients,
interacting with them and convincing them to maintain a good relationship with
the company so that the company is in a profit.

4. THE MAJOR ATTRIBUTES OF THE SELLING STRATEGY

IN THE COMPANY

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

Motivational Rewards- The team who performs the best is given some
rewards. This is to motivate others to perform well and at the same time
appreciate the hard work done by the winning team

Continuous Evaluation- the sales team has to appear in the evaluation

conducted by the company to test their market and product knowledge.
This is done to ensure that the company has the best sales force

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

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

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5. MARKETING MIX (THE 4P’S)

The marketing mix is to devise marketing activities and assemble fully marketing
programs to create, communicate, and deliver value for consumers. McCarthy
classified these activities as marketing mix tools. These tools can be classified
into four categories- product, price, place and promotion.

Product:
“Product” refers to a bundle of attributes. Apart from the physical product
itself, there are elements associated with our product that customers may be
attracted to, such as the way it is packaged. Other product attributes include
quality, features, options, services, warranties, and brand name. Thus, we might
think of what we offer as a bundle of goods and services.

Price:

“Price” is consumer’s perception of the present worth for the product or service
to him/her. Our pricing approach should reflect the appropriate positioning of
our product in the market and result in a price that covers our cost per item and
includes a profit margin .Our selection of a pricing strategy should be based on
product, customer demand, the competitive environment, and the other
products we will offer.

Place:

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

Selling directly to consumers or

selling to a vendor

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Promotion:

“Promotion” refers to the advertising and selling promotion. It is how we let

people know what you’ve got for sale. The purpose of promotion is to get
people to understand what our product is, what they can use it for, and why
they should want it. Promotion may involve advertising, public relations,
personal selling, and sales promotions. A key channel is advertising. Advertising
methods to promote our product or service include the following.

• Radio: Radio advertisements are relatively inexpensive ways to inform

potential local customers about our business. Mid-to-late week is generally the
best time to run our radio ad.

• Television: Television allows access to regional or national audiences, but may

be more expensive than other options.

• Print: Direct mail and printed materials, including newspapers, consumer and
trade magazines, flyers, and a logo, allow us to explain what, when, where, and
why people should buy from us. We can send letters, fact sheets, contests,
coupons, and brochures directly to new or old customers on local, regional, or
national levels.

• Electronic: Company Web sites provide useful information to interested

consumers and clients. Password-protected areas allow users to go more
intimately interact with us. Advertisements allow broad promotion of our
products. Direct e-mail contact is possible if we have collected detailed
customer information.

• Word of Mouth: Word of mouth depends on satisfied customers (or

dissatisfied customers) telling their acquaintances about the effectiveness of our
product.

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6. SERVICE MARKETING (3P’S)

Coming to the Marketing Mix generally there are 4P’s (PRODUCT, PRICE, PLACE,
PROMOTION) but when it comes to services marketing 3p’s are added to it:-

PEOPLE

The importance of people within the marketing of services has led to great
interest in internal marketing. This recognizes the importance of attracting,
motivating, training, and retaining quality employees by developing jobs to
satisfy individual needs. People form an important part of the differentiation in a
service organization which can create added value for the customer.

PROCESS

The processes by which services are created and delivered to the customer is a
major factor within the services marketing mix as services customers will often
perceive the service delivery system as part of the service itself.

PHYSICAL EVIDENCE

The exterior design can be utilized to communicate e.g. the history and values of
the respective institution. The use of colour in combination with texture and
finishes is identified to be a simple but very effective factor of differentiation,
helping to convey particular messages to the customer and creating a special
atmosphere affecting employees and customers likewise. Two types of graphics
can be used to establish identity, marketing graphics and branding graphics.

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 RESEARCH METHODOLOGY
The Research methodology carried out during this project has been divided into
THREE main parts which is shown below:

Research Methodology

Market Segmentation Comparative Analysis Market Survey

Customers’ Institutional Telephonic

segmentation segmentation on Questionnaires
the basis of CRM

Analysis for Analysis for

prospective existing
client clients

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 The project has been segregated into three parts:

A) MARKET SEGMENTATION: the basic idea behind Market

Segmentation is ATTRACTING. RETAINING AND GROWING
CUSTOMERS.
Customers at Edelweiss Securities Ltd can briefly be segmented into three basic
categories:
1) Young, affluent segment.
2) Middle aged customers (40-55 yrs)
3) Senior Citizens.

The proportion of each one of them is shown below:

12%

Young & Affluent (20-39)

25% Middle Age( 40-55)

63% Senior Citizen( 55 &

above)

Source: Customer database, Edelweiss Securities Ltd.

On the basis of the survey conducted, it has been deduced that

the young and affluent section has more risk appetite and aggressive as
compared to the middle aged and senior citizens. The senior citizens are
more of a conservative nomenclature. This relationship is illustrated
below with the help of hypothetical scale.

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 Compressed Analysis of Customer’s Risk Appetite:
INCOME-AGE RELATIONSHIP:

Combining all the market survey analysis (expressed in fore coming pages),
hypothetical scale can be drawn in order to retrieve the investment and risk
taking capacity of customers so as to advice them their kind of investment tool.

AGE AFFLUENCY

LOW HIGH

HIGH LOW
LOW

LOW AGE, HIGH AFLUENCY HIGH AGE, LOW AFFLUENCY:

Customer Nomenclature: Aggressive. Customer Nomenclature: Conservative.

Risk appetite: HIGH Risk appetite: LOW
Investment Preference: Mutual funds,
equity, insurance. Investment Preference: Bullion, Bank Deposits.

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 “MODERATE CUSTOMERS”:

Here, those customers should also be taken into consideration that features in
between the two ends: Aggressive and Conservative. These customers are
known to be moderate in their approach having a balanced Risk Appetite. The
investment preferences recommended to them includes a logical combination
of aggressive as well as conservative customers.

B) COMPARATIVE ANALYSIS:
Collection of data is done is done through different sources, like
questionnaire, competitors visits, customer database, customers’
feedback, etc.

Companies visited:
1) INDIABULLS SECURITIES LIMITED
2) KOTAK SECURITIES LIMITED
3) ICICIC DIRECT
4) HDFC SECURITIES

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 1) INDIABULLS SECURITIES LIMITED
Indiabulls securities limited (ISL) is the pioneer in retail broking industry having
a Pan India presence and providing service to a customer base of over half a
million. ISL is in the business of providing securities broking and advisory
services and is a corporate member of capital market, wholesale debt market
and derivative segment of NSE and of the capital market and derivative
segment of BSE.
Through its different types of distribution channel, Indiabulls, so far has been
good in meeting customers’ needs.

Various distribution channels of Indiabulls:

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

with live updates.
b) Signature account: It is an online trading platform.
c) Depository service: Another name for DEMAT account.
d) NRI trading terminal: NRIs can also enjoy the online trading platform for
trading in Indian capital market.
e) IPO online: It is a specified terminal for applying to IPOs.
f) Equity analysis: A platform for reviewing the comprehensive report and
advisory services.
g) Currency derivative: Offers currency trade in NSE.

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 SWOT ANALYSIS

STRENGTHS WEAKNESSES

 FAST IMPLEMENTATION OF ORDERS * HAS A WEAK SECURITY SYSTEM

 REAL TIME QUOTS * NUMBER OF SCRIPT ON ONE PAGE 25
 LOW RATES OF BROKERAGE (30 PAISE) * VERY SLOW RESPONSE TO CUSTOMER
 EVERYDAY BUY/SELL CALLS QUERIES AND COMPLAINTS
* GETTING CASH BACKDIFFICULT

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

IN RESPONSE AND QUERIES IMPROVE ON TO CRM STRATEGY TO
RETAIN ITS EXISTING CUSTOMERS

OPPORTUNITIES THREATS

The major flaw in the system is delayed response to customers’ queries, complaints
and clients’ instruction. But they are really good on fast implementation of orders
and real time quotes. Low rate of brokerage is their competitive edge and a USP.
Receiving funds from Indiabulls is the worst part of their customer service.

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 2. KOTAK SECURITIES

Kotak securities, a subsidy of Kotak Mahindra Bank, is the stock broking and
distribution arm of Kotak Mahindra Group. It caters to the needs of foreign and
Indian institutional investors in Indian equities. The division also has a
comprehensive research cell with sectoral analyst covering all the major areas
of the Indian economy.

SWOT ANALYSIS

STRENGTHS WEAKNESSES

 VERY FAST ORDER PROCESSING * # OF SCRIPT IS 25

 STRONG SECURITY SYSTEM * AVERAGE RESPONSE TO
CUSTOMER
 REAL TIME TRACKER QUERIES AND RESPONSE
 OWNED BANKING ACCOUNT
* HIGH BROKERAGE COMPARED
IN THE SAME LEAGUE

 WITH OWNED BANK ACCOUNTS OF * LOSS OF CUSTOMERS DUE TO

HIGH
CUSTOMERS, IT CAN INCREASE ITS BROKERAGE
CUSTOMER BASE BY PITCHING TO ITS
EXISTING CUSTOMERS, BY GIVING
OFFERS

OPPURTUNITIES THREATS

on prospect of customer relationship, Kotak is really good. Suggestive buy or sell calls to
customers on daily basis. The limitation that it faces is it doesn’t allow more than 25
scripts at a time. Edelweiss, here has an edge as it gives 50 scripts at a time. The website is
more cumbersome as compared with others. The most important fact is that it has the
highest brokerage as compared to other broking house in the same league. Owing to its
banking parent, it has a competitive edge over other broking houses.

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3. ICICI DIRECT

ICICIC Direct, the subsidy of ICICI bank is the market leader in the field of broking
industry with a market share of more than 31 percent.
Has three types of accounts:
a) Share trading account: share trading account by ICICI direct is primarily for
buying and selling of stocks in BSE and NSE. This account allows cash
trading, margin trading, spot trading, buy today sell tomorrow and call and
trading on phone.
b) Wise investment account: Along with stock trading and IPOs trading in BSE
and NSE, wise investment account also provide option to invest in mutual
funds and bonds online.
c) Active traders account: Active traders account gives more personalized
investment option to the investors. It allows investors to use online and
offline stock trading. It also provides with independent market expertise
and support through a dedicated relationship manager.

SWOT ANALYSIS
STRENGTHS WEAKNESSES

 Owned bank account. Accsesing website at a peak time.

 Fast order processing.
 Strong security system High brokerage

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

NEGOTIATING ON BROKERAGE BROKERAGE.
 IMPROVEMENT IN CRM

OPPORTUNITIES THREATS
ICICI direct has got a good overall reputation apart from flaw in providing real
time online ticker to the customers. If this featured is cleared, no player in the
market can take over. All facility of trading in equities, mutual funds and now
post office savings are a dream for any investor. However, order execution is a
weak link in the system. The brokerage rate is a major concern as it charges a
premium brokerage and is far higher than its nearest competitors. Still it has
succeeded in maintaining the highest market share.

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 4. HDFC SECURITIES LIMITED

HDFC securities is a wing of HDFC bank and promoted by JP Morgan with a market
share of around 5 per cent, giving access to Equities, IPOs, Mutual Funds and
Derivatives.
HDFC Securities provides customers a robust platform to trade in equities in NSE
and BSE and derivatives in NSE.
OFFERINGS OFHDFCsec.com:
a) Online trading for residents and NRIs.
b) Cash-n-Carry on both NSE and BSE (Delivery)
c) Intraday trading on NSE and BSE.
d) Trade in future and option in NSE.
e) Online IPOs
f) Telephone based trading for equities, Derivatives and IPOs.

SWOT ANALISYS
STRENGTHS WEAKNESSES

 OWNED BANK ACCOUNT * SLOW ORDER PROCESSING

 STRONG SECURITY SYSTEM * NO DIALY BUY/SELL CALLS
 REAL TIME TRACKER * LACK OF PROPER RESEARCH
 QUICK RESPONSE TO CUSTOMERS

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

SLOW
BY IMPROVING RESEARCH AND ORDER PROCESSING
ADVRTISMENT STRATEGIES.

OPPORTUNITIES THREATS

HDFC securities has an edge over other broking house as it has its own banking
account within the house so fund transfer both ways and processing is rapid.
However, processing of orders (buy and sell) is a little slow as compared to other
houses. Its security system owing to its banking background is flawless which give
investors a sense of security. Dematerialization account charges are high as
compared to other broking firms. It checks the account balance before processing the
order. Response to customer queries is quick.

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 EDELWEISS Vs COMPETITION

Banking account contracted Owned Owned Contracted Owned

Order processing fast Slow quick Very fast Fast

Security system Very strong Very strong Very strong weak Strong

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

charges(rs)
Buy/sell calls yes No No yes No
# of script on 1 page 40 25 25 25 25

Brokerage 0.40Paise 0.40paise 0.75Paise 0.30Paise 0.40paise

(negotiable)
Real time tracker Available Available Not available Available Available

Post office saving NA NA Yes NA NA

Response to Quick Quick Slow Very slow Average

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

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

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INTERPRETATION

From the above table following conclusions can be drawn:-

When it comes to brokerage, Edelweiss is very competitive. Though

there are many firms that are offering very low brokerage to the clients,
the company has come up with its new prepaid plans in which the
brokerage is as low as 10 paisa. There are different plans depending on
the trading volume of the clients

Services offered by Edelweiss are premium and one of the best

among all.

Edelweiss has online trading platform that has live streaming

quotes and Express trade facility wherein the client can punch in the trade
while looking at the values of the stocks.

Research of Edelweiss is best among all its competitors and no one

can beat Edelweiss on that

The only point that is not in the favour of Edelweiss is low Brand
equity in Kolkata. The Brand image is not there in the minds of the people
as the company is new in Kolkata. So the company needs to work on it
and establish a good brand image as it matters a lot in this industry

From the above table it can be seen that ICICI and Indiabulls are its
biggest competitors. ICICI is the major competitor, the benefit that it
enjoys is that the customers can have their account I its bank so fund
transfer is very easy. Besides it has a very good brand image and people
trust on that. This is the reason that despite charging a high brokerage it is
very popular among masses. Indiabulls is customer friendly and its
terminal is considered very fast. So Edelweiss needs to focus on these two
competitors.

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 Market share of different players in the market

*number of terminals
**market share in percentage

Source: tradeji.com

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 SALES QUESTIONNAIER ANALYSIS

1. Age segmentation of customers.

12%

Young & Affluent (20-39)

25% Middle Age( 40-55)
Senior Citizen( above 55)
63%

Conclusion:
As per the age segmentation 63% of them is young and 25% is in
middle age section. So, it can be interpreted that young people are
interested in share trading more.

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 2. Gender Segmentation of customers.

Female
17%

Male
83%

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

3. Segmentation as per annual income.

7 lakhs and
above
11%

more than 5
lakhs <3 lakhs
14% 35%

3-5 lakhs
40%

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Conclusion:
People having annual income of 3-5 lakhs are more interested in
investment in Kolkata.

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

Channels
Internet Broker

25%

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. This graph shows that broking business is
a profitable one as it attracts the large volume of potential customers 75%, 25%
Internet and Broker.

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 5. What is your preferable tool of investment?

Bank Deposit Real Estate Derivative Instrument

Mutual Fund Gold & Bullion Equity Shares

22%

36%

5%

25% 7%
5%

Conclusion
When it comes to investing one’s income 36% of the people prefer to be on the
safer side and avoid risk by investing in the bank deposits. The next option is
mutual funds as they are comparatively risk free. Equity shares are the next best
option according to the respondents. So it can be said that most of the people
prefer risk-free return. While a 22% of graph shows that equity shares are
considered as a good option by the investors due to their high return.

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 6. How did you come to know about Edelweiss?

Other sources
8%
reference group
10%

Print &
electronoc
Internet
media
62%
20%

Conclusion

The above responses shows that most of the people came to know about
Edelweiss by other sources, while many through reference group. This shows
that the company needs to work a lot towards creating Brand Awareness in
Kolkata. Reference group is a good source of information about the company.

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

Brand Awareness

Yes
36%

No
64%

Conclusion

64% of the people are not aware of the products offered by the Edelweiss. In
this category few of the respondents knew about the equity share trading but
were not aware of all the products, while a large chunk of respondents had
never heard of Edelweiss.

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 8. Have you used any Edelweiss financial product?

Yes
22%

No
78%

Conclusion

In response to the question 78% of the respondents said that they are not
using any Edelweiss product at present, so it gives a clear picture that there is
a huge untapped segment among which the product needs to be pitched.

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 9. Which Edelweiss product are you using now?

12

10

6
10
4 8

2
2 2
0
De-mat Mutual Fund Debentures Structured
products

Conclusion

From the response it can be seen that De-mat (equity shares) is the highest
selling product of Edelweiss followed by mutual fund. Of the 10 of 22 people
using Edelweiss products nearly 50% prefer equity shares.

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 10. Best company according to the respondents.

India Infoline, 5 Kotak, 4

HDFC
securities, 6

Indiabulls, 8
ICICI Direct, 30

Edelweiss
, 10

Sharekhan, 21
Motila
Religare, 4 l
Oswal,
12

Conclusion

30% of the respondents ranked ICICI Direct as the number one share trading
company. This is mainly because of its good Brand Image and linked bank
account. Sharekhan is preferred for its customer friendly approach and
trading terminal. Still Edelweiss stands in the competition and is preferred
mainly because of its research facility. The company needs to give attention
to the Brand image building.

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 11. Factors affecting the choice of a company.

Brokerage
20%
Brand Image
Advance R & D 35%
10%

Dealer support
13%
Proximity with Services
residence 12%
10%

Conclusion

When it comes to the choice of the company the factor that affects the decision
to the largest extent is the Brand Image i.e. the reputation of the company. The
best example is ICICI. Brokerage is the second most important factor. Edelweiss
has good research so it has the capability of attracting customers. Of the above
factors all are present in Edelweiss except a good Brand Image in Kolkata, which
it needs to build.

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 12. Possible sources searched for financial product information.

word of Moutth Television

12% 10%

Friends
22%

Internet/Websit
e
45%
Newspaper/Ma
gazine
11%

Conclusion
Most of the respondents 45% trust share broking websites when it comes to
financial product information especially in stock market. They trust on their
experience with the company and act accordingly.

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 13. Overall performance of Edelweiss.

49
50
45
40 32
35
30
25
20
11
15 8
10
5
0
Extremly satisfied Neutral Dissatisfied
satisfied

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

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

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FINDINGS

Young people prefers Edelweiss de-mat service than other age groups- Young
people is very much accustomed with computer and internet, so they are
preferring online de-mat service.

Satisfaction level if the customers- 49% of the sample size are satisfied but it
should be increased by different strategies.

Marketing strategy of Edelweiss in Kolkata- Edelweiss segments their customer

by age, gender and annual income. Next they targets their customers and
according positioning themselves.

Opportunities and challenges before the company- There are many

opportunities before Edelweiss like increasing geographical penetration, strong
economic growth, and huge untapped retail customer. In front of any company
the main challenge is the pitfalls of sensex and also development and offerings
of other broking firms.

Competitor analysis- Due to this project we found out the competitor analysis,
from like icici direct is the best de-mat service provider in Kolkata.

Awareness about Edelweiss products- People of Kolkata is not so much aware

of the products served by edelweiss

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RECOMMENDATIONS

More flexible advance brokerage plans.

If the customer complaints are handled properly they will again do

business with the company.

There should be more number of brokers and sub- brokers so that

they can tap a large chunk of the customers.

The company should work on building Brand image in Kolkata as it

plays a major role when it comes to taking decision about a company.

Special training about products.

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

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CONCLUSION

From the analysis of the questionnaires and above findings it can be concluded
that Edelweiss approach to sales and distribution strategies is right and its
innovation in the distribution channel by tie-up with retail shops will help it a lot.
The CRM strategy of the company is different for Retail customers and HNWIs.
When it comes to competitors ICICI is its biggest competitor and the company
lags behind when it comes to Brand Image.

LIMITATIONS

Some aspects might not be covered due to time constraint.

The information by the customers regarding their investment may

be partially correct because they do not wish to disclose their asset
information.

Reliance on the secondary data means that some of the

information may be subject to verification.

Incorrect data given by the respondents might not justify the

purpose.

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

schedule.

In a rapidly changing industry, analysis on one day or in one

segment can change very quickly.

The study is limited to only Kolkata.

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REFERENCES
www.edelcap.com

www.nseindia.com

www.edelweiss.in

www.wikepedia.com

MARKETING MANAGEMENT BY PHILIP KOTLAR, KELLER, KOSHI, JHA

Valuable insight provided by the company guide and the faculty guide

50 | 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. Age segmentation.

a) Young & affluent(25-39) b) Middle age(39-55)

c) Senior citizen(above 55).

2. Gender: a) Male b) Female

3. Annual income.

a) < 3 lakhs. B) 3-5 lakh c) 5-7 lakh d) 7 lakh and above.

3. What are the possible sources that you search for financial product information
before making any decision?

a) Television/Radio b) Internet/Website

c) Newspaper/Magazine d) friends

e) Word of Mouth

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

a) Internet b) Broker

c) Direct from the company

5. What is your preferable tool of investment?

a) Bank deposits b) Real Estate

c) Derivative instruments d) Mutual funds

e) Gold and bullion f) Equity shares

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6. How did you come to know about Edelweiss?

a) Internet b) Print and electronic media

c) Reference group d) By chance

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

a) Yes b) No

7. Have you used any Edelweiss Financial products?

a) Yes b) no

8. Which Edelweiss Products are you using now?

a) Mutual Fund b) demat

c) Debentures d) others, please specify

9. Company preference for opening de-mat account.

ICICI direct

Share khan

Motilal Oswal

Religare

Edelweiss

Indiabulls

HDFC Securities

India Infoline

Kotak

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10. Factors affecting in choice of the companies.

Brokerage

Advance R & D

Dealer Support

Proximity of the firm

with residence
Services

Brand image

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

a) Extremely satisfied b) Satisfied

c) Neutral d) less satisfied e) Dissatisfied

Phone no:

Email id:

Name:

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