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A PROJECT REPORT ON“Sales of Demat Cum Online Trading Account and Marketing
Strategies of Share khan.”
SHAREKHAN SECURITIES PVT.LTD.
SUBMITTED BY:Ranvijay SinghRoll No: 11114201709
Batch:(2009-2012)
TABLE OF CONTENTS
Certificate
Acknowledgement
Executive summary
CHAPTER 1. INTRODUCTION
1.1 Introduction to the Topic
1.2 Objective of the Study
CHAPTER 2. COMPANY PROFILE
2.1 About the Company
2.2 Company Profile
2.3 Sharekhan Business
LITERATURE REVIEW
Introduction of the product
2.4 Types of product and features
2.5 Process of DMAT A/C
2.6 Documentation
2.7 Product charges
2.8 Sharekhan services
CAPTER 3 REARSEARCH METHODOLOGY
3.1 Data collection
Primary data
Secondary data
3.2 Tools and techniques
CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN
4.1 Marketing Strategies
4.2 Unique objectives of the company
4.3 Comparative analysis
4.4 SWOT Analysis
CHAPTER 5. OBSERVATIONS AND ANALYSIS
5.1 Data Analysis
5.2 Interpretation
CHAPTER 6. FINDINGS AND RECOMMENDATION
6.1Findings
6.2 Recommendation.
CHAPTER 7. CONCLUSION
CHAPTER 8 LIMITATIONS
CHAPTER 9 BIBLIOGRAPHY
CERTIFICATE
This is to certify that Mr. Ranvijay Singh student of BBA, “JIMS , New Delhi, has
carried out project work on the topic of “sale’s of Demat Cum Online Trading
Account and marketing strategies of Sharekhan securities pvt. Ltd. under my
guidance is his original work done. He has put a lot of efforts, hard work.
He has done good work with us I wish him all the best for bright future.
Project Guide
ACKNOWLEDGEMENT
A project is never the work of an individual. It is moreover a combination of ideas,
suggestions, review, contribution and work involving many folks. It cannot be completed
without guidelines.
My sincere regards to my Project guide ------------------------------- for her invaluable
guidance and encouragement through out this project.
Last but not the least my sincere thanks to all the faculty members of “JIMS” for
providing their help and advice whenever it was needed.
RANVIJAY SINGH
EXECUTIVE SUMMARY
Conceptually the mechanism of stock market is very simple. People who are
exposed to the same risk come together and agree that if anyone of the person suffers a
loss the other will share the loss and make good to the person who lost.
The initial part of the project focuses on the sales of types of the products of the
company, and also focuses on the acquisition of the customer. The job profile is to create
customer, making good relationship with them to have their references and motivating
them to trade for the company benefit and their profit.
It also enlightens the readers about the Sharekhan strategies to acquire the
customer base. Further the project tells us about the profile of the company (SHARE
KHAN). It provides knowledge to the readers about the company’s history, mission,
customer base and about the company in detail. and management of the company. Also it
gives special emphasis on the selling of products and management of the company. Also
it gives special emphasis on the selling of products.
The next chapter is devoted to study the comparative analysis of the competitors
and the SWOT analysis, which tells about the Sharekhan edge over its competitors. This
project leads us towards the job descriptions and difficulties faced by me.
The next part of the project throws light upon my findings and analysis about the
company and the suggestions for the company for better performance.
During this project I have been given the responsibility of creating customer bringing
HNI customer, handling team, generating leads.
CHAPTER 1. INTRODUCTION
INTRODUCTION OF THE TOPIC
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
investments 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
DELIVERY 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. The charges that company charge in terms of brokerage is different in both the
cases.
OBJECTIVE OF THE STUDY
Ø Main Objective
The main objective is selling of the DMAT Account cum Online Trading Account.
i. Specific Objective
a) Creating customer;
b) Marketing of the product;
c) Creating relationship with the customer to have there sources;
d) Motivating customer for trading;
CHAPTER 2. COMPANY PROFILE
ABOUT THE COMPANY
SHAREKHAN RETAIL BROKING
• Among the top 3 branded retail service providers (Rs 650 crs avg daily volume-
Apr Dec’04
• No. 2 player in online business
• Largest network of branded broking outlets in the country servicing 4,00,000
clients.
MANAGEMENT TEAM
The company has an eighty years experience in brokering business it was earlier known
as SSKI Group. The owner of the company is Mr. Dinesh Murikya.
Sharekhan is one of the leading retail brokerage firms 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 execution 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 customers across the country. Known for its
jargon-free, investor friendly language and high quality research, the site has a registered
base of over 4 lakh customers. The number of trading members currently stands at over 3
Lacs. While online trading currently accounts for just over 1 per cent of the daily trading
in stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and
superior market information.
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
customers across the country. Known for its jargon-free, investor friendly language and
high quality research, the site has a registered base of over 4 lakh customers. The number
of trading members currently stands at over 3 Lacs. While online trading currently
accounts for just over 1 per cent of the daily trading in stocks in India, Sharekhan alone
accounts for 22 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and
superior market information. The objective has been to let customers make informed
decisions and to simplify the process of investing in stocks.
On April 17, 2002 Sharekhan launched SpeedTrade, 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 station of this caliber was
offered to the traders. In the last six months SpeedTrade has become a de facto standard
for the Day Trading community over the net.
Sharekhan’s ground network includes over 250 centres in 123 cities in India, of which 20
are fully-owned branches.
Sharekhan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading
engine and content. The Morakhia family holds a majority stake in the company. HSBC,
Intel & Carlyle are the other investors.
With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the
leading players in institutional broking and corporate finance activities. SSKI holds a
sizeable portion of the market in each of these segments. SSKI’s institutional broking arm
accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all
Domestic Institutional portfolio investment in the country. It has 60 institutional clients
spread over India, Far East, UK and US. Foreign Institutional Investors generate about
65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The
Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1
billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.
Sharekhan Business
1 Brokering business
2 White feathering house production
Vision
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.
Stock Exchange Mumbai
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
SSKI Group Companies
• SSKI Investor
Services Ltd (Sharekhan)
• S.S. Kantilal
Ishwarlal Securities
• SSKI
Corporate Finance
• Idream
Productions
SSKI – Corporate Structure SSKI Securities Pvt. Ltd.
Morakhia Family & Associates100%
Owns 56% of
SSKI INVESTOR SERVICES PVT. LTD.
Retail broking arm of the groupShareholding pattern:
55.5% Morakhia family (promoters) 18.5% HSBC Private Equity India Fund
Ltd18.5% First Carlyle Ventures, Mauritius
7.5% Intel Pacific Inc.
Owns 50.5% of
SSKI CORPORATE FINANCE PVT. LTD.Investment Banking arm of the group
Shareholding pattern:50.5% SSKI Securities Pvt. Ltd.
49.5 % Morakhia family
LITERATURE REVIEW
GENERAL INTRODUCTION
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
Dematerialization 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 handed over to the DP for demat, they are defaced by marking "Surrendered
for Dematerialization" 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
opening 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
(clearing 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.
TYPES OF THE PRODUCTS
CLASSIC ACCOUNT
This account allows the client to trade throuhg our website 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.
Online trading account for investing in Equity and Derivatives via www.sharekhan.com
• 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.
SPEEDTRADE
SPEEDTRADE is an internet-based software application that enables you to buy and sell
in an instant.
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.
Customer can fast trade then the classic product
• 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.
• Back-up facility to place trades on Direct Phone lines.
Customer can view 425 scripts at a time
Customer can view graphical presentation
PROCESS ON ACCOUNT OPENING
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
NO
2) Residence Proof (Permanent)
· Pan Card
· Voter's ID
· Passport (valid)
· Driving Licence (valid)
· Bank Statement (latest)
· Telephone Bill (latest)
· Electricity Bill (lates)
· Ration Card
3) Two Photographs (Passport size)
ACCOUNT OPENING CHARGES
Charge Classic Account Speedtrade Account
Account
Opening
Rs. 750/= Rs. 1000/=
Broakerage
Intraday-0.10%
Delevery-0.50% on
conversation with rahim
not general
Intrady-0.10%
Delevery-0.50%
* Refundable in case the brokrage is more than Rs. 500/= p.m.
** Taxes as per govt.
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. 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, Commodities
CAPTER 3 REARSEARCH METHODOLOGY
REAEARCH METHODOLOGY
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 particular 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
economy in procedure. In fact the research design is the conceptual structure within
which research 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.
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. Primary 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 unreliable, 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
SECONDARY DATA:
The main source of information for the project was
Ø Weakly magazine;
Ø Internet;
Ø Newspapers;
CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN
Marketing strategy?
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
advantage.
• 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 distribution.
• 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.
MARKETING STRATEGIES OF THE COMPANY
v Tele Calling: -
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
provide 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
customer 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
questionnair 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.
v Direct Marketing
Sharekhan executive’s reaches to the doors 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
understand 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
newspapers, 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
executives 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
technology to improve the product to fulfill the demands of the customers.
Sharekhan 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.
COMPETITOR ANALYSIS
5PAISE.COM
Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-
broking 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. Limited ground network, present in 20 Cities
Charges for Demat:
•Demat 1st Yr: Rs 250
KOTAK STREET
Company Background
Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture
between Kotak Mahindra Bank and Goldman Sachs, Pricing For Kotak
•Demat charges:
Rs 22.5 p.m
INDIABULLS
Company Background
India Bulls is a retail financial services company present in 70 locations Covering 62
cities. It offers a full range of financial services and Products ranging from Equities to
Insurance. 450 + Relationship
Managers who act as personal financial advisors
•Demat Charges
: Rs 200 if POA is signed, No AMC for this DP
•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
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:
NIL first years
500 per annum
HDFC SECURITIES
Company Background
The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates
promote 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
• Rs. 35 per request.
• Folio charges are Rs.150 per annum.
• Buying and selling transaction through brokers –Charges are 0.05% of transaction
value
• Off market transactions charges - 0.04% of transaction value
CHARGES FOR DEMAT ACCOUNT
First year: NIL,
Yearly charge: 450 per year
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
competitors. 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 driving preference. Through efficient trading processes Investors can place their
orders directly on the Internet, do all the information seeking and basically own the
investing process.
Distribution Network
Sharekhan with almost 250 branches spread across 123 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
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 and
new initiatives are being made in Portfolio Management Services & Commodities
trading.
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.
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
investor when one begins trading is that one must get timely delivery of shares and
proceeds from sale of shares. Also ones cash balances with the broker must be safe and
secure. 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
exactly as much money from his account as is needed to complete the trade. Similarly
sales proceeds are credited directly to saving account.
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 company 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 business
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
servicing so many retail customers.
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
understand 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
volumes, 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
services 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.
Technology based business
Online trading is totally based on the technology, which is quite complex.
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 'middle 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.
CHAPTER 6. OBSERVATIONS AND ANALYSIS
DATA ANALYSIS
1 Market share of share-khan securities
COMPANY MARKET SHARE
Market shareholder
icici
share khan
india bulls
5 paisa
others
ICICI 28% Sharekhan 24% Indiabulls 22% 5 Paisa 20%Others 6%
Graphical representation of the above data
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.
2 COMPETITORS BROKERAGE COMPARISION
BROKERAGE OF DIFFRENT COMPANY
0.00%0.20%0.40%0.60%0.80%
ICIC
I
HDFC
INDIA
BULL
S
SHARE KHAN
5 PAIS
A
NAME OF COMPANY
% O
F B
RO
KE
RA
GE
INTRA DAY
DILIVERY
The above is the detail of the companies’ brokerages in which sharekhan has competitive
brokerage over others in which there reduction of the brokerage depending upon the deal
between client and the customer.
3 GROWTH RATE IN % YEAR
20022003
20042005
2006
20002001200220032004200520062007
1 2 3 4 5
YEAR
CUSTOMERS IN LAKHS
GORWTH RATE OF COMPANY
Series1
2.5 2005
3.1 2006
3.6 2007
4 2008
4.5 2009
The above graph shows the growth rate of the company from 2005 to 2009, which shows
SHAREKHAN Growth
the increase in the growth trend.
COMPANY Year 2008-09
HDFC NIL
5 Paisa 2%
Indiabulls 1%
Sharekhan 4%
ICICI 5%
0%
1%
2%
3%
4%
5%
5 Paisa Sharekhan
% in the 2008-2009
Competitors
Company Growth
NIL
4 COMPANY MARKET SHARE
No of customer in lakhs
MAIN COPTITORS IN MARKET
4.52.5 2.4 1.5
7
02468
ICIC
I
SH
AR
EK
HA
N
IND
IAB
ULL
S
5PA
ISA
HD
FC
NAME OF COMAPANY
NO
IN
LA
KH
S
Series1
ICICI 7SHARE KHAN 4.5INDIA BULLS 2.55PAISA 2.4HDFC 1.1
The above graph shows the market share of the customer we are at position no two
heaving customer base of around 4.5 lakh customer, ICICI heaving the maximum and
HDFC has the minimum customer.
CHAPTER 7. FINDINGS AND RECOMMENDATION
FINDINGS
According to the study of the project report and company the following findings are:
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. Brokerage is the
main concern for the customer thus company provide some negotiation 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
customer acquisition from 2002 to 2006, 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 4.5lakh among its competitors.
ü Due to high competition the companies provide same product with different
features and services. With this regard sharekhan is at no one for services,
brokerage and follow-up.
RECOMMENDATIONS
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 satisfaction 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 brokerage can
open there account in are company taking into consideration 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 tieup with 7 banks for online fund transfer that reduces the
paper work for customer and ease in trading.
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.
v The company should revise the advertising strategy to increase its brand
awareness. I suggest making advertisement on television so that maximum
market can be targeted.
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
product.
Ø Reduction in brokerage would attract the customer of Indiabulls, 5 Paisa and other
competitor’s heaving less brokerage then us. It would increase the market share or
client acquisition.
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.
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
investing 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.
CHAPTER 10 BIBLIOGRAPHY
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
9. www.google.co.in