1

by

k.c.eapen vijay p. agarwal

chander prakash

A

Presentati

on

on

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Study of Study of 

““The Market of Indiabulls in ContextThe Market of Indiabulls in Context

  to Its Competitors, Potential Investors andto Its Competitors, Potential Investors and

  Marketing Strategy”Marketing Strategy”

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Indiabulls Overview

■ Current principal business activities include securities broking, loan against shares, consumer finance and real estate development

■ Also offers an array of other financial services products, including depository services, equity research services, third party financial and insurance product sales and commodities trading

■ Sustained high growth: (FY05-FY06)

➤ Revenues - 264%

➤ Earnings - 129%

■ Exponentially increasing client base : In excess of 2,60,000

SnapshotSnapshot

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Diversified Businesses : High Growth Areas

Securities & Derivatives

Broking

Real Estate Development

UnsecuredConsumer Financing

Financial Products

Distribution

Secured Financing

Indiabulls Securities Ltd

Indiabulls Credit Services Ltd

Indiabulls Insurance Advisors Pvt Ltd.

Indiabulls Financial Services Ltd

Indiabulls Properties Pvt

Ltd

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Objectives of the StudyObjectives of the Study

• To make a comparative study of competitors of Indiabulls in

Jodhpur City

• To study Indiabulls products and services

• To find out potential investors for Indiabulls and present attitude of investors regarding share market in Jodhpur city & suggest remedial measures

• To analyze the marketing strategies of Indiabulls and suggest new strategies

• To format the Daily Sales Report (DSR)

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Research MethodologyResearch Methodology

Primary Data• Field Observation

Secondary Data

•Internet

Schedule

•Books

•Journals&Magazines

•Group Discussions

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Competitor Map of Indiabulls

Equity & Derivatives

Depository Services

NRI Services

INDIABULLS

Indiabulls Equity Analysis

Market Research

Karvy

ShareKhan

Suresh

Rathi

ICICIDirect

MotilalOswal

Reliance Mutual Fund

Tata Equity Fund

SBIM.F

.ULIP

India Infoline

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Comparative TableA COMPARATIVE TABLE SHOWING INDIABULLS AND COMPETITORS IN JODHPUR CITY

INDIABULLS SURESH RATHI ICICI INDIA INFO.SHARE KHAN KARVY MOSt

CHARGESDemat A/C Rs.1000/ Rs.100 Rs.750 NIL Rs.1000 Rs.300/575/Rs.300Trading A/C 1750(4+5) Rs.220 (4+5) Rs.500 Rs.1000 800/5000 NILAMC NIL Rs.274 Rs.500 Rs.250 Rs.300 (4+5+6) NIL

BROKERAGEDelievery Trade 50 paise 50 paise 0.4-0.85% 0.25-0.50%50 paise 30 paise Rs.35paiseIntra-day Trade 05 paise(min1 p)05 paise 0.2-0.425%0.07-0.10%06 paise 03 paise Rs.05 paiseF&O Trade 05 paise 05 paise 10.1-0.15%0.06-0.10%08 paise 03 paise Rs.05 paise

EXPOSUREDelievery Trade 2/4 times NIL NA 2 times NIL NIL 5 times(14+Intra-day Trade 12 times 10 times 10 times 8 times NIL unlimited 15+16)F&O Trade 75% of cashNA NA NA NIL NIL

INITIAL AMT. NA NA Rs.5200 2500/5000 Rs.300/5000NA NA

DEMATERILISATION Rs.7/pc NA Rs.35+2/pc Rs.25+5/pc Rs.5/pc Rs.3/pc Rs.25/pc

REMATERILISATION NA NA Rs.20/pc RS.25+15/pcRs.35/pc Rs.30/pc Rs.35/pc

SOFTWARE YES(PIB) NO interest YES(3000/7999)YES NO YES

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Market Share of Indiabulls

7%13%

13%

20%30%

17%

SHARE KHAN

ICICI DIRECT

SURESH RATHI

INDIABULLS

INDIA INFOLINE

OTHERS

A pie-chart showing market share of Indiabulls among strategic group in Jodhpur city

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FindingsThe major findings that were revealed during the research are as

follows:

The investors in Jodhpur City have different opinions as to

who provides the best service among the strategic group in

the city

Indiabulls has good reputation among investors in the city

Power Indiabulls (PIB) was voted as one of the best software

for active trading by customers.

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Contd.Contd.

Around 50% of the people in the city named Suresh Rathi

Securities Pvt. Ltd. as the best brokerage company

Only 20% active traders were found to be customers of

Indiabulls

Few prospects expressed their dissent when contacted

about the unsatisfactory services of the company

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Suggestions

Competitive Intelligence System

❙ System Formation

❙ Data Collection

❙ Data Processing

❙ Disseminating Information

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Contd.

Positioning as Market Challenger

❚ Strategic Objective

❚ Attack Strategy

❚ Specific Strategies

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Attack Strategy

INDIABULLS COMPETITORS

2) FLANK ATTACK

1) FRONTALATTACK

3)ENCIRCLEMEN

T ATTACK

5) GUERRILLAATTACK

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Research MethodologyResearch Methodology

Interview Schedule Survey: Purposive Random Sampling Sample Size: 50 in 10 areas

Primary Data

Secondary DataInternet

Newspapers

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Study of Products and ServicesStudy of Products and Services

Normal Indiabulls (NIB)

Priority Service

Premium Research

Online Accounting.

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Study of Products and Services Study of Products and Services Contd…Contd…

Power Indiabulls (PIB)• Live Streaming Quotes

• Fast Order Entry.

• Tic-by Tic Live chart of the company’s stock

performance

• Technical Analysis of the company’s share

performance

• Live news and Alert form the uncertain share

market

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Survey Conducted Survey Conducted 

Occupation

73%

24%

3%

Businessmen Servicemen

Others

Interested

Not Interested

55%

45%

0%

10%

20%

30%

40%

50%

60%

Interest for Share Market

Interested Not Interested

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Survey Conducted Survey Conducted Contd…Contd…

65%

35%

0%

10%

20%

30%

40%

50%

60%

70%

Aware Not Aware

Awareness about Indiabulls

40%

14%

1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Businessmen Others

Segment Interested in Share Mkt.

Businessmen Servicemen

Others

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Contd…                         Contd…                         Potential areasPotential areas

64%

42%

38%

54%

60%

62%

68%

76%

78%

RTO

Basani Mandi

Mandor Mandi

LIC, CHB

Shastri circle

MGH

Pal Road

Mehta Mkt.

Sardarpura

Sardarpura

Mehta Mkt.Pal Road

MGHShastri circle

LIC, CHBMandor Mandi

Basani Mandi

RTO

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FindingsFindings• During the survey business class people show positive attitude in Share Trading

• Those who have Interest in share trading most of them were aware of Indiabulls

• Mostly Investors show their first preference for share Trading in Suresh Rathi Securities

• As per the survey results Sardarpura, Pal Road, Mehta Market, RTO, office and Shastri Circle area show positive attitude in share Trading

• In some areas especially Mandore Mandi, and Basni Mandi a big part of Investors were found to be Interested in Commodity Market

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Contd…Contd…

• In survey few clients expressed full satisfaction for the products of Indiabulls mostly for PIB (power Indiabulls)

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Suggestions Suggestions 

Indiabulls is a service firm so company should apply customer Development process

Prospects

First-time client

Member Partners

Inactive or new Customer

Advocacy

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Contd…Contd…• Indiabulls may go through “Investment Mela”

• Indiabulls should come up with NCDEX

• Indiabulls should conduct some kind of mock

classes for new Investors who even don’t know

about share market

• There should be employee ID-Card for them so that

when they go on it shows good impression and

Identity of employee

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Research MethodologyResearch Methodology

Personal InterviewObservation

Group Discussion

Primary Data

Secondary Data

Internet

Modules

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Marketing Strategies Of IndiabullsMarketing Strategies Of Indiabulls

Indiabulls

External Marketing

Company

Internal Marketing

Employees Interactive Marketing Customers

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Internal Marketing

RELATIONSHIP MANAGER

Equity Trading Business

Management Trainee

Relationship Manager

Regional Manager

Branch Manager

Team Leader

Sales Head

Platinum Relationship

Manager

Average Management Trainee takes 12-24 months

to become a Branch Manager

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Brand Recognition & Customer Satisfaction

■ Extensive product range

■ Enhanced customer experience

■ Personalised service through relationship managers

■ Understands local market dynamics

■ Expanding geographical and online presence

What Indiabulls OffersWhat Indiabulls OffersWhat Customers ExpectWhat Customers Expect

Wide range of services under one roofWide range of services under one roof

24 Hour Support & Ease of access24 Hour Support & Ease of access

Personalized AttentionPersonalized Attention

16,45530,498

79,932

260,000

0

50,000

100,000

150,000

200,000

250,000

300,000

Mar-03 Mar-04 Mar-05 Jun-06

Increasing Number of CustomersIncreasing Number of Customers

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Client Client AcquisitionAcquisition

■ Further reliance on the relationship manager sales model

➤ Personalized attention to customers

■ Improve the quality of service levels to provide an enhanced experience to clients

Moving Up the Moving Up the Value ChainValue Chain

■ Provide a wide array of services such as brokerage, depositary services, mutual fund and equity distribution, commodities trading

■ Offer innovative products such as Power Indiabulls and Indiabulls Signature Client Account

■ Improve customer education through in-house equity research

Leverage Leverage TechnologyTechnology

■ Improve customer interface and customer experience through technology

■ Continually invest in upgrading of systems

Marketing Strategies Contd…

Risk Risk ManagementManagement ■ Enhance data mining to improve risk management processes

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Formatting of DSRFormatting of DSR

Occupation

Existing A/C if any

Views / suggestions

Competitor’s Activity

Next day contact

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FindingsFindingsWord of mouthcommunication

Personal needs

Past Experience

Expected Service

Perceived Service

GAP 5

Service Delivery (including pre and post contacts)

External Communication to customer

Translation perception intoservice quality specification

Management perception of customer expectation

GAP 1

GAP 4

GAP 3

GAP 2

MARKETER

CUSTOMER

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SuggestionsSuggestionsSelf Service Technologies

• Kiosk

• IB card: - “Think It And Get It”

Promotion

• Advertorials

• SMS

Back Office Staff

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ConclusionConclusionAlthough Suresh Rathi Securities is the largest

shareholder in the market, the next to follow is

Indiabulls which is gearing up for expansion in various

nearer cities like Nagor, Pali, Balotra etc. with the

spreading of business in these cities and further

developing on the key areas in Jodhpur City. Indiabulls

is all set up to become“The Company of the

Future”

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Thank YouThank You

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Queries Queries ??