Marketing Strategic on Reliance Money

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Marketing strategy of Reliance Money

[DEPT OF MBA] Page 2

DECLARATION

I hereby declare that this summer project report titled Marketing

Strategy of Reliance Money is the result of my own effort in the

training, which I did as a part of the curriculum for the fulfillment of Master

of Business Administration (MBA) degree. It has not been duplicated from

any other earlier works and all information provided in this report is

genuine.This report submitted for the partial fulfillment of MBA program. It has not

been submitted to any other university or for any other degree.

Place : - Kalandi Mohanty

Date : - Regd no:- 521072030


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CKNOWLEDGEMENTINSPIRATION LEADS TO DEDICATION,

DEDICATION LEADS TO ACOMPLISHMENT,

ACOMPLISHMENT LEADES TO ACKNOWLEDGMENT.

First and foremost I thank god, my friend for blessing showered on me. All

my efforts will remain meaningful authorities, who helped me more than I

expected, while I working on my project.

I have project privilege of undergoing major concurrent project for one

month at Reliance Money Rourkela. I would like to express my sincere gratitude

to Sir. Sunil Kumar (Senior Manager) for providing me an opportunity to under

take major concurrent project and guidance through out the project to complete

successfully.

I extend my sincere thanks and acknowledgement to all the

Officer/Executive of Reliance Money, Rourkela, who extended their wholehearted

guidelines and their co-operation, in spit of their schedule in completing my

project work successfully.

I would like extend my sincere feeling of gratitude to Sri RK Hota (GM), Dr.

Nilachal Sahoo (Sr.General Manager) and Prof. Sunil Kumar. Finally I thank to all

the faculty member of our institute who have given me their valuable suggestions

from time to time

Name: Kalandi Mohanty

Branch: MBA (marketing)

Session: (2010-2012)

Regd.No:521072030


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TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. Kalandi Mohanty has done his project entitled

Marketing Strategy of Reliance Money.

He has done his project with much sincerity and wish him good luck in

future.

Mr. Sunil Kumar

(Senior Manager)


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UNIVERSITY STUDY CENTRE CERTIFICATE

This is to certify that the project report entitled Marketing Strategy of

Reliance Money submitted in partial fulfillment of the requirements

for the degree of Master of Business Administration of Sikkim

Manipal University of Health, Medical & Technological Sciences.

Kalandi Mohantyhas worked under my supervision and guidance

and that no part of this project report has been submitted for any

award of any other Degree, Diploma, Fellowships or any other similar

titles and that work has been published in any journal or magazine.

Reg. No: 521072030 Certified

Place: Rourkela Mr. Manas Ranjan Pattanaik

Date : MBA


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EXAMINERS CERTIFICATION

The Project report of Kalandi Mohanty Marketing Strategy of

Reliance Moneyis approved and acceptable in quality and form.

Internal Examiner External Examiner

Name : Name :

Qualification: Qualification :

DESIGNATION: - DESIGNATION: -


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CONTENTS

CHAPTER NO. TOPIC PAGE NO.

CHAPTER I INDUSTRY PROFILE 9 - 37

DEMAT ACCOUNT

MUTUAL FUND

LIFE INSURANCE

GENERAL INSURANCE

CHAPTER II ABOUT THE COMPANY 38 - 42

COMPANY PROFILE

VISION AND MISSION

ORGANISATIONAL HIERARCHY

CHAPTER III PRODUCT OFFERING 43-64

TRADING PORTAL

FINANCIAL PRODUCT

VALUE ADDED SERVICES

CREDIT CARD

GOLD COIN RETAILING

CHAPTER IV MARKETING STRATEGY 65 - 83

WHAT IS GOOD MARKETING

ASPECTS OF GOOD MARKETING

STP CONCEPT

STRATEGY

4 PS OF MARKETING

DISTRIBUTION CHANNEL

TELEMARKETING

CANOPY


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ADVERTISEMENT

CHAPTER VII Suggestions & recommendations 84 - 86

FINDINGS

SUGGESTION

CHAPTER VIII CONCLUSION 86-87

CHAPTER IX QUESTIONNAIRE 87 - 89

CHAPTER X APPENDIX BIBLIOGRAPHY 90


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INDUSTRY PROFILE

DEMAT ACCOUNT

Online trading refers to the buying and selling of shares /bonds/stocks/contracts

with the use of internet. In this the shares are not issued in the physical form

rather they are transferred in the dematerialized form to the Demat account

directly.

In India, a Demataccount, the abbreviation for dematerialisedaccount, is a type

of banking account which dematerializes paper-based physical stock shares. The

dematerialised account is used to avoid holding physical shares: the shares are

bought and sold through a stock broker.

If we want to save our money, then we have to open a savings account with a

Bank. Such like that if we want to bye and sell shares, then we need to open a

Demat account with a depositary participant registered with SEBI, NSE, and BSE.

Demat denotes the dematerialization of shares. Demat account along with a

trading account from a DP facilitate us to bye and sell shares online and to store

the shares online without any bonded paper stuffs. Demat account facilitates

faster transaction when compared with the older traditional trading method, (i.e.)


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the share buyer have to inform to the broker regarding his purchase decision and

then the broker forward it to the stock exchange, then they allot the shares to the

respective buyer and send him a registered share certificate via postal

department. The investor has to wait for 5 days for his transaction. But now due

to the entry of Demat account and online share trading platforms the investors

can buy and sell any volume of shares online by one mouse click!

This account is popular in India. The Securities and Exchange Board of India (SEBI)

mandates a demat account for share trading above 500 shares. As of April 2006, it

became mandatory that any person holding a demat account should possess a

Permanent Account Number (PAN), and the deadline for submission of PAN

details to the depository lapsed on January 2007.Under Section 68 B of the

Companies Act, inserted by the Companies (Amendment) Act, 2000, it is

mandated that every Initial Public Offer (IPO) made by a listed company in the

excess of Rs. 10 Crores has to be issued in dematerialized form by complying with

the requisite provisions of the Depositories Act, 1996.

Until the late eighties, the common man kept away from capital market and thus

the quantum of funds mobilized through the market was meager. A major

problem, however, continued to plague the market. The Indian markets were


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drowned in shares in the form of paper and hence it was problematic to handle

them. Fake and stolen shares, fake signatures and signature mismatch,

duplication and mutilation of shares, transfer problems, etc. The investors were

scared and were under compensated for the risk borne by them. The century old

system of trading and settlement requires handling of huge volumes of paper

work. This has made the investors, both retail and institutional, wary of entering

the capital market. However, lack of modernization become a hindrance to

growth and resulted in creation of cumbersome procedures and paper work.

However, the real growth and change occurred from mid-eighties in the wake of

liberalization initiatives of the Government. The reforms in the financial sector

were envisaged in the banking sector, capital market, securities market

regulation, mutual funds, foreign investments and Government control. These

institutions and stock exchanges experienced that the certificates are the main

cause of investors` disputes and arbitration cases. Since the paper work was not

matching the rapid growth so there was a need for a better system to ensure

removal of these impediments.

Government of India decided to set up a fully automated and high technology

based model exchange that could offer screen-based trading and depositories as


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the ultimate answer to all such reforms and eliminate various bottlenecks in the

capital market, particularly, the clearing and settlement system in stock

exchanges. A depository in very simple terms is a pool of pre-verified shares held

in electronic mode which offers settlement of transactions in an efficient and

effective.

Advantages of Demat a/c are as follows:

SEBI has made it compulsory for trades in almost all scrips to be

settled in Demat mode. Although, trades up to 500 shares can be

settled in physical form, physical settlement is virtually not taking

place for the apprehension of bad

delivery on account of mismatch of signatures, forgery of signatures,

fake certificates, etc.

No stamp duty is levied on transfer of securities held in Demat form.

Instantaneous transfer of securities enhances liquidity.

It eliminates delays, thefts, interceptions and subsequent misuse of

certificates.

Change of name, address, registration of power of attorney, deletion

of deceased's name, etc. - can be effected across companies by one

single instruction to the DP.


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Each share is a market lot for the purpose of transactions - so no odd

lot problem.

Any number of securities can be transferred/delivered with one

delivery order. Therefore, paperwork and signing of multiple transfer

forms is done away with. It facilitates taking advances against

securities on low margin/low interest.

Demat system not only provides smooth and hassle-free way of

dealing in shares, it also does away with all the associated tensions.

Bad deliveries are minimized.

Postal delays and loss of shares in transit is prevented.

Immediate transfer of shares and securities.

Less paper work (reduction in huge volumes).

Faster settlement cycles and payouts.

The demat system totally avoids the associated heartburns arising

from theft of shares, mutilation, forgery, counterfeit shares and loss of

shares during a natural calamity.

Nomination facility.

Holding investments in equity and debt instruments in a single

account.


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MUTUAL FUNDHistory of Indian Mutual Fund

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at

the initiative of the Government of India and Reserve Bank of India. The history of mutual funds

in India can be broadly divided into four distinct phases.

First Phase1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was

set up by the Reserve Bank of India and functioned under the Regulatory and

administrative control of the Reserve Bank of India. In 1978 UTI was de-linked

from the RBI and the Industrial Development Bank of India (IDBI) took over the

regulatory and administrative control in place of RBI. The first scheme launched

by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of

assets under management.

Second Phase1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public

sector banks and Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund


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established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab

National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of

India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual

fund in June 1989 while GIC had set up its mutual fund in December 1990. At the

end of 1993, the mutual fund industry had assets under management of

Rs.47,004 Crores

Third Phase1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian

mutual fund industry, giving the Indian investors a wider choice of fund families.

Also, 1993 was the year in which the first Mutual Fund Regulations came into

being, under which all mutual funds, except

UTI were to be registered and governed. The erstwhile Kothari Pioneer (now

merged with Franklin Templeton) was the first private sector mutual fund

registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry now

functions under the SEBI (Mutual Fund) Regulations 1996.


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The number of mutual fund houses went on increasing, with many foreign mutual

funds setting up funds in India and also the industry has witnessed several

mergers and acquisitions. As at the end of January 2003, there were 33 mutual

funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with

Rs.44,541 crores of assets under management was way ahead of other mutual

funds.

Fourth Phasesince February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was

bifurcated into two separate entities. One is the Specified Undertaking of the Unit

Trust of India with assets under management of Rs.29,835 crores as at the end of

January 2003, representing broadly, the assets of US 64 scheme, assured return

and certain other schemes. The Specified Undertaking of Unit Trust of India,

functioning under an administrator and under the rules framed by Government of

India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is

registered with SEBI and functions under the Mutual Fund Regulations. With the

bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000

crores of assets under management and with the setting up of a UTI Mutual Fund,


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conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking

place among different private sector funds, the mutual fund industry has entered

its current phase of consolidation and growth.

The graph indicates the growth of assets over the years.

Concept of Mutual Fund

A Mutual Fund is a trust that pools the savings of a number of investors who

share a common financial goal. The money thus collected is then invested in


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capital market instruments such as shares, debentures and other securities. The

income earned through these investments and the capital appreciations realized

are shared by its unit holders in proportion to the number of units owned by

them. Thus a Mutual Fund is the most suitable investment for the common man

as it offers an opportunity to invest in a diversified, professionally managed

basket of securities at a relatively low cost. The flow chart below describes

broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

Organization of a Mutual Fund


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There are many entities involved and the diagram below illustrates the

organisational set up of a mutual fund. They are as follows

Sponsors

The sponsor is the company which sets up the mutual fund. It means anybody

corporate acting alone or in combination with another body corporate

established a mutual fund after initiating and completing the formalities.

Trustees

The management of the mutual fund is subject to the control of the board of

trustees of the fund. They guide the operations of the fund and carry the crucial

responsibility to see that AMC always act in the best interest of the investors.

Asset Management Company (AMC)

The mutual fund is operated by a separately established asset management

company (AMC).It manages the funds of the various schemes. It is entrusted with

the specific task of mobilizing funds under the scheme.

Custodian


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A custodian is a person carrying on the activities of the safekeeping of the

securities or participating in any clearing system on behalf of the clients to effect

deliveries of the securities.

(Mutual Fund Operation Flow Chart)

TYPES OF MUTUAL FUND SCHEMES


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Wide varieties of Mutual Fund Schemes exist to cater to the needs such as

financial position, risk tolerance and return expectations etc. The table below

gives an overview into the existing types of schemes in the Industry.

By Structure ;

Open-Ended Schemes

Close-Ended Schemes

Interval Schemes

By Investment Objective;

Growth Schemes/Equity Schemes

Income Schemes/Debt Schemes

Balanced Schemes

Money Market Schemes

Investment by Structure

Open-ended Schemes:

An open-end scheme accepts funds from investors by offering its units or shares

on a continuing basis i.e. an investor can invest in an open-ended schemes

whenever he wants and he can purchase units at the market price at that

moment. Open-end scheme permits investors to withdraw funds on a continuing


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basis under a re-purchase arrangement. Open-end scheme has no maturity

period. The open-end schemes are ordinarily not list on the secondary market.

Close-ended Schemes:

The subscription to a closed-end scheme is kept open only for a limited period

(usually one month to three months). After that he cannot invest in that fund. A

closed-end scheme does not allow investors to withdraw funds as and when they

like. A closed-end scheme has a fixed maturity period (usually five to fifteen

years). The closed-end schemes are listed on the secondary market.

Interval Schemes:

Interval funds combine the features of open-ended and close-ended schemes.

They are open for sale or redemption during pre-determined intervals at NAV

related prices.

Investment by Objective


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A DEBT FUND invests mainly in debt instruments like bonds and

debentures, with high and consistent dividend payout. These funds give

decent returns but the capital appreciation is not much. There are a variety

of ways in which a debt portfolio can be created for investors. Retired

people and others with a need for stability and regular income. Investors

who need some income to supplement their earnings. There are thus the

following choices in debt funds:

Liquid and Money market funds

Gilt Funds

Monthly Income Plan

Floating rate funds

Balanced Schemes

A BALANCED FUND invests in both equity and debt instruments. It aims to

generate growth and income by periodically distributing its assets over both types

of securities. These funds are ideal for investors looking for a combination of

income and moderate growth.

Money Market Schemes


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This type of fund's main objective is to hold investment instruments that are

liquid and secure. This type of fund is usually held on a short-term basis, and the

NAV is often fixed at $10. Examples: Treasury bills, banker's acceptances, and

short term notes.

One thing an investor should be aware of is that these funds are NOT guaranteed

like a GIC, and hold NO fixed return, but are low risk and do pay interest.

ADVANAGES OF MUTUAL FUND

Reduction of risk

Professional Management

Tax benefits

Low transaction costs

Well regulated

Liquidity

Diversification

Return potential

Transparency

Flexibility


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Choice of schemes

DISADVANTAGES OF MUTUAL FUND

No control over costs

Dilution

No tailor made portfolio

Managing a portfolio of funds

LIFE INSUARNCE


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HISTORY

Insurance has been known to exist in some form or other since 3000 BC. The

Chinese traders, travelling treacherous river would distribute their goods among

several vessels, so that the loss from any one vessel being lost, would be partial

and shared, and not total. The Babylonia traders would agree to pay additional

sums to lenders, as the price for writing off the loans, in case of shipment being

stolen. The inhabitants of Rhodes adopted the principle of general average,

whereby, if goods are shipped together, the owner would bear the losses in

proportion, if loss occurs, due to jettisoning during distress. The Greeks had

started benevolent societies in the late 7thcentury AD, to take care of the funeral

and families of members who died. The friendly societies of England were

similarly constituted. The Great Fire of London in 1666, in which more than 13000

houses were lost, gave a boost to insurance and the first fire insurance company,

called the Fire Office, was started in 1680.The origin of insurance business as in

vogue at present is traced to the Lloyds Coffee House in London. Traders, who

used to gather in the Lloyds coffee house in London, agreed to share the losses to

their goods while being carried by ship. The losses used to occur because of

pirates who rubbed on the high seas or because of bad weather spoiling the


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goods or sinking the ship. In India, insurance began in 1818 with life insurance

being transacted by an English company, the Oriental Life Insurance Co. Ltd. In

Calcutta. The first Indian insurance company was the Bombay Mutual Assurance

Society Ltd.

Formed in 1870 in Mumbai this was followed by the Bharat Insurance Co. in

1896in Delhi, The Empire of India in 1897 in Mumbai, the United India in Chennai,

the National Indian and the Hindustan Cooperative in Kolkata.First attempts at

regulation of the industry were made with the introduction of the Indian Life

Assurance Companies Act in 1912. A number of amendments to this Act were

made until the Insurance Act was drawn up in 1938. Noteworthy features in the

Act were the power given to the Government to collect statistical information

about the insured and the high level of protection the Act gave to the public

through regulation and control. When the Act was changed in 1950, this meant

far reaching changes in the industry. The extra requirements included a statutory

requirement of a certain level of equity capital, a ceiling on share holdings in such

companies to prevent dominant control (to protect the public from any

adversarial policies from one single party), stricter control on investments and,

generally, much tighter control. In 1956, the market contained 154 Indian and 16

foreign life insurance companies. Business was heavily concentrated in urban


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areas and targeted the higher echelons of society. Unethical practices adopted

by some of the players against the interests of the consumers then led the Indian

government to nationalize the industry. In September 1956, nationalization was

completed, merging all these companies into the so-called Life Insurance

Corporation (LIC). It was felt that nationalization has lent the industry fairness,

solidity, growth and reach.

Some of the important milestones in the life insurance business in

India are:

1912 - The Indian Life Assurance Companies Act enacted as the first statute

to regulate the life insurance business.

1928 - The Indian Insurance Companies Act enacted to enable the

government to collect statistical information about both life and non-life

insurance businesses.

1938 - Earlier legislation consolidated and amended to by the Insurance Act

with the objective of protecting the interests of the insuring public.

1956 - 245 Indian and foreign insurers and provident societies taken over

by the central government and nationalized. LIC formed by an Act of


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Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from

the Government of India.

Some facts about insurance industry in India

The domestic insurance industry in India is estimated to be around US$ 60.5

billion by 2010, of which US$ 35 billion will come from rural and semi-urban

areas. While the life insurance market is expected to grow to US$ 35 billion, non-

life insurance market will touch an estimated US$ 25 billion.

With the largest number of life insurance policies in force in the world, Indias

insurance sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per

cent in 1999-2000, far ahead of China where insurance accounts for just 1.7 per

cent of the GDP and even the US where insurance penetration stands at 4 per

cent of the GDP. One area that continues to cause concern is the number of

customer grievances in insurance, especially in a few specific classes. This calls for

more transparency in designing the contract wording and on insisting that the

applicant is sufficiently informed about the coverage and more particularly the

exclusions. In addition, the legislation itself requires to be transformed to meet

the needs of the emerging markets. The Law Commission of India which has gone

extensively into the various insurance laws has submitted its report. Further, the


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expert committee headed by Mr. K.P. Narasimhan has also submitted its

proposals requiring amendments to the laws. The demand for health insurance

covers has seen a healthy increase, and today the sector is the fastest growing

segment in the non-life insurance industry in India, which grew at over 40% last

year. It is also emerging as an increasingly significant line of business for life

insurance companies. During the last five years, the premium from health

insurance products in non-life companies has grown from 675 crore in 2001-02 to

Rs 3200 crore in 2006-07, almost 5 times its level 5 years back. While this rate of

growth appears to be very healthy, it is on a low base, and health insurance

penetration in the country continues to be low. Only about 25 million persons are

presently covered for health through commercial insurance, in a country of over

1.1 billion people. Overall, the Indian health sector is still characterized by the

near absence of any significant risk protection against major health-related

expenditure, as insurance and other organized forms of payment for health

services, including ESIS, CGHS and other such schemes barely constitute a tenth of

all health expenditure in the country. Almost four-fifths of the health spending in

the country is private, out-of-pocket expenditure. In the absence of such

protection, the financial impact of hospitalization can be very pronounced, and

indeed is reported as one of the leading causes of impoverishment in the country.


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Indian insurance companies recorded a 19.9 per cent growth in premium in dollar

terms (adjusted for inflation) in 2006-07, compared to the world market growth

rate of 2.9 per cent. This rate of growth of the industry looks particularly

impressive when seen against the fact that the combined penetration of both life

and non-life is less than 2 per cent of the GDP compared to world average of 7.52

per cent. Clearly, the scope for growth is enormous.

Led by the Life Insurance Corporation (LIC), the life insurance industry registered a

growth of 110 per cent in fiscal 2006-07, taking the total business to US$ 19.2

billion from the previous years US$ 9.1 billion. The life insurance market has

grown rapidly over the past six years, with new business premiums growing at

over 40 per cent per year owing to the entry of a host of new players with

significant growth aspirations and capital commitments.

The total life insurance market premiums is likely to more than double from the

current US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by

McKinsey. The study titled India Insurance 2012: Fortune Favors the Bold,

expects a rise in premiums between 5.1 and 6.2 per cent of the GDP in 2012 from

the current 4.1 per cent driven by greater insurance intensity per capita as the

average per capita income increases and rise in penetration in urban and rural


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areas. The life insurance premium contributions per capita have jumped from a

little over US$ 7 in 1999-2000 (pre-liberalization) to US$ 38.5 in 2006-07.

Life insurance penetration in India - which was less than 1 per cent till 1990-91 -

increased to 2.53 per cent in 2005, and to 3 per cent in 2006-07. While the

impetus for growth has come from both public and private insurers, the number

of players in this segment have also increased to 16 (15 in private sector), with

Life Insurance Corporation (LIC) being the dominant player (market share of over

74 per cent).

Major players in the Life Insurance industry

Life Insurance Corporation of India (LIC)

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

Reliance Life Insurance Company Ltd.

ICICI Prudential Life Insurance Co. Ltd.

Om Kotak Mahindra life Insurance Co. Ltd.

Birla Sun Life Insurance Co. Ltd.

Tata AIG Life Insurance Company Ltd.


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SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Pvt. Ltd.

Allianz Bajaj Life Insurance Company Ltd.

MetLife India Insurance Company Pvt. Ltd.

AMP SANMAR Assurance Company Ltd.

Dabur CGU Life Insurance Company Pvt. Ltd.

GENERAL INSURANCE

Introduction

The General Insurance industry in India dates back to the Industrial Revolution

and the subsequent increase in trade across the oceans in the 17th century. As for

Life Insurance, the British brought General Insurance to India, and a similar path

was followed in the development of this industry. A number of private companies

were in existence for years and years until, in 1971, the Indian Government

decided that the public interest would be served by nationalizing the industry,

merging all the 107 companies into four companies, depending on the sort of

business transacted (Marine, Fire, Miscellaneous). These were the National

Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India


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Assurance Company Ltd., and the United India Insurance Company Ltd. located in

Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance

Corporation (GIC) was set up in 1972 as a holding company, having these four

companies as its subsidiaries.

Some of the important milestones in the general insurance business in

India are:

1907 - The Indian Mercantile Insurance Ltd. set up, the first company to

transact all classes of general insurance business.

1957 - General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound

business practices.

1968 - The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set up.

1972 - The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st

January 1973. 107 insurers amalgamated and grouped into four companies

viz. the National Insurance Company Ltd., the New India Assurance


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Company Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

The general insurance industry grew 11.6 per cent between April and November

in 2007-08 with robust performances by private players. The 13 non-life insurers

collected US$ 4.7 billion in premium against US$ 4.2 billion in the same period last

year. While the public sector could increase its premiums by just 3.57 per cent, 9

private sector players clocked premium growth of 26.49 per cent. Private sector

players market share has grown to about 40 per cent in FY08 as compared to the

public sectors 60 per cent.

Major players in the General Insurance industry


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General Insurance Corporation of India (GIC)

Royal Sundaram Alliance Insurance Co. Ltd.

Bajaj Allianz General Insurance Co. Ltd.

Reliance General Insurance Co. Ltd.

ICICI Lombard General Insurance Co. Ltd.

Cholamandalam General Insurance Co. Ltd.

TATA AIG General Insurance Co. Ltd.

IFFCO Tokio General Insurance Co. Ltd.

Export Credit Guarantee Corporation Ltd.

HDFC-Chubb General Insurance Co. Ltd.

COMPANY PROFILE


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Introduction

Reliance Money is a group company of Reliance Capital; one of India's leading and

fastest growing private sector financial services companies, ranking among the

top 3 private sector financial services and banking companies, in terms of net

worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.

Reliance Money, the financial products distribution company of Anil Dhirubhai

Ambani Group, today unveiled the new brand identity for Travelmate Services

and announced major business plans for its Money Changing Services and Full-

Fledged Money Transfer business. Travelmate Services, a part of Kuoni Group,

was acquired by Reliance in November 2006 and is now a wholly owned

subsidiary of Reliance Capital. The company has been in the Money Transfer

Services (MTS) and Full-Fledged Money Changing (FFMC) business in the country

since 1993. Reliance Money, which started operations in April 2007, is adding

about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh

customers. And the traded volumes have crossed about Rs 1,200 crore.


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Reliance Money is a comprehensive electronic transaction platform offering a

wide range of asset classes. Its endeavor is to change the way India transacts in

financial markets and avails financial services. Reliance Money is a single window,

enabling you to access, amongst others in Equities, Equity & Commodities

Derivatives, Mutual Funds, IPOs, Life Insurance, General Insurance, Offshore

Investments, Money Transfer, Money Changing and Credit Cards.

Reliance Money, the financial products retail arm of Reliance Capital, a company

owned by the Anil Dhirubhai Ambani Group (ADAG), has decided to expand

distribution network in rural areas. In a massive inclusive growth initiative, first

of its kind in Indian corporate history, which would provide employment to

50,000 rural youth, the company has decided to extend its rural reach this fiscal

by setting up 10,000 franchised outlets in 5,165 of the 5,645 tehsils (talukas) of

the country, according to a Hindu Business Line. Reliance Money has already

identified and appointed franchisee partners in 1,001 tehsils with the help of

Rural Relations, a rural consumer-focused organization. Reliance ADAG expects to

garner 10 to 20% of its total business through this rural thrust.

Reliance Money plans to provide insurance plans for cattle, crop, bullock cart and

tractor, term insurances (Rs 25 to Rs 50 pay out for a years coverage), and


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Systematic Investment Plans (monthly installment of Rs 50 to100). While the

company has already established its presence in Maharashtra, Andhra Pradesh,

Karnataka, Madhya Pradesh, Gujarat and West Bengal, it is now expanding into

Uttaranchal, Chhattisgarh, Rajasthan, Tamil Nadu and Orissa.

VISION

To build a global enterprise for all our stakeholders and a great future for our

country by giving millions of young Indians the power to shape their destiny: The

means to realize their full potential.

MISSION

To create and nurture a world-class, high performance environment aimed at

delighting our customers by providing endless financial products in all part of the

country.


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Reliance Money is a distribution house. Along with the products of reliance capital

it also sells the financial products of other companies like ICICI, HDFC, TATA AIG,

Birla sunlife, etc. Its main product is Demat account. Along with the Demat

account it also sells life insurance, general insurance, mutual fund, gold coins etc.

ORGA

Nationalhead

ZonalHead

ZonalHead

ZonalHead

ZonalHead

RegionalHead

RegionalHead

RegionalHead

RegionalHead

Cluster

head

Cluster

head

CenterManager

CenterManager

BDMs BDMs BDMs BDMs


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NIZATIONAL HIERARCHY

National Level : National Head

Zonal Level : Zonal Head

Regional Level : Regional head

Divisional leve : Cluster Head

Branch Level : Center Manager

Area Level : Business Development Managers (BDM) (previously

BDMs .

PRODUCT OFFERING

1. Trading Portal(with almost negligible brokerage )

Equity Broking

Commodity Broking

Derivatives ( Futures & Options )

Offshore Investments (Contract For Differences)

D-Mat Account.


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2. Financial Products

Mutual Funds

Life Insurance

ULIP plan

Term Plan

Money Back Plan

General Insurance

o Vehicle/Motor Insuranceo Health Insuranceo House insurance

IPOs

NFOs

3. Value-Added Services

Retirement Planning

Financial Planning

Tax Saving

Children Future Planning

4. Credit Cards


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PRODUCT FEATURES;

DEMAT ACCOUNT

There are many broking houses doing business in India and they charge a

brokerage on every transaction made online or offline. (Buying and Selling are

treated as separate transaction). Reliance Moneys advantage over others is that

its charging the lowestbrokerage in the market which is just 1 paisa on every

executive trade irrespective of the volume traded. Reliance Money, the brokerage

and distribution arm of Reliance ADA Group, aims to tap investors in the smaller

towns and cities through a flat fee structure. The current leaders in the retail

broking segment like ICICI Direct, India Infoline and India bulls offer a pay per

use model where the customer pays a percentage of the amount transacted by

him. Reliance Moneys brokerage rates are quite competitive.

The new wonder is Reliance Money's pre-paid card for stock market brokerage.

Reliance Money, the financial services division of Anil Dhirubhai Ambani Group-


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promoted Reliance Capital, is bringing to the market pre-paid cards in

denominations of Rs500, Rs1,350 and Rs2,500 with validity period of two months,

six months and twelve months respectively.

These cards would offer brokerage at one-third of the rate being charged by

institutional and individual brokerage houses. Sample this. For a pre-paid card

worth Rs500, an investor can trade up to Rs90 lakh in futures and option segment

or can undertake intra-day trade of similar amount. Besides, an investor can

undertake a delivery-based activity of Rs10 lakh.

The Rs1350 worth pre-paid card, total trading limit would reach Rs 3 crore, of

which Rs 2.70 crore is for the F&O segment and balance Rs30 lakh for delivery-

based activities.

For Rs2500 pre-paid card, total trading limit is fixed at Rs16 crore, that include

F&O limit of Rs15.40 crore and balance Rs 60 lakh for delivery-based broking.

Converted to percentage terms - Reliance Money offers most competitive

brokerage rates - 0.01% for delivery trades and 0.001% for non-delivery trades

(fixed fee of Rs500/- for delivery trades up to Rs10lacs and/or non-delivery trades

up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and

between 0.05% and 0.10% for non delivery trades. Target low level of retail penetration


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in India - less than 3 per cent of household financing savings makes it into equity

markets. Reliance Money consumers can trade in equities, commodities and offshore

Investments ,

IPOs, Mutual Funds, Insurance, Money transfer and Money Changing - all through

single window, both off-line and online.

Reliance Money has already tied-up with CMC Capital Plc UK to offer offshore

Investment products to Indian consumers as per guidelines.

Fee structure and validity limits (+ Rs. 750/- as registration)


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FEE

Access

Fees (Rs.)

Validity

(Whichever is earlier)

Turnover Limit

Time Validity Turnover

Validity

Intraday

Turnover

Delivry

Turnover

500 12 months 1 lac Rs. 2 lac

1000 2 months 2 cr Rs. 90 lac Rs. 10 lac

1500 6 months 3 cr Rs. 2.7 cr Rs. 30 lac


Unutilised delivery limit may be added to intraday limit


Unutilised delivery limit may be added to intraday limit


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STRUCTURE

1. Two way authentication: Reliance offers its customers with a token (an

electronic gadget) that generates a password, which are a third level of security

in addition to the customer log in and a password provided. The password

generated by the token is valid only for a period of 20 seconds. If the web page

expires, for the fresh login, a new password generated by the token has to be

keyed in by the customer.

2. Lowest brokerage:Reliance offers the lowest brokerage of 1 paisa which is

very less with respect to the other DPs in the market.

3. User friendly software:The portal offered is very easy to understand and use.

4. Forex and offshore investment:Reliance provides the offshore facility which

no other AMC is providing in the market.

5. Better research and news: Reliance offers news from the DOW JONES and

REUTERS.

"Reliance Mutual Fund schemes are managed by Reliance Capital Asset

Management Limited., a subsidiary of Reliance Capital Limited, which holds

93.37% of the paid-up capital of RCAM, the balance paid up capital being held by

minority shareholders."


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Reliance Capital Asset Management Limited (RCAM) was approved as the Asset

Management Company for the Mutual Fund by SEBI vide their letter no

IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an

Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and

was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations,

1996. Pursuant to this IMA,

DIFFERENT SCHEMES OF RELIANCE MUTUAL FUND

The different schemes offered to various kinds of investors by Reliance mutual

fund can be broadly classified into three categories Equity, Debt and sector

specific. Each of these categories has different investment objectives and

therefore has different portfolio.

Equity Schemes

Reliance Growth Fund

Reliance Vision Fund

Reliance NRI Equity Fund

Reliance Equity Opportunities Fund

Reliance Quant Plus Fund (formerly Reliance Index Fund)

Reliance Tax Saver Fund


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Reliance Pharma Fund

Reliance Media and Entertainment Fund

Reliance Diversified Power Sector Fund

Along with the mutual funds of Reliance, Reliance Money also sells the mutual funds of

other companies like ICICI, HDFC, Kotak Mahindra, Birla Sunlife, cholamandalam, etc.

Reliance Mutual Fund has launched Forty Three Schemes till date, namely:

ABOUT RELIANCE LIFE INSURANCE

Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of

Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading

private sector financial services companies, and ranks among the top 3 private

sector financial services and banking companies, in terms of net worth. Reliance

Capital has interests in asset management and mutual funds, stock broking, life

and general insurance, proprietary investments, private equity and other

activities in financial services.

Reliance Capital Limited (RCL) is a Non-Banking Financial

Company (NBFC) registered with the Reserve Bank of India under

section 45-IA of the Reserve Bank of India Act, 1934.


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Reliance Capital sees immense potential in the rapidly growing

financial services sector in India and aims to become a dominant

player in this industry and offer fully integrated financial services.

Reliance Life Insurance is another step forward for Reliance Capital

Limited to offer need based Life Insurance solutions to individuals

and Corporate.

Achievements

RLIC has been one of the fast gainers in market share in new

business premium amongst the private players with an incremental

market share of 4.1% in the Financial Year 2007-08from 3.9% in

April 07 to 8% in Feb 08. ( Source: IRDA)

Also continues to be amongst the fast growing Private Life

Insurance Companies with a YOY growth of 195% in new business

premium as of Mar08.

A Company that has crossed 1.7 Million policies in just 2 years of

operation, post takeover of AMP Sanmar business.

Initiated Express LifeAn Unique Over the Countersales process

for Unit Linked Insurance Policies in the Industry.


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Accomplished a large distribution ramp-up in the Industry in a short

span of time by opening 600 branches in 10 months taking the

overall branch network above 740.

RLIC continues to be one of the two Life Insurance companies in

India to be certified ISO 9001:2000 for all the processes.

Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-

Certificate of Merit in the Financial Services category by Council

for Fair Business Practices (CFBP).

PLANS OFFERED BY RELIANCE LIFE INSURANCE

PRODUCTS

FOR INDIVIDUALS

PROTECTION PLANS

SAVINGS AND INVESTMENT PLANS

RETIREMENT PLANS

CHILD PLANS

EMPLOYERS LIABILITY SOLUTIONS

EMPLOYEE PROTECTION SOLUTIONS

EMPLOYEE VOLUNTARY BENEFITS


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2. SAVINGS AND INVESTMENT PLANS

In life, you have always given your family whatever they have wanted. Yet, there

are some promises you have to fulfill, such as taking your family for a vacation, or

buying that dream house. Set aside some money to achieve these specific goals

with the help of Reliance Savings & Investment Plans. The plan allows you to

experience the joys of life and provide for your familys needs. By this plan one

can save the money while making an investment.

3. RETIREMENT PLANS

You are a young and earning individual. The income you earn allows you to enjoy

life, your only worry being whether you will be able to continue the same lifestyle

after retirement. A Reliance Retirement Plan will help you save money for your

retirement. It ensures that you continue to get some income after retirement

thereby ensuring that you do not have to depend on any other person or make

any compromises to maintain the same lifestyle.


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4. CHILD PLANS

Being a parent is one of the joys of life. Your child looks up to you and

depends on you for love, protection and support. You want to provide your

child with the best in life.

The Reliance Child Plan helps you save systematically so that you can secure

your childs future needs. Be it higher education,his or her first home or any

other requirement, you will always be there for your child when he or she

needs you.

Protection plan Savings and investment

plan

Retirement plans Child plans

1. Reliance Term Plan 1. Reliance Super

InvestAssure Plan

1. Reliance Total

Investment Plan Series

II- Pension

1. Reliance Child Plan

2. Reliance Simple Term

Plan

2. Reliance Super

InvestAssure Plan Plus

2. Reliance Super Golden

Years Plan

2. Reliance Secure Ch

Plan

3. Reliance Special Term

Plan

3. Reliance Total

Investment Plan Series I


Years Plan Value

3. Reliance Super

InvestAssure Plan


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Insurance

4. Reliance Credit

Guardian Plan

4. Reliance Wealth +

Health Plan


Years Plan Plus


Health Plan

5. Reliance special

Credit Guardian Plan

5. Reliance Super

Automatic Investment

Plan


Health Plan

6. Reliance Endowment

Plan

6. Reliance Money

Guarantee Plan

6. Reliance Super

Automatic Investment

Plan

7. Reliance Special

Endowment Plan

7. Reliance Cash Flow

Plan

7 Reliance Money

Guarantee Plan

8. Reliance Connect 2

Life Plan

8. Reliance Super

Market Return Plan

9. Reliance Whole Life

Plan

9. Reliance Endowment

Plan


Health Plan

10. Reliance Special

Endowment Plan

11.Reliance Cash Flow 11. Reliance Whole Life


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Plan Plan

12. Reliance Super

Golden Years Plan

13. Reliance Super

Golden Years Plan Value

14. Reliance Super

Golden Years Plan Plus

15. Reliance Connect 2

Life Plan

16. Reliance Imaan

Investment Plan

17. Reliance Savings

Linked Insurance Plan


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FOR CORPORATES

As an employer, you believe in providing the best opportunities for your

employees while keeping the interests of the company in mind. How will you

strike a balance between the two? Reliance Life Insurance offers you a win-win

solution with Solutions for Groups. Not only are your employees covered for life

from accidents and disablements, you can also efficiently manage their future

with gratuity and pension plans.

1. Employers Liability Solutions

A. Group Superannuation

B. Group Gratuity

C. Group Leave Encashment Plan

2. Employee Protection Solutions

A. Reliance Group Credit Shield Plan

B. Reliance Group Term Assurance Plan

C. Group Term Insurance Plan- EDLI

3. Employee Voluntary Solutions

A. Group Savings Linked Insurance


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GENERAL INSURANCE

Fundamentals of General Insurance companies are business houses. The product

they sell is financial protection. To succeed and survive, they must cover their

costs, which include payments to cover the losses of policyholders, as well as

sales and administrative expenses, taxes and dividends. Insurance companies

have two sources of income for covering these costs: premium and investment

income. The premium are collected on a regular basis and invested in

Government Bonds, Gift stocks, mutual funds, real estates and other conservative

avenues. However, investment income depends on market conditions, interest

rates, economy etc and varies from year to year. Because of the uncertainty

associated with the investment income, insurance companies must generate

enough income form premium to cover the bulk of their expenses. The primary

function of insurance is to provide protection against financial losses caused by

unforeseen events. This protection is available to individuals, businessmen and

large companies alike.


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Types of General Insurance

Health

Individual Mediclaim

Group Mediclaim

Reliance Health Wise Policy

Personal Accident

Personal Accident

Group Personal Accident

Fire

Standard Fire and Special Perils

Consequential Loss (Fire)

Industrial All Risks

Engineering

Erection All Risks/Storage-cum-Erection

Contractors All Risks

Contractors Plant and Machinery


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Machinery Breakdown Insurance

Machinery Loss of Profits Insurance

Boiler and Pressure Plant Insurance

Electronic Equipment Insurance

Marine

Marine Cargo Insurance

Motor

Private Car Comprehensive

Liability

Directors and Officers Liability

Public Liability (Act)

Public Liability

Product Liability

Professional Indemnity

Workmens compensation

Miscellaneous


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Industry Care

Commercial Care

Office Package

Fidelity Guarantee

Burglary and Housebreaking

Money Insurance

Householders Package

Shopkeepers Package

Travel

Individual and Family

Asia

Student

Corporate

BASIC FEATURES

Hospitalization Expenses

Daycare Treatment


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Domiciliary Hospitalization

Pre and Post Hospitalization

Coverage of Pre-Existing Diseases

Critical Illness Cover

Donor Expenses

VALUE ADDED FEATURES

Expenses of accompanying person at the Hospital

Local Road Ambulance Services

Recovery Benefit

Cost of Health Check up

Nursing Allowance

Hospital Daily Allowance

POLICY FEATURES

Income Tax Benefit

Sum Insured

Pre-insurance Health Check up


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MARKETING STRATEGY

What is marketing?

According to Kotler marketing is an organizational function and a set of processes

for creating, communicating and delivering value to the customer and for

managing customer relationship in ways that benefits the organization as well as

its stakeholders. It is the art of choosing target markets and getting, keeping and

growing customers through creating, delivering and communicating superior

customer value.

Definition of marketing depends upon the core concepts like needs, wants,

demands, targeting, positioning, segmentation, products, services, value,

satisfaction


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Aspects of good marketing

STP concept

Segmentation: Segmentation is essentially the identification of subsets of buyers

within a market who share similar needs and who demonstrate similar buyer

behavior. The world is made up from billions of buyers with their own sets of

needs and behavior. Segmentation aims to match groups of purchasers with the

same set of needs and buyer behavior. Such a group is known as a 'segment' .

Segmentation is that part of the population on which the company gives its focus

and tries to get its customers from that area. Reliance money mainly gives focus

on people who are above 18 to 20 years.

Create Awareness

Induce Trial

Demonstrate Benefits

Build Brand Preference


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Targeting:

It is the second stage of STP concept. After the market has been separated into

its segments, the marketer will select a segment or series of segments and 'target'

it/them. Resources and effort will be targeted at that segmentation. It targets the

people whose income range is above Rs. 2.4 lacs and also to the business people.

Positioning:

It is the process by which marketers try to create an image or identity in the

minds of their target market for its product, brand, or organization. Reliance

money tries to position it as the safest firm for equity, commodity, Forex

transaction by providing additional security to its customers and also as the low

cost brokerage firm.

Strategy

Marketing strategy is the process which allows the organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage. Reliance Moneys strategy is designed in such

a way that which focuses on the customer satisfaction.


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Marketing strategy is the written plan which combines product development,

promotion, distribution, and pricing approach, identifies the firm's marketing

goals, and explains how they will be achieved within a stated timeframe. It

determines the target market segmentation, positioning, marketing mix and

allocation of resources.

According to market dominance it belongs to the challenger type. It follows the

horizontal integration strategy. Because its main product is the demat account.

But along with the demat account it also sells life insurance, general insurance,

mutual funds of Reliance as well as of

other companies. It is also known as the distribution house of Reliance Capital

because it distributes the products of different organizations along with products

of Reliance.

Reliance Money provides its products to its different customers according to

his/her needs. For example for a customer whose trading power is very low it

gives him the demat account of Rs. 1250/- If a customer is a heavy trader than it

gives him the demat account of Rs. 2750/- and if a customer is in between these

two then it gives him the demat account of Rs. 1750/- or of Rs. 2350/- It also

provides a token which gives the customer extra security because at the time of


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login along with the user ID and password, the token key is also required. This

token key number is a 7 digit number which changes after every 32 seconds. So

another person cannot login to the account even if he knows the user ID and

password as he does not have the token number. Because of this it is very secure.

They are also providing the services at a lower cost. Reliance Money charges the

least brokerage charges in India. They charge only 0.01% for delivery and 0.05%

for intraday which very very less as compared to other brokerage firms in India.

4Ps of Marketing

Product:the product of Reliance Money is the Demat account. It also provides the

Credit Card services. Along with the demat account it also sells other financial

products like Life insurance , General insurance, Mutual Fund, Gold coins, Money

transfer, Forex exchange, etc. it also provides the offline trading facilities through

Reliance Money partners in 5000 cities across India and through phone calls by

dialing 022-39886000. In Demat account one has various investment options line

Equity Trading at NSE/BSE, Derivatives Trading, IPO Investment, Commodity

Trading, Forex Trading, etc.


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Price:

The price they charge to open the Demat account is Rs. 1250. Out of which Rs.

750/- goes towards the administration and other charges and the rest Rs. 500/-

goes towards the purchasing a limit card which determines the turnover limit and

validity period of the account. If a customer is a heavy trader then he can opt for a

higher limit card to increase his/her purchase limit and validity.

Place:

Reliance Money branches are present all over India. Reliance Money has around

10,000 branches in around 5,000 cities in India. Their main target is the metro

cities and other big cities in India.

Promotion:

The products are mainly sold because of the sales people. So Reliance Money

mainly promotes or encourages its sales force to sell more. It also conducts

monthly campaigns and rewards the sales


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Distribution Channel/Channel Marketing

There are three distribution channels to distribute the products and services of

Reliance Money. They are as follows

1. Capital market channel:

This channel deals with the distribution of Demat accounts. In this channel

there is a team leader who is responsible for the sales in that territory. He

also assigns the tasks to his team members. So it is a group effort to attain

the target.

2. Emerging market channel:

This channel deals with the distribution of products like life insurance,

general insurance, mutual fund, etc. of Reliance Money. In this there is a

team head who assigns the task to the subordinates.

DistributionHead

Capital MarketChannel

EmergingMarket Channel

Direct SalesChannel


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3.Direct sales channels:

This channel distributes the products like life insurance, general insurance,

mutual fund of other companies like ICICI, HDFC, Cholamandalam, Birla life

insurance, TATA AIG etc. in this there is no team leader. Everyone has to do

the task individually.

They have tie-up with the DTDC courier to fasten the delivery of their products and

services.

TELEMARKETING

Telemarketing is a method of direct marketing in which a salesperson solicits to

prospective customers to buy products and services over the phone. It makes lead

generation for the business or if converted to sales builds business for the

company.

Reliance Money has tie-up with different banks like ICICI, HDFC, AXIS, IDBI and

other banks. So it gets data about the customers of these banks. This also makes

it easier for cold calling, lead generation and convert it to sales. First they

segregate the data collected from these banks and then find out who could be the

prospective customers. Then they call from the Reliance Money office and fix an

appointment with them. During the meeting they tell about the product and


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make the prospective customer to understand about the features of the

product/service and clarify their doubts. Then they try to convert it to sales.

Canopy

Reliance Money sets up canopy at different places to make aware about its

products to the people who are unaware about them. It is used as a promotional

tool and also helps in brand awareness. I have also got a chance to attend a

canopy for two days. It has also helped in lead generation.

ADVERTISEMENT

It makes its advertisement through news, press release, e-brochures and TV

commercials.

e-Sponsored programme : Reliance Money in partnership with CNBC

Awaaz, NSE and NSDL presents Pehla Kadam a national - level

investor education programme, focusing on guiding and educating first

time investors on the hows and whys of investment. It is a one-stop

destination providing solutions to all the dilemmas a new investor faces

at the start of any investment.


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SWOT ANALYSIS

The overall evaluation of a companys strength, weakness, opportunities and

threats is called as SWOT analysis. Its a way of monitoring the external and

internal marketing environment. Strength and Weakness are internal.

Opportunity and Threat are external.

STRENGTH

Brand image RELIANCE

Good database

Low pricing

Extra security

Aggressive sales force

WEAKNESS

Lack of loyal clients

Long time for customer query

clarification

Lack of any software for customers of

Demat account

OPPURTINITY

Increased spending power of customers

Rural markets are out of reach

Only around 20% people are insured in

the country

Unpredictable SENSEX

Changing mindset of people

THREATS

Competition from existing players

Competition from emerging

competitors

Unpredictable SENSEX


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RESEARCH METHODOLOGY

OBJECTIVE

The objective of the study is to find out the investment pattern of customers and

awareness about Reliance Money.

Type of Research : Exploratory Research

Size of sample : 50

Area of research study : Bhubaneswar

Sampling procedure : Convenient sampling

METHOD OF DATA COLLECTION

Primary data:

Procedure of data collection : Survey

Tools for data collection : Questionnaire

LIMITATIONS

1. The sample size is very less, hence the response of just 50 respondents

does not imply for the whole population.


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2. The findings of the survey are based on the opinion of respondents and

there is no way of assessing the truth of the statement.

3. There are some respondents bias which cannot be overcome.

DATA INTERPRETATION

Interpretation:it shows that most of the people are now investing in the share market rather

than in the mutual funds. So the customers are more aware about the share market now-a-

days.

shares

48%mutual funds

24%

bonds

18%

derivatives10%

1. PREFERENCE OF INVESTMENT


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Interpretation:

It shows that most of the people are aware about the online trading of shares.

This all happened because of the development in the IT industry. People know

about the computers and they are able to trade online.

yes

84%

no

16%

2. AWARENESS OF ONLINE TRADING


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Interpretation:

Most of the people are aware about the Reliance Money as a brand. This brand

awareness will help in the future to increase the market share of Reliance Money

and it is a good sign for Reliance Money.

yes

76%

no

24%

3. AWARENESS ABOUT RELIANCE MONEY


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Interpretation:

From the pie chart it is very much clear that ICICI and Reliance Money has equal market

share in the market. Its closest competitors are ICICI and India Infoline.

ICICI Direct

22%

Reliance Money

22%

India infoline

18%

kotak mahindra12%

India bulls

12%Others

14%

4. MARKET SHARE


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Interpretation:

From the graph it is very clear that around 1/3rd

of the customers i.e. 30% are not

satisfied with the present brokers. So there is a chance that Reliance Money can convert

these people to its customers.

yes

70%no

30%

5. SATISFACTION OF CUSTOMERS WITH CURRENT

BROKER


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Interpretation:

From the graph it is very much clear that satisfaction level of around 38% people are

below 60%. Only 42% people have a satisfaction level of more than 80%. It will help in

increasing the market share of the company.

below 20%14%

20% to 40%

14%40% to 60%

10%

60% to 80%

42%

80% to 100%

20%

6. SATISFACTION LEVEL


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Interpretation:

Share market gives the maximum return in todays world. Maximum people are doing

the trading daily and weekly manner. But 24% people are doing it in a monthly basis and

10% on yearly basis. It shows that there are very less people who invest in share market

for a longer period.

daily

26%

weekly

40%monthly

24%

yearly

10%

7. FREQUENCY OF TRADING


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8. INVESTMENT PATTERN AS PERCENTAGE EARNING

Interpretation:

It clearly shows that half the people are investing around 10% to 25% of their earning.

There are only few players who are investing more than 50% of their earning. This is

because of the volatile nature of the share market 88% people are investing below the

25% of their investment.

below 10%

38%

10% TO 25%

50%

25% TO

50%

10%

above 50%

2%


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CONCLUSIONS, FINDINGS AND SUGGESTIONS

FINDINGS

Most of the people are investing in shares now-a-days. So there is a

huge market for the brokerage firm.

The people who invest in share they know about Reliance Money and

most of the people are aware about Reliance Money.

Reliance Money has a great market share in the area. It is around 22%

which is a good sign. It can be a market leader.

Nearly 30% of the people are not satisfied by their current brokers and

satisfaction level is below 50% for 35%-40% customers. So they may

change their brokerage firms. Reliance Money can acquire these

customers.

Reliance Money provides the service at a cheaper cost as compared to

other brokerage firms in India.

They are present in all over India. They have around more than 10,000

branches in all over India.

The customers are happy with the brokerage cost.


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During interaction with the customers of Reliance Money, I found that

they are not happy with the customer service of Reliance Money.

SUGGESTIONS

Based on the findings of the project I would like to suggest the following

After sales services are very important for getting new references. So

trained telesales should be appointed for this purpose.

Reliance Money should mention in written that it charges only 1 paisa

on selling and not on buying because people are thinking that there are

some underlying charges involved.

Along with the limit card they have to go for the percentage brokerage

i.e. the charges should be charged based on the transaction amount or

turnover.

It should provide regular training programs for the advisors in order to

update their knowledge.

Reliance Money has different financial products like form Demat

account to general insurance. Each advisor is not aware about all the

products. So for them special training programs should be conducted.


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Reliance Money does not provide any software to the customers. Its

competitors are providing software to their customers. Also software

makes the customers feel easy for trading. So Reliance Money should

provide software to its customers.

Many people are not aware about the ULIP plan of life insurance. So

there is a huge scope to sell these ULIP policies to the customers.

CONCLUSION

Based on the markets survey and SWOT analysis and other market conditions I

have come to the following conclusions

Although Reliance Money is a new entrant to the market it became able to hold a

strong position in todays market. The sales force of Reliance Money mostly

consists of youngsters. They can be motivated easily to do a good job as they have

a long career to go for.

The stock market is very buoyant in the past 2-3 years. It also gives the maximum

return from all the investment options one have. So many people are interested

in stock market. Because of the recession most of the people are now not

investing in stock market. But as market going to stabilize the people will again

invest in equity.


87/90



Till now people know about only two types of insurance plans i.e. term plan and

endowment plan. They do not know about the ULIP plans. ULIP plan also provides

the high return as compared to other plans. So there is a market for the ULIP plan.

Also according to a survey only 18%-20% of people are insured. So there is a huge

market potential for the insurance sector. Mutual Fund is also a good option for

investment. It minimizes the risk with a higher return. Some people think that it a

type of gambling.

With FDI limit being relaxed a lot of avenues will open up in the insurance sector

and insurance companies are expected to come up with new good plans with a

great deal of customization and flexibility.

Questionnaire Form

1. In which of the financial instruments do you invest?

a. Shares c. Bonds

b. Mutual funds d. Derivatives

2. Are you aware of online share trading?

a. Yes b. No

3. Have you heard about Reliance Money?

a. Yes b. No


88/90



4. With which company do you have your demat account?

a. ICICI d. Kotak Mahindra

b. Reliance Money e. India Bulls

c. India Infoline f. Others

5. What differentiates your share trading company from others? (in regards of

brokerage, satisfaction, services, products, etc.)

6. Are you currently satisfied with your share trading company?

a. Yes b. No

7. What is your satisfaction level?

a. Below 20% d. 60% to 80%

b. 20% to 40% e. 80% to 100%

c. 40% to 60%

8. How often do you trade?

a. Daily c. Monthly

b. Weekly d. Yearly

9. How do you rate these share trading companies? (from 1 to 5)(ICICI,

Reliance Money, India infoline, Kotak Mahindra, India bulls, Others)

10.What do you think you require with your Demat account?


89/90



Personal Data

Name

Age

Sex M F

Phone number

Occupation


90/90


BIBLIOGRAPHY

Kotler

India Today Magazine

http://www.amfiindia.com

www.finance.indiamart.com

www.investorguide.com

http://www.quickmba.com/marketing/market-segmentation/

http://www.marketingteacher.com/Lessons/lesson_targeting.htm
http://www.amfiindia.com/http://www.amfiindia.com/http://www.finance.indiamart.com/http://www.finance.indiamart.com/http://www.investorguide.com/http://www.investorguide.com/http://www.quickmba.com/marketing/market-segmentation/http://www.quickmba.com/marketing/market-segmentation/http://www.marketingteacher.com/Lessons/lesson_targeting.htmhttp://www.marketingteacher.com/Lessons/lesson_targeting.htmhttp://www.marketingteacher.com/Lessons/lesson_targeting.htmhttp://www.quickmba.com/marketing/market-segmentation/http://www.investorguide.com/http://www.finance.indiamart.com/http://www.amfiindia.com/

Date post:	03-Jun-2018
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Marketing Strategic on Reliance Money

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