INTRODUCTION
INTRODUCTION OF THE TOPIC
1
The topic is to study the consumer preference towards investment in stock market.
DEMAT A/C is a pool of various scripts and securities, where as online trading A/C is a
tool of purchasing/ selling of shares or scripts online. These scripts are then transferred to
DP i.e. Depository account after three days.
This topic includes the practical experience of selling company product that is followed
by studying the consumer preference or interest towards share market. This is a market,
which is uncertain some time it gives huge profit and also vice versa; it depends up on the
investment customer made. This is a better option to have better returns on the invest-
ments then investing in banks, mutual fund or bonds et. But risk is high in this case.
This product offers customer two type of investment option INTRADAY and DELIV-
ERY both has there own benefits and limitation but a better way to have more returns on
investment. Intraday means investing in share market for a day i.e. purchasing and selling
of the share in one day. Delivery is purchasing share and selling those shares next day. A
strategy that focuses on developing a unique long-run competitive position in the market
by assessing consumer needs and the firm's potential for gaining a competitive advan-
tage.A business’ approach to marketing its products/ services expresses in broad terms,
which forms the basis for developing a marketing plan.
Marketing starts with market research, in which needs and attitudes and competitors'
products are assessed, and continues through into advertising, promotion, distribution,
and, where applicable, customer servicing and repair, packaging, and sales and distribu-
tion.
The broad marketing thinking that will enable an organization to develop its products and
marketing mixes in the right direction, consistent with overall corporate objectives.
OBJECTIVE OF THE STUDY
2
1) Main objective
To find what marketing strategies is adopt by sharekhan for promotion
of the product & creating the customer.
2) Specific Objective
A) Comparison between sharekhan & its competitors;
B) Marketing of the product;
C) Why invest through sharekhan ltd.;
D) Motivating customer for trading;
JOB DISCRIPTION
The company placed me as a Summer Trainee. I have been handling the
Following responsibilities:
Ø My job profile is to coordinate the team and also help them to sale the product and
also help them in field.
Ø My job profile is to generate the lead by cold calling.
Ø My job profile is to understand customers’ needs and advising them to make a
portfolio as per their investment.
Ø My job profile is to do sales promotion through e-mails, canopies, making cold
calling, distributing pamphlets and etc.
Ø My job profile is to convince customer for investment in Commodity.
AREA ASSIGNED
I covered areas Delhi (pitampura)
TARGET MARKET
3
Ø Different properties dealers.
Ø Charted accountants.
Ø Lawyers
Ø Travel agencies
Ø Transport business
Ø House wives
Ø Businessmen
Ø Corporate employees etc.
DAY TO DAY JOB EXPERIENCE
· Reporting time: 9.30 AM
· Fixing appointment with clients.
· Visit clients place.
· Demonstrate the product on Internet to the client.
· Completing the formalities like filling the application form and documentation.
· Cold calling.
4
SHAREKHAN LTD.
BACKGROUND OF SHAREKHAN LTD.
5
Sharekhan is one of the leading retail brokerage of SSKI GROUP, which is running suc-
cessfully since 1922 in the country. It is the retail broking arm of the Mumbai-based
SSKI Group, which has over eight decades of experience in the stock broking business.
Sharekhan offers its customers a wide range of equity related services including trade ex-
ecution on BSE, NSE, Derivatives, depository services, online trading, investment advice
etc.
The firm’s online trading and investment site- www.sharekhan.com was launched on Feb
8, 2000. The site gives access to superior content and transaction facility to retail cus-
tomers across the country. Known for its jargon-free, investor friendly language and high
quality research, the site has a registered base of over one-lakh customers. The number of
trading members currently stands at over 3 Lacs. While online trading currently accounts
for just over 2 per cent of the daily trading in stocks in India, share khan alone accounts
for 32 percent off the volume traded online.
The content-rich and research oriented portal has stood out among its contemporaries be-
cause of its steadfast dedication to offering customers best-of-breed technology and supe-
rior market information. The objective has been to let customers make informed deci-
sions and to simplify the process of investing in stocks.
On April 17, 2002 Share khan launched Speed Trade, a net-based executable application
that emulates the broker terminals along with host of other information relevant to the
Day Traders. This was for the first time that a net-based trading Pstation of this caliber
was offered to the traders. In the last six months Speed Trade has become a de facto stan-
dard for the Day Trading community over the net.
Share khan’s ground network includes over 588 centers in 170 cities in In-
dia, of which 32 are fully owned branches.
SSKI Group Companies
• SSKI Investor Services Ltd (Sharekhan)
• S.S. Kantilal Ishwarlal Securities
• SSKI Corporate Finance
6
• I dream Productions
SSKI- CORPORATE STRUCTURE
SSKI INVESTOR SERVICES PVT. LTD.
SSKI AS AN INSTITUTIONAL BROKER
Serving institutional Investors- Domestic/ International
· In the Indian securities business since 1922………
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SSKI Securities Pvt. Ltd.
Morakhia Family Associates 100%
Retail broking arm of the group: - Shareholding pattern: 55.5%Morakhia family (promoters) 18.5% HSBC Private Equity India Fund Ltd. 18.5% First Carlyle Ventures, Mauritius 7.5% Intel Pacific Inc.
SSKI Corporate Finance Pvt. Ltd.Investment Banking arm of the group Shareholding pattern: 50.5% SSKI Securities Pvt. Ltd. 49.5% Morakhia family
· Our institutional Research team is rated as one of the best in the in-dustry.
· Rated 1st by Asia Money.
Sharekhan Business
1 Brokering business
2 White feathering house production
Vision:-
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From sharekhan.com to India’s largest chain of branded retail share
Shops
588 branded share shops across 170
cities in India
To be the best retail brokering Brand in the retail business of stock market.
Mission:-
To educate and empower the individual investor to make better investment decisions
through quality advice and superior service.
PRODUCTS OFFERED BY SHAREKHAN LTD.
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Share khan Ltd. Offers following products: -
1) CLASSIC ACCOUNT: -
This is a User Friendly Product, which allows the client to trade through websites www.
Sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers
to invest in stocks or who do not trade too frequently.
Features:-
· Integration of On-line trading, Saving Bank and Demat Account.
· Instant cash transfer facility against purchase & sale of shares.
· Competitive transaction charges.
· Instant order and trade confirmation by E-mail.
· Streaming Quotes.(Cash & Derivatives)
· Personalized market watch.
· Single screen interface for Cash and derivatives and more.
· Provision to enter price trigger and view the same online in market watch.
2) SPEEDTRADE ACCOUNT: -
SPEEDTRADE is an internet-based software application that enables you to buy and sell
in an instant.
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It is ideal for active traders and jobbers who transact frequently during day’s session to
capitalize on intra-day price movement.
Features:-
· Instant order Execution and Confirmation.
· Single screen trading terminal.(NSE)
· Real-time streaming quotes, tic-by-tic charts.
Market summary (Cost traded scrip, highest calue etc.)
· Hot keys similar to brokers terminal.
· Alerts and reminders.
3) ONLINE IPO’s: -
Share khan is tie up with nine banks for online fund transferring i.e. HDFC, ICICI,
IDBI, CITI, Union Bank of India, oriental Bank of Commerce, INDUSIND, Yes Bank
and UTI bank for online money transfer. You can apply all the forthcoming IPO online
hasselfree, paperless and time saving work.
4) Mutual Fund Online: -
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You can apply to Mutual Funds of SBI, Birla, Sundaram, HDFC, central bank, re-
liance etc. With share khan hasselfree, paperless and time saving works.
Share khan help you to choose the right Mutual Funs for your investment by pro-
viding you information on Top Gainers/Losers, Schemes Comparison, Ranking of
Various MFs, NAV History of MFs and their performance.
5) Trade in Commodities.
6) Mutual Fund Advisory.
7) Portfolio Management Services.
SERVICES OFFER BY SHAREKHAN LTD .
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REASONS TO CHOOSE SHAREKHAN LTD.
Experience
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Research Based
Investment Advice
Training and
SeminarsInvestment and
Training Services
EQUITIES DERIVATIESCOMMODITIES
Technology Based
Investment Tools
Integrated Demat
Facility
SSKI has more than eight decades of trust and credibility in the Indian stock market. In
the Asia money broker’s poll held recently, SSKI won the ‘India’s best broking house for
2004’award. Ever since it launched Share khan as its retail broking division in February
2000, it has been providing institutional-level research and broking services to individual
investors.
Technology
With online trading account you can buy and sell shares in an instant from any PC with
an Internet connection. You will get access to our powerful online trading tools that will
help you take complete control over your investment in shares.
Accessibility
Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for
investors. These services are accessible through our centers across the country (over 588
locations in 170cities)over Internet (through the website www.sharekhan.com) as well
as over the Voice Tool.
Knowledge
In a business where the right information at the right time can translate into direct profits,
you get access to a wide range of information on our content-rich portal, share khan. You
will also get a useful set of knowledge-based tools that will empower you to take in-
formed decisions.
Convenience
You can call our Dial-N-Trade number to get investment advice and execute your trans-
actions.ithasdedicated call- center to provide this service via a toll free number 1800-22-
7500 & 1800-227050 from anywhere in India
Customer Services
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Our customer service team will assist you for any help that you need relating to transac-
tions, billing, demat and other queries. Our customer service can be contracted via a toll
free number, e-mail or live chat on www.sharekhan.com.
Investment Advice
Share khan has dedicated research teams of more than 30 people for fundamental and
technical research’s. Our analysts constantly track the pulse of the market and provide
timely investment advice toe you in the form of daily research emails, online chat, printed
reports and SMS on your mobile phone.
STOCK EXCHANGE MUMBAI
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Sharekhan is the retail broking arm of SSKI, an organization with more than
eight decades of trust & credibility in the stock market.
• Amongst pioneers of investment research in the Indian market
• In 1984 ventured into Institutional Broking & Corporate Finance.
• Leading domestic player in Indian institutional business
• Over US$ 5 billion of private equity deals
LITERATURE REVIEW
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GENERAL INTRODUCTION
DP (Depository Participants)
As an investor you open a securities account with a DP. DPs are attached to the deposito-
ries very much the same way as commercial banks are attached to RBI . All interactions
including account opening, dematerialization, transactions, pledge etc are done through
the DP.
Reasons to choose DP
You can select your DP to open a demat account just like you select a bank for opening a
savings account. Some of the important factors for selection of a DP can be:
Convenience: proximity to the office/residence, business hours.
Comfort: reputation of the DP, past association, range of services etc. Find out if the DP
is in a position to give the specific service you may need.
Cost: the service charges levied by DP and the service standard.
Dematerialization:-
The dematerialization system is an alternative to the physical existence of securities. In this
system securities are converted into the electronic form and deposited in a depository
account in the investors name.
In order to dematerialize certificates, an investor will have to first open an account with a
DP and then request for the dematerialization of certificates by filling up a Dematerializa-
tion Request Form (DRF), which is available with the DP, and submitting the same along
with the physical certificates. The investor has to ensure that before the certificates are
17
handed over to the DP for demat, they are defaced by marking "Surrendered for Demateri-
alization" on the face of the certificates.
Procedure for selling dematerialized securities
The procedure for selling dematerialized securities in stock exchanges is similar to the
procedure for selling physical securities. Instead of delivering physical securities to the
broker, you instruct your DP to debit your account with the number of securities sold by
you and credit your broker's clearing account. This delivery instruction has to be given to
your DP using the delivery instruction booklet received from the DP at the time of open-
ing the account. The procedure for selling securities is given here below:
· Investor sells securities in any of the stock exchanges linked to NSDL through a
broker.
· Investor gives instruction to DP to debit his account and credit the broker's (clear-
ing member pool) account.
· Before the pay-in day, investor's broker gives instruction to his DP for delivery to
clearing corporation.
· The broker receives payment from the stock exchange (clearing corporation).
· The investor receives payment from the broker for the sale in the same manner
payment is received for a sale in the physical mode.
PROCESS ON ACCOUNT OPENING
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LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES
CONTACT
TELEPHONE AND PERSONAL VISIT
APPOINMENT
DEMONSTRATION
AGREE DISAGREE
DOCUMENTATION
FILLING THE FORM
SUBMISSION THE FORM
LOGIN OF THE FORM
SENDIND ACCOUNT OPNING KIT TO CUSTOMER
TRADING
DOCUMENTS:
1) Photo ID Proof
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NO
2) Residence Proof (Permanent)
· Passport
· Pan Card
· Driving Licence
· Voter's ID
· Passport (valid)
· Voter's ID
· Driving Licence (valid)
· Bank Statement (latest)
· Telephone Bill (latest)
· Electricity Bill (lates)
· Ration Card
· Flat Maintanance Bill (latest)
· Insurance Policy (latest)
· Leave-Licence/Purchase Agreement
3) Residence Proof (Correspondence)
· Passport (valid)
· Voter's ID
· Driving Licence (valid)
· Bank Statement (latest)
· Telephone Bill (latest)
· Electricity Bill (lates)
· Ration Card
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· Flat Maintanance Bill (latest)
· Insurance Policy (latest)
· Leave-Licence/Purchase Agreement
4) Two Photographs (Passport size)
ACCOUNT OPPENING CHARGES:-
1 For classic account Cheque of Rs. 750/= In Favour of M/s S.S.Kantilal Ishwarlal Se-
curities Pvt. Ltd. or Rs. 500/= or 350/= in case of corporate offer.
Or
1 For Speedtrade Account Cheque of Rs. 1000/= In Favour of M/s S.S.Kantilal Ish-
warlal Securities Pvt. Ltd.
ACOUNT OPENING CHARGES COMPARISION
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Charge Classic Account Speedtrade Account
Account Open-
ing
Rs. 750/= Rs. 1000/=
* Refundable in case the brokrage is more than Rs. 500/= p.m.
*Taxes as per govt.
Depository Charges
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Account Opening Charges
Rs. NIL
Annual Maintenance Charges Rs. NIL first year
Rs. 300/= p.a. from second year onward
Brokerage: 0.03 % Plus Taxes for Each leg of Intra-day trade 0.30 % Plus Taxes for
trades resulting in delivery Minimum Brokerage Intra Day Per Share: 5 Paisa each
leg (buy or sell) for Intra-day Trades (For eg on a Rs 20 Scrip, brokerage @0.1% = 2 p,
but there is a min chargeable amt of 5 p).
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SHARKHAN SERVICES
Dial-N-Trade
Along with enabling access for your trade online, the CLASSIC and SPEEDTRADE
ACCOUNT also gives you our Dial-n-trade services. With this service, all you have to
do is dial our dedicated phone lines 1-800-22-7500.
IPO ON-Line
Can apply all the forthcoming IPO online hasselfree.
Research tips
Company provide 4-6 e-mails to there customers per day
Online trade in shares
Sharekhan customers can online trade through there computers, through Internet during
the market timings
Online fund transfer
We have tie up with seven banks for online fund transferring i.e. ICICI , HDFC, IDBI,
CITI, UBI, OBC, INDUSIND and UTI bank for online money transfer.
Ø Research Based Investment Advice
Ø Investment and Trading Services
Ø Training and Seminars
Ø Technology Based Investment Tools
Ø Integrated Demat Facility
Ø COUSTOMRE CAN TRADE IN
Equities, Derivative, Commodities
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CLOSURE OF ACCOUNT
1. CLOSURE ON CLIENT’S REQUEST
A DP can close a depository account on receipt of an application in the prescribed format.
The application should be made by the account holder or by all the joint-holders. An ac-
count can be closed only when there is no balance in the account. In case there is any bal-
ance in the account sought to be closed, the following steps are necessary.
(a) Re-materialization of all securities standing to the credit of the account at the time of
making the application for closure; or
(b) Transferring the balance to the credit of another account opened by the same account
holder(s) either with the same participant or with a different participant. Before closing
the account the DP should ensure that all pending transactions have been settled. The re-
quest for closure should be processed only after ensuring that there is unbalance lying in
the account.
2. CONSOLIDATION OF ACCOUNT
Some clients could have opened multiple accounts to dematerialize their shares held in
multiple combination and sequence of names. However, they may not need so many ac-
counts after they have dematerialized their shares and may want to bring all their share
holdings into one or fewer accounts. This can be achieved by using normal off market
transfer instruction.
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3.CLOSURE BY DP
The DP may also initiate closure of a client's account if the client has defaulted in per-
forming its obligations laid out in the client-participant agreement. The participant should
give sufficient notice to the client before initiating closure of his account. The notice
should clearly state the reasons for closure of account. The process of closing account in
such a case is the same that of client-initiated closure.
CLOSURE /SHIFTING OF CLEARING ACCOUNT
A clearing member may transfer its clearing account from one DP to another DP. For
this, simultaneously applications have to be made for closure of account to the earlier DP
and for opening of new clearing member account to the new DP. On receipt of the appli-
cation, the new DP forwards the application to the depository for approval and allotment
of a new CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens a
New clearing account and intimates the depository about the new client-ID. On receipt of
intimation from the new participant, the depository advises the old DP to close the ac-
count. The old DP then closes the account and intimates the clearing member. All payout
of securities, subsequent to closure of old clearing account, take place in the new account.
26
REARSEARCH METHODOLOGY
REAEARCH METHODOLOGY
27
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with logic behind him. Why a research study has been undertaken, how a research
problem has been defined, in what way and why the hypothesis has been formulated,
what data have been collected and what particular method has been adopted, why particu-
lar technique of analyzing data has been used and a host of similar other questions are
usually answered when we talk of research methodology concerning a research problem
or study.
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and
analysis of in a manner and aims to combine relevance to the research purpose with econ-
omy in procedure. In fact the research design is the conceptual structure within which re-
search I conducted. Research design is needed because it facilitates the smooth sailing of
the various research operations thereby making research as efficient as possible yielding
maximum information with minimal expenditure of effort, time and money.
I have adopted descriptive and conclusive research design. Descriptive research is those
studies, which are concerned with describing the characteristics of a particular individual
or a group. Since the aim is to obtain the accurate information about the customer in
terms of his interest towards investment in stock sector. I have used the techniques of
questioning customer in order to know their consumer behavior, their interests, their
needs and etc.
It is very important for the sales executive to study the mind of the customer so that the
personal visit would not be a waste of time, money and efforts.
28
DATA SOURCES:
The researcher can gather primary data, secondary data or both. Secondary
data are data that were collected for another purpose and already exist somewhere. Pri-
mary data are data specially gathered for a specific purpose or for a specific research
project. When the needed data do not exist or are outdated, inaccurate, incomplete, or un-
reliable, the researcher will have to collect primary data. Most marketing research
projects involve some primary data collection.
PRIMARY DATA:
I have collected primary data through personal references;
LMS i.e. Leads management system of the company;
Customer references;
SECONDARY DATA:
The main source of information for the project was
Ø Weakly magazine;
Ø Telephone directory
Ø Used leads of the company;
Ø Leads of the other company; i.e. telephone list for tele calling;
CONTACT METHOD:
29
The marketing researchers have four choices to contact the respon-
dents:
ü Mail,
ü Telephone,
ü Personal and
ü Online. I chose the above techniques to reach to the customer in a
most convenient method.
30
LIMITATIONS
· Lack of awareness of Sharekhan and stock market:
Since the area is not known before it takes lot of time in convincing people to start in-
vesting in shares primarily in IPO’s.
· Some people are comfortable with traditional system:
As people are doing trading from there respective brokers, they are quite comfortable
to trade via physical form of paper, they want to trade off line, i.e. through telephone
or etc.
· Lack of Techno Savvy people and poor internet penetration:
Since most of the people are quite experienced and also they are not techno savvy.
Also Internet penetration is poor in India.
· Some respondents are unwilling to talk:
Some respondents either do not have time or willing does not respond, as they are
quite annoyed with the phone call.
· Inaccurate Leads:
Sometimes leads are provided which had error in it, which varies from only 5-digit
phone number to wrong phone number, some people have registered to know about
their personal quarries. They are the unsatisfied clients of the company.
· Misleading concepts:
Some people think that as all the shares are in electronic form and they don’t have
any physical proof. Sometimes this leads to a great misconception of the entire
process.
31
MARKETING STRATEGIES OF SHAREKHAN
Marketing strategy?
32
A strategy that focuses on developing a unique long-run competitive position in the mar-
ket by assessing consumer needs and the firm's potential for gaining a competitive advan-
tage.
· A business’ approach to marketing its products/ services expresses in broad terms,
which forms the basis for developing a marketing plan.
· Marketing starts with market research, in which needs and attitudes and competi-
tors' products are assessed, and continues through into advertising, promotion,
distribution, and, where applicable, customer servicing and repair, packaging,
and sales and distribution.
· The broad marketing thinking that will enable an organization to develop its prod-
ucts and marketing mixes in the right direction, consistent with overall corpo-
rate objectives.
MARKETING STRATEGIES OF THE COMPANY
v Tele Calling: -
33
The company uses the tele calling/ phone calling to reach the
customer, which are interested. This is the most important technique to save time
and giving demo of the companies product through making call in order to know
the customer interest towards the product. This is the strategy with which one can
motivate customer to go for the product and etc.
v LMS:
It is leads management system which means leads are generated by
the customer who want to purchase the product of the company. Company pro-
vide facility to the customer on online to fill the registration form through which
the companies executives can provide more information to the customer.
v Yellow Pages:
Yellow pages are used to gather data for making calls so that cus-
tomer who did not fine time and are unaware of the product can know about the
product. Customers are given freedom to ask question related to the products this
is the technique used to increase the awareness of the company.
v Canopy’s:
This is the most important technique used by sharekhan securities to market its
product in different areas of the city, company put their canopies and customer
who are willing to know about the product come forward and provide best of their
knowledge. Besides this companies executives ask customer to fill the question-
nair that tells the company about the levels of brand awareness. It also increases
the product awareness because it is generally put at the crowdies places like near
main markets, cinema s, hotels, ATM or etc where people come in good numbers.
34
v Direct Marketing
Sharekhan executive’s reaches to the does of the customer by
fixing appointments with the interested customer, they describe the details of the
product. Executive give demonstration of the products so that customer can un-
derstand better.
v Advertising:
Advertising is the most important tool of increasing awareness of
the product and this is the most widely used technique by the company to tell
about the new features and new lunch by giving briefing of the product.
Sharekhan use banners, distribution of pamphlets, and advertisement in newspa-
pers, magazines.
v References:
Sharekhan strategy is to satisfy the customer in terms of their need by
providing them timely services and knowledge about the trade in equities, mutual
funs by giving tips for investment advises through e-mails or toll free calls for this
purpose customers are provided relationship manager who give investment advise
and also make transaction on their behalf on demand. B satisfying customer exec-
utives ask their references that not only increase the awareness but also increase
the good will of the company.
v Competitiveness:
The company is innovative and uses the latest tech-
nology to improve the product to fulfill the demands of the customers. Sharekhan
35
make it easy for the customer to make online transaction of shares. The company
is competitive in terms of the product price and facilities it offers to the customer.
v Internet:
Company provides detailed information about the products on Internet
so that customer can know about the product easily and completely.
UNIQUE OBJECTIVE OF THE COMPANY
• 200000+ retail customers being serviced through centralized call centre / web
solution
• 60 branches, semi branches servicing affluent/aggressive traders through highly
skilled financial advisors
• 250 independent investment managers/franchisees servicing 50000 highly valued
clients
• Strong advisory role through Fundamental & technical research
• New initiatives - Portfolio Management Services & Commodities trading.
• Dealing in mutual funds.
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37
COMPETITOR ANALYSIS
5PAISE.COM
Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-brok-
ing was started under the brand name of 5 paisa.com. Apart from offering online trading
in stock market the company offers mutual funds online. It also acts as a distributor of
various financial services i.e GOI securities, Company Fixed Deposits, Insurance. Lim-
ited ground network, present in 20 Cities
Charges for Demat:
Account opening charge :- 750 Rs.
Intra day cut off time 3 pm
DELIVERY:- 0.87%
INTRADAY:- 0.12%
Transaction charges Rs.23 or 0.04% of transaction
Annual Maintenance Charges:- Rs.300
38
KOTAK STREET
Company Background
Kotakstreet is the retail arm of kotak securities. kotakstreet, caters exclusively to your
stock broking and investment requirements. Kotak Securities needs no introduction as
one of the largest stock broking houses in the country and a leading distributor of primary
market offerings Kotak Securities limited is a joint venture between Kotak Mahindra
Bank and Goldman Sachs, Pricing For Kotak
SOME FEATURES OF KOTAKSTREET:-
Account Opening charge :- 750
INTRADAY:- 0.10
DELIVERY:- 0.25
39
INDIABULLS
Company Background
India Bulls is a retail financial services company present in 70 locations Covering 62 cit -
ies. It offers a full range of financial services and Products ranging from Equities to In-
surance. 450 + Relationship
Managers who act as personal financial advisors
•POA for Clients DMAT
All shares held by client trading with IB are moved to IB Pool Account and the same is
shown as a reflection in client DP account. Charges are levied to move shares from IB
pool Account to client DP account
SOME CHARGES IN INDIABULL:-
Account opening charge:- 750
Annual Maintenance Charges Rs.:- NIL
INTRADAY:- 0.15
DELIVERY:- 0.64
Intraday cut off time 3:10pm
Annual Maintenance Charges :- NIL
40
ICICI Direct
Company Background
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of
ICICI Bank Limited and the Website is owned by ICICI Bank Limited
Demat Charges:
account opening charges:- 975 Rs.
INTRADAY:- 0.27
DELIVERY:- 0.55
Transaction Charges (selling) Rs.15 or 0.04% of transaction
Intra day cut off time 3 pm
Annual Maintenance Charges Rs.350
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HDFC SECURITIES
Company Background
The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates pro-
mote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the
largest team of Tele-brokers
DEMAT ACCOUNT WITH HDFC:-
· It is conversion of physical shares into electronic form.
· Dematerialization charges
· Rs. 3 per share certificate
· Folio charges are Rs.150 per annum.
· Buying and selling transaction through brokers –Charges are 0.05% of transaction
value
· Intra day cut off time 3 pm
Off market transactions charges - 0.04% of transaction value
CHARGES FOR DEMAT ACCOUNT:-
Account opening charge :- 750
Yearly charge: 450 per year
Annual Maintenance Charges:- Rs.500
42
SWOT ANALYSIS
A SWOT analysis focuses on the internal and external environments, examining strengths
and weaknesses in the internal environment and opportunities and threats in the external
environment.
STRENGTHS
Services
As a product Sharekhan is a extremely innovative product with very less
cost. Services like online trading facility, institutional and domestic broking, customized
research reports with almost 80% efficiency etc give Sharekhan an edge over its competi -
tors. Sharekhan provides other support services that make retail investors more confident
and assured with their trading. SMS alerts (allowing traders and investors to make the
most of the available opportunities), Softer, intangible features like imagery, equity driv-
ing preference. Through efficient trading processes Investors can place their orders di-
rectly on the Internet, do all the information seeking and basically own the investing
process.
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Distribution Network
Sharekhan with almost 1200 branches spread across 500 cities beefed up
by comprehensive online research, advice and transaction services. In near future expect
to make 200000+ retail customers being serviced through centralized call centre / web so-
lution,
60 branches/semi branches servicing affluent/aggressive traders through highly skilled fi-
nancial advisors, 250 independent investment managers/franchisees servicing 50000
highly valued clients, strong advisory role through Fundamental & technical research and
new initiatives are being made in Portfolio Management Services & Commodities trad-
ing.
Marketing
Sharekhan is a product of SSKI, a veteran equities solutions company with over
decades of experience in the Indian stock markets. Sharekhan does not claim expertise in
too many things. Share khan’s expertise lies in stocks and that's what it talks about with
authority. So when he says that investing in stocks should not be confused with trading in
stocks or a portfolio-based strategy is better than betting on a single horse, it is something
that is spoken with years of focused learning and experience in the stock markets.
Products
Company’s product line is quite flexible in the sense that there is a product for every kind
of investors. Also all the products cover all the loopholes of all the products offered by
the other competitors like low cost, user-friendly online trading services etc.
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WEAKNESS
Customer Satisfaction
As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking
house catering to heavy investors or small segment of the market can afford to and does
provide relationship managers for their customers, who can understand the trading needs
of individual customers, and advise accordingly. However, a broking house like
Sharekhan, which caters to the mass segment, is in no position to provide relationship
managers for individual customers.
Branding
Though the company has a efficient products but large part of investment interested
population does not know the company. The most basic expectation for a trader or in-
vestor when one begins trading is that one must get timely delivery of shares and pro-
ceeds from sale of shares. Also ones cash balances with the broker must be safe and se-
cure. Though this confidence in the broker comes with time and experience, good and
transparent practices also play a major role in imbibing confidence in traders.
Competition from banks
Most of the banks due to good branding have the faith of the customers of their
banking database. So they enjoy the liberty of huge database and customers find it more
reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank
and ICICI Bank have the advantage of linking the trading accounts of their customers to
saving accounts. This makes trading easier, and at the same time a trader withdraws ex-
actly as much money from his account as is needed to complete the trade. Similarly sales
proceeds are credited directly to saving account.
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OPPORTUNITIES
The external environment analysis may reveal certain new opportunities for profit and
growth.
Ever-increasing market
After the NSE brought the screen based trading system stock markets are now more
secured which has attracted lot of retail investors and the demand is increasing day by
day. This has resulted in improved liquidity and heavy volumes on transactions.
Sharekhan is one of the early entrants here. As to how much it will roar and how swift it
can swoop on the market, the future alone can answer such queries. Sharekhan has been a
mega player and is known for being a mover of stocks. It is also known for putting big
deals through and enjoys good networking with the FIIs. It has been dynamic enough to
move with the times and capture the opportunities that the market throws up from time to
time.
Improving Technology
In country like India technology is always improving which gives the com-
pany a chance to keep on improving their product with time whereas for the small players
like local brokers it will be difficult to keep the same pace as the changing technology.
Also with SEBI lying down some strict guidelines small brokers are finding it harder to
retain the customers with no research department and small capital. The traditional busi-
ness model is highly dependent on a large network of sub-brokers, and many established
players may not have systems (technology, customer service, etc.) capable of directly ser-
vicing so many retail customers.
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Unfulfilled needs of the customers
With so many competitors offering their products in the market but no one is able to
completely satisfy the customers. Some have the problem of lack of information or some
were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this
unsatisfied set of customers and to make hold in the market. The Internet serves to break
all barriers to information, as it offers an extremely hassle-free investing platform. And,
Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by
Sharekhan itself was born out of the consumer's need for a more transparent, easy to un-
derstand and convenient option of investing in stocks.
Education Level
The education level in the country is improving year after year as far as
technology goes. With that the understanding of the stock market is also increasing and a
lot of retail investors are steeping in the markets which is being shown by increasing vol-
umes, transactions and indices.
THREATS
New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste
the flavor of this cherry. This is creating a lot of competition for large players like
Sharekhan and it is creating little confusion in the minds of the customers about the ser-
vices provided by the broker. Also many banking firms are entering into the market with
huge investment. Competitors like icici, kotak, hdfc, 5-paisa etc. are posing a lot of
threats to the company.
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Technology based business
Online trading is totally based on the technology, which is quite com-
plex. Typically, the technology solution has to start from the Internet front-end (or
the screen that you see when you begin trading). Then it needs to get into the 'mid-
dle tier' of risk management systems that assess data from banks and depository
participants (DP), calculate client risk at that point in time, and give the 'Go/No go'
advice to the trade. So technology is a kind of threat because unless until it is
working properly it is good but Internet is not that safe. Though a lot of cyber laws
are being made but not yet executed.
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OBSERVATIONS AND ANALYSIS
DATA ANALYSIS
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6.1 Market share of share-khan securities
COMPANY MARKET SHARE
ICICI Direct 28.00%
Sharekhan 24.00%
Indiabulls 22.00%
5 Paisa 20.00%
HDFC 6.00%
28%
24%22%
20%
6%
ICICI Direct
Sharekhan
Indiabulls
5 Paisa
HDFC
INTERPRETATION:-
The above data describes the market share of the sharekhan competitors in which share
has the second highest market share among all its competitors heaving customer base of
more then or approximate 4.5 lack.
6.2 COMPETITORS BROKERAGE COMPARISION
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COMPETITORS BROKER-
AGE INTRA DAY DILIVERY
ICICI direct 0.27% 0.55%
HDFC securities 0.10% 0.50%
INDIA BULLS 0.15% 0.64%
SHARE KHAN 0.1% 0.5%
5 PAISA 0.12% 0.87%
INTERPRETATION:-
The above is the detail of the companies’ brokerages in which sharekhan has com-
petitive brokerage over others in which there reduction of the brokerage depending
upon the deal between client and the customer.
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6.3 GROWTH RATE OF SHAREKHAN
GROWTH RATE IN % YEAR
2.5 2007
3.1 2008
3.6 2009
4 2010
4.5 2011
GRAPH NO. 6.B
INTERPRETATION:-
The above graph shows the growth rate of the company from 2006 to 2010, which shows
the increase in the growth trend.
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SHAREKHAN Growth
6.4 GROWTH RATE OF COMPETITORS:-
COMPANY Year 2009-10
HDFC NIL
5 Paisa 2%
Indiabulls 1%
Sharekhan 4%
ICICI 5%
GRAPH NO. 6.C
INTERPRETATION:-
The above graph show that ICICI direct is no. 1 in the growth rate of the competitors and
sharekhan on the 2nd position. HDFC securities are lowest in the growth rate.
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ICICI
Indiabulls
6.5 COMPARISON ACCORDING TO NO. OF CUSTOMER
COMPANY MARKET SHARE
No of customer in lack
ICICI direct 7
SHARE KHAN 4.5
INDIA BULLS 2.5
5PAISA 2.4
HDFC securities 1.1
GRAPH NO. 6.D :-
INTERPRETATION:-
The above graph shows the market share of the customer we are at position no two heav-
ing customer base of around 4.5 lakh customer, ICICI heaving the maximum and HDFC
has the minimum customer.
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6.6 Client acquisition ( During the Project of Two month(1ST June 2011 to 31st july
2011):-
Clint Acquisition (Approx.)
Total Data 3000
Calls made 2700
Responses 1200
Appointment fixed 130
Appointment confirmed 45
Appointments converted 26
GRAPH NO. 6.E:-
INTERPRETATION:-
The above graph shows the numbers of customer (appr.)That has reached through the
marketing tools and technique. Approximately out of 3000 clients finally 26 were con-
verted.
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6.7 Trading through website or software:- COMPANY NAME FACILITY
Sharekhan both
ICICI direct website
HDFC securities website
5paisa both
Indiabull website
INTERPRETATION:- According to the table of 6.7 only sharekhan and 5paise provide the facility of both (trad-ing through website and software) And the other three company provide the facility of trading through website.
6.8 Demat account charges or annual maintenance charge:-
COMPANY NAME charges
Sharekhan Free 1st year,415 p.a. from 2nd year onwards
ICICI direct Free 1st year,300 p.a. from 2nd year onwards
HDFC securities 500 p.a.
5paisa 250 p.a.
Indiabull No account maintenance charges
INTERPRETATION:-
The above table shows that the indiabull not take any maintenance charges for account and sharekhan charge Rs 415, icici charges Rs 300, hdfc charges Rs 500, 5paisa charge Rs 250.
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6.9 Tie up with banks:-
COMPANY NAME Bank names
Sharekhan HDFC bank, ICICI bank, UTI bank, CITI bank, OBC bank, IDBI bank, YES bank, CANARA bank, INDUSIND bank.
ICICI direct ICICI BANK ONLY.
HDFC securities HDFC BANK ONLY.
5paisa HDFC bank, ICICI bank, UTI bank, CITI bank, GLOBAL TRUST bank.
Indiabull HDFC bank, ICICI bank, CITI bank, ABNAMRO bank, STAN-CHART bank.
INTERPRETATION:- Above table show that the sharekhan company tie up with more than its competitors, and HDFC securities & ICICI direct give preference only own banks.
6.10 Comparison in software charges:-
COMPANY NAME Charges in Rs.
Sharekhan NIL
ICICI direct N.A
HDFC securities N.A
5paisa 1000
Indiabull N.A
INTERPRETATION:-The above table show that only two company provide the software for trading and sharekhan not charge for software but company 5paisa charge 1000 RS. N.A- not applicable
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6.11. Types of account :-
COMPANY NAME Account name
Sharekhan 2(classic a/c, speed trade a/c)
ICICI direct Web based
HDFC securities Web based
5paisa 2( trader terminal, investor termi-nal )
Indiabull Web based
INTERPRETATION:-
The above table show that every company provide some account for trading therefore
sharekhan also provide two a/c classic a/c and speed trade a/c and ICICI direct, HDFC se-
curities, Indiabull provide the web based a/c and 5paisa provide the trade terminal a/c, in-
vestor terminal for trading.
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6.12 Buy today sell tomorrow(BTST):-
Buy Today Sell Tomorrow (BTST ) is a facility that allows you to sell shares even one day after the buy order date, without you having to wait for the receipt of shares into your demat account.
Example:-
Assume that you buy shares of ABC Limited at 11.00 a.m. today. Suppose, at 2.00 p.m. today, the price of this scrip has risen by Rs 10.But you want to sell these shares tomorrow because you feel that the scrip price will rise further. But the shares would not have come into your demat account tomorrow. What can you do?
BTST is the solution to your query. If you use a Margin Trade, you would gain only to the extent of the price rise that happens today I.e. Rs 10. However, if you wish to take advantage of the price rise over a longer time period, then you would use BTST.
So, you would purchase the share today at 11.00 a.m. and sell it say tomorrow using BTST® at 2.00 p.m.
COMPANY NAME decision
Sharekhan yes
ICICI direct Yes but only on 127 scripts of NSE
HDFC securities no
5paisa yes
Indiabull yes
INTERPRETATION:-
The above table show that only HDFC securities not provide the facility of BTST and other all of company provide the facility of the BTST ( Buy today sell tomorrow ).
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6.13. Comparison according to service of SMS alert:-
COMPANY NAME SMS Alert
Sharekhan 100 per month
ICICI direct yes
HDFC securities no
5paisa no
Indiabull no
INTERPRETATION:-
The above table show that sharekhan use SMS alert for the customer satisfaction. Every month sent 100 SMS to their customer and ICICI also sent the some SMS to their cus-tomer but other company ( HDFC securities, 5paisa, Indiabull ) not sent the SMS to their customer.
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61
FINDINGS
FINDINGS
According to the study of the project report and company experience of two month the
analysis the following findings:
ü According to graph one icici has the maximum market share and sharekhan is at
position no 2. sharekhan has a competitive product feature and services that
makes it possible to reach at this position.
ü According to graph two SHAREKHAN has brokerage less then ICICI and
HDFC but Same as INDIABULLS but more then other competitors. Broker-
age is the main concern for the customer thus company provide some negotia-
tion flexibility in brokerage charges, in terms of brokerage we are better then
the ICICI and HDFC company charge less form the customer for the same
purpose and providing better service.
ü According to graph 3 which shows the competitors growth in terms of the cus-
tomer acquisition from 2006 to 2010, Sharekhan has a growth rate of 4% and
ICICI has a maximum Growth rate of 5%
ü According to Graph no 4, which shows the total no of customer, sharekhan has
the second largest customer base with 4.5 lakh among its competitors.
ü Due to high competition the companies provide same product with different fea-
tures and services. With this regard sharekhan is at no one for services, bro-
kerage and follow-up.
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RECOMMENDATIONS
After heaving an experience of two moths in sales of Demat account I would like to sug-
gest the following things
v Company has an advantage of reach tips for which sharekhan s known for,
the customer who are new they need relationship managers
who will tell them about investment so it should be provided to
al the customer on demand this will lead to customer satisfac-
tion and will hip to have more references from the satisfied
customer.
v The company also have the advantage of brokerage charges it need some
revision so that the customer who are locking for the less bro-
kerage can open there account in are company taking into con-
sideration the different proposal, it can be reduced for a HNI
client.
v The company has shown the growth trend and it has reached at no 2 it can
move to no one because it has an advantage of its services. As
sharekhan is already Tie up with 7 banks for online fund trans-
fer that reduces the paper work for customer and ease in trad-
ing.
v The company can increase the customer base if the account opening
charges it reduced from 750 to 400, which will give, boost the
competition.
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CHAPTER 8 CONCLUSION
After studying the project I would like to conclude that
Ø Company should focus on customer satisfaction at every levels of the account
opening procedure.
Ø Brokerage can be reduced with the attractive proposals for the HNI.
Ø Relationship manager should be given on the customer demand.
Ø Company should use the tool of advertising for marketing the brand and the prod-
uct..
Ø The account opening time should be reduce to maximum 5 days because customer
losses the opportunity of investments.
Ø The company shows the positive trend in growth but it can be increased more if it
focuses on building the brand equity.
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BIBLIOGRAPHY
BOOKS REFERED:
MARKETING MANAGEMENT - PHILIP KOTLER
RESEARCH METHEDOLGY - C.R KOTHARI
OFFICIAL BROUCHERE OF SHAREKHAN SECURITIES PVT LTD.
1. www.nsdl.com
2. www.sharekhan.com
3. www.hdfc.com
4. www.nseindia.com
5. www.icicidirect.com
6. www.kotaksecurities.com
7. www.indiabulls.com
8. www.indiainfoline.com
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