share khan
TRANSCRIPT
A PROJECT REPORT ON
“Sales of Demat Cum Online Trading Account and Marketing Strategies of
Share khan.”
(FOR THE PARTIAL FULFILLMENT OF BACHELOR IN BUSINESS ADMINISTRATION AND FULL TIME GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT)
At
SHAREKHAN SECURITIES PVT.LTD.
(Area Of Summer Training- Marketing/sales)
SUBMITTED BY:VIJAY KUMAR
Batch (2006-2008)
MAHARISHI DAYANAND UNIVERSITY(ROHTAK)
TABLE OF CONTENTS
Certificate
Acknowledgement
Executive summary
CHAPTER 1. INTRODUCTION
1.1 Introduction to the Topic
1.2 Objective of the Study
1.3 Job description
CHAPTER 2. COMPANY PROFILE
2.1 About the Company
2.2 Company Profile
2.3 Share khan Business
LITERATURE REVIEW
Introduction of the product
2.4 Types of product and features
2.5 Process of DMAT A/C
2.6 Documentation
2.7 Product charges
2.8 Sharekhan services
2.9 Closure of an Account
CAPTER 3 REARSEARCH METHODOLOGY
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3.1 Data collection Secondary data
Primary data
3.2 Tools and techniques
3.3 limitations
CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN
4.1 Marketing Strategies
4.2 Unique objectives of the company
4.3 Comparative analysis
4.4 SWOT Analysis
CHAPTER 5. OBSERVATIONS AND ANALYSIS
5.1 Data Analysis
5.2 Interpretation
CHAPTER 6. FINDINGS AND RECOMMENDATION
6.1 Findings
6.2 Recommendation.
CHAPTER 7. CONCLUSION
CHAPTER 8. RESULT
CHAPTER 9. BIBLIOGRAPHY
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CERTIFICATE
This is to certify that Mr. VIJAY KUMAR student of MBA
“HINDU INSTITUTE OF MANAGEMENT SONEPAT”, has carried out
project work on the topic of “sales” of Demat Cum Online Trading
Account and marketing strategies of Sharekhan securities pvt. Ltd. under my
guidance is his original work done. He has put a lot of efforts, hard work and
has patience to convince customer and also fulfill his secondary objective.
He has done good work with us I wish him all the best for bright future.
Summer Trainee Project Guide
VIJAY KUMAR AMIT PAL SINGH
REGIONAL SALES MANAGER
Sharekhan Securities Pvt. Ltd.
MAHARISHI DAYANAND UNIVERSITY(ROHTAK)
CERTIFICATE OF ATTENDENCE
This is to certify that Mr VIJAY KUMAR, who was engaged in the summer project
in my Organization, has been regular and punctual. He has attended the training
from
1st june to 31st july.
Mr AMIT PAL SINGH
REGIONAL SALES MANAGER
MAHARISHI DAYANAND UNIVERSITY(ROHTAK)
ACKNOWLEDGEMENT
A project is never the work of an individual. It is moreover a combination
of ideas, suggestions, review, contribution and work involving many folks.
It cannot be completed without guidelines.
First of all I would like to express my sincere gratitude to my Programe
Director to make this project Mrs. SHUCHI GOYAL for giving me the
opportunity to make this project.
My sincere regards to my Project guide Mr. AMIT PAL SINGH for his
invaluable guidance and encouragement through out this project.
Last but not the least my sincere thanks to all the faculty
members of “AIM” and my Sr, Sales executive and Team members
for providing their help and advice whenever it was need
VIJAY KUMAR
EXECUTIVE SUMMARY
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Conceptually the mechanism of stock market is very simple. People who
are exposed to the same risk come together and agree that if anyone of the person
suffers a loss the other will share the loss and make good to the person who lost.
The initial part of the project focuses on the sales of types of the products of
the company, and also focuses on the acquisition of the customer. The job profile
is to create customer, making good relationship with them to have their references
and motivating them to trade for the company benefit and their profit.
It also enlightens the readers about the Sharekhan strategies to acquire the
customer base. Further the project tells us about the profile of the company
(SHARE KHAN). It provides knowledge to the readers about the company’s
history, mission, customer base and about the company in detail. and management
of the company. Also it gives special emphasis on the selling of products and
management of the company. Also it gives special emphasis on the selling of
products.
The next chapter is devoted to study the comparative analysis of the
competitors and the SWOT analysis, which tells about the Sharekhan edge over its
competitors. This project leads us towards the job descriptions and difficulties
faced by me.
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The next part of the project throws light upon my findings and analysis about the
company and the suggestions for the company for better performance.
During this project I have been given the responsibility of creating customer
bringing HNI customer, handling team, generating leads.
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CHAPTER 1. INTRODUCTION
INTRODUCTION OF THE TOPIC
The topic is to study the consumer preference towards investment in stock market.
DEMAT A/C is a pool of various scripts and securities, where as online trading
A/C is a tool of purchasing/ selling of shares or scripts online. These scripts are
then transferred to DP i.e. Depository account after three days.
This topic includes the practical experience of selling company product that is
followed by studying the consumer preference or interest towards share market.
This is a market, which is uncertain some time it gives huge profit and also vice
versa; it depends up on the investment customer made. This is a better option to
have better returns on the investments then investing in banks, mutual fund or
bonds et. But risk is high in this case.
This product offers customer two type of investment option INTRADAY and
DELIVERY both has there own benefits and limitation but a better way to have
more returns on investment. Intraday means investing in share market for a day i.e.
purchasing and selling of the share in one day. Delivery is purchasing share and
selling those shares next day. The charges that company charge in terms of
brokerage is different in both the cases.
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OBJECTIVE OF THE STUDY
1) Main objective
The main objective is selling of the DMAT Account cum Online
Trading Account.
2) Specific Objective
A) Creating customer;
B) Marketing of the product;
C) Creating relationship with the customer to have there sources;
D) Motivating customer for trading;
JOB DISCRIPTION
The company placed me as a Summer Trainee. I have been handling the
Following responsibilities:
Ø My job profile is to sale of product of the organization.
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
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I covered areas like Delhi, Gurgaon, Ghaziabad, Faridabad and NCR.
TARGET ASSIGNED
Ø To sell 15 accounts per month.
TARGET MARKET
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.
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CHAPTER 2. COMPANY PROFILE
ABOUT THE COMPANY
SHAREKHAN RETAIL BROKING
• Among the top 3 branded retail service providers (Rs 650 crs avg daily volume-
Apr Dec’04
• No. 2 player in online business
• Largest network of branded broking outlets in the country servicing 4,00,000
clients.
MANAGEMENT TEAM
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The company has an eighty years experience in brokering business it was earlier known
as SSKI Group. The owner of the company is Mr. SHRIPAL MORKHIYA sharekhan
is one of the leading retail brokerage firms in the country. It is the retail broking arm of
the Mumbai-based SSKI Group, which has over eight decades of experience in the stock
broking business. Sharekhan offers its customers a wide range of equity related services
including trade execution on BSE, NSE, Derivatives, depository services, online trading,
investment advice etc. The firm’s online trading and investment site-
www.Sharekhan.com-was launched on Feb 8, 2000. The site gives access to superior
content and transaction facility to retail customers across the country. Known for its
jargon-free, investor friendly language and high quality research, the site has a registered
base of over 4 lakh customers. The number of trading members currently stands at over 3
Lacs. While online trading currently accounts for just over 1 per cent of the daily trading
in stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded online.
The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and
superior market information.
The firm’s online trading and investment site-www.Sharekhan.com-was launched on Feb
8, 2000. The site gives access to superior content and transaction facility to retail
customers across the country. Known for its jargon-free, investor friendly language and
high quality research, the site has a registered base of over 4 lakh customers. The number
of trading members currently stands at over 3 Lacs. While online trading currently
accounts for just over 1 per cent of the daily trading in stocks in India, Sharekhan alone
accounts for 22 per cent of the volumes traded online.
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The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and
superior market information. The objective has been to let customers make informed
decisions and to simplify the process of investing in stocks.
On April 17, 2002 Sharekhan launched SpeedTrade, a net-based executable application
that emulates the broker terminals along with host of other information relevant to the
Day Traders. This was for the first time that a net-based trading station of this caliber was
offered to the traders. In the last six months SpeedTrade has become a de facto standard
for the Day Trading community over the net.
Sharekhan’s ground network includes over 250 centres in 123 cities in India, of which 20
are fully-owned branches.
Sharekhan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading
engine and content. The Morakhia family holds a majority stake in the company. HSBC,
Intel & Carlyle are the other investors.
With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the
leading players in institutional broking and corporate finance activities. SSKI holds a
sizeable portion of the market in each of these segments. SSKI’s institutional broking arm
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accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all
Domestic Institutional portfolio investment in the country. It has 60 institutional clients
spread over India, Far East, UK and US. Foreign Institutional Investors generate about
65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The
Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its
credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1
billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.\
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From sharekhan.com to India’s largest chain of branded retail share
Shops
250 branded share shops across 110
cities in India
Sharekhan Business
1 Brokering business
2 White feathering house production
Vision
To be the best retail brokering Brand in the retail business of stock market.
MissionTo educate and empower the individual investor to make better investment decisions
through quality advice and superior service.
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
SSKI Group Companies
• SSKI Investor Services Ltd (Sharekhan)
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• S.S. Kantilal Ishwarlal Securities
• SSKI Corporate Finance
• I dream Productions
SSKI – Corporate Structure
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SSKI Securities Pvt. Ltd.
Morakhia Family & Associates100%
Owns 56% of
SSKI INVESTOR SERVICES PVT. LTD.
Retail broking arm of the groupShareholding pattern:
55.5% Morakhia family (promoters) 18.5% HSBC Private Equity India
Fund Ltd18.5% First Carlyle Ventures,
Mauritius7.5% Intel Pacific Inc.
Owns 50.5% of
SSKI CORPORATE FINANCE PVT. LTD.
Investment Banking arm of the group
Shareholding pattern:50.5% SSKI Securities Pvt. Ltd.
49.5 % Morakhia family
LITERATURE REVIEW
GENERAL INTRODUCTION
DP (Depository Participants)
As an investor you open a securities account with a DP. DPs are attached to the
depositories 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 chose 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
Dematerialization Request Form (DRF), which is available with the DP, and submitting the
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same along with the physical certificates. The investor has to ensure that before the
certificates are handed over to the DP for demat, they are defaced by marking "Surrendered
for Dematerialization" on the face of the certificates.
Procedure for selling dematerialized securities
The procedure for selling dematerialized securities in stock exchanges is similar to the
procedure for selling physical securities. Instead of delivering physical securities to the
broker, you instruct your DP to debit your account with the number of securities sold by
you and credit your broker's clearing account. This delivery instruction has to be given to
your DP using the delivery instruction booklet received from the DP at the time of
opening the account. The procedure for selling securities is given here below:
· Investor sells securities in any of the stock exchanges linked to NSDL through a
broker.
· Investor gives instruction to DP to debit his account and credit the broker's
(clearing member pool) account.
· Before the pay-in day, investor's broker gives instruction to his DP for delivery to
clearing corporation.
· The broker receives payment from the stock exchange (clearing corporation).
· The investor receives payment from the broker for the sale in the same manner
payment is received for a sale in the physical mode.
NSDL
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Although India had a vibrant capital market, which is more than a century old, the
paper-based settlement of trades caused substantial problems like bad delivery and
delayed transfer of title till recently. The enactment of Depositories Act in August 1996
paved the way for establishment of NSDL, the first depository in India. This depository
promoted by institutions of national stature responsible for economic development of the
country has since established a national infrastructure of international standard that
handles most of the trading and settlement in dematerialized form in Indian capital
market. Using innovative and flexible technology systems, NSDL works to support the
investors and brokers in the capital market of the country. NSDL aims at ensuring the
safety and soundness of Indian marketplaces by developing settlement solutions that
increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central
role in developing products and services that will continue to nurture the growing needs
of the financial services industry.
In the depository system, securities are held in depository accounts, which is more or less
similar to holding funds in bank accounts. Transfer of ownership of securities is done
through simple account transfers. This method does away with all the risks and hassles
normally associated with paperwork. Consequently, the cost of transacting in a
depository environment is considerably lower as compared to transacting in certificates.
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TYPES OF THE PRODUCTS
CLASSIC ACCOUNT
This account allows the client to trade throuhg our website www.sharekhan.com and
is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks
or who do not trade too frequently.
Features Classic screen serves hot
Online trading account for investing in Equity and Derivatives via
www.sharekhan.com
· Integration of On-line trading, Saving Bank and Demat Account.
· Instant cash transfer facility against purchase & sale of shares.
· Competitive transaction charges.
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· Instant order and trade confirmation by E-mail.
· Streaming Quotes.(Cash & Derivatives)
· Personalized market watch.
· Single screen interface for Cash and derivatives and more.
· Provision to enter price trigger and view the same online in market watch.
SPEEDTRADE :-
SPEEDTRADE is an internet-based software application that enables you to buy and
sell in an instant.
It is ideal for active traders and jobbers who transact frequently during day's session to
capitalize on intra-day price movement.
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Customer can fast trade then the classic product
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.
· Back-up facility to place trades on Direct Phone lines.
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Customer can view 425 scripts at a time
Customer can view graphical presentation
PROCESS ON ACCOUNT OPENING
LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES
CONTACT
TELEPHONE AND PERSONAL VISIT
APPOINMENT
DEMONSTRATION
AGREE DISAGREE
DOCUMENTATION
FILLING THE FORM
SUBMISSION THE FORM
LOGIN OF THE FORM
SENDIND ACCOUNT OPNING KIT TO CUSTOMER
TRADING
DOCUMENTS:
1) Photo ID Proof
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NO
2) Residence Proof (Permanent)
· Passport
· Pan Card
· Driving Licence
· Voter's ID
· MAPIN UIN Card
· 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)
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· Ration Card
· 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
Securities 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
Ishwarlal Securities Pvt. Ltd.
ACOUNT OPENING CHARGES COMPARISION
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Charge Classic Account Speedtrade Account
Account
Opening
Rs. 750/= Rs. 1000/=
Brokerage
Intraday-0.10%
Delevery-0.50% on
conversation with rahim
not general
Intrady-0.10%
Delevery-0.50%
* Refundable in case the brokrage is more than Rs. 500/= p.m.
*Taxes as per govt.
Depository Charges
Account Opening Charges Rs. NIL
Annual Maintenance Charges Rs. NIL first year
Rs. 300/= p.a. from second year onward
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Brokerage: 0.10 % Plus Taxes for Each leg of Intra-day trade 0.50 % 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
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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
account can be closed only when there is no balance in the account. In case there is any
balance 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
request 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
accounts 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.
3.CLOSURE BY DP
The DP may also initiate closure of a client's account if the client has defaulted in
performing 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
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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
application, 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
account. 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.
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CAPTER 3 REARSEARCH METHODOLOGY
REAEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with logic behind him. Why a research study has been undertaken, how a research
problem has been defined, in what way and why the hypothesis has been formulated,
what data have been collected and what particular method has been adopted, why
particular technique of analyzing data has been used and a host of similar other questions
are usually answered when we talk of research methodology concerning a research
problem or study.
RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and
analysis of in a manner and aims to combine relevance to the research purpose with
economy in procedure. In fact the research design is the conceptual structure within
which research I conducted. Research design is needed because it facilitates the smooth
sailing of the various research operations thereby making research as efficient as possible
yielding maximum information with minimal expenditure of effort, time and money.
I have adopted descriptive and conclusive research design. Descriptive research is those
studies, which are concerned with describing the characteristics of a particular individual
or a group. Since the aim is to obtain the accurate information about the customer in
terms of his interest towards investment in stock sector. I have used the techniques of
questioning customer in order to know their consumer behavior, their interests, their
needs and etc.
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It is very important for the sales executive to study the mind of the customer so that the
personal visit would not be a waste of time, money and efforts.
DATA SOURCES:
The researcher can gather primary data, secondary data or both. Secondary
data are data that were collected for another purpose and already exist somewhere.
Primary data are data specially gathered for a specific purpose or for a specific research
project. When the needed data do not exist or are outdated, inaccurate, incomplete, or
unreliable, the researcher will have to collect primary data. Most marketing research
projects involve some primary data collection.
PRIMARY DATA:
I have collected primary data through personal references;
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:
The marketing researchers have four choices to contact the
respondents:
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ü Mail,
ü Telephone,
ü Personal and
ü Online. I chose the above techniques to reach to the customer in a
most convenient method.
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LIMITATIONS
· Lack of awareness of Sharekhan and stock market:
Since the area is not known before it takes lot of time in convincing people to start
investing in shares primarily in IPO’s.
· Some people are comfortable with traditional system:
As people are doing trading from there respective brokers, they are quite comfortable
to trade via physical form of paper, they want to trade off line, i.e. through telephone
or etc.
· Lack of Techno Savvy people and poor internet penetration:
Since most of the people are quite experienced and also they are not techno savvy.
Also Internet penetration is poor in India.
· Some respondents are unwilling to talk:
Some respondents either do not have time or willing does not respond, as they are
quite annoyed with the phone call.
· Inaccurate Leads:
Sometimes leads are provided which had error in it, which varies from only 5-digit
phone number to wrong phone number, some people have registered to know about
their personal quarries. They are the unsatisfied clients of the company.
· Misleading concepts:
Some people think that as all the shares are in electronic form and they don’t have
any physical proof. Sometimes this leads to a great misconception of the entire
process.
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CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN
Marketing strategy?
A strategy that focuses on developing a unique long-run competitive position in the
market by assessing consumer needs and the firm's potential for gaining a competitive
advantage.
· A business’ approach to marketing its products/ services expresses in broad terms,
which forms the basis for developing a marketing plan.
· Marketing starts with market research, in which needs and attitudes and
competitors' products are assessed, and continues through into advertising,
promotion, distribution, and, where applicable, customer servicing and repair,
packaging, and sales and distribution.
· The broad marketing thinking that will enable an organization to develop its
products and marketing mixes in the right direction, consistent with overall
corporate objectives.
MARKETING STRATEGIES OF THE COMPANY
v Tele Calling: -
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The company uses the tele calling/ phone calling to reach the
customer, which are interested. This is the most important technique to save time
and giving demo of the companies product through making call in order to know
the customer interest towards the product. This is the strategy with which one can
motivate customer to go for the product and etc.
v LMS:
It is leads management system which means leads are generated by
the customer who want to purchase the product of the company. Company
provide facility to the customer on online to fill the registration form through
which the companies executives can provide more information to the customer.
v Yellow Pages:
Yellow pages are used to gather data for making calls so that
customer who did not fine time and are unaware of the product can know about
the product. Customers are given freedom to ask question related to the products
this is the technique used to increase the awareness of the company.
v Canopy’s:
This is the most important technique used by sharekhan securities to market its
product in different areas of the city, company put their canopies and customer
who are willing to know about the product come forward and provide best of their
knowledge. Besides this companies executives ask customer to fill the
questionnair that tells the company about the levels of brand awareness. It also
increases the product awareness because it is generally put at the crowdies places
like near main markets, cinema s, hotels, ATM or etc where people come in good
numbers.
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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
understand better.
v Advertising:
Advertising is the most important tool of increasing awareness of
the product and this is the most widely used technique by the company to tell
about the new features and new lunch by giving briefing of the product.
Sharekhan use banners, distribution of pamphlets, and advertisement in
newspapers, magazines.
v References:
Sharekhan strategy is to satisfy the customer in terms of their need by
providing them timely services and knowledge about the trade in equities, mutual
funs by giving tips for investment advises through e-mails or toll free calls for this
purpose customers are provided relationship manager who give investment advise
and also make transaction on their behalf on demand. B satisfying customer
executives ask their references that not only increase the awareness but also
increase the good will of the company.
v Competitiveness:
The company is innovative and uses the latest
technology to improve the product to fulfill the demands of the customers.
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Sharekhan make it easy for the customer to make online transaction of shares. The
company is competitive in terms of the product price and facilities it offers to the
customer.
v Internet:
Company provides detailed information about the products on Internet
so that customer can know about the product easily and completely.
UNIQUE OBJECTIVE OF THE COMPANY
• 200000+ retail customers being serviced through centralized call centre / web
solution
• 60 branches, semi branches servicing affluent/aggressive traders through highly
skilled financial advisors
• 250 independent investment managers/franchisees servicing 50000 highly valued
clients
• Strong advisory role through Fundamental & technical research
• New initiatives - Portfolio Management Services & Commodities trading.
• Dealing in mutual funds.
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COMPETITOR ANALYSIS
5PAISE.COM
Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-
broking was started under the brand name of 5 paisa.com. Apart from offering online
trading in stock market the company offers mutual funds online. It also acts as a
distributor of various financial services i.e GOI securities, Company Fixed Deposits,
Insurance. Limited ground network, present in 20 Cities
Charges for Demat:
•Demat 1st Yr: Rs 250
Pricing for HNI Clients
•Demat 1st Yr: Rs 250
KOTAK STREET
Company Background
Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture
between Kotak Mahindra Bank and Goldman Sachs, Pricing For Kotak
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•Demat charges:
Rs 22.5 p.m
INDIABULLS
Company Background
India Bulls is a retail financial services company present in 70 locations Covering 62
cities. It offers a full range of financial services and Products ranging from Equities to
Insurance. 450 + Relationship
Managers who act as personal financial advisors
•Demat Charges
: Rs 200 if POA is signed, No AMC for this DP
•POA for Clients DMAT
All shares held by client trading with IB are moved to IB Pool Account and the same is
shown as a reflection in client DP account. Charges are levied to move shares from IB
pool Account to client DP account
ICICI Direct
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Company Background
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of
ICICI Bank Limited and the Website is owned by ICICI Bank Limited
Demat Charges:
NIL first years
500 per annum
HDFC SECURITIES
Company Background
The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates
promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the
largest team of Tele-brokers
DEMAT ACCOUNT WITH HDFC:-
· It is conversion of physical shares into electronic form.
· Dematerialization charges
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· Rs. 3 per share certificate
· Rs. 35 per request.
· Folio charges are Rs.150 per annum.
· Buying and selling transaction through brokers –Charges are 0.05% of transaction
value
Off market transactions charges - 0.04% of transaction value
CHARGES FOR DEMAT ACCOUNT
First year: NIL,
Yearly charge: 450 per year
SWOT ANALYSIS
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A SWOT analysis focuses on the internal and external environments, examining strengths
and weaknesses in the internal environment and opportunities and threats in the external
environment.
STRENGTHS
Services
As a product Sharekhan is a extremely innovative product with very less cost.
Services like online trading facility, institutional and domestic broking, customized
research reports with almost 80% efficiency etc give Sharekhan an edge over its
competitors. Sharekhan provides other support services that make retail investors more
confident and assured with their trading. SMS alerts (allowing traders and investors to
make the most of the available opportunities), Softer, intangible features like imagery,
equity driving preference. Through efficient trading processes Investors can place their
orders directly on the Internet, do all the information seeking and basically own the
investing process.
Distribution Network
Sharekhan with almost 250 branches spread across 123 cities beefed up by
comprehensive online research, advice and transaction services. In near future expect to
make 200000+ retail customers being serviced through centralized call centre / web
solution,
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60 branches/semi branches servicing affluent/aggressive traders through highly skilled
financial advisors, 250 independent investment managers/franchisees servicing 50000
highly valued clients, strong advisory role through Fundamental & technical research and
new initiatives are being made in Portfolio Management Services & Commodities
trading.
Marketing
Sharekhan is a product of SSKI, a veteran equities solutions company with over
decades of experience in the Indian stock markets. Sharekhan does not claim expertise in
too many things. Share khan’s expertise lies in stocks and that's what it talks about with
authority. So when he says that investing in stocks should not be confused with trading in
stocks or a portfolio-based strategy is better than betting on a single horse, it is something
that is spoken with years of focused learning and experience in the stock markets.
Products
Company’s product line is quite flexible in the sense that there is a product for every kind
of investors. Also all the products cover all the loopholes of all the products offered by
the other competitors like low cost, user-friendly online trading services etc.
WEAKNESS
Customer Satisfaction
As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking
house catering to heavy investors or small segment of the market can afford to and does
provide relationship managers for their customers, who can understand the trading needs
of individual customers, and advise accordingly. However, a broking house like
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Sharekhan, which caters to the mass segment, is in no position to provide relationship
managers for individual customers.
Branding
Though the company has a efficient products but large part of investment interested
population does not know the company. The most basic expectation for a trader or
investor when one begins trading is that one must get timely delivery of shares and
proceeds from sale of shares. Also ones cash balances with the broker must be safe and
secure. Though this confidence in the broker comes with time and experience, good and
transparent practices also play a major role in imbibing confidence in traders.
Competition from banks
Most of the banks due to good branding have the faith of the customers of their
banking database. So they enjoy the liberty of huge database and customers find it more
reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank
and ICICI Bank have the advantage of linking the trading accounts of their customers to
saving accounts. This makes trading easier, and at the same time a trader withdraws
exactly as much money from his account as is needed to complete the trade. Similarly
sales proceeds are credited directly to saving account.
OPPORTUNITIES
The external environment analysis may reveal certain new opportunities for profit and
growth.
Ever-increasing market
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After the NSE brought the screen based trading system stock markets are now more
secured which has attracted lot of retail investors and the demand is increasing day by
day. This has resulted in improved liquidity and heavy volumes on transactions.
Sharekhan is one of the early entrants here. As to how much it will roar and how swift it
can swoop on the market, the future alone can answer such queries. Sharekhan has been a
mega player and is known for being a mover of stocks. It is also known for putting big
deals through and enjoys good networking with the FIIs. It has been dynamic enough to
move with the times and capture the opportunities that the market throws up from time to
time.
Improving Technology
In country like India technology is always improving which gives the company a
chance to keep on improving their product with time whereas for the small players like
local brokers it will be difficult to keep the same pace as the changing technology. Also
with SEBI lying down some strict guidelines small brokers are finding it harder to retain
the customers with no research department and small capital. The traditional business
model is highly dependent on a large network of sub-brokers, and many established
players may not have systems (technology, customer service, etc.) capable of directly
servicing so many retail customers.
Unfulfilled needs of the customers
With so many competitors offering their products in the market but no one is able to
completely satisfy the customers. Some have the problem of lack of information or some
were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this
unsatisfied set of customers and to make hold in the market. The Internet serves to break
all barriers to information, as it offers an extremely hassle-free investing platform. And,
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Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by
Sharekhan itself was born out of the consumer's need for a more transparent, easy to
understand and convenient option of investing in stocks.
Education Level
The education level in the country is improving year after year as far as
technology goes. With that the understanding of the stock market is also increasing and a
lot of retail investors are steeping in the markets which is being shown by increasing
volumes, transactions and indices.
THREATS
New Competitors
A lot of new competitors are trying to enter the market in this bullish run to taste
the flavor of this cherry. This is creating a lot of competition for large players like
Sharekhan and it is creating little confusion in the minds of the customers about the
services provided by the broker. Also many banking firms are entering into the market
with huge investment. Competitors like icici, kotak, hdfc, 5-paisa etc. are posing a lot of
threats to the company.
Technology based business
Online trading is totally based on the technology, which is quite
complex. Typically, the technology solution has to start from the Internet front-end
(or the screen that you see when you begin trading). Then it needs to get into the
'middle tier' of risk management systems that assess data from banks and
depository participants (DP), calculate client risk at that point in time, and give the
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'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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CHAPTER 6.
OBSERVATIONS AND ANALYSIS
DATA ANALYSIS
1 Market share of share-khan securities
COMPANY MARKET SHARE
ICICI 28.00%
Sharekhan 24.00%
Indiabulls 22.00%
5 Paisa 20.00%
Others 6.00%
Graphical representation of the above data
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The above data describes the market share of the sharekhan competitors in which share
has the second highest market share among all its competitors heaving customer base of
more then or approximate 4.5 lack.
2 COMPETITORS BROKERAGE COMPARISION
COMPETITORS
BROKERAGE INTRA DAY DILIVERY
ICICI 0.50% 0.75%
HDFC 0.40% 0.75%
INDIA BULLS 0.10% 0.50%
SHARE KHAN 0.10% 0.50%
5 PAISA 0.05% 0.40%
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The above is the detail of the companies’ brokerages in which sharekhan has
competitive brokerage over others in which there reduction of the brokerage
depending upon the deal between client and the customer.
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3
GROWTH RATE IN % YEAR
2.5 2002
3.1 2003
3.6 2004
4 2005
4.5 2006
The above graph shows the growth rate of the company from 2002 to 2006, which shows
the increase in the growth trend.
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SHAREKHAN Growth
COMPANY Year 2005-06
HDFC NIL
5 Paisa 2%
Indiabulls 1%
Sharekhan 4%
ICICI 5%
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ICICI
Indiabulls
4
COMPANY MARKET SHARE
No of customer in lackICICI 7SHARE KHAN 4.5INDIA BULLS 2.55PAISA 2.4HDFC 1.1
The above graph shows the market share of the customer we are at position no two
heaving customer base of around 4.5 lakh customer, ICICI heaving the maximum and
HDFC has the minimum customer.
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5 Client acquisition ( During the Project of Two month)
Clint Acquisition (Approx.)
Total Data 3000
Calls made 2700
Responses 1200
Appointment fixed 130
Appointment confirmed 45
Appointments converted 26
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 converted.
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CHAPTER 7. FINDINGS AND RECOMMENDATION
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.
Brokerage is the main concern for the customer thus company provide some
negotiation flexibility in brokerage charges, in terms of brokerage we are
better then the ICICI and HDFC company charge less form the customer for
the same purpose and providing better service.
ü According to graph 3 which shows the competitors growth in terms of the
customer acquisition from 2002 to 2006, Sharekhan has a growth rate of 4%
and ICICI has a maximum Growth rate of 5%
ü According to Graph no 4, which shows the total no of customer, sharekhan has
the second largest customer base with 4.5lakh among its competitors.
ü According to the graph 5 it shows the practical work done by me. In this I have
made approximate 3000-4000 calls in two month to the customers and tried to
communicate my product. Out of all these calls I found 2700 numbers correct
and rest are not in use. Near about 1200 customer shows interests towards
atleast listening to the product out of 1200 only 130 customer fixed the
appointment for further process of the account opening with sharekhan. , Then
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out of 130 customers only 45 appointments are confirmed and visited by me.
Out of this total 26 are finally converted and are customer of the company.
ü Due to high competition the companies provide same product with different
features and services. With this regard sharekhan is at no one for services,
brokerage and follow-up.
RECOMMENDATIONS
After heaving an experience of two moths in sales of Demat account I would like to
suggest 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
satisfaction and will hip to have more references from the
satisfied customer.
v The company also have the advantage of brokerage charges it need some
revision so that the customer who are locking for the less
brokerage can open there account in are company taking into
consideration the different proposal, it can be reduced for a
HNI client.
v The company has shown the growth trend and it has reached at no 2 it can
move to no one because it has an advantage of its services. As
sharekhan is already tieup with 7 banks for online fund transfer
that reduces the paper work for customer and ease in trading.
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v The company can increase the customer base if the account opening
charges it reduced from 750 to 400, which will give, boost the
competition.
v The company should revise the advertising strategy to increase its brand
awareness. I suggest making advertisement on television so
that maximum market can be targeted.
MAHARISHI DAYANAND UNIVERSITY(ROHTAK)
CHAPTER 8 CONCLUSION
After studying the project I would like to conclude that
Ø Company should focus on customer satisfaction at every levels of the account
opening procedure.
Ø Brokerage can be reduced with the attractive proposals for the HNI.
Ø Relationship manager should be given on the customer demand.
Ø Company should use the tool of advertising for marketing the brand and the
product.
Ø Reduction in brokerage would attract the customer of Indiabulls, 5 Paisa and other
competitor’s heaving less brokerage then us. It would increase the market
share or client acquisition.
Ø The account opening time should be reduce to maximum 5 days because customer
losses the opportunity of investments.
Ø The company shows the positive trend in growth but it can be increased more if it
focuses on building the brand equity.
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CHAPTER 9 RESULT
The given target is 12 clients per month, which is achieved in the specified
time frame.
I have converted 26 customers in two months and some follow-ups are given to
the senior sales executives.
The secondary objective is also achieved.
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CHAPTER 10 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
9. www.google.co.in
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