SUMMER INTERNSHIP PROJECT

FINAL REPORT

A REPORT ON SALES AND DISTRIBUTION STRATEGIES OF EDELWEISS: “OPPORTUNITIES
BY

AND CHALLENGES”

(GLOBSYN BUSINESS SCHOOL) COURSE: PGPIB

BATCH: 03 ENROLLMENT No. 011103017

A REPORT ON SALES AND DISTRIBUTION STRATEGIES OF EDELWEISS AND ITS OPPORTUNITIES AND CHALLENGES
BY: SUSN

AT PRADHAN

DATE OF SUBMISSION 13th JULY, 2010

SUBMITTED TO:
PROF BIKRAMJIT SEN (Faculty Guide) MR. GYAN CHAND JAISWAL (Company Guide)

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TO WHOM IT MAY CONCERN

This is to certify that Mr. Susnat Pradhan 1st year PGPIB batch student (PGPIB03, Roll No.011103017) of Globsyn Business School, has done her summer project titled “Sales and Distribution strategies of Edelweiss: Opportunities and Challenges” under my guidance as a partial fulfillment of PGPIB curriculum requirement. Wish him all success in life.

Date: Place: Kolkata

Gyan Chand Jaiswal (Company Guide) Edelweiss Broking Ltd.

Prof Bikramjit Sen (Faculty guide) Globsyn Business School

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2010 to 12th June.Susnat Pradhan Enroll No. However. if any. Edelweiss) and Prof. I declare that the report submitted by me is a bona-fide work of my own. Bikramjit Sen (Faculty member GBS Kolkata) from 5th April. found in the project will be completely my responsibility.011103017 3|Page . any discrepancies. . 2010 Name. Signature: Place: Kolkata Date: 13th July. 2010 in partial fulfillment of PGPIB Program. Susnat Pradhan hereby declare that the project titled “Sales and Distribution strategy of Edelweiss and its opportunities and challenges” is an original and genuine work carried out under the guidance of Mr.AUTHORIZATION I. Gyan Chand Jaiswal (Area sales manager.

Mr. I am grateful to the Organizational members of Edelweiss for their help and support throughout the project.ACKNOWLEDGEMENT No task is a single man’s effort as there are various factors. This project report bears the imprint of some very important people.). Most importantly. I deeply want to express my profound gratitude and thankfulness to Prof. both from my institution. Area sales manager. Knowledge gained from him will always inspire and encourage me to scale new heights in the future. situations and people combine together to form the background for the accomplishment of any task. for his useful guidance and inputs. who are directly or indirectly related in shaping up this project. I thank all the respondents who have given their precious time to answer my questionnaire during the survey for primary data collection. Kolkata. Susnat Pradhan 4|Page . I would like to thank sincerely my Company Guide. I am highly grateful and sincerely acknowledge valuable contributions imparted by these imminent people towards the completion of this project. Bikramjit Sen for having faith in my endeavors and abilities. Edelweiss. Gyan Chand Jaiswal. GBS Kolkata as well as the Organization (Edelweiss Broking Ltd.

6 8 9 9 10 11 12 15 22 26 32 36 39 41 43 51 52 52 53 54 5|Page . Introduction to the topic Purpose Scope Limitations Methodology Introduction to the Indian Stock Market Introduction to Edelweiss Main Text Findings about the selling strategy Findings about the Distribution strategy Findings about the CRM strategy Strategy of Edelweiss in Kolkata 10. 4. 6.NO CONTEN .TABLE OF CONTENTS SN. 3. 7. 15. Primary Data analysis Consumer Risk Analysis Competitor Analysis Questionnaires’ analysis 11. 5.Questionnaires PAGE NO. 8. 13. 9. Executive Summary 2. 12. 14. Key findings Conclusion Recommendations References Annexure. T 1.

it gives a picture about how to build a good relationship with the clients who bring business for the company (existing. Interaction with the clients helped to know the image of the company in the minds of the customers and it helped me to come up with suggestions to further improve the services of the company. in order to make investing easier for them. thus the sales of various financial products of the company and analyze the various distribution strategies exploited by the firm. which it uses as a potential selling tool. I have been handling the profile of Customer Relationship Management. investment advisory services. institutional equities. I have concentrated on existing and dormant clients trying to know their opinion about their association with Edelweiss. Having said that. values protect”. So t r a c k i n g t h e transformation is really interesting and worth appreciating. The project will focus on the strength areas of the company while at the same time tries to identify the weak areas so that it can be overcome. depending on certain criteria. It talks about studying the method of identifying customer’s investment needs and suggesting them suitable financial products. My job here is to advice them to take the suitable products offered by the company. I have been communicating with different types of customers through various media. wholesale financing. The mission statement of the company is “Ideas create. private client broking. and mutual funds. The strength of Edelweiss is its market image and well equipped research team. The major clients are corporations. I have also worked as a part of sales force of the company and sold Demat account. treasury. a comparative study has carried out to see where Edelweiss stands in the race for offering P r o d u c t s a n d services. The strategy followed by Edelweiss in relation with Sales and Distribution is unique and acts as a (USP) unique selling proposition in favor of the company. Adding to this. As an intern. The project also deals with customer relationship management. It provides services like investment banking. In the visit the main focus would be to convince the clients to do more business with the company and telling them about the benefits provided by the company. asking for an appointment following which there will be client visit. I have carried out research to track acceptability for different distribution channels. institutional investors. and high net-worth individuals. talked to customers and tracked their investment pattern to help them suggest the kind of financial product they should use according to their risk appetite. insurance broking.EXECUTIVE SUMMARY Edelweiss Capital Limited is a Mumbai based company which started its operation in the year 1995. prospective and dormant clients). who fall under the sample space for this project. This project will explore the various distribution channels used by Edelweiss to sell its products. This Project is a comprehensive study of Sales and Distribution strategy of Edelweiss and identifying its opportunities and challenges. I went for the field work. A comparative analysis of Edelweiss with other broking firms has also been done. Some of the data has been collected from the customers regarding their views about Edelweiss. I have visited to many places in purba and paschim Medinipur. including client visits. I have been talking to existing retail clients of the company over the phone. wealth management. asset management. I hope my findings are useful for the company. 6|Page .

Secondary data collection . LimitationsShort duration of the project Customer response may not be 100% right 7|Page . company websites and database provided by the company.source of secondary data was books.Objective of the projectTo cover the various aspects of sales and distribution strategy To track the CRM policy of the company and its importance Competitor’s analysis and knowing the opportunities and challenges before the company. journals. MethodologyPrimary data collection.primary data was collected through questionnaire design and conducting a survey.

a good sales figure reflects high acceptability for the company through its products in the market and vice-versa. . sales figure is a reflection of the company’s acceptability in the market.INTRODUCTION TO THE TOPIC The project is about selling and distribution strategies of a financial service providing company (Edelweiss Broking Ltd. companies selected from a defined. or more broadly the overall process of selling and delivering products to customers. This helps the company identify potential segments and cater to its requirements. limited set of options (i. thus the sales of various financial products of the company and analyze the various distribution strategies exploited by the firm. The project stresses on retail clients and strategy adopted by the company to handle them. A company builds up a distribution strategy with an endeavor to reach out to maximum consumer pool in a minimum time frame and incurring least costs.e. To make matters more uncertain. prefers and accepts the company’s products and services over competitors’ offerings and recommend others to buy. the number of options has expanded greatly and the breadth of choices by competitors has proliferated in parallel. The customer relationship is aimed at creating strong long lasting. Recently. some of the traditional options no longer offer the same balance of services and costs and now cease to achieve the desired results. Selecting a sales and distribution approach is a key element of a successful business model. creating potential instability in competitive positions for current leaders and areas of opportunity for others. As a result the customer starts identifying and associating him with the product. Direct sales. The project basically stresses on studying the method of identifying customer’s investment needs and suggesting them suitable financial products. Moreover it costs less to retain customers than to c o m p e t e for new c u s t o m e r s . at once encompasses both a company’s connection to its customers and a significant portion of its total costs. CRM is a part of the project. My j o b p r o f i l e i s interacting with the existing retail clients and the clients who are in a dormant stage and convincing them to start business with the company and maintain their association with the company. distributors. fruitful relationships by developing long-term bonds. Another most important thing is the Distribution of its products in an effective way so that they reach the customers.) and opportunities and challenges faced by it. In today’s context building relationships with customers is a part of the strategy of the company because customer retention is vital for an organization. A good distribution ensures easy availability of a product in the market and helps the company penetrate further into it. manufacturers representatives. Sales are important from every company’s point of view. Traditionally. This will help me get an insight into the various aspects of customer relationship. The sales approach. Sales refer to volumes. This involves calling the existing clients and client visits. dealers) and most firms in an industry made similar choices.

Thus the project covers various areas and hope it is useful for the company. The project talks about the opportunities and challenges that are there before the company. 8|Page . Competitors’ analysis has been done to explore the strategies adopted by the competitors and the areas for improvement.Therefore. many companies are forced to rethink their approaches to sales and distribution.

the project will also focus on as to how the company can improve its sales further and what are the segments where there is a growth potential To study the importance of CRM.the project deals with the relationship management with HNI clients and its various aspects SCOP E There is a wide scope of this project for the company as well as industry. 9|Page . The project has covered various marketing concepts and the models that fit into the business model. The scope is just not limited to the company. it gives an idea of the industry. As the study is about the sales and distribution strategies that are the major factors that decide company’s success.the project will find the effectiveness of channels in the company How are the underlying characteristics of sales and distribution channels changing in the new segment the project will find out whether with Edelweiss coming in a new segment the distribution channels are changing or not and how their sales strategy has been affected Creating competitive advantage with sales and distribution strategy . so knowing a good deal about it is of much importance. This project will help company to know the customer base in a better way so that suitable selling strategy can be adopted To study how do sales and distribution channel choices fit into the overall business model.Stress will be given on the distribution strategy employed by the firm To understand the customer needs and accordingly sell them suitable products – for selling it’s important to understand the customer perception.PURPOS E To identify the distribution channels in the financial firm– this project will explore the various distribution channels of the company like brokers and subbrokers To study the distribution strategy of the company. The company can trace the loopholes and take corrective measures which will help it improve further.the aim of the project is to explore how competitive advantage can be gained by adopting the right strategies To identify the growth areas of the company .

The sample size is taken as 100 for sales and distribution questionnaire and 30 each for the two questionnaires related to CRM. analysis on one day or in one segment can change very quickly The study is limited to only Kolkata and East & West Midnapore SORCES of DATA The data is being collected through primary and secondary sources. Primary Data The data will be collected through questionnaires from people in Kolkata.LIMITATIOS Some aspects might not be covered due to time constraint The information by the customers regarding their investment may be partially correct because they do not wish to disclose their asset information Reliance on the secondary data means that some of the information may be subject to verification Incorrect data given by the respondents might not justify the purpose Many customers don’t wish to listen to us because of their busy schedule In a rapidly changing industry. Secondary Data Database given by the company Websites of the company and books Journals and magazines 10 | P a g e .

METHODOLOGY Research methodology is a strategy that guides a research in providing answers to research questions and for this. in fact it is a search for broader meaning of research findings it is through interpretation that the researcher can well understand the abstract principle that respondents beneath his findings. The average response rate was 75. The data were collected in te n w e ek s . Questionnaire Design The questions were designed in an easily understandable way that the respondents may not have any difficulty in answering them. India. The simple statistical tools will used to analyze the data collection. For the collection of primary data the questionnaire designed for the purpose was given to the customers to know their response. Sampling Area: The area of the research was area of Kolkata and East & West Midnapore. in Kolkata and East & West Midnapore. This was followed by client visits and interaction with the distribution agents like broker and sub-broker. due to the short time available for the interviews.9%. 11 | P a g e . research survey is being done. Bar Graphs and pie chart have been used to illustrate the findings diagrammatically. Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. Interpretation Interpretation refers to the task of drawing inference from the collected facts after an analytical study.

Growth supporting factors-The early 1980s witnessed another surge in stock markets when major companies such as Reliance accessed equity markets for resource mobilization that evinced huge interest from retail investors. which was set up in 1988 as an administrative arrangement. thus forcing them to find a place of their own. A new set of economic and financial sector reforms that began in the early 1990s gave further impetus to the growth of the stock markets in India. In the aftermath of the crash. which later turned into the Dalal Street. which created a surge in retail investing. The broad objectives of the SEBI includeto protect the interests of the investors in securities to promote the development of securities markets and to regulate the securities markets 12 | P a g e . banks. Bubble burst. which led to the formation of a trust in 1887 known as the “Native Share and Stock Brokers Association” Beginning of a new phase. Setting up of SEBI.INTRODUCTION TO THE INDIAN STOCK MARKET The Indian broking industry is one of the oldest trading industries that have been around even before the establishment of BSE in 1875 Inception.the Securities and Exchange Board of India (SEBI). 1992. and then in Jul 1865. disallowed them to gather there. with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies.The early stock market saw a boom till 1865. was given statutory powers with the enactment of the SEBI Act. A group of about 300 brokers formed the stock exchange in Jul 1875.A new phase in the Indian stock markets began in the 1970s. what was then used to be called the share mania ended with burst of the stock market bubble. on whose building steps share brokers used to gather to seek stock tips and share news.The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance.

Incorporation of NSE. Despite passing through a number of changes in the post liberalization period. the derivatives markets are the financial markets for derivatives. being run on no-profit basis. the first of such stock exchanges in India. For example one needs to transact through a trading member of a stock exchange if they intend to buy or sell any security 13 | P a g e . the industry has found its way towards sustainable growth. To speed the securities s e t t l e m e n t p r o c e s s . NEED OF A BROKER A broker is a person or firm that facilitates trades between customers. NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. These raw commodities are traded on regulated commodities exchanges. credit. in which they are bought and sold in standardized contracts. Debt market . electronic trading. C o m m o d i t y m a r k e t s a r e markets where raw or primary products are exchanged.NSE was incorporated in Nov 1992 as a tax paying company. It is advisable to conduct transactions through an intermediary. A stock Broker is a regulated professional who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors. FINANCIAL MARKETS The financial markets have been classified as Cash market (spot market) – largest traded. Derivatives market – after cash market. greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives. since stock exchanges earlier were trusts. To work as a broker a certificate of registration from SEBI is mandatory after satisfying all the terms and conditions. commenced operations in Oct 1996. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network. or fixed income market) is a financial market where participants buy and sell debt securities. T h e Depositories A c t 1 9 9 6 w a s p a s s e d t h a t allowed for dematerialization (and dematerialization) of securities in depositories and the transfer of securities through electronic book entry. the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. Commodities m a rk e t – a f te r commodit ies m ar ke t .The bond market (also known as the debt. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. The National Securities D e p o s i t o r y L i m i t e d ( NSDL) s e t u p b y l e a d i n g f i n a n c i a l institutions.

39 35.95 2. 12. 4. 13. Stock Brokers come under the category of Market Players.26 22. 3. 9.56 56. A broker acts as a go between and.32 18.88 21. charge a commission.23 92. 19.54 39. There are two major stock-exchanges NSE (composition of 50 stocks) and BSE (Composition of 30 stocks). Ahmadabad Bangalore BSE Bhubaneswar Calcutta Cochin Coimbatore Delhi Gauhati ISE Jaipur Ludhiana MPSE Madras NSE OTCEI Pune UPSE Vadodara 14 | P a g e . The membership in the stock exchange can be granted as individual membership and corporate membership. 14. does not assume any risk for the trade.039 551 55 78 64 CORPORATE BROKERS AS A % OF TOTAL STOCK 48.OF CORPORA TE BROKERS 157 124 767 19 204 80 48 213 3 345 18 85 34 71 1.69 28. 11. 8. in doing so. 18. 7.03 20. 10. 15. You need to deposit money with a banker to an issue if you are subscribing to public issues. One needs to maintain an account with a depository if they intend to hold securities in demat form.62 19. 2.on stock exchanges. One gets guidance if you are transacting through an intermediary.58 1.91 36. STOCK EXCHANGE TOTAL NO. 16.03 76.129 719 188 354 311 NO.63 29. Exchange-wise Stock Brokers Registered with SEBI (As on March 31. The broker does. OF STOCK BROKERS 321 256 946 214 957 435 135 374 103 935 488 297 174 181 1. 6.90 3. 2008) SN NO. however.44 81.08 8. 5. NSE BROKE B R CLIEN T The market intermediaries play an important role in the development of Securities Market by providing different types of services.91 48. A broking firm acts as an intermediary between NSE and Client. 17.

Entrepreneurial and result driven emphasizing confidentiality and integrity Operations. Venkat Ramaswami. Equity Base.building long term relationships with the clients and equipping the clients about the market knowledge so that they can address the day by day fast growing opportunities USP.stock broking. The policy of the company ensures transparency and greater opportunities for all its clients. distribution of financial products. The Company is operating in India as an Integrated Investment Banking Company.The single minded focus on thought leadership and relentless pursuit of the ‘new’ and ‘different’ is it in products. www. Research Driven Aim. covers over 200 stocks across 19 sectors that accounts for about 70% of the total market capitalization Offices.AN INTRODUCTION TO EDELWEISS Edelweiss capital was started by two IIM graduates Mr. Edelweiss strives to be a thinking organization.www. employs over 1600 employees Major clients. providing broking services to Institutional and corporate clients and high net worth individuals Market Capitalization.Client Focus. Rashesh Shah and Mr.edelweiss. trying to be innovative and imaginative.ESL focuses on the wholesale equity segment.500 crore (Rs 55 billion).com. Culture. Professional Integrity.over Rs 2.90 researchers.edelcap. Execution orientation.000 crorer Website.operates from 56 offices in 21 Indian cities.Rs 5. depository services. and proprietary trading. model of employee ownership Culture. services or people.in 15 | P a g e . research services. SNAPSHOT Approach. 47 per cent of its revenue is from treasury and wholesale financing Research (POD) .

enjoying a healthy 5% plus market share in the institutional broking segment Edelweiss is also in the process of widening its product portfolio by penetrating into p r o d u c t specific a n d s e c t o r s p e c i f i c n i c h e s . institutional equities. BSE: 532922. with a focus on large and medium cap stocks. catering to institutions and HNWIs and retails. which covers approximately 50 . Has a strong research platform with research products. In lending business It is empanelled with over 40 leading FIIs. The fundamental 16 | P a g e . The company’s Equities Broking division has now expanded to include 215 stocks in 19 sectors accounting for 70 percent of market capitalization Alternate Asset Management’s total asset value currently stands at $625 million Wholesale Financing division soared to Rs. Bloomberg: EDEL.Mr. w h i c h w i l l b r o a d e n a n d strengthen its entire institutional business Asset base of over INR 800 cr. FIs. especially in areas like investment banking.HIGHLIGHTS EBL has a strong equity research team. which specializes in providing a wide range of financial products and services such as investment banking. institutional equities etc. 7 crore in the previous year Edelweiss is amongst the largest institutional broking firm.60 companies within 6 industry categories. Mutual Funds. 141 crore in FY08 from Rs. 2008 Ranked among the top ten players in Annual Bloomberg and Annual ThomsonReuters Present Chairman and CEO. Raskesh Shah Well respected Brand with strong position in relevant market segments STRENGHTS OF THE COMPANY Has an integrated business model.IN Awarded as “Best Merchant Banker” by the Outlook Money NDTV Profit Awards. Is well positioned to leverage the growing financial sector in India and become a significant market player. such as fundamental and alternative research. and wholesale finance. wealth management. Banks and Insurance companies Listing in various stock exchanges NSE: EDELWEISS.

On the other hand alternative research utilizes quantitative techniques to identify short term and medium term investment opportunities in the capital market The company has a strong internal controls and risk management system employed throughout t h e f i r m t o a c c e s s a n d m o n i t o r r i s k a c r o s s v a r i o u s business line. The benefits offered by the company to its clients are:Online Platform News alert through Mobile messages and e-mail Dealer support Portfolio Doctor (Turtle) Toll Free Number (Helpline Services) Thus the company is customer focused and protects the wealth of its customers through its innovative ideas.research covers ~190 companies which represent ~69% of the market capitalization of all the companies listed on BSE as on August. 2008. It is offering an online platform to the clients which will increase transparency and make business hassle free for the clients. credit and operational reporting system Is an established brand with strong track record of high growth and profitability? Is strongly focused on nurturing & maintaining strong business relationships with corporate & institutional clients Well positioned to utilize the immense opportunities in the Indian financial sector RECENT APPROACH Edelweiss is a premium broking firm whose targets were only HNWI clients. The Risk exposure is monitored and controlled through a variety of separate but complementary financial. The company is providing the same research facility to its retail clients as it provided to its premium clients. 17 | P a g e . The company is making a shift from ESL (Edelweiss Securities limited) to EBL (Edelweiss Broking Limited). The company is repositioning itself from a niche marketer to a mass marketer and is aiming at Brand Repositioning. But seeing the opportunity in retail sector it has forayed into it.

Under this. planning & asset deployment services to high networth individuals. equity markets. Asset Management: This involves both asset management as well as investment advisory services. real estate. Institutional Equities: Edelweiss’ Institutional equities business comprises institutional equity sales. the company advises . Wealth Management: Wealth management involves providing investment advisory. transaction execution relating to structured finance. and infrastructure. and research. sales-trading. Private Client Brokerage: These services are targeted at high net worth and other individuals who actively invest and trade in the equity market.THE PRODUCTS AND SERVICES OFFERED BY EDELWEISS ARE AS FOLLOWS:- SERVICES Capita l based Agenc y based Recent initiatives/high growth areas Investment Banking: This includes services such as M&A advisory.

18 | P a g e .three funds with an aggregate corpus of over USD 330 mn.

Edelweiss Insurance Brokers Limited. PRODUCTS Advisory Based Broking (ABB) – an asset management service. The company has a policy of ‘hair cut’ which means that the assets that are kept as securities.This is a product offered by the company that takes money from the investors and invests it in the stock market on their behalf as customers are not fully aware of the stock market. and loans against mutual fund units. Treasury: The internal treasury operations manage the excess capital funds by investing the same in low risk strategies to achieve risk-adjusted returns. Wholesale financing: Wholesale business provides the high net worth individual and corporate clients with facilities such as loans against shares.Another product offered by the company in which the agent gets commission on every insurance policy done by him Arbitrage. structured products were created to meet specific needs that cannot be met from the standardized financial instruments available in the markets. 19 | P a g e . Structured products can be used as an alternative to a direct investment. or to utilize the current market trend Mutual Fund.Insurance Brokerage: Edelweiss has also entered the non-life insurance brokerage business as an IRDA registered broker in 2005 and it distributes insurance products through its subsidiary. They take money from many customers and collectively invest in the stock market. involves buying and selling a security and taking advantage of prices differences that may exists on different markets.Arbitrage.The Company provides funds to people who wish to invest large amount in stock market but are lacking in fund. Customers are advised where they should invest their total investment savings. Fund is provided for investing in only those stocks that are listed in the stock broker’s list of the company. Fund is provided against securities. as part of the asset allocation process to reduce risk exposure of a portfolio. this does happen from time to time Portfolio Management Services. or true arbitrage.this product comes under wealth management. Insurance. they are valued less than their original price.As such. loans to finance IPO subscriptions.This product invites public to participate in the bidding process. This is to save the company from loss as company has those stocks in the list that are less volatile and whose market value is good. Initial Public Offering (IPO) . Margin Funding. Structured Product. ECL Finance Limited. This is done through a subsidiary. While rare.

Demat account- it refers to Dematerialized Account. It is necessary to sell and buy stocks. So it is just like a bank account where actual money is replaced by shares. One has to approach the DPs, to open his demat account. So one doesn’t have to possess any physical certificates showing that you own these shares. They are all held electronically in the account. As one buys and sells the shares, th ey are adjusted in their account. Just like a bank passbook or statement, the DP provides with periodic statements of holdings and transactions. Commodity market- In this market metals and agricultural products are traded. MCX for metal products and NCDEX for agricultural products.

CLIENT REVENUE MIX

Institutional/corporate client individual clients

22%

78 %

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GROWTH STRATEGY

The Company’s growth areas are basically across three categories- Products, asset classes and client segments. It basically focuses on HNWI clients, and now it has come into the retail segment which is its source of growth. From the asset side it gets fixed income and is also into real estate. The popular products are wholesale financing, financial product distribution etc.

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MAIN TEXT

FINDINGS
Sales and distribution management constitutes one of the most important areas for customer satisfaction. Sales management has been defined as the management of a firm’s personal selling functions while distribution is an indirect function. Therefore integration is required between sales and distribution functions.

(1)SELLING EDELWEISS

STRATEGY

OF

Relationship strategy The key to success in selling is the ability to establish working relationships with the customers in which mutual support, trust and goals are nurtured over time. Edelweiss stresses on building good relationship with its clients as in case of financial firms the intangible nature of services makes Relationship strategy vital. The main purpose of a salesperson is not just to make sales but to create customers. Product centered selling and client centered selling Product-centered selling 1. Stress on research and development 2. 3. Client-centered selling Stress on research and 1. development of relationships

of producton knowledge of product with clients knowledge of Emphasis Emphasis on 2. customers Influenced b y p a s t performance directed more to consideration of of 3. products and future Growth and developments competition and present situations in the client World Seeks to be accepted as a seeks to raise client’s reliable, 4. expectations of credible source of information Personal excellence and service

4.

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The strategy of Edelweiss is a mix of product centered and client centered strategy. (2) EDELWEISS’S SALES MANAGEMNET PROCESS

First a strategic sales program is made keeping in mind the company’s objectives. Then accordingly the sales program is implemented. Following this there is an evaluation of the sales force performance. The company adopts majorly Direct Selling Strategy to sell its products. The concept of telemarketing is being adopted by the company. Appointments are fixed over the phone which is followed by the client meeting. The whole process can be shown with the help of a flowchart:-

Create direct selling process

Identify the custom er

Make appoint ment with customer

Give suitable demo &pitch

Ensure knowledge about product

Ensu re incre ase in cust. value

After sales prompt servic e

Close deal

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Realistic. thus contributing to the overall growth of the enterprise. it is a two way communication and client queries are always welcomed.e.they convey to customers the benefits they will get after getting associated with Edelweiss. Measurable. like online platform and local dealer support. and Time. Though the company is new in Kolkata. AIDAS THEORY OF SELLING ATTE ATTENTION Seek the attention of the prospect NTIO N INTE INTEREST Maintain the attention by creating REST client interest DESI RE DESIRE ACTI ACTION ON Create desire in customer’s mind to buy the product Induce the client to buy the product .Representatives approach the customers with the strength of Brand name that Edelweiss has. Interactive Approach.the approach is interactive i.Sales goal should be SMART – Specific.Sales organization always makes effort to increase sales. it is a well established brand in Mumbai. Attainable. thereby achieving the principle of profit maximization.bound (3) METHODS OF APPROACH ADOPTED BY SALESPERSONS TO SELL EDELWEISS PRODUCTS Cashing in on Brand Name or the Company’s reputation. Customer Benefit Approach.

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(4) THE MAJOR ATTRIBUTES OF THE SELLING STRATEGY IN THE COMPANY Sales target. The project part that covers D-Mat account sales.SELLING SKILLS . interacting with them and convincing them to maintain a good relationship with the company so that the company is in a profit. they are as follows:- Possession of these skills is very important as conversion of a prospect customer to a company client very much depends on the selling skills and how the matter is put forth the client. This is to motivate others to perform well and at the same time appreciate the hard work done by the winning team Continuous Evaluation.Talking about the skills that a salesperson should posses. Motivational Rewards. This is done to ensure that the company has the best sales force Training Program.Team leaders are given training regarding the product and market so that they can handle customer queries.the sales team has to appear in the evaluation conducted by the company to test their market and product knowledge. involves calling the clients.The team who performs the best is given some rewards. Thus the company follows an effective sales strategy (PUSH STRATEGY) which is customer focused.The sales team is given a fixed target which it needs to achieve within a month. 25 | P a g e .

three market coverage strategies are possible: intensive. Through distribution channel the product passes through intermediaries before reaching the end consumer. The selection of a particular channel design is determined by factors related to market. number of potential customers. Distribution is one of the elements of marketing mix. The functions of distribution channels are to create time. buying habits of customers. at a reasonable cost. geographical concentration of markets Product considerations . buyer behavior and company characteristics. attitude of middlemen. cost The key differentiating factors of a successful distribution channel are as follows: Quality of advice given by the company to its customers Choices of products After sales service Settlement of issues if any Managing distinct cultural and social ethos Marketing the product as an essential financial product Building trust . Perishability Company considerations. Distribution channel can have number of levelsZero level channel One level channel Two level channel Choice of distribution depends on channel Market consideration – consumer or industrial market. selective or exclusive distribution. some degree of co-operation and co-ordination must be achieved among the participants in the vertical marketing system. retailers. Services provided by the channels.Technical nature. all the tasks implied by a free and competitive exchange process. agents. space and state utilities which constitute the added value of distribution.Financial resources. desire for control of channels Middlemen considerations – Competition.(4) DISTRIBUTION STRATEGY Distribution channels are organized structures performing the tasks necessary to facilitate exchange transactions. size of order. Regarding the number of intermediaries is necessary. Distribution channels can be characterized by the number of intermediary levels that separate the supplier from the end-user. sales potential. When the channel structure is indirect. Experienced and competent management. brokers) are required because manufacturers are unable to assume by themselves. Availability of desired middlemen. Distributors (wholesalers.

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The company is distributing Pamphlets among the customers for its promotion and building an image in the minds of the customers. While CCI is low if we consider the retail segment. Distribution strategy channel Setting distribution objectives in terms of the customer requirements Finalizing the set of activities that are required to be performed to achieve the channel objectives Organizing the activities so that the responsibility of performing the activities is shared among the entities that are meant to perform these activities Developing policy guidelines for the smooth functioning of the channel on a day to day basis The distribution extension decision is based on distribution development index (DDI) a Category Development Index (CCI). Per capita consumption of its products in the market relative to per capita consumption of the total financial products is low. accumulation. 27 | P a g e . and assorting To minimize the distribution costs through reutilizing and standardizing transactions to make exchange more efficient and effective To facilitate the searching process of both buyers and sellers by structuring the information essential to both the parties To provide a place for both parties to meet each other and reducing uncertainty. If we see the current situation of edelweiss is considered then it can be seen that DDI is high as the brand is readily available in the market as compared to its competitors. in which the company is a new comer. In the retail sector the strategy of Edelweiss is to go for Brand Repositioning and become a mass marketer.Role of distribution channels To adjust the discrepancy of assortment through the process of sorting. So the strategy adopted by Edelweiss would be “Concentrating on demand generation activities”. allocation.

Client Advisory Services is mainly looking into five channels for distribution-: A. But as a company it has its own distribution strategies to sell products to the customers. The company has a multichannel distribution system. Direct Selling Agency D.low Edelweiss is itself an intermediary between NSE and client and is a part of the distribution channel. Sub Broker/ Remissor C. Corporate Accounts E.distribution development H L L H Category development H. Inbound Team B. (5) DISTRIBUTION CHANNELS OF THE COMPANY The company has named the services provided to the customers as CLIENT ADVISORY SERVICES (CAS).High L. Free Accounts 28 | P a g e .

They have a team of around 7-8 members who source the clients for them. These agents get commission from the DSA’s and they have no connection with the company.This is a way to get bulk accounts from the companies. Reporting Hierarchy: Region al Hea d Area Sales Manag er Team leaders Fixed cost agent s Sub – Broker/ RemissorSub brokers charge commission for the business they bring to the company by bringing clients.CAS currently has an inbound team of 30 members divided into four team leaders. This is the major contributor to the company’s sales. They have a fixed participation in the company.Inbound Team: . These fixed cost agents are sourcing accounts directly from the market. Corporate Accounts. Team leaders are reporting to ASM which in turn are reporting to the Regional Head. Each agent has a specific target assigned to him. Each team leader can have 8 fixed cost agents reporting to him. Sub-brokers have their own office space and they need not work in the office of the company they are working for as sub-broker. Free Accounts. . They are given commission on the basis of account clients under Edelweiss.The rediffmail users who registered in our site get free account(post paid) and one month free trade. First an appointment is fixed in the target company which is followed by a corporate presentation. NSE and BSE listed companies are offered free accounts. The DSA’s looks for agents who can work under them. Remissor is given a certain low % as compared to Subbrokers as they are using the resources of the company Direct Selling Agents (DSA)DSA’s are working for the company but they have no profit participation. Whereas Remissor is a type of Sub-Broker that uses the office space of the company it is working for.

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the phase after the channel has comes into work. The next phase is ex-poste phase.(6) CHANNEL MANAGEMENT TASKS Design of channel structure Ex an Ex-ante phase Distribution channel strategy  Channel objectives  Activity finalization  Activity organization  Developing Policy guideline s Establishing the channel Motivating the channel members Ex po Ex-poste phase Resolving conflicts among c h a n n e l m e m b e r s Managing the distribution channels is an important task. in which the channel members are motivated and the conflicts are resolved. i. .managing before the channel is actually executed.e. During this phase the channel is designed and established. This is called the ex-ante phase. It involves two phases.

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telephone PULL FORCE 31 | P a g e . historical relationships Telephone.(7) INNOVATION IN DISTRIBUTION CHANNELS Edelweiss’ Retail stores are an approach to shift from traditional marketing channels and this can give the competitive edge and is the differentiating factor. media Advertising Financial media Recommendations. internet Face to face. (8) DISTRIBUTION CHANNEL STRATEGY OF EDELWEISS BASED ON CUSTOMER BEHAVIOUR P U S H F OR C E Financially unaware/unsure Financially aware/unsure Financially astute/sure Financial niches sales force Telemarketing.

Fiduciary responsibility. The major characteristics of financial services are – Intangibility. Thus the responsibility of company increase in case of financial products Buying Pattern. The project involves interacting with the existing HNWI clients and the clients who are in a dormant stage and convincing them to start business with the company and maintain their association with the company. This involves calling the existing clients and client visits. Long term.Many consumer products are taken by the customer on an impulse while taking a financial product involves a long thought process. prefers and accepts the company’s products and services over competitors’ offerings and recommend others to buy. Mutual funds. As a result the customer starts identifying and associating him with the product. Inseparability. Leasing. 32 | P a g e . Lack of ownership. housing finance. They come in contact with the customers only in case of any complaints. Perishability. stock broking and many others. In case of financial company the differentiating factor is the services provided by the firm. fruitful relationships by developing long-term bonds. In case of a financial product the company personnel interact directly to the customers and convince them to buy the product. Moreover it costs less to retain customers than to compete for new customers. It is identified as all those activities involved in the process of converting savings into investment.(9) A SHORT COMPARISON OF CONSUMER PRODUCTS TO THE FINANCIAL PRODUCTS WHEN IT COMES TO SALES AND DISTRIBUTION The financial services are different from the consumer products offered. Heterogeneity. venture capital. Financial services basically mean all those kinds of services provided in financial or monetary terms. There are number of factors which make the financial services different from physical goods. If we make a comparative analysis following points can be highlighted:Interaction with the customer. Hire purchase. Merchant banking. It distributes its products to the distributors and after that does not come in the picture. factoring. These services include. (10) VARIOUS ASPECTS OF CUSTOMER RELATIONSHIP MANAGEMENT The customer relationship is aimed at creating strong long lasting. FINANCIAL SERVICES Edelweiss is financial service providing company. where the essential commodity is money. This helped in getting an insight into the various aspects of customer relationship. The term financial services in its broader sense refer to “mobilizing and allocation of savings’’. Insurance.In case of consumer products the company has no direct contact with its customers.

PRICE. the interactive marketing happens between the employees and the clients and the external marketing is what takes place between the company’s management and the clients. . PROMOTION) but when it comes to services marketing 3p’s are added to it:PEOPLE The importance of people within the marketing of services has led to great interest in internal marketing. PHYSICAL EVIDANCE The exterior design can be utilized to communicate e. training.SERVICES MARKETING TRIANGLE FIRM Internal marketing External Marketing EMPLOYEES CUSTOMERS Interactive Marketing According to Grönroos the internal marketing has to be managed by the company’s leadership. This recognizes the importance of attracting.g. the history and values of the respective institution. People form an important part of the differentiation in a service organization which can create added value for the customer. motivating. PROCESS The processes by which services are created and delivered to the customer is a major factor within the services marketing mix as services customers will often perceive the service delivery system as part of the service itself. 3P’S OF MARKETING SERVICE Coming to the Marketing Mix generally there are 4P’s (PRODUCT. and retaining quality employees by developing jobs to satisfy individual needs. helping to convey particular messages to the customer and creating a special atmosphere affecting employees and customers likewise. The use of color in combination with texture and finishes is identified to be a simple but very effective factor of differentiation. PLACE.

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Two types of graphics can be used to establish identity. marketing graphics and branding graphics. MODERN CONCEPT MARKETING Starting point Tar get Mar ket Focus Cons umer Nee ds Means Integ rated Mark eting End Custome r Satisfacti on Class ical Contemp dual Customer orary Custo mer Indivi Individual Customer CRM Cust omer Experience Customer Exper ience CRM Loyalt y Customer Loyalty Need of CRM To keep existing customers in the face of intense competition and the higher comparative cost of acquiring new customers Intense completion in the industry results in emphasis on service quality as means of achieving competitive advantage close and long term relationship with customers imply continuing exchange opportunities with existing customers at a lower marketing cost per customer Good relationship with customers can result in a good word-ofmouth publicity. branding graphics enhance brand image and should be used complementary with all marketing activities (Grow. Service quality cracks can often be prepared over where good relationships have existed previously To pursue a customer centric strategy rather than a product centric strategy . 2004). While marketing graphics promote products and services.

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This is followed by development of customers through customization and then steps are taken to retain the customers. (11) HNWIs VS RETAIL CLIENTS . First the customer needs are identified and they are acquired.MODEL FOR CRM MARKETING Customer’sCustomer need assessment & needs assessment acquisition and acquisition Customer Customer development through development personalization & through customization personalizatio n& customization Customer retention & Customer referring new retention andcustomer referring new customers Addition Addition of values with of value products & services with products Contact & involvement and services Intimacy & one to one relationship Contact and involvement Price offers Intimacy Special facilities/services and one to one Information sharing relationship Pr ic e of fe rs Special facilities/ser vices Information sharing Relationshi Relationship marketing p Commitment marketing Recognition Commitme nt Respect High customer High customer satisfaction satisfaction Increased Increased market share market share High customer loyalty High customer High customer retention index loyalty High customer retention index Life time customer Recognition Reward Res pect Rew ard Reci proc atio n Tra nsp are ncy Share values Share values Reciprocation Transparency Life time customer CRM involves the above shown process.

HNWIs Individualized distribution Individualized Message Share of customer Profitable customers Customer retention Individual customer Customized offering Focus on few but Customers Extra services Proactive marketing RETAIL Mass distribution Mass advertising Share of market All customers Customer attraction Average customer Standard product Focus on large number of customers Normal services Reactive marketing 35 | P a g e .

So they are targeting the male clients Educational qualification.the company is targeting only those people who are of 28yrs. The various categories areAge.the company is targeting people who have an annual income of 3lakhs and above. This is to ensure that they have a sound understanding of stock market Gender. As Edelweiss is a premium broking firm so while it is catering to the retail clients but still it is maintaining its image Income level. of age and above.Male clients are being targeted as it is the case with most of the families that the male members’ trade and women don’t take much interest in trading. This ensures that they are able to invest in the stock market CLASSIFICATION OF CUSTOMERS ON BASIS OF THEIR VOLUME & LEVEL OF INVESTMENT 36 | P a g e . (12) MARKETING STRATEGY OF EDELWEISS IN KOLKATA SEGMENTING. TARGETING AND POSITIONING The company is segmenting the customers on the basis of demography.The above comparison shows that the strategy adopted for retail clients is different from that of HNWIs depending on their values and profit they bring to the organization.The Company is looking for educated customers who can understand the stock market and get the advice given by the company.

Real Estate Funds.to roll out Wealth Management Services to cater its High Net worth Individuals (HNI) in Mumbai. It believes in providing quality service to its clients. The technique for which Edelweiss is going is Event sponsorship and this is an effective way to cover mass media. Sun TV and Suzlon. It maintains a good client base and provides quality services to them. Few strategies recommended by Edelweiss Our recommended strategy is to be overweight domestic-focused sectors: telecom. Edelweiss will be contributing a whole range of wealth management products and alternative investment options such as structures product. The company is POD (Point of differentiation) is its quality Research and development. As the volume of customers decrease their level of investment increases that means that there are few clients that account for most of the profits of the company. Crompton. Even as it enters the retail segment. TIE-UP WITH UNION BANK OF INDIA. Art. industrials. Under the conditions of the tie-up. SBI. consumer discretionary. The research and development wing has taken a center stage in the innovation process going forward. HDFC Bank.According to the above diagram the HNWIs are the customers whose volume is low but their level of investment is huge so they are of much importance.Edelweiss is the sponsor of ICL and this will give it wider coverage and help it build its brand. FACING COMPETITORS THE Flank attack is the strategy adopted by Edelweiss to attack its competitors. Here the company is attacking the competitors on the basis of brokerage and research. While other companies are just selling their products Edelweiss by conducting this survey is actually trying to understand the investment needs of the customers. The company is thus positioning itself as a premium broking firm as it basically caters to HNI clients. and BFSI Our top large cap picks are Bharti. In this strategy the company attacks on the competitor’s weak point. Hero Honda. 37 | P a g e . Edelweiss is looking for long term customer base and for that reason it is trying to understand the investment pattern of the customers and accordingly suggest them the financial products matching their risk profile. BHEL. it is maintaining its premium image as is clear from the choice segmentation of customers. EDELWEISS IN NEWS SPONSOR OF ICL.

Increasing affluent class. enhance margins with stock exchanges and establish new offices. it plans to invest a large part of its IPO in prepaying of loans. domains such as investment banking. be it investment banking.The company should maintain the good working force that it has with it at present and improve it to gain competitive advantage 38 | P a g e .the Company has a huge opportunity before it as it has a vast untapped retail segment. Moreover. and the expansion of capital markets.The business is prone to a high risk and minimizing risk is the need of the time People. Foreign investors have pulled out from stock markets leading to heavy losses in stocks and mutual funds Because of such uncertainty many people have started saving money in banks rather than investing Business Volatility.The business in which the company is in is very volatile and keeps changing with the market situation. PMS are likely to experience outstanding growth CHALLENGES BEFORE THE COMPANY More people have sold the shares in the Indian share market than they bought in the recent weeks. Huge untapped retail segment . The Company is already well established in domains such as investment banking. increased geographic penetration. With a continuous rise in number of HNIs. insurance broking or any other domain The focus on diversity has already reduced the risk of client and product concentration.The competition is fierce among different market players and standing in this situation is a challenge Risk management.OPPORTUNITIES BEFORE THE COMPANY Strong economic growth. This has added to the fall of sensex to lower points. So to keep a good pace of growth is the challenge that lies ahead Competition.The rise of the affluent class will aid the growth of the company The Indian financial sector carries immense growth opportunities. growth of SMEs and the increasing need for capital among Indian corporations are expected to continue to drive India’s financial services industry. wealth management.

According to this model customers can be classified into three classes on the basis of their investment preference. AGG RESSIVE CUSTOMERS: 10% 25% 6 5 % .METHODOLOGY Research Research Methodology Methodology Consumer Consumer profiling & Investment profiling and need analysis Investment need analysis Market Survey Comparative Analysis Market Survey Comparative Analysis Questionnaire Questionnaire Suggesting suitable Suggesting products suitable products Telephonically De-mat De-mat account sale account sales Telephonically Sales & Sales distribution & Existi Dorm ng Existing ant Dormant custo Customers custo Customers Distribution mers mers KEY FINDINGS (i)Consumer profiling and investment need analysis The survey involved classifying the customers into three categories on the basis of their risk appetite following the Jacob’s Model.

Bonds Stocks Short term 39 | P a g e .

While a conservative person invests very less in the stock market. If he is investing more in the stock market that means he is willing to take risks and thus is an aggressive customer.MODERATE CUSTOMERS CUSTOMER CONSERVATIVE Bonds term Stocks Short Bonds Stocks Short term 20% 3 0 % 2 5 % 50% 50% 2 5 % CONCLUSION Whether a person is aggressive. then it is important to tell them the right mix that they should have if they want to be aggressive. 10-20 4% 1 1 % R s . Like they think that they are aggressive but do not invest that amount in stock market. RISK TAKING ABILITIES OF PEOPLE LOSS WILLING TO INCUR ON INVESTMENT OF Rs. If a person is considers himself o be conservative then he should invest more in bonds as they guarantee fixed return. moderate or conservative the determining factor is the investment he makes in the different sectors. A moderate customer invests partially in stocks and partially in bonds and short term. 100 Rs. Above 0 Rs. Many people are unaware of the category they fall in. 5 -10 14% .

40 | P a g e . 1-5 35% 36% C o n c l u s i o n While classifying people under the three categories.e. they were not willing to take any risk when it comes to investment. Only 4% people were aggressive and ready to take risks to maximize their r e t u r n .ZERO Rs. it was seen that most of the customers were conservative i.

COMPARITIVE ANALYSIS Edelweiss Sharekhan Religare India Infoline Motil al Osw al ICIC I Dire ct Indiabulls Brokerage Competitive competitive nominal High Services Onlin e tradi ng Premium Good low average average good nominal Very good high average Yes with excelle nt Softwa re average Yes with the most preferr ed yes yes yes Yes but no Streaming Realtime quotes Research Excellent good good Bra nd ima ge AMC average average average averagegood satisfactory average Excellent Very Not good in Kolkat a Free for the 1st year.750 Rs.500 Exposure 3-4 times 5 times 5-6times 3-4times 6-7times 3-5 times 6- . 562 Ver y goo d Rs.300 Rs.325 Rs.725 Rs.550 Rs.500 Rs.500 Dema t accou nt charg es Free accou nt openi ng Rs.DEMAT ACCOUNT SALES Along with classifying the customers into various categories the de-mat was also pitched to them especially to those customers who lacked in their investment in the stock market and did not had the right combination of investments.400 Rs.425 Around Rs.325 Rs.300 Rs.

There are different plans depending on the trading volume of the clients Services offered by Edelweiss are premium and one of the best among all. Though there are many firms that are offering very low brokerage to the clients. the company has come up with its new prepaid plans in which the brokerage is as low as 10 paisa.7times INTERPRETATION From the above table following conclusions can be drawn:When it comes to brokerage. Edelweiss is very competitive. 41 | P a g e .

67 Edelweiss HDFC Sharekhan Indiabulls ICICI others Motilal Oswal ICICI is the market leader followed by Sharekhan. the benefit that it enjoys is that the customers can have their account I its bank so fund transfer is very easy. ICICI is the major competitor.93 17. So Edelweiss needs to focus on these two competitors.19 6 27. So the company needs to work on it and establish a good brand image as it matters a lot in this industry From the above table it can be seen that ICICI and Sharekhan are its biggest competitors. The Brand image is not there in the minds of the people as the company is new in Kolkata. This is the reason that despite charging a high brokerage it is very popular among masses.71 15.Edelweiss has online trading platform that has live streaming quotes and Express trade facility wherein the client can punch in the trade while looking at the values of the stocks. Edelweiss holds 6% of the market share and shows a bright potential of growth.81 6.69 13. Sharekhan is customer friendly and its terminal is considered very fast. . Besides it has a very good brand image and people trust on that. Research of Edelweiss is best among all its competitors and no one can beat Edelweiss on that The only point that is not in the favor of Edelweiss is low Brand equity in Kolkata. COMPARITIVE MARKET SHARE OF EDELWEISS 12.

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When it comes to investing one’s income 36% of the people prefer to be on the safer side and avoid risk by investing in the bank deposits. What is your preferable tool of investment? All Values In Percentage Term 40 35 30 25 20 15 10 5 0 Bank Deposit Real estate Derivative instrument mutual fund Gold and bullion Equity shares 36 25 22 7 5 5 Conclusion. Many people like to inquire themselves directly from the company while 5% of the people look for internet as a medium.SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS Q. This graph shows that broking business is a profitable one as it attracts the large volume of potential customers Q. The next option is mutual funds as they are comparatively risk free. Equity shares are the next best option . Through which of the channels do you usually buy a financial product? Internet Broker Direct from the company 20% 5% 75 % Conclusion When it comes to channels of buying a financial product most of the people prefer to buy it from a broker as it is the most trusted source and they have a good market and product knowledge.

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Reference group is a good source of information about the company. While a 22% of graph shows that equity shares are considered as a good option by the investors due to their high return. Q.4 2 0 . Q.6 5 0 Internet Pr in t a n d el ec tr o ni c m e di a reference group By chance C o n c l u s i o n The above responses shows that most of the people came to know about Edelweiss by chance while many through reference group. How did you come to know about Edelweiss? 40 35 30 2 5 2 0 1 5 1 0 39. Are you aware of all the products offered by Edelweiss? All figures are in percentag e term .7 2 7 . This shows that the company needs to work a lot towards creating Brand Awareness in Kolkata.3 12. So it can be said that most of the people prefer risk-free return.according to the respondents.

70 60 50 40 30 20 10 0 Yes No 64 36 Conclusion. In this category few of the respondents knew about the equity share trading but were 44 | P a g e .64% of the people are not aware of the products offered by the Edelweiss.

44% of the respondents said that they are not using any Edelweiss product at present.44 21. Q. Have you used any Edelweiss financial product? 90 80 70 60 50 40 30 20 10 0 Yes No 78.56 In response to the question 78.not aware of all the products. so it gives a clear picture that there is a huge untapped segment among which the product needs to be pitched Q. Which Edelweiss product are you using now? 10% 5% 40% mutual fund De-mat debentures o t h e r ( s t r u c t u r e d p r o d 45% . while a large chunk of respondents had never heard of Edelweiss.

Of the 21.u c t ) Conclusion From the response it can be seen that De-mat (equity shares) is the highest selling product of Edelweiss followed by mutual fund.56% of people using Edelweiss products nearly 50% prefer equity shares. 45 | P a g e .

Factors affecting the choice of a company All figures are in percentag e term 30 28 23 2 0 25 20 18 . Best company according to the respondents 35 30 25 20 15 30 21.Q. This is mainly because of its good Brand Image and linked bank account. The company needs to give attention to the Brand image building. 5 6 5 4 4 0 6 C o n c l u s i o n 30% of the respondents ranked ICICI Direct as the number one share trading company. Sharekhan is preferred for its customer friendly approach and trading terminal.44 10 12 1 0 5 7 . Q. Still Edelweiss stands in the competition and is preferred mainly because of its research facility.

5 0 Brand Innovation Services Dea Advance d Brokerage Image Proximity ler R &D with supp re sidence ort C o n c l u s i o n When it comes to the choice of the company the factor that affects the decision to the largest extent is the Brand Image i.89 5 8 3. The best example is ICICI. Of the above factors all are present in Edelweiss except a good Brand Image in Kolkata. the reputation of the company. Brokerage is the second most important factor. 46 | P a g e .e. which it needs to build. Edelweiss has good research so it has the capability of attracting customers.15 1 0 6.

ANALYSIS OF THE QUESTIONNAIRE FOR EXISTING CLIENTS Association with the company 6 months 1 year 2 years more than 2 years 8 % 11% 43% 38% 47 | P a g e . Possible sources searched for financial product information 35% 30% 25% 20% 15% 10% 32% 19% 21% 1 1 % 17% 5% 0% Conclusion Most of the respondents 32% trust their friend’s advice when it comes to financial product information especially in stock market. They trust on their experience with the company and act accordingly.Q.

Satisfaction level of the customers 50 45 40 35 30 25 20 15 10 5 0 Ex t r e m e l y s a ti s fi e d satisfied neutral dissatisfied 49 32 11 8 Conclusion 49% of the customers are satisfied and 8% dissatisfied.Conclusion Most of the customers in Kolkata are newly acquired as the company is new. Expe ctati ons of the cust omer s reduction in brokerage improved service quality more tips customer friendly norms 22% 34% . The company needs to work on these customers and minimize their dissatisfaction.

48 | P a g e .13% 3 1 % Conclusion Most of the customers want the brokerage to be reduced and services to be improved.

.`ANALYSIS OF QUESTIONNAIRE FOR DORMANT CLIENTS Reason for disassociation Liquidity crisis Alternate brokerage firm lost faith in capital market temporary breaks 11 % 7 % 56% 26% C o n c l u s i o n Because of the present turmoil in the stock market most of the people have taken temporary breaks and are not trading. While 7% of the people have found alternate broking houses.

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Attractive features of the competitors low brokerage proximity to residence trained people in desk good system support good research 3 % 32% 43% 10% 12% Conclusion Low brokerage is what attracts most of the customers. R e t u r n i n g b a c k 6 months-1year 2 year 2years and more never 5% 14% 8% 7 3 % . Besides Edelweiss needs to improve its quality of service.

50 | P a g e .Conclusion 8% of the customers say that they will never return back.

under this the CRM strategy of the company has been covered. Revealing the distribution channel strategy of Edelweiss based on customer behavior Various aspects of Customer Relationship management.Customers expect the company to improve its service. Moreover attributes of the selling strategy of the company have been revealed. Besides analysis of the sales management process of the company has been done. Sales promotional strategy adopted by Edelweiss during the financial turmoil-The company is going for aggressive advertisement campaign and putting hoardings all over the place to create awareness. 51 | P a g e . Competitive advantage of Edelweiss over its rivals. The method of approach adopted by salespersons to sell Edelweiss products has been covered and the selling skills required have been found out. Various aspects of the Distribution strategy of the company.The risk taking ability of people decrease with an increasing age. Satisfaction level of the customers.FINDINGS Various aspects of selling strategy of Edelweiss.Majority of the Edelweiss customers are satisfied from the service provided by the company.Among the Edelweiss products equity is the most preferred investment option Factors affecting the choice of a company.various competitors of the company have been found out to know the position of Edelweiss and help it formulate the strategies accordingly Risk Taking Ability.It was found that people are not aware of Edelweiss in Kolkata that much as about its competitor companies Popularity of the Edelweiss products.Brokers.under this the findings are.The various aspects of it has been found out in this report Competitor analysis. Mix of product centered and client centered strategy . Innovative approach in distribution channel. Expectations of the customers.Edelweiss’ competitive advantage is its research and development department and online trading platform that is user friendly.From the analysis of the questionnaires it was found out that brokers are the preferred channel for buying a financial product Preferred tool of investment by the customers – The preferred tool of investment was found out to be deposits as they have less risk Awareness about the products of Edelweiss.Selling strategy adopted by Edelweiss is Relationship strategy. people take more risks when they are young Preferred channel for buying a financial product. Various distribution channels of the company.As the company is entering into retail segment so the company’s new marketing strategy has been found out Opportunities and challenges before the company.Role of distribution channels.Brand image and Brokerage play a vital role when it comes to the choice of a company Reliable source of financial information-People consider their friends to be a good medium when it comes to knowing about financial products. Characteristics of services marketing Difference between the ways of catering to HNWIs and Retail clients Marketing strategy of Edelweiss in Kolkata.

brokers so that they can tap a large chunk of the customers The company should work on building Brand image in Kolkata as it plays a major role when it comes to taking decision about a company The company needs to go for aggressive advertisement campaign The company should leverage on its research and aggressively use it to promote the products Special training about company products to sales team so that they create awareness among the people Edelweiss should leverage its competence not only for HNWIs but also for retail and corporate clients Bring student plan to attract the student especially from Engineering Medical and MBA field to capture customer before others. RECOMMENDATIONS Make the complaint process and complaint redressal process easy so that there is a scope of improvement Increase two way communications between the company and the client If the customer complaints are handled properly they will again do business with the company There should be more number of brokers and sub. The CRM strategy of the company is different for Retail customers and HNWIs.The customer base of Edelweiss is basically of institutional clients The findings are shown in detail in the analysis of the graphs and findings in the main text. CONCLUSION From the analysis of the questionnaires and above findings it can be concluded that Edelweiss approach to sales and distribution strategies is right and its innovation in the distribution channel by tie-up with retail shops will help it a lot.Customer base of Edelweiss. 52 | P a g e . When it comes to competitors ICICI is its biggest competitor and the company lags behind when it comes to Brand Image.

com www.edelcap.REFERENCES www.edelweiss.wikepedia.com www.google.nseindia.com Valuable insight provided by the company guide and the faculty guide 53 | P a g e .in www.com www.

What is your preferable tool of investment? a) Bank deposits c) Derivative instruments e) Gold and bullion 5. How did you come to know about Edelweiss? a) Internet c) Reference group b) Print and electronic media d) By chance b) Real Estate d) Mutual funds f) Equity shares b) Broker d) others. Annual Income a) > 3 lakh c) 5 lakh. As a Management Trainee currently working with Edelweiss Securities I want to thank you for giving us the opportunity to serve you. What are the possible sources that you search for financial product information before making any decision? a) Television/Radio c) Newspaper/Magazine e) Word of Mouth b) Internet/Website d) friends f) others. Through which one of the channels do you usually buy a financial product? a) Internet c) Direct from the company 4. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far. please specify 6. please specify 3.QUESTIONNAIRE Dear Customer.5lakh d) 7 lakh and above 2. ………………………………………………………………………………………………… ………………………………… ……… …… 1.7 lakh b) 3 lakh. We appreciate your business and want to make sure we meet your expectations. Are you aware of all the products offered by Edelweiss? a) Yes b) No 54 | P a g e .

com 11.7. How long have you been associated with Edelweiss? a) Less than 1 month c) 6-12 months b) 1month-3month d) more than 1 year 10. Evaluate the performance of following firms by ranking them on a scale in ascending order ICICI direct. Please indicate the level of importance regarding your decision factor in buying a financial product in the following scales: 1-not important 5-extremely important 1 Reputation of the company Innovative products Service of the firm Proximity of firm with residence/office Dealer support and guidance Advanced research & development department 2 3 4 5 55 | P a g e .com Share khan Motilal oswal HDFC securities Edelweiss India Infoline Religare India bulls 5paise. Have you used any Edelweiss Financial products? a) Yes b) no 8. Which Edelweiss Products are you using now? a) Mutual Fund c) Debentures b) demat d) others. please specify 9.

Will you recommend Edelweiss products to your friends/family? a) Yes b) no b) Satisfied d) less satisfied 14. What is your opinion about selling strategy of Edelweiss? a) Excellent c) Average b) Above average d) below average 17. In the current financial turmoil according to you what should be the sales promotional strategy for Edelweiss? a) Point of purchase display television c) Through leaflet e) Personal selling b) Aggressive add campaign in radio and d) telemarketing 18. If currently you are not using Edelweiss products and edelweiss further enhances its products/services by adding your desirable features. will you buy it? a) Yes b) no 15. Are you satisfied with Edelweiss’ current services in sales and distribution? a) Yes b) no 16. Please rate the overall performance of Edelweiss on following scales a) Extremely satisfied c) Neutral e) Dissatisfied 13. According to you what is the competitive advantage of Edelweiss over its rivals? a) Minimum cost c) Quality of service providing persons e) Diversified product portfolio b) Our quality of service d) easy availability of service f) Good research input 56 | P a g e .12.

Personal Information (i) Name: ………………………………………………………………………………..19. (ii) Age: (iii) Gender: (iv) Marital status: less than 25 male Married 25-35 35-45 female single 10th pass 12th pass graduate post 45-55 more than 55 (v) Educational Qualifications: graduate (vi) Occupation: service business profess ion other. please specify Phone no: Email id: Signature: 57 | P a g e .

You prefer to return back with Edelweiss in a) 6 months c) 2 years and more b) 1 year d) never 5. What according to you is the weakness of Edelweiss? a) Low brand awareness c) Services b) brokerage d) others.FOR DORMANT CLIENTS QUESTIONNAIRE 1. Do you support the transition of Edelweiss from niche to mass market? a) Yes 58 | P a g e b) No . If you are associated with other firm. Why you are not associated with Edelweiss? a) Liquidity crisis market c) Alternate brokerage firm b) lost faith in capital d) temporary breaks 2. please specify 4. what are the features that attract you? a) Low brokerage c) Proximity to residence e) Trained people in the desk b) Good system support d) Research input 3. Which sector’s performance is best? a) Equity c) Insurance b) mutual fund d) portfolio 6.

8.. Personal Information (i)Name: (ii) Age: (iii) Gender: less than 25 male 25-35 female single 12th pass graduate post graduate 35-45 45-55 more than 55 (iv) Marital status: Married (v) Educational Qualification 10th pass (v) Occupation: service business profess ion other... In which product did you faced the problem? a) Equity and Derivatives c) Portfolio b) Commodity d) E-broking e) Any others.. please specify…………………………………………………….... please specify (vi)Contact Details: Phone no: Email id: Signature: 59 | P a g e .. 9.7. Any suggestion that you would like to put forward by which Edelweiss can improve on its services …………………………………………………………………………………………………… ……………………………… ………………………………………………………………...

what are your expectations from Edelweiss? a) Reduction in brokerage c) Improvement in service quality b) Providing more tips d) providing more lenient and flexible Customer friendly norms 60 | P a g e . As a customer. In current global turmoil scenario. What are the products that you have opted from Edelweiss? a) Equity c) Insurance b) Dematerialization c) Portfolio management e) Any other. Since how long you have been associated with Edelweiss? a) 6 months c) 2 years b) 1 year d) more than 2 years 2. a) Excellent c) Good e) Poor b) Very good d) below average 4. mention your level of satisfaction derived from Edelweiss.EXISTING CLIENTS QUESTIONNAIRE 1. 3. (Please specify)………………………………………………….

Personal Information (i)Name: (ii) Age: (iii) Gender: ……………………………………………………………………………. less than 25 male 25-35 female Married 10 th 35-45 45-55 more than 55 (iv) The marital status: (v) Educational Qualification: (vi) Occupation: service single 12th graduate post graduate business profession other. You would recommend Edelweiss to your a) Family c) Anyone without hesitancy b) friends d) no one 6..5. Your recommendation to make Edelweiss better? ………………………………………………………………………………………………. please specify (vii) Contact Details: Phone no: Email id: Signature: 61 | P a g e . 7.

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