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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found in the project will be completely my responsibility. 2010 to 12th June. 2010 in partial fulfillment of PGPIB Program. 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. any discrepancies. if any.AUTHORIZATION I. 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.011103017 3|Page . Edelweiss) and Prof. Gyan Chand Jaiswal (Area sales manager. . Signature: Place: Kolkata Date: 13th July. 2010 Name.Susnat Pradhan Enroll No. However.

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

15. 9. 13. 5. 3. 6.NO CONTEN . 7. 8. Executive Summary 2. Primary Data analysis Consumer Risk Analysis Competitor Analysis Questionnaires’ analysis 11. 4. Key findings Conclusion Recommendations References Annexure. 14. 12. 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.Questionnaires PAGE NO. T 1.TABLE OF CONTENTS SN.

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

MethodologyPrimary data collection. company websites and database provided by the company. journals.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.source of secondary data was books.primary data was collected through questionnaire design and conducting a survey. Secondary data collection . LimitationsShort duration of the project Customer response may not be 100% right 7|Page .

This helps the company identify potential segments and cater to its requirements. Selecting a sales and distribution approach is a key element of a successful business model. A good distribution ensures easy availability of a product in the market and helps the company penetrate further into it. Sales are important from every company’s point of view. Sales refer to volumes.e. 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. some of the traditional options no longer offer the same balance of services and costs and now cease to achieve the desired results. 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. 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. Recently. The project basically stresses on studying the method of identifying customer’s investment needs and suggesting them suitable financial products. prefers and accepts the company’s products and services over competitors’ offerings and recommend others to buy. 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 . or more broadly the overall process of selling and delivering products to customers. manufacturers representatives. distributors. 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. fruitful relationships by developing long-term bonds. The sales approach. Direct sales. limited set of options (i. Traditionally. the number of options has expanded greatly and the breadth of choices by competitors has proliferated in parallel.INTRODUCTION TO THE TOPIC The project is about selling and distribution strategies of a financial service providing company (Edelweiss Broking Ltd. This will help me get an insight into the various aspects of customer relationship. The project stresses on retail clients and strategy adopted by the company to handle them. a good sales figure reflects high acceptability for the company through its products in the market and vice-versa. The customer relationship is aimed at creating strong long lasting. sales figure is a reflection of the company’s acceptability in the market. Another most important thing is the Distribution of its products in an effective way so that they reach the customers. companies selected from a defined. 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. To make matters more uncertain. dealers) and most firms in an industry made similar choices. This involves calling the existing clients and client visits. thus the sales of various financial products of the company and analyze the various distribution strategies exploited by the firm.) and opportunities and challenges faced by it. .

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

The company can trace the loopholes and take corrective measures which will help it improve further. so knowing a good deal about it is of much importance.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. As the study is about the sales and distribution strategies that are the major factors that decide company’s success.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. The project has covered various marketing concepts and the models that fit into the business model.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. The scope is just not limited to the company. 9|Page .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 . 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.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 . it gives an idea of the industry.

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. The sample size is taken as 100 for sales and distribution questionnaire and 30 each for the two questionnaires related to CRM. Secondary Data Database given by the company Websites of the company and books Journals and magazines 10 | P a g e . 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.

Sampling Area: The area of the research was area of Kolkata and East & West Midnapore. in Kolkata and East & West Midnapore. Interpretation Interpretation refers to the task of drawing inference from the collected facts after an analytical study. This was followed by client visits and interaction with the distribution agents like broker and sub-broker. Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. The data were collected in te n w e ek s . For the collection of primary data the questionnaire designed for the purpose was given to the customers to know their response. The average response rate was 75.9%. Bar Graphs and pie chart have been used to illustrate the findings diagrammatically. 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. research survey is being done. India. Questionnaire Design The questions were designed in an easily understandable way that the respondents may not have any difficulty in answering them. due to the short time available for the interviews. The simple statistical tools will used to analyze the data collection. 11 | P a g e .METHODOLOGY Research methodology is a strategy that guides a research in providing answers to research questions and for this.

A group of about 300 brokers formed the stock exchange in Jul 1875. 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.the Securities and Exchange Board of India (SEBI). 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. was given statutory powers with the enactment of the SEBI Act. 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 . thus forcing them to find a place of their own. which was set up in 1988 as an administrative arrangement. 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. which later turned into the Dalal Street.The early stock market saw a boom till 1865. In the aftermath of the crash. with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies. Setting up of SEBI. 1992. banks.A new phase in the Indian stock markets began in the 1970s. on whose building steps share brokers used to gather to seek stock tips and share news. and then in Jul 1865. what was then used to be called the share mania ended with burst of the stock market bubble. disallowed them to gather there.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. which created a surge in retail investing.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.

or fixed income market) is a financial market where participants buy and sell debt securities.NSE was incorporated in Nov 1992 as a tax paying company. 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. electronic trading. Commodities m a rk e t – a f te r commodit ies m ar ke t . the industry has found its way towards sustainable growth. 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. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994.Incorporation of NSE. Debt market . The market can be divided into two that for exchange traded derivatives and that for over-the-counter derivatives. being run on no-profit basis. commenced operations in Oct 1996. credit. 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 . 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. the first of such stock exchanges in India. To work as a broker a certificate of registration from SEBI is mandatory after satisfying all the terms and conditions. the spot market or cash market is a commodities or securities market in which goods are sold for cash and delivered immediately. Derivatives market – after cash market. since stock exchanges earlier were trusts. 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. These raw commodities are traded on regulated commodities exchanges. It is advisable to conduct transactions through an intermediary. To speed the securities s e t t l e m e n t p r o c e s s . the derivatives markets are the financial markets for derivatives. FINANCIAL MARKETS The financial markets have been classified as Cash market (spot market) – largest traded. in which they are bought and sold in standardized contracts. NEED OF A BROKER A broker is a person or firm that facilitates trades between customers. greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. 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.The bond market (also known as the debt. Despite passing through a number of changes in the post liberalization period.

88 21. 10. Exchange-wise Stock Brokers Registered with SEBI (As on March 31.56 56. 19. in doing so.95 2. Stock Brokers come under the category of Market Players. 8. however. There are two major stock-exchanges NSE (composition of 50 stocks) and BSE (Composition of 30 stocks). 2008) SN NO.039 551 55 78 64 CORPORATE BROKERS AS A % OF TOTAL STOCK 48. 17. The membership in the stock exchange can be granted as individual membership and corporate membership. The broker does. 2.62 19.03 76.23 92.129 719 188 354 311 NO. 13.63 29. You need to deposit money with a banker to an issue if you are subscribing to public issues. 12.03 20.32 18.69 28. 18. One gets guidance if you are transacting through an intermediary. A broking firm acts as an intermediary between NSE and Client. 15. 9. 5. 3.39 35.OF CORPORA TE BROKERS 157 124 767 19 204 80 48 213 3 345 18 85 34 71 1. OF STOCK BROKERS 321 256 946 214 957 435 135 374 103 935 488 297 174 181 1. 16.91 48. A broker acts as a go between and.on stock exchanges.58 1.26 22. One needs to maintain an account with a depository if they intend to hold securities in demat form.44 81. Ahmadabad Bangalore BSE Bhubaneswar Calcutta Cochin Coimbatore Delhi Gauhati ISE Jaipur Ludhiana MPSE Madras NSE OTCEI Pune UPSE Vadodara 14 | P a g e . 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.54 39.08 8. 6.90 3. charge a commission. 7. 14.91 36. 11. does not assume any risk for the trade. STOCK EXCHANGE TOTAL NO. 4.

research services. Edelweiss strives to be a thinking organization. services or people.edelweiss.90 researchers. depository services. The Company is operating in India as an Integrated Investment Banking Company. providing broking services to Institutional and corporate clients and high net worth individuals Market Capitalization.over Rs 2. trying to be innovative and imaginative.com.www.500 crore (Rs 55 billion). model of employee ownership Culture.Entrepreneurial and result driven emphasizing confidentiality and integrity Operations.Client Focus. employs over 1600 employees Major clients. Venkat Ramaswami.AN INTRODUCTION TO EDELWEISS Edelweiss capital was started by two IIM graduates Mr. SNAPSHOT Approach. covers over 200 stocks across 19 sectors that accounts for about 70% of the total market capitalization Offices. Professional Integrity. distribution of financial products. 47 per cent of its revenue is from treasury and wholesale financing Research (POD) .000 crorer Website.Rs 5. Research Driven Aim.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. and proprietary trading. The policy of the company ensures transparency and greater opportunities for all its clients. Culture. Execution orientation.stock broking.The single minded focus on thought leadership and relentless pursuit of the ‘new’ and ‘different’ is it in products. www. Equity Base.operates from 56 offices in 21 Indian cities.ESL focuses on the wholesale equity segment. Rashesh Shah and Mr.in 15 | P a g e .edelcap.

Raskesh Shah Well respected Brand with strong position in relevant market segments STRENGHTS OF THE COMPANY Has an integrated business model. 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. such as fundamental and alternative research. which specializes in providing a wide range of financial products and services such as investment banking. which covers approximately 50 . institutional equities etc. with a focus on large and medium cap stocks. The fundamental 16 | P a g e . 141 crore in FY08 from Rs. 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 . Is well positioned to leverage the growing financial sector in India and become a significant market player. and wholesale finance. Mutual Funds. institutional equities.Mr. 2008 Ranked among the top ten players in Annual Bloomberg and Annual ThomsonReuters Present Chairman and CEO. FIs. 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. 7 crore in the previous year Edelweiss is amongst the largest institutional broking firm. catering to institutions and HNWIs and retails. Has a strong research platform with research products. In lending business It is empanelled with over 40 leading FIIs.60 companies within 6 industry categories. especially in areas like investment banking. Bloomberg: EDEL.IN Awarded as “Best Merchant Banker” by the Outlook Money NDTV Profit Awards. wealth management.HIGHLIGHTS EBL has a strong equity research team. BSE: 532922. Banks and Insurance companies Listing in various stock exchanges NSE: EDELWEISS.

research covers ~190 companies which represent ~69% of the market capitalization of all the companies listed on BSE as on August. But seeing the opportunity in retail sector it has forayed into it. 2008. 17 | P a g e . The Risk exposure is monitored and controlled through a variety of separate but complementary financial. The company is making a shift from ESL (Edelweiss Securities limited) to EBL (Edelweiss Broking Limited). 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. 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. It is offering an online platform to the clients which will increase transparency and make business hassle free for the clients. The company is repositioning itself from a niche marketer to a mass marketer and is aiming at Brand Repositioning. 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 company is providing the same research facility to its retail clients as it provided to its premium clients.

Private Client Brokerage: These services are targeted at high net worth and other individuals who actively invest and trade in the equity market. Wealth Management: Wealth management involves providing investment advisory. Under this. the company advises . Institutional Equities: Edelweiss’ Institutional equities business comprises institutional equity sales. and infrastructure. real estate. Asset Management: This involves both asset management as well as investment advisory services.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. sales-trading. and research. planning & asset deployment services to high networth individuals. equity markets. transaction execution relating to structured finance.

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

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

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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and Time. 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 . Customer Benefit Approach. Realistic. Though the company is new in Kolkata.they convey to customers the benefits they will get after getting associated with Edelweiss. Attainable.the approach is interactive i.Representatives approach the customers with the strength of Brand name that Edelweiss has. it is a well established brand in Mumbai.Sales goal should be SMART – Specific. like online platform and local dealer support. Interactive Approach.Sales organization always makes effort to increase sales.bound (3) METHODS OF APPROACH ADOPTED BY SALESPERSONS TO SELL EDELWEISS PRODUCTS Cashing in on Brand Name or the Company’s reputation. Measurable. it is a two way communication and client queries are always welcomed. thereby achieving the principle of profit maximization.e. thus contributing to the overall growth of the enterprise.

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

some degree of co-operation and co-ordination must be achieved among the participants in the vertical marketing system. space and state utilities which constitute the added value of distribution. Distributors (wholesalers. attitude of middlemen. selective or exclusive distribution. Through distribution channel the product passes through intermediaries before reaching the end consumer.Technical nature. Regarding the number of intermediaries is necessary. buyer behavior and company characteristics. brokers) are required because manufacturers are unable to assume by themselves. Distribution channels can be characterized by the number of intermediary levels that separate the supplier from the end-user. Services provided by the channels. 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 . geographical concentration of markets Product considerations . When the channel structure is indirect. 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. Distribution is one of the elements of marketing mix. Experienced and competent management. agents. sales potential. Availability of desired middlemen. desire for control of channels Middlemen considerations – Competition.Financial resources. size of order. The functions of distribution channels are to create time. Perishability Company considerations.(4) DISTRIBUTION STRATEGY Distribution channels are organized structures performing the tasks necessary to facilitate exchange transactions. buying habits of customers. The selection of a particular channel design is determined by factors related to market. number of potential customers. all the tasks implied by a free and competitive exchange process. retailers. three market coverage strategies are possible: intensive. at a reasonable cost.

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allocation. While CCI is low if we consider the retail segment. 27 | P a g e . 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. 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). 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. The company is distributing Pamphlets among the customers for its promotion and building an image in the minds of the customers. In the retail sector the strategy of Edelweiss is to go for Brand Repositioning and become a mass marketer. Per capita consumption of its products in the market relative to per capita consumption of the total financial products is low. So the strategy adopted by Edelweiss would be “Concentrating on demand generation activities”. accumulation. in which the company is a new comer.Role of distribution channels To adjust the discrepancy of assortment through the process of sorting.

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

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. 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. 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. First an appointment is fixed in the target company which is followed by a corporate presentation. These fixed cost agents are sourcing accounts directly from the market. Whereas Remissor is a type of Sub-Broker that uses the office space of the company it is working for. . They are given commission on the basis of account clients under Edelweiss. This is the major contributor to the company’s sales. Corporate Accounts. They have a fixed participation in the company.Inbound Team: . NSE and BSE listed companies are offered free accounts. The DSA’s looks for agents who can work under them.This is a way to get bulk accounts from the companies.The rediffmail users who registered in our site get free account(post paid) and one month free trade. Each agent has a specific target assigned to him. These agents get commission from the DSA’s and they have no connection with the company. Team leaders are reporting to ASM which in turn are reporting to the Regional Head. Free Accounts.CAS currently has an inbound team of 30 members divided into four team leaders. Each team leader can have 8 fixed cost agents reporting to him. They have a team of around 7-8 members who source the clients for them.

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i.e. It involves two phases.managing before the channel is actually executed.(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. During this phase the channel is designed and established. . This is called the ex-ante phase. the phase after the channel has comes into work. The next phase is ex-poste phase.

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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. telephone PULL FORCE 31 | P a g e . media Advertising Financial media Recommendations.(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. historical relationships Telephone.

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

the history and values of the respective institution. and retaining quality employees by developing jobs to satisfy individual needs. 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. training. PHYSICAL EVIDANCE The exterior design can be utilized to communicate e. This recognizes the importance of attracting. . PRICE. helping to convey particular messages to the customer and creating a special atmosphere affecting employees and customers likewise.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. motivating. PLACE. The use of color in combination with texture and finishes is identified to be a simple but very effective factor of differentiation.g. 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. 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. People form an important part of the differentiation in a service organization which can create added value for the customer. 3P’S OF MARKETING SERVICE Coming to the Marketing Mix generally there are 4P’s (PRODUCT.

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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.Two types of graphics can be used to establish identity. branding graphics enhance brand image and should be used complementary with all marketing activities (Grow. 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.

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This is followed by development of customers through customization and then steps are taken to retain the customers. 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. (11) HNWIs VS RETAIL CLIENTS .

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 .

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. of age and above.The Company is looking for educated customers who can understand the stock market and get the advice given by the company.the company is targeting only those people who are of 28yrs. The various categories areAge.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 is to ensure that they have a sound understanding of stock market Gender. TARGETING AND POSITIONING The company is segmenting the customers on the basis of demography.the company is targeting people who have an annual income of 3lakhs and above. 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. 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. So they are targeting the male clients Educational qualification.

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

increased geographic penetration. growth of SMEs and the increasing need for capital among Indian corporations are expected to continue to drive India’s financial services industry.The rise of the affluent class will aid the growth of the company The Indian financial sector carries immense growth opportunities.The business is prone to a high risk and minimizing risk is the need of the time People. Moreover.The business in which the company is in is very volatile and keeps changing with the market situation. enhance margins with stock exchanges and establish new offices. be it investment banking. 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. wealth management.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 .OPPORTUNITIES BEFORE THE COMPANY Strong economic growth. Huge untapped retail segment . insurance broking or any other domain The focus on diversity has already reduced the risk of client and product concentration. The Company is already well established in domains such as investment banking. and the expansion of capital markets.The competition is fierce among different market players and standing in this situation is a challenge Risk management. So to keep a good pace of growth is the challenge that lies ahead Competition. it plans to invest a large part of its IPO in prepaying of loans. This has added to the fall of sensex to lower points. 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. domains such as investment banking.the Company has a huge opportunity before it as it has a vast untapped retail segment. Increasing affluent class. With a continuous rise in number of HNIs.

According to this model customers can be classified into three classes on the basis of their investment preference.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. AGG RESSIVE CUSTOMERS: 10% 25% 6 5 % .

Bonds Stocks Short term 39 | P a g e .

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

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

400 Rs.500 Rs.550 Rs.300 Rs.325 Rs.500 Dema t accou nt charg es Free accou nt openi ng Rs. 562 Ver y goo d Rs.500 Exposure 3-4 times 5 times 5-6times 3-4times 6-7times 3-5 times 6- .750 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.300 Rs.725 Rs.425 Around Rs.325 Rs. 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.

7times INTERPRETATION From the above table following conclusions can be drawn:When it comes to brokerage. Though there are many firms that are offering very low brokerage to the clients. Edelweiss is very competitive. 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. the company has come up with its new prepaid plans in which the brokerage is as low as 10 paisa. 41 | P a g e .

COMPARITIVE MARKET SHARE OF EDELWEISS 12. . 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.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. Sharekhan is customer friendly and its terminal is considered very fast. The Brand image is not there in the minds of the people as the company is new in Kolkata.67 Edelweiss HDFC Sharekhan Indiabulls ICICI others Motilal Oswal ICICI is the market leader followed by Sharekhan.69 13. 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. the benefit that it enjoys is that the customers can have their account I its bank so fund transfer is very easy. So Edelweiss needs to focus on these two competitors.71 15.93 17. ICICI is the major competitor.19 6 27. Besides it has a very good brand image and people trust on that. This is the reason that despite charging a high brokerage it is very popular among masses.81 6.

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Many people like to inquire themselves directly from the company while 5% of the people look for internet as a medium. 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. This graph shows that broking business is a profitable one as it attracts the large volume of potential customers Q. Equity shares are the next best option . 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.SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS Q.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. The next option is mutual funds as they are comparatively risk free.

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This shows that the company needs to work a lot towards creating Brand Awareness in Kolkata.according to the respondents. While a 22% of graph shows that equity shares are considered as a good option by the investors due to their high return.3 12.6 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. Q. How did you come to know about Edelweiss? 40 35 30 2 5 2 0 1 5 1 0 39.4 2 0 . So it can be said that most of the people prefer risk-free return. Reference group is a good source of information about the company. Are you aware of all the products offered by Edelweiss? All figures are in percentag e term . Q.7 2 7 .

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.70 60 50 40 30 20 10 0 Yes No 64 36 Conclusion.

Q. while a large chunk of respondents had never heard of Edelweiss.44% of the respondents said that they are not using any Edelweiss product at present. so it gives a clear picture that there is a huge untapped segment among which the product needs to be pitched Q.not aware of all the products.56 In response to the question 78. 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% . Have you used any Edelweiss financial product? 90 80 70 60 50 40 30 20 10 0 Yes No 78.44 21.

45 | P a g e .56% of people using Edelweiss products nearly 50% prefer equity shares.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. Of the 21.

The company needs to give attention to the Brand image building. Best company according to the respondents 35 30 25 20 15 30 21.44 10 12 1 0 5 7 . Q. Factors affecting the choice of a company All figures are in percentag e term 30 28 23 2 0 25 20 18 . 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.Q. Still Edelweiss stands in the competition and is preferred mainly because of its research facility. Sharekhan is preferred for its customer friendly approach and trading terminal. This is mainly because of its good Brand Image and linked bank account.

Of the above factors all are present in Edelweiss except a good Brand Image in Kolkata. the reputation of the company. Edelweiss has good research so it has the capability of attracting customers. 46 | P a g e . Brokerage is the second most important factor.15 1 0 6.e.89 5 8 3. which it needs to build. The best example is ICICI.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.

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.Q. 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 . They trust on their experience with the company and act accordingly.

Conclusion Most of the customers in Kolkata are newly acquired as the company is new. The company needs to work on these customers and minimize their dissatisfaction. 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. Expe ctati ons of the cust omer s reduction in brokerage improved service quality more tips customer friendly norms 22% 34% .

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

. While 7% of the people have found alternate broking houses.`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.

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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 % .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. 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.

Characteristics of services marketing Difference between the ways of catering to HNWIs and Retail clients Marketing strategy of Edelweiss in Kolkata. people take more risks when they are young Preferred channel for buying a financial product. Moreover attributes of the selling strategy of the company have been revealed.Selling strategy adopted by Edelweiss is Relationship strategy.under this the findings are.Among the Edelweiss products equity is the most preferred investment option Factors affecting the choice of a company.Customers expect the company to improve its service.Role of distribution channels.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.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. Satisfaction level of the customers. 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.under this the CRM strategy of the company has been covered.The risk taking ability of people decrease with an increasing age. Expectations of the customers. Innovative approach in distribution channel. Various aspects of the Distribution strategy of the company.Brokers.FINDINGS Various aspects of selling strategy of Edelweiss.Majority of the Edelweiss customers are satisfied from the service provided by the company.The various aspects of it has been found out in this report Competitor analysis. Revealing the distribution channel strategy of Edelweiss based on customer behavior Various aspects of Customer Relationship management. Mix of product centered and client centered strategy . The method of approach adopted by salespersons to sell Edelweiss products has been covered and the selling skills required have been found out. 51 | P a g e . Various distribution channels of the company. Competitive advantage of Edelweiss over its rivals.Edelweiss’ competitive advantage is its research and development department and online trading platform that is user friendly.It was found that people are not aware of Edelweiss in Kolkata that much as about its competitor companies Popularity of the Edelweiss products.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.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.

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. 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.Customer base of Edelweiss. 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. When it comes to competitors ICICI is its biggest competitor and the company lags behind when it comes to Brand Image. 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. 52 | P a g e .

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

Through which one of the channels do you usually buy a financial product? a) Internet c) Direct from the company 4. Are you aware of all the products offered by Edelweiss? a) Yes b) No 54 | P a g e . 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 3. Annual Income a) > 3 lakh c) 5 lakh. What is your preferable tool of investment? a) Bank deposits c) Derivative instruments e) Gold and bullion 5.7 lakh b) 3 lakh. 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. We appreciate your business and want to make sure we meet your expectations.5lakh d) 7 lakh and above 2. please specify 6. As a Management Trainee currently working with Edelweiss Securities I want to thank you for giving us the opportunity to serve you.QUESTIONNAIRE Dear Customer. ………………………………………………………………………………………………… ………………………………… ……… …… 1. 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.

Which Edelweiss Products are you using now? a) Mutual Fund c) Debentures b) demat d) others. Have you used any Edelweiss Financial products? a) Yes b) no 8. 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.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.com 11. Evaluate the performance of following firms by ranking them on a scale in ascending order ICICI direct. please specify 9.

Are you satisfied with Edelweiss’ current services in sales and distribution? a) Yes b) no 16. 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. If currently you are not using Edelweiss products and edelweiss further enhances its products/services by adding your desirable features. 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 . Please rate the overall performance of Edelweiss on following scales a) Extremely satisfied c) Neutral e) Dissatisfied 13.12. will you buy it? a) Yes b) no 15. 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.

19. Personal Information (i) Name: ……………………………………………………………………………….. (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 .

Which sector’s performance is best? a) Equity c) Insurance b) mutual fund d) portfolio 6. What according to you is the weakness of Edelweiss? a) Low brand awareness c) Services b) brokerage d) others. You prefer to return back with Edelweiss in a) 6 months c) 2 years and more b) 1 year d) never 5.FOR DORMANT CLIENTS QUESTIONNAIRE 1. If you are associated with other firm. 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. Do you support the transition of Edelweiss from niche to mass market? a) Yes 58 | P a g e b) No . please specify 4. 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 (vi)Contact Details: Phone no: Email id: Signature: 59 | P a g e . 9.... 8...... please specify……………………………………………………. Any suggestion that you would like to put forward by which Edelweiss can improve on its services …………………………………………………………………………………………………… ……………………………… ………………………………………………………………..7. In which product did you faced the problem? a) Equity and Derivatives c) Portfolio b) Commodity d) E-broking e) Any others. 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..

Since how long you have been associated with Edelweiss? a) 6 months c) 2 years b) 1 year d) more than 2 years 2. 3. What are the products that you have opted from Edelweiss? a) Equity c) Insurance b) Dematerialization c) Portfolio management e) Any other. As a customer. (Please specify)…………………………………………………. In current global turmoil scenario. a) Excellent c) Good e) Poor b) Very good d) below average 4.EXISTING CLIENTS QUESTIONNAIRE 1. 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 . mention your level of satisfaction derived from Edelweiss.

7. 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? ………………………………………………………………………………………………. 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. please specify (vii) Contact Details: Phone no: Email id: Signature: 61 | P a g e .