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

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

5. 7. 6. 8.NO CONTEN . 13.TABLE OF CONTENTS SN. 3. Key findings Conclusion Recommendations References Annexure. 14. 4. 6 8 9 9 10 11 12 15 22 26 32 36 39 41 43 51 52 52 53 54 5|Page . Executive Summary 2. T 1.Questionnaires PAGE NO. 15. 9. 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. 12. Primary Data analysis Consumer Risk Analysis Competitor Analysis Questionnaires’ analysis 11.

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

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

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

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

9|Page . so knowing a good deal about it is of much importance. The scope is just not limited to the company. The company can trace the loopholes and take corrective measures which will help it improve further. The project has covered various marketing concepts and the models that fit into the 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 .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. it gives an idea of the industry. 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.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 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 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. 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.

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. 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. Secondary Data Database given by the company Websites of the company and books Journals and magazines 10 | P a g e . The sample size is taken as 100 for sales and distribution questionnaire and 30 each for the two questionnaires related to CRM. Primary Data The data will be collected through questionnaires from people in Kolkata.

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

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 . Setting up of SEBI. disallowed them to gather there. which created a surge in retail investing. and then in Jul 1865.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. 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. on whose building steps share brokers used to gather to seek stock tips and share news.A new phase in the Indian stock markets began in the 1970s. which was set up in 1988 as an administrative arrangement.The early stock market saw a boom till 1865. Bubble burst. banks.the Securities and Exchange Board of India (SEBI). In the aftermath of the crash. which led to the formation of a trust in 1887 known as the “Native Share and Stock Brokers Association” Beginning of a new phase. 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. A group of about 300 brokers formed the stock exchange in Jul 1875. 1992.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. thus forcing them to find a place of their own. which later turned into the Dalal Street. what was then used to be called the share mania ended with burst of the stock market bubble. with the introduction of Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by the multinational companies.

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

90 3.08 8.91 36.OF CORPORA TE BROKERS 157 124 767 19 204 80 48 213 3 345 18 85 34 71 1.58 1. STOCK EXCHANGE TOTAL NO. 5. 2. There are two major stock-exchanges NSE (composition of 50 stocks) and BSE (Composition of 30 stocks).039 551 55 78 64 CORPORATE BROKERS AS A % OF TOTAL STOCK 48. 8. A broking firm acts as an intermediary between NSE and Client.32 18. 16.23 92. 9.on stock exchanges. Stock Brokers come under the category of Market Players. 2008) SN NO.91 48. Ahmadabad Bangalore BSE Bhubaneswar Calcutta Cochin Coimbatore Delhi Gauhati ISE Jaipur Ludhiana MPSE Madras NSE OTCEI Pune UPSE Vadodara 14 | P a g e . 17. 13. The broker does.129 719 188 354 311 NO.62 19. charge a commission. A broker acts as a go between and. OF STOCK BROKERS 321 256 946 214 957 435 135 374 103 935 488 297 174 181 1.88 21.03 76. 3. 15.69 28.03 20. 14.26 22.44 81.39 35. 7. 19. 11. You need to deposit money with a banker to an issue if you are subscribing to public issues. does not assume any risk for the trade.54 39. in doing so. The membership in the stock exchange can be granted as individual membership and corporate membership. however. 18. 6. One gets guidance if you are transacting through an intermediary. 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.56 56. 12. 4. 10. Exchange-wise Stock Brokers Registered with SEBI (As on March 31. One needs to maintain an account with a depository if they intend to hold securities in demat form.95 2.63 29.

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

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

research covers ~190 companies which represent ~69% of the market capitalization of all the companies listed on BSE as on August. 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. It is offering an online platform to the clients which will increase transparency and make business hassle free for the clients. 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. But seeing the opportunity in retail sector it has forayed into it. 17 | P a g e . 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 company is making a shift from ESL (Edelweiss Securities limited) to EBL (Edelweiss Broking Limited). 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. 2008.

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

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

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

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

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

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

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

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

The DSA’s looks for agents who can work under them. 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. They have a team of around 7-8 members who source the clients for them.This is a way to get bulk accounts from the companies. Each agent has a specific target assigned to him. These fixed cost agents are sourcing accounts directly from the market. They are given commission on the basis of account clients under Edelweiss. NSE and BSE listed companies are offered free accounts. Free Accounts. Corporate Accounts. 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. 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.The rediffmail users who registered in our site get free account(post paid) and one month free trade. They have a fixed participation in the company. First an appointment is fixed in the target company which is followed by a corporate presentation. 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.CAS currently has an inbound team of 30 members divided into four team leaders. This is the major contributor to the company’s sales. Each team leader can have 8 fixed cost agents reporting to him.Inbound Team: . Whereas Remissor is a type of Sub-Broker that uses the office space of the company it is working for. .

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

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

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

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

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branding graphics enhance brand image and should be used complementary with all marketing activities (Grow.Two types of graphics can be used to establish identity. 2004). marketing graphics and branding graphics. While marketing graphics promote products and services. 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. 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 .

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This is followed by development of customers through customization and then steps are taken to retain the customers.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 . First the customer needs are identified and they are acquired.

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. 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.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 various categories areAge. (12) MARKETING STRATEGY OF EDELWEISS IN KOLKATA SEGMENTING. 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 . This is to ensure that they have a sound understanding of stock market Gender.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.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.

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

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

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. 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 % .

Bonds Stocks Short term 39 | P a g e .

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

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

300 Rs.500 Dema t accou nt charg es Free accou nt openi ng Rs.500 Rs.300 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.425 Around Rs.400 Rs.500 Exposure 3-4 times 5 times 5-6times 3-4times 6-7times 3-5 times 6- .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. 562 Ver y goo d Rs.725 Rs.550 Rs.325 Rs.750 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. Edelweiss is very competitive.7times INTERPRETATION From the above table following conclusions can be drawn:When it comes to brokerage. 41 | P a g e .

Besides it has a very good brand image and people trust on that.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. 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. This is the reason that despite charging a high brokerage it is very popular among masses. .81 6.19 6 27.93 17. ICICI is the major competitor. Edelweiss holds 6% of the market share and shows a bright potential of growth.69 13.67 Edelweiss HDFC Sharekhan Indiabulls ICICI others Motilal Oswal ICICI is the market leader followed by Sharekhan.71 15. the benefit that it enjoys is that the customers can have their account I its bank so fund transfer is very easy. 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. So Edelweiss needs to focus on these two competitors. 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. COMPARITIVE MARKET SHARE OF EDELWEISS 12.

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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. Equity shares are the next best option . The next option is mutual funds as they are comparatively risk free. Many people like to inquire themselves directly from the company while 5% of the people look for internet as a medium.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. 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.SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS Q.

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This shows that the company needs to work a lot towards creating Brand Awareness in Kolkata.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. While a 22% of graph shows that equity shares are considered as a good option by the investors due to their high return. How did you come to know about Edelweiss? 40 35 30 2 5 2 0 1 5 1 0 39. Q. Reference group is a good source of information about the company.according to the respondents. So it can be said that most of the people prefer risk-free return. Q.3 12. Are you aware of all the products offered by Edelweiss? All figures are in percentag e term .4 2 0 .7 2 7 .

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. In this category few of the respondents knew about the equity share trading but were 44 | P a g e .

56 In response to the question 78.44 21. 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.44% of the respondents said that they are not using any Edelweiss product at present. Have you used any Edelweiss financial product? 90 80 70 60 50 40 30 20 10 0 Yes No 78. while a large chunk of respondents had never heard of Edelweiss. 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% .

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

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. Still Edelweiss stands in the competition and is preferred mainly because of its research facility. Q. The company needs to give attention to the Brand image building. Sharekhan is preferred for its customer friendly approach and trading terminal. 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.44 10 12 1 0 5 7 .Q. This is mainly because of its good Brand Image and linked bank account.

The best example is ICICI. Edelweiss has good research so it has the capability of attracting customers. Brokerage is the second most important factor. Of the above factors all are present in Edelweiss except a good Brand Image in Kolkata.15 1 0 6.e. 46 | P a g e .89 5 8 3.5 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. the reputation of the company. which it needs to build.

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

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. The company needs to work on these customers and minimize their dissatisfaction. Expe ctati ons of the cust omer s reduction in brokerage improved service quality more tips customer friendly norms 22% 34% .

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

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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Besides Edelweiss needs to improve its quality of service. 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.

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

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

When it comes to competitors ICICI is its biggest competitor and the company lags behind when it comes to Brand Image.Customer base of Edelweiss. The CRM strategy of the company is different for Retail customers and HNWIs. 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. 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.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 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. 52 | P a g e .

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

………………………………………………………………………………………………… ………………………………… ……… …… 1. Are you aware of all the products offered by Edelweiss? a) Yes b) No 54 | P a g e . Annual Income a) > 3 lakh c) 5 lakh. 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. What is your preferable tool of investment? a) Bank deposits c) Derivative instruments e) Gold and bullion 5.7 lakh b) 3 lakh. We appreciate your business and want to make sure we meet your expectations. As a Management Trainee currently working with Edelweiss Securities I want to thank you for giving us the opportunity to serve you. Please help us serve you better by taking a couple of minutes to tell us about the service that you have received so far.QUESTIONNAIRE Dear Customer. 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. please specify 6.5lakh d) 7 lakh and above 2. please specify 3.

Which Edelweiss Products are you using now? a) Mutual Fund c) Debentures b) demat d) others. Evaluate the performance of following firms by ranking them on a scale in ascending order ICICI direct.7. 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 11. Have you used any Edelweiss Financial products? a) Yes b) no 8.com Share khan Motilal oswal HDFC securities Edelweiss India Infoline Religare India bulls 5paise. 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. please specify 9.

will you buy it? a) Yes b) no 15.12. Will you recommend Edelweiss products to your friends/family? a) Yes b) no b) Satisfied d) less satisfied 14. If currently you are not using Edelweiss products and edelweiss further enhances its products/services by adding your desirable features. Please rate the overall performance of Edelweiss on following scales a) Extremely satisfied c) Neutral e) Dissatisfied 13. 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. 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 . Are you satisfied with Edelweiss’ current services in sales and distribution? a) Yes b) no 16. What is your opinion about selling strategy of Edelweiss? a) Excellent c) Average b) Above average d) below average 17.

.19. Personal Information (i) Name: ………………………………………………………………………………. please specify Phone no: Email id: Signature: 57 | P a g e . (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.

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. What according to you is the weakness of Edelweiss? a) Low brand awareness c) Services b) brokerage d) others. 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. You prefer to return back with Edelweiss in a) 6 months c) 2 years and more b) 1 year d) never 5. 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.FOR DORMANT CLIENTS QUESTIONNAIRE 1.

. Any suggestion that you would like to put forward by which Edelweiss can improve on its services …………………………………………………………………………………………………… ……………………………… ………………………………………………………………..7.. 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... please specify (vi)Contact Details: Phone no: Email id: Signature: 59 | P a g e .. 8. In which product did you faced the problem? a) Equity and Derivatives c) Portfolio b) Commodity d) E-broking e) Any others. please specify…………………………………………………….... 9..

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

5. 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. please specify (vii) Contact Details: Phone no: Email id: Signature: 61 | P a g e . 7. Your recommendation to make Edelweiss better? ……………………………………………………………………………………………….. Personal Information (i)Name: (ii) Age: (iii) Gender: …………………………………………………………………………….

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