INTRODUCTION

INTRODUCTION OF THE TOPIC

The topic is to study the consumer preference towards investment in stock market. DEMAT A/C is a pool of various scripts and securities, where as online trading A/C is a tool of purchasing/ selling of shares or scripts online. These scripts are then transferred to DP i.e. Depository account after three days. This topic includes the practical experience of selling company product that is followed by studying the consumer preference or interest towards share market. This is a market, which is uncertain some time it gives huge profit and also vice versa; it depends up on the investment customer made. This is a better option to have better returns on the investments then investing in banks, mutual fund or bonds et. But risk is high in this case. This product offers customer two type of investment option INTRADAY and DELIVERY both has there own benefits and limitation but a better way to have more returns on investment. Intraday means investing in share market for a day i.e. purchasing and selling of the share in one day. Delivery is purchasing share and selling those shares next day. A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm's potential for gaining a competitive advantage.A business approach to marketing its products/ services expresses in broad terms, which forms the basis for developing a marketing plan. Marketing starts with market research, in which needs and attitudes and competitors' products are assessed, and continues through into advertising, promotion, distribution, and, where applicable, customer servicing and repair, packaging, and sales and distribution. The broad marketing thinking that will enable an organization to develop its products and marketing mixes in the right direction, consistent with overall corporate objectives. OBJECTIVE OF THE STUDY 1) Main objective

To find what marketing strategies is adopt by sharekhan for promotion of the product & creating the customer. 2) Specific Objective A) B) C) D) Comparison between sharekhan & its competitors; Marketing of the product; Why invest through sharekhan ltd.; Motivating customer for trading;

JOB DISCRIPTION The company placed me as a Summer Trainee. I have been handling the Following responsibilities: My job profile is to coordinate the team and also help them to sale

the product and also help them in field. My job profile is to generate the lead by cold calling. My job profile is to understand customers needs and advising

them to make a portfolio as per their investment. My job profile is to do sales promotion through e-mails, canopies,

making cold calling, distributing pamphlets and etc. modity. My job profile is to convince customer for investment in Com-

AREA ASSIGNED I covered areas Delhi (pitampura) TARGET MARKET

Different properties dealers. Charted accountants. Lawyers Travel agencies Transport business House wives Businessmen Corporate employees etc.

DAY TO DAY JOB EXPERIENCE Reporting time: 9.30 AM Fixing appointment with clients. Visit clients place. Demonstrate the product on Internet to the client.

Completing the formalities like filling the application form and documentation. Cold calling.

SHAREKHAN LTD.
BACKGROUND OF SHAREKHAN LTD.
5

Sharekhan is one of the leading retail brokerage of SSKI GROUP, which is running successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. The firms online trading and investment site- www.sharekhan.com was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one-lakh customers. The number of trading members currently stands at over 3 Lacs. While online trading currently accounts for just over 2 per cent of the daily trading in stocks in India, share khan alone accounts for 32 percent off the volume traded online. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. On April 17, 2002 Share khan launched Speed Trade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading Pstation of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Share khans ground network includes over 588 centers in 170 cities in India, of which 32 are fully owned branches. SSKI Group Companies SSKI Investor Services Ltd (Sharekhan)

 S.S. Kantilal Ishwarlal Securities SSKI Corporate Finance I dream Productions

SSKI- CORPORATE STRUCTURE

SSKI Securities Pvt. Ltd. Morakhia Family Associates 100%

SSKI INVESTOR SERVICES PVT. LTD.

Retail broking arm of the group: - Shareholding

pattern: 55.5%Morakhia family (promoters) 18.5% HSBC Private Equity India Fund Ltd. 18.5% First Carlyle Ventures, Mauritius 7.5% Intel Pacific Inc.
7

SSKI Corporate Finance Pvt. Ltd. Investment Banking arm of the group

Shareholding pattern: 50.5% SSKI Securities Pvt. Ltd. 49.5% Morakhia family

SSKI AS AN INSTITUTIONAL BROKER

Serving institutional Investors- Domestic/ International

In the Indian securities business since 1922 Our institutional Research team is rated as one of the best in the industry. Rated 1st by Asia Money.

588 branded share shops across 170 cities in India

From sharekhan.com to Indias largest chain of branded retail share Shops

Sharekhan Business
1 Brokering business 2 White feathering house production Vision:To be the best retail brokering Brand in the retail business of stock market.

Mission:To educate and empower the individual investor to make better investment decisions through quality advice and superior service.

PRODUCTS OFFERED BY SHAREKHAN LTD.

Share khan Ltd. Offers following products: -

1) CLASSIC ACCOUNT: This is a User Friendly Product, which allows the client to trade through websites www. Sharekhan.com and is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks or who do not trade too frequently.

Features:

Integration of On-line trading, Saving Bank and Demat Account. Instant cash transfer facility against purchase & sale of shares. Competitive transaction charges. Instant order and trade confirmation by E-mail. Streaming Quotes.(Cash & Derivatives) Personalized market watch. Single screen interface for Cash and derivatives and more. Provision to enter price trigger and view the same online in market

watch.

10

2) SPEEDTRADE ACCOUNT: SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during days session to capitalize on intra-day price movement.

Features:

Instant order Execution and Confirmation. Single screen trading terminal.(NSE) Real-time streaming quotes, tic-by-tic charts.

Market summary (Cost traded scrip, highest calue etc.)

Hot keys similar to brokers ter-

minal.

Alerts and reminders.

3) ONLINE IPOs: Share khan is tie up with nine banks for online fund transferring i.e. HDFC, ICICI, IDBI, CITI, Union Bank of India, oriental Bank of Commerce, INDUSIND, Yes Bank and UTI bank for online money transfer. You can apply all the forthcoming IPO online hasselfree, paperless and time saving work.

11

4) Mutual Fund Online: You can apply to Mutual Funds of SBI, Birla, Sundaram, HDFC, central bank, reliance etc. With share khan hasselfree, paperless and time saving works. Share khan help you to choose the right Mutual Funs for your investment by providing you information on Top Gainers/Losers, Schemes Comparison, Ranking of Various MFs, NAV History of MFs and their performance.

5) Trade in Commodities.

6) Mutual Fund Advisory. 7) Portfolio Management Services.

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SERVICES OFFER BY SHAREKHAN LTD.

Research Based Investment Advice

Training and Seminars EQUITIES DERIVATIES COMMODITIES Investment and Training Services

Technology Based Investment Tools

Integrated Demat Facility

13

REASONS TO CHOOSE SHAREKHAN LTD.

Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market. In the Asia money brokers poll held recently, SSKI won the Indias best broking house for 2004award. Ever since it launched Share khan as its retail broking division in February 2000, it has been providing institutional-level research and broking services to individual investors. Technology With online trading account you can buy and sell shares in an instant from any PC with an Internet connection. You will get access to our powerful online trading tools that will help you take complete control over your investment in shares. Accessibility Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for investors. These services are accessible through our centers across the country (over 588 locations in 170cities)over Internet (through the website www.sharekhan.com) as well as over the Voice Tool. Knowledge In a business where the right information at the right time can translate into direct profits, you get access to a wide range of information on our content-rich portal, share khan. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions.

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Convenience You can call our Dial-N-Trade number to get investment advice and execute your transactions.ithasdedicated call- center to provide this service via a toll free number 1800-22-7500 & 1800-227050 from anywhere in India Customer Services Our customer service team will assist you for any help that you need relating to transactions, billing, demat and other queries. Our customer service can be contracted via a toll free number, e-mail or live chat on www.sharekhan.com. Investment Advice Share khan has dedicated research teams of more than 30 people for fundamental and technical researchs. Our analysts constantly track the pulse of the market and provide timely investment advice toe you in the form of daily research emails, online chat, printed reports and SMS on your mobile phone.

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STOCK EXCHANGE MUMBAI

Sharekhan is the retail broking arm of SSKI, an organization with more than eight decades of trust & credibility in the stock market. market Finance. Leading domestic player in Indian institutional business Over US$ 5 billion of private equity deals In 1984 ventured into Institutional Broking & Corporate Amongst pioneers of investment research in the Indian

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LITERATURE REVIEW GENERAL INTRODUCTION

DP (Depository Participants) As an investor you open a securities account with a DP. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI . All interactions including account opening, dematerialization, transactions, pledge etc are done through the DP. Reasons to choose DP You can select your DP to open a demat account just like you select a bank for opening a savings account. Some of the important factors for selection of a DP can be: Convenience: proximity to the office/residence, business hours. Comfort: reputation of the DP, past association, range of services etc. Find out if the DP is in a position to give the specific service you may need. Cost: the service charges levied by DP and the service standard.

Dematerialization:-

17

The dematerialization system is an alternative to the physical existence of securities. In this system securities are converted into the electronic form and deposited in a depository count in the investors name. In order to dematerialize certificates, an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization Request Form (DRF), which is available with the DP, and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over to the DP for demat, they are defaced by marking "Surrendered for Dematerialization" on the face of the certificates. ac-

Procedure for selling dematerialized securities

The procedure for selling dematerialized securities in stock exchanges is similar to the procedure for selling physical securities. Instead of delivering physical securities to the broker, you instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction booklet received from the DP at the time of opening the account. The procedure for selling securities is given here below:

Investor sells securities in any of the stock exchanges linked to

NSDL through a broker.

Investor gives instruction to DP to debit his account and credit the

broker's (clearing member pool) account.

Before the pay-in day, investor's broker gives instruction to his DP

for delivery to clearing corporation. 18

The broker receives payment from the stock exchange (clearing

corporation).

The investor receives payment from the broker for the sale in the

same manner payment is received for a sale in the physical mode.

PROCESS ON ACCOUNT OPENING

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES CONTACT TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE

DISAGREE

NO

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

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LOGIN OF THE FORM SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

DOCUMENTS:
1) Photo ID Proof 2) Residence Proof (Permanent) Passport Pan Card Driving Licence Voter's ID Passport (valid) Voter's ID Driving Licence (valid) Bank Statement (latest) Telephone Bill (latest) Electricity Bill (lates) Ration Card Flat Maintanance Bill (latest) Insurance Policy (latest) Leave-Licence/Purchase Agreement

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3) Residence Proof (Correspondence)

Passport (valid) Voter's ID Driving Licence (valid) Bank Statement (latest) Telephone Bill (latest) Electricity Bill (lates) Ration Card Flat Maintanance Bill (latest) Insurance Policy (latest) Leave-Licence/Purchase Agreement 4) Two Photographs (Passport size)

ACCOUNT OPPENING CHARGES:-

1 For classic account Cheque of Rs. 750/= In Favour of M/s S.S.Kantilal Ishwarlal Securities Pvt. Ltd. or Rs. 500/= or 350/= in case of corporate offer. Or 1 For Speedtrade Account Cheque of Rs. 1000/= In Favour of M/s S.S.Kantilal Ishwarlal Securities Pvt. Ltd.

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ACOUNT OPENING CHARGES COMPARISION

Charge

Classic Account

Speedtrade Account

Account Opening

Rs. 750/=

Rs. 1000/=

* Refundable in case the brokrage is more than Rs. 500/= p.m. *Taxes as per govt.

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Depository Charges

Account Opening Charges Annual Maintenance Charges

Rs. NIL Rs. NIL first year Rs. 300/= p.a. from second year onward

Brokerage: 0.03 % Plus Taxes for Each leg of Intra-day trade 0.30 % Plus Taxes for trades resulting in delivery Minimum Brokerage Intra Day Per Share: 5 Paisa each leg (buy or sell) for Intra-day Trades (For eg on a Rs 20 Scrip, brokerage @0.1% = 2 p, but there is a min chargeable amt of 5 p).

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SHARKHAN SERVICES
Dial-N-Trade Along with enabling access for your trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives you our Dial-n-trade services. With this service, all you have to do is dial our dedicated phone lines 1-800-22-7500. IPO ON-Line Can apply all the forthcoming IPO online hasselfree. Research tips Company provide 4-6 e-mails to there customers per day Online trade in shares Sharekhan customers can online trade through there computers, through Internet during the market timings Online fund transfer We have tie up with seven banks for online fund transferring i.e. ICICI , HDFC, IDBI, CITI, UBI, OBC, INDUSIND and UTI bank for online money transfer.

Research Based Investment Advice Investment and Trading Services Training and Seminars Technology Based Investment Tools Integrated Demat Facility COUSTOMRE CAN TRADE IN

Equities, Derivative, Commodities

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CLOSURE OF ACCOUNT
1. CLOSURE ON CLIENTS REQUEST A DP can close a depository account on receipt of an application in the prescribed format. The application should be made by the account holder or by all the joint-holders. An account can be closed only when there is no balance in the account. In case there is any balance in the account sought to be closed, the following steps are necessary. (a) Re-materialization of all securities standing to the credit of the account at the time of making the application for closure; or (b) Transferring the balance to the credit of another account opened by the same account holder(s) either with the same participant or with a different participant. Before closing the account the DP should ensure that all pending transactions have been settled. The request for closure should be processed only after ensuring that there is unbalance lying in the account.

2. CONSOLIDATION OF ACCOUNT Some clients could have opened multiple accounts to dematerialize their shares held in multiple combination and sequence of names. However, they may not need so many accounts after they have dematerialized their shares and may want to bring all their share holdings into one or fewer accounts. This can be achieved by using normal off market transfer instruction.

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3.CLOSURE BY DP The DP may also initiate closure of a client's account if the client has defaulted in performing its obligations laid out in the client-participant agreement. The participant should give sufficient notice to the client before initiating closure of his account. The notice should clearly state the reasons for closure of account. The process of closing account in such a case is the same that of client-initiated closure.

CLOSURE /SHIFTING OF CLEARING ACCOUNT A clearing member may transfer its clearing account from one DP to another DP. For this, simultaneously applications have to be made for closure of account to the earlier DP and for opening of new clearing member account to the new DP. On receipt of the application, the new DP forwards the application to the depository for approval and allotment of a new CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens a New clearing account and intimates the depository about the new client-ID. On receipt of intimation from the new participant, the depository advises the old DP to close the account. The old DP then closes the account and intimates the clearing member. All payout of securities, subsequent to closure of old clearing account, take place in the new account.

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REARSEARCH METHODOLOGY
REAEARCH METHODOLOGY

27

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind him. Why a research study has been undertaken, how a research problem has been defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. RESEARCH DESIGN: A research design is the arrangement of conditions for collection and analysis of in a manner and aims to combine relevance to the research purpose with economy in procedure. In fact the research design is the conceptual structure within which research I conducted. Research design is needed because it facilitates the smooth sailing of the various research operations thereby making research as efficient as possible yielding maximum information with minimal expenditure of effort, time and money. I have adopted descriptive and conclusive research design. Descriptive research is those studies, which are concerned with describing the characteristics of a particular individual or a group. Since the aim is to obtain the accurate information about the customer in terms of his interest towards investment in stock sector. I have used the techniques of questioning customer in order to know their consumer behavior, their interests, their needs and etc. It is very important for the sales executive to study the mind of the customer so that the personal visit would not be a waste of time, money and efforts. DATA SOURCES:

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The researcher can gather primary data, secondary data or both. Secondary data are data that were collected for another purpose and already exist somewhere. Primary data are data specially gathered for a specific purpose or for a specific research project. When the needed data do not exist or are outdated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research projects involve some primary data collection.

PRIMARY DATA: I have collected primary data through personal references; LMS i.e. Leads management system of the company; Customer references;

SECONDARY DATA: The main source of information for the project was Weakly magazine; Telephone directory Used leads of the company; Leads of the other company; i.e. telephone list for tele calling;

CONTACT METHOD:

The marketing researchers have four choices to contact the respondents:

29

Mail,
Telephone, Personal and Online. I chose the above techniques to reach to the customer in a most convenient method.

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LIMITATIONS Lack of awareness of Sharekhan and stock market:

Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPOs. Some people are comfortable with traditional system:

As people are doing trading from there respective brokers, they are quite comfortable to trade via physical form of paper, they want to trade off line, i.e. through telephone or etc. Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno savvy. Also Internet penetration is poor in India. Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are quite annoyed with the phone call. Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5-digit phone number to wrong phone number, some people have registered to know about their personal quarries. They are the unsatisfied clients of the company. Misleading concepts:

Some people think that as all the shares are in electronic form and they dont have any physical proof. Sometimes this leads to a great misconception of the entire process.

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MARKETING STRATEGIES OF SHAREKHAN

Marketing strategy?

32

A strategy that focuses on developing a unique long-run competitive position in the market by assessing consumer needs and the firm's potential for gaining a competitive advantage.

A business approach to marketing its products/ services expresses

in broad terms, which forms the basis for developing a marketing plan.

Marketing starts with market research, in which needs and atti-

tudes and competitors' products are assessed, and continues through into advertising, promotion, distribution, and, where applicable, customer servicing and repair, packaging, and sales and distribution.

The broad marketing thinking that will enable an organization to

develop its products and marketing mixes in the right direction, consistent with overall corporate objectives.

MARKETING STRATEGIES OF THE COMPANY v Tele Calling: The company uses the tele calling/ phone calling to reach the customer, which are interested. This is the most important technique to save time 33

and giving demo of the companies product through making call in order to know the customer interest towards the product. This is the strategy with which one can motivate customer to go for the product and etc. v LMS:

It is leads management system which means leads are generated by the customer who want to purchase the product of the company. Company provide facility to the customer on online to fill the registration form through which the companies executives can provide more information to the customer. v Yellow Pages: Yellow pages are used to gather data for making calls so that customer who did not fine time and are unaware of the product can know about the product. Customers are given freedom to ask question related to the products this is the technique used to increase the awareness of the company. v Canopys:

This is the most important technique used by sharekhan securities to market its product in different areas of the city, company put their canopies and customer who are willing to know about the product come forward and provide best of their knowledge. Besides this companies executives ask customer to fill the questionnair that tells the company about the levels of brand awareness. It also increases the product awareness because it is generally put at the crowdies places like near main markets, cinema s, hotels, ATM or etc where people come in good numbers.

Direct Marketing

34

Sharekhan executives reaches to the does of the customer by fixing appointments with the interested customer, they describe the details of the product. Executive give demonstration of the products so that customer can understand better. v Advertising: Advertising is the most important tool of increasing awareness of the product and this is the most widely used technique by the company to tell about the new features and new lunch by giving briefing of the product. Sharekhan use banners, distribution of pamphlets, and advertisement in newspapers, magazines. v References:

Sharekhan strategy is to satisfy the customer in terms of their need by providing them timely services and knowledge about the trade in equities, mutual funs by giving tips for investment advises through e-mails or toll free calls for this purpose customers are provided relationship manager who give investment advise and also make transaction on their behalf on demand. B satisfying customer executives ask their references that not only increase the awareness but also increase the good will of the company.

Competitiveness: The company is innovative and uses the latest technol-

ogy to improve the product to fulfill the demands of the customers. Sharekhan make it easy for the customer to make online transaction of shares. The company is competitive in terms of the product price and facilities it offers to the customer.

35

Internet:

Company provides detailed information about the products on Internet so that customer can know about the product easily and completely.

UNIQUE OBJECTIVE OF THE COMPANY

search modities trading. Dealing in mutual funds. New initiatives - Portfolio Management Services & Com200000+ retail customers being serviced through central60 branches, semi branches servicing affluent/aggressive 250 independent investment managers/franchisees serviStrong advisory role through Fundamental & technical re-

ized call centre / web solution traders through highly skilled financial advisors cing 50000 highly valued clients

36

37

COMPETITOR ANALYSIS
5PAISE.COM
Company Background Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-broking was started under the brand name of 5 paisa.com. Apart from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e GOI securities, Company Fixed Deposits, Insurance. Limited ground network, present in 20 Cities Charges for Demat: Account opening charge :- 750 Rs. Intra day cut off time 3 pm DELIVERY:- 0.87% INTRADAY:- 0.12% Transaction charges Rs.23 or 0.04% of transaction Annual Maintenance Charges:- Rs.300

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KOTAK STREET
Company Background Kotakstreet is the retail arm of kotak securities. kotakstreet, caters exclusively to your stock broking and investment requirements. Kotak Securities needs no introduction as one of the largest stock broking houses in the country and a leading distributor of primary market offerings Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs, Pricing For Kotak

SOME FEATURES OF KOTAKSTREET:Account Opening charge :- 750 INTRADAY:- 0.10 DELIVERY:- 0.25

39

INDIABULLS
Company Background

India Bulls is a retail financial services company present in 70 locations Covering 62 cities. It offers a full range of financial services and Products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors

POA for Clients DMAT All shares held by client trading with IB are moved to IB Pool Account and the same is shown as a reflection in client DP account. Charges are levied to move shares from IB pool Account to client DP account SOME CHARGES IN INDIABULL:Account opening charge:- 750 Annual Maintenance Charges Rs.:- NIL INTRADAY:- 0.15 DELIVERY:- 0.64 Intraday cut off time 3:10pm Annual Maintenance Charges :- NIL

40

ICICI Direct

Company Background ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited Demat Charges: account opening charges:- 975 Rs. INTRADAY:- 0.27 DELIVERY:- 0.55 Transaction Charges (selling) Rs.15 or 0.04% of transaction Intra day cut off time 3 pm Annual Maintenance Charges Rs.350

41

HDFC SECURITIES
Company Background The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the largest team of Tele-brokers DEMAT ACCOUNT WITH HDFC:

It is conversion of physical shares into electronic form. Dematerialization charges Rs. 3 per share certificate Folio charges are Rs.150 per annum. Buying and selling transaction through brokers Charges are

0.05% of transaction value

Intra day cut off time 3 pm

Off market transactions charges - 0.04% of transaction value CHARGES FOR DEMAT ACCOUNT:Account opening charge :- 750 Yearly charge: 450 per year Annual Maintenance Charges:- Rs.500

42

SWOT ANALYSIS

A SWOT analysis focuses on the internal and external environments, examining strengths and weaknesses in the internal environment and opportunities and threats in the external environment.

STRENGTHS
Services As a product Sharekhan is a extremely innovative product with very less cost. Services like online trading facility, institutional and domestic broking, customized research reports with almost 80% efficiency etc give Sharekhan an edge over its competitors. Sharekhan provides other support services that make retail investors more confident and assured with their trading. SMS alerts (allowing traders and investors to make the most of the available opportunities), Softer, intangible features like imagery, equity driving preference. Through efficient trading processes Investors can place their orders directly on the Internet, do all the information seeking and basically own the investing process.

43

Distribution Network Sharekhan with almost 1200 branches spread across 500 cities beefed up by comprehensive online research, advice and transaction services. In near future expect to make 200000+ retail customers being serviced through centralized call centre / web solution, 60 branches/semi branches servicing affluent/aggressive traders through highly skilled financial advisors, 250 independent investment managers/franchisees servicing 50000 highly valued clients, strong advisory role through Fundamental & technical research and new initiatives are being made in Portfolio Management Services & Commodities trading.

Marketing Sharekhan is a product of SSKI, a veteran equities solutions company with over decades of experience in the Indian stock markets. Sharekhan does not claim expertise in too many things. Share khans expertise lies in stocks and that's what it talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. Products Companys product line is quite flexible in the sense that there is a product for every kind of investors. Also all the products cover all the loopholes of all the products offered by the other competitors like low cost, user-friendly online trading services etc.

WEAKNESS

44

Customer Satisfaction As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking house catering to heavy investors or small segment of the market can afford to and does provide relationship managers for their customers, who can understand the trading needs of individual customers, and advise accordingly. However, a broking house like Sharekhan, which caters to the mass segment, is in no position to provide relationship managers for individual customers. Branding Though the company has a efficient products but large part of investment interested population does not know the company. The most basic expectation for a trader or investor when one begins trading is that one must get timely delivery of shares and proceeds from sale of shares. Also ones cash balances with the broker must be safe and secure. Though this confidence in the broker comes with time and experience, good and transparent practices also play a major role in imbibing confidence in traders. Competition from banks Most of the banks due to good branding have the faith of the customers of their banking database. So they enjoy the liberty of huge database and customers find it more reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank and ICICI Bank have the advantage of linking the trading accounts of their customers to saving accounts. This makes trading easier, and at the same time a trader withdraws exactly as much money from his account as is needed to complete the trade. Similarly sales proceeds are credited directly to saving account.

OPPORTUNITIES

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The external environment analysis may reveal certain new opportunities for profit and growth.

Ever-increasing market After the NSE brought the screen based trading system stock markets are now more secured which has attracted lot of retail investors and the demand is increasing day by day. This has resulted in improved liquidity and heavy volumes on transactions. Sharekhan is one of the early entrants here. As to how much it will roar and how swift it can swoop on the market, the future alone can answer such queries. Sharekhan has been a mega player and is known for being a mover of stocks. It is also known for putting big deals through and enjoys good networking with the FIIs. It has been dynamic enough to move with the times and capture the opportunities that the market throws up from time to time. Improving Technology In country like India technology is always improving which gives the company a chance to keep on improving their product with time whereas for the small players like local brokers it will be difficult to keep the same pace as the changing technology. Also with SEBI lying down some strict guidelines small brokers are finding it harder to retain the customers with no research department and small capital. The traditional business model is highly dependent on a large network of sub-brokers, and many established players may not have systems (technology, customer service, etc.) capable of directly servicing so many retail customers. Unfulfilled needs of the customers

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With so many competitors offering their products in the market but no one is able to completely satisfy the customers. Some have the problem of lack of information or some were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this unsatisfied set of customers and to make hold in the market. The Internet serves to break all barriers to information, as it offers an extremely hassle-free investing platform. And, Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by Sharekhan itself was born out of the consumer's need for a more transparent, easy to understand and convenient option of investing in stocks.

Education Level The education level in the country is improving year after year as far as technology goes. With that the understanding of the stock market is also increasing and a lot of retail investors are steeping in the markets which is being shown by increasing volumes, transactions and indices.

THREATS
New Competitors A lot of new competitors are trying to enter the market in this bullish run to taste the flavor of this cherry. This is creating a lot of competition for large players like Sharekhan and it is creating little confusion in the minds of the customers about the services provided by the broker. Also many banking firms are entering into the market with huge investment. Competitors like icici, kotak, hdfc, 5-paisa etc. are posing a lot of threats to the company.

Technology based business

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Online trading is totally based on the technology, which is quite complex. Typically, the technology solution has to start from the Internet front-end (or the screen that you see when you begin trading). Then it needs to get into the 'middle tier' of risk management systems that assess data from banks and depository participants (DP), calculate client risk at that point in time, and give the 'Go/No go' advice to the trade. So technology is a kind of threat because unless until it is working properly it is good but Internet is not that safe. Though a lot of cyber laws are being made but not yet executed.

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OBSERVATIONS AND ANALYSIS

DATA ANALYSIS 6.1 Market share of share-khan securities 49

COMPANY ICICI Direct Sharekhan Indiabulls 5 Paisa HDFC

MARKET SHARE 28.00% 24.00% 22.00% 20.00% 6.00%

6% 20% 28% ICICI Direct Sharekhan Indiabulls 5 Paisa HDFC 22% 24%

INTERPRETATION:The above data describes the market share of the sharekhan competitors in which share has the second highest market share among all its competitors heaving customer base of more then or approximate 4.5 lack.

6.2 COMPETITORS BROKERAGE COMPARISION

COMPETITORS BROKERAGE INTRA DAY ICICI direct 0.27%

DILIVERY 0.55%

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HDFC securities INDIA BULLS SHARE KHAN 5 PAISA

0.10% 0.15% 0.1% 0.12%

0.50% 0.64% 0.5% 0.87%

INTERPRETATION:The above is the detail of the companies brokerages in which sharekhan has competitive brokerage over others in which there reduction of the brokerage depending upon the deal between client and the customer.

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6.3 GROWTH RATE OF SHAREKHAN

GROWTH RATE IN % 2.5 3.1 3.6 4 4.5 GRAPH NO. 6.B YEAR 2007 2008 2009 2010 2011 SHAREKHAN Growth

GORWTH RATE OF COMPANY

2011 2010 R A E Y 2009 2008 2007
Series1

CUSTOMERS IN LAKHS

INTERPRETATION:The above graph shows the growth rate of the company from 2006 to 2010, which shows the increase in the growth trend.

6.4 GROWTH RATE OF COMPETITORS:COMPANY Year 2009-10

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HDFC 5 Paisa Indiabulls Sharekhan ICICI GRAPH NO. 6.C

NIL 2% 1% 4% 5%

Company Growth
5% 5% 4% 4% 3% % in the 3% 2009-2010 2% 2% 1% 1% 0%

In di ab ul ls

NIL

5 Paisa

Sharekhan Competitors

ICICI

INTERPRETATION:The above graph show that ICICI direct is no. 1 in the growth rate of the competitors and sharekhan on the 2nd position. HDFC securities are lowest in the growth rate.

6.5 COMPARISON ACCORDING TO NO. OF CUSTOMER COMPANY MARKET SHARE No of customer in lack ICICI direct 53 7

SHARE KHAN INDIA BULLS 5PAISA HDFC securities GRAPH NO. 6.D :-

4.5 2.5 2.4 1.1

MAIN COMPETITORS IN MARKET

8 7 6 5 4 3 2 1 0
I IC IC

NO IN LAKHS

7 4.5 2.5 2.4 1.5 Series1

KH AN

5P AI SA
54

BU LL

SH AR

INTERPRETATION:The above graph shows the market share of the customer we are at position no two heaving customer base of around 4.5 lakh customer, ICICI heaving the maximum and HDFC has the minimum customer.

IN

NAME OF COMAPANY

IA

FC

6.6 Client acquisition ( During the Project of Two month(1ST June 2011 to 31st july 2011):Clint Acquisition Total Data Calls made Responses Appointment fixed Appointment confirmed Appointments converted GRAPH NO. 6.E:(Approx.) 3000 2700 1200 130 45 26

Client Aquision
Total no ofcustomer reached 4000 3000 2700 3000 1200 2000 130 1000 0 Responc es Total Data

45 Appointm ent

26

(Approx.)

Customer responce
INTERPRETATION:The above graph shows the numbers of customer (appr.)That has reached through the marketing tools and technique. Approximately out of 3000 clients finally 26 were converted. 6.7 Trading through website or software:COMPANY NAME Sharekhan FACILITY both

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ICICI direct HDFC securities 5paisa Indiabull

website website both website

INTERPRETATION:According to the table of 6.7 only sharekhan and 5paise provide the facility of both (trading through website and software) And the other three company provide the facility of trading through website. 6.8 Demat account charges or annual maintenance charge:COMPANY NAME Sharekhan ICICI direct HDFC securities 5paisa Indiabull INTERPRETATION:The above table shows that the indiabull not take any maintenance charges for account and sharekhan charge Rs 415, icici charges Rs 300, hdfc charges Rs 500, 5paisa charge Rs 250. 6.9 Tie up with banks:COMPANY NAME Sharekhan Bank names HDFC bank, ICICI bank, UTI bank, CITI bank, OBC bank, IDBI bank, YES bank, CANARA bank, INDUSIND bank. 56 charges Free 1st year, 415 p.a. from 2nd year onwards Free 1st year, 300 p.a. from 2nd year onwards 500 p.a. 250 p.a. No account maintenance charges

ICICI direct HDFC securities 5paisa Indiabull

ICICI BANK ONLY. HDFC BANK ONLY. HDFC bank, ICICI bank, UTI bank, CITI bank, GLOBAL TRUST bank. HDFC bank, ICICI bank, CITI bank, ABNAMRO bank, STANCHART bank.

INTERPRETATION:Above table show that the sharekhan company tie up with more than its competitors, and HDFC securities & ICICI direct give preference only own banks.

6.10 Comparison in software charges:COMPANY NAME Sharekhan ICICI direct HDFC securities 5paisa Indiabull Charges in Rs. NIL N.A N.A 1000 N.A

INTERPRETATION:The above table show that only two company provide the software for trading and sharekhan not charge for software but company 5paisa charge 1000 RS. N.A- not applicable

6.11. Types of account :-

COMPANY NAME

Account name

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Sharekhan ICICI direct HDFC securities 5paisa Indiabull

2(classic a/c, speed trade a/c) Web based Web based 2( trader terminal, investor terminal ) Web based

INTERPRETATION:The above table show that every company provide some account for trading therefore sharekhan also provide two a/c classic a/c and speed trade a/c and ICICI direct, HDFC securities, Indiabull provide the web based a/c and 5paisa provide the trade terminal a/c, investor terminal for trading.

6666 Buy today sell tomorrow(BTST):Buy Today Sell Tomorrow (BTST ) is a facility that allows you to sell shares even one day after the buy order date, without you having to wait for the receipt of shares into your demat account.

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Example:Assume that you buy shares of ABC Limited at 11.00 a.m. today. Suppose, at 2.00 p.m. today, the price of this scrip has risen by Rs 10.But you want to sell these shares tomorrow because you feel that the scrip price will rise further. But the shares would not have come into your demat account tomorrow. What can you do? BTST is the solution to your query. If you use a Margin Trade, you would gain only to the extent of the price rise that happens today I.e. Rs 10. However, if you wish to take advantage of the price rise over a longer time period, then you would use BTST.

So, you would purchase the share today at 11.00 a.m. and sell it say tomorrow using BTST at 2.00 p.m. COMPANY NAME Sharekhan ICICI direct HDFC securities 5paisa Indiabull decision yes Yes but only on 127 scripts of NSE no yes yes

INTERPRETATION:The above table show that only HDFC securities not provide the facility of BTST and other all of company provide the facility of the BTST ( Buy today sell tomorrow ).

6.13. Comparison according to service of SMS alert:COMPANY NAME SMS Alert

59

Sharekhan ICICI direct HDFC securities 5paisa Indiabull

100 per month yes no no no

INTERPRETATION:The above table show that sharekhan use SMS alert for the customer satisfaction. Every month sent 100 SMS to their customer and ICICI also sent the some SMS to their customer but other company ( HDFC securities, 5paisa, Indiabull ) not sent the SMS to their customer.

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61

FINDINGS
FINDINGS According to the study of the project report and company experience of two month the analysis the following findings: According to graph one icici has the maximum market share and

sharekhan is at position no 2. sharekhan has a competitive product feature and services that makes it possible to reach at this position. According to graph two SHAREKHAN has brokerage less then

ICICI and HDFC but Same as INDIABULLS but more then other competitors. Brokerage is the main concern for the customer thus company provide some negotiation flexibility in brokerage charges, in terms of brokerage we are better then the ICICI and HDFC company charge less form the customer for the same purpose and providing better service. According to graph 3 which shows the competitors growth in

terms of the customer acquisition from 2006 to 2010, Sharekhan has a growth rate of 4% and ICICI has a maximum Growth rate of 5% According to Graph no 4, which shows the total no of customer,

sharekhan has the second largest customer base with 4.5 lakh among its competitors. Due to high competition the companies provide same product with

different features and services. With this regard sharekhan is at no one for services, brokerage and follow-up.

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RECOMMENDATIONS
After heaving an experience of two moths in sales of Demat account I would like to suggest the following things v Company has an advantage of reach tips for which

sharekhan s known for, the customer who are new they need relationship managers who will tell them about investment so it should be provided to al the customer on demand this will lead to customer satisfaction and will hip to have more references from the satisfied customer. v The company also have the advantage of brokerage

charges it need some revision so that the customer who are locking for the less brokerage can open there account in are company taking into consideration the different proposal, it can be reduced for a HNI client. v The company has shown the growth trend and it has

reached at no 2 it can move to no one because it has an advantage of its services. As sharekhan is already Tie up with 7 banks for online fund transfer that reduces the paper work for customer and ease in trading. v The company can increase the customer base if the ac-

count opening charges it reduced from 750 to 400, which will give, boost the competition.

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64

CHAPTER 8 CONCLUSION
After studying the project I would like to conclude that Company should focus on customer satisfaction at every levels of

the account opening procedure. HNI. Relationship manager should be given on the customer demand. Company should use the tool of advertising for marketing the Brokerage can be reduced with the attractive proposals for the

brand and the product.. The account opening time should be reduce to maximum 5 days

because customer losses the opportunity of investments. The company shows the positive trend in growth but it can be in-

creased more if it focuses on building the brand equity.

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66

BIBLIOGRAPHY
BOOKS REFERED: MARKETING MANAGEMENT - PHILIP KOTLER RESEARCH METHEDOLGY - C.R KOTHARI OFFICIAL BROUCHERE OF SHAREKHAN SECURITIES PVT LTD. 1. www.nsdl.com 2. www.sharekhan.com 3. www.hdfc.com 4. www.nseindia.com 5. www.icicidirect.com 6. www.kotaksecurities.com 7. www.indiabulls.com 8. www.indiainfoline.com

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