Reliance Securities Marketing Strategy Focuses on Demat Accounts

Marketing strategy of Reliance Securities
ARYA SCHOOL OF MANAGEMENT STUDIES, JAIPUR

CENTRE CODE: 03039
A
PROJECT REPORT
ON
“Marketing Strategy of Reliance Securities”
Submitted for the Partial Fulfillment of the Requirement for

the Degree of
Master of Business Administration (M.B.A), under SMU
Under the guidance of

Prof. Sunil Kumar
Mr. Manas Ranjan Pattanaik (Faculty, ASMS, RKL)
Submitted By
Kalandi Mohanty
REGD. NO. - 521072030
MBA (2009-11)
[DEPT OF MBA] Page 1

DECLARATION
I hereby declare that this summer project report titled “Marketing
Strategy of Reliance Securities” is the result of my own effort in the

training, which I did as a part of the curriculum for the fulfillment of Master
of Business Administration (MBA) degree. It has not been duplicated from
any other earlier works and all information provided in this report is
genuine.
This report submitted for the partial fulfillment of MBA program. It has not
been submitted to any other university or for any other degree.
Place : - Kalandi Mohanty
Date : - Regd no:- 521072030

ACKNOWLEDGEMENT
“INSPIRATION LEADS TO DEDICATION,
DEDICATION LEADS TO ACOMPLISHMENT,
ACOMPLISHMENT LEADES TO ACKNOWLEDGMENT.”
First and foremost I thank god, my friend for blessing showered on me. All
my efforts will remain meaningful authorities, who helped me more than I
expected, while I working on my project.
I have project privilege of undergoing major concurrent project for one

month at Reliance Securities Jaipur. I would like to express my sincere gratitude to
Sir. Sunil Kumar (Senior Manager) for providing me an opportunity to under take
major concurrent project and guidance through out the project to complete
successfully.
I extend my sincere thanks and acknowledgement to all the

Officer/Executive of Reliance Securities, Jaipur, who extended their wholehearted
guidelines and their co-operation, in spit of their schedule in completing my
project work successfully.
I would like extend my sincere feeling of gratitude to Sri RK Hota (GM), Dr.
Nilachal Sahoo (Sr.General Manager) and Prof. Sunil Kumar. Finally I thank to all
the faculty member of our institute who have given me their valuable suggestions
from time to time
Name: Kalandi Mohanty
Branch: MBA (marketing)

Session: (2010-2012)
Regd.No:521072030
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. Kalandi Mohanty has done his project entitled
“Marketing Strategy of Reliance Securities”.
He has done his project with much sincerity and wish him good luck in
future.
Mr. Sunil Kumar

(Senior Manager)

UNIVERSITY STUDY CENTRE CERTIFICATE
This is to certify that the project report entitled “Marketing

Strategy of Reliance Securities” submitted in partial fulfillment
of the requirements for the degree of Master of Business
Administration of Sikkim – Manipal University of Health,
Medical & Technological Sciences. Kalandi Mohanty has
worked under my supervision and guidance and that no
part of this project report has been submitted for any
award of any other Degree, Diploma, Fellowships or any
other similar titles and that work has been published in
any journal or magazine.
Reg. No: 521072030 Certified
Place: Jaipur Mr. Manas Ranjan Pattanaik

Date : MBA

EXAMINER’S CERTIFICATION
The Project report of Kalandi Mohanty “Marketing Strategy of

Reliance Securities” is approved and acceptable in quality and
form.
Internal Examiner External Examiner
Name : Name :
Qualification: Qualification :

DESIGNATION: - DESIGNATION: -
CONTENTS
CHAPTER NO. TOPIC PAGE NO.
CHAPTER I INDUSTRY PROFILE 9 - 37
 DEMAT ACCOUNT
 MUTUAL FUND
 LIFE INSURANCE
 GENERAL INSURANCE
CHAPTER II ABOUT THE COMPANY 38 - 42
 COMPANY PROFILE
 VISION AND MISSION
 ORGANISATIONAL HIERARCHY
CHAPTER III PRODUCT OFFERING 43-64
 TRADING PORTAL
 FINANCIAL PRODUCT
 VALUE ADDED SERVICES
 CREDIT CARD
 GOLD COIN RETAILING
CHAPTER IV MARKETING STRATEGY 65 - 83

 WHAT IS GOOD MARKETING

 ASPECTS OF GOOD MARKETING
 STP CONCEPT
 STRATEGY
 4 P’S OF MARKETING
 DISTRIBUTION CHANNEL
 TELEMARKETING
 CANOPY
 ADVERTISEMENT
CHAPTER VII Suggestions & recommendations 84 - 86
 FINDINGS
 SUGGESTION
CHAPTER VIII CONCLUSION 86-87
CHAPTER IX QUESTIONNAIRE 87 - 89
CHAPTER X APPENDIX BIBLIOGRAPHY 90

INDUSTRY PROFILE
DEMAT ACCOUNT
Online trading refers to the buying and selling of shares /bonds/stocks/contracts
with the use of internet. In this the shares are not issued in the physical form
rather they are transferred in the dematerialized form to the Demat account
directly.
In India, a Demat account, the abbreviation for dematerialised account, is a type
of banking account which dematerializes paper-based physical stock shares. The
dematerialised account is used to avoid holding physical shares: the shares are
bought and sold through a stock broker.
If we want to save our Securities, then we have to open a savings account with a
Bank. Such like that if we want to bye and sell shares, then we need to open a
Demat account with a depositary participant registered with SEBI, NSE, and BSE.
Demat denotes the dematerialization of shares. Demat account along with a
trading account from a DP facilitate us to bye and sell shares online and to store
the shares online without any bonded paper stuffs. Demat account facilitates
faster transaction when compared with the older traditional trading method, (i.e.)
the share buyer have to inform to the broker regarding his purchase decision and
then the broker forward it to the stock exchange, then they allot the shares to the
respective buyer and send him a registered share certificate via postal
department. The investor has to wait for 5 days for his transaction. But now due
to the entry of Demat account and online share trading platforms the investors
can buy and sell any volume of shares online by one mouse click!
This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it
became mandatory that any person holding a demat account should possess a
Permanent Account Number (PAN), and the deadline for submission of PAN
details to the depository lapsed on January 2007.Under Section 68 B of the
Companies Act, inserted by the Companies (Amendment) Act, 2000, it is
mandated that every Initial Public Offer (IPO) made by a listed company in the

excess of Rs. 10 Crores has to be issued in dematerialized form by complying with
the requisite provisions of the Depositories Act, 1996.
Until the late eighties, the common man kept away from capital market and thus
the quantum of funds mobilized through the market was meager. A major
problem, however, continued to plague the market. The Indian markets were
drowned in shares in the form of paper and hence it was problematic to handle
them. Fake and stolen shares, fake signatures and signature mismatch, duplication
and mutilation of shares, transfer problems, etc. The investors were scared and
were under compensated for the risk borne by them. The century old system of
trading and settlement requires handling of huge volumes of paper work. This has
made the investors, both retail and institutional, wary of entering the capital
market. However, lack of modernization become a hindrance to growth and
resulted in creation of cumbersome procedures and paper work.
However, the real growth and change occurred from mid-eighties in the wake of
liberalization initiatives of the Government. The reforms in the financial sector
were envisaged in the banking sector, capital market, securities market regulation,
mutual funds, foreign investments and Government control. These institutions
and stock exchanges experienced that the certificates are the main cause of

investors` disputes and arbitration cases. Since the paper work was not matching
the rapid growth so there was a need for a better system to ensure removal of
these impediments.
Government of India decided to set up a fully automated and high technology
based model exchange that could offer screen-based trading and depositories as
the ultimate answer to all such reforms and eliminate various bottlenecks in the
capital market, particularly, the clearing and settlement system in stock
exchanges. A depository in very simple terms is a pool of pre-verified shares held
in electronic mode which offers settlement of transactions in an efficient and
effective.
Advantages of Demat a/c are as follows:
 SEBI has made it compulsory for trades in almost all scrip’s to be
settled in Demat mode. Although, trades up to 500 shares can be
settled in physical form, physical settlement is virtually not taking
place for the apprehension of bad

 delivery on account of mismatch of signatures, forgery of signatures,
fake certificates, etc.

 No stamp duty is levied on transfer of securities held in Demat form.
 Instantaneous transfer of securities enhances liquidity.

 It eliminates delays, thefts, interceptions and subsequent misuse of
certificates.
 Change of name, address, registration of power of attorney, deletion
of deceased's name, etc. - can be effected across companies by one
single instruction to the DP.

 Each share is a market lot for the purpose of transactions - so no odd
lot problem.
 Any number of securities can be transferred/delivered with one
delivery order. Therefore, paperwork and signing of multiple transfer
forms is done away with. It facilitates taking advances against
securities on low margin/low interest.

 Demat system not only provides smooth and hassle-free way of
dealing in shares, it also does away with all the associated tensions.
 Bad deliveries are minimized.
 Postal delays and loss of shares in transit is prevented.
 Immediate transfer of shares and securities.
 Less paper work (reduction in huge volumes).
 Faster settlement cycles and payouts.
 The demat system totally avoids the associated heartburns arising
from theft of shares, mutilation, forgery, counterfeit shares and loss of
shares during a natural calamity.

 Nomination facility.
 Holding investments in equity and debt instruments in a single
account.
MUTUAL FUND

History of Indian Mutual Fund
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual funds
in India can be broadly divided into four distinct phases.
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets
under management.
Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab

National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual
fund in June 1989 while GIC had set up its mutual fund in December 1990. At the
end of 1993, the mutual fund industry had assets under management of
Rs.47,004 Crores
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into
being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several
mergers and acquisitions. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with
Rs.44,541 crores of assets under management was way ahead of other mutual
funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return
and certain other schemes. The Specified Undertaking of Unit Trust of India,
functioning under an administrator and under the rules framed by Government of
India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,

conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered
its current phase of consolidation and growth.
The graph indicates the growth of assets over the years .
Concept of Mutual Fund
A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The Securities thus collected is then invested in capital

market instruments such as shares, debentures and other securities. The income
earned through these investments and the capital appreciations realized are
shared by its unit holders in proportion to the number of units owned by them.
Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. The flow chart below describes broadly the
working of a mutual fund:
Mutual Fund Operation Flow Chart
Organization of a Mutual Fund

There are many entities involved and the diagram below illustrates the
organisational set up of a mutual fund. They are as follows
Sponsors
The sponsor is the company which sets up the mutual fund. It means anybody
corporate acting alone or in combination with another body corporate established
a mutual fund after initiating and completing the formalities.
Trustees
The management of the mutual fund is subject to the control of the board of
trustees of the fund. They guide the operations of the fund and carry the crucial
responsibility to see that AMC always act in the best interest of the investors.
Asset Management Company (AMC)
The mutual fund is operated by a separately established asset management
company (AMC).It manages the funds of the various schemes. It is entrusted with
the specific task of mobilizing funds under the scheme.
Custodian

A custodian is a person carrying on the activities of the safekeeping of the
securities or participating in any clearing system on behalf of the clients to effect
deliveries of the securities.
(Mutual Fund Operation Flow Chart)
TYPES OF MUTUAL FUND SCHEMES

Wide varieties of Mutual Fund Schemes exist to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table below
gives an overview into the existing types of schemes in the Industry.
By Structure ;
 Open-Ended Schemes
 Close-Ended Schemes
 Interval Schemes
By Investment Objective;
 Growth Schemes/Equity Schemes
 Income Schemes/Debt Schemes
 Balanced Schemes
 Securities Market Schemes
Investment by Structure
Open-ended Schemes:
An open-end scheme accepts funds from investors by offering its units or shares
on a continuing basis i.e. an investor can invest in an open-ended schemes
whenever he wants and he can purchase units at the market price at that
moment. Open-end scheme permits investors to withdraw funds on a continuing
basis under a re-purchase arrangement. Open-end scheme has no maturity
period. The open-end schemes are ordinarily not list on the secondary market.
Close-ended Schemes:

The subscription to a closed-end scheme is kept open only for a limited period
(usually one month to three months). After that he cannot invest in that fund. A
closed-end scheme does not allow investors to withdraw funds as and when they
like. A closed-end scheme has a fixed maturity period (usually five to fifteen
years). The closed-end schemes are listed on the secondary market.
Interval Schemes:
Interval funds combine the features of open-ended and close-ended schemes.
They are open for sale or redemption during pre-determined intervals at NAV
related prices.
Investment by Objective
Equity Schemes
An EQUITY FUND invests mainly in stocks and shares of companies. EQUITY FUNDS
typically aim to generate long term growth in the unit capital. There are a variety

of ways in which an equity portfolio can be created for investors. There are thus
the following choices in equity funds:
 Simple equity funds

 Industry Specific funds
 Index funds
 ELSS
They are ideal for investors having a long term perspective, Speculative outlook-
the equity cult, who would like to make gains in the shortest period of time and
investors in their prime earning years-specifically the young who have a decent
earning and can take some kind of risk.
Debt Schemes
 A DEBT FUND invests mainly in debt instruments like bonds and
debentures, with high and consistent dividend payout. These funds give
decent returns but the capital appreciation is not much. There are a variety
of ways in which a debt portfolio can be created for investors. Retired
people and others with a need for stability and regular income. Investors

who need some income to supplement their earnings. There are thus the
following choices in debt funds:

 Liquid and Securities market funds
 Gilt Funds
 Monthly Income Plan
 Floating rate funds
Balanced Schemes
A BALANCED FUND invests in both equity and debt instruments. It aims to
generate growth and income by periodically distributing its assets over both types
of securities. These funds are ideal for investors looking for a combination of
income and moderate growth.
Securities Market Schemes
This type of fund's main objective is to hold investment instruments that are liquid
and secure. This type of fund is usually held on a short-term basis, and the NAV is
often fixed at $10. Examples: Treasury bills, banker's acceptances, and short term
notes.
One thing an investor should be aware of is that these funds are NOT guaranteed
like a GIC, and hold NO fixed return, but are low risk and do pay interest.

ADVANAGES OF MUTUAL FUND
 Reduction of risk
 Professional Management
 Tax benefits
 Low transaction costs
 Well regulated
 Liquidity
 Diversification
 Return potential
 Transparency
 Flexibility
 Choice of schemes
DISADVANTAGES OF MUTUAL FUND
 No control over costs

 Dilution
 No tailor made portfolio
 Managing a portfolio of funds

LIFE INSUARNCE
HISTORY
Insurance has been known to exist in some form or other since 3000 BC. The
Chinese traders, travelling treacherous river would distribute their goods among
several vessels, so that the loss from any one vessel being lost, would be partial
and shared, and not total. The Babylonia traders would agree to pay additional
sums to lenders, as the price for writing off the loans, in case of shipment being
stolen. The inhabitants of Rhodes adopted the principle of ‘general average’,
whereby, if goods are shipped together, the owner would bear the losses in
proportion, if loss occurs, due to jettisoning during distress. The Greeks had
started benevolent societies in the late 7 th century AD, to take care of the funeral
and families of members who died. The friendly societies of England were
similarly constituted. The Great Fire of London in 1666, in which more than 13000
houses were lost, gave a boost to insurance and the first fire insurance company,

called the Fire Office, was started in 1680.The origin of insurance business as in
vogue at present is traced to the Lloyd’s Coffee House in London. Traders, who
used to gather in the Lloyd’s coffee house in London, agreed to share the losses to
their goods while being carried by ship. The losses used to occur because of
pirates who rubbed on the high seas or because of bad weather spoiling the
goods or sinking the ship. In India, insurance began in 1818 with life insurance
being transacted by an English company, the Oriental Life Insurance Co. Ltd. In
Calcutta. The first Indian insurance company was the Bombay Mutual Assurance
Society Ltd.
Formed in 1870 in Mumbai this was followed by the Bharat Insurance Co. in
1896in Delhi, The Empire of India in 1897 in Mumbai, the United India in Chennai,
the National Indian and the Hindustan Cooperative in Kolkata.First attempts at
regulation of the industry were made with the introduction of the Indian Life
Assurance Companies Act in 1912. A number of amendments to this Act were
made until the Insurance Act was drawn up in 1938. Noteworthy features in the
Act were the power given to the Government to collect statistical information
about the insured and the high level of protection the Act gave to the public
through regulation and control. When the Act was changed in 1950, this meant far

reaching changes in the industry. The extra requirements included a statutory
requirement of a certain level of equity capital, a ceiling on share holdings in such
companies to prevent dominant control (to protect the public from any
adversarial policies from one single party), stricter control on investments and,
generally, much tighter control. In 1956, the market contained 154 Indian and 16
foreign life insurance companies. Business was heavily concentrated in urban
areas and targeted the higher echelons of society. “Unethical practices adopted by
some of the players against the interests of the consumers” then led the Indian
government to nationalize the industry. In September 1956, nationalization was
completed, merging all these companies into the so-called Life Insurance
Corporation (LIC). It was felt that “nationalization has lent the industry fairness,
solidity, growth and reach.”
Some of the important milestones in the life insurance business in
India are:
 1912 - The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.

 1928 - The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses.
 1938 - Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
 1956 - 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from
the Government of India.
Some facts about insurance industry in India
The domestic insurance industry in India is estimated to be around US$ 60.5
billion by 2010, of which US$ 35 billion will come from rural and semi-urban areas.
While the life insurance market is expected to grow to US$ 35 billion, non-life
insurance market will touch an estimated US$ 25 billion.
With the largest number of life insurance policies in force in the world, India’s
insurance sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per
cent in 1999-2000, far ahead of China where insurance accounts for just 1.7 per

cent of the GDP and even the US where insurance penetration stands at 4 per cent
of the GDP. One area that continues to cause concern is the number of customer
grievances in insurance, especially in a few specific classes. This calls for more
transparency in designing the contract wording and on insisting that the applicant
is sufficiently informed about the coverage and more particularly the exclusions.
In addition, the legislation itself requires to be transformed to meet the needs of
the emerging markets. The Law Commission of India which has gone extensively
into the various insurance laws has submitted its report. Further, the expert
committee headed by Mr. K.P. Narasimhan has also submitted its proposals
requiring amendments to the laws. The demand for health insurance covers has
seen a healthy increase, and today the sector is the fastest growing segment in
the non-life insurance industry in India, which grew at over 40% last year. It is also
emerging as an increasingly significant line of business for life insurance
companies. During the last five years, the premium from health insurance
products in non-life companies has grown from 675 crore in 2001-02 to Rs 3200
crore in 2006-07, almost 5 times its level 5 years back. While this rate of growth
appears to be very healthy, it is on a low base, and health insurance penetration in
the country continues to be low. Only about 25 million persons are presently
covered for health through commercial insurance, in a country of over 1.1 billion

people. Overall, the Indian health sector is still characterized by the near absence
of any significant risk protection against major health-related expenditure, as
insurance and other organized forms of payment for health services, including
ESIS, CGHS and other such schemes barely constitute a tenth of all health
expenditure in the country. Almost four-fifths of the health spending in the
country is private, out-of-pocket expenditure. In the absence of such protection,
the financial impact of hospitalization can be very pronounced, and indeed is
reported as one of the leading causes of impoverishment in the country. Indian
insurance companies recorded a 19.9 per cent growth in premium in dollar terms
(adjusted for inflation) in 2006-07, compared to the world market growth rate of
2.9 per cent. This rate of growth of the industry looks particularly impressive
when seen against the fact that the combined penetration of both life and non-life
is less than 2 per cent of the GDP compared to world average of 7.52 per cent.
Clearly, the scope for growth is enormous.
Led by the Life Insurance Corporation (LIC), the life insurance industry registered a
growth of 110 per cent in fiscal 2006-07, taking the total business to US$ 19.2
billion from the previous year’s US$ 9.1 billion. The life insurance market has
grown rapidly over the past six years, with new business premiums growing at

over 40 per cent per year owing to the entry of a host of new players with
significant growth aspirations and capital commitments.
The total life insurance market premiums is likely to more than double from the
current US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by McKinsey.
The study titled ‘India Insurance 2012: Fortune Favors the Bold,’ expects a rise in
premiums between 5.1 and 6.2 per cent of the GDP in 2012 from the current 4.1
per cent driven by greater insurance intensity per capita as the average per capita
income increases and rise in penetration in urban and rural areas. The life
insurance premium contributions per capita have jumped from a little over US$ 7
in 1999-2000 (pre-liberalization) to US$ 38.5 in 2006-07.
Life insurance penetration in India - which was less than 1 per cent till 1990-91 -
increased to 2.53 per cent in 2005, and to 3 per cent in 2006-07. While the
impetus for growth has come from both public and private insurers, the number
of players in this segment have also increased to 16 (15 in private sector), with Life
Insurance Corporation (LIC) being the dominant player (market share of over 74
per cent).
Major players in the Life Insurance industry

 Life Insurance Corporation of India (LIC)

 HDFC Standard Life Insurance Company Ltd.
 Max New York Life Insurance Co. Ltd.
 Reliance Life Insurance Company Ltd.
 ICICI Prudential Life Insurance Co. Ltd.
 Om Kotak Mahindra life Insurance Co. Ltd.
 Birla Sun Life Insurance Co. Ltd.
 Tata AIG Life Insurance Company Ltd.
 SBI Life Insurance Company Limited
 ING Vysya Life Insurance Company Pvt. Ltd.
 Allianz Bajaj Life Insurance Company Ltd.
 MetLife India Insurance Company Pvt. Ltd.
 AMP SANMAR Assurance Company Ltd.
 Dabur CGU Life Insurance Company Pvt. Ltd.
GENERAL INSURANCE
Introduction
The General Insurance industry in India dates back to the Industrial Revolution
and the subsequent increase in trade across the oceans in the 17th century. As for
Life Insurance, the British brought General Insurance to India, and a similar path
was followed in the development of this industry. A number of private companies
were in existence for years and years until, in 1971, the Indian Government
decided that the public interest would be served by nationalizing the industry,
merging all the 107 companies into four companies, depending on the sort of

business transacted (Marine, Fire, Miscellaneous). These were the National
Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India
Assurance Company Ltd., and the United India Insurance Company Ltd. located in
Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four
companies as its subsidiaries.
Some of the important milestones in the general insurance business in
India are:
 1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
 1957 - General Insurance Council, a wing of the Insurance Association of
India, frames a code of conduct for ensuring fair conduct and sound
business practices.
 1968 - The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set up.
 1972 - The General Insurance Business (Nationalization) Act, 1972
nationalized the general insurance business in India with effect from 1st

January 1973. 107 insurers amalgamated and grouped into four companies
viz. the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United India
Insurance Company Ltd. GIC incorporated as a company.
The general insurance industry grew 11.6 per cent between April and November
in 2007-08 with robust performances by private players. The 13 non-life insurers
collected US$ 4.7 billion in premium against US$ 4.2 billion in the same period last
year. While the public sector could increase its premiums by just 3.57 per cent, 9
private sector players clocked premium growth of 26.49 per cent. Private sector
players’ market share has grown to about 40 per cent in FY08 as compared to the
public sector’s 60 per cent.

Major players in the General Insurance industry
 General Insurance Corporation of India (GIC)
 Royal Sundaram Alliance Insurance Co. Ltd.
 Bajaj Allianz General Insurance Co. Ltd.
 Reliance General Insurance Co. Ltd.
 ICICI Lombard General Insurance Co. Ltd.
 Cholamandalam General Insurance Co. Ltd.
 TATA AIG General Insurance Co. Ltd.
 IFFCO Tokio General Insurance Co. Ltd.
 Export Credit Guarantee Corporation Ltd.
 HDFC-Chubb General Insurance Co. Ltd.

COMPANY PROFILE


Introduction
Reliance Securities is a group company of Reliance Capital; one of India's leading
and fastest growing private sector financial services companies, ranking among
the top 3 private sector financial services and banking companies, in terms of net
worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.
Reliance Securities, the financial products distribution company of Anil Dhirubhai
Ambani Group, today unveiled the new brand identity for Travelmate Services and
announced major business plans for its Securities Changing Services and Full-
Fledged Securities Transfer business. Travelmate Services, a part of Kuoni Group,
was acquired by Reliance in November 2006 and is now a wholly owned
subsidiary of Reliance Capital. The company has been in the Securities Transfer
Services (MTS) and Full-Fledged Securities Changing (FFMC) business in the
country since 1993. Reliance Securities, which started operations in April 2007, is
adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh
customers. And the traded volumes have crossed about Rs 1,200 crore.
Reliance Securities is a comprehensive electronic transaction platform offering a
wide range of asset classes. Its endeavor is to change the way India transacts in

financial markets and avails financial services. Reliance Securities is a single
window, enabling you to access, amongst others in Equities, Equity &
Commodities Derivatives, Mutual Funds, IPOs, Life Insurance, General Insurance,
Offshore Investments, Securities Transfer, Securities Changing and Credit Cards.
Reliance Securities, the financial products retail arm of Reliance Capital, a
company owned by the Anil Dhirubhai Ambani Group (ADAG), has decided to
expand distribution network in rural areas. In a massive “inclusive growth”
initiative, first of its kind in Indian corporate history, which would provide
employment to 50,000 rural youth, the company has decided to extend its rural
reach this fiscal by setting up 10,000 franchised outlets in 5,165 of the 5,645
tehsils (talukas) of the country, according to a Hindu Business Line. Reliance
Securities has already identified and appointed franchisee partners in 1,001
tehsils with the help of Rural Relations, a rural consumer-focused organization.
Reliance ADAG expects to garner 10 to 20% of its total business through this rural
thrust.
Reliance Securities plans to provide insurance plans for cattle, crop, bullock cart
and tractor, term insurances (Rs 25 to Rs 50 pay out for a year’s coverage), and
Systematic Investment Plans (monthly installment of Rs 50 to100). While the

company has already established its presence in Maharashtra, Andhra Pradesh,
Karnataka, Madhya Pradesh, Gujarat and West Bengal, it is now expanding into
Uttaranchal, Chhattisgarh, Rajasthan, Tamil Nadu and Orissa.
VISION
To build a global enterprise for all our stakeholders and a great future for our
country by giving millions of young Indians the power to shape their destiny: The
means to realize their full potential.
MISSION
To create and nurture a world-class, high performance environment aimed at
delighting our customers by providing endless financial products in all part of the
country.

Reliance Securities is a distribution house. Along with the products of reliance
capital it also sells the financial products of other companies like ICICI, HDFC, TATA
AIG, Birla sunlife, etc. Its main product is Demat account. Along with the Demat
account it also sells life insurance, general insurance, mutual fund, gold coins etc.

ORGA

NIZATIONAL HIERARCHY
National Level : National Head
Zonal Level : Zonal Head
Regional Level : Regional head
Divisional leve : Cluster Head
Branch Level : Center Manager
Area Level : Business Development Managers (BDM) (previously
BDM’s .
PRODUCT OFFERING
1. Trading Portal (with almost negligible brokerage )
 Equity Broking
 Commodity Broking
 Derivatives ( Futures & Options )
 Offshore Investments (Contract For Differences)

 D-Mat Account.
2. Financial Products
 Mutual Funds
 Life Insurance
 ULIP plan
 Term Plan
 Securities Back Plan
 General Insurance
o Vehicle/Motor Insurance
o Health Insurance
o House insurance
 IPO’s
 NFOs
3. Value-Added Services
 Retirement Planning
 Financial Planning
 Tax Saving
 Children Future Planning
4. Credit Cards

PRODUCT FEATURES;
DEMAT ACCOUNT
There are many broking houses doing business in India and they charge a
brokerage on every transaction made online or offline. (Buying and Selling are
treated as separate transaction). Reliance Securities’s advantage over others is
that it’s charging the lowest brokerage in the market which is just 1 paisa on every
executive trade irrespective of the volume traded. Reliance Securities, the
brokerage and distribution arm of Reliance ADA Group, aims to tap investors in
the smaller towns and cities through a flat fee structure. The current leaders in
the retail broking segment like ICICI Direct, India Infoline and India bulls offer a
‘pay per use’ model where the customer pays a percentage of the amount
transacted by him. Reliance Securities’s brokerage rates are quite competitive.
The new wonder is Reliance Securities's pre-paid card for stock market brokerage.
Reliance Securities, the financial services division of Anil Dhirubhai Ambani Group-
promoted Reliance Capital, is bringing to the market pre-paid cards in
denominations of Rs500, Rs1,350 and Rs2,500 with validity period of two months,
six months and twelve months respectively.

These cards would offer brokerage at one-third of the rate being charged by
institutional and individual brokerage houses. Sample this. For a pre-paid card
worth Rs500, an investor can trade up to Rs90 lakh in futures and option segment
or can undertake intra-day trade of similar amount. Besides, an investor can
undertake a delivery-based activity of Rs10 lakh.
The Rs1350 worth pre-paid card, total trading limit would reach Rs 3 crore, of
which Rs 2.70 crore is for the F&O segment and balance Rs30 lakh for delivery-
based activities.
For Rs2500 pre-paid card, total trading limit is fixed at Rs16 crore, that include
F&O limit of Rs15.40 crore and balance Rs 60 lakh for delivery-based broking.
Converted to percentage terms - Reliance Securities offers most competitive
brokerage rates - 0.01% for delivery trades and 0.001% for non-delivery trades
(fixed fee of Rs500/- for delivery trades up to Rs10 lacs and/or non-delivery trades
up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and
between 0.05% and 0.10% for non delivery trades. Target low level of retail penetration
in India - less than 3 per cent of household financing savings makes it into equity
markets. Reliance Securities consumers can trade in equities, commodities and offshore

Investments , IPO’s, Mutual Funds, Insurance, Securities transfer and Securities
Changing - all through single window, both off-line and online.
Fee structure and validity limits (+ Rs. 750/- as registration)

Reliance Securities
Access Validity Turnover Limit
has already tied-up with
Fees (Rs.)
(Whichever is earlier)
CMC Capital Plc UK to
Time Validity Turnover Intraday Delivry
offer offshore
Validity Turnover Turnover
Investment 500 12 months 1 lac Rs. 2 lac products to

1000 2 months 2 cr Rs. 90 lac Rs. 10 lac
Indian consumers
1500 6 months 3 cr Rs. 2.7 cr Rs. 30 lac
as per guidelines.
Unutilised delivery limit may be added to intraday limit

FEE
Unutilised delivery limit may be added to intraday limit
STRUCTURE
1. Two way authentication: Reliance offers its customers with a token (an
electronic gadget) that generates a password, which are a third level of security
in addition to the customer log in and a password provided. The password
generated by the token is valid only for a period of 20 seconds. If the web page
expires, for the fresh login, a new password generated by the token has to be
keyed in by the customer.

2. Lowest brokerage: Reliance offers the lowest brokerage of 1 paisa which is
very less with respect to the other DPs in the market.

3. User friendly software: The portal offered is very easy to understand and use.
4. Forex and offshore investment: Reliance provides the offshore facility which
no other AMC is providing in the market.

5. Better research and news: Reliance offers news from the DOW JONES and
REUTERS.
"Reliance Mutual Fund schemes are managed by Reliance Capital Asset
Management Limited., a subsidiary of Reliance Capital Limited, which holds
93.37% of the paid-up capital of RCAM, the balance paid up capital being held by
minority shareholders."
Reliance Capital Asset Management Limited (RCAM) was approved as the Asset
Management Company for the Mutual Fund by SEBI vide their letter no
IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an
Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and
was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations,
1996. Pursuant to this IMA,

DIFFERENT SCHEMES OF RELIANCE MUTUAL FUND
The different schemes offered to various kinds of investors by Reliance mutual
fund can be broadly classified into three categories –Equity, Debt and sector
specific. Each of these categories has different investment objectives and
therefore has different portfolio.
Equity Schemes
 Reliance Growth Fund

 Reliance Vision Fund
 Reliance NRI Equity Fund
 Reliance Equity Opportunities Fund
 Reliance Quant Plus Fund (formerly Reliance Index Fund)
 Reliance Tax Saver Fund
 Reliance Equity Fund
 Reliance natural resources fund
 Reliance Regular Saving Fund
 Reliance Long Term Equity Fund
 Reliance Equity Advantage Fund
 Debt Schemes
 Reliance Income Fund
 Reliance Medium Term Fund
 Reliance Short Term Fund
 Reliance Liquid Fund
 Reliance Monthly Income Plan
 Reliance Gilt Securities Fund
 Reliance Floating Rate Fund
 Reliance NRI Income Fund
 Reliance Interval Fund
 Reliance Liquid Plus Fund
 Reliance Fixed Horizon Fund- I, II, III, IV, V, VI, VII
 Reliance Fixed Tenor Fund
 Reliance Fixed Horizon Fund- Plan C
 Sector Specific Schemes

 Reliance Banking Fund
 Reliance Pharma Fund
 Reliance Media and Entertainment Fund
 Reliance Diversified Power Sector Fund
Along with the mutual funds of Reliance, Reliance Securities also sells the mutual funds
of other companies like ICICI, HDFC, Kotak Mahindra, Birla Sunlife, cholamandalam, etc.
Reliance Mutual Fund has launched Forty Three Schemes till date, namely:
ABOUT RELIANCE LIFE INSURANCE
Reliance Life Insurance is an associate company of Reliance Capital Ltd., a part of
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading
private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance
Capital has interests in asset management and mutual funds, stock broking, life
and general insurance, proprietary investments, private equity and other activities
in financial services.
 Reliance Capital Limited (RCL) is a Non-Banking Financial
Company (NBFC) registered with the Reserve Bank of India under
section 45-IA of the Reserve Bank of India Act, 1934.

 Reliance Capital sees immense potential in the rapidly growing
financial services sector in India and aims to become a dominant
player in this industry and offer fully integrated financial services.

 Reliance Life Insurance is another step forward for Reliance Capital
Limited to offer need based Life Insurance solutions to individuals
and Corporate.
Achievements
 RLIC has been one of the fast gainers in market share in new
business premium amongst the private players with an incremental
market share of 4.1% in the Financial Year 2007-08 – from 3.9% in
April 07 to 8% in Feb 08. ( Source: IRDA)

 Also continues to be amongst the fast growing Private Life
Insurance Companies with a YOY growth of 195% in new business
premium as of Mar’08.
 A Company that has crossed 1.7 Million policies in just 2 years of
operation, post takeover of AMP Sanmar business.

 Initiated Express Life – An Unique ’Over the Counter’ sales process
for Unit Linked Insurance Policies in the Industry.

 Accomplished a large distribution ramp-up in the Industry in a short
span of time by opening 600 branches in 10 months taking the
overall branch network above 740.

 RLIC continues to be one of the two Life Insurance companies in
India to be certified ISO 9001:2000 for all the processes.

 Awarded the Jamnalal Bajaj Uchit Vyavahar Puraskar 2007-
Certificate of Merit in the Financial Services category by Council
for Fair Business Practices (CFBP).
PLANS OFFERED BY RELIANCE LIFE INSURANCE
PRODUCTS
FOR INDIVIDUALS
EMPLOYERS LIABILITY SOLUTIONS
F
PROTECTION PLANS
EMPLOYEE PROTECTION SOLUTIONS
SAVINGS AND INVESTMENT PLANS
EMPLOYEE VOLUNTARY BENEFITS
RETIREMENT PLANS
CHILD PLANS

2. SAVINGS AND INVESTMENT PLANS
In life, you have always given your family whatever they have wanted. Yet, there
are some promises you have to fulfill, such as taking your family for a vacation, or
buying that dream house. Set aside some Securities to achieve these specific goals
with the help of Reliance Savings & Investment Plans. The plan allows you to
experience the joys of life and provide for your family’s needs. By this plan one
can save the Securities while making an investment.
3. RETIREMENT PLANS
You are a young and earning individual. The income you earn allows you to enjoy
life, your only worry being whether you will be able to continue the same lifestyle
after retirement. A Reliance Retirement Plan will help you save Securities for your
retirement. It ensures that you continue to get some income after retirement
thereby ensuring that you do not have to depend on any other person or make
any compromises to maintain the same lifestyle.

4. CHILD PLANS
Being a parent is one of the joys of life. Your child looks up to you and
depends on you for love, protection and support. You want to provide your
child with the best in life.
The Reliance Child Plan helps you save systematically so that you can secure your child’s future needs. Be
it higher education, his or her first home or any other requirement, you will always be there for your
child when he or she needs you.
Protection plan Savings and investment Retirement plans Child plans
plan
1. Reliance Term Plan 1. Reliance Super 1. Reliance Total 1. Reliance Child Plan
InvestAssure Plan Investment Plan Series
II- Pension
2. Reliance Simple Term 2. Reliance Super 2. Reliance Super Golden 2. Reliance Secure Child
Plan InvestAssure Plan Plus Years Plan Plan
3. Reliance Special Term 3. Reliance Total 3. Reliance Super Golden 3. Reliance Super
Plan Investment Plan Series I Years Plan Value InvestAssure Plan
– Insurance
4. Reliance Credit 4. Reliance Wealth + 4. Reliance Super Golden 4. Reliance Wealth +
Guardian Plan Health Plan Years Plan Plus Health Plan
5. Reliance special 5. Reliance Super 5. Reliance Wealth +
Credit Guardian Plan Automatic Investment

Plan Health Plan
6. Reliance Endowment 6. Reliance Securities 6. Reliance Super
Plan Guarantee Plan Automatic Investment
Plan
7. Reliance Special 7. Reliance Cash Flow 7 Reliance Securities
Endowment Plan Plan Guarantee Plan
8. Reliance Connect 2 8. Reliance Super Market
Life Plan Return Plan
9. Reliance Whole Life 9. Reliance Endowment
Plan Plan
10. Reliance Wealth + 10. Reliance Special
Health Plan Endowment Plan
11.Reliance Cash Flow 11. Reliance Whole Life
Plan Plan
12. Reliance Super
Golden Years Plan
13. Reliance Super
Golden Years Plan Value
14. Reliance Super
Golden Years Plan Plus
15. Reliance Connect 2
Life Plan

16. Reliance Imaan
Investment Plan
17. Reliance Savings
Linked Insurance Plan
FOR CORPORATES
As an employer, you believe in providing the best opportunities for your
employees while keeping the interests of the company in mind. How will you
strike a balance between the two? Reliance Life Insurance offers you a win-win
solution with Solutions for Groups. Not only are your employees covered for life
from accidents and disablements, you can also efficiently manage their future
with gratuity and pension plans.
1. Employers Liability Solutions

A. Group Superannuation
B. Group Gratuity
C. Group Leave Encashment Plan
2. Employee Protection Solutions
A. Reliance Group Credit Shield Plan

B. Reliance Group Term Assurance Plan
C. Group Term Insurance Plan- EDLI
3. Employee Voluntary Solutions

A. Group Savings Linked Insurance
GENERAL INSURANCE
Fundamentals of General Insurance companies are business houses. The product
they sell is financial protection. To succeed and survive, they must cover their
costs, which include payments to cover the losses of policyholders, as well as sales
and administrative expenses, taxes and dividends. Insurance companies have two
sources of income for covering these costs: premium and investment income. The
premium are collected on a regular basis and invested in Government Bonds, Gift
stocks, mutual funds, real estates and other conservative avenues. However,
investment income depends on market conditions, interest rates, economy etc
and varies from year to year. Because of the uncertainty associated with the
investment income, insurance companies must generate enough income form

premium to cover the bulk of their expenses. The primary function of insurance is
to provide protection against financial losses caused by unforeseen events. This
protection is available to individuals, businessmen and large companies alike.
Types of General Insurance
Health
 Individual Mediclaim
 Group Mediclaim
 Reliance Health Wise Policy
Personal Accident
 Personal Accident
 Group Personal Accident
Fire
 Standard Fire and Special Perils
 Consequential Loss (Fire)

 Industrial All Risks
Engineering
 Erection All Risks/Storage-cum-Erection
 Contractor’s All Risks
 Contractor’s Plant and Machinery
 Machinery Breakdown Insurance
 Machinery Loss of Profits Insurance
 Boiler and Pressure Plant Insurance
 Electronic Equipment Insurance
Marine
 Marine Cargo Insurance
Motor
 Private Car Comprehensive
Liability
 Directors and Officers Liability
 Public Liability (Act)

 Public Liability
 Product Liability
 Professional Indemnity
 Workmen’s compensation
Miscellaneous
 Industry Care
 Commercial Care
 Office Package
 Fidelity Guarantee
 Burglary and Housebreaking
 Securities Insurance
 Householder’s Package
 Shopkeeper’s Package
Travel
 Individual and Family
 Asia

 Student
 Corporate
BASIC FEATURES
 Hospitalization Expenses
 Daycare Treatment
 Domiciliary Hospitalization
 Pre and Post Hospitalization
 Coverage of Pre-Existing Diseases
 Critical Illness Cover
 Donor Expenses
VALUE ADDED FEATURES
 Expenses of accompanying person at the Hospital
 Local Road Ambulance Services
 Recovery Benefit
 Cost of Health Check up
 Nursing Allowance

 Hospital Daily Allowance
POLICY FEATURES
 Income Tax Benefit
 Sum Insured
 Pre-insurance Health Check up
MARKETING STRATEGY
What is marketing?
According to Kotler marketing is an organizational function and a set of processes
for creating, communicating and delivering value to the customer and for
managing customer relationship in ways that benefits the organization as well as
its stakeholders. It is the art of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating superior
customer value.
Definition of marketing depends upon the core concepts like needs, wants,
demands, targeting, positioning, segmentation, products, services, value,
satisfaction

Aspects of good marketing
STP concept
Segmentation: Segmentation is essentially the identification of subsets of buyers
within a market who share similar needs and who demonstrate similar buyer
behavior. The world is made up from billions of buyers with their own sets of
needs and behavior. Segmentation aims to match groups of purchasers with the
same set of needs and buyer behavior. Such a group is known as a 'segment'.

Segmentation is that part of the population on which the company gives its focus
and tries to get its customers from that area. Reliance Securities mainly gives
focus on people who are above 18 to 20 years.
Targeting:
It is the second stage of STP concept. After the market has been separated into its
segments, the marketer will select a segment or series of segments and 'target'
it/them. Resources and effort will be targeted at that segmentation. It targets the
people whose income range is above Rs. 2.4 lacs and also to the business people .
Positioning:
It is the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand, or organization. Reliance
Securities tries to position it as the safest firm for equity, commodity, Forex
transaction by providing additional security to its customers and also as the low
cost brokerage firm.
Strategy
Marketing strategy is the process which allows the organization to concentrate its
limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage. Reliance Securities’s strategy is designed in
such a way that which focuses on the customer satisfaction.
Marketing strategy is the written plan which combines product development,
promotion, distribution, and pricing approach, identifies the firm's marketing
goals, and explains how they will be achieved within a stated timeframe. It
determines the target market segmentation, positioning, marketing mix and
allocation of resources.
According to market dominance it belongs to the challenger type. It follows the
horizontal integration strategy. Because its main product is the demat account.
But along with the demat account it also sells life insurance, general insurance,
mutual funds of Reliance as well as of
other companies. It is also known as the distribution house of Reliance Capital
because it distributes the products of different organizations along with products
of Reliance.

Reliance Securities provides its products to its different customers according to
his/her needs. For example for a customer whose trading power is very low it
gives him the demat account of Rs. 1250/- If a customer is a heavy trader than it
gives him the demat account of Rs. 2750/- and if a customer is in between these
two then it gives him the demat account of Rs. 1750/- or of Rs. 2350/- It also
provides a token which gives the customer extra security because at the time of
login along with the user ID and password, the token key is also required. This
token key number is a 7 digit number which changes after every 32 seconds. So
another person cannot login to the account even if he knows the user ID and
password as he does not have the token number. Because of this it is very secure.
They are also providing the services at a lower cost. Reliance Securities charges
the least brokerage charges in India. They charge only 0.01% for delivery and
0.05% for intraday which very very less as compared to other brokerage firms in
India.
4P’s of Marketing
Product: the product of Reliance Securities is the Demat account. It also provides
the Credit Card services. Along with the demat account it also sells other financial
products like Life insurance , General insurance, Mutual Fund, Gold coins,

Securities transfer, Forex exchange, etc. it also provides the offline trading facilities
through Reliance Securities partners in 5000 cities across India and through phone
calls by dialing 022-39886000. In Demat account one has various investment options
line Equity Trading at NSE/BSE, Derivatives Trading, IPO Investment, Commodity
Trading, Forex Trading, etc.
Price:
The price they charge to open the Demat account is Rs. 1250. Out of which Rs.
750/- goes towards the administration and other charges and the rest Rs. 500/-
goes towards the purchasing a limit card which determines the turnover limit and
validity period of the account. If a customer is a heavy trader then he can opt for a
higher limit card to increase his/her purchase limit and validity.
Place:
Reliance Securities branches are present all over India. Reliance Securities has
around 10,000 branches in around 5,000 cities in India. Their main target is the
metro cities and other big cities in India.
Promotion:
The products are mainly sold because of the sales people. So Reliance Securities
mainly promotes or encourages its sales force to sell more. It also conducts
monthly campaigns and rewards the sales
Distribution Channel/Channel Marketing
There are three distribution channels to distribute the products and services of
Reliance Securities. They are as follows
1.Capital market channel:

This channel deals with the distribution of Demat accounts. In this channel
there is a team leader who is responsible for the sales in that territory. He
also assigns the tasks to his team members. So it is a group effort to attain
the target.
2. Emerging market channel:

This channel deals with the distribution of products like life insurance,
general insurance, mutual fund, etc. of Reliance Securities. In this there is
a team head who assigns the task to the subordinates.
3.Direct sales channels:

This channel distributes the products like life insurance, general insurance,
mutual fund of other companies like ICICI, HDFC, Cholamandalam, Birla life
insurance, TATA AIG etc. in this there is no team leader. Everyone has to do the
task individually.
They have tie-up with the DTDC courier to fasten the delivery of their products and
services.
TELEMARKETING
Telemarketing is a method of direct marketing in which a salesperson solicits to
prospective customers to buy products and services over the phone. It makes lead
generation for the business or if converted to sales builds business for the
company.

Reliance Securities has tie-up with different banks like ICICI, HDFC, AXIS, IDBI and
other banks. So it gets data about the customers of these banks. This also makes it
easier for cold calling, lead generation and convert it to sales. First they segregate
the data collected from these banks and then find out who could be the
prospective customers. Then they call from the Reliance Securities office and fix
an appointment with them. During the meeting they tell about the product and
make the prospective customer to understand about the features of the
product/service and clarify their doubts. Then they try to convert it to sales.
Canopy
Reliance Securities sets up canopy at different places to make aware about its
products to the people who are unaware about them. It is used as a promotional
tool and also helps in brand awareness. I have also got a chance to attend a
canopy for two days. It has also helped in lead generation.
ADVERTISEMENT
It makes its advertisement through news, press release, e-brochures and TV
commercials.

 e-Sponsored programme : Reliance Securities in partnership with
CNBC Awaaz, NSE and NSDL presents Pehla Kadam a national - level
investor education programme, focusing on guiding and educating first
time investors on the hows and whys of investment. It is a one-stop
destination providing solutions to all the dilemmas a new investor faces
at the start of any investment.
SWOT ANALYSIS
The overall evaluation of a company’s strength, weakness, opportunities and
threats is called as SWOT analysis. It’s a way of monitoring the external and
internal marketing environment. Strength and Weakness are internal. Opportunity
and Threat are external.
STRENGTH WEAKNESS
 Brand image RELIANCE  Lack of loyal clients

 Good database  Long time for customer query
 Low pricing
 Extra security clarification
 Aggressive sales force  Lack of any software for customers of
Demat account

OPPURTINITY THREATS
 Increased spending power of customers  Competition from existing players

 Rural markets are out of reach  Competition from emerging
 Only around 20% people are insured in
competitors
the country  Unpredictable SENSEX
 Unpredictable SENSEX
 Changing mindset of people
RESEARCH METHODOLOGY
OBJECTIVE
The objective of the study is to find out the investment pattern of customers and
awareness about Reliance Securities.
Type of Research : Exploratory Research
Size of sample : 50
Area of research study : Bhubaneswar
Sampling procedure : Convenient sampling
METHOD OF DATA COLLECTION
Primary data:
Procedure of data collection : Survey

Tools for data collection : Questionnaire
LIMITATIONS
1. The sample size is very less, hence the response of just 50 respondents
does not imply for the whole population.

2. The findings of the survey are based on the opinion of respondents and
there is no way of assessing the truth of the statement.

3. There are some respondent’s bias which cannot be overcome.
DATA INTERPRETATION
Interpretation: it shows that most of the people are now investing in the share market rather
than in the mutual funds. So the customers are more aware about the share market now-a-
days.

Interpretation:
It shows that most of the people are aware about the online trading of shares.
This all happened because of the development in the IT industry. People know
about the computers and they are able to trade online.

Interpretation:
Most of the people are aware about the Reliance Securities as a brand. This brand
awareness will help in the future to increase the market share of Reliance
Securities and it is a good sign for Reliance Securities.

Interpretation:
From the pie chart it is very much clear that ICICI and Reliance Securities has equal
market share in the market. Its closest competitors are ICICI and India Infoline.

Interpretation:
From the graph it is very clear that around 1/3rd of the customers i.e. 30% are not
satisfied with the present brokers. So there is a chance that Reliance Securities can
convert these people to its customers.

Interpretation:
From the graph it is very much clear that satisfaction level of around 38% people are
below 60%. Only 42% people have a satisfaction level of more than 80%. It will help in
increasing the market share of the company.

Interpretation:
Share market gives the maximum return in today’s world. Maximum people are doing
the trading daily and weekly manner. But 24% people are doing it in a monthly basis and
10% on yearly basis. It shows that there are very less people who invest in share market
for a longer period.

8. INVESTMENT PATTERN AS PERCENTAGE EARNING
Interpretation:
It clearly shows that half the people are investing around 10% to 25% of their earning.
There are only few players who are investing more than 50% of their earning. This is

because of the volatile nature of the share market 88% people are investing below the
25% of their investment.
CONCLUSIONS, FINDINGS AND SUGGESTIONS
FINDINGS
 Most of the people are investing in shares now-a-days. So there is a
huge market for the brokerage firm.

 The people who invest in share they know about Reliance Securities
and most of the people are aware about Reliance Securities.

 Reliance Securities has a great market share in the area. It is around
22% which is a good sign. It can be a market leader.

 Nearly 30% of the people are not satisfied by their current brokers and
satisfaction level is below 50% for 35%-40% customers. So they may
change their brokerage firms. Reliance Securities can acquire these
customers.
 Reliance Securities provides the service at a cheaper cost as compared
to other brokerage firms in India.

 They are present in all over India. They have around more than 10,000
branches in all over India.

 The customers are happy with the brokerage cost.
 During interaction with the customers of Reliance Securities, I found
that they are not happy with the customer service of Reliance
Securities.
SUGGESTIONS
Based on the findings of the project I would like to suggest the following
 After sales services are very important for getting new references. So
trained telesales should be appointed for this purpose.

 Reliance Securities should mention in written that it charges only 1
paisa on selling and not on buying because people are thinking that
there are some underlying charges involved.

 Along with the limit card they have to go for the percentage brokerage
i.e. the charges should be charged based on the transaction amount or
turnover.
 It should provide regular training programs for the advisors in order to
update their knowledge.

 Reliance Securities has different financial products like form Demat
account to general insurance. Each advisor is not aware about all the
products. So for them special training programs should be conducted.

 Reliance Securities does not provide any software to the customers. Its
competitors are providing software to their customers. Also software
makes the customers feel easy for trading. So Reliance Securities
should provide software to its customers.

 Many people are not aware about the ULIP plan of life insurance. So
there is a huge scope to sell these ULIP policies to the customers.
CONCLUSION
Based on the markets survey and SWOT analysis and other market conditions I
have come to the following conclusions
Although Reliance Securities is a new entrant to the market it became able to hold
a strong position in today’s market. The sales force of Reliance Securities mostly
consists of youngsters. They can be motivated easily to do a good job as they have
a long career to go for.
The stock market is very buoyant in the past 2-3 years. It also gives the maximum
return from all the investment options one have. So many people are interested in
stock market. Because of the recession most of the people are now not investing
in stock market. But as market going to stabilize the people will again invest in
equity. `

Till now people know about only two types of insurance plans i.e. term plan and
endowment plan. They do not know about the ULIP plans. ULIP plan also provides
the high return as compared to other plans. So there is a market for the ULIP plan.
Also according to a survey only 18%-20% of people are insured. So there is a huge
market potential for the insurance sector. Mutual Fund is also a good option for
investment. It minimizes the risk with a higher return. Some people think that it a
type of gambling.
With FDI limit being relaxed a lot of avenues will open up in the insurance sector
and insurance companies are expected to come up with new good plans with a
great deal of customization and flexibility.
Questionnaire Form
1. In which of the financial instruments do you invest?

a. Shares c. Bonds
b. Mutual funds d. Derivatives
2. Are you aware of online share trading?
a. Yes b. No
3. Have you heard about Reliance Securities?
a. Yes b. No
4. With which company do you have your demat account?
a. ICICI d. Kotak Mahindra
b. Reliance Securities e. India Bulls
c. India Infoline f. Others
5. What differentiates your share trading company from others? (in regards of
brokerage, satisfaction, services, products, etc.)

6. Are you
Name
Age
Sex M F
Phone number
Occupation
currently satisfied with your share trading company?

a. Yes b. No
7. What is your satisfaction level?
a. Below 20% d. 60% to 80%
b. 20% to 40% e. 80% to 100%
c. 40% to 60%
8. How often do you trade?
a. Daily c. Monthly
b. Weekly d. Yearly
9. How do you rate these share trading companies? (from 1 to 5)(ICICI,
Reliance Securities, India infoline, Kotak Mahindra, India bulls, Others)

10.What do you think you require with your Demat account?
Personal Data

BIBLIOGRAPHY
 Kotler
 India Today Magazine
 http://www.amfiindia.com
 www.finance.indiamart.com
 www.investorguide.com
 http://www.quickmba.com/marketing/market-segmentation/
http://www.marketingteacher.com/Lessons/lesson_targeting.htm

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Marketing strategy of Reliance Securities

ARYA SCHOOL OF MANAGEMENT STUDIES, JAIPUR

“Marketing Strategy of Reliance Securities”

Submitted for the Partial Fulfillment of the Requirement for

Under the guidance of

[DEPT OF MBA] Page 1

I hereby declare that this summer project report titled “Marketing

Strategy of Reliance Securities” is the result of my own effort in the

Place : - Kalandi Mohanty

Date : - Regd no:- 521072030

[DEPT OF MBA] Page 2

DEDICATION LEADS TO ACOMPLISHMENT,

ACOMPLISHMENT LEADES TO ACKNOWLEDGMENT.”

I have project privilege of undergoing major concurrent project for one

I extend my sincere thanks and acknowledgement to all the

Name: Kalandi Mohanty

Branch: MBA (marketing)

TO WHOMSOEVER IT MAY CONCERN

Mr. Sunil Kumar

[DEPT OF MBA] Page 4

UNIVERSITY STUDY CENTRE CERTIFICATE

This is to certify that the project report entitled “Marketing

Reg. No: 521072030 Certified

Place: Jaipur Mr. Manas Ranjan Pattanaik

[DEPT OF MBA] Page 5

The Project report of Kalandi Mohanty “Marketing Strategy of

Internal Examiner External Examiner

[DEPT OF MBA] Page 6

CHAPTER NO. TOPIC PAGE NO.

CHAPTER I INDUSTRY PROFILE 9 - 37

[DEPT OF MBA] Page 7

 WHAT IS GOOD MARKETING

CHAPTER X APPENDIX BIBLIOGRAPHY 90

[DEPT OF MBA] Page 8

Online trading refers to the buying and selling of shares /bonds/stocks/contracts

In India, a Demat account, the abbreviation for dematerialised account, is a type

of banking account which dematerializes paper-based physical stock shares. The

bought and sold through a stock broker.

Demat denotes the dematerialization of shares. Demat account along with a

details to the depository lapsed on January 2007.Under Section 68 B of the

Companies Act, inserted by the Companies (Amendment) Act, 2000, it is

[DEPT OF MBA] Page 10

excess of Rs. 10 Crores has to be issued in dematerialized form by complying with

the requisite provisions of the Depositories Act, 1996.

market. However, lack of modernization become a hindrance to growth and

resulted in creation of cumbersome procedures and paper work.

liberalization initiatives of the Government. The reforms in the financial sector

mutual funds, foreign investments and Government control. These institutions

[DEPT OF MBA] Page 11

Government of India decided to set up a fully automated and high technology

capital market, particularly, the clearing and settlement system in stock

exchanges. A depository in very simple terms is a pool of pre-verified shares held

in electronic mode which offers settlement of transactions in an efficient and

Advantages of Demat a/c are as follows:

 SEBI has made it compulsory for trades in almost all scrip’s to be

settled in Demat mode. Although, trades up to 500 shares can be

settled in physical form, physical settlement is virtually not taking

place for the apprehension of bad

fake certificates, etc.

[DEPT OF MBA] Page 12

 It eliminates delays, thefts, interceptions and subsequent misuse of

of deceased's name, etc. - can be effected across companies by one