Summer Internship Report On “To study the marketing strategy and client satisfaction level” Submitted Towards the Partial fulfillment of Post Graduate Degree in MBA (Retail Management) With special reference to Indiabulls securities limited SUBMITTED BY Shivani Gupta A0116208019 MBA (RM), Class of (2008-2010) Semester-III Under The Guidance of: External Supervisor: Internal Supervisor: Mr. Agnivesh kumar Mrs.
Garima malik Chief branch manager Amity Business School Noida Indiabulls securities limited New delhi AMITY UNIVERSITY ———-UTTAR PRADESH———- AMITY BUSINESS SCHOOL SECTOR-125, NOIDA, UP To study the marketing strategies of indiabulls and to analyse the client satisfaction level.
Name of the organization: indiabulls securities Ltd. Ashish corporate Tower karkardooma new delhi110092 Name of the External guide and designation in the Organization: Mr.
Agnivesh kumar, Chief branch manager ACKNOWLEDGMENT The satisfaction Euphoria that accompany the successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, who constant guidance and encouragement served as a beckon of light and crowned our efforts with success.
” I consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of this project. I am deeply indebted to Mr. AGNIVESH KUMAR (Branch Manager) for giving me the opportunity to undergo my project in their esteemed organization and for their timely suggestions & Valuable guidance. I also want to give thanks to the entire staff and employees of indiabulls MR RUCHIN THAKUR (senior relationship manager) and MR MOHIT GOEL (dealer). They constantly encouraged me and showed the right path from day first till the completion of my project. y grateful appreciation is also extended to Ms GARIMA MALIK (Faculty-guide) my thanks to all my faculties members, Parents and friends I had visited some markets of delhi and collected information of the project. I have also done promotional activities under the constant guidance of my project mentor. However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice. CONTENTS Serial No. |Topics |Page No. | | |Acknowledgement | | | |Executive Summary |5 | | |Group profile |5-10 | | & Milestones | | | |Group facts and figures |11 | | |Company profile |11 | | |4 p’s of indiabulls securities |14 | | |Service gap model |23 | | |Business model and business strategy |24-25 | | |Swot analysis |26 | | |Porter’s 5 forces |30 | | |Overview of financial market |32 | | |Overview of stock market |37 | | |Behavior of stock market |42 | | |Bull and bear market |46 | | |Marketing strategies |55 | | |Market share of indiabulls and competitors |60 | |16. |Client satisfaction level and expectation model |61-63 | | 17. |Research methodology |64 | |18. Results |69 | |19. |Conclusion and recommendations |75 | |20. |appendices |78 | |21. |References |86 | EXECUTIVE SUMMARY The project report is a result of two months training with indiabulls securities. summer training is an integral part of “post graduate diploma in management”course . it aims at providing first hand experience of industry before coming to corporate world. Objective of my report is to study and analyse marketing strategy and client satisfaction level in indiabulls securitiesAccording to my research indiabulls has a good brand image in the minds of their client because of advertising. According to my survey I found out that the factors that attract an investor in broking firm is solely service . brand image doesn’t play much role in this. even less no of clients are for indiabulls as against religare can be attributed to uneven distribution of indiabulls branches. power indiabulls which is an advanced trading software is widely appreciated and used by clients. this was one of the best contribution of indiabulls to their business. As per my research I concluded that indiabulls lack in promotional schemes to attract and retain their clients. They should focus on more brand promotion through canopies and mall interaction..
The training gave me great deal of exposure and I found pratical experience entirely different from theoretical one. basically the project dealt with finding new opportunities for the brand and to find customer perception for brands vis-a-vis others and to mould according to customer demand. Chapter 1 [pic] INDIABULLS VISION: To be the largest and most profitable financial services organisation in indian retail market and become one stop shop for all non banking financial products and services for the retail customers. MISSION : rapidly increase the number of client relationships by providing a broad array of product offering to emerge as a market leader.
Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal started Indiabulls in May 2000 as an online stock brokerage. The three founders of Indiabulls are engineering graduates from the Indian Institute of Technology, Delhi. . History India bulls Financial Services Limited was incorporated on January 10,2000 as M/s Orbis Infotech Private Limited at New Delhi under the Companies Act. The name of Company was changed to M/s. India bulls Financial Services Private Limited on March 16, 2001 due to change in the main objects of the Company from Infotech business to investment & Financial Services business. It became a Public Limited Company on February 27, 2004 and the name of Company was changed to M/s. Indiabulls Financial Services Limited.
The Company was promoted by three engineers from IIT Delhi, and has attracted more than Rs. 700 million as investments from venture capital, private equity and institutional investors such as LNM India Internet Ventures Ltd. , Transatlantic Corporation Ltd. , Farallon Capital Partners, L. P. , R R Capital Partners L. P. , and Infinity Technology Trustee Pvt. Ltd. and has developed significant relationships with large commercial banks such as Citibank, HDFC Bank,Union Bank, ICICI Bank, ABN Amro Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS. The Company and its subsidiaries have facilities from the above mentioned banks and financial institutions aggregating to Rs. 1760 million.
The Company headquarters are co-located in Mumbai and Delhi, allowing it to access the two most important regions for Indian financial markets, the Western region including Mumbai, rest of Maharashtra and Gujarat; and the Northern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana,Uttar Pradesh and Punjab; and access the highly skilled and educated workforce in these cities. Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal started Indiabulls Group by acquiring a minor brokerage company, Orbis Securities, in 1999. The group started it business as a stock-brokerage firm and pioneered online brokerage business in India before diversifying into other financial services areas such as consumer credit (2004) and mortgages (2005).
The group partnered with Farallon Capital to purchase land-mark bombay land assets and is currently building one of the largest integrated commercial real estate projects in India (valued at more than $2 billion). The group recently entered the Power generation business and aims to have more than 5000 MW of power generation under construction before 2008 end. PROFILE OF INDIABULLS Indiabulls Securities Limited is India’s leading capital markets company with All-India Presence and an extensive client base. Indiabulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country.
Indiabulls Financial Services Limitedis an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. Indiabulls Financial Services signed a joint venture agreement with Sogecap, the insurance arm of Societe Generale (SocGen) for its upcoming life insurance venture. Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, is setting up India’s 4th Multi-Commodities Exchange. Indiabulls Real Estate Limited Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces.
Indiabulls Real Estate has diversified significantly in the following business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development. Power: Thermal and Hydro Power Generation Indiabulls power Started in September 2007, Indiabulls Power Business has seen tremendous growth since inception. Indiabulls has ventured into the power business to take advantage of the opportunities presented by the huge gap in Demand and Supply of power in India and plans to develop, construct and operate power projects domestically and internationally. Indiabulls is participating in arious Coal based Thermal, Hydro and Renewable Energy projects as well as is actively pursuing various coal mining opportunities. Indiabulls is currently developing/evaluating projects with an aggregate capacity of 9412 MW. These projects include coal based thermal power projects at Amravati (2640 MW), Nasik (1320 MW) in Maharashtra, Bhaiyathan Thermal Power Project (1320 MW) in Chhattisgarh and so on.. Besides these, several power projects are currently under evaluation in various parts of India. Indiabulls Retail Services is the retail arm of Indiabulls Group, a business conglomerate catering to the entire Indian consumption space. Indiabulls Retail operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market.
The company has forayed in multiple formats which include Indiabulls Megastores (in the process of being re-branded) – a chain of lifestyle stores, “Happy Store” – a Newly Launched Hyper format offering great value for money on daily needs, apparels, home and appliances. The company already has operation operational stores at Pune, Nagpur & Faridabad (NCR) . The Company plans to stretch across the nation with the addition of more such stores In the month of December 2007 – Indiabulls Wholesale Services, the retail arm of Indiabulls Real Estate, acquired Piramyd Retail, a company owned by the Ashok Piramal Group which runs 35 neighbourhood retail stores and seven lifestyle stores. Indiabulls Wholesale has acquired 63. 92 per cent stake in Piramyd Retail at an enterprise value of around Rs 208 crore (Rs 2. 08 billion), said sources close to the deal. Indiabulls Wholesale, which is setting up 30 hypermarkets in as many tier-II cities at a cost of Rs 1,500 crore(Rs 15 billion), plans to expand Piramyd’s existing network of 42 stores to over 150 stores by the end of 2008. With this acquisition, Indiabulls will have a presence across different formats hypermarkets, lifestyle and convenience store formats. The acquisition provides Indiabulls 1,300 trained people and 10 lakh square foot of prime retail space. Growth Story |Year | | |2000-01 |Indiabulls Financial Services Ltd. established one of India’s first trading platforms with the development of an | | |in house team. |2001-03 |Indiabulls expands its service offerings to include Equity, F, Wholesale Debt, Mutual fund, IPO distribution and| | |Equity Research. | |2003-04 |Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and | | |franchise model. | |2004 |Indiabulls came out with its initial public offer (IPO) in September 2004. | | |Indiabulls started its consumer finance business. | | |Indiabulls entered the Indian Real Estate market and became the first company to bring FDI in Indian Real Estate. | |Indiabulls won bids for landmark properties in Mumbai. | |2005-06 |Indiabulls has acquired over 115 acres (0. 47 km2) of land in Sonepat for residential home site development. | | |Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding| | |in Indiabulls. | | |Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, | |2006-07 |Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35. | | |acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crore to develop | | |residential apartments. | | |Indiabulls Financial Services Ltd. is included in the prestigious Morgan StanleyCapital International Index | | |(MSCI). | | |Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd. Indiabulls ventured | | |into commodity brokerage business. | | |Indiabulls has received an “in principle approval” from Government of India for development of multi product SEZ | | |in the state of Maharashtra. | | |Dev Property Development plc. has subscribed to new shares and has also acquired a minority shareholding from the| | |Company. | | |Indiabulls Financial Services Ltd. Board resolves to Amalgamate Indiabulls Credit Services Limited and demerge | | |Indiabulls Securities Limited. | FACTS ABOUT INDIABULLS ? Indiabulls Group is one of the top business houses in the country with business interests in Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power sectors. Indiabulls Group companies are listed in Indian and overseas financial markets. ? The Networth of the Group exceeds USD 2 billion. Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India. Indiabulls Securities Limited is the first and only brokerage house to be assigned the highest rating BQ – 1 by CRISIL. ? Indiabulls Financial Services Ltd is amongst 68 companies constituting MSCI – Morgan Stanley India Index Indiabulls Financial is also part of CLSA’s model portfolio of 30 Best Companies in Asia. ? Indiabulls real estate limited isIndia’s third largest property company with development projects spread. Indiabulls Financial is also part of CLSA’s model portfolio of 30 Best Companies in Asia INDIABULLS SECURITIES IN STOCK MARKET Indiabulls Securities Limited (ISL) is the pioneer in Retail Broking Industry having a pan India presence and providing services to a customer base exceeding half a million.
ISL is in the business of providing securities broking and advisory services and is a corporate member of capital market, wholesale debt market and derivative segment of NSE and of the capital market and derivative segment of BSE. ISL is the first and only brokerage house to be assigned the highest rating BQ-1 by CRISIL INDIABULLS COMMODITY LIMITED Indiabulls Commodities Limited, a 100% subsidiary of Indiabulls Securities Limited, offers commodity brokerage services to its customers. icl is a registered Trading-cum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and National Commodity and Derivatives Exchange Ltd (NCDEX). These two Commodity Exchanges have shown a phenomenal growth in trading volumes. Significant Trading and Arbitrage opportunities exist for informed players in the futures market.
ICL is the right partner for you if you are keen on tapping opportunities being presented by this nascent commodities futures market. They offer a clearly differentiated product to clients with a strong focus on research. commodities research team has a rich research experience in the commodities markets. The specialized services provided by r research team include daily intraday reports, reports on Agri-commodities & Metals, weekly & medium term market outlook and arbitrage strategies. its retail branch network is one of the largest retail branch networks in the private financial services sector and provides customers with an unmatched distribution and service capability.
Indiabulls network, spread over more than 250 Indiabulls offices in 80 cities, offers real-time prices, detailed data and news, intelligent analytics and electronic trading capabilities, right at you fingertips. ICL offers dedicated Relationship Manager to cater to all trading related requirements. To provide the highest possible quality of service, They provide full access to all products and services through multiple channels. As you know stock market is affected by investor’s sentiments. so does the commodities markets. if the stock market falls. people will start investing in commodities this will give rise in prices of metals and other commodities. it also work on principle of demand and supply. ORGANISATION STRUCTURE ith authoritative style of management . indiabulls securities has the following hierarchical structure in new delhi (karkardooma branch) EXECUTIVE VICE PRESIDENT SENIOR VICE PRESIDENT VICE PRESIDENT CHIEF BRANCH MANAGER ASSOCIATE VICE PRESIDENT SENIOR RELATIONSHIP MANAGER RELATIONSHIP MANAGER ASSOCIATE RELATIONSHIP MANAGER MANAGEMENT TRAINEE 4 P’S OF MARKETING IN INDIABULLS SECURITIES PRODUCTS OF INDIABULLS SECURITIES The company through various types of brokerage accounts provides product and services related to purchase and sale of securities listed in NSE and BSE. It also provides depository services, equity research services, mutual fund, IPO distribution to its clients.
The company provides these services through on-line and off-line distribution channel. ? POWER INDIABULLS-‘ TRADING JUST GOT FASTER’ Power Indiabulls(PIB) is an online trading platform which brings you the power of a broker’s terminal on your desktop. It is an in-house developed internet enabled trading solution that supports securities and derivatives trading with NSE and BSE. PIB is designed for the high volume traders that provide access to multiple market segments through the ease of a single terminal. Designed by the technology team of Indiabulls, PIB comes with several enhanced features, which makes it the best desktop trading application in the country today.
You can create market watches where you can view “live broadcast” of stocks both in capital as well as F segment. Stock prices get updated automatically every second without any manual intervention. PIB provides you with extensive real time reports to evaluate the performance of your portfolio. Salient features of Power Indiabulls: o Integrated market watch for securities and derivatives o Live Streaming Quotes o Fast Order Entry o Tic by Tic Live Charts o Technical Analysis o Live News and Alerts o Extensive Reports for Real-time Accounting Benefits: o Priority access to Relationship Managers who are dedicated to support your trading and investment needs. o Get access to Indiabulls Equity Analysis of more than 500 listed companies. Get access to Research Reports. o Enjoy competitive commissions and get the service and support you need at a fair price. [pic] This is how the power indiabulls look like. this is actually a broker’s terminal. Clients are also provided the same terminal with a 4. 3 version.. through cap trading dealer buy/sell on client’s behalf. for futures there is f trading. reports show the current obligation of client for the same day. accounts heading show the total value of stock margin which is 50% of market value of a scrip(share). It even shows accounts if client ask for withdrawl of money. under reports head brokerage charged for each client can be seen. or thorough understanding equity analysis of each stock can be seen. ltp indicates last traded price for each scrip it keeps on changing each time a trade happens. red and blue colour indicates selling and buying. alerts are also made by RMs on client behalf say for alerting them when price reaches a particular level. offer price is the price at which seller wants to sell. bid price is set by buyer. bid quantity is the total no of stocks. LTQ is last traded quantity. %change shows rise and fall in prices. ATP is average traded price. open is the price at which market opened and vice versa for close. high and low is the price for that day. TSQ and TBQ are total selling and buying quantity.
For clients there are live quotes of market,portfoliotracker which let them track the performance of their stocks . also keeps record of profit and loss earned. ,news,live charts to understand stocks momentum,real time reports to see their obligations,position in cash and f,orders placed and trade executedalert manager to track scrips for price and volume,world markets and much more. ? INDIABULLS SIGNATURE ACCOUNT It provides you the platform to trade in Equity and Derivatives. • Ease of trading – With Indiabulls Signature account you have the flexibility to place your orders either by logging on the website, calling at the branch or walking in the branch. Dedicated Service Branch and Relationship Manager: You can get in touch with your Relationship Manager and Service Branch for all your trading related requirements. • Power Indiabulls (PIB): You can trade smarter and faster using the Power Indiabulls application. Access the broad spectrum of sophisticated trading tools and get an edge in the stock markets. • Online Payment Gateways: Use our online payment gateways facility and get instant credit in your Trading Account. We currently provide online gateway payment facility with four major banks – HDFC, ICICI, AXIS and IDBI. • IPOs – Indiabulls provides you the flexibility to apply in ongoing IPOs through either online or offline channels. For applying online, you do not need to fill tedious forms and write cheques.
You can apply conveniently in IPOs from the comfort of your home / office through our Website/PIB. For applying offline, you can contact your Relationship Manager/ Service Branch ? DEPOSITORY SERVICES Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Indiabulls performs clearing services for all securities transactions through its accounts. they offer depository services to create a seamless transaction platform – execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services.
Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs ? IPO ONLINE ONLINE IPO facility offered by Indiabulls Securities Ltd. is the convenience in submission of applications from anywhere breaking the limitations of time and geography. You don’t need to submit the application in paper form, or write a cheque or go to submit it anywhere. Now you have the convenience at your fingertip. You can quickly and seamlessly apply to the latest public offerings with just a few clicks. Indiabulls Securities Ltd. offers ONLINE IPO facility to its registered trading customers at absolutely no cost. ? NRI ONLINE TRADING
Non-Resident Indians (NRIs) can also enjoy the state of the art Online trading Platforms of Indiabulls to trade in Indian Capital Markets. We, at Indiabulls, provide NRI clients a fast and secure trading platform which would perfectly cater to NRI’s Trading requirements Salient features of NRI Trading Account • Dedicated Service Branch and Relationship Manager: You can get in touch with your Relationship Manager and Service Branch for all your trading related requirements. • Online Trading: You can place your orders through our state-of-the-art Online trading platforms (Power Indiabulls (PIB) & Website) • Power Indiabulls (PIB): You can trade smarter and faster using the Power Indiabulls application.
Access the broad spectrum of sophisticated trading tools and get an edge in the stock markets. • Portfolio Tracker: You can track your investments online through our portfolio tracker functionality. You can conveniently track the daily movement, notional / booked profits and losses in your portfolio. • Equity Analysis Report – A qualified and dedicated team of equity analysts at Indiabulls publishes various research reports. You can view these reports to gain insight into the companies of your interest. ? INDIABULLS EQUITY ANALYSIS Indiabulls Equity Analysis complements its equity broking and advisory services with high quality comprehensive report which can be accessed online.
Research report assess the potential strength and investment risk by doing in-depth and exhaustive analysis of operational and financial performance of company, Peer group analysis, present Industry scenario using advanced and sophisticated forecasting tools and models. These research reports identify, examine and distill attractive investment opportunities to help you in building and maintaining your ideal portfolio. Salient features of Indiabulls Equity Analysis: o Covers report of more than 540 company o Updated on a daily basis o Scorecard on Fundamentals, Valuations and risk o Peer Analysis o Valuation of potential growth o Industry Scenario Expansion plan o Details of Mergers and Acquisitions ? CURRENCY DERIVATIVES Indiabulls offers trading in the Currency Derivatives Segment in NationalStockExchange(NSE)currencydeivatives are similar in nature to Stock or Index Futures contracts. Currency Futures Contracts, with INR: USD exchange rate as the underlying, are available with a monthly expiry. At any given time, Currency Future Contracts are available for trading for the next 12months. The Mark-to-Market for Currency Derivatives is settled on a daily basis in a manner similar to Equity / Index Futures. The market for Currency Derivatives is open from 9 A. M to 5 P. M (Monday to Friday).
CHANNELS OF TRADE IN INDIABULLS INTERNET-It provides you two platforms to trade in stock market. trading website trade. indiabulls. com and power indiabulls trading software on your desktop. OVER PHONE- Clients can also place orders on phone in different branches. BRANCH WALK-IN-They can also place orders by visiting their branches. TYPES OF TRADING INTRADAY : in this type of trading investor can buy any share of his/her preference but he/she has to sell that share on the same day before 3. pm. if he/she fails to do that then indiabulls itself sells his/her shares even at a loss. Example-if an investors buys 300 shares of DLF AT 3000 each and fails to sell it on time. hen at 3pm co will sell his shares say the market price at that time be 2000. in that case investor will face loss. DELIVERY : In this type of trading investor can buy any share during market time but is not bound to sell it on the same day. he/she can hold the stock as long as he want to. this is basically a long term investment. MARGIN :in this type of trading client borrows money from co at a rate of interest for delivery and intraday trade. 21% is charged. limit for exposure is: 2times for delivery with 7 days holding period. 12 times for intraday. but no interest rate is charged in this case. Example- suppose an investor wants to buy shares of 2lacs . e need to put 1lac rs in delivery. rest 1 lacs will be funded (2 times exposure) @21%p. a. now after buyin 2lacs rs shares. on 7th day his position for shares is 1. 8lacs(it can be any amount). the co will cover it’s loan position and rest 80 k would be for investors. he will bear loss of 20 thousand. In the meanwhile co will keep giving margin call ie first and second. after that if he doesn’t sell his stock ,at third call co will square off his position to cover the fund. no matter whatever be the price at that time. in the above case co will give first call at 60%loss on funds. ie when price reaches1. 4lacs. if he doesn’t sell at this time. econd call will come at 70% loss. if it reaches to 1. 3lacs. finally co will sell it on its own at 80% loss. at 1. 2 lacs. this is how co covers its money of 1lacs along with interest and investor suffers a loss of 80 thousand. thus margin buying takes care of investors as well as company’s funds. PRICING STRATEGIES Account opening fees: Rs 900 (One time non-refundable) as below: 700-Equity Trading Account 200/-Demat Account opening charge besides this indiabulls charges 750 for the software ie power indiabulls. this helps clients to get market watch along with news and tips. along with it the brokerage charged is also negotiable depending on investment. he brokerage is charged on sale and purchase of securities on client’s behalf it is 10 p on value 0f 100rs of shares on intraday trading and 50p on delivery based trading. Pricing strategy followed by indiabulls is complementary pricing. it is done for complementary products ie trading account and demat account. under this pricing firm is actually applying captive pricing. as the firm is offering base product-trading account and provides another service needed to continue using the former product ie demat account. By this company is offering some part of price of base product to peripherals. DISTRIBUTION SYSTEM indiabulls securities has presently 115 branches in 54 cities in India. it includes online and offline as well as corporate offices. There is no ranchisee business in indiabulls securities. it is operating under a format of retail branch network. PROMOTION: Indiabulls is turning to marketing public relations to directly support corporate and product promotion and image making. Because public is any group that has an actual or potential interest in or impact on a company’s ability to achieve its objective. Indiabulls has its team of relationship manager that monitors the attitudes of organization’s publics and distributes information and communications to build goodwill. They are performing following five functions: 1. Press Relations: – They present news about the organization in the most positive light. 2.
Product Publicity: – All Relationship managers are sponsoring efforts to publicize product offerings by Indiabulls i. e. NIB and PIB. 3. Corporate Communication: – They promoting understanding of the organization through internal and external communications. 4. Counseling: – All RMs advise management about public issues and company positions and image during good and crises. Indiabulls is promoting its product by advertising by following medium: • Electronic media: – By advertise its product via Television. They have an ad featured on air. it portrays many people are gathered in a meeting. there is a sardarji who knows what’s going on. except others. e actively participate by questioning the authority. then they came to know that he knows the mechanisms and details of share market. everybody’s astonished to see that he understands each and every thing . this was the message potrayed by indiabulls that with the help of them trading becomes simpler and anybody can understand. • Print media: – By various Pam plates, brochures, etc. • Canopy: – Indiabulls is now promoting its product by canopies. By Canopies company can know the potential area of the cities and segment of population to whom it should target. they had canopies in many cities. But it should be improved in no in metroes as well. his will provide more exposure to the company SERVICE PROCESS NIB – Normal Indiabulls: – “A multitude of ways to access your account either through priority access to Relationship Manager over phone OR online access to your Account & Research Tools. ” Enjoy priority telephone access that gives you direct access to your Relationship Manager. Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes. Online trading through trade. indiabulls. com Power indiabulls- trading just got faster A client can also trade through software terminal on online basis. they can also avail latest features. or customers to provide better service Indiabulls is providing following unique services to his customers: – Relationship Managers who are dedicated to supporting customers trading and investing needs. They always keep in touch with client through phone,sms and mailsand they give various tips to client by which he can invest in good stocks. Dealers everyday give confirmations of the client’s whole day trading in the evening after signing out from the Market. besides that they executes order of clients. [pic] MANAGEMENT OF SERVICES 1. Gap between customer expectation and management perception: Management does not always correctly perceive what customer want.
For intense in Inidabulls a customer is expecting that he can buy share after deposited require check but he has to wait for 3 days and same happen with demand draft. as it takes t+2 settlement to clear the cheque and shares from seller to buyer through clearing member 2. Gap between management perception and service quality: Management might correctly perceive customer’s want but not set a performance standard. Like a form of an account should passed away from the all stages of processing but it mostly takes time of 10 days. 3. Gap between service quality specification and service quality: Personnel might be poorly trained, or incapable or unwilling to meet the standard or they may be held to conflicting standards, such as taking time to listen to customer and serving them fast.
That happens in indiabulls,say he takes more time to pitch a client for trading and many times result in nothing. 4. Gap between service delivery and external communication: customers’ expectations are affected by statement made by company representative and ads,depicted in tv and pamphlets etc . as customer suffered a lot according to their reviews for bad service and no solution being offered to them for their complaints. 5. Gap between perceived service and expected service: This gap occurs when the customer misperceives the service quality. A client might perceived wrongly like in infrastructure of Indiabulls- Indiabulls also try to demonstrate its service quality through Physical Evidence and presentation.
In Indiabulls office all client come everyday and they trade but with the time passing Indiabulls is growing and number of client increasing day by day so space of office is not sufficient for both staff members and clients also. To overcome this problem Indiabulls will have . to focus on good infrastructure and physical evidence. BUSINESS MODEL Indiabulls is working under brick and mortar format where clients can either visit or/and can call besides online format. it’s a broker model where it doesnot take ownership of goods being sold. Instead they charge a fee (brokerage) for the product and service being sold. it matches the buyer and seller of financial assets. it has shifted from traditional sub-broker model to marketing associate model. hus indiabulls attracts more clients from marketing as they perform: Trading –through trading and demat account Clearing- through association as a depository participant with CDSL and NSDL for clearing of transactions Servicing for clients- highly trained and skilled RMs to assist clients BUSINESS STRATEGY OF INDIABULLS GROUP [pic] Indiabulls has entered into : PRODUCT DEVELOPMENT they have introduced ‘TOKEN KEY’ for trading. this is done to ensure secured trading. clients while doing online trading besides their client-id and password have to give the no flashing on digital token device. this was done with an intent to avoid forge and fake trading. s each time the client places an order within 30 secs no changes. so they have to provide that. This can’t be cheated by anyone else. so it is a new product to complement existing products. this key is send to all those clients who are active traders that too free!. Another development can be seen from growth chart of indiabulls in 2003 they offered more services like equity,f &o,mutual funds and ipo. besides these innovative products like power indiabulls and signature account add to this aspect. DIVERSIFICATION It has diversified into unrelated businesses like indiabulls retail,real estate and power which caters to different markets. Related diversion happened into commodities trading in2003-2004 [pic] | | | | | |[pic] |[pic] | | | | | | | | | | | | | | | | | | | | | | |1.
TRANSPARENCY |1. SOFTWARE COMPATIBILITY | |Trading process in indiabulls securities is very clear. An |Sometimes software is not properly uploaded on client’s | |individual investor can trade on his /her own. Reltionship managers|terminal. the software is not compatible with firewalls | |are alloted for their assistance. they have to take approval from | | |clients for trading in any particular stock unlike other security | | |trading firms. | | | | |2. SECURITY |2. ACCOUNT OPENING TIME | |To safeguard trading process for clients token system has been |Time taken for getting an account opened in indiabulls is | |introduced by indiabulls besides client id they have to give the n|generally very long. this creates waiting time for clients. | |flashing on token device. This has been done with an intent to | | |eliminate false trading. | | | | |3. ACCURATE RESEARCH WORK | | |Indiabulls provide best research work like equity analysis for |3. TIME CONSUMING TOKEN SYSTEM | |individual companies. this provides an insight about financial |Since token system has been introduced,though done for | |performance of a company and helps retail investors in trading. |security purpose. ut each and every time the client has to | | |give token no while trading. this leads to delay in transaction| | |ltimately leading to losses for clients in many cases. | | | | |4. NO MAINTENANCE CHARGES |4. NO FRANCHISEES | |Unlike Reliance money and kotak securities they are not charging |Indiabulls securities has branches all over india. but they | |any annual maintenance charges for client’s account.
Thus |don’t have franchisee. this is amajor barrier inincreased | |charging less from their clients. |revenues. | | | | |5. SERVICES |5. HIGH ATTRITION RATES | |Better services are provided to clients in terms of personalized |Rms leaves the job frequently. this affects the company as | |attention,upgraded software , assistance , trading exposure and |client faces problem in terms of varied services. | |mobile alerts. | | | | |6. SOFTWARE TERMINAL | | |Indiabulls provides terminal to their clients called power | | |indiabulls that is highly upgraded and advanced in terms of market| | |watch,global indices,news and tips and | | |IPO etc. | | | | |7. COMPETENCY | | |Indiabulls securities limited was the first who introduced full | | |fledged online trading sysstem. Thus they have an edge over other | | |competitors. | | | | | |8.
BRAND IMAGE | | |It has a strong brand image in the minds of consumer. thus attracts| | |many investors. | | | | | |9. RISK MANAGEMENT SYSTEM | | |It has a well defined RMS that helps in short selling trade. his | | |system helps in giving margin call and intimates clients on margin| | |if trading in losses. | | | | | |10. CUSTOMER RELATIONSHIP MANAGEMENT | | |They have developed a team of relationship managers to handle key | | |customer accounts. hus these skilled people provide unbiased | | |advice on various stocks to investors. | | | | | | | | | | | |[pic] |[pic] | | | | | | | | | | | | | | | |1. GLOBAL EXPANSION |1.
COMPETITION | |indiabulls can be used for outsourcing. like it has chances to |Intense competition among the peer groups to grab maximum | |trade for singapore stock exchange. thus will get an exposure in |market share. | |outside market and it will help in cost cutting. like Gulf bulls. | | | | | |2. NEW PRODUCTS | | |Indiabulls has the opportunity to enterinto new ventures like |2.
ECONOMIC SLOWDOWN | |mutualfunds, insurance Etc. thus can earn profits in these new |In case of slowdown it affects the business of the firm. It | |markets. |can lose maximum clients out of it. | | | | | | | |3. LISTING OF SECURITIES | | |indiabulls can get approval from foreign government to get their |3.
SUBSTITUTES | |stock listed in foreign stock market. Thus can get a chance to |nowadays many banking firms are going in the new segments of| |earn more revenues. |mutual funds like kotak. as you know mutual funds are less | | |risky than securities and provides assure and more returns in | | |that. thus mutual fund firms poseamajor threattorokerage irms | |4. DIRECT SALES ASSOCIATE |similarly ixed eposits ith anks nd post offices. |indiabulls can get themselves established as DSA’S in other | | |countries as well as in india. | | | | | |5. POLL-KIOSKS SYSTEM | | |Like reliance has introduced kiosks for trading. it’s basically a | | |hub that facilitates trading for clients. where they can go and do | | |online trading while they are mobile. | | | | [pic] [pic] 1. Buyer Power • Lack of Expertise curtails Bargaining Power Retail investors often lack the knowledge and expertise in the financial sector that calls them to approach the broking houses. Low Product Differentiation Proves Beneficial The retail broking services provided by the various companies is homogeneous with very low product differentiation. This allows customers to enjoy a greater bargaining power. 2. Supplier power • Increased Dependence on IPOs There is a growing dependence of corporates on broking houses with the rising number of IPO’s coming to the market. 3. Intensity of competition • Move towards consolidation
Lot of brokerage companies are moving towards consolidation with the smaller ones becoming either franchisees for the larger brokers or closing operations. • Increased Focus of Banks in Retail Broking Various foreign banks like ABN Amro and others are planning to enter the Indian retail brokerage industry. • Online Trading Competes with Traditional Brokerage There is an increasing demand for online trading due to consumer’s growing preference for internet as compared to approaching the brokers. 4. Threat of New Entrants • entry of foreign players New forms of trading including T+2 settlement system, dematerialization etc are strengthening the retail brokerage market and attracting foreign companies to enter the Indian industry. 5.
Threat of Substitutes • Various alternatives form of investment Alternative Investment including fixed deposits with banks and post offices etc act as substitutes to retail broking products and services Chapter-2 FINANCIAL MARKET Financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect efficient markets. Both general markets, where many commodities are traded and specialised markets (where only one commodity is traded) exist.
Markets work by placing many interested sellers in one “place”, thus making them easier to find for prospective buyers. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market Financial System . Finance Financial markets facilitate : The raising of capital (in the capital markets); The transfer of risks (in derivatives market)and; International trade (in the currency markets). IMPORTANCE OF INDIAN FINANCIAL MARKET Contributes to economic growth and development. Intermediates resources from savers to investors. Promotes saving of economy. Effective channel for transmitting financial policies. Important for raising funds. TYPES OF FINANCIAL MARKET 1. CAPITAL MARKET which consist of:- ) Stock market-provides financing through issue of shares and subsequent trading thereof. ii) Bond market-provides financing through issue of bonds and subsequent trading thereof 1. COMMODITIES MARKET-Provides trading of commodities like gold, silver, copper etc 2. MONEY MARKET-provides short term debt and financing, like certificates of deposits,treasury bills etc. 3. DERIVATIVES MARKET-Provides medium for management of financial risk. 4. Futures market-provides forward contracts for trading products at future date. 5. INSURANCE MARKET- Compensates your risk against loss of fire, theft etc 6. FOREIGN EXCHANGE MARKET-Facilitates trading of foreign currency. TYPES OF INVESTMENT
Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Shares of such stock are called “convertible preferred shares”. STOCK DERIVATIVES.
A stock derivative is any financial instrument which has a value that is dependent on the price of the underlying stock. Futures and options are the main types of derivatives on stocks. The underlying security may be a stock index or an individual firm’s stock, e. g. single-stock futures. Stock futures are contracts where the buyer is long, i. e. , takes on the obligation to buy on the contract maturity date, and the seller is short, i. e. , takes on the obligation to sell. Stock index futures are generally not delivered in the usual manner, but by cash settlement. futures have unlimited profit and unlimited loss A stock option is a class of option.
Specifically, a call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell stock in the future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative. in options there is limited risk and unlimited profit. In call option: Spot price(nifty index)strike price BOND In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.
Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditureBonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in the company (i. e. , they are owners), whereas bondholders have a creditor stake in the company (i. e. , they are lenders). Another difference is that bonds usually have a maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is a perpetuity (i. e. , bond with no maturity). DEBENTURE
A debenture (also called a note) is an unsecured corporate bond or a corporate bond that does not have a certain line of income or piece of property or equipment to guarantee repayment of principal upon the bond’s maturity. Debentures are long-term debt instrument used by large companies to obtain funds.. A corporations receives an advantage when it issues debentures (as opposed to issuing secured corporate bonds) because it means that the company does not have to set aside certain assets or income in order to guarantee against its default in paying back the principal at maturity. Therefore, a corporation that issues debentures may use those assets or funds that would otherwise be held a separate account for other financing activities.
Debentures are generally freely transferable by the debenture holder. Debenture holders have no voting rights and the interest given to them is a charge against profit in company’s financial statements. MUTUAL FUND A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. Since 1940, there have been three basic types of investment companies in the United States: open-end funds, also known in the US as mutual funds; unit investment trusts (UITs); and closed-end funds..
However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended investment companies (OEICs), unitized insurance funds, and undertakings for collective investments in transferable securities (UCITS). example are: Open-end fund The term mutual fund is the common name for what is classified as an open-end investment company by the SEC. Being open-ended means that, at the end of every day, the fund issues new shares to investors and buys back shares from investors wishing to leave the fund. Mutual funds must be structured as corporations or trusts, such as business trusts, and any corporation or trust will be classified by the SEC as an investment company if it issues securities and primarily invests in non-government securities.
An investment company will be classified by the SEC as an open-end investment company if they do not issue undivided interests in specified securities (the defining characteristic of unit investment trusts or UITs) and if they issue redeemable securities. Funds of funds Funds of funds (FoF) are mutual funds which invest in other underlying mutual funds (i. e. , they are funds comprised of other funds). The funds at the underlying level are typically funds which an investor can invest in individually. A fund of funds will typically charge a Management fee which is smaller than that of a normal fund because it is considered a fee charged for asset allocation services.
The fees charged at the underlying fund level do not pass through the statement of operations, but are usually disclosed in the fund’s annual report, prospectus, or statement of additional information. The fund should be evaluated on the combination of the fund-level expenses and underlying fund expenses, as these both reduce the return to the investor. Trading in stock market Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry.
This type of auction is used in stock exchanges and commodity exchanges where traders may enter “verbal” bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders at computer terminals. Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any bid price or ask price for the stock. ) When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price.
The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real). The exchanges provide real-time trading information on the listed securities, facilitating price discovery OVERVIEW OF STOCK MARKET A stock market is a marketplace where organised exchange (buying and selling) of stocks or equities takes place. Indian stock markets are one of the most dynamic and efficient stock markets in Asia. the Indian stock markets are at par with international standards. The two national exchanges operating in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
These exchanges are well equipped with electronic trading platforms and handle large volume of transactions on a daily basis. Function and purpose FUND RAISING The stock market is one of the most important sources for companies to raise money. This allows businesses to go public, or raise additional capital for expansion. LIQUIDITY The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate. CREATES POSITIVE SENTIMENTS History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or an indicator of social mood.
Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Thus also affect the wealth of households and their consumption. CLEARING HOUSE FOR SAFE OPERATIONS Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment.
In this way the financial system contributes to increased prosperity. TRANSPARENT SYSTEM The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE’s On Line Trading System (BOLT) is a proprietary system of the Exchange and is certified. The surveillance and clearing
Cite this The Study of Business Marketing
The Study of Business Marketing. (2018, Mar 01). Retrieved from https://graduateway.com/the-study-of-business-marketing/