edelweiss susnat
TRANSCRIPT
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SALES AND DISTRIBUTION STRATEGIES OF
EDELWEISS BROKING LTD.
Presented by
Susnat Pradhan
PGPIB-03
011103017
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Welcome To Edelweiss
The answers to most questions lurk in the shadows;
all but invisible to the untrained eye. What is needed
is Light!And Edelweiss is a powerhouse of Financial
Innovation illuminating both the
solutions and the perils!
As one of the fastest growing investment bankingand financial services company in India, Edelweiss
exists to Innovate!
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Started its journey in Mumbai , in the year 1995, by two IIMgraduates, Mr. Rajesh Shah andMr. Venkat Ramaswami .
The Logo: is based on a rare flower found in Switzerland; Agraphic flower that represents Ideas; Around it the protectivearms of the letter E.
Edelweiss believes ideas create Wealth, but values protect it. It is the practice of this core thought that has led to Edelweiss
becoming the one of the leading financial services company inIndia.
Ideas create , values protect
The slogan and depict the mission statement of Edelweiss group
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Wholesale Financing
Treasury
Asset Management Wealth Management
Insurance Broking
Private Client Broking
Institutional Equities
Investment Banking
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Mutual fund
Insurance
Arbitrage Structured product
Margin funding
Demat and trading account
IPO
Commodity related instruments
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Collection of data
Cold calling
References
Calling to those no and make appointment Visit to the customer and close the deal.
Filling the form and collect the data and submit to the office.
Giving a demo of the trading website and online tradingprocess to the customer .
During the process finding out the actual need of thecustomer, their satisfaction etc. and bring it into the focus ofthe company.
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STRENGTHS
OPPORTUNITIES
WEAKNESS
THREATS
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Strategic planning for sales
Program implementation
Evaluation & Control:Sales force Performance
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Create
direct
selling
process
Identify the
customer
Make
appointment
with customer
Give suitable
demo &pitch
Ensure
knowledge
about product
Ensure
increase in
crust value
After sales
serviceClose deal
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Seek the attention of the prospect client
Create desire in customers mind to buy the product
Induce the client to buy the product
ATTENTION
INTEREST
DESIRE
ACTION
Maintain the attention by creating interest
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Talking about the skills that a salesperson should posses, they are as
follows:
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Sales target- The sales team is given a fixed target which itneeds to achieve within a month.
Motivational Rewards- The team who performs the bestis given some rewards. This is to motivate others to
perform well and at the same time appreciate the hardwork done by the winning team.
Continuous Evaluation- the sales team has to appearin the evaluation conducted by the company to test theirmarket and product knowledge. This is done to ensure that
the company has the best sales force. Training Program- Team leaders are given training
regarding the product and market so that they can handlecustomer queries.
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A. Inbound Team
B. Sub Broker/ Remissor
C. Corporate AccountsD. Free Accounts
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Consumer profiling and investment need
analysis
25%
65%
10%
AGGRESSIVE CUSTOMER
Bond
Stock
Short term
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30%
50%
20%
MODERATE CUSTOMER
Bonds
Stock
Short term
50%
25%
25%
CONSERVATIVE CUSTOMERS
Bonds
Stocks
Short term
Result: Whether a person is aggressive, moderate or conservative the
determining factor is the investment he makes in the different sectors.If he is investing more in the stock market that means he is willing to
take risks and thus is an aggressive customer. A moderate customer
invests partially in stocks and partially in bonds and short term.
While a conservative person invests very less in the stock market.
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35%
14%11%4%
36%
WILING TO INCUR LOSS ON INVESTMET OF Rs.100
Rs. 1-5
Rs. 5-10
Rs. 10-20Above Rs. 20
Zero
Result: While classifying people under the three
categories, it was seen that most of the customers were
conservative i.e. they were not willing to take any risk when it
comes to investment. Only 4% people were aggressive and
ready to take risks to maximize their return.
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6%
8%
13%
7%
16%
17%
13%
Edelweiss ICICI Motilal Oswal HDFC Indiabulls Sharekhan Others
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Q. Through which of the channels do you usually buy a
financial product?
5%
75%
20%
Fig. 1
Internet
Broker
Directly from the
company
Result: This graph shows that broking business is a
profitable one as it attracts the large volume of potential
customers .
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Q. What is your preferable tool of investment?
36
7 5
25
5
22
0
10
20
30
40
Bank Deposit Real Estate Derevative
Instrument
Mutual Fund Gold &
Bullion
Equity Share
All Values in % Term
Result: When it comes to investing ones income 36% of the people
prefer to be on the safer side and avoid risk by investing in the bank
deposits.The next option is mutual funds as they are comparatively
risk free. Equity shares are the next best option .According to the
respondents. So it can be said that most of the people prefer risk-free
return. While a 22% of graph shows that equity shares are considered
as a good option by the investors due to their high return.
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Q. Are you aware of all the products offered by
Edelweiss?
0
20
40
60
0
Yes No
36
64
All values are in % term
Result: 64% of the people are not aware of the products offeredby the Edelweiss. In this category few of the respondents knew
about the equity share trading but were not aware of all the
products, while a large chunk of respondents had never heard of
Edelweiss.
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Q. Have you used any Edelweiss financial product?
21.56
7 .44
0
20
40
60
0
100
Yes No
All values are in % term
Result: In response to the question 78.44% of the
respondents said that they are not using any Edelweiss
product at present, so it gives a clear picture that there
is a huge untapped segment among which the product
needs to be pitched.
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Q. Which Edelweiss product are you using now?
45%
50%
5%
Fig.
Mutual fund
Demat
Other( structured
product)
Result: From the response it can be seen that Demat (equity
shares) is the highest selling product of Edelweiss followed
by mutual fund. Of the 21.56% of people using Edelweiss
products 50% prefer equity shares.
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Q. Best company according to the respondents
30%
21.44%
12%
4%7.56% 10% 6% 5% 4%
0%5%
10%15%20%25%30%35%
Fig.
Result: 30% of the respondents ranked ICICI Direct as the number oneshare trading company.This is mainly because of its good Brand Image
and linked bank account. Sharekhan is preferred for its customer friendly
approach and trading terminal. Still Edelweiss stands in the competition
and is preferred mainly because of its research facility.The company
needs to give attention to the Brand image building.
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Q. Factors affecting the choice of a company
2
3.56. 9
120
23
0
5
10
15
20
2530
Brand
image
Innovation Services Proximity
with
residance
Dealer
support
Advanced
R&D
Brokarage
All figuers in % term
Result: When it comes to the choice of the company the factor that
affects the decision to the largest extent is the Brand Image i.e. thereputation of the company.The best example is ICICI. Brokerage is the
second most important factor. Edelweiss has good research so it has the
capability of attracting customers. Of the above factors all are present
in Edelweiss except a good Brand Image in Kolkata, which it needs to
build.
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Q. Possible sources searched for financial product
information.
19%
21%
11%17%
32%
Fig.
Television/Radio
Internet
Newspaper/Magazine
Word of mouth
Friends
Result: Most of the respondents 32% trust their friends
advice when it comes to financial product information
especially in stock market.They trust on their experience with
the company and act accordingly.
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43%
38%
11%8%
Association with the company6 months 1 year 2 years more than 2 yers
Result: Most of the customers in Kolkata are newly
acquired as the company is new.
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11
49
32
8
Extremely satisfied Satisfied Neutral dissatisfied
Result: 49% of the customers are satisfied and 8%dissatisfied.The company needs to work on these
customers and minimize their dissatisfaction.
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34%
31%
22%
13%
Sales
Reduction in brokerage Improved service quality
Customer friendly norms More tips
Result: Most of the customers want the brokerage
to be reduced and services to be improved.
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11%7%
26%56%
Liquidity crisis Alternate brokerage firm
Lost faith in capital market Temporary breaks
Result: Because of the present turmoil in the stock market most of
the people have taken temporary breaks and are not trading, While
7% of the people have found alternate broking houses.
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43%
12%10%
32%
3%
Low brokerage Proximity to residence Trained people in desk
Good system support Good research
Result: Low brokerage is what attracts most of the customers.
Besides Edelweiss needs to improve its quality of service.
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73%
14%
5% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
6 month-1 year 2 years 2 years and more Never
Fig.
Result: 8% of the customers say that they will never
return back.
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From the analysis of the questionnaires and above
findings it can be concluded that Edelweiss approach
to sales and distribution strategies is right and its
innovation in the distribution channel by tie-up withretail shops will help it a lot.
When it comes to competitors ICICI is its biggest
competitor and the company lags behind when it
comes to Brand Image.
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Make the complaint process and complaintredressal process easy so that there is a scope ofimprovement.
There should be more number of brokers and sub-
brokers so that they can tap a large chunk of thecustomers.
The company should work on building Brandimage in Kolkata as it plays a major role when it
comes to taking decision about a company. The company needs to go for aggressive
advertisement campaign.
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Special training about company products tosales team so that they create awareness
among the people.
Bring student plan to attract the studentespecially from Engineering Medical and
MBA field to capture customer before others.
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REGIONAL HEAD
AREA SALES MANAGER
TEAM LEADERS
FIXED COST AGENT
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Best research and strategies available to all
retail customers (Edelstar ) .
Local dealer assigned to each customer. Theyhave fixed salary and no incentives.
Highly user friendly trading website+ 24*7
toll free no. + Mobile trading website.
No pool account.
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Lack of brand positioning.
Lack of branches.
New in retail segment.
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Broking business is profitable and attracts
large volume of potential customers.
High potential in rural market.
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Highly competitive market.
Intensive local brokers.
High volatility in the market.