share khan

A PROJECT REPORT ON

“Sales of Demat Cum Online Trading Account and Marketing Strategies of

Share khan.”

(FOR THE PARTIAL FULFILLMENT OF BACHELOR IN BUSINESS ADMINISTRATION AND FULL TIME GRADUATE DIPLOMA IN

BUSINESS MANAGEMENT)

At

SHAREKHAN SECURITIES PVT.LTD.

(Area Of Summer Training- Marketing/sales)

SUBMITTED BY:VIJAY KUMAR

Batch (2006-2008)

MAHARISHI DAYANAND UNIVERSITY(ROHTAK)

TABLE OF CONTENTS

Certificate

Acknowledgement

Executive summary

CHAPTER 1. INTRODUCTION

1.1 Introduction to the Topic

1.2 Objective of the Study

1.3 Job description

CHAPTER 2. COMPANY PROFILE

2.1 About the Company

2.2 Company Profile

2.3 Share khan Business

LITERATURE REVIEW

Introduction of the product

2.4 Types of product and features

2.5 Process of DMAT A/C

2.6 Documentation

2.7 Product charges

2.8 Sharekhan services

2.9 Closure of an Account

CAPTER 3 REARSEARCH METHODOLOGY


3.1 Data collection Secondary data

Primary data

3.2 Tools and techniques

3.3 limitations

CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN

4.1 Marketing Strategies

4.2 Unique objectives of the company

4.3 Comparative analysis

4.4 SWOT Analysis

CHAPTER 5. OBSERVATIONS AND ANALYSIS

5.1 Data Analysis

5.2 Interpretation

CHAPTER 6. FINDINGS AND RECOMMENDATION

6.1 Findings

6.2 Recommendation.

CHAPTER 7. CONCLUSION

CHAPTER 8. RESULT

CHAPTER 9. BIBLIOGRAPHY


CERTIFICATE

This is to certify that Mr. VIJAY KUMAR student of MBA

“HINDU INSTITUTE OF MANAGEMENT SONEPAT”, has carried out

project work on the topic of “sales” of Demat Cum Online Trading

Account and marketing strategies of Sharekhan securities pvt. Ltd. under my

guidance is his original work done. He has put a lot of efforts, hard work and

has patience to convince customer and also fulfill his secondary objective.

He has done good work with us I wish him all the best for bright future.

Summer Trainee Project Guide

VIJAY KUMAR AMIT PAL SINGH

REGIONAL SALES MANAGER

Sharekhan Securities Pvt. Ltd.


CERTIFICATE OF ATTENDENCE

This is to certify that Mr VIJAY KUMAR, who was engaged in the summer project

in my Organization, has been regular and punctual. He has attended the training

from

1st june to 31st july.

Mr AMIT PAL SINGH

REGIONAL SALES MANAGER


ACKNOWLEDGEMENT

A project is never the work of an individual. It is moreover a combination

of ideas, suggestions, review, contribution and work involving many folks.

It cannot be completed without guidelines.

First of all I would like to express my sincere gratitude to my Programe

Director to make this project Mrs. SHUCHI GOYAL for giving me the

opportunity to make this project.

My sincere regards to my Project guide Mr. AMIT PAL SINGH for his

invaluable guidance and encouragement through out this project.

Last but not the least my sincere thanks to all the faculty

members of “AIM” and my Sr, Sales executive and Team members

for providing their help and advice whenever it was need

VIJAY KUMAR

EXECUTIVE SUMMARY


Conceptually the mechanism of stock market is very simple. People who

are exposed to the same risk come together and agree that if anyone of the person

suffers a loss the other will share the loss and make good to the person who lost.

The initial part of the project focuses on the sales of types of the products of

the company, and also focuses on the acquisition of the customer. The job profile

is to create customer, making good relationship with them to have their references

and motivating them to trade for the company benefit and their profit.

It also enlightens the readers about the Sharekhan strategies to acquire the

customer base. Further the project tells us about the profile of the company

(SHARE KHAN). It provides knowledge to the readers about the company’s

history, mission, customer base and about the company in detail. and management

of the company. Also it gives special emphasis on the selling of products and

management of the company. Also it gives special emphasis on the selling of

products.

The next chapter is devoted to study the comparative analysis of the

competitors and the SWOT analysis, which tells about the Sharekhan edge over its

competitors. This project leads us towards the job descriptions and difficulties

faced by me.


The next part of the project throws light upon my findings and analysis about the

company and the suggestions for the company for better performance.

During this project I have been given the responsibility of creating customer

bringing HNI customer, handling team, generating leads.


CHAPTER 1. INTRODUCTION

INTRODUCTION OF THE TOPIC

The topic is to study the consumer preference towards investment in stock market.

DEMAT A/C is a pool of various scripts and securities, where as online trading

A/C is a tool of purchasing/ selling of shares or scripts online. These scripts are

then transferred to DP i.e. Depository account after three days.

This topic includes the practical experience of selling company product that is

followed by studying the consumer preference or interest towards share market.

This is a market, which is uncertain some time it gives huge profit and also vice

versa; it depends up on the investment customer made. This is a better option to

have better returns on the investments then investing in banks, mutual fund or

bonds et. But risk is high in this case.

This product offers customer two type of investment option INTRADAY and

DELIVERY both has there own benefits and limitation but a better way to have

more returns on investment. Intraday means investing in share market for a day i.e.

purchasing and selling of the share in one day. Delivery is purchasing share and

selling those shares next day. The charges that company charge in terms of

brokerage is different in both the cases.


OBJECTIVE OF THE STUDY

1) Main objective

The main objective is selling of the DMAT Account cum Online

Trading Account.

2) Specific Objective

A) Creating customer;

B) Marketing of the product;

C) Creating relationship with the customer to have there sources;

D) Motivating customer for trading;

JOB DISCRIPTION

The company placed me as a Summer Trainee. I have been handling the

Following responsibilities:

Ø My job profile is to sale of product of the organization.

Ø My job profile is to coordinate the team and also help them to sale the product and

also help them in field.

Ø My job profile is to generate the lead by cold calling.

Ø My job profile is to understand customers’ needs and advising them to make a

portfolio as per their investment.

Ø My job profile is to do sales promotion through e-mails, canopies, making cold

calling, distributing pamphlets and etc.

Ø My job profile is to convince customer for investment in Commodity.

AREA ASSIGNED


I covered areas like Delhi, Gurgaon, Ghaziabad, Faridabad and NCR.

TARGET ASSIGNED

Ø To sell 15 accounts per month.

TARGET MARKET

Ø Different properties dealers.

Ø Charted accountants.

Ø Lawyers

Ø Travel agencies

Ø Transport business

Ø House wives

Ø Businessmen

Ø Corporate employees etc.

DAY TO DAY JOB EXPERIENCE

· Reporting time: 9.30 AM

· Fixing appointment with clients.

· Visit clients place.

· Demonstrate the product on Internet to the client.

· Completing the formalities like filling the application form and documentation.

· Cold calling.


CHAPTER 2. COMPANY PROFILE

ABOUT THE COMPANY

SHAREKHAN RETAIL BROKING

• Among the top 3 branded retail service providers (Rs 650 crs avg daily volume-

Apr Dec’04

• No. 2 player in online business

• Largest network of branded broking outlets in the country servicing 4,00,000

clients.

MANAGEMENT TEAM


The company has an eighty years experience in brokering business it was earlier known

as SSKI Group. The owner of the company is Mr. SHRIPAL MORKHIYA sharekhan

is one of the leading retail brokerage firms in the country. It is the retail broking arm of

the Mumbai-based SSKI Group, which has over eight decades of experience in the stock

broking business. Sharekhan offers its customers a wide range of equity related services

including trade execution on BSE, NSE, Derivatives, depository services, online trading,

investment advice etc. The firm’s online trading and investment site-

www.Sharekhan.com-was launched on Feb 8, 2000. The site gives access to superior

content and transaction facility to retail customers across the country. Known for its

jargon-free, investor friendly language and high quality research, the site has a registered

base of over 4 lakh customers. The number of trading members currently stands at over 3

Lacs. While online trading currently accounts for just over 1 per cent of the daily trading

in stocks in India, Sharekhan alone accounts for 22 per cent of the volumes traded online.

The content-rich and research oriented portal has stood out among its contemporaries

because of its steadfast dedication to offering customers best-of-breed technology and

superior market information.

The firm’s online trading and investment site-www.Sharekhan.com-was launched on Feb

8, 2000. The site gives access to superior content and transaction facility to retail

customers across the country. Known for its jargon-free, investor friendly language and

high quality research, the site has a registered base of over 4 lakh customers. The number

of trading members currently stands at over 3 Lacs. While online trading currently

accounts for just over 1 per cent of the daily trading in stocks in India, Sharekhan alone

accounts for 22 per cent of the volumes traded online.


The content-rich and research oriented portal has stood out among its contemporaries

because of its steadfast dedication to offering customers best-of-breed technology and

superior market information. The objective has been to let customers make informed

decisions and to simplify the process of investing in stocks.

On April 17, 2002 Sharekhan launched SpeedTrade, a net-based executable application

that emulates the broker terminals along with host of other information relevant to the

Day Traders. This was for the first time that a net-based trading station of this caliber was

offered to the traders. In the last six months SpeedTrade has become a de facto standard

for the Day Trading community over the net.

Sharekhan’s ground network includes over 250 centres in 123 cities in India, of which 20

are fully-owned branches.

Sharekhan has always believed in investing in technology to build its business. The

company has used some of the best-known names in the IT industry, like Sun

Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,

Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading

engine and content. The Morakhia family holds a majority stake in the company. HSBC,

Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group ventured into

institutional broking and corporate finance 18 years ago. Presently SSKI is one of the

leading players in institutional broking and corporate finance activities. SSKI holds a

sizeable portion of the market in each of these segments. SSKI’s institutional broking arm


accounts for 7% of the market for Foreign Institutional portfolio investment and 5% of all

Domestic Institutional portfolio investment in the country. It has 60 institutional clients

spread over India, Far East, UK and US. Foreign Institutional Investors generate about

65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The

Corporate Finance section has a list of very prestigious clients and has many ‘firsts’ to its

credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1

billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat

Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop.\


From sharekhan.com to India’s largest chain of branded retail share

Shops

250 branded share shops across 110

cities in India

Sharekhan Business

1 Brokering business

2 White feathering house production

Vision

To be the best retail brokering Brand in the retail business of stock market.

MissionTo educate and empower the individual investor to make better investment decisions

through quality advice and superior service.

STOCK EXCHANGE MUMBAI


Sharekhan is the retail broking arm of SSKI, an organization with more than

eight decades of trust & credibility in the stock market.

• Amongst pioneers of investment research in the Indian market

• In 1984 ventured into Institutional Broking & Corporate Finance.

• Leading domestic player in Indian institutional business

• Over US$ 5 billion of private equity deals

SSKI Group Companies

• SSKI Investor Services Ltd (Sharekhan)


• S.S. Kantilal Ishwarlal Securities

• SSKI Corporate Finance

• I dream Productions

SSKI – Corporate Structure


SSKI Securities Pvt. Ltd.

Morakhia Family & Associates100%

Owns 56% of

SSKI INVESTOR SERVICES PVT. LTD.

Retail broking arm of the groupShareholding pattern:

55.5% Morakhia family (promoters) 18.5% HSBC Private Equity India

Fund Ltd18.5% First Carlyle Ventures,

Mauritius7.5% Intel Pacific Inc.

Owns 50.5% of

SSKI CORPORATE FINANCE PVT. LTD.

Investment Banking arm of the group

Shareholding pattern:50.5% SSKI Securities Pvt. Ltd.

49.5 % Morakhia family

LITERATURE REVIEW

GENERAL INTRODUCTION

DP (Depository Participants)

As an investor you open a securities account with a DP. DPs are attached to the

depositories very much the same way as commercial banks are attached to RBI . All

interactions including account opening, dematerialization, transactions, pledge etc are

done through the DP.

Reasons to chose DP

You can select your DP to open a demat account just like you select a bank for opening a

savings account. Some of the important factors for selection of a DP can be:

Convenience: proximity to the office/residence, business hours.

Comfort: reputation of the DP, past association, range of services etc. Find out if the DP

is in a position to give the specific service you may need.

Cost: the service charges levied by DP and the service standard.

Dematerialization

The dematerialization system is an alternative to the physical existence of securities. In this

system securities are converted into the electronic form and deposited in a depository

account in the investors name.

In order to dematerialize certificates, an investor will have to first open an account with a

DP and then request for the dematerialization of certificates by filling up a

Dematerialization Request Form (DRF), which is available with the DP, and submitting the


same along with the physical certificates. The investor has to ensure that before the

certificates are handed over to the DP for demat, they are defaced by marking "Surrendered

for Dematerialization" on the face of the certificates.

Procedure for selling dematerialized securities

The procedure for selling dematerialized securities in stock exchanges is similar to the

procedure for selling physical securities. Instead of delivering physical securities to the

broker, you instruct your DP to debit your account with the number of securities sold by

you and credit your broker's clearing account. This delivery instruction has to be given to

your DP using the delivery instruction booklet received from the DP at the time of

opening the account. The procedure for selling securities is given here below:

· Investor sells securities in any of the stock exchanges linked to NSDL through a

broker.

· Investor gives instruction to DP to debit his account and credit the broker's

(clearing member pool) account.

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

clearing corporation.

· The broker receives payment from the stock exchange (clearing corporation).

· The investor receives payment from the broker for the sale in the same manner

payment is received for a sale in the physical mode.

NSDL


Although India had a vibrant capital market, which is more than a century old, the

paper-based settlement of trades caused substantial problems like bad delivery and

delayed transfer of title till recently. The enactment of Depositories Act in August 1996

paved the way for establishment of NSDL, the first depository in India. This depository

promoted by institutions of national stature responsible for economic development of the

country has since established a national infrastructure of international standard that

handles most of the trading and settlement in dematerialized form in Indian capital

market. Using innovative and flexible technology systems, NSDL works to support the

investors and brokers in the capital market of the country. NSDL aims at ensuring the

safety and soundness of Indian marketplaces by developing settlement solutions that

increase efficiency, minimize risk and reduce costs. At NSDL, we play a quiet but central

role in developing products and services that will continue to nurture the growing needs

of the financial services industry.

In the depository system, securities are held in depository accounts, which is more or less

similar to holding funds in bank accounts. Transfer of ownership of securities is done

through simple account transfers. This method does away with all the risks and hassles

normally associated with paperwork. Consequently, the cost of transacting in a

depository environment is considerably lower as compared to transacting in certificates.


http://www.nsdl.co.in/about/shareholder.html

http://www.nsdl.co.in/about/milestone.html

TYPES OF THE PRODUCTS

CLASSIC ACCOUNT

This account allows the client to trade throuhg our website www.sharekhan.com and

is suitable for the retail investor who is risk-averse and hence prefers to invest in stocks

or who do not trade too frequently.

Features Classic screen serves hot

Online trading account for investing in Equity and Derivatives via

www.sharekhan.com

· Integration of On-line trading, Saving Bank and Demat Account.

· Instant cash transfer facility against purchase & sale of shares.

· Competitive transaction charges.


http://www.sharekhan.com/

http://www.rediffmail.com/cgi-bin/red.cgi?red=http%3A%2F%2Fwww.rediffmail.com%2Fcgi-bin%2Fred.cgi%3Fred%3Dhttp%253A%252F%252Fwww%252Esharekhan%252Ecom%252F%26amp%3BisImage%3D0%26amp%3BBlockImage%3D0&isImage=0&BlockImage=0

· Instant order and trade confirmation by E-mail.

· Streaming Quotes.(Cash & Derivatives)

· Personalized market watch.

· Single screen interface for Cash and derivatives and more.

· Provision to enter price trigger and view the same online in market watch.

SPEEDTRADE :-

SPEEDTRADE is an internet-based software application that enables you to buy and

sell in an instant.

It is ideal for active traders and jobbers who transact frequently during day's session to

capitalize on intra-day price movement.


Customer can fast trade then the classic product

Features

· Instant order Execution and Confirmation.

· Single screen trading terminal.(NSE)

· Real-time streaming quotes, tic-by-tic charts.

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

· Hot keys similar to brokers terminal.

· Alerts and reminders.

· Back-up facility to place trades on Direct Phone lines.


Customer can view 425 scripts at a time

Customer can view graphical presentation

PROCESS ON ACCOUNT OPENING

LEAD MANAGEMENT SYSTEM (LMS)/ REFERENCES

CONTACT

TELEPHONE AND PERSONAL VISIT

APPOINMENT

DEMONSTRATION

AGREE DISAGREE

DOCUMENTATION

FILLING THE FORM

SUBMISSION THE FORM

LOGIN OF THE FORM

SENDIND ACCOUNT OPNING KIT TO CUSTOMER

TRADING

DOCUMENTS:

1) Photo ID Proof


NO

2) Residence Proof (Permanent)

· Passport

· Pan Card

· Driving Licence

· Voter's ID

· MAPIN UIN Card

· Passport (valid)

· Voter's ID

· Driving Licence (valid)

· Bank Statement (latest)

· Telephone Bill (latest)

· Electricity Bill (lates)

· Ration Card

· Flat Maintanance Bill (latest)

· Insurance Policy (latest)

· Leave-Licence/Purchase Agreement

3) Residence Proof (Correspondence)

· Passport (valid)

· Voter's ID

· Driving Licence (valid)

· Bank Statement (latest)

· Telephone Bill (latest)

· Electricity Bill (lates)


· Ration Card

· Flat Maintanance Bill (latest)

· Insurance Policy (latest)

· Leave-Licence/Purchase Agreement

4) Two Photographs (Passport size)

ACCOUNT OPPENING CHARGES:-

1 For classic account Cheque of Rs. 750/= In Favour of M/s S.S.Kantilal Ishwarlal

Securities Pvt. Ltd. or Rs. 500/= or 350/= in case of corporate offer.

Or

1 For Speedtrade Account Cheque of Rs. 1000/= In Favour of M/s S.S.Kantilal

Ishwarlal Securities Pvt. Ltd.

ACOUNT OPENING CHARGES COMPARISION


Charge Classic Account Speedtrade Account

Account

Opening

Rs. 750/= Rs. 1000/=

Brokerage

Intraday-0.10%

Delevery-0.50% on

conversation with rahim

not general

Intrady-0.10%

Delevery-0.50%

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

*Taxes as per govt.

Depository Charges

Account Opening Charges Rs. NIL

Annual Maintenance Charges Rs. NIL first year

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


Brokerage: 0.10 % Plus Taxes for Each leg of Intra-day trade 0.50 % Plus Taxes for

trades resulting in delivery Minimum Brokerage Intra Day Per Share: 5 Paisa each

leg (buy or sell) for Intra-day Trades (For eg on a Rs 20 Scrip, brokerage @0.1% = 2 p,

but there is a min chargeable amt of 5 p).


SHARKHAN SERVICES

Dial-N-Trade

Along with enabling access for your trade online, the CLASSIC and SPEEDTRADE

ACCOUNT also gives you our Dial-n-trade services. With this service, all you have to

do is dial our dedicated phone lines 1-800-22-7500.

IPO ON-Line

Can apply all the forthcoming IPO online hasselfree.

Research tips

Company provide 4-6 e-mails to there customers per day

Online trade in shares

Sharekhan customers can online trade through there computers, through Internet during

the market timings

Online fund transfer

We have tie up with seven banks for online fund transferring i.e. ICICI , HDFC, IDBI,

CITI, UBI, OBC, INDUSIND and UTI bank for online money transfer.

Ø Research Based Investment Advice

Ø Investment and Trading Services


Ø Training and Seminars

Ø Technology Based Investment Tools

Ø Integrated Demat Facility

Ø COUSTOMRE CAN TRADE IN

Equities, Derivative, Commodities


CLOSURE OF ACCOUNT

1. CLOSURE ON CLIENT’S REQUEST

A DP can close a depository account on receipt of an application in the prescribed format.

The application should be made by the account holder or by all the joint-holders. An

account can be closed only when there is no balance in the account. In case there is any

balance in the account sought to be closed, the following steps are necessary.

(a) Re-materialization of all securities standing to the credit of the account at the time of

making the application for closure; or

(b) Transferring the balance to the credit of another account opened by the same account

holder(s) either with the same participant or with a different participant. Before closing

the account the DP should ensure that all pending transactions have been settled. The

request for closure should be processed only after ensuring that there is unbalance lying

in the account.

2. CONSOLIDATION OF ACCOUNT

Some clients could have opened multiple accounts to dematerialize their shares held in

multiple combination and sequence of names. However, they may not need so many

accounts after they have dematerialized their shares and may want to bring all their share

holdings into one or fewer accounts. This can be achieved by using normal off market

transfer instruction.

3.CLOSURE BY DP

The DP may also initiate closure of a client's account if the client has defaulted in

performing its obligations laid out in the client-participant agreement. The participant

should give sufficient notice to the client before initiating closure of his account. The


notice should clearly state the reasons for closure of account. The process of closing

account in such a case is the same that of client-initiated closure.

CLOSURE /SHIFTING OF CLEARING ACCOUNT

A clearing member may transfer its clearing account from one DP to another DP. For

this, simultaneously applications have to be made for closure of account to the earlier DP

and for opening of new clearing member account to the new DP. On receipt of the

application, the new DP forwards the application to the depository for approval and

allotment of a new CM-BP-ID. Once the new CM-BP-ID is allotted, the new DP opens a

New clearing account and intimates the depository about the new client-ID. On receipt of

intimation from the new participant, the depository advises the old DP to close the

account. The old DP then closes the account and intimates the clearing member. All

payout of securities, subsequent to closure of old clearing account, take place in the new

account.


CAPTER 3 REARSEARCH METHODOLOGY

REAEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with logic behind him. Why a research study has been undertaken, how a research

problem has been defined, in what way and why the hypothesis has been formulated,

what data have been collected and what particular method has been adopted, why

particular technique of analyzing data has been used and a host of similar other questions

are usually answered when we talk of research methodology concerning a research

problem or study.

RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and

analysis of in a manner and aims to combine relevance to the research purpose with

economy in procedure. In fact the research design is the conceptual structure within

which research I conducted. Research design is needed because it facilitates the smooth

sailing of the various research operations thereby making research as efficient as possible

yielding maximum information with minimal expenditure of effort, time and money.

I have adopted descriptive and conclusive research design. Descriptive research is those

studies, which are concerned with describing the characteristics of a particular individual

or a group. Since the aim is to obtain the accurate information about the customer in

terms of his interest towards investment in stock sector. I have used the techniques of

questioning customer in order to know their consumer behavior, their interests, their

needs and etc.


It is very important for the sales executive to study the mind of the customer so that the

personal visit would not be a waste of time, money and efforts.

DATA SOURCES:

The researcher can gather primary data, secondary data or both. Secondary

data are data that were collected for another purpose and already exist somewhere.

Primary data are data specially gathered for a specific purpose or for a specific research

project. When the needed data do not exist or are outdated, inaccurate, incomplete, or

unreliable, the researcher will have to collect primary data. Most marketing research

projects involve some primary data collection.

PRIMARY DATA:

I have collected primary data through personal references;

LMS i.e. Leads management system of the company;

Customer references;

SECONDARY DATA:

The main source of information for the project was

Ø Weakly magazine;

Ø Telephone directory

Ø Used leads of the company;

Ø Leads of the other company; i.e. telephone list for tele calling;

CONTACT METHOD:

The marketing researchers have four choices to contact the

respondents:


ü Mail,

ü Telephone,

ü Personal and

ü Online. I chose the above techniques to reach to the customer in a

most convenient method.


LIMITATIONS

· Lack of awareness of Sharekhan and stock market:

Since the area is not known before it takes lot of time in convincing people to start

investing in shares primarily in IPO’s.

· Some people are comfortable with traditional system:

As people are doing trading from there respective brokers, they are quite comfortable

to trade via physical form of paper, they want to trade off line, i.e. through telephone

or etc.

· Lack of Techno Savvy people and poor internet penetration:

Since most of the people are quite experienced and also they are not techno savvy.

Also Internet penetration is poor in India.

· Some respondents are unwilling to talk:

Some respondents either do not have time or willing does not respond, as they are

quite annoyed with the phone call.

· Inaccurate Leads:

Sometimes leads are provided which had error in it, which varies from only 5-digit

phone number to wrong phone number, some people have registered to know about

their personal quarries. They are the unsatisfied clients of the company.

· Misleading concepts:

Some people think that as all the shares are in electronic form and they don’t have

any physical proof. Sometimes this leads to a great misconception of the entire

process.


CHAPTER 4. MARKETING STRATEGIES OF SHAREKHAN

Marketing strategy?

A strategy that focuses on developing a unique long-run competitive position in the

market by assessing consumer needs and the firm's potential for gaining a competitive

advantage.

· A business’ approach to marketing its products/ services expresses in broad terms,

which forms the basis for developing a marketing plan.

· Marketing starts with market research, in which needs and attitudes and

competitors' products are assessed, and continues through into advertising,

promotion, distribution, and, where applicable, customer servicing and repair,

packaging, and sales and distribution.

· The broad marketing thinking that will enable an organization to develop its

products and marketing mixes in the right direction, consistent with overall

corporate objectives.

MARKETING STRATEGIES OF THE COMPANY

v Tele Calling: -


The company uses the tele calling/ phone calling to reach the

customer, which are interested. This is the most important technique to save time

and giving demo of the companies product through making call in order to know

the customer interest towards the product. This is the strategy with which one can

motivate customer to go for the product and etc.

v LMS:

It is leads management system which means leads are generated by

the customer who want to purchase the product of the company. Company

provide facility to the customer on online to fill the registration form through

which the companies executives can provide more information to the customer.

v Yellow Pages:

Yellow pages are used to gather data for making calls so that

customer who did not fine time and are unaware of the product can know about

the product. Customers are given freedom to ask question related to the products

this is the technique used to increase the awareness of the company.

v Canopy’s:

This is the most important technique used by sharekhan securities to market its

product in different areas of the city, company put their canopies and customer

who are willing to know about the product come forward and provide best of their

knowledge. Besides this companies executives ask customer to fill the

questionnair that tells the company about the levels of brand awareness. It also

increases the product awareness because it is generally put at the crowdies places

like near main markets, cinema s, hotels, ATM or etc where people come in good

numbers.


v Direct Marketing

Sharekhan executive’s reaches to the does of the customer by

fixing appointments with the interested customer, they describe the details of the

product. Executive give demonstration of the products so that customer can

understand better.

v Advertising:

Advertising is the most important tool of increasing awareness of

the product and this is the most widely used technique by the company to tell

about the new features and new lunch by giving briefing of the product.

Sharekhan use banners, distribution of pamphlets, and advertisement in

newspapers, magazines.

v References:

Sharekhan strategy is to satisfy the customer in terms of their need by

providing them timely services and knowledge about the trade in equities, mutual

funs by giving tips for investment advises through e-mails or toll free calls for this

purpose customers are provided relationship manager who give investment advise

and also make transaction on their behalf on demand. B satisfying customer

executives ask their references that not only increase the awareness but also

increase the good will of the company.

v Competitiveness:

The company is innovative and uses the latest

technology to improve the product to fulfill the demands of the customers.


Sharekhan make it easy for the customer to make online transaction of shares. The

company is competitive in terms of the product price and facilities it offers to the

customer.

v Internet:

Company provides detailed information about the products on Internet

so that customer can know about the product easily and completely.

UNIQUE OBJECTIVE OF THE COMPANY

• 200000+ retail customers being serviced through centralized call centre / web

solution

• 60 branches, semi branches servicing affluent/aggressive traders through highly

skilled financial advisors

• 250 independent investment managers/franchisees servicing 50000 highly valued

clients

• Strong advisory role through Fundamental & technical research

• New initiatives - Portfolio Management Services & Commodities trading.

• Dealing in mutual funds.


COMPETITOR ANALYSIS

5PAISE.COM

Company Background

Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-

broking was started under the brand name of 5 paisa.com. Apart from offering online

trading in stock market the company offers mutual funds online. It also acts as a

distributor of various financial services i.e GOI securities, Company Fixed Deposits,

Insurance. Limited ground network, present in 20 Cities

Charges for Demat:

•Demat 1st Yr: Rs 250

Pricing for HNI Clients

•Demat 1st Yr: Rs 250

KOTAK STREET

Company Background

Kotakstreet is the retail arm of kotak securities. Kotak Securities limited is a joint venture

between Kotak Mahindra Bank and Goldman Sachs, Pricing For Kotak


•Demat charges:

Rs 22.5 p.m

INDIABULLS

Company Background

India Bulls is a retail financial services company present in 70 locations Covering 62

cities. It offers a full range of financial services and Products ranging from Equities to

Insurance. 450 + Relationship

Managers who act as personal financial advisors

•Demat Charges

: Rs 200 if POA is signed, No AMC for this DP

•POA for Clients DMAT

All shares held by client trading with IB are moved to IB Pool Account and the same is

shown as a reflection in client DP account. Charges are levied to move shares from IB

pool Account to client DP account

ICICI Direct


Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of

ICICI Bank Limited and the Website is owned by ICICI Bank Limited

Demat Charges:

NIL first years

500 per annum

HDFC SECURITIES

Company Background

The HDFC BANK, HDFC and Chase Capital Capital Partners and their associates

promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the

largest team of Tele-brokers

DEMAT ACCOUNT WITH HDFC:-

· It is conversion of physical shares into electronic form.

· Dematerialization charges


· Rs. 3 per share certificate

· Rs. 35 per request.

· Folio charges are Rs.150 per annum.

· Buying and selling transaction through brokers –Charges are 0.05% of transaction

value

Off market transactions charges - 0.04% of transaction value

CHARGES FOR DEMAT ACCOUNT

First year: NIL,

Yearly charge: 450 per year

SWOT ANALYSIS


A SWOT analysis focuses on the internal and external environments, examining strengths

and weaknesses in the internal environment and opportunities and threats in the external

environment.

STRENGTHS

Services

As a product Sharekhan is a extremely innovative product with very less cost.

Services like online trading facility, institutional and domestic broking, customized

research reports with almost 80% efficiency etc give Sharekhan an edge over its

competitors. Sharekhan provides other support services that make retail investors more

confident and assured with their trading. SMS alerts (allowing traders and investors to

make the most of the available opportunities), Softer, intangible features like imagery,

equity driving preference. Through efficient trading processes Investors can place their

orders directly on the Internet, do all the information seeking and basically own the

investing process.

Distribution Network

Sharekhan with almost 250 branches spread across 123 cities beefed up by

comprehensive online research, advice and transaction services. In near future expect to

make 200000+ retail customers being serviced through centralized call centre / web

solution,


60 branches/semi branches servicing affluent/aggressive traders through highly skilled

financial advisors, 250 independent investment managers/franchisees servicing 50000

highly valued clients, strong advisory role through Fundamental & technical research and

new initiatives are being made in Portfolio Management Services & Commodities

trading.

Marketing

Sharekhan is a product of SSKI, a veteran equities solutions company with over

decades of experience in the Indian stock markets. Sharekhan does not claim expertise in

too many things. Share khan’s expertise lies in stocks and that's what it talks about with

authority. So when he says that investing in stocks should not be confused with trading in

stocks or a portfolio-based strategy is better than betting on a single horse, it is something

that is spoken with years of focused learning and experience in the stock markets.

Products

Company’s product line is quite flexible in the sense that there is a product for every kind

of investors. Also all the products cover all the loopholes of all the products offered by

the other competitors like low cost, user-friendly online trading services etc.

WEAKNESS

Customer Satisfaction

As far as customer satisfaction goes Sharekhan has to tighten their socks. Many broking

house catering to heavy investors or small segment of the market can afford to and does

provide relationship managers for their customers, who can understand the trading needs

of individual customers, and advise accordingly. However, a broking house like


Sharekhan, which caters to the mass segment, is in no position to provide relationship

managers for individual customers.

Branding

Though the company has a efficient products but large part of investment interested

population does not know the company. The most basic expectation for a trader or

investor when one begins trading is that one must get timely delivery of shares and

proceeds from sale of shares. Also ones cash balances with the broker must be safe and

secure. Though this confidence in the broker comes with time and experience, good and

transparent practices also play a major role in imbibing confidence in traders.

Competition from banks

Most of the banks due to good branding have the faith of the customers of their

banking database. So they enjoy the liberty of huge database and customers find it more

reliable to trade there rather than with a unknown broker. Also banks like HDFC Bank

and ICICI Bank have the advantage of linking the trading accounts of their customers to

saving accounts. This makes trading easier, and at the same time a trader withdraws

exactly as much money from his account as is needed to complete the trade. Similarly

sales proceeds are credited directly to saving account.

OPPORTUNITIES

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

growth.

Ever-increasing market


After the NSE brought the screen based trading system stock markets are now more

secured which has attracted lot of retail investors and the demand is increasing day by

day. This has resulted in improved liquidity and heavy volumes on transactions.

Sharekhan is one of the early entrants here. As to how much it will roar and how swift it

can swoop on the market, the future alone can answer such queries. Sharekhan has been a

mega player and is known for being a mover of stocks. It is also known for putting big

deals through and enjoys good networking with the FIIs. It has been dynamic enough to

move with the times and capture the opportunities that the market throws up from time to

time.

Improving Technology

In country like India technology is always improving which gives the company a

chance to keep on improving their product with time whereas for the small players like

local brokers it will be difficult to keep the same pace as the changing technology. Also

with SEBI lying down some strict guidelines small brokers are finding it harder to retain

the customers with no research department and small capital. The traditional business

model is highly dependent on a large network of sub-brokers, and many established

players may not have systems (technology, customer service, etc.) capable of directly

servicing so many retail customers.

Unfulfilled needs of the customers

With so many competitors offering their products in the market but no one is able to

completely satisfy the customers. Some have the problem of lack of information or some

were scared of volatility of the stock markets. Sharekhan has the opportunity to tap this

unsatisfied set of customers and to make hold in the market. The Internet serves to break

all barriers to information, as it offers an extremely hassle-free investing platform. And,


Sharekhan hopes to fully utilize and capitalize on this platform. This original idea by

Sharekhan itself was born out of the consumer's need for a more transparent, easy to

understand and convenient option of investing in stocks.

Education Level

The education level in the country is improving year after year as far as

technology goes. With that the understanding of the stock market is also increasing and a

lot of retail investors are steeping in the markets which is being shown by increasing

volumes, transactions and indices.

THREATS

New Competitors

A lot of new competitors are trying to enter the market in this bullish run to taste

the flavor of this cherry. This is creating a lot of competition for large players like

Sharekhan and it is creating little confusion in the minds of the customers about the

services provided by the broker. Also many banking firms are entering into the market

with huge investment. Competitors like icici, kotak, hdfc, 5-paisa etc. are posing a lot of

threats to the company.

Technology based business

Online trading is totally based on the technology, which is quite

complex. Typically, the technology solution has to start from the Internet front-end

(or the screen that you see when you begin trading). Then it needs to get into the

'middle tier' of risk management systems that assess data from banks and

depository participants (DP), calculate client risk at that point in time, and give the


'Go/No go' advice to the trade. So technology is a kind of threat because unless

until it is working properly it is good but Internet is not that safe. Though a lot of

cyber laws are being made but not yet executed.


CHAPTER 6.

OBSERVATIONS AND ANALYSIS

DATA ANALYSIS

1 Market share of share-khan securities

COMPANY MARKET SHARE

ICICI 28.00%

Sharekhan 24.00%

Indiabulls 22.00%

5 Paisa 20.00%

Others 6.00%

Graphical representation of the above data


The above data describes the market share of the sharekhan competitors in which share

has the second highest market share among all its competitors heaving customer base of

more then or approximate 4.5 lack.

2 COMPETITORS BROKERAGE COMPARISION

COMPETITORS

BROKERAGE INTRA DAY DILIVERY

ICICI 0.50% 0.75%

HDFC 0.40% 0.75%

INDIA BULLS 0.10% 0.50%

SHARE KHAN 0.10% 0.50%

5 PAISA 0.05% 0.40%


The above is the detail of the companies’ brokerages in which sharekhan has

competitive brokerage over others in which there reduction of the brokerage

depending upon the deal between client and the customer.


3

GROWTH RATE IN % YEAR

2.5 2002

3.1 2003

3.6 2004

4 2005

4.5 2006

The above graph shows the growth rate of the company from 2002 to 2006, which shows

the increase in the growth trend.


SHAREKHAN Growth

COMPANY Year 2005-06

HDFC NIL

5 Paisa 2%

Indiabulls 1%

Sharekhan 4%

ICICI 5%


ICICI

Indiabulls

4

COMPANY MARKET SHARE

No of customer in lackICICI 7SHARE KHAN 4.5INDIA BULLS 2.55PAISA 2.4HDFC 1.1

The above graph shows the market share of the customer we are at position no two

heaving customer base of around 4.5 lakh customer, ICICI heaving the maximum and

HDFC has the minimum customer.


5 Client acquisition ( During the Project of Two month)

Clint Acquisition (Approx.)

Total Data 3000

Calls made 2700

Responses 1200

Appointment fixed 130

Appointment confirmed 45

Appointments converted 26

The above graph shows the numbers of customer (appr.)That has reached

through the marketing tools and technique. Approximately out of 3000

clients finally 26 were converted.


CHAPTER 7. FINDINGS AND RECOMMENDATION

FINDINGS

According to the study of the project report and company experience of two month the

analysis the following findings:

ü According to graph one icici has the maximum market share and sharekhan is at

position no 2. sharekhan has a competitive product feature and services that

makes it possible to reach at this position.

ü According to graph two SHAREKHAN has brokerage less then ICICI and

HDFC but Same as INDIABULLS but more then other competitors.

Brokerage is the main concern for the customer thus company provide some

negotiation flexibility in brokerage charges, in terms of brokerage we are

better then the ICICI and HDFC company charge less form the customer for

the same purpose and providing better service.

ü According to graph 3 which shows the competitors growth in terms of the

customer acquisition from 2002 to 2006, Sharekhan has a growth rate of 4%

and ICICI has a maximum Growth rate of 5%

ü According to Graph no 4, which shows the total no of customer, sharekhan has

the second largest customer base with 4.5lakh among its competitors.

ü According to the graph 5 it shows the practical work done by me. In this I have

made approximate 3000-4000 calls in two month to the customers and tried to

communicate my product. Out of all these calls I found 2700 numbers correct

and rest are not in use. Near about 1200 customer shows interests towards

atleast listening to the product out of 1200 only 130 customer fixed the

appointment for further process of the account opening with sharekhan. , Then


out of 130 customers only 45 appointments are confirmed and visited by me.

Out of this total 26 are finally converted and are customer of the company.

ü Due to high competition the companies provide same product with different

features and services. With this regard sharekhan is at no one for services,

brokerage and follow-up.

RECOMMENDATIONS

After heaving an experience of two moths in sales of Demat account I would like to

suggest the following things

v Company has an advantage of reach tips for which sharekhan s known for,

the customer who are new they need relationship managers

who will tell them about investment so it should be provided to

al the customer on demand this will lead to customer

satisfaction and will hip to have more references from the

satisfied customer.

v The company also have the advantage of brokerage charges it need some

revision so that the customer who are locking for the less

brokerage can open there account in are company taking into

consideration the different proposal, it can be reduced for a

HNI client.

v The company has shown the growth trend and it has reached at no 2 it can

move to no one because it has an advantage of its services. As

sharekhan is already tieup with 7 banks for online fund transfer

that reduces the paper work for customer and ease in trading.


v The company can increase the customer base if the account opening

charges it reduced from 750 to 400, which will give, boost the

competition.

v The company should revise the advertising strategy to increase its brand

awareness. I suggest making advertisement on television so

that maximum market can be targeted.


CHAPTER 8 CONCLUSION

After studying the project I would like to conclude that

Ø Company should focus on customer satisfaction at every levels of the account

opening procedure.

Ø Brokerage can be reduced with the attractive proposals for the HNI.

Ø Relationship manager should be given on the customer demand.

Ø Company should use the tool of advertising for marketing the brand and the

product.

Ø Reduction in brokerage would attract the customer of Indiabulls, 5 Paisa and other

competitor’s heaving less brokerage then us. It would increase the market

share or client acquisition.

Ø The account opening time should be reduce to maximum 5 days because customer

losses the opportunity of investments.

Ø The company shows the positive trend in growth but it can be increased more if it

focuses on building the brand equity.


CHAPTER 9 RESULT

The given target is 12 clients per month, which is achieved in the specified

time frame.

I have converted 26 customers in two months and some follow-ups are given to

the senior sales executives.

The secondary objective is also achieved.


CHAPTER 10 BIBLIOGRAPHY

BOOKS REFERED:

MARKETING MANAGEMENT - PHILIP KOTLER

RESEARCH METHEDOLGY - C.R KOTHARI

OFFICIAL BROUCHERE OF SHAREKHAN SECURITIES PVT LTD.

1. www.nsdl.com

2. www.sharekhan.com

3. www.hdfc.com

4. www.nseindia.com

5. www.icicidirect.com

6. www.kotaksecurities.com

7. www.indiabulls.com

8. www.indiainfoline.com

9. www.google.co.in


http://www.indiainfoline.com/

share khan

Documents

project work

summer project

company product

company profile2

company share khan

swot analysis chapter

sharekhan strategies

limitations chapter