SUMMER INTERNSHIP

PROJECT

FINAL
REPORT

A
REPORT
ON
SALES AND DISTRIBUTION
STRATEGIES OF

EDELWEISS: “OPPORTUNITIES

BY AND CHALLENGES”

(GLOBSYN

BUSINESS SCHOOL)

COURSE: PGPIB
 BATCH: 03

ENROLLMENT No.

011103017
 A
REPORT

ON
SALES AND DISTRIBUTION STRATEGIES
OF EDELWEISS AND ITS
OPPORTUNITIES AND
CHALLENGES

BY:

SUSN

AT PRADHAN

DATE OF SUBMISSION SUBMITTED TO:

13th JULY, 2010 PROF BIKRAMJIT SEN

(Faculty Guide)

MR. GYAN CHAND JAISWAL

(Company Guide)
 1|Page

TO WHOM IT MAY CONCERN

This is to certify that Mr. Susnat Pradhan 1st year PGPIB batch student (PGPIB03, Roll
No.011103017) of Globsyn Business School, has done her summer project titled
“Sales and Distribution strategies of Edelweiss: Opportunities and Challenges” under my
guidance as a partial fulfillment of PGPIB curriculum requirement.

Wish him all success in life.

Date:

Place: Kolkata

Gyan Chand Jaiswal Prof Bikramjit Sen

(Company Guide) (Faculty guide)

Edelweiss Broking Ltd. Globsyn Business School

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 AUTHORIZATION

I, Susnat Pradhan hereby declare that the project titled “Sales and Distribution strategy of
Edelweiss and its opportunities and challenges” is an original and genuine work carried
out under the guidance of Mr. Gyan Chand Jaiswal (Area sales manager, Edelweiss) and
Prof. Bikramjit Sen (Faculty member GBS Kolkata) from 5th April, 2010 to 12th June,
2010 in partial fulfillment of PGPIB Program. I declare that the report submitted by me is a
bona-fide work of my own. However, any discrepancies, if any, found in the project will be
completely my responsibility.

Signature:

Place: Kolkata Name- Susnat Pradhan

Date: 13th July, 2010 Enroll No. - 011103017

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 ACKNOWLEDGEMENT

No task is a single man’s effort as there are various factors, situations and people
combine together to form the background for the accomplishment of any task.

This project report bears the imprint of some very important people, both from my
institution, GBS Kolkata as well as the Organization (Edelweiss Broking Ltd.), who are
directly or indirectly related in shaping up this project. I am highly grateful and
sincerely acknowledge valuable contributions imparted by these imminent people
towards the completion of this project.

I would like to thank sincerely my Company Guide, Mr. Gyan Chand Jaiswal, Area
sales manager, Edelweiss, Kolkata, for his useful guidance and inputs. I am grateful to the
Organizational members of Edelweiss for their help and support throughout the project.

Most importantly, I deeply want to express my profound gratitude and thankfulness to Prof.
Bikramjit Sen for having faith in my endeavors and abilities. Knowledge gained from
him will always inspire and encourage me to scale new heights in the future.

I thank all the respondents who have given their precious time to answer my
questionnaire during the survey for primary data collection.

Susnat
Pradhan

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 TABLE OF
CONTENTS

SN.NO CONTEN PAGE NO.

. T
1. Executive Summary 6

2. Introduction to the topic 8

3. Purpose 9

4. Scope 9

5. Limitations 10

6. Methodology 11

7. Introduction to the Indian Stock Market 12

8. Introduction to Edelweiss 15

9. Main Text

Findings about the selling strategy 22

Findings about the Distribution strategy 26

Findings about the CRM strategy 32

Strategy of Edelweiss in Kolkata 36

10. Primary Data analysis

Consumer Risk Analysis 39

Competitor Analysis 41

Questionnaires’ analysis 43

11. Key findings 51

12. Conclusion 52

13. Recommendations 52

14. References 53

15. Annexure- Questionnaires 54

5|Page
 EXECUTIVE SUMMARY

Edelweiss Capital Limited is a Mumbai based company which started its operation in the
year 1995. The mission statement of the company is “Ideas create, values protect”. It
provides services like investment banking, institutional equities, private client broking,
asset management, wealth management, investment advisory services, treasury,
insurance broking, wholesale financing, and mutual funds. The major clients are
corporations, institutional investors, and high net-worth individuals.

This Project is a comprehensive study of Sales and Distribution strategy of

Edelweiss and identifying its opportunities and challenges. It talks about studying the
method of identifying customer’s investment needs and suggesting them suitable financial
products, thus the sales of various financial products of the company and analyze the
various distribution strategies exploited by the firm. The project also deals with customer
relationship management; it gives a picture about how to build a good relationship with the
clients who bring business for the company (existing, prospective and dormant clients). This
project will explore the various distribution channels used by Edelweiss to sell its products.
The project will focus on the strength areas of the company while at the same time
tries to identify the weak areas so that it can be overcome. A comparative analysis of
Edelweiss with other broking firms has also been done. The strategy followed by
Edelweiss in relation with Sales and Distribution is unique and acts as a (USP) unique
selling proposition in favor of the company. The strength of Edelweiss is its market image
and well equipped research team, which it uses as a potential selling tool.

As an intern, I have carried out research to track acceptability for different distribution
channels. I went for the field work, talked to customers and tracked their investment
pattern to help them suggest the kind of financial product they should use according to
their risk appetite. Adding to this, I have been communicating with different types of
customers through various media, including client visits, who fall under the sample space
for this project. My job here is to advice them to take the suitable products offered by the
company, depending on certain criteria, in order to make investing easier for them. I have
also worked as a part of sales force of the company and sold Demat account. I have visited
to many places in purba and paschim Medinipur. Some of the data has been collected from
the customers regarding their views about Edelweiss. Having said that, a comparative study
has carried out to see where Edelweiss stands in the race for offering P r o d u c t s a n d
services. I have been handling the profile of Customer Relationship Management. I
have been talking to existing retail clients of the company over the phone, asking for an
appointment following which there will be client visit. In the visit the main focus would be to
convince the clients to do more business with the company and telling them about the
benefits provided by the company. So t r a c k i n g t h e transformation is really
interesting and worth appreciating. I have concentrated on existing and dormant
clients trying to know their opinion about their association with Edelweiss.
Interaction with the clients helped to know the image of the company in
the minds of the customers and it helped me to come up with
suggestions to further improve the services of the company. I hope my
findings are useful for the company.

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Objective of the project-

To cover the various aspects of sales and distribution strategy

To track the CRM policy of the company and its importance

Competitor’s analysis and knowing the opportunities and challenges before the
company.

Methodology-

Primary data collection- primary data was collected through questionnaire design
and conducting a survey.

Secondary data collection - source of secondary data was books, journals,

company websites and database provided by the company.

Limitations-

Short duration of the project

Customer response may not be 100% right

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 INTRODUCTION TO THE TOPIC

The project is about selling and distribution strategies of a financial

service providing company (Edelweiss Broking Ltd.) and opportunities
and challenges faced by it. The project stresses on retail clients and
strategy adopted by the company to handle them. CRM is a part of the
project. In today’s context building relationships with customers is a part
of the strategy of the company because customer retention is
vital for an organization. The customer relationship is aimed at creating
strong long lasting, fruitful relationships by developing long-term bonds.
As a result the customer starts identifying and associating him with the
product, prefers and accepts the company’s products and services over
competitors’ offerings and recommend others to buy. Moreover it costs
less to retain customers than to c o m p e t e for new c u s t o m e r s . My j o b
p r o f i l e i s interacting with the existing retail clients and the clients
who are in a dormant stage and convincing them to start business with
the company and maintain their association with the company. This
involves calling the existing clients and client visits. This will help me
get an insight into the various aspects of customer relationship. The
project basically stresses on studying the method of identifying
customer’s investment needs and suggesting them suitable financial
products, thus the sales of various financial products of the company
and analyze the various distribution strategies exploited by the firm.

Sales are important from every company’s point of view. Another most
important thing is the Distribution of its products in an effective way so
that they reach the customers. Sales refer to volumes, sales figure is a
reflection of the company’s acceptability in the market; a good sales
figure reflects high acceptability for the company through its
products in the market and vice-versa. A company builds up a distribution
strategy with an endeavor to reach out to maximum consumer pool in a
minimum time frame and incurring least costs. A good distribution
ensures easy availability of a product in the market and helps the
company penetrate further into it. This helps the company identify
potential segments and cater to its requirements. Selecting a sales
and distribution approach is a key element of a successful business
model. The sales approach, or more broadly the overall process of
selling and delivering products to customers, at once encompasses both
a company’s connection to its customers and a significant portion of its
total costs. Traditionally, companies selected from a defined, limited set of
options (i.e. Direct sales, manufacturers representatives,
distributors, dealers) and most firms in an industry made similar
choices. Recently, the number of options has expanded greatly and
the breadth of choices by competitors has proliferated in parallel,
creating potential instability in competitive positions for current leaders
and areas of opportunity for others. To make matters more uncertain,
some of the traditional options no longer offer the same balance of
services and costs and now cease to achieve the desired results.
Therefore, many companies are forced to rethink their approaches to
sales and distribution. The project talks about the opportunities and
challenges that are there before the company. Competitors’ analysis has
been done to explore the strategies adopted by the competitors and the
areas for improvement. Thus the project covers various areas and hope it
is useful for the company.

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PURPOS
E
To identify the distribution channels in the financial firm– this project will
explore the various distribution channels of the company like brokers and sub-
brokers

To study the distribution strategy of the company- Stress will be given on the
distribution strategy employed by the firm

To understand the customer needs and accordingly sell them suitable

products – for selling it’s important to understand the customer perception. This
project will help company to know the customer base in a better way so that
suitable selling strategy can be adopted

To study how do sales and distribution channel choices fit into the overall
business model- the project will find the effectiveness of channels in the
company

How are the underlying characteristics of sales and distribution channels

changing in the new segment - the project will find out whether with
Edelweiss coming in a new segment the distribution channels are changing or not
and how their sales strategy has been affected

Creating competitive advantage with sales and distribution strategy - the aim of
the project is to explore how competitive advantage can be gained by adopting the
right strategies

To identify the growth areas of the company - the project will also focus on as to
how the company can improve its sales further and what are the segments where
there is a growth potential

To study the importance of CRM- the project deals with the relationship
management with HNI clients and its various aspects

SCOP
E
There is a wide scope of this project for the company as well as industry. As the study is
about the sales and distribution strategies that are the major factors that decide
company’s success, so knowing a good deal about it is of much importance. The
company can trace the loopholes and take corrective measures which will help it
improve further. The project has covered various marketing concepts and the models that fit
into the business model. The scope is just not limited to the company; it gives an idea of the
industry.

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LIMITATIOS
Some aspects might not be covered due to time constraint

The information by the customers regarding their investment may be partially

correct because they do not wish to disclose their asset information

Reliance on the secondary data means that some of the information may be
subject to verification

Incorrect data given by the respondents might not justify the purpose

Many customers don’t wish to listen to us because of their busy schedule

In a rapidly changing industry, analysis on one day or in one segment can change
very quickly

The study is limited to only Kolkata and East & West Midnapore

SORCES of DATA
The data is being collected through primary and secondary sources.

Primary Data

The data will be collected through questionnaires from people in Kolkata. The sample size
is taken as 100 for sales and distribution questionnaire and 30 each for the two
questionnaires related to CRM.

Secondary Data

Database given by the company

Websites of the company and books

Journals and magazines

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e
METHODOLOGY
Research methodology is a strategy that guides a research in providing answers to
research questions and for this, research survey is being done.

For the collection of primary data the questionnaire designed for the purpose was given to
the customers to know their response. The data were collected in te n w e ek s , in Kolkata
and East & West Midnapore. The average response rate was 75.9%, due to the short time
available for the interviews. This was followed by client visits and interaction with the
distribution agents like broker and sub-broker.

Questionnaire Design

The questions were designed in an easily understandable way that the respondents may not
have any difficulty in answering them.

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units.

Sampling Area:

The area of the research was area of Kolkata and East & West Midnapore, India.

Interpretation

Interpretation refers to the task of drawing inference from the collected facts after an
analytical study, in fact it is a search for broader meaning of research findings it is
through interpretation that the researcher can well understand the abstract principle that
respondents beneath his findings. The simple statistical tools will used to analyze the data
collection; Bar Graphs and pie chart have been used to illustrate the findings
diagrammatically.

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INTRODUCTION TO THE INDIAN STOCK MARKET

The Indian broking industry is one of the oldest trading industries that have been
around even before the establishment of BSE in 1875

Inception- The roots of a stock market in India began in the 1860s during the
American Civil War that led to a sudden surge in the demand for cotton from India
resulting in setting up of a number of joint stock companies that issued securities
to raise finance.

Bubble burst- The early stock market saw a boom till 1865, and then in Jul
1865, what was then used to be called the share mania ended with burst of the stock
market bubble. In the aftermath of the crash, banks, on whose building steps share
brokers used to gather to seek stock tips and share news, disallowed them to gather
there, thus forcing them to find a place of their own, which later turned into the
Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875,
which led to the formation of a trust in 1887 known as the “Native Share and Stock
Brokers Association”

Beginning of a new phase- A new phase in the Indian stock markets began in the
1970s, with the introduction of Foreign Exchange Regulation Act (FERA) that led to
divestment of foreign equity by the multinational companies, which created a
surge in retail investing.

Growth supporting factors-The early 1980s witnessed another surge in stock

markets when major companies such as Reliance accessed equity markets for
resource mobilization that evinced huge interest from retail investors. A new set of
economic and financial sector reforms that began in the early 1990s gave further
impetus to the growth of the stock markets in India.

Setting up of SEBI- the Securities and Exchange Board of India (SEBI), which
was set up in 1988 as an administrative arrangement, was given statutory
powers with the enactment of the SEBI Act, 1992. The broad objectives of the
SEBI include-

to protect the interests of the investors in securities

to promote the development of securities markets and to regulate the

securities markets

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 Incorporation of NSE- NSE was incorporated in Nov 1992 as a tax paying
company, the first of such stock exchanges in India, since stock exchanges earlier
were trusts, being run on no-profit basis. NSE was recognized as a stock
exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It
commenced operations in wholesale debt segment in Jun 1994 and capital
market segment (equities) in Nov 1994. The setting up of the National Stock
Exchange brought to Indian capital markets several innovations and modern
practices and procedures such as nationwide trading network, electronic trading,
greater transparency in price discovery and process driven operations that had
significant bearing on further growth of the stock markets in India. To speed the
securities s e t t l e m e n t p r o c e s s , T h e Depositories A c t 1 9 9 6 w a s p a s s e d t h a t
allowed for dematerialization (and dematerialization) of securities in
depositories and the transfer of securities through electronic book entry. The
National Securities D e p o s i t o r y L i m i t e d ( NSDL) s e t u p b y l e a d i n g
f i n a n c i a l institutions, commenced operations in Oct 1996.

Despite passing through a number of changes in the post liberalization period, the
industry has found its way towards sustainable growth. A stock Broker is a
regulated professional who buys and sells shares and other securities through market
makers or Agency Only Firms on behalf of investors. To work as a broker a
certificate of registration from SEBI is mandatory after satisfying all the terms and
conditions.

FINANCIAL MARKETS

The financial markets have been classified as

Cash market (spot market) – largest traded, the spot market or cash market is
a commodities or securities market in which goods are sold for cash and delivered
immediately.
Derivatives market – after cash market, the derivatives markets are the financial
markets for derivatives. The market can be divided into two that for exchange
traded derivatives and that for over-the-counter derivatives.
Debt market - The bond market (also known as the debt, credit, or fixed income
market) is a financial market where participants buy and sell debt securities.
Commodities m a rk e t – a f te r commodit ies m ar ke t , C o m m o d i t y
m a r k e t s a r e markets where raw or primary products are exchanged. These raw
commodities are traded on regulated commodities exchanges, in which they are
bought and sold in standardized contracts.

NEED OF A BROKER

A broker is a person or firm that facilitates trades between customers. It is advisable to

conduct transactions through an intermediary. For example one needs to transact
through a trading member of a stock exchange if they intend to buy or sell any security

13 | P a g e
on stock exchanges. One needs to maintain an account with a depository if they intend to
hold securities in demat form. You need to deposit money with a banker to an issue if you
are subscribing to public issues. One gets guidance if you are transacting through an
intermediary. A broker acts as a go between and, in doing so, does not assume any risk for
the trade. The broker does, however, charge a commission. A broking firm acts as an
intermediary between NSE and Client. Stock Brokers come under the category of Market
Players. The membership in the stock exchange can be granted as individual
membership and corporate membership.

BROKE CLIEN
NSE B R T

The market intermediaries play an important role in the development of Securities Market
by providing different types of services. There are two major stock-exchanges NSE
(composition of 50 stocks) and BSE (Composition of 30 stocks).

Exchange-wise Stock Brokers Registered with SEBI (As on March 31, 2008)

SN STOCK EXCHANGE TOTAL NO. NO.OF CORPORATE

NO. OF STOCK CORPORA BROKERS AS
BROKERS TE A
BROKERS % OF TOTAL
STOCK
1. Ahmadabad 321 157 48.91
2. Bangalore 256 124 48.44
3. BSE 946 767 81.08
4. Bhubaneswar 214 19 8.88
5. Calcutta 957 204 21.32
6. Cochin 435 80 18.39
7. Coimbatore 135 48 35.56
8. Delhi 374 213 56.95
9. Gauhati 103 3 2.91
10. ISE 935 345 36.90
11. Jaipur 488 18 3.69
12. Ludhiana 297 85 28.62
13. MPSE 174 34 19.54
14. Madras 181 71 39.23
15. NSE 1,129 1,039 92.03
16. OTCEI 719 551 76.63
17. Pune 188 55 29.26
18. UPSE 354 78 22.03
19. Vadodara 311 64 20.58

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AN INTRODUCTION TO EDELWEISS

Edelweiss capital was started by two IIM graduates Mr. Rashesh Shah and Mr. Venkat
Ramaswami. The Company is operating in India as an Integrated Investment Banking
Company. Edelweiss strives to be a thinking organization, trying to be innovative and
imaginative. The policy of the company ensures transparency and greater
opportunities for all its clients.

SNAPSHOT
Approach- Client Focus, Execution orientation, Culture, Professional Integrity,
Research Driven

Aim- building long term relationships with the clients and equipping the clients about
the market knowledge so that they can address the day by day fast growing opportunities

USP- The single minded focus on thought leadership and relentless pursuit of the ‘new’
and ‘different’ is it in products, services or people, model of employee ownership

Culture- Entrepreneurial and result driven emphasizing confidentiality and integrity

Operations- stock broking, research services, distribution of financial products,

depository services, and proprietary trading, 47 per cent of its revenue is from treasury
and wholesale financing

Research (POD) - 90 researchers, covers over 200 stocks across 19 sectors that
accounts for about 70% of the total market capitalization

Offices- operates from 56 offices in 21 Indian cities, employs over 1600 employees

Major clients- ESL focuses on the wholesale equity segment, providing broking services to
Institutional and corporate clients and high net worth individuals

Market Capitalization- Rs 5,500 crore (Rs 55 billion),

Equity Base- over Rs 2,000 crorer

Website- www.edelcap.com,
www.edelweiss.in

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HIGHLIGHTS

EBL has a strong equity research team, which covers approximately 50 - 60

companies within 6 industry categories, with a focus on large and medium cap
stocks.

The company’s Equities Broking division has now expanded to include 215
stocks in 19 sectors accounting for 70 percent of market capitalization

Alternate Asset Management’s total asset value currently stands at $625 million

Wholesale Financing division soared to Rs. 141 crore in FY08 from Rs. 7 crore in
the previous year

Edelweiss is amongst the largest institutional broking firm, enjoying a healthy

5% plus market share in the institutional broking segment

Edelweiss is also in the process of widening its product portfolio by penetrating into
p r o d u c t specific a n d s e c t o r s p e c i f i c n i c h e s , w h i c h w i l l b r o a d e n
a n d strengthen its entire institutional business

Asset base of over INR 800 cr. In lending business

It is empanelled with over 40 leading FIIs, FIs, Mutual Funds, Banks and
Insurance companies

Listing in various stock exchanges NSE: EDELWEISS, BSE: 532922,

Bloomberg: EDEL.IN
Awarded as “Best Merchant Banker” by the Outlook Money NDTV Profit Awards,
2008
Ranked among the top ten players in Annual Bloomberg and Annual Thomson-
Reuters
Present Chairman and CEO- Mr. Raskesh Shah
Well respected Brand with strong position in relevant market segments

STRENGHTS OF THE COMPANY

Has an integrated business model, which specializes in providing a wide range of

financial products and services such as investment banking, institutional
equities, wealth management, and wholesale finance.
Is well positioned to leverage the growing financial sector in India and become a
significant market player, especially in areas like investment banking,
institutional equities etc.
Has a strong research platform with research products, such as fundamental and
alternative research, catering to institutions and HNWIs and retails. The fundamental

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 research covers ~190 companies which represent ~69% of the market
capitalization of all the companies listed on BSE as on August, 2008. On the other
hand alternative research utilizes quantitative techniques to identify short term and
medium term investment opportunities in the capital market

The company has a strong internal controls and risk management system
employed throughout t h e f i r m t o a c c e s s a n d m o n i t o r r i s k a c r o s s v a r i o u s
business line. The Risk exposure is monitored and controlled through a variety of
separate but complementary financial, credit and operational reporting system

Is an established brand with strong track record of high growth and

profitability?
Is strongly focused on nurturing & maintaining strong business relationships
with corporate & institutional clients
Well positioned to utilize the immense opportunities in the Indian financial sector

RECENT APPROACH

Edelweiss is a premium broking firm whose targets were only HNWI clients. But seeing the
opportunity in retail sector it has forayed into it. The company is providing the same research
facility to its retail clients as it provided to its premium clients. It is offering an online
platform to the clients which will increase transparency and make business hassle free
for the clients. The company is making a shift from ESL (Edelweiss Securities limited) to
EBL (Edelweiss Broking Limited).

The benefits offered by the company to its clients are:-

Online Platform
News alert through Mobile messages and e-mail
Dealer support
Portfolio Doctor (Turtle)
Toll Free Number (Helpline Services)

Thus the company is customer focused and protects the wealth of its customers through its
innovative ideas. The company is repositioning itself from a niche marketer to a mass
marketer and is aiming at Brand Repositioning.

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THE PRODUCTS AND SERVICES OFFERED BY EDELWEISS ARE AS FOLLOWS:-

SERVICES

Capita
l based

Agenc
y
based

Recent initiatives/high growth areas

Investment Banking: This includes services such as M&A

advisory, transaction execution relating to structured finance, equity
markets, real estate, and infrastructure.

Institutional Equities: Edelweiss’ Institutional equities business

comprises institutional
equity sales, sales-trading, and research.

Private Client Brokerage: These services are targeted at high net

worth and other individuals who actively invest and trade in the equity
market.

Wealth Management: Wealth management involves providing

investment advisory, planning & asset deployment services to high net-
worth individuals.

Asset Management: This involves both asset management as well

as investment advisory services. Under this, the company advises
three funds with an aggregate
corpus of over USD 330 mn.

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Insurance Brokerage: Edelweiss has also entered the non-life insurance brokerage
business as an IRDA registered broker in 2005 and it distributes insurance products
through its subsidiary, Edelweiss Insurance Brokers Limited.

Treasury: The internal treasury operations manage the excess capital funds by
investing the same in low risk strategies to achieve risk-adjusted returns.

Wholesale financing: Wholesale business provides the high net worth individual and
corporate clients with facilities such as loans against shares, loans to finance IPO
subscriptions, and loans against mutual fund units. This is done through a subsidiary, ECL
Finance Limited.

PRODUCTS

Advisory Based Broking (ABB) – an asset management service.

Margin Funding- The Company provides funds to people who wish to invest
large amount in stock market but are lacking in fund. Fund is provided against
securities. The company has a policy of ‘hair cut’ which means that the assets that
are kept as securities, they are valued less than their original price. Fund is provided
for investing in only those stocks that are listed in the stock broker’s list of the
company. This is to save the company from loss as company has those stocks in the
list that are less volatile and whose market value is good.

Structured Product- As such, structured products were created to meet specific

needs that cannot be met from the standardized financial instruments available in
the markets. Structured products can be used as an alternative to a direct
investment, as part of the asset allocation process to reduce risk exposure of a
portfolio, or to utilize the current market trend

Mutual Fund- This is a product offered by the company that takes money from the
investors and invests it in the stock market on their behalf as customers are not fully
aware of the stock market. They take money from many customers and collectively
invest in the stock market.

Insurance- Another product offered by the company in which the agent gets
commission on every insurance policy done by him

Arbitrage- Arbitrage, or true arbitrage, involves buying and selling a security and
taking advantage of prices differences that may exists on different markets.
While rare, this does happen from time to time

Portfolio Management Services- this product comes under wealth management.

Customers are advised where they should invest their total investment savings.

Initial Public Offering (IPO) - This product invites public to participate in the
bidding process.

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 Demat account- it refers to Dematerialized Account. It is necessary to sell and buy
stocks. So it is just like a bank account where actual money is replaced by shares.
One has to approach the DPs, to open his demat account. So one doesn’t have to
possess any physical certificates showing that you own these shares. They are all
held electronically in the account. As one buys and sells the shares, th ey are
adjusted in their account. Just like a bank passbook or statement, the DP
provides with periodic statements of holdings and transactions.

Commodity market- In this market metals and agricultural products are traded.
MCX for metal products and NCDEX for agricultural products.

CLIENT REVENUE MIX

Institutional/corporate client individual clients

22%

78
%

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GROWTH STRATEGY

The Company’s growth areas are basically across three categories- Products, asset
classes and client segments. It basically focuses on HNWI clients, and now it has come
into the retail segment which is its source of growth. From the asset side it gets fixed
income and is also into real estate. The popular products are wholesale financing,
financial product distribution etc.

21 | P a g e
 MAIN
TEXT

FINDINGS
Sales and distribution management constitutes one of the most important areas for
customer satisfaction. Sales management has been defined as the management of a firm’s
personal selling functions while distribution is an indirect function. Therefore integration is
required between sales and distribution functions.

(1)SELLING STRATEGY OF
EDELWEISS

Relationship strategy

The key to success in selling is the ability to establish working relationships with the
customers in which mutual support, trust and goals are nurtured over time. Edelweiss
stresses on building good relationship with its clients as in case of financial firms the
intangible nature of services makes Relationship strategy vital. The main purpose of a
salesperson is not just to make sales but to create customers.

Product centered selling and client centered selling

Product-centered selling Client-centered selling

1. Stress on research and Stress on research and

development 1. development of relationships

2. of producton knowledge of product with

Emphasis clientson knowledge of
Emphasis
2. customers
3. Influenced b y p a s t performance directed more to consideration of
of 3. products and
future Growth and developments
competition and
present situations in the client World

4. Seeks to be accepted as a seeks to raise client’s

reliable, 4. expectations of
credible source of information
Personal excellence
and service

22 | P a g e
The strategy of Edelweiss is a mix of product centered and client
centered
strategy.

(2) EDELWEISS’S SALES MANAGEMNET PROCESS

First a strategic sales program is made keeping in mind the company’s objectives. Then
accordingly the sales program is implemented. Following this there is an evaluation of
the sales force performance. The company adopts majorly Direct Selling Strategy to sell its
products. The concept of telemarketing is being adopted by the company. Appointments
are fixed over the phone which is followed by the client meeting. The whole process
can be shown with the help of a flowchart:-

Create Identify Make Give Ensure

direct the appoint suitable knowledge
selling custom ment demo about
process er with &pitch product
customer

Ensu After Close deal

re sales
incre prompt
ase servic
in e
cust. value
23 | P a g e
Sales organization always makes effort to increase sales, thereby achieving the principle
of profit maximization, thus contributing to the overall growth of the enterprise.Sales goal
should be SMART – Specific, Measurable, Attainable, Realistic, and
Time- bound

(3) METHODS OF APPROACH ADOPTED BY SALESPERSONS TO SELL

EDELWEISS PRODUCTS

Cashing in on Brand Name or the Company’s reputation- Representatives

approach the customers with the strength of Brand name that Edelweiss has.
Though the company is new in Kolkata, it is a well established brand in Mumbai.

Customer Benefit Approach- they convey to customers the benefits they will get
after getting associated with Edelweiss, like online platform and local dealer
support.

Interactive Approach- the approach is interactive i.e. it is a two way

communication and client queries are always welcomed.

AIDAS THEORY OF SELLING

ATTE
ATTENTION Seek the attention of the prospect
NTIO client

INTE
INTEREST
REST Maintain the attention by creating
interest
DESI

RE
DESIRE
ACTI
ACTION
ON
Create desire in customer’s mind to buy
the product

Induce the client to buy the product

24 | P a g e
SELLING SKILLS - Talking about the skills that a salesperson should posses, they are as
follows:-

Possession of these skills is very important as conversion of a prospect customer to a

company client very much depends on the selling skills and how the matter is put forth the
client.

The project part that covers D-Mat account sales, involves calling the clients, interacting
with them and convincing them to maintain a good relationship with the company so that
the company is in a profit.

(4) THE MAJOR ATTRIBUTES OF THE SELLING STRATEGY IN THE

COMPANY

Sales target- The sales team is given a fixed target which it needs to achieve
within a month.
Motivational Rewards- The team who performs the best is given some rewards.
This is to motivate others to perform well and at the same time appreciate the hard
work done by the winning team
Continuous Evaluation- the sales team has to appear in the evaluation
conducted by the company to test their market 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 handle customer queries.
Thus the company follows an effective sales strategy (PUSH STRATEGY) which is
customer focused.

25 | P a g e
(4) DISTRIBUTION STRATEGY

Distribution channels are organized structures performing the tasks

necessary to facilitate exchange transactions. The functions of
distribution channels are to create time, space and state utilities
which constitute the added value of distribution. Distributors
(wholesalers, retailers, agents, brokers) are required
because manufacturers are unable to assume by
themselves, at a reasonable cost, all the tasks implied by a free and
competitive exchange process. Distribution channels can be
characterized by the number of intermediary levels that separate the
supplier from the end-user. The selection of a particular channel design
is determined by factors related to market, buyer behavior and company
characteristics. When the channel structure is indirect, some degree of
co-operation and co-ordination must be achieved among the participants
in the vertical marketing system. Regarding the number of
intermediaries is necessary; three market coverage strategies are
possible: intensive, selective or exclusive distribution. Distribution is
one of the elements of marketing mix. Through distribution channel the
product passes through intermediaries before reaching the end consumer.

Distribution channel can have number of levels-

Zero level channel

One level channel
Two level channel

Choice of distribution channel

depends on

Market consideration – consumer or industrial market, number of potential

customers, size of order, buying habits of customers, geographical
concentration of markets
Product considerations - Technical nature,
Perishability

Company considerations- Financial resources, Services provided by

the channels, Experienced and competent management, desire for control of
channels

Middlemen considerations – Competition, sales potential, Availability

of desired middlemen, attitude of middlemen, cost

The key differentiating factors of a successful distribution

channel are as follows:

Quality of advice given by the company to its customers

Choices of products
After sales service
Settlement of issues if any
Managing distinct cultural and social ethos
Marketing the product as an essential financial product
Building trust
26 | P a g e
Role of distribution channels

To adjust the discrepancy of assortment through the process of sorting,

accumulation, allocation, and assorting
To minimize the distribution costs through reutilizing and standardizing
transactions to make exchange more efficient and effective
To facilitate the searching process of both buyers and sellers by structuring the
information essential to both the parties
To provide a place for both parties to meet each other and reducing
uncertainty.

Distribution channel
strategy

Setting distribution objectives in terms of the customer requirements

Finalizing the set of activities that are required to be performed to achieve the
channel objectives

Organizing the activities so that the responsibility of performing the activities is

shared among the entities that are meant to perform these activities

Developing policy guidelines for the smooth functioning of the channel on a

day to day basis

The distribution extension decision is based on distribution development index (DDI) a

Category Development Index (CCI). If we see the current situation of edelweiss is
considered then it can be seen that DDI is high as the brand is readily available in the
market as compared to its competitors. While CCI is low if we consider the retail
segment, in which the company is a new comer. Per capita consumption of its products in
the market relative to per capita consumption of the total financial products is low. So the
strategy adopted by Edelweiss would be “Concentrating on demand generation
activities”.

In the retail sector the strategy of Edelweiss is to go for Brand Repositioning and
become a mass marketer. The company is distributing Pamphlets among the customers for
its promotion and building an image in the minds of the customers.

27 | P a g e
distribution H
development

H
L

Category development
H- High
L- low

Edelweiss is itself an intermediary between NSE and client and is a

part of the distribution channel. But as a company it has its own
distribution strategies to sell products to the customers.

(5) DISTRIBUTION CHANNELS

OF THE COMPANY

The company has named the services provided to the customers as CLIENT
ADVISORY SERVICES (CAS). The company has a multichannel
distribution system. Client Advisory Services is mainly looking into five
channels for distribution-:

A. Inbound Team

B. Sub Broker/ Remissor

C. Direct Selling Agency

D. Corporate Accounts

E. Free Accounts

28 | P a g e
Inbound Team: - CAS currently has an inbound team of 30 members divided into four
team leaders. Each team leader can have 8 fixed cost agents reporting to him. These fixed
cost agents are sourcing accounts directly from the market. Team leaders are reporting to
ASM which in turn are reporting to the Regional Head. Each agent has a specific target
assigned to him.

Reporting Hierarchy:

Region
al
Hea
d

Area
Sales
Manag
er

Team
leaders

Fixed
cost
agent
s

Sub – Broker/ Remissor- Sub brokers charge commission for the business they bring to
the company by bringing clients. Sub-brokers have their own office space and they need not
work in the office of the company they are working for as sub-broker. Whereas Remissor is a
type of Sub-Broker that uses the office space of the company it is working for. They have a
fixed participation in the company. Remissor is given a certain low % as compared to Sub-
brokers as they are using the resources of the company

Direct Selling Agents (DSA)- DSA’s are working for the company but they have no
profit participation. They are given commission on the basis of account clients under
Edelweiss. The DSA’s looks for agents who can work under them. They have a team of
around 7-8 members who source the clients for them. These agents get commission from
the DSA’s and they have no connection with the company.
Corporate Accounts- This is a way to get bulk accounts from the companies. NSE and
BSE listed companies are offered free accounts. First an appointment is fixed in the target
company which is followed by a corporate presentation. This is the major contributor
to the company’s sales.
Free Accounts- The rediffmail users who registered in our site get free account(post paid)
and one month free trade.
29 | P a g e
(6) CHANNEL MANAGEMENT
TASKS

Design of Ex an
Ex-ante
channel phase
structure

Establishing the channel

Distribution
channel strategy

 Channel
objectives
 Activity
finalization Motivating the
channel members Ex po
Ex-poste
 Activity
organization phase


Developing
Policy
guideline
s

Resolving conflicts among

c
h
a
n
n
e
l

m
e
m
b
e
r
s

Managing the distribution channels is an important task. It

involves two phases- managing before the channel is actually
executed. This is called the ex-ante phase. During this phase the
channel is designed and established. The next phase is ex-poste phase,
i.e. the phase after the channel has comes into work, in which the
channel
members are motivated and the
conflicts are resolved.
30 | P a g e
(7) INNOVATION IN DISTRIBUTION CHANNELS

Edelweiss’ Retail stores are an approach to shift from traditional marketing channels
and this can give the competitive edge and is the differentiating factor.

(8) DISTRIBUTION CHANNEL STRATEGY OF EDELWEISS BASED ON

CUSTOMER BEHAVIOUR

P U S H F OR C E PULL FORCE

Financially sales force

unaware/unsure

Financially Telemarketing, media

aware/unsure Advertising

Financially Financial media Telephone, internet

astute/sure
Financial niches Recommendations, Face to face, telephone
historical relationships

31 | P a g e
(9) A SHORT COMPARISON OF CONSUMER PRODUCTS TO THE
FINANCIAL PRODUCTS WHEN IT COMES TO SALES AND DISTRIBUTION

The financial services are different from the consumer products offered. If we make a
comparative analysis following points can be highlighted:-

Interaction with the customer- In case of consumer products the company has
no direct contact with its customers. It distributes its products to the
distributors and after that does not come in the picture. They come in contact with
the customers only in case of any complaints. In case of a financial product
the company personnel interact directly to the customers and convince
them to buy the product. Thus the responsibility of company increase in
case of financial products
Buying Pattern- Many consumer products are taken by the customer on an
impulse while taking a financial product involves a long thought process.

(10) VARIOUS ASPECTS OF CUSTOMER RELATIONSHIP MANAGEMENT

The customer relationship is aimed at creating strong long lasting, fruitful

relationships by developing long-term bonds. As a result the customer starts
identifying and associating him with the product, prefers and accepts the company’s
products and services over competitors’ offerings and recommend others to buy.
Moreover it costs less to retain customers than to compete for new customers. The
project involves interacting with the existing HNWI clients and the clients who are in a
dormant stage and convincing them to start business with the company and
maintain their association with the company. This involves calling the existing
clients and client visits. This helped in getting an insight into the various aspects of
customer relationship.

FINANCIAL SERVICES

Edelweiss is financial service providing company. In case of financial company the

differentiating factor is the services provided by the firm. Financial services
basically mean all those kinds of services provided in financial or monetary terms,
where the essential commodity is money. These services include; Leasing, Hire
purchase, venture capital, Merchant banking, Insurance, housing finance, Mutual
funds, factoring, stock broking and many others. The term financial services in its
broader sense refer to “mobilizing and allocation of savings’’. It is identified as all
those activities involved in the process of converting savings into investment.

There are number of factors which make the financial services different from
physical goods. The major characteristics of financial services are – Intangibility,
Lack of ownership, Inseparability, Perishability, Heterogeneity, Fiduciary
responsibility, Long term.

32 | P a g e
 SERVICES MARKETING TRIANGLE

FIRM

Internal marketing External Marketing

EMPLOYEES

CUSTOMERS Interactive

Marketing

According to Grönroos the internal marketing has to be managed by the company’s

leadership, the interactive marketing happens between the employees and the clients and
the external marketing is what takes place between the company’s management and the
clients.

3P’S OF SERVICE
MARKETING

Coming to the Marketing Mix generally there are 4P’s (PRODUCT, PRICE,
PLACE, PROMOTION) but when it comes to services marketing 3p’s are added to it:-

PEOPLE

The importance of people within the marketing of services has led to great interest in
internal marketing. This recognizes the importance of attracting, motivating, training, and
retaining quality employees by developing jobs to satisfy individual needs. People form an
important part of the differentiation in a service organization which can create added value
for the customer.

PROCESS

The processes by which services are created and delivered to the customer is a major
factor within the services marketing mix as services customers will often perceive the
service delivery system as part of the service itself.

PHYSICAL
EVIDANCE

The exterior design can be utilized to communicate e.g. the history and values of the
respective institution. The use of color in combination with texture and finishes is
identified to be a simple but very effective factor of differentiation, helping to convey
particular messages to the customer and creating a special atmosphere affecting
employees and customers likewise.
33 | P a g e
Two types of graphics can be used to establish identity, marketing graphics and branding
graphics. While marketing graphics promote products and services, branding graphics
enhance brand image and should be used complementary with all marketing activities
(Grow, 2004).

MODERN MARKETING
CONCEPT

Starting point Focus Means End

Tar Cons Integ Custome

Class get umer rated r
ical Mar Nee Mark Satisfacti
eting on
ket ds

Indivi
Individual CustCustomer CRM Customer
CRM
Contemp dual omerExperience Loyalty
Customer
orary Custo Exper Customer
mer ience Loyalt
y

Need of CRM

To keep existing customers in the face of intense competition and

the higher comparative cost of acquiring new customers

Intense completion in the industry results in emphasis on

service quality as means of achieving competitive advantage

close and long term relationship with customers imply

continuing exchange opportunities with existing customers at a
lower marketing cost per customer

Good relationship with customers can result in a good word-of-

mouth publicity.
Service quality cracks can often be prepared over where good
relationships have existed previously

To pursue a customer centric strategy rather than a product centric

strategy
34 | P a g e
MODEL FOR CRM MARKETING

Customer’sCustomer
need Customer
Customer Customer retention &
Customer
assessmentneeds
& development
developmentthrough referring new
retention
acquisition
assessment personalization
through & andcustomer
referring
and customization
personalizatio new
acquisition n& customers
customization

Addition Relationshi High customer High customer

Addition of values with Relationship
of value
products & services marketing satisfaction
with p satisfaction
products
Contact & involvement Commitment
marketing Increased Increased market share
and
services
Intimacy & one to one Recognition
Commitme market share High customer loyalty
relationship
Contact and nt Respect High customer High customer retention
involvement
Price offers index
Recognition
Reward loyalty
Intimacy
Special facilities/services Life time customer
and one to Res High
Reciprocation
one customer
Information sharing pect
relationship retention
Transparency
index
Rew
Pr Share values
ic ard Life time customer
e
of Reci
fe
rs proc

Special atio
facilities/ser
vices n

Information Tra
sharing
nsp

are

ncy

Share
values

CRM involves the above shown process. First the customer needs are
identified and they are acquired. This is followed by development of
customers through customization and then steps are taken to retain the
customers.

(11) HNWIs
VS RETAIL
CLIENTS
 HNWIs
Individualized distribution
Individualized Message
Share of customer
Profitable customers
Customer retention
Individual customer
Customized offering
Focus on few but
Customers
Extra services
Proactive marketing
35 | P a g e
RETAIL
Mass distribution
Mass advertising
Share of market
All customers
Customer attraction
Average customer
Standard product
Focus on large number of
customers
Normal services
Reactive marketing
The above comparison shows that the strategy adopted for retail clients is different from
that of HNWIs depending on their values and profit they bring to the organization.

(12) MARKETING STRATEGY OF EDELWEISS IN KOLKATA

SEGMENTING, TARGETING AND POSITIONING

The company is segmenting the customers on the basis of demography. The various
categories are-

Age- the company is targeting only those people who are of 28yrs. of age and
above. This is to ensure that they have a sound understanding of stock market

Gender- Male clients are being targeted as it is the case with most of the families that
the male members’ trade and women don’t take much interest in trading. So they are
targeting the male clients

Educational qualification- The Company is looking for educated customers who can
understand the stock market and get the advice given by the company. As Edelweiss
is a premium broking firm so while it is catering to the retail clients but still it is
maintaining its image

Income level- the company is targeting people who have an annual income of
3lakhs and above. This ensures that they are able to invest in the stock market

CLASSIFICATION OF CUSTOMERS ON BASIS OF THEIR VOLUME &

LEVEL OF INVESTMENT

36 | P a g e
According to the above diagram the HNWIs are the customers whose volume is low but
their level of investment is huge so they are of much importance. As the volume of
customers decrease their level of investment increases that means that there are few clients
that account for most of the profits of the company.

The research and development wing has taken a center stage in the innovation process going
forward. The company is thus positioning itself as a premium broking firm as it basically
caters to HNI clients. It believes in providing quality service to its clients. Even as it enters
the retail segment, it is maintaining its premium image as is clear from the choice
segmentation of customers. It maintains a good client base and provides quality services to
them. The company is POD (Point of differentiation) is its quality Research and
development.

FACING THE
COMPETITORS

Flank attack is the strategy adopted by Edelweiss to attack its competitors. In this
strategy the company attacks on the competitor’s weak point. Here the company is
attacking the competitors on the basis of brokerage and research.

Few strategies recommended by Edelweiss

Our recommended strategy is to be overweight domestic-focused sectors: telecom,

industrials, consumer discretionary, and BFSI Our top large cap picks are Bharti, BHEL,
Crompton, Hero Honda, HDFC Bank, SBI, Sun TV and Suzlon.

EDELWEISS IN NEWS

SPONSOR OF ICL- Edelweiss is the sponsor of ICL and this will give it wider
coverage and help it build its brand. The technique for which Edelweiss is going is
Event sponsorship and this is an effective way to cover mass media.

TIE-UP WITH UNION BANK OF INDIA- to roll out Wealth Management Services
to cater its High Net worth Individuals (HNI) in Mumbai. Under the conditions of the
tie-up, Edelweiss will be contributing a whole range of wealth management products
and alternative investment options such as structures product, Real Estate Funds, Art.

Edelweiss is looking for long term customer base and for that reason it is trying to
understand the investment pattern of the customers and accordingly suggest them the
financial products matching their risk profile. While other companies are just selling their
products Edelweiss by conducting this survey is actually trying to understand the
investment needs of the customers.

37 | P a g e
OPPORTUNITIES BEFORE THE COMPANY

Strong economic growth, increased geographic penetration, growth of SMEs and the
increasing need for capital among Indian corporations are expected to continue
to drive India’s financial services industry.

The Company is already well established in domains such as investment banking.

Moreover, it plans to invest a large part of its IPO in prepaying of loans, enhance
margins with stock exchanges and establish new offices.

Huge untapped retail segment - the Company has a huge opportunity before it as it
has a vast untapped retail segment.

Increasing affluent class- The rise of the affluent class will aid the growth of the
company

The Indian financial sector carries immense growth opportunities, be it

investment banking, wealth management, insurance broking or any other
domain

The focus on diversity has already reduced the risk of client and product
concentration. With a continuous rise in number of HNIs, and the expansion of
capital markets, domains such as investment banking, PMS are likely to
experience outstanding growth

CHALLENGES BEFORE THE COMPANY

More people have sold the shares in the Indian share market than they bought in the
recent weeks. This has added to the fall of sensex to lower points.

Foreign investors have pulled out from stock markets leading to heavy losses in
stocks and mutual funds

Because of such uncertainty many people have started saving money in banks
rather than investing

Business Volatility- The business in which the company is in is very volatile and
keeps changing with the market situation. So to keep a good pace of growth is the
challenge that lies ahead

Competition- The competition is fierce among different market players and

standing in this situation is a challenge

Risk management- The business is prone to a high risk and minimizing risk is the
need of the time
People- The company should maintain the good working force that it has with it at
present and improve it to gain competitive advantage

38 | P a g e
 METHODOLOGY

Research
Research Methodology
Methodology

Consumer
Consumer profiling & Investment Comparative
Comparative Analysis Market Survey
Analysis Market Survey
profiling and
need analysis
Investment
need analysis

Questionnaire
Questionnaire Telephonically

Suggesting
Suggesting suitable De-mat Telephonically
De-mat account sale
products
suitable account
products sales

Sales & Existi Dorm

Sales &
distribution ng Existing ant Dormant
Distribution custoCustomers custo Customers
mers mers

KEY FINDINGS

(i)Consumer profiling and investment need analysis

The survey involved classifying the customers into three categories on the basis of
their risk appetite following the Jacob’s Model. According to this model
customers can be classified into three classes on the basis of their investment
preference.

AGG
RESSIVE CUSTOMERS:

10% 25%

6
5
%
 Bonds Stocks
Short
term

39 | P a g e
MODERATE CUSTOMERS CONSERVATIVE
CUSTOMER

Bonds Stocks Bonds Stocks Short term

Short
term

20% 3 2
0 5
50%
% %

50%
2
5
%

CONCLUSION

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. Many people
are unaware of the category they fall in. Like they think that they are
aggressive but do not invest that amount in stock market, then it is
important to tell them the right mix that they should have if they want
to be aggressive. If a person is considers himself o be conservative
then he should invest more in bonds as they guarantee fixed return.

RISK TAKING
ABILITIES OF
PEOPLE

LOSS WILLING TO INCUR ON INVESTMENT OF Rs.

100
Rs. Above 0
Rs. 10-20 -10
14%
4%
1
1
%
R
s
.

5
ZERO 36%

Rs. 1-5
35%

C
o
n
c
l
u
s
i
o
n

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
r
e
t
u
r
n
.

40 | P a g e
 DEMAT ACCOUNT SALES

Along with classifying the customers into various categories the de-mat was also pitched to them
especially to those customers who lacked in their investment in the stock market and did not had
the right combination of investments.

COMPARITIVE ANALYSIS
Edelweiss Sharekhan Motil ICIC Indiabulls
Religare India al I
Infoline Osw Dire
al ct

Brokerage Competitive competitive nominal high

nominal High low

Services Premium Good average average good Very good

average

Onlin Yes Yes yes yes yes Yes Real-

e time
tradi with with but quotes
ng excelle the no
nt most Streaming
Softwa preferr
re ed

Research Excellent good average average average Very

good average

Bra Not Ver average averagegood Excellent

nd good in y satisfactory
ima goo
Kolkat
ge a d

AMC Free Rs.400 Rs.325 Rs.300 Rs.325 Rs.500

Rs.500
for the

1st
year,
562

Dema Free Rs.725 Rs.300 Rs.550 Rs.425 Rs.500

t accou Around
accou nt Rs.750
nt
openi
charg
ng
es

Exposure 3-4 times 5 times 5-6times 3-4times 6-7times 3-5 times 6-

7times

INTERPRETATION

From the above table following conclusions can be drawn:-

When it comes to brokerage, Edelweiss is very competitive. Though there

are many firms that are offering very low brokerage to the clients, the
company has come up with its new prepaid plans in which the brokerage is as
low as 10 paisa. There are different plans depending on the trading volume of
the clients

Services offered by Edelweiss are premium and one of the best among all.

41 | P a g e
 Edelweiss has online trading platform that has live streaming quotes and
Express trade facility wherein the client can punch in the trade while looking at the
values of the stocks.

Research of Edelweiss is best among all its competitors and no one can beat
Edelweiss on that

The only point that is not in the favor of Edelweiss is low Brand equity in
Kolkata. The Brand image is not there in the minds of the people as the company is
new in Kolkata. So the company needs to work on it and establish a good brand image
as it matters a lot in this industry

From the above table it can be seen that ICICI and Sharekhan are its biggest
competitors. ICICI is the major competitor, the benefit that it enjoys is that the
customers can have their account I its bank so fund transfer is very easy. Besides it
has a very good brand image and people trust on that. This is the reason that despite
charging a high brokerage it is very popular among masses. Sharekhan is customer
friendly and its terminal is considered very fast. So Edelweiss needs to focus on these
two competitors.

COMPARITIVE MARKET SHARE OF EDELWEISS

12.71
17.19
15.81 6

6.93
27.69

13.67

Edelweiss Sharekhan ICICI Motilal

Oswal
HDFC Indiabulls others

ICICI is the market leader followed by Sharekhan. Edelweiss holds 6%

of the market
share and shows a bright potential of growth.
42 | P a g e
SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS

Q. Through which of the channels do you usually buy a financial product?

Internet Broker Direct from the company

5%
20%

75
%

Conclusion

When it comes to channels of buying a financial product most of the people prefer to buy
it from a broker as it is the most trusted source and they have a good market and product
knowledge. Many people like to inquire themselves directly from the company while 5% of
the people look for internet as a medium. This graph shows that broking business is a
profitable one as it attracts the large volume of potential customers

Q. What is your preferable tool of investment?

All Values In Percentage Term

40
36
35

30

25
25
22
20

15

10
7
5 5
5

0
Bank Deposit Real estate mutual fund Equity shares

Derivative Gold and

instrument bullion

Conclusion- When it comes to investing one’s 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
43 | P a g e
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.

Q. How did you come to know about Edelweiss?

40

35

30

2
5
39.4
2
0
2
1 2 7
5
0 .6
1 .3
0
12.7
5

0
Internet reference group By chance

Pr
in
t
a
n
d
el
ec
tr
o
ni
c
m
e
di
a

C
o
n
c
l
u
s
i
o
n

The above responses shows that most of the people came to know
about Edelweiss by chance while many through reference group. This
shows that the company needs to work a lot towards creating Brand
Awareness in Kolkata. Reference group is a good source of information
about the company.
Q. Are you aware of all the products
offered by Edelweiss?

All figures
are in
percentag
e term
 70

60

50

40
64
30

20 36

10

0
Yes No

Conclusion- 64% of the people are not aware of the products offered by
the Edelweiss.
In this category few of the respondents knew about the equity share
trading but were

44 | P a g e
not aware of all the products, while a large chunk of respondents had never heard of
Edelweiss.

Q. Have you used any Edelweiss financial product?

90

80

70

60

50

40 78.44
30

20

10 21.56
0
Yes No

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

Q. Which Edelweiss product are you using now?

5% mutual fund
10%
40%
De-mat

45% debentures

o
t
h
e
r
(
s
t
r
u
c
t
u
r
e
d

p
r
o
d
 u
c
t
)

Conclusion

From the response it can be seen that De-mat (equity shares) is the
highest selling product of Edelweiss followed by mutual fund. Of the
21.56% of people using Edelweiss
products nearly 50% prefer equity shares.

45 | P a g e
Q. Best company according to the respondents

35
30
30

25
21.44
20

15
10
7
12 . 5
1 5
0
6
5

6
4

4
0

C
o
n
c
l
u
s
i
o
n

30% of the respondents ranked ICICI Direct as the number one share
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.

Q. Factors affecting the

choice of a company

All figures
are in
percentag
e term
30
28

25
23
2
0
20
18
 15

1
0 8
6.89

3.5

0
Brand Innovation Services Dea Advance d Brokerage
Image Proximity ler R &D
with supp
re sidence ort

C
o
n
c
l
u
s
i
o
n

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. the reputation 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.

46 | P a g e
Q. Possible sources searched for financial product information

35%
32%
30%

25%

20% 19%
17%
15%
21% 1
10% 1
%
5%

0%

Conclusion

Most of the respondents 32% trust their friend’s advice when it

comes to financial product information especially in stock market. They
trust on their experience with the company and act accordingly.

ANALYSIS OF THE QUESTIONNAIRE FOR EXISTING

CLIENTS

Association with the company

6 months 1 year 2 years more than 2 years

8
%
11%

43%

38%

47 | P a g e
Conclusion

Most of the customers in Kolkata are newly acquired as the company is new.

Satisfaction level of the customers

50
45
40
35
30
25 49
20
15
32
10
5
11 8
0
Ex satisfied neutral dissatisfied
t
r
e
m
e
l
y
s
a
ti
s
fi
e
d

Conclusion

49% of the customers are satisfied and 8% dissatisfied. The company

needs to work on these customers and minimize their dissatisfaction.

Expe
ctati
ons
of
the
cust
omer
s
reduction in
brokerage

improved service
quality
more tips customer friendly norms

22%
34%
 13%

3
1
%

Conclusion

Most of the customers want the brokerage to be reduced and

services to be improved.

48 | P a g e
`ANALYSIS OF QUESTIONNAIRE FOR DORMANT CLIENTS

Reason for
disassociation
Liquidity crisis Alternate brokerage firm
lost faith in capital market temporary breaks

11
%
7
%

56%
26%

C
o
n
c
l
u
s
i
o
n

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.
49 | P a g e
 Attractive features of the competitors
low brokerage proximity to residence trained
people in desk good system support good research

3
%

32%
43%

10%
12%

Conclusion

Low brokerage is what attracts most of the customers. Besides

Edelweiss needs to improve its quality of service.

R
e
t
u
r
n
i
n
g

b
a
c
k
6 months-1year 2
year 2years
and more never

5%
8%

14%

7
3
%
Conclusion

8% of the customers say that they will never return back.

50 | P a g e
FINDINGS

Various aspects of selling strategy of Edelweiss- Selling strategy adopted by

Edelweiss is Relationship strategy, Mix of product centered and client centered
strategy . Besides analysis of the sales management process of the company has
been done. The method of approach adopted by salespersons to sell Edelweiss
products has been covered and the selling skills required have been found out.
Moreover attributes of the selling strategy of the company have been revealed.
Various aspects of the Distribution strategy of the company- under this the
findings are- Role of distribution channels, Various distribution channels of the
company, Innovative approach in distribution channel, Revealing the
distribution channel strategy of Edelweiss based on customer behavior
Various aspects of Customer Relationship management- under this the CRM
strategy of the company has been covered, Characteristics of services marketing
Difference between the ways of catering to HNWIs and Retail clients
Marketing strategy of Edelweiss in Kolkata- As the company is entering into
retail segment so the company’s new marketing strategy has been found out
Opportunities and challenges before the company- The various aspects of it has
been found out in this report
Competitor analysis- various competitors of the company have been found out to
know the position of Edelweiss and help it formulate the strategies
accordingly
Risk Taking Ability- The risk taking ability of people decrease with an
increasing age, people take more risks when they are young
Preferred channel for buying a financial product- Brokers- From the
analysis of the questionnaires it was found out that brokers are the preferred
channel for buying a financial product
Preferred tool of investment by the customers – The preferred tool of
investment was found out to be deposits as they have less risk
Awareness about the products of Edelweiss- It was found that people are not
aware of Edelweiss in Kolkata that much as about its competitor companies
Popularity of the Edelweiss products- Among the Edelweiss products equity is the
most preferred investment option
Factors affecting the choice of a company- Brand image and Brokerage play a
vital role when it comes to the choice of a company
Reliable source of financial information-People consider their friends to be a
good medium when it comes to knowing about financial products.
Satisfaction level of the customers- Majority of the Edelweiss customers are
satisfied from the service provided by the company.
Expectations of the customers- Customers expect the company to improve its
service.
Competitive advantage of Edelweiss over its rivals- Edelweiss’ competitive
advantage is its research and development department and online trading platform
that is user friendly.
Sales promotional strategy adopted by Edelweiss during the financial
turmoil-The company is going for aggressive advertisement campaign and
putting hoardings all over the place to create awareness.

51 | P a g e
 Customer base of Edelweiss- The customer base of Edelweiss is basically of
institutional clients
The findings are shown in detail in the analysis of the graphs and findings in the main
text.

CONCLUSION
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 with retail shops will help it a lot. The CRM strategy of the
company is different for Retail customers and HNWIs. When it comes to competitors ICICI
is its biggest competitor and the company lags behind when it comes to Brand Image.

RECOMMENDATIONS
Make the complaint process and complaint redressal process easy so that there is a
scope of improvement

Increase two way communications between the company and the client

If the customer complaints are handled properly they will again do business with the
company

There should be more number of brokers and sub- brokers so that they can tap a large
chunk of the customers
The company should work on building Brand image 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
The company should leverage on its research and aggressively use it to promote the
products
Special training about company products to sales team so that they create
awareness among the people
Edelweiss should leverage its competence not only for HNWIs but also for retail
and corporate clients

Bring student plan to attract the student especially from Engineering Medical and MBA
field to capture customer before others.

52 | P a g e
REFERENCES

www.edelcap.com
www.nseindia.com
www.edelweiss.in
www.google.com
www.wikepedia.com
Valuable insight provided by the company guide and the faculty guide

53 | P a g e
 QUESTIONNAIRE

Dear
Customer,

As a Management Trainee currently working with Edelweiss Securities I want to thank you
for giving us the opportunity to serve you. Please help us serve you better by taking a couple
of minutes to tell us about the service that you have received so far. We appreciate
your business and want to make sure we meet your expectations.

…………………………………………………………………………………………………
…………………………………
………
……

1. Annual Income

a) > 3 lakh b) 3 lakh- 5lakh

c) 5 lakh- 7 lakh d) 7 lakh and above

2. What are the possible sources that you search for financial product information
before making any decision?

a) Television/Radio b) Internet/Website

c) Newspaper/Magazine d) friends

e) Word of Mouth f) others, please specify

3. Through which one of the channels do you usually buy a financial product?

a) Internet b) Broker

c) Direct from the company d) others, please specify

4. What is your preferable tool of investment?

a) Bank deposits b) Real Estate

c) Derivative instruments d) Mutual funds

e) Gold and bullion f) Equity shares

5. How did you come to know about Edelweiss?

a) Internet b) Print and electronic media

c) Reference group d) By chance

6. Are you aware of all the products offered by Edelweiss?

a) Yes b) No

54 | P a g e
 7. Have you used any Edelweiss Financial products?

a) Yes b) no

8. Which Edelweiss Products are you using now?

a) Mutual Fund b) demat

c) Debentures d) others, please specify

9. How long have you been associated with Edelweiss?

a) Less than 1 month b) 1month-3month

c) 6-12 months d) more than 1 year

10. Evaluate the performance of following firms by ranking them on a scale in

ascending order

ICICI direct.com
Share khan
Motilal oswal
HDFC securities
Edelweiss
India Infoline
Religare
India bulls
5paise.com

11. Please indicate the level of importance regarding your decision factor in
buying a financial product in the following scales: 1-not important 5-extremely
important

1 2 3 4 5
Reputation of the company
Innovative products
Service of the firm
Proximity of firm with residence/office
Dealer support and guidance
Advanced research & development department

55 | P a g e
12. Please rate the overall performance of Edelweiss on following scales

a) Extremely satisfied b) Satisfied

c) Neutral d) less satisfied

e) Dissatisfied

13. Will you recommend Edelweiss products to your friends/family?

a) Yes b) no

14. If currently you are not using Edelweiss products and edelweiss further
enhances its products/services by adding your desirable features, will you buy it?

a) Yes b) no

15. Are you satisfied with Edelweiss’ current services in sales and distribution?

a) Yes b) no

16. What is your opinion about selling strategy of Edelweiss?

a) Excellent b) Above average

c) Average d) below average

17. In the current financial turmoil according to you what should be the sales
promotional strategy for Edelweiss?

a) Point of purchase display b) Aggressive add campaign in radio and

television

c) Through leaflet d) telemarketing

e) Personal selling

18. According to you what is the competitive advantage of Edelweiss over its
rivals?

a) Minimum cost b) Our quality of service

c) Quality of service providing persons d) easy availability of service

e) Diversified product portfolio f) Good research input

56 | P a g e
19. Personal Information

(i) Name:

………………………………………………………………………………..

(ii) Age: less than 25 25-35 35-45 45-55 more than 55

(iii) Gender: male female

(iv) Marital status: Married single

(v) Educational Qualifications: 10th pass 12th pass graduate post

graduate

(vi) Occupation: service business profess ion other, please specify

Phone no: Email id:

Signature:

57 | P a g e
FOR DORMANT CLIENTS

QUESTIONNAIRE

1. Why you are not associated with Edelweiss?

a) Liquidity crisis b) lost faith in capital

market c) Alternate brokerage firm d) temporary breaks

2. If you are associated with other firm, what are the features that attract you?

a) Low brokerage b) Good system support

c) Proximity to residence d) Research input

e) Trained people in the desk

3. What according to you is the weakness of Edelweiss?

a) Low brand awareness b) brokerage

c) Services d) others, please specify

4. You prefer to return back with Edelweiss in

a) 6 months b) 1 year

c) 2 years and more d) never

5. Which sector’s performance is best?

a) Equity b) mutual fund

c) Insurance d) portfolio

6. Do you support the transition of Edelweiss from niche to mass market?

a) Yes b) No

58 | P a g e
7. In which product did you faced the problem?

a) Equity and Derivatives b) Commodity

c) Portfolio d) E-broking

e) Any others, please specify……………………………………………………...........

8. Any suggestion that you would like to put forward by which Edelweiss can improve on
its services

……………………………………………………………………………………………………
………………………………
……………………………………………………………….

9. Personal Information

(i)Name:

(ii) Age: less than 25 25-35 35-45 45-55 more than 55

(iii) Gender: male female

(iv) Marital status: Married single

(v) Educational Qualification 10th pass 12th pass graduate post graduate

(v) Occupation: service business profess ion other, please specify

(vi)Contact Details:

Phone no: Email id:

Signature:

59 | P a g e
EXISTING CLIENTS

QUESTIONNAIRE

1. Since how long you have been associated with Edelweiss?

a) 6 months b) 1 year

c) 2 years d) more than 2 years

2. What are the products that you have opted from Edelweiss?

a) Equity b) Dematerialization

c) Insurance c) Portfolio management

e) Any other. (Please specify)………………………………………………….

3. As a customer, mention your level of satisfaction derived from Edelweiss. a)

Excellent b) Very good

c) Good d) below average

e) Poor

4. In current global turmoil scenario, what are your expectations from Edelweiss?

a) Reduction in brokerage b) Providing more tips

c) Improvement in service quality d) providing more lenient and flexible

Customer friendly norms

60 | P a g e
5. You would recommend Edelweiss to your

a) Family b) friends

c) Anyone without hesitancy d) no one

6. Your recommendation to make Edelweiss better?

……………………………………………………………………………………………….

7. Personal Information

(i)Name: ……………………………………………………………………………..

(ii) Age: less than 25 25-35 35-45 45-55 more than 55

(iii) Gender: male female

(iv) The marital status: Married single

(v) Educational 10 th
12th graduate post graduate
Qualification:

(vi) Occupation: service business profession other, please specify

(vii) Contact Details:

Phone no: Email id:

Signature:

61 | P a g e