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FEASIBILITY STUDY OF SALES AND SERVICES OF

EQUITIES AND DERIVATIVES IN UDAIPUR CITY

(A Summer Training Programme at)

Indiabulls
“You come first”

By
Mr. Ivish Sharma
MBA Student of Institute of Management Studies (Roorkee)
(Affiliated to Uttarakhand Technical University)

2009-2011

Under the Supervision of:

Mrs. Priyanka Sarkar


Senior Sales Manager

Indiabulls Securities Limited


44, Skydack Building, 1st Floor, Residency Road, Bhopalpura Math Marg, Udaipur
PREFACE

Training is a special significance for a M.B.A. student: it has a special role too. I learn to
tackle different real world management services.

The present study is an attempt to analyze about the sales and services of equities and
derivatives (in Udaipur city). I have done the presentation of my project report in mainly
five sections.

Chapter 1 – about the introduction of the “feasibility study of sales and services of
equities and derivatives in Udaipur city and about the industry profile.

Chapter 2 – covers the company profile it covers the Beating on India bulls, Promoters,
about the Business Model of the company, the Risk Management, Financial and
Competitors.

Chapter 3 – covers the Product and Services provided by the company, the Objectives
and Scope, Literature Survey.

Chapter 4 – covers the Research Methodology used in the study and about Data
Collection and interpretation. In that I went through the various graphs and tables and
analysis on these.

Chapter 5 – covers the Observations and Findings, Limitations, Recommendations,


Segmentations and Regarding Study.
ACKNOWLEDGEMENT

The enduring pages of the work are the cumulative sequence of extensive guidance and
arduous work. We wish to acknowledgement and express my personal gratitude to all
those without whom couldn’t have been reality. They have helped me with their guidance
and assistance in completing this project.

I would also like to take this opportunity to convey my respect and special gratitude
towards Mr. ANKIT VYAS (Branch Head, Online) who considered me worthy of
doing project in their esteemed establishment and never failed to satisfy my over-zealous
thirst to obtain information.

I feel very delighted to get this rare opportunity to show my profound senses of reverence
and indebtedness to all my esteemed training in charge Mrs.Priyanka Sarkar (Senior
Sales Manager) for their full support, cooperation, keen sustained interest, valuable
advice throughout the course of training which led my training to a successful
completion.

No language is ever adequate to express my gratitude towards my parents for their


dedicated and enthusiastic encouragement.

Last but not least I would like to thanks to all those who have directly or indirectly helped
and cooperated during project period.

Ivish Sharma

Dated:

Place: Roorkee
EXECUTIVE SUMMARY
TITLE
Feasibility Study of Sales and Services of Equities and Derivatives in Udaipur City.

1. BACK GROUND OF THE STUDY

This study is conducted for Indiabulls Securities Ltd. at Udaipur, by Pankaj Jain first
year of Master in Business Administration (MBA) student as requirement for partial
fulfillment for MBA.
Indiabulls is lead by a highly regarded management team that has invested Thousand Lac
of Rupee into a World class Infrastructure that provides there clients with real-time
service & around Clock i.e.24 Hrs. access to all information and products.

They have been guided by one underlying philosophy:

You come first.

2. Objectives

The objectives of the study include…

• To find out the scope of Equities and Derivatives in Udaipur city.


• To know what major factors effects or influence customer’s trading behavior.
• To study market potential for sales and services of Equities and Derivatives.

3. Research Methodology

The methodology includes collection of data with the help of structured questionnaire;
the data has been collected by interviewing around 100 clients.

4. Data collection & Interpretation

It includes cross tabulation of questionnaire by classification of responses and frequency


distribution and appropriate graphical representation question with comments.
5. Observations & Findings

Observation is related those issues only, which are not included and explored through the
questionnaire, it may not require a data support.

Findings are strictly based on the collected data, attempting to answer the objectives.

6. Limitation of the study

The study can be biased to the extent of personal perception, historical nature of data
collection and of the time limit.

7. Suggestion

Based on findings, suggestions were given in order to improve the communication


strategy and widen company’s market.
TABLE OF CONTENT

1. Title Page I

2. Preface 2

3. Acknowledgement 3

4. Certificate 4

5. Executive Summary 5

6. Introduction 7

7. Company profile 8

8. Organizational Structure 17

9. Product Profile 22

10. Objective & Scope 23

11. Literature survey 24

12. Research Methodology 30

13. Data collection & Analysis 35

14. Observations and findings 43

15. Suggestion and recommendation 44

16. Limitations 45

17. Conclusions 46

18. Bibliography “OR” References 47

19. Annexure (Questionaries)


INTRODUCTION

A stock exchange, share market or bourse is a corporation or mutual organization


which provides facilities for stock brokers and traders, to trade company stocks and other
securities. Stock exchanges also provide facilities for the issue and redemption of
securities, as well as, other financial instruments and capital events including the payment
of income and dividends. The securities traded on a stock exchange include: shares issued
by companies, unit trusts and other pooled investment products and bonds. To be able to
trade a security on a certain stock exchange, it has to be listed there. Usually there is a
central location at least for recordkeeping, but trade is less and less and less linked to
such a physical place, as modern markets are electronic networks, which give them
advantages of speed and cost of transactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to investors is by definition done in the primary
market and subsequent trading is done in the secondary market. A stock exchange is
often the most important component of a stock market. Supply and demand in stock
markets are driven by various factors which, as in all free markets, affect the price of
stocks (see stock valuation).

Equity derivatives are and alternative to trading the underlying security. The value of a
derivative product is directly correlated to the value of the underlying asset. Derivatives
are commonly seen as risky or speculative. However, these products can also be used for
hedging. That is, they can actually reduce the amount of risk that a trading position is
exposed to.

Today the world’s fastest growing economy India is one of the most exciting markets to
be in. infect, numbers show that more people visit Dalal Street in 2019 as compared to
Taj Mahal; it’s where the next big global photo-op exists. There is rapid transformation
and growth is come. The volumes increases plus the growth in Indian economy has led to
subscription where the Indian Stock market is very vibrant place.
COMPANY PROFILE

Evolution and Growth of Stock Exchanges in India –

Pre-Independence Period:

Emergence of the Stock Exchange

In India, business in loan securities of the East India Company was done towards the
close of 18th century. Bombay became the major centre of trading activity in securities.

This trading activity was unorganized and informal in nature. In Bombay, by 1830 some
bank shares also entered into the trading place. These shares included that of Commercial
Bank, Chartered Mercantile Bank, Agra Bank, Oriental Bank and Bank o Bombay.

Between 1840-50, there were half a dozen stock brokers in Bombay recognized by banks
and merchants.

By 1860 the number of brokers increased to 60.24 with the passing of Joint Stock
Companies Act in 1850, the number of companies involved in various types of trades
started growing.

Emergence of stock exchange in India has close links with the ‘Cotton Boom’,

That took place during 1860 to 1865 in Bombay

From 1861 to the beginning of 1865, speculation was key activity in Bombay’s securities
trading places.

Number of brokers dealing in securities, which stood about 60 by 1860 increased to 200-
250during the cotton boom period.

Between 1863-65, 25 new Banks, 69 financial

Associations, 7 land reclamation companies and 30 miscellaneous companies were


floated.
After 1865, a number of financial failures and problems in speculative activity led
brokers to form an association in 1875. “It was only the disaster that followed the boom,

Which brought the brokers together in July, 1875 to form an association that is today
called

“The Stock Exchange, Bombay”.

The experience was later followed at these

Centers, with stock exchanges being set up at Ahmedabad in 1894, at Calcutta in 1908, at
Indore in 1930, at Madras in 1937, and at Hyderabad in 1943 and at Delhi in 1947.

Since beginning, Bombay Stock Exchange is considered as the leader among Indian stock
exchanges. Therefore, trends and developments that have taken place at the Bombay
stock exchange or that are taking place there can be treated as broad indicators of
performance of stock exchanges in the country.

In brief, this can be stated that due to general distrust by the public of private business
and closed circle character of industrial entrepreneurship, the role of new issues and stock
exchanges remained on the periphery of private corporate sector financing and with the
absence of any meaningful role in industrial financing, the functioning and structure of
the institution of stock exchange became speculative activity oriented serving little the
saving and investment activity of community.

It is also worth mentioning that functioning, organization and management of seven out
present nineteen stock exchanges, including that of our five major stock exchanges-
Bombay, Calcutta, Delhi, Ahmedabad, and Madras, took shape during the period (pre
1948 period commented upon by the National Planning Committee) marked for absolute
Domination of speculative interests. Organization and management of major stock
exchanges formed during this period did not prove to be positive to the developments and
desirable changes later more particularly during the period of eighties.
Growth of Stock Exchanges in India

The Second World War broke out in 1939. It gave a sharp boom which was followed by a
slump. But, in 1943, the situation changed radically, when India was fully mobilized as a
supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities,
those dealing in them found in the stock market as the only outlet for their activities.
They were anxious to join the trade and their number was swelled by numerous others.
Many new associations were constituted for the purpose and Stock Exchanges in all parts
of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited
(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges – Delhi Stock and Share Broker’s Association Limited and
the Delhi Stocks and Shares Exchange Limited – were floated and later in June
1947,amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore
Exchange was closed during partition of the country and later migrated to Delhi and
merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.

Most of the other exchanges languished till 1957 when they applied to the Central
Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only
Bombay, Calcutta, Madras, Ahmedabad, Delhi, Hyderabad and Indore, the well
established exchanges, were recognized under the Act. Some of the members of the other
Associations were required to be admitted by the recognized stock exchanges on a
confessional bases, but acting on the principle of unitary control, all these pseudo stock
exchanges were refused recognition by the Government of India and they thereupon
ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India
(mentioned above). The number virtually remained unchanged, for nearly two decades.
During eighties, however, many stock exchanges were established: Cochin Stock
Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982),
and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association
Limited (1983), Gauhati Stock Exchange Limited(1984), Kanara Stock Exchange
Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986),
Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock exchange Association
Limited (1989), Saurashtra Kutch Stock Exchange Limited ( at Rajkot 1989), Vadodara
Stock Exchange Limited ( at Baroda 1990) and recently established Exchange
Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized Stock
Exhanges in India excluding the over the counter Exchange of India limited (OTCEI) and
the National Stock Exchange of India Limited (NSEIL).

PRESENT SENERIO:

At present there are functioning 19 stock exchanges, recognized by the government of


India.55 the functioning of the stock exchanges is managed and administered by the
governing body/board of the directors of the exchange. The governing body of stock
exchange is vested with wide powers. These powers include wide ranging discretionary
power also. The powers of governing body are to:

• manage and control the functioning of the stock exchanges;


• regulate trading in securities;
• fine, suspend or expel member and take such other disciplinary action as it dreams
fit;
• govern business conduct and relationship; if any, amongst members and between
members and non-member;
• make or amend any rules, buy laws, or regulations or suspend their operations
with the approval of the government;

(1) Interpret the rules, byelaws and regulations in its own discretion.

The list of the stock exchanges is as follows:

Established prior to 1980:-

• Bombay stock Exchange, Bombay


• Ahmedabad Share and Stock Brokers Association, Ahmedabad
• Calcutta Stock Exchange Association, Calcutta
• Madras Stock Exchange, Madras
• Hyderabad Stock Exchange, Hyderabad
• Delhi Stock Exchange, New Delhi
• Share Brokers Association (M.P. Stock Exchange) Indore
• Cochin Stock Exchange, Cochin
• Bangalore Stock Exchange, Bangalore, Established in Post – 1980 period:-
• Pune Stock Exchange, Pune
• Uttar Pradesh Stock Exchange, Kanpur
• Ludhiana Stock Exchange, Ludhiana
• Guwahati Stock Exchange, Guwahati
• Canara Stock Exchange, Manglore
• Magadh Stock Exchange, Patna
• Baroda Stock Exchange, Baroda
• Jaipur Stock Exchange, Jaipur
• Saurashtra Stock Exchange, Rajkot
• Bhubaneshwar Stock Exchange, Bhubaneshwar
• Ministry of Finance has recently granted recognition to two new stock exchanges
at Meerut and Coimbatore. These stock exchanges are yet to start functioning.
Growth Pattern:

The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only
frown just in number of exchanges, but also in number of listed companies and in capital
of listed companies. The remarkable growth after 1985 can be clearly seen from the
Table, and this was due to the favoring government policies towards security market
industry.

S.No. As on 31st December 1961 1971 1975 1980 1985 1991 1995
1. No. Of Stock 7 8 8 9 14 20 22
Exchange
2. No. Of Listed Cos. 1203 1599 1552 2265 4344 6229 8593
3. No. Of Stock issue of 2111 2838 3230 3697 6164 8967 11784
Listed Cos.
4. Capital of Listed Co. 753 1812 2614 3673 9723 32041 59583
(Cr. Rs.)
5. Market Value of 1292 2675 3273 6750 2530 11027 478121
Capital of Listed Cos. 2 9
(Cr. Rs.)
6. Capital per Listed 63 113 168 175 224 514 693
Cos. (4/2) (Lakh Rs.)
7. Market Value of 107 167 211 298 582 1770 5564
Capital per Listed cos.
(Lakh Rs.)(5/2)
8. Appreciated Value of 170 148 126 170 260 344 803
Capital per Listed
Cos. (Lakh Rs.)

Trading Pattern of the Indian Stock Market


Trading in Indian stock exchanges is limited to listed securities of public limited
companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non- specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot
delivery transactions “for delivery and payment within the time or on the date stipulated
when entering into the contract which shall not be more than 14 days following the date
of the contract”. The latter is permitted only in the case of specified shares. The brokers
who carry over the outstanding pay carry over charges (can tango or backwardation),
which are usually determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities
for his clients on a commission basis and also can act as a trader or dealer as a principal,
buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a
jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a
great amount of effort to modernize the Indian Stock exchanges in the very recent times.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high-powered Pherwani Committee, the National Stock Exchange
was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.
Trading at NSE can be classified under two broad categories:

a) Wholesale debt market and


b) Capital market.

Wholesale debt market operations are similar to money market operations –


institutions and corporate bodies enter into high value transactions in financial
instruments such as government securities, treasury bills, public sector unit bonds,
commercial paper, certificate of deposit, etc.

There are two kinds of players in NSE:

a) Trading members and


b) Participants.

Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players like
banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism,
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network.
The prices at which the buyer and seller are willing to transact will appear on the screen.
When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

• NSE brings an integrated stock market trading network across the nation.
• Investors can trade at the same price from anywhere in the country since inter
market operations are streamlined coupled with the country wide access to the
securities.
• Delays in communication, late payments and the malpractice’s prevailing in the
traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with the
support of total computerized network.

Unless stock markets provide professional zed service, small investors and foreign
investors will not be interested in capital market operations. And capital market being one
of the major sources of long-term finance for industrial projects, India cannot afford to
damage the capital market path. In this regard NSE gains vital importance in the Indian
capital market system.

COMPANY / ORGANIZATION STRUCTURE

Indiabulls is India’s leading Financial Services and Real Estate Company having over
640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000
customers with its wide range of financial services and products from securities,
derivatives trading, depositary services research & housing finance. With around 4000
Relationship Managers, Indiabulls helps its clients to satisfy their customized financial
goals.

Indiabulls Financial Services Limited was established in the year2000 by three promoters
all of whom are engineers from Indian Institute of Technology, New Delhi, and has
attracted over Rs. 700 million of investments from venture capital firms, private equity
funds and institutional investors. The investors include the proprietary fund of Mr. L.N.
Mittal-LNM India Internet Venture Limited, Transatlantic Corporation Ltd., Farallon
Capital Partners LP and Infinity Technologies Trustee Private Limited.

Indiabulls headquarter are co-located in Mumbai and Delhi, allowing us to access the two
most important regions for Indian financial Markets, the Western region including
Mumbai, rest of Maharashtra Gujarat and the Northern region, including the National
Capital Territory of Delhi, nearby cities, parts of Haryana, Uttar Pradesh and Punjab; and
access the highly skilled and educated workforce in Delhi; and back office, risk
management and internal finance are headquartered out of one central location in New
Delhi, allowing us to scale these process efficiently for the nationwide network. All the
back office work, transaction processing work and issuance of cheques takes place from
the New Delhi office enabling us to have better control and efficiency in the support
functions.

Promoters and Their Background

The company was established by three engineers from IIT Delhi, and has attracted
significant amount of investment from venture, private equity and institutional investors.
The details are as follows:-

Sameer Gehlaut, Chairman, CEO & Whole Time Director

Sameer, aged 30 years graduated with a Mechanical Engineering degree from the Indian
Institute of technology, Delhi. He has gained extensive experience in the Financial
Services sector and developed in-depth knowledge and strong understanding of all
aspects of the Securities Industry and Financial Services Business. Under his Leadership,
Indiabulls group has grown from one office, 310 clients, and 8 employees in FY 2000 to
32,359 clients, 70 office and 606 employees as on April 30, 2004.

Rajiv Rattan, President CFO & Whole Time Director:

Rajiv, aged 30 years, an NTSE Scholar, graduated with and Electrical Engineering
Degree from the Indian Institute of Technology, Delhi. He gained extensive experience in
international best practices, process management and risk management, which he brought
to Indiabulls Group as one of the founders of the company.

Saurabh Mittal, Director:

Saurabh, aged 30 years, graduated with and Electrical Engineering Degree from the
Indian Institute of Technology, Delhi. He worked a citigroup Asset Management as an
investment analyst, and is currently a senior portfolio manager at Farallon Capital. He has
developed and understanding of International financial markets and extensive experience
in the securities industry Saurabh is responsible for strategic decision-making and is the
director of the company.

Business-model:

Indiabulls has a low risk model largely based on fee/ commission income generated
through providing brokerage & related financial service to individual investor and
independent advisors. It focuses on a core client base of individual investors and the
marketing Associates who serve them. Indiabulls offers the following product and
services in the financial markets.

• Stock, Options and Futures


• Depository Services
• Commodities
• Insurance Products
• Mutual Funds
• Bonds and Debt Products

Indiabulls aims to develop other financial offerings such as accepting deposits services in
the FY 2004.

BUSINESSOVERVIEW

Indiabulls Financial Services Limited

Indiabulls Securities
Limited Indiabulls Insurance Indiabulls Commodities
Advisors Pvt. Limited Pvt. Limited

1. Equity & Deb Stock


Broking Insurance Product Distribution Commodities Trading
2. Depository Services
3. Derivative Broking Services
4. Equity Research Services
5. Mutual Fund Distribution
6. IPO Distribution

Risk-management:

Managing market risk on client position is critical for Indiabulls. The internet trading
application has a risk management logic built into that continuously marks to market the
client’s position and doesn’t allow the client to take a fresh position beyond the stipulated
limits. This risk management logic takes into account all the assets of the client (cash and
shares) updated real time, lying with us to get to an allowable exposure value. Margin
call alert are automatically generated and relayed to the cline and the administrators from
the system.

For the non-Internet part of the business, the back-office system provides the centralized
controls and risk management team with all information for generating margin calls and
managing the risk of the clients. CTCL software has been installed at branches to manage
risk at the time of order entry.

Risk Management Module:

The core of the application is the application server and risk management module, which
validates all orders placed by customers against the limits available to them as per our
risk management logic. This module accept and forwards to the exchange all orders that
pass the risk management criteria while rejecting any that do not meet them. This
component of the application is written in C and runs on the Tru-64 Unix platform with
interfaces to the Database.

Financial Services Limited and its group companies

• On behalf of Mr. L N Mittal , LNMIIVL paid Rs 89.16 crores to buy 8.2% stake
of Indiabulls

Credit Services Limited valuing the business at over Rs 1,100 crores.

• Consolidated Net worth of Indiabulls Financial Services Limited is Rs. 1,703


Crores, and total

Equity capital across various subsidiaries and associates is Rs2,107 crores.


Financial Services Limited, mobilized over Rs540 crores in share holder applications for
Reliance Petroleum Limited IPO in April 2006.

Indiabulls Financial Services Limited completed buy back of 18, 13,696 lac shares at an
average price of Rs 209.37 per share during the quarter.

Competitors:

• Karvy Computer share Private Ltd.


• G S Raheja Finance
• ICICI Securities Limited
• India Infoline Ltd.
• Indbank Merchant Banking Services Ltd.
• ShareKhan Securities
• Zuari Investments Kotak Mahindra SHCL
• Others……….

PRODUCT AND SEVICES PROVIDED BY INDIABULLS


Indiabulls is lead by a highly regarded management team that has invested crores of
rupees into a world class infrastructure that provides our clients with real-time service &
24/7 accesses to all information and products. Under flagship of Indiabulls Professional
Network it offers real-time prices, detailed data and news, intelligent analytics, and
electronic trading capabilities, right at your fingertips.

Indiabulls offers a full range of financial services and products ranging from Equities to
Insurance to enhance its customer wealth and hence achieve their financial goals.

Indiabulls Professional Network offers real-time prices, detailed data and news,
intelligent analytics, and electronic trading capabilities, right on customer’s fingertips.
This powerful technology is complemented by its knowledgeable and customer focused
Relationship Managers.

Putting Your Needs First That’s Investing at Indiabulls

Indiabulls’Relationship Managers are available to customers to help with your financial


planning and investment needs. To provide the highest possible quality of service,
Indiabulls provides full access to all products and services through multi-channels.

• Equities and Derivatives: Comprehensive services for independent investors,


active traders & Non-Resident Indians
• Indiabulls Equities Analysis: Premium research on 540+ companies updated
daily.
• Depository Services: Value added services for seamless delivery.
• Insurance: Take care of your life while you take care of business.
OBJECTIVE & SCOPE

Title: Study of market potentials for sale and services of Equities and Derivatives in
Udaipur city.

Objectives:

 To find priority level of customers


 To find out scope of equities and derivatives in Udaipur city
 To find the market potential for sales of equities and derivatives
 To find out the factors influencing Trading Behavior
 To check the awareness of customers about the services provided by India Bulls
LITERATURE SURVEY

MARKET POTENTIAL

Market potential is an estimate of maximum demand in a time period based on the


number of potential users and the purchase rate. Actual industry sales are usually less
than market potential For instance, the U.S. market potential for digital video disc players
could be defined as the total number of households with television sets based on typical
purchases of one unit per family, actual sales are less than potential because it takes time
to convince people to buy expensive items such as digital video disc players, and because
some can’t afford them. The industry purchase rates are a function of price levels,
promotional expenditures, and the number stores stocking machines.

Company sale potential is a portion under total industry demand. It is the maximum
amount a firm can sell in a time period under optimum conditions. Company sales will
generally be lower than industry sales. The ratio of company sales to industry sales is
measure of market share of the organization.

ESTIMATING POTENTIALS

All estimates of potential are based on two components-namely, the number of possible
users of the product / services and the maximum expected purchase rate. Sometimes we
can get estimates of these numbers from trade associations or commercial research
association, but we have to come up with our own potential figures broken down by
geographical area, industry, and customer type.

The easiest way to estimate the number of buyers is to use secondary sources. A wide
variety of commercial data are available that provide the potential number of buyers, size
of firms, age of consumers, income levels and locations,

Dun’s Marketing Services and SALES & MARKETING MANAGEMENT magazine sell
these data on diskettes for use with personal computers. We can also access potential
databanks through computer networks on a fee basis. Large firms often have their own
data banks that can be mined for potential information.

Purchase rates are usually derived from trade organization or government publications.
For existing products/ services we can use the ratio of current sales to the number of
households and sales per person. These ratios can be obtained from trade publications
such as those from the conference board, or calculated from published data. For example,
average demand per household could be derived by total industry sales for an area by the
number of households. In the case of new product/services, managers may estimate
conversion rates from experience with other items. If a similar product was sold to 4
percent of U.S. households during the first yea, this rate could be applied to obtain
demand estimates for new merchandise.

SERVICES

Services are deeds, processes and performances. The services offered by IBM are not
tangible things that can be touched, seen and felt but rather are intangible deeds and
performances. While we will rely on the simple, broad definition of services, we should
be aware that over time services and service sector of the economy have been defined in
subtly different ways.

“Services includes all economic activities whose output is not physical product or
construction, is generally consumed at the time it is produce, and provides added value in
forms (such as convenience, amusement, timeliness, comfort, or health) that are
essentially intangible concern of its first purchaser.”

Customer service:

It is provided be all types of companies – including manufacturers, IT companies and


service companies. Customer service is the service provided in support of company’s
core products.
Services marketing are different:

People who moved from marketing in packaged goods industries to marketing in health
care, banking, and other services industries found their skills and experiences were not
directly transferable. They faced issues and dilemmas in marketing services that their
experiences in packaged goods and manufacturing had not prepared them for. These
people realized the need for new concepts and approaches for marketing and service
businesses.

Services Marketing Mix:

Services marketing have seven P’s which includes all the four P’s PRODUCT, PRICE,
PLACE (distribution), and PROMOTION of traditional marketing mix.

The remaining three P’s are:

 People
 Physical evidence
 Process

I. PEOPLE: It includes all human actors who play a part in service delivery
and thus influence the buyer’s perception: namely the firm’s personnel, the
customer, and other customer in service environment.
II. PHYSICAL EVIDENCE: It includes the environment in which the service
is delivered and where the firm and customer interact, and any tangible
components that facilitate performance or communication of the service.
III. PROCESS: it includes the actual procedures, mechanisms, and flow of
activities by which the service is delivered – the service delivery and
operating system.
7 P’s Of Service Marketing Mix

PRODUCT

 Physical good features


 Quality level
 Accessories
 Packaging
 Warranties
 Product Lines
 Branding

PLACE

 Channel type
 Exposure
 Intermediaries
 Outlet Locations
 Transportation
 Storage
 Managing Channels

PROMOTION

 Promotion blend
 Sales people
 Advertising

o Targets
o Media types
o Types of ads

 Sales promotion
 Publicity

PRICE

 Flexibility
 Price level
 Terms
 Differentiation
 Discounts
 Allowances

PEOPLE

 Employees

o Recruiting
o Training
o Motivation
o Rewards
o Teamwork
 Customers

o Education
o Training

PHYSICAL EVI8DENCE

 Facility design
 Equipment
 Signage
 Employee dress
 Other tangibles

o Reports
o Business cards
o Statements
o Guarantees

PROCESS

 Flow of activities

o Standardized
o Customized
 Number of steps

o Simple
o Complex
o Customer involvement
RESEARCH METHODOLOGY

“A Research is careful investigation or inquiry, especially through search for new facts
in any branch of knowledge. It is a systemized effort to gain more knowledge.”

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. We study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods or techniques but also the methodology. Researcher always needs to
understand the assumptions underline various technique and they need to know the
criteria by which they can decide that certain technique and procedures will be applicable
to certain problems and other will not.

The predefined objective can be achieved by following ways:

o Studying the buying behavior of customer.


o Comparing sales of different players.

TYPE OF RESEARCH:

Personal interview approach was adopted for the project. In this type of research, the
researcher has to contact the person directly to know the available information and
analyze the data was available in interviewer’s statements. This was one of the main
sources for the project.

The other approach was PERSONNEL RESEARCH. It is based on the personal


knowledge. It is applicable to phenomenon that can be expressed in terms of words.

RESEARCH PROCESS:

Research Process consists of a series of action or steps necessary to effectively carry out
the research and the desired sequencing of these steps. The various steps, which provided
guidelines to the research process pertaining to the project, are as follows:

1) Formulating the research problem

Formulation of research problem involves understanding the problem thoroughly


and rephrasing the same into meaningful terms from an analytical point of view.

2) Extensive literature survey

It is necessary for the researcher to conduct an extensive survey connected with


the problem. For the purpose manual, company records, journals, published data
can be used.

3) Development of working hypotheses

Working hypotheses is a tentative assumption made in order to draw out and rest
its logical or empirical consequences.

4) Preparing the research design

The researcher will be required to prepare a research i.e. he will have to state the
conceptual structure within which research would be conducted. The function of
research design is to provide the collection of relevant evidence with minimum
expenditure of efforts, time and money.
5) Determining the sample design

The researcher must decide a way of selecting a sample or what is popularly


known as sample design. The types of sample design are:

o Simple Sampling
o Random Sampling
o Systematic Random Sampling
o Stratified Sampling
o Quota Sampling
o Cluster and Area Sampling
o Multistage Sampling
o Sequential Sampling
o Census

For this project, Random Sampling was used among the above-mentioned types.

Since the time period was limited to 2 months, the sampling size was limited to 75.

2) Collection of data

While deciding the methods of data collection to be used for study the researcher
should keep in mind two types of data viz.

Primary Data

The Primary Data are those, which are collected a fresh and for the first time and thus
happen to be original in character.

Secondary Data
Secondary data means data that are already available i.e. they refer to the data which
have already been collected and segregated by someone else. The researcher has to
determine the various sources of obtaining secondary data. Secondary data may be
published or unpublished in nature.

Published data are available in:

Publications of central, state and local newspapers

• Publication of foreign government or of international bodies


• Technical or trade journals
• Books, magazines and newspaper and Internet
• Public record and statistics, historical documents and sources of public
information.

Data Collection

Data used for the project was the secondary and primary data.

Methods of Data Collection

• Personal Interview
• Questionnaire &
• Telephonic Interview.

3) Analysis of data

Analyses of data can of two types:

• Quantitative analysis
• Qualitative analysis

Thus analysis of data require a number of closely related operations such as


establishment of categories, the application of these categories into raw data through
tabulation, chart and then draw inferences. Analysis work is generally based on the
computation of various percentage, co-efficient etc. by applying various statistical
formulae.

4) Preparation of Reports

After analysis, the next step is in the preparation of the report. The report has been
prepared according to the report writing principles.

The Objective, clarity in presentation of ideas and the uses of charts have been
maintained throughout the report.

Once the data has been collected, the researcher has to process, analyze and interpret
the same. It was emphasized that the researcher should exercise good care to ensure
that reliable data are not properly processed and analyzed. Sufficient attention is often
not given to these aspects, with the result that the quality of the report suffers.

Editing – The first task in data is editing. It is the process by which data are prepared for
subsequent coding. As it is very subjective process, editing is the process of examining
errors and omission in the collected data and making necessary in the same this is
desirable when there is more inconsistency in the responses.

Coding – Coding is the procedure of classifying the answers to a question in meaningful


categories the symbol used to indicate the categories are called codes. Coding is
necessary to carry out the subsequent operation of tabulation and analyzing data.

Coding involves two steps:

Tabulation: Tabulation comprises of sorting of data into different categories and


counting the number of cases that belongs to each categories.

One is unvaried tabulation. This includes the numbers of responses to one question or to
count. It’s very simplest way to tabulate where two or more variables are involved in
tabulation. It is called vicariate or multivariate tabulation. In marketing research project,
generally both type of tabulation is used.

Analysis and interpretation: Analysis and Interpretation are the central steps in the
research process. The goal of analysis is to summaries the collected data in such a way
that they provide answer to questions that triggered while research. Interpretation is the
research for border, meaning of research finding.

Hence, questionnaire was analyzed separately and interpretation was done to bring
meaning and implication of the study. Hence analysis could not be completed without
interpretation and interpretation cannot proceed without analysis.

DATA COLLECTION & ANALYSIS

Table 1. EXISTING TRADERS OR BROKERS

Response ISL ICICI OTHER


No. of respondent 38 42 20
EXISTING TRADER OR BROKER

45
40

NO. OF RESPONDENTS
35
30
25
20
15
10
5
0
ISL ICICI OTHERS
RESPONSE

INTERPRETATION:

The above graph shows that 42% customer’s shows interest in dealing with ICICI and
38% customers shows interest in dealing with Indiabulls. The rest were attached with
other service providing institutes.

Table 2. INVESTMENT CRITERIA OF CUSTOMERS

FIELDS EQUITIES DERIVATIVES OTHERS


NO. 40 52 8
RESPONDENTS
INVESTMENT CRITERIA OF
CUSTOMERS

40 EQUITIES
DERIVATIVES
OTHERS
52

INTERPRETATION:

From the above graph we can analyze the priority level of the customers in
investing different markets. 52% customers gave priority to do investment in derivatives
marker, 40% liked to invest in equities, but a very low % showed their interest to invest
in others like: funding etc.
Table 3. TYPE OF TRADING

Response Intraday Cash Margin


No. of respondents 33 49 18

TYPES OF TRADING

60
NO. OF RESPONDENTS

50
40
30
20
10
0
Intra day Cash Margin
RESPONSE

INTERPRETATION:

The above graph shows the comparison between different types of trading. The mass %
of customers shows their interest to trade in cash as it is 49%. The 33% of customers
liked to trade in intra day but very less % was seen to do trading on margin.
Table 4: AGE FACTOER INFLUENCING INVESTMENT IN EQUITIES AND
DERIVATIVES

AGE GROUP 18-25 25-40 40-55 ABOVE 55


NO.OF 10 55 25 10
RESPODENTS

AGE FACTOR INFLUENCING


INVESTMENT IN EQUITIES AND
DERIVATIVES

60
RESPODENTS

50
40
NO. OF

30
20
10
0
18-25 25-40 40-55 ABOVE 55
AGE GROUP

INTERPRETATION:

The above analysis shows that 55% of people invest between the age group of 25-40,
which indicates that the age is big factor which influence the customer’s trading behavior.
Table 5: PURPOSE OF TRADING

Response Investment Earring Financial support Professiona others


l
No. of 38 17 27 9 9
Respondents

P U R P O S E OF T R AD IN G

40
35
NO. OF RESPONDENTS

30
25
20
15
10
5
0
Investm ent E arring Financ ial P rofes s ional Others
S upport
RES P ONS E

INTERPRETATION:

From the above graph it is seen that ‘purpose’ of trading is an another major factor which
influence the customer’s trading behavior.

We can see that

 38% of people do trade for the purpose of investment.


 27% people like to trade for the purpose of earnings.
 17% want financial support $
 Rests 9% do trade for professionalism.
Table 6: FREQUENCY OF TRADING

Response Daily Alternative day Twice a week Weekly monthly


No. of 20 25 13 15 27
Respondent
s

Freuency of trading

30

25
No. of respondents

20

15

10

0
Daily Alternative Twice a week Weekly Monthly
day
Response

INTERPRETATION:

Habit of trading is also a big factor which influence the customer’s trading behavior. The
above graph shows that:

 25% people like to trade alternative day,


 20% daily,
 13% twice a week,
 15% weekly,
 But major %( i.e. 27) shows their interest to trade monthly.
Table: SATISFACTION LEVEL OF CUSTOMERS

Response Yes No
No. of Respondents 69 31

satisfaction level of customers

31%

Yes
No

69%

INTERPRETATION:

This diagram shows the satisfaction level of customers about the services provided by the
Indiabulls,

69% people were satisfied with the services provided by the Indiabulls & a very least %
of customers i.e. 31% were unsatisfied.

Table 8: PLANNING TO ATTACH WITH INDIA BULLS


Response Yes No Cannot say
No. of respondents 48 25 27

planning to attach with indiabulls

27%

48% Yes
No
Cannot say

25%

INTERPRETATION:

The above graph shows the planning of the customers about the joining Indiabulls.

 48% people respond positively,


 25% people said No,
 27% people said ‘can’t say’.

OBSERVATIONS AND FINDINGS


Findings:

 Investment in equities and derivatives is mainly done by the age group of 25-40
 It is found that main goal of trading is earning rather than investment.
 49% of customers like to trade in F & O, 33% in intra day & rest in Delivery
 Almost 69% of customers are satisfied with the services provided to them.
 Major group of customers will have to invest in ICICI than in INDIABULLS.
 52% of customers prefer to invest in derivatives, 40% in equities & rest in others.
 48% of people shows positive attitude in joining INDIABULLS.

Observations:

 In Udaipur most prospects trust brand, which are i.e. local broker for trading of
Equities and Derivatives.
 There are problems in availability of services regarding to the tips, which is given
to the customers.
 In some areas like: small customers, Relatives of the brokers etc. the demand of
the service provided by Indiabulls is very low.
 Services (Tipping/ Funding/ A/c information) for Customer is more important as
compared to make them Customer.
 After giving the good departments in one office there is always a conflict between
both the departments. (Because the work of both departments is same in Online
and Offline.)
 There is also no proper database for the employee about the customers so it
derives conflict between the employees about their prospective customers.

SUGGESTION & RECOMMENDATION


 Exiting customers should be provided better response & services so that by there
good Word Of Mouth Company will get more customers.
 Advertisements should be given in the magazines related to Business,
Management service, Electronics media, and business world or by installing stalls
in different-different areas etc.
 Awareness should be created among the prospective clients.
 Most of the respondents inquired about the conformation of the branch office of
India bulls in Udaipur because up to yet most of the companies have their
franchise office or brokers there. So it requires doing advertisement there on large
scale.
 Office space requirement:

• Min.1000 sq feet (for each Department)


• Different office for both online and offline department.

LIMITATIONS
Certain limitations have been encountered while doing this project due to which the
information collected and conclusion that was arrived on may have some variance.

Following constraints were encountered while doing the project:

 Respondents were not ready to give appointments.


 Data had to be collected according to the convenience of the respondents and
therefore time management became a major hurdle.
 People because of lack of time did not answer some of the questions properly.
 We were asked to target only a few area of Udaipur, so our sample size was small.
 Some of them thought by filling questionnaire they would get some calls from
company, which is very difficult to tackle.
 It was seen that sometimes the respondent’s post-pond a meeting by extending the
date even after fixing an appointment, it made things difficult.

CONCLUSION
After research it was found that there is good potential market available for Indiabulls in
Udaipur to venture into.

The reason for this is:

 Few competitors
 Untapped / Growing market
 India’s biggest Marble market.
 Most of existing companies are charging high rates on the service provided by
them.
 It is first branch office of any share trading company.

Indiabulls has a good chance to capture the market as the company is having USPs and
technology, which other companies are not providing.

BIBLIOGRAPHY
1. “Marketing Management”- Philip Kotler (11th edition)

2. “Marketing Research”- M.V. Kulkarni

3. “Sales Management”- Douglas J. Dalrymple, William

L. Cron & Thomas E.Decarolo

4. “Services Marketing”- Valarie A. Zeithaml & Mary J

O Bitner (3rd edition)

5. “Financial Management”- I.M. Pandey

Help taken from the following Websites:

1. www.google.com
2. www.indiabulls.com
3. www.bulfins.com

QUESTIONAIRE

Demographic Data
Contact Person: ________________________________________

Address:_____________________________________________

Designation: ________________________________City:____________________

Phone No.:_________________ Fax:_______________ E-mail:__________________

Website: ______________________

1. Existing broker:

ISL ICICI Other (Local Broker)

2. From how many years you are dealing with your Existing Broker?

_______________________________________________________________

_______________________________________________________

3. In which you prefer to do investment?

Equities Derivatives Other

4. What type of trading you prefer to do?

Intraday Delivery Based F&O

5. What age group is best for the investment according to you?

18-25 25-40

40-55 Above 55

6. What is your purpose of trading?

Investment Financial Support Earning


Profession Other

7. What is the frequency of your trading?

Daily Alternative Day Twice a Week

Weekly Monthly

8. Are you satisfied with the service provided by the Indiabulls?

Yes No

9. Are you planning to attach with Indiabulls?

Yes No

Can’t Say

If Yes, Why? ___________________________________________

If No, Why? ____________________________________________