Project Title

SALES AND DISTRIBUTION STRATEGIES OF

EDELWEISS: OPPORTUNITIES AND
CHALLENGES

Summer Training Project Report submitted in partial fulfillment of the

requirements for the award if the degree of
Master in Business Administration
By
JUHI AGARWAL
ROLL NO. 1451770025

UNDER THE GUIDANCE OF

MR. RAVI SHANKAR

Kailash Institute of Pharmacy & Management, Gorakhpur

Affiliated to Uttar Pradesh Technical University. UP

DECLARATION BY THE STUDENT

I Juhi Agarwal sRoll No. 1451770025 declare that the project entitled SALES AND
DISTRIBUTION

STRATEGIES

OF

EDELWEISS:

OPPORTUNITIES

AND

CHALLENGES is my own work conducted under the supervision of MR RAVI SHANKAR as a

partial fulfillment of Summer Internship Program for the course of MBA submitted Kailash Institute
of Pharmacy & Management, Gorakhpur.
I further declare that to the best of my knowledge the project does not contain any part of any work
which has been submitted for any other project either in this institute or in any other without proper
citation.

Place :
Date :

Signature of the Candidate

ACKNOWLEDGEMENT

I would like to extend my deepest gratitude towards those respected people who helped me to make
this project possible. I would like thank my mentor and guide at EDELWEISS Mr. Ravi Shankar
for extending his help that he has given me while making this project. Without his efforts and
vigilance this project would not have been possible. Sir I sincerely thank you for your relentless
efforts towards me. I would also like mention my sincere thanks to all the officials present at
EDELWEISS because they also played an integral part in making this project possible. Their support
and confidence in me always guided me and motivated me.

Lastly , I would like to thank my college Kailash Institute of Pharmacy & Management,
Gorakhpur. for giving us a prospect to experience such hands on training and extensive practical
learning as an extension and application of the theoretical learning we have gained so far , as a part of
our curriculum. This has resulted in immensely valuable knowledge that would be taken from the
institute.

TABLE OF CONTENTS
3

SN.NO.

CONTEN
T

PAGE NO.

1.

Executive Summary

2.

Introduction to the topic

3.

Purpose

4.

Scope

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
Findings about the Distribution strategy
Findings about the CRM strategy

22
26
32
36

Strategy of Edelweiss in Kolkata

10.

Primary Data analysis

Consumer Risk Analysis
Competitor Analysis
Questionnaires analysis

39
41
43

11.

Key findings

51

12.

Conclusion

52

13.

Recommendations

52

14.

References

53

15.

Annexure- Questionnaires

54

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 customers 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 rod 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.

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
Competitors 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

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 todays 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 longterm bonds. As a result the customer starts identifying and associating him with the product,
prefers and accepts the companys 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 me 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 customers 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 companys 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 companys 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 companys 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.

PURPOSE
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 its 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

10

SCOPE

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
companys 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.

11

LIMITATIONS

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 dont 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.

12

Secondary Data
Database given by the company
Websites of the company and books
Journals and magazines

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.

13

Sampling Area:
The area of the research was area Lucknow, 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.

14

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.

15

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

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

16

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 ma rk e t a ft e r commod ities ma rk e 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

17

through a trading member of a stock exchange if they intend to buy or sell any security 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.

NSE

BROKE
B

CLIEN

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, 2015)

18

SN NO. STOCK EXCHANGE

TOTAL NO.

NO.OF

CORPORATE

OF STOCK

CORPORAT

BROKERS AS

BROKERS

E BROKERS

19

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.

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

20

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

21

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 companys Equities Broking division has now expanded to include 215
stocks in 19 sectors accounting for 70 percent of market capitalization
Alternate Asset Managements 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

22

Awarded as Best Merchant Banker by the Outlook Money NDTV Profit Awards,
2008
Ranked among the top ten players in Annual Bloomberg and Annual ThomsonReuters
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
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

23

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

24

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.

25

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

26

Agency
based

SERVICES

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.

27

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 brokers 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.
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 doesnt 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, t he y are adjusted in their account.
Just like a bank passbook or statement,

the

DP

provides

with

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

22%

individual clients

periodic

78%

GROWTH STRATEGY

The Companys 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.

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 firms 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
1.

Stress on research and development

of product

Client-centered selling
1. Stress on research and development of
relationships with clients

2.

Emphasis on knowledge of product

2. Emphasis on knowledge of customers

3.

Influenced b y p a s t performance of
products
and competition
and
present situations

3. directed more to consideration of future

Growth and developments in the client
World

4.

Seeks to be accepted as a reliable,

credible source of information and
service

4. seeks to raise clients expectations of

Personal excellence

The strategy of Edelweiss is a mix of product centered and client centered

strategy.
(2) EDELWEISSS SALES MANAGEMNET PROCESS

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 Companys 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
communication and client queries are always welcomed.

i.e.

it

AIDAS THEORY OF SELLING

ATTENTIO

ATTENTION

DESIRE

N INTEREST DESIRE

is

two

way

ACTION
ACTION

Seek the attention of the prospect client

Maintain the attention by creating interest

Create desire in customers mind to buy the product

Induce the client to buy the product

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.

(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

(wholesalers,

constitute
retailers,

the

added

agents,

value
brokers)

of
are

distribution. Distributors
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 levelsZero 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

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.

distribution
development

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

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:

Regional
Head

Area Sales
Manager

Team leaders

Fixed cost
agents

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)-

DSAs are working for the company but they have no profit

participation. They are given commission on the basis of account clients under Edelweiss. The
DSAs 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 DSAs 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 companys sales.
Free Accounts- The rediffmail users who registered in our site get free account(post paid) and
one month free trade.

(6) CHANNEL MANAGEMENT TASKS

Design of channel structure Ex an

Distribution channel strategy

Channel objectives
Activity finalization
Activity organization
Developing Policy
guidelines

Ex-ante phase

Establishing the channel

Motivating the channel members

Ex po

Ex-poste phase

Resolving conflicts among

channel members

Managing the distribution channels is an important task. It involves two phasesmanaging 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.

(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
PUSH FORCE

PULL FORCE

Financially
unaware/unsure

sales force

Financially aware/unsure

Telemarketing, media
Advertising

Financially astute/sure

Financial media

Telephone, internet

Financial niches

Recommendations,
historical relationships

Face to face, telephone

(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

relationships

relationship
by

is

aimed

at

creating

strong

long

lasting,

fruitful

developing long-term bonds. As a result the customer starts

identifying and associating him with the product, prefers and accepts the companys 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,

responsibility, Long term.

Inseparability,

Perishability,

Heterogeneity,

Fiduciary

SERVICES MARKETING TRIANGLE

FIRM
Internal marketing

External Marketing

EMPLOYEES

CUSTOMERS
Interactive Marketing

According to Grnroos the internal marketing has to be managed by the companys

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

3PS OF SERVICE MARKETING

Coming to the Marketing Mix generally there are 4Ps (PRODUCT, PRICE, PLACE,
PROMOTION) but when it comes to services marketing 3ps 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.

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
CONCEPT

MARKETING

Starting point

Classical

Contemporary

Target
Market

Individual
Individual
Customer
Customer

Focus

Means

Consumer
Needs

Integrated
Marketing

Customer
Customer
Experience
Experience

CRM
CRM

End
Customer
Satisfaction

Customer
Customer
Loyalty
Loyalty

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

MODEL FOR CRM MARKETING

Customer
needsneed
assessment
Customers
and
acquisition &
assessment

acquisition

Addition of value with

products of
andvalues
serviceswith
Addition
products & services
Contact and involvement
Contact & involvement
Intimacy and one to one
relationship
Intimacy
& one to one

Customer development
Customer
through personalization &
development
customization
through

Customer retention
retention and
Customer
referring new
customers
& referring
new
customer

Relationship marketing
Relationship
Commitment
marketing

High customer satisfaction

High customer
Increased market share High
satisfaction

Recognition
Commitment

customer loyalty
Increased
market
share
High customer retention
index customer
High

Respect
Recognition

relationship
Price offers

Reward
Respect

Price offers
Special facilities/services

Reciprocation
Reward

Special
Information sharing
facilities/services

Transparency
Reciprocation

Information sharing

Share values
Transparency

loyalty
Life time customer
High customer
retention index
Life time customer

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 profitable
Customers
Extra services
Proactive marketing

RETAIL
Mass distribution
Mass advertising
Share of market
All customers
Customer attraction
Average customer
Standard product
Focus on large
customers
Normal services
Reactive marketing

(12) MARKETING STRATEGY OF EDELWEISS IN KOLKATA

number

of

SEGMENTING, TARGETING AND POSITIONING

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

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 competitors 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 tieup, 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.

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 Indias 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

investment

sector

carries

immense

growth

opportunities,

be

it

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

METHODOLOGY
Research Methodology

Research Methodology

Consumer
& and
Investment
Consumerprofiling
profiling
need
analysis
Investment
need
analysis

Suggesting
suitable
Suggesting
suitable
products
products

Comparative
Analysis
Comparative
Analysis

De-mat
account sale
De-mat
account
sales

Sales
& &
Sales
Distribution
distribution

Market Survey
Market
Survey

Questionnaire
Questionnaire

Existing
Existing
customers
Customers

Telephonically
Telephonically

Dormant
Dormant
customers
Customers

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 Jacobs Model. According to this model customers can be classified
into three classes on the basis of their investment preference.

AGGRESSIVE CUSTOMERS:

10%

25%

65%

Bonds

Stocks

Short term

MODERATE CUSTOMERS

Bonds

Stocks

20%

Short term

30%

CONSERVATIVE CUSTOMER

Bonds

Stocks

Short term

25%
50%

50%

25%

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. 10-20
11%

Above Rs. 0
4%

ZERO
36%

Rs. 5-10
14%
Rs. 1-5
35%

Conclusion
While classifying people under the three categories, it was seen that most of the
customers were conservative i.e. they were not willing to take any risk when it comes to
investment. Only 4% people were aggressive and ready to take risks to maximize their
return.

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

Religare

India
Infoline

Brokerage

Competitive

competitive

nominal

high

nominal

High

low

Services

Premium

Good

average

average

good

Very good

average

Online
trading

Yes with
excellent
Software

yes

yes

Research

Excellent

Brand
image

Not good
in
Kolkata

Very
good

average

average

good

Excellent

satisfactory

AMC

Free for
the
1st
year, 562

Rs.400

Rs.325

Rs.300

Rs.325

Rs.500

Rs.500

Demat
account
charges

Free
account
opening

Exposure

3-4 times

Yes with
the most
preferred
good

Rs.725

5 times

average

Rs.300

5-6times

average

Rs.550

3-4times

INTERPRETATION
From the above table following conclusions can be drawn:-

Motilal
Oswal

yes

average

Rs.425

6-7times

ICICI
Direct

Indiabulls

Real-time
Yes
but
no
quotes
Streaming
Very good

Around
Rs.750
3-5 times

average

Rs.500

6-7times

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.
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
27.69

6.93
13.67

Edelweiss

Sharekhan

ICICI

HDFC

Indiabulls

others

Motilal
Oswal

ICICI is the market leader followed by Sharekhan. Edelweiss holds 6% of the market
share and shows a bright potential of growth.

SALES AND DISTRIBUTION QUESTIONNAIRE ANALYSIS

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

20%

Broker

Direct from the company

5%

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

5
mutual fund

Bank Deposit

Real estate

Derivative
instrument

Gold and
bullion

Equity shares

Conclusion- When it comes to investing ones income 36% of the people prefer to be on
the safer side and avoid risk by investing in the bank deposits. The next option is mutual funds as
they are comparatively risk free. Equity shares are the next best option according to the
respondents. So it can be said that most of the people prefer risk-free return. While a 22% of
graph shows that equity shares are considered as a good option by the investors due to their high
return.

Q. How did you come to know about Edelweiss?

40
35
30
25

39.4

20

27.6

15
10

20.3
12.7

reference group
Internet

By chance

Print and
electronic media

Conclusion
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 percentage 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
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?

10%

mutual fund

5%
40%

45%

De-mat
debentures
other(structured
product)

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.

Q. Best company according to the respondents

35
30

30

25

21.44

20
15
10

10
12

7.56

6 5

Conclusion
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 percentage term
30

28

25

23

20

18

20

15

10

6.89

3.5

Innovation Services
Brand
Image

Proximity Dealer
with
support
re sidence

Advance d Brokerage
R &D

Conclusion
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.

Q. Possible sources searched for financial product information

35%

32%

30%
25%

21%

19%

17%

20%

11%

15%
10%

5%
0%

Conclusion
Most of the respondents 32% trust their friends advice when it comes to financial product
information especially in stock market. They trust on their experience with the company and act
accordingly.

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%

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

49

25
20

32

15
10

11

0
Extremely
satisfied

satisfied

neutral

dissatisfied

Conclusion
49% of the customers are satisfied and 8% dissatisfied. The company needs to work on these
customers and minimize their dissatisfaction.

Expectations of the customers

reduction in brokerage
improved service quality
more tips
customer friendly norms
22%

34%

13%

31%

Conclusion
Most of the customers want the brokerage to be reduced and services to be
improved.

`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%

Conclusion
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.

Attractive features of the competitors

low brokerage
good system support

proximity to residence
good research

trained people in desk

3%
32%

43%

10%
12%

Conclusion
Low brokerage is what attracts most of the customers. Besides Edelweiss needs to improve
its quality of service.

Returning back

6 months-1year

5%

2 year

2years and more

never

8%

14%

73%

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

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 companys 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.

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.

REFERENCES

www.edelcap.com
www.nseindia.com
www.edelweiss.in
www.google.com
www.wikepedia.com
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