Final Report @ Mohit

8/14/2019 Final Report @ Mohit

1/90

[1]

Analyzing Market PotentialFor Franchisee Acquisition

Name of the company: Motilal OswalConnaught Place (New Delhi)

NAME : MOHIT CHOMAL

ENROLLMENT NO. : 08BS0001770

IBS,NOIDA

SUMMER INTERNSHIP PROGRAMFINAL REPORT


2/90

FINAL REPORT

ON

Analyzing Market Potential

For Franchisee Acquisition

By

MOHIT CHOMAL

A Report submitted in partial fulfillment of the

requirements of

MBA program of ICFAI Business School, Noida

Submitted To

MR. RAKESH SHARMA

Company Guide

Motilal Oswal, Connaught Place, New Delhi

Prof. Y.P.GUPTAFaculty Guide

ICFAI Business School, Noida

[2]


3/90

TABLE OF CONTENTS

S.No. Topic Page

No.

Authorization 4

Acknowledgment 5

Executive Summary 6

Chapter 1 Overview Of Industry

1.1 Broking Industry Insight 3

1.2 Major developments in equity brokerage industry in India 7

1.3 Growth Driver of Equity Market 9

1.4 Market Analysis of Broking Business 10

1.5 Major players in the industry 12

Chapter 2 Introduction to the Project

2.1 Need for the Project 14

2.2 Objectives of the project 15

2.3 Scope of the project 16

2.4 Limitations of the Project 16Chapter 3 Introduction of Motilal Oswal

3.1 History 19

3.2 Motilal Oswal Products & Services 20

3.3 Business Acquisition Group 27

[3]


4/90

3.4 Competitor Analysis 28

Chapter 4 Research Methodology

4.1 Methodology used for this Project 34

Chapter 5 Data Analysis

5.1 Main Broker & Sub broker Analysis 45

5.2 Detailed Analysis of the Questionnaire 47

5.3 Cross Tab Analysis 59

5.4 Prospects Generated for Motilal Oswal Securities Ltd. 66

5.5 Micro Profiling of the best Prospects 68

Chapter 6 Recommendations

6.1 Recommendations 73

6.2 Conclusion 74

Annexure

Survey Questionnaire 76

Appendix

Bibliography 80

[4]


5/90

LETTER OF AUTHORIZATION

This is to certify that this Marketing Research report, title Analyzing the Market

Potential for Franchisee Acquisition is the bonafide work of Mr. Mohit Chomal of

ICFAI Business School, Noida.

The report will only be used for Motilal Oswal Securities Ltd. Internal use andwill not be used as a commercial data.

Authorized by:

Mr. Rakesh Sharma

Manager, BAG

Motilal Oswal Securities Ltd.

(Company Guide)

[5]


6/90

ACKNOWLEDGEMENT

Words express everything

Mouth Co-ordinates,

When it comes to gratitude,

Heart comes to play.

It gives me immense pleasure for an opportunity to have undergone my Summer

internship with Motilal Oswal Securities Limited. There is always a sense of gratitude

which one expresses to other people for their helpful and needy service they render

during phases of life. I too would like to do the same as I really wish to express my

gratitude to those who have been helpful to me in getting this project completed.

In representing this report I would like to express my gratitude to Mr. RakeshSharma, Manager, Motilal Oswal Securities Limited for giving me this wonderful

opportunity to work with Business Associate Group, and providing me with his able

guidance and inspiration for the completion of project.

I would also like to express my gratitude to Mr. Munish Chauhan for his co-

operation and guidance without which this project would never have been a success.

I am also indebted to all the internal employees and fellow trainees of Motilal Oswalfor providing consistent encouragement and congenial atmosphere to complete the

project.

Last but not the least I will express my sincere thanks to Prof. Y.P. Gupta and ICFAI

Business School for providing me with support and necessary guidance and valuable

instructions for the completion of this project.

[6]


7/90

Executive Summary

It is well evident that work experience is an indispensable part of every professional

course. In the same manner practical training is must for each and every individual

who is undergoing management course.

Without the practical exposure one cannot consider himself or herself as a qualified

capable manager. During the project period student can learn through his own

experience, the real situation of market and corporate world and to put his theoretical

knowledge into practice. Hence to fulfill the requirement, I have completed my Two

Months Internship in Motilal Oswal Securities Ltd. on the topic Market Potential for

Franchisee, given to me by my company guide.

Being new to the Stock Market, I was engrossed fully into the sector where I was told

to understand the basics of stock market, the effect of recession on this sector, I was

told to educate various sub brokers operating in Delhi about the benefits of theFranchisee being offered by Motilal Oswal, and how this opportunity can profit both

the parties. I also did a survey for extracting information from brokers, which would

be helpful for the company to find a suitable partner as a franchisee holder.

I was told to make calls and generate the franchisees for the company. Some time I

have to extract the information from my sources because no one is theyre waiting foryou its actually you, which have to make things happen in your favor. So I read

articles brochures pamphlets in my free time there. Every day have its own experience

and a short-term goal. So I adopted the line that let the dreams of today determine the

opportunities of tomorrow and I inculcated the same positive attitude in to me so that

I would work there effectively and efficiently.

[7]


8/90

Chapter 1OVERVIEW OF INDUSTRY

[8]


9/90

1.1 Broking Industry Insight

The equity brokerage industry in India is one of the oldest in the Asia region. India

had an active stock market for about 150 years that played a significant role in

developing risk markets as also promoting enterprise and supporting the growth of

industry.

The working of stock exchanges in India started in 1875. BSE is the oldest stock

market in India. The history of Indian stock trading starts with 318 persons taking

membership in Native Share and Stock Brokers Association, which we now know by

the name Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent

recognition from the Government of India. National Stock Exchange comes second to

BSE in terms of popular.

Stock trading is a big business in any way and in any standards. With daily volumesof Rs12000-15000 crore (on the BSE and NSE) in the cash segment and a volume of

about Rs 30,000 35,000 crore in the derivative market, the size of the industry is

around Rs 5,000 crore per annum in terms of broking revenues. Meanwhile the

trading business too is booming. BSE and NSE represent themselves as synonyms of

Indian stock market. The history of Indian stock market is almost the same as the

history of BSE. The current "stock market" is comprised of 300,000 computers

situated on pro trader's desks. These computers are networked together using

sophisticated protocols. This level of information sharing makes pricing an almost

exact science.

These 300,000 computers are further linked to another 26 million computers

worldwide. These computers are located in banks, small businesses, and large

[9]


10/90

corporations. These computers comprise the banking networks, which make

computerized transactions possible.

Finally, these computers are connected to another 300 million+ computers, which

connect and disconnect from the financial markets daily. In New York City alone,

these transactions amount to over $2.2 trillion dollars daily.

Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark

was crossed in June and the 8000 mark on September 8 in 2005 and by 2007 It has

already seen mark 14500. Many foreign institutional investors (FII) are investing in

India. The liberal economic policies pursued by successive Governments attracted

foreign institutional investors to a large scale.

The unpredictable behavior of the market gave it a tag a volatile market.India,

after United States hosts the largest number of listed companies. Global investors

now ardently seek India as their preferred location for investment.

Beginning of a New Equity Culture

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. The early

1980s witnessed another surge in stock markets when major companies such as

Reliance accessed equity markets for resource mobilisation 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. As a part of thereform process, it became imperative to strengthen the role of the capital markets that

could play an important role in efficient mobilization and allocation of financial

resources to the real economy. Towards this end, several measures were taken to

streamline the processes and systems including setting up an efficient market

infrastructure to enable Indian finance to grow further and mature. The importance of

an efficient micro market infrastructure came into focus following the incidence of

[10]


11/90

market abuses in securities and banking markets in 1991 and 2001 that led to

extensive investigations by two respective Joint Parliamentary Committees.

The Securities and Exchange Board of India (SEBI),which was set up in 1988 asan 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

The scope and functioning of the SEBI has greatly expanded with the rapid growth

of securities markets in India in the last fifteen years.

Following the recommendations of the High Powered Study Group on Establishment

of New Stock Exchanges, the National Stock Exchange of India (NSE) was

promoted by financial institutions with an aim to provide access to investors all over

the country. 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 SecuritiesContracts (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.

Faster and efficient securities settlement system is an important ingredient of a

successful stock market. To speed the securities settlement process, The Depositories

Act 1996 was passed that allowed for dematerialization (and re-materialization) of

securities in depositories and the transfer of securities through electronic book entry.

The National Securities Depository Limited (NSDL) set up by leading financial

[11]


12/90

institutions, commenced operations in Oct 1996. Regulations governing selection of

various types of market intermediaries as depository participations were made.

Subsequently, Central Depository Services (India) Limited promoted by Bombay

Stock Exchange and other financial institutions came into being.

Rapid Growth

The last decade has been exceptionally good for the stock markets in India. In the

back of wide ranging reforms in regulation and market practice as also the growing

participation of foreign institutional investment, stock markets in India have showed

phenomenal growth in the early 1990s. The stock market capitalization in mid-2007

is nearly the same size as that of the gross domestic product as compared to about 25

percent of the latter in the early 2000s. Investor base continued to grow from

domestic and international markets. The value of share trading witnessed a sharp

jump too. Foreign institutional investment in Indian stock markets showed

continuous rise reaching about USD10 bn in each of these years between FY04 to

FY06. Stock markets became intensely technology and process driven, giving little

scope for manual intervention that has been the source of market abuse in the past.

Electronic trading, digital certification, straight through processing, electronic

contract notes, online broking have emerged as major trends in technology. Risk

management became robust reducing the recurrence of payment defaults. Product

expansion took place in a speedy manner. Indian equity markets now offer, in

addition to trading in equities, opportunities in trading of derivatives in futures and

options in index and stocks. ETFs are showing gradual growth. Within five years of

introduction of derivatives, Indian stock markets now are ranked first in stock futures

and fourth in index futures. Indian stock markets are transaction intensive and thus

rank among the top five markets in this regard. Stock exchange reforms brought in

professional management separating conflicts of interest between brokers as owners

of the exchanges and traders/dealers. The demutualization and corporatization of all

stock exchanges is nearing completion and the boards of the stock exchanges now

[12]


13/90

have majority of independent directors. Foreign institutions took stake in Indias two

leading domestic stock exchanges. While NYSE Group led consortium took stake in

the National Stock Exchange, Deutsche Borse and Singapore Stock Exchange bought

equity in the Bombay Stock Exchange Ltd.

1.2Major Developments in Equity Brokerage Industry in India

i) Corporate memberships

There is a growing surge of corporate memberships (92% in NSE and 75% in BSE),

and the scope of functioning of the brokerage firms has transformed from that of

being a family run business to that of professional organized function that lays

greater emphasis on observance of market principles and best practices. With

proliferation of new markets and products, corporate nature of the memberships is

enabling broking firms to expand the realm of their operations into other exchanges

as also other product offerings.

ii) Wider product offerings

The product offerings of brokerage firms today go much beyond the traditional

trading of equities. A typical brokerage firm today offers trading in equities and

derivatives, most probably commodities futures, exchange traded funds, distributes

mutual funds and insurance and also offers personal loans for housing, consumptions

and other related loans, offers portfolio management services, and some even go to

the extent of creating niche services such as a brokerage firm offering art advisoryservices.

iii) Greater reliance on research

Client advising in India has graduated from personal insights, market tips to

becoming extensively research oriented and governed by fundamentals and technical

factors. Vast progress has been made in developing company research and refining

[13]


14/90

methods in technical and fundamental analysis. The research and advice are made

online giving ready and real time access to market research for investors and clients,

thus making research important brand equity for the brokerage firms.

iv) Accessing equity capital markets

Access to reliable financial resources has been one of the major constraints faced by

the equity brokerage industry in India since long. Since the banking system is not

fully integrated with the securities markets, brokerage firms face limitations in

raising financial resources for business and expansion. With buoyancy of the stock

markets and the rising prospects of several well-organized broking firms, important

opportunity to access capital markets for resource mobilization has become available.

The recent past witnessed several leading brokerage firms accessing capital markets

for financial resources with success.

v) Foreign collaborations and joint ventures

The way the brokerage industry is run and the manner in which several of them

pursued growth and development attracted foreign financial institutions andinvestment banks to buy stakes in domestic brokerage firms, paving the way for

stronger brokerage entities and possible scope for consolidation in the future. Foreign

firms picked up stake in some of the leading brokerage firms, which might lead to

creating of greater interest in investing in brokerage firms by entities in India and

abroad.

vi) Specialized services/niche broking

While supermarkets approach are adopted in general by broking firms, there are

some which are creating niche services that attract a particular client group such as

day traders, arbitrage trading, investing in small cap stocks etc, and providing

complete range of research and other support to back up this function.

vii) Online broking

[14]


15/90

Several brokers are extending benefits of online trading through creation of separate

windows. Some others have dedicated online broking portals. Emergence of online

broking enabled reduction in transaction costs and costs of trading. Keen competition

has emerged in online broking services, with some of these offering trading services

at the cost of a few basis points or costs, which are fixed in nature irrespective of the

volume of trading conducted. A wide range of incentives is being created and offered

by online brokerage firms to attract larger number of clients.

viii)Compliance oriented

With stringent regulatory norms in operation, broking industry is giving greater

emphasis on regulatory compliance and observance of market principles and codes of

conduct. Many brokerage firms are investing time, money and resources to create

efficient and effective compliance and reporting systems that will help them in

avoiding costly mistakes and possible market abuses.

ix) Focus on training and skill sets

Brokerage firms are giving importance and significance to aspects such as trainingon skill sets that could prove to be beneficial in the long run. With the nature of

markets and products becoming more complex, it becomes imperative for the

broking firms to keep their staff continuously updated with latest development in

practices and procedures.

1.3 Growth Driver of Equity market

The major growth drivers for brokerage revenue and trading volume are:-

Continuous fall in brokerage fees: This is happening due more and more

interest of people in broking and huge competition in the market. Many

Broking houses are reducing their brokerage in order increase the volumes of

trading/jobbing intra-day and gross. Resulting in a compensation for the

[15]


16/90

reduced fees. The client gets an advantage and wishes for more and more intra-

day sell and purchases. Theres a limit on the same as 8-10 times depending

upon the broking house and the reputation of the client in the market.

Adoption of technology: Earlier most of broking houses used simple

connection to connect to the BSE/NSE or the Main Broker. But, these days

many have started using V-SAT technology which is highly advanced, secure

and fast.

Centralized operations: The Back office is no more a setup in broking houses

its all web-based having its roots at the registered office of the firm. Thishelps in reducing the deviations from the set guidelines and results in fast and

secure transactions. Hence, more control, equality and effectiveness are

observed even in the remotest franchisee of the firm.

1.4 Market Analysis of Broking Business

Buyer Power

Lack of Expertise Curtails Bargaining Power

Knowledge of the industry in which one is working is very important without

knowledge one cannot even think of growing in the market. Knowledge is the only

thing in this which cannot be Sold, purchased or stolen it can only be gained by

experience, studying or through a seniors advice. Retail investors often lack the

knowledge and expertise in the financial sector that calls them to approach the

broking houses, which have complete a research reports and market updates in order

to guide the investor decision and to create wealth.

Low Product Differentiation Proves Beneficial

[16]


17/90

The retail broking services provided by the various companies are homogeneous with

very low product differentiation. This allows customers to enjoy a greater bargaining

power. The only difference widely observed is either the Brand of the broking or the

support which he provides apart from usual share trading.

Intensity of Competition

Move towards consolidation

Lot of brokerage companies is moving towards consolidation with the smaller ones

becoming either franchisees for the larger brokers or closing operations.

Increased Focus of Banks in Retail Broking

Various foreign banks like ABN Amro and others are planning to enter the Indian

retail brokerage industry. This can be taken as positive note from the view of the

whole industry, since it is growing so more and more people are willing to be a part of

it as well as a negative note from the view of broking houses, since it will increase

competition in the market.

Online Trading Competes with Traditional Brokerage

There is an increasing demand for online trading due to consumers growing

preference for internet as compared to approaching the brokers.

Threat of New Entrants

Entry of Foreign Players

New forms of trading including T+2 settlement system, dematerialization etc are

strengthening the retail brokerage market and attracting foreign companies to enter

the Indian industry.

Threat of Substitutes

Alternative Investment Options

[17]


18/90

Various alternative forms of investment including fixed deposits with banks and post

offices etc act as substitutes to retail broking products and services.

1.5 Major Players in the Industry

ICICI Securities Ltd. (www.icicidirect.com)

Kotak Securities Ltd. (www.kotaksecurities.com)

India bulls Financial Services Limited (www.indiabulls.com)

India Info line (www.5paisa.com)

IL&FS invest mart Limited (www.investsmartindia.com)

SSKI Ltd. (www.sharekhan.com)

Fortis Securities (Religare) (www.fortissecurities.com)

Karvy (www.karvy.com)

HDFC Securities (www.hdfcsec.com)

Motilal Oswal Securities (www.motilaloswal.com)

[18]
http://www.hdfcsec.com/http://www.hdfcsec.com/


19/90

Chapter 2.

INTRODUCTION TO THE PROJECT

[19]


20/90

Being a reputed company in the business it is of utmost importance for Motilal Oswal

to be aware of what is going on in the market, what is expected of them and how are

they performing and do they need any improvements. So, to cover all these areas a

detailed analysis of all this aspects has been done. The project revolves around the

whole financial market business. Through this project, an effort towards

understanding and throwing more light on every aspect related to the business has

been undertaken. It will surely help Motilal Oswal in getting a detailed insight into the

business and developing marketing strategy in such a way that most can be reaped

from the market of franchisee integration. Not only that, it was tried to give the

business a new dimension in terms of approaching the sub-broker to generate leads

which may in turn help in getting larger market share. The project had two market

research parts

Market survey of the prospective sub-brokers

Expansion plan of Motilal Oswal.

Besides that the marketing strategies used by other companies in same business was

studied and suggestions were drawn to develop an effective strategy.

Besides these major issues many other issues were taken care of in this report.

2.1The Need for This Project

[20]


21/90

No study has been done on this business so far So far no study has been

done regarding this business in New Delhi, so a detailed study of the market is

required to understand it properly.

Lack of understanding of the need of the business houses Since no

segmentation study has been done the specific needs of different companies are

not known.

Focus the existing marketing team at right market The lack of

understanding of the market wastes a lot of effort of the sales team. The

business is generated through cold calls right now. But if there was a proper

understand the requirement of each type of market segment the sales team may

pitch in right mix of products to the right prospective clients.

Lot of small players cropping up It always creates a problem when the

market starts getting congested. Same is the case with the market of financial

business. Through this project I have tried to develop a structured view of the

market which will not only help in understand the whole market but also help

in targeting the marketing force at the right places to get more business. Same array of products Almost all the companies in the market are pitching

in same array of products and hence this causes more problems as the

unprofessional players are able to provide the integration at less cost. So

anyone who is able to get a supply of the major financial techniques and senses

required for setting up franchisee integration jumps into the business with a

team of local people. They not only eat up the market share but also degrade

the service level required for this type of job and hence degrade the market as awhole.

Innovation in approach required With all these problems, it becomes of

utmost importance for a company to innovate to reach at the top. So,

innovation in terms of products, lead generation, and communication strategy

is required.

[21]


22/90

No idea of the position of the competitors The companies doesnt have any

idea what the other companies in the same business are doing to generate more

business, what are the innovations going around in the market.

Lack of understanding of the satisfaction of existing customers It always

pays to introspect oneself. But so far no formal study in this regard has been

undertaken so we dont know how we have performed so far.

2.2 Objectives of the project

Analyzing broking market potential.

Providing data driven decision for franchisee acquisition. Analyzing the franchisee model of MOSL with respect to two major broking

houses & conduct a SWOT analysis of MOSL.

Understanding the B2B marketing environment.

To increase the number of franchisee

Understanding the process of marketing research suitable for B2B

environment.

2.3 Scope of the project

The project focuses at understanding the existing forces that determine the acquiring

of a solution like Franchisee Model Integration. Through this project we have been

able to reach at a certain number of factors that are the main deciding factors that are

taken under consideration by the companies while purchasing integration products.

The project also aimed at segmenting the market and understanding the individual

needs of each market segment. This kind of exercise will not only help the company

in focusing its marketing activity to the right kind of business enterprises but will also

help in designing right mix of strategy to cater to the needs of sub-brokers in the best

way possible. It is always wise to keep a track of what the competitor proposes to do

in future as it alarms the market leader to be geared for the future. So, this study will

help the company in gaining an insight into the innovations that are being done by

[22]


23/90

other companies in the same kind of business. It was also aimed to study the level of

satisfaction among the existing sub-brokers of the competitor company and gather

their feedback to see what more the clients expect in terms of products, consultancy,

return on investment and innovation. And last but not the least in order to make the

summer internship program more fruitful in terms of academic learning, a complete

analysis of the functioning of the franchisee integration business was done along with

the organizational structure and other minor details.

2.4 Limitations of the project

Although the project aims at making an in-depth market research but there are somepractical limitations regarding the methodology followed & the overall procedure.

These can be summed up under the following points ---

The sample taken for this research might not represent the whole population.

Since the survey is conducted exclusively on individual companies the

personal view of the respondent may make lead to some biasness in the results.

Some people do not want to give correct details required in the questionnaire.

It is also possible that some people might have given false or misleading

information.

Many people doubted the fact that the information given by them would be

kept strictly confidential.

Many big companies do not respond to such market research.

Many companies didnt respond properly and mentioned that decisions

regarding these issues are taken by their head offices.

Many companies do not wish to give out information which leads to

incomplete responses.

Many people gave unauthentic information to hide their ignorance.

[23]


24/90

Chapter 3.INTRODUCTION OF

MOTILAL OSWAL

[24]


25/90

Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial

services company focused on wealth creation for all its customers, such as

institutional and corporate clients, HNI and retail customers. Our services and product

offerings include equity broking, commodity broking, and distribution of third party

products, investment banking and venture capital management.

It is one of the most respected corporate houses known for their business research and

franchisee model initiation of sub-broker reforms besides being recognized for their

values of fair, transparent and ethical dealings.

The spirit of entrepreneurship, the vision of a dynamic tomorrow, and the capacity to

build and realize dreams! This is the essence of the Motilal Oswal. No wonder then,

Motilal Oswal has become the symbol of a vibrant multi-business enterprise touching

the lives of many and at the same time an icon of enduring ideals in a changing world.

3.1 History

[25]


26/90

Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with

just two people running the show. Focus on customer-first-attitude, ethical and

transparent business practices, respect for professionalism, research-based value

investing and implementation of cutting-edge technology has enabled us to blossom

into an almost 2000 member team.

Today we are a well diversified financial services firm offering a range of financial

products and services.

Motilal Oswal has a diversified client base that includes retail customers (including

High Net worth Individuals), mutual funds, foreign institutional investors, financial

institutions and corporate clients.

The headquarter is in Mumbai and as of December 31st, 2008, had a network spread

over 512 cities and towns comprising 1,428 Business Locations operated by our

Business Partners and us. As at December 31st, 2008, the total number of registered

customers wad 5, 27,368.

Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial

services company focused on wealth creation for all its customers, such asinstitutional and corporate clients, HNI and retail customers. Our services and product

offerings include equity broking, commodity broking, and distribution of third party

products, investment banking and venture capital management.

Mr. Motilal Oswal and Mr. Raamdeo Agrawal laid the foundation for MOFSL and

initially conducted business as a sub-broking firm. Thus, began the expedition of

building a professional organization with strong value systems, to provide investment

advice to investors.

Today, Motilal Oswal Financial Services Ltd. is a well-established brand among retail

and institutional investors in India, with a presence in over 1533 business locations

across over 487 cities

.

From a sub-broking firm, Motilal Oswal Financial Services Ltd. has today become a

[26]
http://tmp/svfk8.tmp/javascript:OpenPopUpWindow('/india_map.html','NewWin',0,0,'yes','yes',592,700)http://tmp/svfk8.tmp/javascript:OpenPopUpWindow('/india_map.html','NewWin',0,0,'yes','yes',592,700)


27/90

solid financial services company straddling a spectrum of businesses in the financial

services space. These businesses include Wealth Management, Institutional Equities,

Investment Banking and Venture Capital Management.

3.2 Motilal Oswal Products and Services

Today Motilal Oswal is a well diversified financial services firm offering a range of

financial products and services such as

Wealth Management

Broking & Distribution

Commodity Broking

Portfolio Management Services

Institutional Broking

Private Equity

Investment Banking Services and

Principal Strategies

[27]


28/90

Wealth Management

Financial planning for individual, family and business wealth creation andmanagement needs. These are provided to customers through our Wealth

Management service called Purple.

Broking & Distribution services

Equity (cash and derivatives)

Commodity broking


Distribution of financial products

Financing

Depository Services

IPO distribution

[28]


29/90

We offer these services through our branches, Business Partner locations, the internet

and mobile channels. We also have strategic tie-ups with State Bank of India and

IDBI Bank to offer our online trading platform to its customers.

Commodity Broking

Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we

provide commodity trading facilities and related products and services on MCX and

NCDEX. Besides access to the best of research in the form of Daily Fundamentals &

Technical Reports on highly traded commodities, our clients also get access to our

exclusive Customized Trading Advice on both the trading platforms. We offer these

[29]
http://www.motilaloswal.com/Commodityhttp://www.motilaloswal.com/Commodity


30/90

services through our branches, Business Partner locations, the internet and mobile

channels


Motilal Oswal Portfolio Management Services offer a range of investments solutions

through discretionary services. We at Motilal Oswal have helped create wealth for our

customers through our Portfolio Management Services. Our knowledge of the markets

together with our understanding of our customers and their risk profiles has helped us

design a range of portfolio offerings for our clients. These include the Value PMS,

Bulls Eye PMS, Trillion Dollar Opportunity and Focused Portfolio Series I. As of

December 31st, 2008, the Assets under Management of our various portfolio schemes

stood at Rs.5.04bn.

Motilal Oswal group has applied to the regulatory bodies for a license to operate as a

Domestic Asset Management Company (Mutual Fund) and we expect to begin

operations soon.

Institutional Broking

We offer equity broking services in the cash and derivative segments to institutional

clients in India and overseas. These clients include companies, mutual funds, banks,

financial institutions, insurance companies, and FIIs. As at December 31st, 2008, we

were empanelled with over 300 institutional clients including 200 FIIs. We service

these clients through dedicated sales teams across different time zones.

[30]
http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=4C85DF26-14A8-4DCF-AF90-D9368AAE1F74http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=e424c05f-9d2a-494e-ba04-27c8a2cf6c7dhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=1507a912-dded-4ca7-b987-db9295ae213bhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=0115fbb7-ead7-4679-8e44-56d281869781http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=2295fcb5-3697-4f03-920e-d189fa4bcf47http://www.motilaloswal.com/Content.aspx?ReportID=0C2B2131-A6CA-444E-A7A3-C641AFEFB554http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=4C85DF26-14A8-4DCF-AF90-D9368AAE1F74http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=e424c05f-9d2a-494e-ba04-27c8a2cf6c7dhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=1507a912-dded-4ca7-b987-db9295ae213bhttp://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=0115fbb7-ead7-4679-8e44-56d281869781http://www.motilaloswal.com/Retail/RetailContents.aspx?ArticleID=2295fcb5-3697-4f03-920e-d189fa4bcf47http://www.motilaloswal.com/Content.aspx?ReportID=0C2B2131-A6CA-444E-A7A3-C641AFEFB554


31/90

Investment Banking

We offer financial advisory services relating to mergers and acquisitions (domestic

and cross-border), divestitures, restructurings and spin-offs through Motilal Oswal

Investment Advisors Private Ltd. (MOIAPL)

We also offer capital raising and other investment banking services such as the

management of public offerings, private placements (including qualified institutional

placements), rights issues, share buy backs, open offers/delisting and syndication of

debt and equity.

MOIAPL has closed 23 transactions in 2007-08 worth US$ 1.8 billion and had 18mandates in h and as at March31, 2008.

[31]
http://www.motilaloswal.com/Content.aspx?ReportID=96D62435-6C0B-4B34-B665-48051C02C359http://www.motilaloswal.com/Content.aspx?ReportID=96D62435-6C0B-4B34-B665-48051C02C359


32/90

Private Equity

In 2006, our private equity subsidiary, Motilal Oswal Private Equity Advisors Private

Ltd (MOPEAPL) was appointed as the investment manager and advisor to a private

equity fund, India Business Excellence Fund, which was launched with a target of

raising US$100 mn. The fund is aimed at providing growth capital to small and

medium enterprises in India, with investments typically in the range of US $3 mn to

US $7 mn.

MOPEAPL will manage and advise the fund and other private equity funds, which

may be raised in the future. In its final closing, in December 2007, the fund obtained

commitments of US$125 mn (Rs.4, 875 mn) from investors in India and overseas.

The Fund has deployed/ committed $ 58 mn across 8 deals.

MOPEAPL has recently launched an INR 750 Crores domestic Real Estate Private

Equity Fund called India Realty Excellence Fund sponsored by Motilal Oswal

Financial Services Ltd.

[32]
http://www.motilaloswal.com/Content.aspx?ReportID=56AB8714-FEAC-44D7-93AF-DEA458925D0Ehttp://www.motilaloswal.com/Content.aspx?ReportID=56AB8714-FEAC-44D7-93AF-DEA458925D0E


33/90

MARKET SHARE: EQUITY BROKING

Principal Strategies Group

For effective management of treasury operations and to capitalize on market

opportunities, the Group has set up a 30 member team which would be responsible for

effective deployment of funds into different trading and arbitrage strategies.

Focus on Research

Research is the solid foundation on which Motilal Oswal Securities advice is based.

Almost 10% of revenue is invested on equity research and we hire and train the best

resources to become advisors. At present we have 23 equity analysts researching over

27 sectors. From a fundamental, technical and derivatives research perspective;

Motilal Oswal's research reports have received wide coverage in the media (over a

1000 mentions last year). Our consistent efforts towards quality equity research have

reflected in an increase in the ratings and rankings across various categories in the

Asia Money Brokers Poll over the years

[33]


34/90

3.3 Business Acquisition Group (BAG)

The firm has a dedicated BAG department which deals with the acquisitions of

business partners at various locations all over India. This department has helped

Motilal Oswal to Grow at a very fast pace. Such a rapid growth is observed due to

acquisitions of the best businesses at most profitable locations.

Making a firm as a business partner is a tuff job. Since, as soon it becomes your

business partner its own identity is lost and its entire works are perceived as part of

the firm. It carries the brand along with it.

Business acquisitions act as dual benefit to the partnering firm as well as Motilal

Oswal.

On one hand, it provides the best research, brand and other associations benefits to

the firm joining hands. On the other, it expands Motilal Oswals foot in the country

and further Since, The firm was already performing. Hence, the risk for the company

reduces.

Anyhow, its works slow but has better results than simply selling the business

partnerships to inexperienced partners.

There are more than 1800 sub-brokers in Delhi & NCR area out of which Motilal has

only 20 Sub-brokers. There is a huge gap between the market share of Motilal and

other broking firms.

Hence, The Company wishes to bridge this gap by acquiring sub-brokers of other

firms. Like Share khan, SMC Global etc.

[34]


35/90


36/90

Strength & weakness in respect to MOSL

Strength: -

Brand name associated with UTI

bank

Low security deposit Sharing starts with 60:40 ratio

No fixed charge for VSAT, Rs

5000 PM that also refundable if

brokerage earned by UTISEL is

Rs 1,50,000 in a quarter

Local servicing

Weakness: -

No exposure on security

Neither dedicated BD team nor

any mkt support.

No focus on research and services

No concept of dedicated

activation team for new

franchisee.

Only 15 days back office training

Low focus on cross selling of

products

Margin funding is not promoted Diversified business

[36]


37/90

ICICI Direct.com

Model: - Online franchisee

Products: - NSE / BSE / NCDEX / MFs / IPO / insurance

Registration: - Rs 10,000 each for BSE & NSE

Deposit required: - Rs. 40000 + Rs 25000 for registration

Brokerage: - 30 paisa and 75 paisa

Sharing: - Rupee1/- ~ 2 Lk: - 30%, Rs. 2 Lk ~ 7.5 Lk: - 35%,

Rs. 7.5 Lk ~ 15 Lk: - 40%, Rs. 15 Lk ~ 25 Lk: - 45%,

Rs. 25 Lk +: - 50%

DP account: - Rs. 500 PA +Rs 10-30 per outgoing

Connectivity: - Broadband

Mkt support: - no (flex sheet, visiting card and pamphlets)

Software charges: - free

Training: - 1 week

Margin funding: - not for retail client

Exposure: - 4-6 times on intraday, no exposure on delivery

[37]


38/90

Strength & weakness in respect to MOSL

Strength: -

11 lakh customer base (appox)

Low security deposit

Very efficient software

User friendly usage

Broadband connectivity

Real time settlement

Weakness: -

No exposure on security

No dedicated BD team nor any

mkt activity support

No focus on research and

services

No concept of dedicated

activation team for new

franchisee

Only 1week back office training.

Low focus on cross selling of

products

No exposure on delivery High brokerage charge

[38]


39/90

SWOT ANALYSIS OF MOTOLAL OSWAL

Strength

Brand name World class service Dedicated business

development team 3 months dedicated activation Strong research based advice Focus on wealth management Cross selling of 3rd party

product Focus only on one business

Weakness

High Deposit Low focus on brand

promotion Servicing through central

level Technology and connectivity

is not highly up scaled

[39]


40/90


41/90

Chapter 4.

RESEARCH METHODOLOGY

4.1 Methodology used for the project:

This project followed a simple & systematic methodology. I have followed a phase by

phase approach to complete this project.

1st PhaseIn the 1st phase I was informed about the whole business of franchisee integration. I

received complete knowledge about the details of the business and how it is done at

Motilal Oswal by Mr. Rakesh Sharma. In this stage I went through some websites to

find out more about this particular business. After joining the company on 13th Feb,

2009, problem definition was the most important task undertaken as it was going to

[41]


42/90

determine the future course of action. The right understanding of the problem was as

important as the entire project itself. The project guide

Mr. Rakesh Sharma was a big help to me in determining this step. He not only

explained the in and out of the business but also the problems that the franchisee team

had been facing so far. After having a detailed conversation for several days

following problems were identified. I realized that no study has been done on this

particular business so far so I took it up as a job to do a complete analysis of the

business along with the problems defined by Mr. Rakesh Sharma. So I decided that

there will be three parts in my project pertaining to the three main parts that exists in

any business i.e.

Competitors analysis

Target customer analysis

Business from the target customer

For this systematic and standard steps were followed which formed the later phases of

my project.

Phase 2: Problem Definition

After joining the company on 13th Feb, 2009, problem definition was the most

important task undertaken as it was going to determine the future course of action.

The right understanding of the problem was as important as the entire project itself.

The project guide Mr. Rakesh Sharma was a big help to me in determining this step.

He not only explained the in and out of the business but also the problems that the

sales team had been facing so far. Besides that I also visited various internet sites to

gain an insight about the problem that the company might be facing.

After having a detailed conversation for several days following problems were

identified.

Management Decision Problem:

[42]


43/90

a. How to maintain the leadership in the market that is becoming congested

by small players?

b. How to capture new market segments and what are the needs and

expectations of these segments?

c. What can be done towards sub-broker satisfaction and sub-broker loyalty?

Marketing Decision Problem:

a. What are the different segments of the market and what are their needs?

b. What are the actions going around in the market and how the competitor

companies are working to get an edge over Motilal Oswal?

c. What are the main benefits provided by the competitor companies to offer

their franchisee?

d. In a market where almost all the companies are offering same products

what more can be done to maintain the status of market leader?

e. What do the existing franchisees feel about the overall product?

f. Is there a need for enhancing the existing communication strategy of the

company?

The problem definition stage helped me clearly understand the expectation of the

company from the project and the direction in which one needs to move to achieve

those expectations.

Diagram: The process of Problem definition

[43]


44/90

Phase 3: Developing an Approach to the Problem

Once the problems faced by the company were identified the next step included the

development of the approach to the problem, i.e. defining the research problems and

presenting them in a form which may be helpful in the process of market research. In

this step proper statement of problem was set up which is Expansion Plan of Motilal

Oswal that is of interest to the researcher.

Motilal Oswal has only twenty two (22) franchisee in Delhi & NCR, whereas the

actual potential is in between one hundred (100) to one hundred fifty (150). For the

Market Expansion Plan, Motilal Oswal needs to increase its total number of

franchisee in Delhi & NCR.

Preparing the statement of Research Objective

The objective of the project is To increase the number of franchisees.

Motilal Oswal has comparatively lesser number of franchisees in comparison to its

competitors like Reliance Money, Kotak Securities, Religare, Angel Broking etc.

Companys motive is to expand the market. So it has to increase the number of its

sub-brokers in Delhi & NCR region.

Phase 4: Research Design Formulation

Market research involves lot of effort and time, so it is always best to be very clear as

to what has to be done and how it has to be done and this was decided in the third step

of the project. From the understanding of the project I decided to go for a survey

research first to get a better idea of the market. And then go for the main descriptive

research. In this step following decisions were taken:

[44]


45/90

1. Information should be obtained from sub-brokers currently operating in Delhi

& NCR region.

2. Time Allotted: 03 Months

3. Budget Allotted: Stipend for trainees

4. The first step towards the research will begin with a survey research. In this

research different sub-brokers of our competitor company across Delhi & NCR

will be contacted over the phone and will be asked few questions from a pre-

designed questionnaire. This step will give us some idea about our competitors

and how they are seeing the market. This will also help us to understand up to

what extent they are associated with their main broker.

5. Then the survey research part will follow in which the questionnaire will be

designed directly on the laptop, in word format so that responses can be

directly stored in softcopies. This strategy will not only save paper and make

the project environment friendly but also save us from the extra effort entering

the data on the laptop after collecting it.

6. Then the next step would be to meet them and ask them for information

relating to the questionnaire.7. Based on the outcome, proper schedule will be designed for the project which

will have provision for all the activities that are required to be undertaken.

8. Throughout the project internet will be used a lot to read about the different

companies in the same business in Delhi & NCR. And any special features

thus noticed will be documented.

9. And then a database of the companies, which will be visited for the responses,

will be collected from the various sites of stock exchange.10.Then the actual primary data collection step will take place in which sub-

brokers from the data base will be visited and then the responses will be

collected from people responsible for such kind of decision making.

11. On the basis of terms and conditions for franchisee of Motilal Oswal, trainees

are asked to provide extra information on the back page of the filled-up

questionnaire by observing the office set up. This includes number of

[45]


46/90

computers, employees, terminals, area of office, decoration, branches. If

everything matches with the desired profile then they will recommend the

respective sub-broker.

12. The trainees are asked to collect the visiting card of the respective sub-broker

they are visiting to avoid any unfair means in data collection and also not to

disclose their identity.

13. Once the survey is done, then the responses will be checked for any incomplete

ones and theyll be discarded.

14. Then a meeting with the respective client is fixed for Senor Manager to have

the detailed discussion via telecalling by the trainees.

15.During the meeting the trainees are asked to be present over there to learn

various skills and expertise which are required in todays competitive world.

16. Then the collected data will be analyzed using SPSS.

17. This analysis will be documented.

18.The entire project will be reviewed once and then the final report will be

prepared.

Schedule of the Project:

The Timeline decided for the project:

16th Feb 21st Feb : Identification of the problem and defining it.

23rd Feb 28th Feb : Questionnaire Designing

2nd Mar 21st Mar : Data Collection

23rd Mar 28th Mar : Data Analysis.

30th Mar 18th Apr : Fixing Meeting via Telecalling

20th Apr 16th May : Meeting with Client

18th May 21st May : Review of Project

22nd May 28th May : Final report preparation

29th May : Final report submission.

[46]


47/90

Diagram: the Flow of the work to be done for theProject

Phase 5: Survey Research

The primary objective of survey research is to provide an insight and anunderstanding into the details of the problem. For this a database of sub-brokers in the

same business across Delhi & NCR was collected. Fifteen companies were found to

be major players across Delhi & NCR. The list of the companies can be found in

Annexure 1.

Designing Questionnaire

This was the next step that was undertaken. In this step first of all the questionnaire

was designed to collect the responses of the companies regarding the franchisee. The

questionnaire was designed in word format.

It was intended from the beginning to make this project an environment friendly

project and use as few papers as possible.

[47]


48/90

OBJECTIVES OF QUESTIONNAIRE:

The Questionnaire is developed while keeping in mind, the owner of a franchisee.

Since, ultimately he has to decide to become a part of MOSL.

(A Copy of a Blank and Filled questionnaire is attached in appendix)

To know Owners experience in the industry.

To know the willingness/interest of the owner in the business.

Is he having proper i.e. skills for the business.

To know how long that firm is serving the clients in that area and by what rate

is it growing.

Whats his perception about being more successful broker in the area?

What he feels he needs to satisfy his clients.

What challenge he is facing currently or he can face in the coming time and

what he learned out of it?

How far does he plan to go in coming 5 years?

Does he require any type of support in achieving his goals or does he feel he is

self sufficient.

What qualities he feels he needs to acquire to achieve his goals.

Phase 6: Analysis

In this phase the first job that was done was coding the data collected from the market

research in statistical software called SPSS so that it can be analyzed and

meaningful results can be drawn from them. Due to the small sample size of the sub-

brokers survey, no quantitative analysis was done just the important outcomes were

analyzed and documented in the analysis chapter in this report.The coded data from the prospective sub-brokers survey was used to analyze that

which is the factors that mainly affect the buying behavior of the companies. I also

tried to study what are the reasons that prevent or defer the franchisee integration

project.

[48]


49/90

After everything was analyzed the results were taken into consideration and I tried to

present feasible solutions to the problems that exist. Also proper segmentation was

done according to the need of different market segments.

All the observations made and analyzed are given in the Analysis chapter later in the

report.

Phase 7: Report Preparation

In the final part of the project different suggestions and conclusions were drawn and

then the final report was prepared.

[49]


50/90

Chapter 5.DATA ANALYSIS

5.1 MAIN BROKER & SUB BROKER ANALYSIS

Data has been analyzed using SPSS. Analysis includes Descriptive analysis(Frequencies), Non Parametric test (Chi Square) & Cross Tab Analysis.

The very first thing that a respondent writes in the questionnaire is his details like his

name, Address, Age etc. and the most importantly whether he is a main broker or a

sub broker.

[50]


51/90

Type of broker

2 6.7 6.7 6.7

28 93.3 93.3 100.0

30 100.0 100.0

Main Broker

Sub Broker

Total

ValidFrequency Percent

Valid

Percent

Cumulativ

e Percent

Type of broker

Type of broker

Sub BrokerMain Broker

Frequency

30

20

10

0

In Data Collection Period, I was able to interview 30 Respondents; The Sample taken

consists of 2 Main Brokers & 28 Sub brokers. In this project, Sub brokers were the

target respondents, however few main brokers were also been visited in order to learnsome difference between a Main Broker & a Sub broker.

[51]


52/90

Test Statistics

22.5331

.000

Chi-Squarea

df

Asymp. Sig.

Type of

broker

0 cells (.0%) have expected frequencies less than

5. The minimum expected cell frequency is 15.0.

a.

Since, Asymp. Sig. 0.000 < 0.05. Hence, there is a significant difference between

number of Main Brokers and Number of Sub brokers.

Hence, the objective is achieved to gain knowledge about main brokers and collected

data of sub brokers to find prospective clients.

Characteristics of a Main Broker:-

A Main Broker has a hoarding in his office stating that he is member at NSE

and/or BSE whereas a sub broker has a hoarding or certificate of association

with a main broker.

In comparison to Sub brokers, Most Main Brokers have a Big Office with

more than 40 systems. Main Brokers were not that helpful in disclosing the details. An average

waiting time at a Main broker was at least 20 minutes even after market hours.

I.e. after 4 P.M.

Some of the major Differences that were observed during the visit are as under:

MAIN BROKER SUB BROKER

A Main Broker gets BSE/NSE

Listing with an initial deposit of

minimum of Rs. 5 crore with

SEBI

A Main Broker is the one who is

directly attached with a Stock

Exchange

One can become a Sub broker

with even a Rs. 50 thousand of

deposit with a Main Broker.

A sub broker is the one who is

attached to stock market via a

[52]


53/90

A Main Broker can serve to

anyone

Main broker.

A sub broker has specificclientele like, Retail customers.

5.2 Detailed Analysis of the Questionnaire

Question 1:- How long have you been in this line?

Years since respondent is in the business

2 6.7 6.7 6.7

11 36.7 36.7 43.3

17 56.7 56.7 100.0

30 100.0 100.0

< 2yr

2 to 5yrs

> 5yrs

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent



> 5yrs2 to 5yrs< 2yr

Frequency

20

10

0

[53]


54/90

The table above represents that out of 30 respondents only two respondents is new to

the market as they have less than 2 years of experience and majority of respondent

have more than 5 years of experience.

Test Statistics

11.400

2

.003

Chi-Squarea

df

Asymp. Sig.

Years

since

responde

nt is in the

business

0 cells (.0%) have expected frequencies less than

5. The minimum expected cell frequency is 10.0.

a.

Since, Asymp. Sig. 0.003< 0.05. There is significant difference in the population of

experienced & young players. This shows market is having experienced people & the

prospective clients appear to be much in the population.

[54]


55/90

Question 2: What brought you to stock markets and made you think of a career

in it?

This Question asks the respondent about his main objective to get into the stock

market. It helps us in knowing about the persons instinct behind getting into this

business, for example one came in this business for short term profits or really wants

to grow the business & wants to cash out the brokerage in the bull market.

What brought the repondent to this business

3 10.0 10.0 10.0

12 40.0 40.0 50.0

15 50.0 50.0 100.0

30 100.0 100.0

Good short term profits

Cash out the

brokerage oppurtunity

in a bull market

Develop required skills

to develop and serve

large clients

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent

[55]


56/90



Develop required sk i

Cash out the brokera

Good short term profF

requency

16

14

12

10

8

6

4

2

0

Analysis:

The table above clearly shows that 50% of the respondents needs to develop the

required skills in order to serve the large client base. So this population can be the

target for Motilal Oswal to acquire them & partner their growth by helping themgathering the required skills through its support

Question 3: Whats your Educational Background and did you undergo any

formal training?

As per SEBI norms a person having an NCFM certificate in either of two modules or

both namely, Capital market and derivative market can operate the trading terminal

which is a basic Qualification in this business.

[56]


57/90

Qualification of the respondent

21 70.0 70.0 70.0

7 23.3 23.3 93.3

2 6.7 6.7 100.0

30 100.0 100.0

Basic qualificationalong with exchange

required certifica

Profess qualification

along with exchange

reqd certificate

Additional self

development and

mkrt related prg

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent



Additional self deveProfess qualificatioBasic qualification

Frequency

30

20

10

0

Analysis:

It can be easily interpreted from the table that only 2 respondent

has additional qualification.

[57]


58/90

Major respondent have basic Qualification of NCFM which is a good

sign as the population is adhering to the rule of SEBI of being NCFM

qualified.

Question 4: How long has this setup been in place & your

growth story?

Length of the current setup

4 13.3 13.3 13.3

10 33.3 33.3 46.7

16 53.3 53.3 100.0

30 100.0 100.0

5yrs

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent



>5yrs2 to 5 yrs


59/90

Question 5: What qualities make a successful broker?

Qualities attributed to be a successful broker

15 50.0 50.0 50.0

5 16.7 16.7 66.7

10 33.3 33.3 100.0

30 100.0 100.0

Higher ratio of

succesful trading calls

A culture of researched

idea's with good infra

and service

All of the above

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent

[59]


60/90



All of the aboveA culture of researcHigher ratio of succ

Frequ

ency

16

14

12

10

8

6

4

2

0

Analysis:

50% of the respondents thinks that Higher ratio of successful calls given to the

customer is the key to become a successful broker. Motilal Oswal being best for its

Equity research in the industry can approach these clients as they would like to take

the research services of Motilal Oswal Securities in order to give more successful

calls to their customers.

Question 6: What are the factors for having a satisfied

client?

[60]


61/90

Factors needed to satisfy cleints

23 76.7 76.7 76.77 23.3 23.3 100.0

30 100.0 100.0

Prompt and timely serviceAll of the above

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent



All of the abovePrompt and timely se

Frequen

cy

30

20

10

0

Analysis:

More than 76% of the respondents believe that prompt & timely addressing of the

client Queries plays an important role for having satisfied clients. For the proper

address to the queries of the customer, the Sub broker would require the Customer

Care Support & Motilal Oswal is the only company in the industry which provides

[61]


62/90

this service to their Franchisee owners & hence these respondents can be convinced

by providing solution to this problem.

Question 8: What are the immediate challenges for this

industry & your plan to tackle this?

Immediate challenges for the industry

2 6.7 6.7 6.7

10 33.3 33.3 40.0

18 60.0 60.0 100.0

30 100.0 100.0

Lack of interest

Fresh capital dryingup in Indian and

foriegn markets

Cut cost & wait for

good times

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent

[62]


63/90



Cut cost & wait forFresh capital dryingLack of interest

Freq

uency

20

10

0

Analysis:

Around 60% of the population believes that immediate challenge for the industry is to

cut down on cost & wait for good times to come for the market which is an intelligent

option to go with. So, Majority of the population is still optimistic about the market in

the time of the recession & they are waiting for the good times to come.

Question 9: What is your perception about the road aheadfor this industry?

[63]


64/90

Perception about the road ahead as an industry

21 70.0 70.0 70.0

9 30.0 30.0 100.0

30 100.0 100.0

Recession would bot lastlonger than 2 quarters

The next cycle could be

bigger than previous one

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent



The next cycle couldRecession would bot

Frequen

cy

30

20

10

0

Analysis:

70% of the respondents are optimistic & they feel that recession in the market would

not last more than 2 Quarters. Hence this population wants to grow & expand the

business after waiting for some time.

[64]


65/90

Question 11: Where do you see your business after 5 years?

Where do you see your business after 5 years

12 40.0 40.0 40.0

6 20.0 20.0 60.0

1 3.3 3.3 63.3

10 33.3 33.3 96.7

1 3.3 3.3 100.0

30 100.0 100.0

NR

Having 10 branches

1 crore revenue per

monthTo be number one broker

others

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent

[65]


66/90



others

To be number one bro

1 crore revenue per

Having 10 branches

NR

Frequ

ency

14

12

10

8

6

4

2

0

Analysis:

Majority (40%) of the respondents were not interested in revealing their goals,

however out of the responses received 33% wants to be a no. 1 broker of their

respective area.

Question 12: In order to achieve the goal what kind of support they require?

[66]


67/90

BRND_VAL

4 13.3 13.3 13.31 3.3 3.3 16.7

1 3.3 3.3 20.0

2 6.7 6.7 26.7

22 73.3 73.3 100.0

30 100.0 100.0

NRRank 1

Rank 2

Rank 3

Rank 4

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent

SUCSCALL

4 13.3 13.3 13.3

6 20.0 20.0 33.3

12 40.0 40.0 73.3

7 23.3 23.3 96.7

1 3.3 3.3 100.0

30 100.0 100.0

NR

Rank 1

Rank 2

Rank 3

Rank 4

Total

ValidFrequency Percent

Valid

Percent

Cumulativ

e Percent

BCKOFF

3 10.0 10.0 10.0

14 46.7 46.7 56.7

6 20.0 20.0 76.7

7 23.3 23.3 100.0

30 100.0 100.0

NR

Rank 1

Rank 2

Rank 3

Total

Valid

Frequency PercentValid

PercentCumulative Percent

Marketing & business Development support

1 3.3 3.3 3.3

9 30.0 30.0 33.3

7 23.3 23.3 56.7

10 33.3 33.3 90.0

3 10.0 10.0 100.0

30 100.0 100.0

NR

Rank 1

Rank 2

Rank 3

Rank 4

Total

Valid

Frequency Percent

Valid

Percent

Cumulativ

e Percent

[67]


68/90



Rank 4Rank 3Rank 2Rank 1NR

Frequency

12

10

8

6

4

2

0

Analysis:

More than 50% of the respondents have ranked Marketing & Business Development

Support either 1 or 2, which means this support plays an important role in the growth

of the sub brokers.

[68]


69/90

5.3CROSS TAB ANALYSIS

Analysis - 1

Years since respondent is in the business * Length of the current setup

Crosstabulation

Count

2 2

2 9 11

1 16 17

4 10 16 30

< 2yr

2 to 5yrs

> 5yrs

Years since respondent

is in the business

Total

5yrs


Total

[69]


70/90



Count

20

10

0

Length of the curren

5yrs

An

alysis:

Majority of the Respondents have entered into the market with their own set

up. Group which has experience more than 5 years also has its set up in place for

more than 5 years.

Hence the respondents (More than 50 %) have good hands on experience in

running a set up.

So Motilal Oswal should partner its Franchisee with these respondents because

of their experience in running a setup.

Analysis 2

[70]


71/90

Years since respondent is in the business * Qualities attributed to be a successful broker

Crosstabulation

Count

2 2

4 2 5 11

9 3 5 17

15 5 10 30

< 2yr

2 to 5yrs

> 5yrs

Years since respondent

is in the business

Total

Higher

ratio of

succesful

trading

calls

A culture of

researche

d idea's

with good

infra and

service

All of the

above

Qualities attributed to be a successfulbroker

Total



Count

10

8

6

4

2

0

Qualities attributed

Higher ratio of succ

esful trading calls

A culture of researc

hed idea's with good

All of the above

Analysis:

Higher ratio of successful calls given by broker is seems to be everybodys

choice.

[71]


72/90

Respondents who have experience more than 2 years are also emphasizing on

research ideas coupled with good infrastructure.

Apart from this few of the respondents believes that for a successful broker one

cannot rely on any one particular quality, & one should try to have all thequalities.

Analysis 3

Immediate challenges for the industry * Perception about the road ahead

as an industry Crosstabulation

Count

2 2

7 3 10

12 6 18

21 9 30

Lack of interest

Fresh capital drying

up in Indian and

foriegn markets

Cut cost & wait for

good times

Immediate

challenges

for the

industry

Total

Recession

would bot

last longer

than 2

quarters

The nextcycle could

be bigger

than

previous

one

Perception about the road

ahead as an industry

Total

[72]


73/90


Cut cost & wait for

Fresh capital drying

Lack of interestC

ount

14

12

10

8

6

4

2

0

Perception about the

Recession would bot

last longer than 2 q

The next cycle could

be bigger than prev

Analysis:

The above cross tab analysis shows that the respondent who is optimistic & wants to

cut down the cost & waiting for the good time to come is also optimistic about the

market & saying recession would not last for more than 2 quarters means he is notpessimist & can guide the customers in a right way telling them about the correct

market scenario.

[73]


74/90

Analysis 4


others

Tobenum

beronebro

1crorerevenueper

Having10branches

NR

Count

7

6

5

4

3

2

1

0

Marketing & business

NR

Rank 1

Rank 2

Rank 3

Rank 4

Analysis:

Around 40% of the respondents have not revealed about their goals.

Out of the responses received, respondents who want to have 10 branches

ranked Marketing & Business Development support as 1.

Respondents who want to be a number 1 broker of their area have ranked

this service as 2 & 3, as they do not wish to expand their branches.

[74]

Where do you see your business after 5 years * Marketing & business Development support Crosstabulation

Count

1 2 1 6 2 12

4 1 1 6

1 1

2 4 4 10

1 1

1 9 7 10 3 30

NR

Having 10 branches

1 crore revenue per

month

To be number one broker

others

Where do you

see your

business after

5 years

Total

NR Rank 1 Rank 2 Rank 3 Rank 4


Total


75/90

Analysis 5


others


1 crore revenue per

Having 10 branches

NR

Coun

t

10

8

6

4

2

0

BRND_VAL

NR

Rank 1

Rank 2

Rank 3

Rank 4

Analysis:

[75]

Where do you see your business after 5 years * BRND_VAL Crosstabulation

Count

2 2 8 12

2 1 3 6

1 1

1 9 10

1 1

4 1 1 2 22 30

NR

Having 10 branches

1 crore revenue per

month


others

Where do you

see your

business after

5 years

Total


BRND_VAL

Total


76/90

Most of the big figures across categories are coming under rank 4, which means in

achieving any of the goals mentioned brand value doesnt play an important role.

Analysis 6

[76]

Where do you see your business after 5 years * SUCSCALL Crosstabulation

Count

2 3 6 1 12

2 1 3 6

1 1

2 5 2 1 10

1 1

4 6 12 7 1 30

NR

Having 10 branches

1 crore revenue per

month


others

Where do you

see your

business after

5 years

Total


SUCSCALL

Total


77/90


others


1 crore revenue per

Having 10 branches

NR

Count

7

6

5

4

3

2

1

0

SUCSCALL

NR

Rank 1

Rank 2

Rank 3

Rank 4

Analysis:

Above cross tabulation shows that respondents who have their goal as to be number

1 broker of their area are ranking Successful calls as rank 1 & 2 as these

respondents are not interested in expanding their horizons.

Analysis 7

[77]


78/90

Where do you see your business after 5 years * BCKOFF Crosstabulation

Count

1 7 3 1 12

2 2 1 1 6

1 1

5 1 4 10

1 1

3 14 6 7 30

NR

Having 10 branches

1 crore revenue per

month


others

Where do you

see your

business after

5 years

Total

NR Rank 1 Rank 2 Rank 3

BCKOFF

Total


others


1 crore revenue per

Having 10 branches

NR

Count

8

7

6

5

4

3

2

1

0

BCKOFF

NR

Rank 1

Rank 2

Rank 3

Analysis:

Respondents who want to be a no. 1 broker has ranked back office support as 1

or 3.

None of the respondent has ranked back office support as 4

[78]


79/90

5.4 Prospects Generated For Motilal Oswal Securities Ltd.

[79]


80/90

Case Summariesa

Sub Broker Pradeep Kumar

1 1Sub Broker Rishab Jain

Sub Broker Rahi Makkar

Sub Broker Param Hans Gupta

Sub Broker Ankur Gupta

Sub Broker Aman

Sub Broker Gaurav dhawan

Sub Broker Jitendra Acchra

Sub Broker Deepak Sanghwan

Sub Broker Rahul Securities

Sub Broker Pankaj Kumar

Sub Broker Karni Kalra11 11

Sub Broker Monu Kashyap

Sub Broker Rajesh Jain

Sub Broker Manu Singhal

Sub Broker Harish Sharma

Main Broker Nitin

Sub Broker Avnish Gupta

Sub Broker Deepak Singhal

Main Broker Sunil garg

Sub Broker Ashok Gupta

Sub Broker Mahindra Pal

10 10

Sub Broker Rajiv Gupta

Sub Broker Ajay Rastogi

Sub Broker Adarsh Arora

Sub Broker M.R. Sharma

Sub Broker Gopal Prasad Gupta

Sub BrokerAshish Kumar

Dalmia

Sub Broker Umesh Narang

Sub Broker Sanjay Garg

8 8

30 30

1

NTotal

0

1

2

3

4

5

6

7

8

9

10

11NTotal

1

1

2

3

4

5

6

7

8

9

10

NTotal

2

1

2

3

4

5

6

7

8

NTotal

3

NTotal

TOTAL

Type of broker Name of repondent

Limited to first 100 cases.a.

[80]


81/90

Analysis:

This table represents the clients having 0, 1, 2 and 3 values. These values are

calculated as the sum of three variables which were given either 1 or 0 value

depending upon various responses given by respondents in the questionnaire.

The clients having a sum as 3 are the best prospects as they wants to grow and wish to

be associated with Motilal Oswal Securities Ltd.

From the above table it is observed that, there are 8 prospects having a bright chance

for becoming a part of Motilal Oswal Securities Ltd. as they filled their Questionnaire

as follows:- Ranked Marketing - Business Development and Brand Value as 1 or 2.

Experience more than 5 years or Want to cash out the brokerage opportunity in

bull market.

Having 10 branches or to be the number one broker of that area as his 5 year

goal.

The above 3 criterias were selected after a brain storming session with all

trainees & Company Mentor. These options suits best for a Motilal Prospect as itprovides the Best Marketing-Business Development Support and is known for its

Brand Value & Equity Research in the Industry.

[81]


82/90

Chapter 6RECOMMENDATIONS

[82]


83/90

6.1RECOMMENDATIONS

Eight prospects have been generated out of the analysis of 30 respondents on

different parameters. BAG department should approach these prospects only

after doing the detailed study of their respective questionnaire as it will give

them a good idea about the prospect & Conversation would become much

easier & hence the chances of Conversion.

Apart from concentrating on experienced players, Motilal Oswal shouldpartner with the sub brokers who are in group 2 5 years as they are

enthusiastic & can also generate good volumes.

Since Sub brokers are not concentrating on the marketing front, Motilal Oswal

must expand its marketing & business development efforts for them.

Since the survey results reveal that Customer care support is required by the

sub brokers, Motilal Oswal expand on its customer care front by increasing the

no. of customer care executives.

Motilal Oswal should have

Documents

Final Report @ Mohit