project on future commmodity trade.doc

7/30/2019 project on future commmodity trade.doc

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AResearch ReportOn

Market Research on Commodities FuturesTrading

BYUPENDRA KUMAR

(MBA 2ND SEMESTER)

GUIDE:

Corporate Guide: - Mr. Amit Kumar Singh(Relationship Manager)

Faculty Guide: - Mr. G.K.Deshmukh(Senior Assistance Professor)

Institute of managementPt. rsu Raipur


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ACKNOWLEGDEMENT

First of all I would like to thank NIRMAL BANG Commodities

Ltd, which is a leading organization in commodity trading, for givingus an opportunity to work with them and to do Market Research,

Location Mapping, Cross selling to gain practical knowledge of how a

Commodities company works. Our special obligations to our

corporate guide Mr. AMIT KUMAR SINGH, who has directed us all

the way. He has shared his experience which has helped us to

approach right consumer and generate leads for the company as we

are doing cross selling too and through his guidance only I am able to

attempt this research project.

I like to thank Mr.G.K.DESHMUKH, our faculty guide, who guided us

accordingly where ever needed and was always ready to clear all our

doubts & queries.

I also like to thank our Director Dr.R.P.DAS, who promoted us to do

our Summer Internship Program with NIRMAL BANG Commodities

Ltd. I also like to thank all our faculties who have taught us and have

shared their experience with us which has helped us in doing our

project.

Date:Upendra KUMAR

MBA 2ND Semester

Place: Institute of ManagementPt.Ravishankar, University, Raipur(C.G.)


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TABLE OF CONTENTS

Acknowledgments Abstract Back ground Introduction

1. Problem statement

2. Research Objective

(i) Main purpose

(ii) Purpose of conducting survey

(iii) Scope of study(iv) Research Design of Study(v) Source of Data(vi) Sampling Plan

(vii) Data collection instrument(viii) Collection of data through questionnaires(ix) Organization of field work(x) Limitation of Study

9. Main Texti) Cross selling (A/C opening)ii) Location Mapping

10. Data Analysis and Interpretation

11. Findings ,limitations & Conclusion12. References13. Glossary


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ABSTRACT

This Summer Internship Project is a part of our MS (Marketing)course. We have done a market research on Commodities FuturesTrading. This Market Research has been done on behalf of NIRMALBANG Commodities Ltd. The main focus of this research is to knowthe consumer awareness about commodities trading. My project profilewas divided into three parts. First one was Market Research andsecond one was Location mapping (find out potential market in Raipur)& third part was cross selling (Account opening).This project report will be helpful for one who is looking for potentialmarket in Raipur for commodities business. It will also give information

about consumers awareness level about commodity futures trading.This information will be helpful for one who is thinking of opening anew branch or franchise in Raipur.The following topics have been covered in this market research:

Market research on awareness level of Commodities trading and major

player in commodities business.

Identification of target consumers for its Commodities future trading. Identify new market places. Cross selling of Commodities trading A/C.


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Background:

The researches were Basic and carried out to fulfill the dual

requirements of awareness and to gain a practical exposure of

the market.

All the research was based on Primary data collected via

interviews from respondents through questionnaire and also

depth interviews.

The market research undertaken by us can be

classified as basic research because basic research is the research

aimed at both gaining knowledge and solving a pragmatic problem.

The underlying motive is to increase knowledge about particular

phenomena by testing, elaborating theory without concern for

practical application. Similarly our study was done just to gain an

insight into the awareness level of people for NBCL; identify target

audience for NBCL and get the customer. The research applied was

both for finding the solution of an existing problem and to understand

the behavior of people.


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Introduction

The rapidly advancing technology, particularly theInternet, has drastically changed the social and economic landscapesand every aspect of our daily lives. In the Securities Industry &Futures Commodities, the Internet has facilitated on-line trading,changing the way the market works, as well as the way the investorsaccess the market. Having taken advantage of informationtechnology at an opportune time, India has emerged as a front-running country of on-line trading in the global securities &commodities markets.

On-line trading is broadly defined as a trading mechanism whereinvestors place orders and confirm trading results via electroniccommunication channels, such as the Internet, mobile phones, InIndia, the whole process of securities & commodities transactions,from order placement and routing, order execution, to tradeconfirmation, is fully automated, thus enabling the investors who haveplaced orders to confirm their trading results within few seconds.

1. STATEMENT OF THE PROBLEM

Online future commodities trading involve personal factors,

technical factors, business factors and economic factors. The

interplay of these factors on commodities market requires a deep

study about the pattern process and procedures and performance.

This study is intended to identify the various concepts about online

commodities trading and its way of functioning.

To identify the level of awareness of commodities online

trading.


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To identify the target consumer for online trading of

commodities.

Identify new potential market places in Raipur.

Create awareness among people in commodities markets &

convince them to open A/C.

2. OBJECTIVES OF THE STUDY

My project work programmed was also directed to some particular

targets and the main objectives of the study are as bellow;

To clearly state the awareness level about NIRMAL BANG

commodities.

To gain an Idea of the perception of people about NIRMAL

BANG commodities.

To devise an approach by making people aware of NIRMAL

BANG commodities & convince them to open A/C.

The Main purpose of conducting the Survey for

NBCL

1 To identify the target consumer for commodities business.2 To get a feel of the Customers perception about NIRMAL

BANG commodities services products.3 To find an appropriate communication message for attracting

the people to NIRMAL BANG commodities Ltd.

3. SCOPE OF THE STUDY:

Globalization of the financial market has led to a manifold increase in

investment. New markets have been opened; new instruments have


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been developed; and new services have been launched. Besides, a

number of opportunities and challenges have also been thrown open.

Online Commodities trading is new as compared to Equity market in

India. Mainly three exchanges are involved in online commodities

trading MCX, NCDEX & NMCE.

4. RESEARCH DESIGN OF THE STUDY

The study is based on survey technique. The study consists of

analysis about customers awareness and satisfaction of NIRMAL

BANG commodities Ltd. For the purpose of the study 100 customers

were picked up at random and their views solicited on different

parameters. The methodology adopted includes

Questionnaire

Random sample survey of customers

Discussions with the concerned

Personal interviews and informal discussions were held when I was

doing market research with new customers to ascertain the

awareness and existing consumers satisfaction level. Further

applying simple statistical techniques has processed the data

collected.


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5. SOURCES OF DATA:

Primary data: Questionnaire

Secondary data: Published materials of NIRMAL

BANG such as periodicals, journals, news papers, and

website.

6. SAMPLING PLAN:

Sampling: Since NIRMAL BANG enterprises Ltd have many

segments I selected commodities segment as per my profile to do

market research. 100% coverage was difficult within the limited

period of time. Hence sampling survey method was adopted for

the purpose of the study.

Population: (universe) customers & non consumers of NIRMAL

BANG commodities Ltd.

Sampling size: A sample of hundred was chosen for the purposeof the study. Sample consisted of small investors, large investors

and traders of NBC.

Sampling Methods: Probability sampling requires complete


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knowledge about all sampling units in the universe. Due to time

constraint non-probability sampling was chosen for the study.

Sampling procedure: From large number of customers & non

consumers sample lot were randomly picked up by me.

Field Study: Directly approached respondents (businessmen,

small shopkeepers, physical commodities traders and service

class people).

7. DATA COLLECTION INSTRUMENT

7.1 COLLECTION OF DATA THROUGHQUESTIONNAIRES:

The data collected for the study purpose is through questionnaires.

One hundred customers and non consumer were selected randomly

for the study purpose and then the information revealed from the

customers is analyzed and interpreted in the study.


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7.2 ORGANISATION OF FIELD WORK

Initial field work was done for pre testing tools for data

collection. The data was collected through the direct interaction with

the NBCL customers & non consumers through questionnairesanswered by them. One hundred customers of NBCL were randomly

chosen for the purpose of the study in fafadih Raipur branch.

.

8. LIMITATION OF STUDY

Since sample size is only 100, this is not a true representation ofthe population as a whole.

Since segment wise investors is not available in NBCL this means

consumers are not only investing in commodities they also

investing in equity ,insurance, mutual funds, wealth management

& investment Banking . Hence overall concept is taken for thestudy.

Information is partly based on secondary data and hence the

authenticity of the study can be visualized and is measurable.


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Level of accuracy of the results of research is restricted to the

accuracy level with which the customers have given their answers

and the accuracy level of the answers cannot be predicted.

MAIN TEXT

Cross selling (Account opening)

Account opening was also an important task of my SIP

Profile. Before account opening I had to make clients fully aware &

totally convinced as to how commodities market works for their

investment plan & earning. After that they were ready for fulfilling total

criteria for account opening like

1. PAN card is must

2. Address proof (Voter ID, DL, telephone Bill,

electricity Bill)

3. Bank statement and cancelled cheque.

4. Two photographs

After this the next step was consumer got trading ID number &

through this ID based on the amount of margin money they can trade

in futures commodities market (Metals, Agro-product & energy). If theinvestment is appropriate to get the exposure then client can get two

or more times exposures on different commodities. If the market

condition is favorable then to get exposure is very profitable for the

traders.


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Location Mapping

It is also a very important phenomenon which involves finding

out potential market in Raipur region whether it is nearby or far off.

As far as my location mapping was concerned I focused mainly on

Mandi Market. During this activity I found out .

Area:-

This is known mainly for agro- commodities market.

1) Sadar bazaar:-

We can see everything from a needle to the part of aero plane. But

the area like

Sadar bazaar (jewellery market): in this market there are nearly a

lot of jewellery shops. But they are not interested to do direct

commodities trading. They do not interest the commodity trading, it

means they invest money through the actual business.

2) Moudhapara.Road - this area also seems to be productive.

3) Station road this is a place of mixed market but the traders have

some interest in commodity trading.

4) Ravi Bhavan market- this market is basically known for Wholesale

market of mobile & Stationery Products. Here response level is very

positive.


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5) k. k. Street this is mainly for trader. Customers profiles are not

big and they are small traders & the interest level is normal.

6) Main road Birgaon In this market there are electronic & electrical

shops, mobiles, general stores, shoes, garments etc. We can say

that it is a mixed market for all things. Interest level is very low in

commodities.

7) Shahid chowk Many securities companies are having their

offices here corporate clients & computer shops are in majority, they

are mostly doing trading in equity.

8) GE Road it is located at central part of Raipur city .But the

response is low.

9) Gurudwara Chowk stations Road there are near about 70 shops

in this market. Businessmen are doing well in iron & steel products.

Here response level is good.


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DATA ANALYSIS AND INTERPRETATION

1. Customers preference over other depository services in NIRMAL BANGcommodities Ltd.

Attributes No. of Persons Percentage

Quality Service 50 50

Safety 20 20

Reach 12 12

Vast variety of Service 4 4

Nothing in Particular 14 14

Chart no.1) Percentage of customers preference over other depository services inNBCL.

0

10

20

30

40

50

60

Quality

Service

Safety

Reach

Vast

varietyof

Service

Nothing

in

Particular

CUSTOMER

Interpretation: - From the above statistics it is observed that in the survey 50%customers justify that NBCL is providing quality services as compared to otherdepository services


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3.) Customers awareness of the new services offered by NBCL.

Through

NBCL

News Paper/

Magazines

Broker Agents Others

50 10 8 32 0

50% 10% 8% 32% 0

Chart no.3) Customers awareness of the new services offered by NBCL.

0

10

20

30

40

50

NBCL Brokers Others

customers

Interpretation: - According to the survey 50% customers know the services throughNBCL and 32% through NBCL agents.


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4.) Customers first source of awareness

Through

NBCL

News paper /

Magazines Broker Agents Others

34 12 14 34 6

34% 12% 14% 34% 6%

Chart no.4) Customers first source of awareness

0

5

1015

20

25

30

35

Through NBCL Brokers Others

Customer

Interpretation: - According to the survey the first source of information is NBCLitself and the

Agents.


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5.) Customers satisfaction of the services of NIRMAL BANG commodities Ltd.

SatisfiedMostlySatisfied

NeitherSatisfied /Unsatisfied

MostlyUnsatisfied

Unsatisfied

64 24 10 2 0

64% 24% 10% 2% 0

Chart no.5) Percentage ofcustomers satisfaction of the services of NBCL.

0

10

20

30

40

50

60

70

Satisfied Neither

satisfied/unsatiusfied

unsatisfied

Customer

Interpretation: - According to survey 64% of customers are satisfied with the

services of Nirmal Bang commodities Ltd and 24% are mostly satisfied. Then we can

say that RCL offers quality service that touches customers satisfaction level.


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6.) Customers satisfaction with the trading provided by the NBCL.

SatisfiedMostlySatisfied

NeitherSatisfied/

Unsatisfied

MostlyUnsatisfied

Unsatisfied

52 24 20 4 0

52% 24% 20% 4% 0

Chart no.6) Percentage of customers satisfaction with the trading provided byNBCL.

0

10

20

30

40

50

60

satisfied neither

satisfied/unsatisfied

unsatisfied

Customer

Interpretation: -According to the survey 52% of the customers are satisfied with

the Trading that are conducted by the NBCL. 24% are mostly satisfied. So we can say

that NBCL customers are getting benefit of trading provided by the NBCL and

employees can able to solve the queries of the customers.

7.) Customers satisfaction when dealing with the problems through NBCL.


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Schemes / Services No of Persons Percentage

Frequent reminders are given toNBCL for update of the

information

24 24%

Irregular receipt of Holding /Transaction statements

22 22%

Improper format of Holding /Transaction statements

16 16%

Improper attention given to theenquiries

14 14%

Margin Money Problem 10 10%

Inadequate information 14 14%

Chart no.7) Customers satisfaction when dealing with the problems throughNBCL.

0

5

10

15

20

25

updates statement format enquries margin

money

inadequate

info.

custome

Interpretation: - According to the survey, 24 persons are not satisfied with the

frequent reminders which are given to the NBCL for update the information, 22 persons

are not satisfied with the irregular receipt of holding or transaction statement, 16 persons

are not satisfied with the format of holding or transaction statements, 14 persons are not

satisfied attention given to the enquiries, 10 persons are not satisfied with the margin

money system and 14 persons are not satisfied with the information provided by the

NBCL. So, we can say that these systems demand immediate attention for improvement

8.) Customers preference for NBCL over its competitors


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QualityService

Rates chargedNothing inParticular

Safety Reach

52 10 24 8 6

52% 10% 24% 8% 6%

Chart No.9) Percentage ofcustomers preference for NBCL over its competitors

0

10

20

30

40

50

60

quality

service

rates

charged

nothinmg

in

particular

safety reach

customer

Interpretation: - According to the survey 52% of customers justify their preferences

for NBCL for quality services, 10% for rates charged and 8% for safety. So, we can say

that NBCL provides better quality services than its competitors.

CHAPTER- 4


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FINDINGS, LIMITATIONS & CONCLUSION

4.1 FINDINGS

1 NIRMAL BANG commodities Ltd customers are more satisfiedwith the quality services.Holding securities in electronic form gives some far-reachingadvantages to the investors.

2 NIRMAL BANG enterprises Ltd offers a wide choice of productsfor investing in the stock market & commodities market. Itallows investing in shares, mutual funds and other financialproducts. With NBCL one can manage own de-mat & tradingaccount independently.

3 The depository participant will allow an investor to trade throughany broker of his choice registered with the commoditiesexchanges connected with NCDEX, MCX & NMCE.

4 Investor can do online trading himself only.

5 Transaction details for the traders would be available online..

4.2 LIMITATIONS


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Some customers feel that they should be trained by NBCL for

giving demo of on line commodities trading.

Survey reveals that most of the customers are not aware of theservices of NBCL. I found the normal tendency of the customerwas to prefer Equity as compared to commodities. So NIRMALBANG commodities Ltd should create an awareness of whatexactly is meant by Commodities and explain all other services ofNIRMAL BANG enterprises Ltd.

After getting the printouts of the contract note, dispatch of the

same should be taken place with no delay and this can be cross

verified with the sender (dispatch section).

Customers are facing over crowding, non-availability of telephone

lines, so proper measures should be taken to overcome theseproblems.

The NBCL official should conduct regular seminars on

commodities trading.

World of mouth is very negative because most of the securities

companies mainly focus on equity market and they misguideconsumers because of, lack of knowledge in commodities or lackof Dealership.


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BIBLIOGRAPHY

BIBLIOGRAPHY


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BIBLIOGRAPHY:

1. Marketing management, Philip Kotler

2. Market research management, Naresh Malhotra

3. Kothari C.R. research methodology Second revised edition 2004,

new age international publishers 4835/24

New Delhi 110 002

4. The economic times

5. Daily market commentary, daily research reports on metals & agro

Products of Nirmal bang commodities Ltd., magazines etc.

7. http//wikipedia.org/wiki /

8. www.mcxindia.com

9. www.nirmalbang.com

10. www.ncdex.com11. www.rediff.com

12. www.businessstandard.com

GLOSSARY


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MCX Multi Commodity Exchange

NCDEX National Commodity and Derivative Exchange

NMCE National Multi commodity Exchange

CRN Customer Relationship Number

NBCL NIURMAL BANG Commodities Ltd.

PAN Personal Account Number

NBCL NIRMAL BANG Enterprises Ltd.


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APPENDIX

SCHEDULE

Respected Sir / Madam,


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I am conducting a survey entitled INVESTOR PERCEPTION TOWARDS

MUTUAL FUND - A STUDY IN RAIPUR CITY. I need your help in conducting this study.

Kindly provide me your valuable opinion to fill this schedule. Your information will be kept

confidential and will be exclusively used academic purpose only.

UPENDRA KUMAR

MBA II SEMESTER

INSTITUTE OF

MANAGEMENT

PT. R.S.U. RAIPUR (C.G)

Part 1

Demographic Information

1. NAME: ________________________________

2. ADDRESS: ______________________________

3. PHONE NO: ______________________________

4. Age:

Below 30 years 30 -50 years

50-70 years 70 and above

5. Gender: Male Female

6. Marital status: Married Unmarried

7. Education: undergraduate graduate

Post graduate

7. Occupation: ____________________________

8. Annual Income:

Below Rs: 200,000 Between Rs: 200,000 to Rs: 500,000

Between Rs: 500,000 to Rs: 1,000,000 above Rs: 1,000,000

Part2

Q.1 your preference about depositary service in NIRMAL BANG Commodities Ltd.


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Quality service safety

Reach vast variety of service

Q.2 what is your type of investment.

Small investment long term investment

Traders

Q.3 how you aware about the new service.

Through NBCL news papers/ magazines

Brokers Agents

Other specify

Q.4 what is your first source of awareness.

Through NBCL news paper / magazines

Brokers Agents

Others

Q.5 how you satisfied with the service of NBCL.

Satisfied mostly satisfied

Neither satinfied/unsasfied mostly unsatisfied

Unsatisfied

Q.6 satisfaction with the trading provided by Nirmal bang commodities Ltd.

Satisfied mostly satisfied

Neither satisfied/unsatisfied mostly unsatisfied

Unsatisfied

Q.7 satisfaction about NBCL when you dealing with the problems through NBCL.

Updates statements

Format equipments

Margin money inadequate information

Q.8 how you prefer for Nirmal bang commodity over its competitors.


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Quality service rates charged

Nothing in particular safety

Reach

Thank you!

DATE:

SIGNATURE

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project on future commmodity trade.doc