A

Summer Project Report on

Present and Proposed Service Marketing Strategies of MajorGainz (North)

Submitted in partial fulfillment of the requirements of the two year Post Graduate Programme (PGP)

Submitted by

Anshul Kumar

……………………………………………………………………………….

Roll No: PG20095481Batch: 2009-2011

IILM Institute for Higher Education, Gurgaon

Declaration

I hereby declare that the Project work entitled, Present Marketing Strategy Analysis and

Proposed Marketing Strategy of MajorGainz (North) submitted by me for the partial fulfillment

of the Post Graduate Program (PGP) to IILM Institute for Higher Education, is my own original

work and has not been submitted earlier either to IILM or to any other Institution for the

fulfillment of the requirement for any course of study. I also declare that no chapter of this

manuscript in whole or in part is lifted and incorporated in this report from any earlier / other

work done by me or others.

Anshul Kumar (PG20095481)

Place :

Date :

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Acknowledgement

I express my heartfelt gratitude to Mr. Sandeep Sharma (Sales Manager: Prabhudas Lilladher North Region), for giving me the opportunity to undertake a project on Present Marketing Strategies analysis and proposal on Marketing Strategies of MajorGainz (North) under his guidance and observation.

I also express my deep sense of gratitude to my mentor Ms. Abha Chugh (Placement officer ,IILM Institute for Higher Education, Gurgaon) for her unflinching support and making herself available for discussion and providing me as required facilities whatever, whenever needed throughout duration of my dissertation.

Last but not least I would like to sincerely acknowledge the help received from various persons and sources in collecting data’s and information in completing this satisfactory Project.

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Contents

Executive Summary

• Industry and Company Analysis

Industry Overview and Analysis 8

Prabhudas Liiladher (Group Companies ) 11

Majorganiz: Overview and Network 13

Management and Sales Hierarchy of Majorgainz 15

Competitor Analysis 18

• Present Marketing Strategy Analysis

7 P’s of Service Marketing 24

STP Analysis 37

Respective Marketing Research 41

• Data Analysis and Interpretation 41

• Proposed Marketing Strategy

Key issues 50

Proposed Marketing Strategies 51

• Conclusion 58

• Limitations of Project 59

• List of figures and tables 60

• References 61

• Annexure 62

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Executive Summary

Though the Indian brokerage industry has been consolidating steadily over the last 10 years, the share of the top 10 brokers has risen to only around one-fourth of the total industry revenues. In this fragmented market, leading players like Religare Securities, ICICI Direct, Kotak Securities, Indiabulls and Sharekhan, apart from many small players, compete on the basis of low brokerage fees and customer service.

NajorGainz (Online trading division of Prabhudas Lilladher) is one of those small players which do not have its public share offering in Indian Capital market till now. Despite being an out and out private ownership company, Prabhudas Lilladher broking arm has many loyal and satisfied customers in Western India including states such as Gujrat and Maharashtra. In order to expend its business and awareness about this one of the oldest broker houses of country ,Company recently came to North India, opening branch offices in New Delhi and Noida. As per other competitors in north Indian market, Prabhudas Lilladher Pvt. Ltd has aim to position itself as a niche marketer in Electronic or Online Trading.

Here it is important to know that Electronic trading or online trading is a mode of trading that uses information technology to bring together a buyer and a seller through electronic media to create a virtual market place. Compared to the Western countries, online trading is still in its infancy in India’s-Trading, refers to screen-based on-line trading of and investing, and other transactions in equity stocks and several other financial products, including bonds, forex, and derivatives of all genres.

This report analyzes the Indian retail brokerage industry, taking into account the health of the capital markets and the intensity of competition among the brokerage companies. Michael Porters Five Forces Analysis has been employed to understand industry attractiveness. The report covers all important segments of the industry and also analyzes where Prabhudas Liiladher pvt. Ltd. Stands through marketing research helps in finding out weaknesses of Prabhudas Liiladher Pvt. Ltd. So that flawless service marketing strategies can be designed. In short this project has certain project objectives given below:

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Industry Analysis through Porter’s five force model

Identification of strength , weaknesses , opportunities and threat for Majorgainz

Competitive Analysis of MajorGainz and comparison of competitive services and products

Analysis of present marketing strategies of MajorGainz (Service marketing mix , Segmentation, Targeting and Positioning strategies )

Marketing research in order to identify corrective new service marketing strategies

Data Analysis , Presentation and Data interpretation

To know the customer consideration about different factor.

Proposal on Marketing strategies of MajorGainz

Identification of possible shortcomings

Research Design

In this project various tools of Exploratory Research are used. This research was done to gain background information of the problem. An initial research was conducted to clarify and define the nature of the problem. The various tools used are experience surveys, in depth interviews, secondary data analysis. And then Descriptive research was done where questionnaires were given to the males and females to find out the perception about present online trading companies in those regions.

Questionnaire Design

The questionnaire consists of predominantly closed ended and option based question in order to provide some ease to the respondents. In order to make the questionnaire more effective following points are covered:

• Uniformity in questions and ease of tabulation and analysis.

• Reduce subjectivity

• Easier to receive response

• Less time consuming.

The questions tried to cover all aspects required to analyze each and every aspect of Prabhudas Liiladher and other competitive brands. The various variables are analyzed in the questions.

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Sample Plan and Sample Techniques

The project survey was conducted for the geographical region of New Delhi, Gurgaon and Noida. The sample size comprised of 60 respondents. The sample consists of both the males and females of the every possible profession as Non probability Sampling Technique (Convenience Sampling type) is used to obtain data analysis.

Data Collection

The data collection exercise was carried over a period of 15 days, in the various possible locations where it was easy to find out respondents who are interested in share market. In Gurgaon Locations such as DLF Phase 1 and Sector 14, in New Delhi Cannot Place, Kirti Nagar, and in Noida Sector 18 were selected as locations to conduct survey. Over the period of 15 days the data was collected and then all the data was very carefully studied and the results were found in order to make data representation Microsoft Excel was used as data representation tool.

After conducting Competitive analysis and Questionnaire Survey it was found that When we talk about online share trading some companies such as Sharekhan and Indiabulls come in mind because these companies positioned themselves as better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell.

On the other hand despite being very famous in west India, North Indian people are not much aware of Prabhudas Lilladher one of them is because of lack of strategic marketing strategies while North India is going to be biggest market in India of Share trading. This Project is a chance for Prabhudas Lilladher to over come the weaknesses while using its strengths so that competitive advantages of company can be communicated to its potential customers.

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Industry Analysis

The Indian retail brokerage industry consists of companies that primarily act as agents for the buying and selling of securities (e.g. stocks, shares, and similar financial instruments) on a commission or transaction fee basis.

The Indian retail brokerage market is showing phenomenal growth. The total trading volume of brokerage companies has increased from US$1239.1 billion in 2004 to US$1492.1 billion in 2005, and is expected to reach US$6535.7 billion by 2015.

The Indian broking industry is reasonably large and fragmented with 9,000 odd brokers in the cash segment and around 24,000 sub-brokers. The market share of the top ten brokers in India has remained largely stagnant in the past four years. The top five brokers in India still control around 15-16% of the market share. Historically, retail trading contributed around 60% of the market and FII’s averaged around 20%.

Key developments in this industry included conspicuous expansion in distribution pan India with greater diversity offered in financial product offerings and an increased emphasis on proprietary research output. There was a greater than before interest towards engendering a global footprint.

The average daily turnover at the exchanges has increased from Rs851crore in 1997-98 to Rs 1284crore in 1998-99 and further to Rs 2273crore in 1999-2000. NSE has around 1500 shares listed with the total market capitalization of around Rs9, 21,500crore. Increasing appetite for equities among investors, the convenience of online trading and declining brokerage fees are the major growth drivers of the Indian retail brokerage industry.

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Major Trends

o Fall in brokerage feeso Adoption of technology through screen-based trading, electronic matching, and paperless

securitieso Centralized operations, effective risk management, and control on large interconnected

operations spanning multiple locations. o Increasing access to capital and the ability to provide margin financeo Some of the main characteristics of the brokerage industry include growth in e-broking,

growing derivatives market, decline in brokerage fees etc.

Porters Five Forces Analysis

Buyer’s Bargaining Power: Moderate

Lack of Expertise Curtails Bargaining Power: Retail investors often lack the knowledge and expertise in the financial sector that calls them to approach the broking houses. Complicated process of application and long period of activation de motivates investors to switch quickly.

Low Product Differentiation Proves Beneficial: 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.

Supplier’s Bargaining Power: Moderate

Increased Dependence on IPOs: There is growing dependence of corporate on broking houses with the rising number of IPO’s coming to the market where Suppliers are attracted to profitable company

Intensity of Competition: High

Move towards consolidation: Lot of brokerage companies are 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.

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Online Trading Competes with Traditional Brokerage: There is an increasing demand for online trading due to consumer’s growing preference for internet as compared to approaching the brokers.

Threat of New Entrants: High

Entry of Foreign Player: 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.

Easy Process for being a broker: Any one can easy start broking firm after paying a fixed amount to Regulator of Indian Market with very little formality

Threat of Substitutes: High

Alternative Investment Options : Various alternative forms of investment including fixed deposits with banks and post offices etc act as substitutes to retail broking products and services.

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Prabhudas Lilladher Group

Prabhudas Lilladher is one of the India’s leading financial service houses, was established as a brokerage house in 1944 by Mr. Prabhudas Lilladher Sheth. It provides a complete range of financial services in the Institutional and Retail domain. It has nationwide distribution network through branches, franchisees and associates. It has Strong adherence to founding principles of integrity, transparency and accountability.

Vision

To be a leading financial services house providing maximum value addition by offering innovative products and services

Approach

Prabhudas Lilladher is committed to provide excellent customer service while maintaining the highest levels of ethical and professional conduct. At PL, integrity, transparency and accountability form the founding principles, to which Prabhudas Lilladher strictly adheres.

Prabhudas Lilladher adopts a service-centric approach, providing customised and practical solutions that are most pertinent for their clients’ businesses. Prabhudas Lilladher works in close association with each individual client to provide outstanding financial insights, while maintaining complete transparency throughout the process.

Work culture

Over the years PL has nurtured and advocated excellence as thier attitude; Company believes in delivering the best constantly and consistently.

Experience has proved that effective communication is the key to success. Therefore the open door policy at PL is another defining aspect of their Organizational Culture.

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PL puts our employees on the fast track and throws open challenges, encouraging excellence. Moreover PL strongly believes in acknowledgement as a strong motivational tool, thus performers are duly rewarded. Company always looks out for ideas, creativity and innovation.

Group Companies

Prabhudas Lilladher Advisory Services Private Limited

Prabhudas Lilladher Advisory Services Private Limited is the group holding company. Besides providing financial advisory services to the Corporates, the Company helps its clients to raise resources from domestic & global investors through various instruments.

Prabhudas Lilladher Private Limited

Prabhudas Lilladher Private Limited is the stock-broking arm of the PL Group. A member of the National Stock Exchange and The Stock Exchange, Mumbai, PLPL provides equity trading facilities and related products and services on these premier exchanges. PLPL also known as Majorgainz offers these services through all branches, Progress Partner locations and the internet (www.majorgainz.com).

Prabhudas Lilladher Financial Services Private Limited

Prabhudas Lilladher Financial Services Private Limited is the non banking financial services (NBFC) arm of PL group. An RBI-approved NBFC, PLFS offers Loans and Margin Funding against approved securities to meet the fund requirements various borrowers.

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PL Capital Markets Private Limited

PL Capital Markets Private Limited offers capital raising and other investment banking services including the management of public offerings, private placements (including qualified institutional placements), rights issues, share buybacks, open offers/delistings, Valuation services, mergers & Acquisitions etc.

PL Fund Advisors Private Limited

PL Fund Advisors Private Limited offers Wealth management services across the entire spectrum right from equities to Mutual Funds, Private equity, Insurance, Real Estate, Art Funds among others.

PL Distribution Company Private Limited

Distribution of Financial Products including Mutual Funds and IPOs is offered by PL Distribution Company Pvt. Ltd. With a reach across cities in India, we service the needs of investors pan-India.

Prabhudas Lilladher Pvt. Ltd. (MajorGaniz)

Prabhudas Lilladher Pvt. Ltd. provides equity research and brokerage services for the institutional and retail clients. The company offers a range of investment products and services, which include offline and online equity execution systems; trading in derivatives that include hedging and index arbitrage; online trading; portfolio management services; portfolio advisory services; and initial public offer services. It also provides depository services, such as account opening facilities, dematerialization of physical shares, re-materialization, pledging, and

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settlements; mutual funds; reports on select companies by research analysts, daily market reports, and economy overviews.

Founded 1944

Headquarters Worli , Mumbai

Company Type Private Limted

Industry Financial Services

No. of employees 400

Status Operating

Key people

Amisha Bora (Group Joint Managing Director)

Dilip Bhat (Group Joint Managing direct)

Mihir Sheth (Group Executive Director)

Rakesh Bharuch (Group CFO)

Subrahmanian Analakkatt (President Operational Settlement )

Achievements Ranked 8th Best Indian Broking House by Asia Money 2007

Rated 3rd in generating small cap ideas by Asia Money 2007

Associated Banks ICICI and HDFC Banks

Sub Brokers

SRG Investment Consultants

Mulki Investments & Financial Consultants (Pvt) Ltd.

Parekh Shares & Securities

Website http://www.plindia.com

Network

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Name of the City

No. of Branch offices

State Name of the City No. of Branch offices

State

Ahemdabad 1 Gujrat Mumbai (Head office) 3 MaharashtraBharuch 2 Gujrat Nadiad 1 GujratChennai 1 Tamilnadu Nagpur 1 Maharashtra

Durgapur 1 West bengal New Delhi 3 UTjaipur 1 Rajisithan Satana 1 Madhya

PradeshKannur 1 Kerela Surat 1 GujratKocchi 1 Kerela Thiruvananthapuram 1 KerelaKolkata 1 West bengal Vadodara 1 Gujrat

Vashi 1 Maharashtra

Management and Sales Organization Structure

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Prabhudas Liiladher Pvt. Ltd. Follows territory design organization structure when it comes to sales organization structure where every salesperson is assigned a specific area for sales responsibilities

Advantages:

Limits travel time and cost

Better customer service – more personal involvement

Limited conflict of responsibilities and rewards

Possible to develop and execute territory specific marketing/promotional strategy

Disadvantages

No product specialization

No customer specialization

Duplication of sales effort/staffing requirements

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Management Trainees work under supervision of Relation manager / Relation executive. They accomplish task given by relation manager/executive. Check Sometimes Sales Manager takes class room training and over check the performance of trainees once in a week

SWOT Analysis of MajorGainz

Strengths

Six decades of experience

Strong communication network

Upgraded product design

Research excellence and institutional experience

Wide range of products

Transparency

Weaknesses

Competition from cheap imports.

Low customer base.

High employee turnover.

Opportunities

Growth rate brokerage industry and it is expected that this rate will be maintained in future also.

Marketing at rural and semi-urban areas.

Increased spending power.

Threat

Increasing number of local players.

Constant pressure to be cost competitive to meet customer expectations.

Relentless pressure to maintain profitability due to rising.

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Competitor Analysis

Company Profiles It includes company profiles of the following companies.

Indiabulls Financial Services Limited (www.indiabulls.com)

India Infoline (www.5paisa.com)

Sharekhan (www.sharekhan.com)

Karvy (www.karvy.com)

Religare Securities (www.religare.in)

And finally the comparative Competitor analysis is done on the basis of

Product Comparison Pricing Comparison Service Comparison

The competitive positioning of various firms is also studied on the parameters such as Website: Ease of use, Pace of transaction execution, Trading Terminal facility, Tie up with banks, Branch network and Customer service.

Indiabulls

HQ Region Delhi Area, India

Industry Financial ServicesType Public Company

Status OperatingCompany

Size10,000 employees

2007 Revenue

11,819 million [INR] (102%)

Founded 2000Website http://www.indiabulls.com

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Indiabulls Group is one of India’s top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power sectors. The group companies are listed on important Indian and Overseas markets. Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India.

India Infoline

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com The Company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000customers.

HQ Region Mumbai Area, IndiaIndustry Financial ServicesType Public CompanyStatus OperatingCompany Size 15,000 employees

Founded 1995Website http://www.indiainfoline.com

Sharekhan

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Sharekhan Limited offers online security broking and portfolio services to institutions and large corporate houses as well as individual investors. Sharekhan Limited was formerly known as SSKI Investor Services Private Limited. The company is based in Mumbai, India.

HQ Region Mumbai Area, India

Industry Financial Services

TypePrivately Held

Status Operating

Company Size

1001-5000 employees

Website http://www.sharekhan.com

Karvy

Karvi is a leading player in the financial services industry in India. Karvy has presence with leadership position in a wide range of financial services including Broking, Commodities, Registry Services, Merchant Banking, Realty services etc. The group also has presence in the BPO services and technology services space. IT’S a professionally managed and highly focused financial intermediary in the Indian markets.

HQ Region Hyderabad, India

Industry Financial ServicesType Public CompanyStatus OperatingCompany Size 7,000 employees

Founded 1981Website http://www.karvy.com

Religare

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Religare Enterprises Limited (REL) is a global financial services group with a presence across Asia, Africa, Middle East, Europe and the Americas. In India, REL’s largest market, the group offers a wide array of products and services ranging from insurance, asset management, broking and lending solutions to investment banking and wealth management. The group has also pioneered the concept of investments in alternative asset classes such as arts and films. With 10,000 plus employees across multiple geographies, REL serves over a million clients, including corporates and institutions, high net worth families and individuals, and retail investors.

HQ Region Delhi Area, IndiaIndustry Financial ServicesType Public CompanyStatus OperatingCompany Size

10,000 employees

Founded 2006

Website http://www.religare.in

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Competitive Analysis on the basis of product, Charges and Service Offered

In online trading Indiabulls has mainly competition with Religare, ICICI-Direct and Sharekhan. Prabhudas Lilladher broking has an advantage of being in this industry for more than six decades. It has launched its website and was among the first players in the online share trading. All companies have decided to spend its advertisement budget through four media i.e. Television, Print, Web and Outlets.

Sharekhan ICICI Direct India-infoline

Religare Indiabulls Karvy

Account opening charges(Rs.) Nil

750 (Refundable) 555 500

750 and250 452

Annual maintenance charges(Rs.)

After one year 500 Nil 250 Nil 330

Brokerage rate (intraday) 0.05% 0.10% 0.05% 0.05% 0.10% 0.50%

Delivery 0.50% 0.75% 0.20% 0.50% 0.50% 0.25%

Online demat & trading facility Yes Yes Yes Yes Yes No

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Relationship manager

Yes No No No Yes No

Software facility Yes On interest No Yes Yes No

Tips & research facility

Yes On Interest Yes No Yes No

Online Interface Good Poor Average Average Good Average

Comparison between Advance brokerage charging firms

Religare come up with less brokerage charges but big advance brokerage . Major Ganiz here stands somewhere between religare and Sharekhan Securities( which charges less advance brokergae than Religare and much lesser brokerage charges).Here Reilance money provides option of different upfront brokerage at the same advance brokerage fee, with different trading limits.Major Gainz advance brokerage schemes come in form of two plan types: Power and Turbo Range respectively.Plan pricing is mentioned under Pricing ‘P’ of service marketing in Project later.

PlansAdvance

Brokerage fee

Upfront brokerage Validity

Trading limit

A 750 500 1 year 2 lakhs

B 750 1000 2 months 1 crore

C 750 2500 6 months 6 crore

D 750 5000 12 months 7 crore

E 750 10000 12 months 20 crore

Fig : Advance brokerage plans at Reliance Money

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Fig : Advance brokerage plans at Religare Securites

Certaintly if we compare different Advance brokerage plans than Reliance Money stands out as unique and chapest advance brokerage plan provider as different upfront brokerage at the same advance brokerage fee, with different trading limits make it simple and easy to prospects.

On the other hand Sharekhan Securities comes up with different advance brokerge plans which are designed considering usage rates of customers.Advance brokerage plans by Religare Securities are least complicated to understand and come in only two account type : Raily Dhanaka Plus and Raily Dhamaka Grand respectively. These two plans require lesser advance brokerage and brokerage charges than Sharekhan Securities.

Advance Brokerage 750 1000 2000 6000 18,000 30,000 60,000 1,00,000 2,00,000

AO Charges (Rs)

Free Exe App Charges

Annual Maintenance Charges

400 Rs. (After one year)

Non Adjustable Option

Brokerage on Intraday (Paise) 10 Ps 9 Ps 7 Ps 5 Ps 4 Ps 3 Ps 2 Ps 1.5 Ps 1.5 Ps

Brokerage on Delivery (Paise)

50 Ps 45 Ps 40 Ps 25 Ps 20 Ps 18 Ps 15 Ps 10 Ps 10 Ps

Validity Period 6 Months 6 Months 1 Year

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Fig : Advance Brokerage plans by Sharekhan Secutities

Present Marketing Strategies Analysis Of

MajorGainz (North)

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7 P’s of Service Marketing

Segmentation Strategies

Targeting

&

Positioning Approach

Product Elements

The Product is coming in two different types: Power and Turbo type Dmat accounts and the nature of both product types is out and out intangible.

Core Features: Online Trading

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Bundle of Supplementary service: Newsletter/ Sms and Calls or Combo Pack, Respective advisory services (Derivatives Desk), user access to account information anytime anywhere through www.plclients.com

Service Features: PL offers world-class trading experience in equities, exchange traded funds, option trades and more with a personal touch. Account holder will have access to top-quality research, expert dealing facilities, e-broking, depository services and investment advisory. Timely trading calls for various risk return patterns helps make the most of market opportunities. Furthermore, Company also has a professionally managed Derivatives Desk to take care of trader’s specific needs and help user to maximize his/her returns by applying strategies devised by company expert team. A centralized back office operation gives user access to all your account information anytime anywhere through www.plclients.com

Fig

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Figure: MajorGainz news latter comes through Email else than this Special advisory tips are sent to uses through Sms /Calls

Benefits Delivered to customers

All India network so convenience of getting service everywhere in metro cities and semi urban.

Integrity Wide range of equity products Six decades of experience Research excellence in supplementary services such as Advisory support Institutional experience and transparency

Place and Time

With a client centric focus, company strives to provide the convenience of trading in equities and derivatives through multiple channels; through their branches, any of their franchisee centers, teletrade or online through thier online trading portal www.majorgainz.com

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In this case Service Provider (Company) goes to Clients: When management trainees are sent to clients to fulfill all formalities required getting core benefits of services. Within Seven days through Email or Sms the Confirmation of Dmat account Username and password is sent to user. Same methodology of confirming core services to user is used when Client itself comes to Service factory (branches, any of PL franchisee centers, tele-trade or online trading portal www.majorgainz.com.) For Intraday customer timing of service delivery is limited till trading hours and Monday to Friday but for delivery service can be served 24 hours and all seven days.

Promotion and Education

Marketing Communication tool

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In all media elements (print, broadcast, outdoor, retail, Internet, etc.) only Internet is used for communicating the benefits of using Majorganiz services. Even else than it’s online trading site: majorganiz.com, advertisements of services are not published anywhere. On its web portal company advertises its supplementary service benefits only.

Prospects contact no. data collected via cold calling motivates employees to tell core and supplementary benefits to potential customers and the approach of differentiation is used via telephone marketing. At the time of Cold calling or prospecting company keeps on making sure that they are collecting the contacts of promising customers only.

Similarly Company is not into Public relations so all advertising or promotion of company is done via Word of mouth via existing users and Company employees who are given target to achieve sales objectives within certain time. When it comes to Sales promotion Company has certain share trading exposure schemes for its existing and loyal customers. The limit of exposure depends on company’s experience with customer.

Educating Customers

All education programs to users are done through company’s employee whenever he goes to client or when customers come to their branches, any of their franchisee. Else than that Service usage instruction are communicated to customers through online web portals.

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Majorganiz.com: an online venture promoted by Prabhudas Lilladher (PL), is supported by PL’s years of collective experience of the capital markets, powerful Fundamental & Technical research and reliable state of the art technology architecture.

It provides Online Trading in Equity, Derivatives & Mutual Funds through a web based platform. Portal provides extensive information on markets and relevant data which enables users to make quick, sound and informed decisions. Company offers various tools, like portfolio tracker, sector watch and my stock list. Besides we also provide stock & index quotes, online market commentaries, fundamental & technical details of most companies with varied research reports and much more, to help you take informed decisions and make the trading process quicker and efficient.

Pricing/Charges of Services

The service charges are divided according to 2 different Service Demat account plans: Power and Turbo respectively. In both plans Company charges advance brokerage that’s why among Cost based , Competition based and Value based Pricing method company adopted the Competition based pricing where Reliance Capital money was taken into consideration as one of the competitor which started the concept of Advance Brokerage.

Table 1 : Exe Application Charges (Rs)If Monthly Brokerage generated (Rs) is Monthly

Less than 100 750

Less than 1000 500

Less than 2000 250More than or = 2000 Free

Power Plan:

Common Features Power 6 Power 3 Power 1 Power +

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Account Opening charge 300Demat AMC P.A. (Rs.) As per scheme selected (Table 1)Exe App Charges Web applet based Application Default Application Access Odin/RTGSL/NOW (Only NSE )

Trading Platform (Cash and Derv) NSE NOW NSE NOW NSE NOW NSE NOW

Brokerage on delivery (Per purchasing or Selling)

0.25% 0.30% 0.35% 0.40%

Cash Intraday and Future Trades (Rs.) (Per purchasing or Selling)

0.25% 0.30% 0.35% 0.40%

Min Paise per scrip 2.5p 3p 4p 5pOption(Rs. Per Lot : Including Purchasing and selling)

Higher of 2.5% of the premium or Rs 75/-

Initial Margin Amount in Rs Optional 5000Validity Period 12 Months 6 Months LifetimeFree Call N Trade 20 CallsCharge for Call and Trade Rs. 5/- from 21st call

Adjustable Option Cost of Subscription (Rs. Adjustable) 6000 3000 1000 N/ANewsletter and SMS Call (Free) 2 Quarters 1 Quarters 1 Months Table 2

Newsletter & SMS ChargesPeriod Newsletter SMS Call Combo

Monthly 400 300 100 600Quarterly 1000 750 250 1500

Yearly 3600 2700 900 5400

Turbo Plan:

Common Features Turbo 120 Turbo 60 Turbo 30 Turbo 12

Account Opening charge Free

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Demat AMC P.A. (Rs.)Exe App Charges Default Application Access Odin/RTGSL/NOW (Only NSE )

Trading Platform (Cash and Derv) NSE NOW

Brokerage on delivery (Per purchasing or Selling)

0.10% 0.10% 0.15% 0.20%

Cash Intraday and Future Trades (Rs.) (Per purchasing or Selling)

0.00005 0.0001 0.00015 0.0002

Min Paise per scrip 0.5p 1p 1.5p 2pOption (Rs. Per Lot : Including Purchasing and selling)

20 30 40 50

Initial Margin Amount in Rs OptionalValidity Period 12 MonthsFree Call N Trade 30 CallsCharge for Call and Trade Rs. 5/- from 31st call

Non adjustable optionCost of Subscription (Non Adjustable) 300,00 15,000 75,00 3,000Newsletter and SMS Call (Free) Till Scheme period 2 Quarters 1 QuartersReduction in option brokerage per lot Rs. 4000 for every Rs. 5 reduction (Min Rs. 10 per lot)

Physical Evidence

The company branch offices create environment of competitive stock broking and benefits of using Majorgainz services by using print ads everywhere. Each and every employee is asked to

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formally dress with tie. Prospectuses and other application form have combination of green and purple colour.

Even the website of company has association with blue and purple color mostly. Use of market fluctuations graphics creates perception of technologically updated site in user/prospects’ mind.

Process

Through following representation of reason blueprinting error in service authentication and usage of core benefits can be identified. These errors include: treatment errors—human failures during contact with customers and tangible errors—failures in physical elements of service.

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Fig: Process of Service usage by Account holder and Service authentication of error free services

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Fig: Outline of overall process

People

Company has a team of dedicated and empowered professionals bound by a common quest to seek and to deliver the best investment opportunities to their clients. Here is a snapshot of people at Majorganiz.

Common Job Titles

Executive10%

Top SchoolsUniv. of Mumbai 14%Welingkar Inst. of Management 11%

Median Age 28 years

GenderMale 92%Female 8%

Job Design and duties:

Relation Manager and Relation Executive are considered front staff at MajorGainz which interacts with customer at the time of service processing. Relation manager and relation executives both work under supervision of one sales manager.

Relation Executive:

Field work Accomplish tasks in order to achieve organization’s sales objectives given by sales

manager Interact with customer to tell core and supplementary benefits at the time of purchasing

service Keeps on meeting existing and potential clients. Average Knowledge of Capital market is required with excellent Convincing/Selling skills

Relation manager:

Office work Accomplish task in order to keep service interrupted and enhanced Maintain relations with existing customer with his/her advisory services Supervise financial research team Excellent Knowledge of Capital market is required with excellent Communication skills

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Recruitment/Selection

Recruitment of Relation Manager is done by Branch manager with the help of HR personal(Can be recruited by Sales Manager in some cases)Branch head sits with HR personal to make sure that applicant has sufficient core knowledge of financial services and Capital market. Similarly it is role of HR personal to make sure that person meets required organizational core competency. As far as testing methods for selecting future employees are concerned only penal interview is chosen.

In case of Relation executive, the recruitment is done by Sales manager if Branch head is unavailable. For relation executive average Knowledge of Capital market with excellent Convincing/Selling skills is required, while for relation manager Excellent Knowledge of Capital market with excellent Communication skills is required.

For challenging positions Company tried to hire talent from top level institute. For an example in Mumbai Company hired students from University of Mumbai and Walingker Institute of Management but usually top summer internship are hired after completing their degree required considering their excellent performance during summer training period.

Training and Development:

For Relation executives Sales Manager conducts class room training on both specific, professional programs that help them remain well informed and knowledgeable about the company’s products in the market and this product orientation hardly takes 3 days to finish.

While for Relation manager, company understands the importance of training in a dynamic business environment. Our advisors go through both generic and specific, professional programs. There is a further focus on soft skills such as communication, managing long-term relationships skills, which are very relevant in a service-driven industry like Brokerage Industry.

A 10-day training schedule covers the mandatory Capital market knowledge and product training module. Revision session ensure that the candidates thoroughly understand the course contents and are well prepared for the licensing examination.

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Motivation /Awards/Evaluation

Different reward and incentives are given to Sales executives after meeting Demat account selling targets. Motivation in the form of reward is given to star sales force although if in some case Sales executive fails to meet minimum target within two months then he/she is asked to leave organization.

Although As far as development of front staff is concerned they are given promotion on the basis of their image and experience with company. For relation executive next promotion is due to post of Sales manager while Relation manager gets pay increase if job evaluation comes in favor of him/her.

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STP Analysis

Segmentation

Company chose the market segment which is:

Measurable: The size, purchasing power, and profiles of the segments can be measured. Certain segmentation variables are difficult to measure. And the population of any metro city of India is more than 10 million and according to the financial service survey very few people are the customers of financial service companies.

Accessible: The market segments can be effectively reached and served. Company makes sure that their distribution channels are capable enough to provide the service to the consumer by making sure that the availability of the product is certain.

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Substantial: If market is large or profitable enough to serve. A segment should be the largest possible homogenous group worth pursuing with a tailored marketing program. It would not pay like their product Unique, was for everyone and there was no restriction of anything in the usage.

The other segmentation strategies are as follows:

Geographic

Country India City Metro cities and semi urban Density Highly populated

Demographic

Income More than 3 Lakh (Annually)

Behavioral

Usage Rate Strong Loyalty Regular Readiness Aware informed Attitude Positive

Targeting

For targeting, a company has to evaluate various segments and then decide upon to target accordingly. While doing hat MajorGaniz has looked on to the overall attractiveness of the segment and the company’s objectives and resources. Targeting

Company is used to target customer who are very frequent in online trading the concept of Advance brokerage forces company to target only those who has financial potential that’s’ why Company targets mainly business class of the society and also presented it as a part of urban life style. Prsence of local share markets and awareness of capital market is the reason behind targeting metro and Semi urban cities which are supposed to be highly populous.

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Geographic

Country India City Delhi Density Highly populated Climate for every climate

Demographic

Age Above 25 Gender both Income For top earners of society Occupation Mainly Businessman Religion all Nationality all (within nation)

Positioning

Through its tele-marketing and cold calling process MajorGaniz tries to position itself as Ethical brokerage service provider although the concept of advance brokerage doesn’t make this company’s service ethical in comparison to others. Although few year back company had very nominal brokerage charges, much cheaper for big investors which was technically ethical in comparison to any other brokering house of that time but after then Company followed the advance brokerage benchmarking of Reliance money which is technically unethical in comparison to nominal brokerage charges taken by brokerage firm.

Till than company hasn’t updated it’s positioning through new advertisements which should have been communicated the benefits of more accurate advisory and technically it I positioned as more accurate advisory provider. The perpetual map can be drawn between advance brokerage charger such as Reliance Money, Religare and Sharekhan.

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Differentiation

The competitive advantage of Major Ganiz is that, It provides execellent advisory services which has 77-89 % accuracy with nominal brokerage charges depending on advance brokerage amount.

Not all present brands differences are meaningful or worth-while not every difference makes good differences are meaningful or worth-while not every difference make a good differentiator. Major gainz fulfill few of those criteria such as:

Important: The difference delivers a highly valued benefit to target buyer.

Superior: The difference is superior to other ways that customers might obtain the same benefit.

Communicable: The difference is communicable and visible to buyers.

Preemptive: Competitors cannot easily copy the difference.

Profitable: Newsletter and Advisory services provide real benefit to consumer.

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Data Analysis and Interpretation

The questionnaire was given to those who trade securities and it was quite interesting to find out that most of them were from 25-34. The reason behind can be the awareness of capital market among new generation while capital market has undergone certain reforms.

Similarly when we were finding out those who are interested in trading than we got very small segment of females who showed their interest in financial instrument investments only 12 % female came in our convince sample.

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It was also found out that those who have monthly income more than 20,0000 invest most over people who earn less than 15,000 and above that amount. The reason behind seem to be the associted risk in capital market where small investors fear to invest money because they are being scared of loosing money.

Financial Instruments people invest into

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Less than 15000 10%15000 and above 35%20000 and above 55%

Here we had possibility to find out those who invest into different financial instruments at the same time so rather than taking % of respondents on certain option we calculated no. of respondents for a particular option.

Interpretation: This shows that although the share market is on the rise yet, the most favored investment continues to be in the Mutual funds which were favored by females in the sample most. So, with a more transparent system, investment in the Stock Market can definitely be increased. The reason behind investing in mutual funds can be less risk and expected high return.

Trading type of trading you prefer

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Type No. of respondents

Shares 21Mutual funds

27

Bonds 9Others 6

Online trading 85%Offline trading 3%

Interpretation: With the increase in cyber education, the awareness towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

Reason behind preferring online trading

Here we had possibility to find out more than one reason behind preferring online trading over offline trading at the same time so rather than taking % of respondents on certain option we calculated no. of respondents for a particular option.

Interpretation : When we talk about factors behind preferring Online trading such as Privacy ,User Friendliness, Time saving , Convenience or asked all the above then majority agreed on above the all factors. Although at individual scale User friendliness is biggest factor which pushed Online trading option above than offline trading.

Factors that motivates to invest in securities

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Reason No. of respondents

Privacy 9User Friendly 12Time saving 6Convenience 3All the above 33

Interpretation: Desire of making handsome amount of money in less time motivates most people to invest in securities. Although New IPO’s offering in market also makes investor feel secured about the company he/she is investing in because initial public offering of company comes out as increment in company’s reputation.

Awareness regarding MajorGainz

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Reason No. of respondents

New IPO's 15Entry of FII's 6More return in less time

24

Others 12

Interpretation: Although Very few of target audience of Majorganiz is aware of Company’s existence, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness as well as brand awareness.

Holders of MajorGaniz services

Sample satisfied with the services provided by MajorGainz

Reason behind being satisfied

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Satisfied 66%Not Satisfied 33%Can't say

Interpretation: This pie-chart corroborate the fact that Strategic marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal

by generating customer satisfaction. Although whoever is using MajorGaizn is satisfied by the provided services and when it comes to satisfaction than good advisory services satisfies the

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Reasons No. of respondents

Time saving Easy to use Good advisory service 3Justified brokerage charges Good online interface 1Others

customer a lot on the other hand advance brokerage and high account opening charges can be identify reason behind customer’s dissatisfaction.

Reason behind not being satisfied

Reasons No. of respondents

Advance brokerage 1Lack of security and login problem Unawareness regarding company 1High account opening and other charges

1

Other

Brokerage Firm sample prefers for Online Trading

Interpretation: We can see that broking house the best preferred among the people is Share khan followed by Indiabulls and other respectively. The reason behind preference can be Mass marketing on Internet and smart pricing techniques to attract customers.

People choose respective company over other because of

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Name of firm No. of respondents

ICICI Direct 3Indiabulls 15Sharekhan 21Religare Securities 9India infoline 9Others 6

Interpretation : Sample believes that Brokerage charges, account opening charges and exposure drive customer’s preference that’s why he/she choose the brokerage firm which offers most economical products with much flexibility.

Frequency of trading

Interpretation: In spite of the huge returns that the share market promises, we see that there is still a dearth of active traders and investors. This is because of the non – transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government.

Percentage of earnings sample invests in share trading

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Name of firm No. of respondents

Bokerage 39reach report 18Dial up trade facaility 15Magazine 6Exposure 21Account opening charges

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Daily 15%Weekly 35%Monthly 35%Yearly 15%

Interpretation: This shows that people invest only up to 10% of their earnings in the stock market, again reiterating the volatile and non-transparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market.

Ranking of attributes for share trading

This survey questions asks about those attributes which should be proved by company in these certain orders here (1=Most Important, 5= Not Important at all)

Parameter Average rank Customer service 3.05Proper Guidance 2.2Regular updates 3.1Trustworthiness 2.6Brokerage charges 3.3

Interpretation: When it comes to the attributes an investor looking for in a brokerage company he wants Proper Guidance and Trustworthiness of the company so that he/she won’t get bother to change company again and again, while breakage charges are the least attribute investor looks for over enhanced customer service and regular updates over market.

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Parameter Derived Rank Customer service Third Proper Guidance FirstRegular updates FourthTrustworthiness Second Brokerage charges Fifth

Ranking share trading companies according to the quality of service they provide. (1=Excellent, 5= Very poor)

Here average rank is calculated the least numerical value of average rank is awarded as most preferred Trading Company. Where Indiabulls is most preferred over sharekhan , Kotak securities and then over ICICI Direct.

Brokerage firmAverage rank

ICICI Direct 3.45Indiabulls 1.7Sharekhan 2.2Kotek Securities 3Others 3.9

Key Issues

MajorGaniz is having many financial products right from Demat account to Advisory services and not all the people are familiar with every product it happens because of lack of Strategic promotional strategies.

On the other hand Indiabulls is most preferred over sharekhan , Kotak securities and then over ICICI Direct etc because company is not only communicating it’s benefits to customer through different channels but their pricing and products suits need of all customer from small investors to heavy investors which suggest company to redesign it’s some products and pricing as well considering the factors such as high advance brokerage, high account opening and annual maintenance charges which cause dissatisfaction among existing user of service. While it’s right time for Company to showcase it’s effective and most accurate Advisory service through effective Advertisements and Sales promotion which can bring no. of customers to MajorGaniz which are tired of using poor advisory services of Competitors.

Here the brokerage charges could be made at par with other competitors. So the company could make their approach more efficient. The executives could be trained very well for at least a week and in the beginning, before independently going to any customer the executives should go with their team leaders.

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Brokerage firmDerived rank

ICICI Direct FourthIndiabulls FirstSharekhan SecondKotek Securities ThirdOthers Fifth

And last but not the least the image MajorGainz could be made through effective advertisement in print & electronic media. For which we need to re design some suitable service marketing Strategies. From the next page project tries to come up with much practical approached based proposal on service marketing Strategies which promises to bring success and recognition to MajorGainz.

Proposal on marketing strategies of

MajorGainz

Proposed Product

Pricing

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Promotion-Education

People

&

Positioning Techniques

Product

Company should also come up with variant in Power plan: Power Classic where small investor can think of opening the D mat account without any hitching. This economical plan has to be given with paid advisory and newsletter/SMS/call services. Here the concept of advance brokerage can be maintained but with adjustable option. Lack of advisory and other supplementary services make this Variant of Power plan economical for company as well as small investors.

Core Features: Online Trading

Nature of product: Intangible

Bundle of Supplementary service: Newsletter/ SMS and Calls or Combo Pack (Paid), Respective advisory services (Derivatives Desk: Completely Paid), user access to account information anytime anywhere through www.plclients.com

Benefits Delivered to customers

All India network so convenience of getting service everywhere in metro cities and semi urban.

Economical investing Advisory charges are up to customer and usage Research excellence in supplementary services such as Advisory support (Paid) Institutional experience and transparency in advisory services

Pricing /Service charges

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In this plan brokerage on delivery (per purchasing or selling ), Cash Intraday and future trades (per purchasing and selling and Min Paisa per scrip charges are kept as par Power+ plan but paid advisory and makes it another variant of Power account series very advance brokerage is charged with very nominal account maintenance charges and opening charges. This Value Based Service Pricing would help company to get preferred over local player with minimum brokerage and account opening charges.

Common Features Power ClassicAccount Opening charge 300Demat AMC P.A. (Rs.) 100Exe App Charges Web applet based Application (Free)Default Application Access Odin/RTGSL/NOW (Only NSE )

Trading Platform (Cash and Derv) NSE NOW

Brokerage on delivery (Per purchasing or Selling)

0.40%

Cash Intraday and Future Trades (Rs.) (Per purchasing or Selling)

0.40%

Min Paise per scrip 5pOption(Rs. Per Lot : Including Purchasing and selling)

Higher of 2.5% of the premium or Rs 75/-

Initial Margin Amount in Rs OptionalValidity Period LifetimeFree Call N Trade 10 CallsCharge for Call and Trade Rs. 5/- from 11st call

Adjustable Option Cost of Subscription (Rs. Adjustable) 1000Newsletter and SMS Call (Free) Table 2

Newsletter & SMS ChargesPeriod Newsletter SMS Call Combo

Monthly 400 300 100 600Quarterly 1000 750 250 1500

Yearly 3600 2700 900 5400

Promotion and Education

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Company can spread sensation through Advertisements such as “Most effective investment guide is Coming your way” in Print and Outdoor before unveiling promotion schemes of services. Here company has to make sure that these print ads are published in Business newspapers and magazines and as far as billboards are concerned it has to be areas where all Stock broker house offices can be found.

Advertisement:

Here Mass marketing of MajorGainz products is not going to help because very few people of metro cities are involved in Stock market investing. At the time of selecting TV and Newspaper for the advertisement, it is essential to make sure that these print and television ads are coming through business channels and print media such as CNBC Awaz, ET Times Now , Outlook Money< Economic Times etc.

The one of the basic innovative idea is related to Turbo and Power product should be the “advertising unlimited” especially at launching ad campaign level through selective medias mentioned above. Through internet advertising of Company products can be done through financial portals such as finacialexpress.com.

Advertising campaign for MajorGainz should also be unique where advantages of supplementary services such as best Advisory and Newsletter would be communicated to potential customer through this campaign. By this MajorGainz can spread the message easily to all cities which are not targeted by others.

Purple and Blue color again can be used as base color in Print and outdoor ads as MajorGainz uses it nationally. A catchy tag line such as Partnership of trust will be used for television and other advertisement. Youth and Business man/woman can be used in Advertisements to attract targeted youth or business class.

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Fig: Proposed Print Ad campaign for MajorGainz

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Sales Promotion: Investment Exposure and Account maintenance charges for loyal customers can be reduced. Brokerage charges can be reduced for those who have using the service for the long time. The reduction in charges would depend on customer’s degree of loyalty.

Public Relations: In order to build healthy relations with the consumers, the company should establish a consumer department to manage the complaints of the end-users. A legal department will be also dealing with the legal issues and media war. If any news is published in a newspaper that harms the product image, a persuasive message would be published in that newspaper to counter the rumor.

Sponsoring Events: MajorGainz can go for sponsoring events in order to heighten the company and brand image. Mostly the company goes for financing such kind of events in which its product has got some room to build likeness. Sponsorships of Capital Market/Share bazaar games at business school or University can also be considered as a good option.

Education:

While interacting with the investors it is found that most of the customers are unaware about the Share market investing. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market.

In order to make potential consumers of financial Services aware about presence of MajorGainz, Company can come up with article in different capital market magazine where Does and Don’t tips of investing can be published via advisory and equity research team of MajorGaniz. Advisory ads should be published unless until Customer is educated to core benefits of using MajorGainz while availing flawless advisory services of company.

Awareness can be spread by creating Pages on social networking sites such as Facebook and Twitter where company can have option to share posts by customer as feedbacks.

People

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After sales services, follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls.

Company should keep on providing periodic training for updating the product knowledge of relation executives and managers as well

Secondly the branch managers at all the branches are very knowledgeable with a lot of experience in the financial markets so under their leadership some challenging tasks should be given to front staff rather than working only under sales managers all time.

The entire workforce consists of mostly youngsters, which means they can be encouraged and motivated to do good work because they have a long way to go and most of them are eager to climb the ladder.

So in order to make the best the only thing required is to recruit more field staff that should be trained in a proper way to get better results.

Positioning

Through different advertisements and public relation activities, MajorGainz should make efforts to position its brokerage services as “Best Investment Guide “not as a ethical broker because the concept of advance brokerage doesn’t make this company’s service ethical in comparison to others(through word of mouth and . Although few year back company had very nominal brokerage charges, much cheaper for big investors which was technically ethical in comparison to any other brokering house of that time but after then Company followed the advance brokerage benchmarking of Reliance money which is technically unethical in comparison to nominal brokerage charges taken by brokerage firm.

Till than company hasn’t updated it’s positioning through new advertisements which should have been communicated the benefits of more accurate advisory. So it is the right time for Company to re position its brokerage services through advertisements which would enforce investors to do the same through word of mouth.

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Conclusion

Since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. The Stock Exchanges have become a prominent player in this economic reform and has now become a key driver of India’s Economy. With this, Indian stock broking firms are on an expansion drive.

Online share trading is gaining its popularity. Though it still has to go a long way but it has established its foothold in the metropolitan cities like Delhi, Mumbai etc. The dematerializing of shares coupled with the huge growth of internet has been the fuel for the online trading which is now a considerable part of the total trading.

When we talk about online share trading some companies such as Sharekhan and Indiabulls come in mind because these companies positioned themselves as better services provider than the other stockbrokers because of their timely research and personalized advice on what stocks to buy and sell.

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On the other hand despite being very famous in west India, North Indian people are not much aware of Prabhudas Lilladher because of lack of strategic marketing strategies while North India s going to be biggest market in India of Share trading . The Company is mistakenly adopting the pricing strategies of matured product life stage, not considering that it has to consider new entrant marketing strategies.

It can be said that online share trading is here to stay and will only grow to bigger proportions and will penetrate deeper into the economy. So online trading would become the order of the day, taking over the traditional norms in the years to come so it’s the right time for Prabhudas Lilladher Pvt. Lt. (MajorGainz) to promote its competitive advantage while motivating its front staff so that employee turnover can be reduced with much improved service quality and employee productivity.

Limitations of Project

Limited time: Due to limitation of time a sample size of only 60 respondents were chosen.

Limited Area: Due to small sample size and limited area the data analysis of all north Indian states trading account holders can be manipulated.

Unwillingness of respondent: Respondents unwilled to respond to questions which they consider to be inappropriate for the given context.

Legitimate Purpose: Explaining why the data are needed made the request for the information seemed legitimate and increased the respondents' willingness to answer.

Sensitive Information: Respondents unwilled to disclose, at least accurately, sensitive information because this might cause embarrassment or threaten the respondent's prestige or self-image.

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Response error: Respondents might have given wrong answers in hurry. People are reluctant towards the survey and take it as a waste of time.

Non response: Within sample few people denied to respond and few respondents filled the incomplete information

Other Limitations:

Some of the respondents may be biased in giving responses. Complete data was not available due to company privacy and secrecy

List of Figures and Tables

Fig. no. TitlePage no.

1 Porter's five force model analysis 102 Company overview of Prabhudas Lilladher Pvt. Ltd.(MajorGaiz) 143 Network of MajorGainz 154 management and Sales organization structure of Company 15-165 Company overview of Indiabulls 186 Company overview of Indiainfoline 197 Company overview of Sharekhan and Karvy 209 Company overview of Religare Securities 21

10 Competitive Analysis on the basis of product, Charges and Service Offered

21-22

11 Comparison between Advance brokerage charging firms 2412 Outlook of plclient.com 2613 Outlook of MajorGainz newsletter 2714 Outlook of MajorGainz online portal 2815 External communication strategies at MajorGainz 2916 Pricing or service charges for using MajorGainz services 20-32

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17 Physical evidence of web portal 3418 Employee profile at Prabhudas lilladher pvt. Ltd. 3520 Development of existing employees 3721 Diffrenciation of MajorGainz services 4122 Age group and gender selected for data collection 4223 Monthly income and financial instrument people invest into 4324 Trading type people prefer 4425 Reason behind preferring online trading 4526 Factors motivate you to invest in securities 4527 Awareness regarding MajorGaniz and existing customers 4628 Reason behind being satisfied or non satisfied 47-4829 Brokerage Firm sample prefers for Online Trading 4830 Frequency of trading 4931 Percentage of earnings to invests in share trading 5032 Ranking of attributes for share trading 50

33 Ranking share trading companies according to the quality of service they provide

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34 Proposed pricing for MajorGainz 5434 Proposed Ad campaign for MajorGainz 55-56

References:

Text Book:

Marketing Management- Philip Kotler, Kevin Lane keller , Abraham Koshi , Mithleshwar Jha, Pearson Education, Thirteenth edition

Marketing Research - An applied orientation by Naresh .K. Malhotra, Pearson Education, Fifth edition

Strategic Marketing- Douglas West, John Ford and Essam Ibrahim

Service Marketing- Christopher Lovelock, Jochen Wirtz, Jayanta Chatterjee

Official Website:

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Prabhudas Liiladher : http://www.plindia.com (Accessed on 14 May, 2010)

MajorGainz: http://www.majorgainz.com (Accessed on 20 May, 2010)

Other Web portals:

Hindustan Times: www.hindustantimes.com -Accessed on 11 June, 2010 at 6.09 p.m.

National Stock Exchange of India: www.nseindia.com - Accessed on 15 June, 2010 at 7.10 p.m.

Yahoo India Finance: http://finance.yahoo.com/q/hp?s=yhoo – Accessed on 1st June 2010 at 12.15 a.m.

Money Control India: http://www.moneycontrol.com/company-article -Accessed on 25th June, 2010 at 8.29 p.m.

The Economic times: http://economictimes.indiatimes.com/markets/ipos/articleshow -Accessed on 28th May, 2010 at 7.48 p.m.

Annexure

Questionnaire

Sir/ Ma’am

This Marketing Research Survey for Summer Internship Project is being conducted as part of our PGP programme. We will be grateful if you could spare few minutes to participate in it. The Information provided by you will be kept confidential and be used for academic purpose only.

SECTION 1

1. In which of these Financial Instruments do you invest into?

Shares Mutual fund Bonds Others

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2. Which type of trading you prefer?

Online trading Offline trading

3. If you prefer Online Trading then the reasons for it? (Please tick appropriate)

Privacy User Friendly Time saving Convenience All the above

4. What factors motivates you to invest in securities?

New IPO’s Entry of FII’s More return in less time Others

5. Have you ever heard of MajorGainz?

Yes No

6. Are you a user of MajorGainz Product services? (If yes then go to Question no. 13 otherwise please continue) Yes No

7. Which Brokerage Firm do you prefer for Online Trading?

ICICI Direct Indiabulls Sharekhan Religare Securities Indiainfoline

If other Please Specify: __________________

8. What differentiates your Share Trading Company from others?

Brokerage Research Report Dial up trade facility Magazine Exposure Account opening charges others

9. How often do you trade?

Daily Weekly Monthly Yearly

10. What percentage of your earnings do you invest in share trading?

Up to 10% Up to 25% Up to 50% Above 50%

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11. According to your preference rank the attributes of a share trading company.(1=Most Important, 5= Not Important at all)

1. Customer Service ____

2. Proper Guidance ____

3. Regular Updates ____

4. Trustworthiness____

5. Brokerage Charges_____

12. Rank these share trading companies according to the quality of service they provide. (1=Excellent, 5= Very poor)

Sharekhan _______ ICICI Direct _______ India Bulls _______ Kotak Securities _______ others (specify ) _______

13. Are you satisfied with the services provided by MajorGainz?

Yes satisfied Not satisfied can’t say

I. If yes, please mark the reasons.

Time saving Easy to use Good advisory services Justified brokerage charges Good online interface other ______________________

II. If no, please mark the reasons.

High Account opening and other charges Advance brokerage

Lack of security and Login problem Unawareness regarding company Other_____________________

14. What additional features do you wish to have in Online Share Trading?

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__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

SECTION 2: GENERAL INFORMATION

Age group: 15-24 25-34 35-44 45-54 more than 54

Gender: Male Female

Profession: Business Service if other please Specify: __________________

Monthly Income: (Rs.)

Less than 15000 15000 and above 20000 and above

(24 May, 2010) Thank You

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