Edelweiss Susnat

8/9/2019 Edelweiss Susnat

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SALES AND DISTRIBUTION STRATEGIES OF

EDELWEISS BROKING LTD.

Presented by

Susnat Pradhan

PGPIB-03

011103017


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Welcome To Edelweiss

The answers to most questions lurk in the shadows;

all but invisible to the untrained eye. What is needed

is Light!And Edelweiss is a powerhouse of Financial

Innovation illuminating both the

solutions and the perils!

As one of the fastest growing investment bankingand financial services company in India, Edelweiss

exists to Innovate!


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Started its journey in Mumbai , in the year 1995, by two IIMgraduates, Mr. Rajesh Shah andMr. Venkat Ramaswami .

The Logo: is based on a rare flower found in Switzerland; Agraphic flower that represents Ideas; Around it the protectivearms of the letter E.

Edelweiss believes ideas create Wealth, but values protect it. It is the practice of this core thought that has led to Edelweiss

becoming the one of the leading financial services company inIndia.

Ideas create , values protect

The slogan and depict the mission statement of Edelweiss group


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Wholesale Financing

Treasury

Asset Management Wealth Management

Insurance Broking

Private Client Broking

Institutional Equities

Investment Banking


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Mutual fund

Insurance

Arbitrage Structured product

Margin funding

Demat and trading account

IPO

Commodity related instruments


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Collection of data

Cold calling

References

Calling to those no and make appointment Visit to the customer and close the deal.

Filling the form and collect the data and submit to the office.

Giving a demo of the trading website and online tradingprocess to the customer .

During the process finding out the actual need of thecustomer, their satisfaction etc. and bring it into the focus ofthe company.


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STRENGTHS

OPPORTUNITIES

WEAKNESS

THREATS


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Strategic planning for sales

Program implementation

Evaluation & Control:Sales force Performance


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Create

direct

selling

process

Identify the

customer

Make

appointment

with customer

Give suitable

demo &pitch

Ensure

knowledge

about product

Ensure

increase in

crust value

After sales

serviceClose deal


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Seek the attention of the prospect client

Create desire in customers mind to buy the product

Induce the client to buy the product

ATTENTION

INTEREST

DESIRE

ACTION

Maintain the attention by creating interest


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Talking about the skills that a salesperson should posses, they are as

follows:


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Sales target- The sales team is given a fixed target which itneeds to achieve within a month.

Motivational Rewards- The team who performs the bestis given some rewards. This is to motivate others to

perform well and at the same time appreciate the hardwork done by the winning team.

Continuous Evaluation- the sales team has to appearin the evaluation conducted by the company to test theirmarket and product knowledge. This is done to ensure that

the company has the best sales force. Training Program- Team leaders are given training

regarding the product and market so that they can handlecustomer queries.


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A. Inbound Team

B. Sub Broker/ Remissor

C. Corporate AccountsD. Free Accounts


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Consumer profiling and investment need

analysis

25%

65%

10%

AGGRESSIVE CUSTOMER

Bond

Stock

Short term


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30%

50%

20%

MODERATE CUSTOMER

Bonds

Stock

Short term

50%

25%

25%

CONSERVATIVE CUSTOMERS

Bonds

Stocks

Short term

Result: Whether a person is aggressive, moderate or conservative the

determining factor is the investment he makes in the different sectors.If he is investing more in the stock market that means he is willing to

take risks and thus is an aggressive customer. A moderate customer

invests partially in stocks and partially in bonds and short term.

While a conservative person invests very less in the stock market.


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35%

14%11%4%

36%

WILING TO INCUR LOSS ON INVESTMET OF Rs.100

Rs. 1-5

Rs. 5-10

Rs. 10-20Above Rs. 20

Zero

Result: While classifying people under the three

categories, it was seen that most of the customers were

conservative i.e. they were not willing to take any risk when it

comes to investment. Only 4% people were aggressive and

ready to take risks to maximize their return.


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6%

8%

13%

7%

16%

17%

13%

Edelweiss ICICI Motilal Oswal HDFC Indiabulls Sharekhan Others


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Q. Through which of the channels do you usually buy a

financial product?

5%

75%

20%

Fig. 1

Internet

Broker

Directly from the

company

Result: This graph shows that broking business is a

profitable one as it attracts the large volume of potential

customers .


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Q. What is your preferable tool of investment?

36

7 5

25

5

22

0

10

20

30

40

Bank Deposit Real Estate Derevative

Instrument

Mutual Fund Gold &

Bullion

Equity Share

All Values in % Term

Result: When it comes to investing ones income 36% of the people

prefer to be on the safer side and avoid risk by investing in the bank

deposits.The next option is mutual funds as they are comparatively

risk free. Equity shares are the next best option .According to the

respondents. So it can be said that most of the people prefer risk-free

return. While a 22% of graph shows that equity shares are considered

as a good option by the investors due to their high return.


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Q. Are you aware of all the products offered by

Edelweiss?

0

20

40

60

0

Yes No

36

64

All values are in % term

Result: 64% of the people are not aware of the products offeredby the Edelweiss. In this category few of the respondents knew

about the equity share trading but were not aware of all the

products, while a large chunk of respondents had never heard of

Edelweiss.


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Q. Have you used any Edelweiss financial product?

21.56

7 .44

0

20

40

60

0

100

Yes No

All values are in % term

Result: In response to the question 78.44% of the

respondents said that they are not using any Edelweiss

product at present, so it gives a clear picture that there

is a huge untapped segment among which the product

needs to be pitched.


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Q. Which Edelweiss product are you using now?

45%

50%

5%

Fig.

Mutual fund

Demat

Other( structured

product)

Result: From the response it can be seen that Demat (equity

shares) is the highest selling product of Edelweiss followed

by mutual fund. Of the 21.56% of people using Edelweiss

products 50% prefer equity shares.


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Q. Best company according to the respondents

30%

21.44%

12%

4%7.56% 10% 6% 5% 4%

0%5%

10%15%20%25%30%35%

Fig.

Result: 30% of the respondents ranked ICICI Direct as the number oneshare trading company.This is mainly because of its good Brand Image

and linked bank account. Sharekhan is preferred for its customer friendly

approach and trading terminal. Still Edelweiss stands in the competition

and is preferred mainly because of its research facility.The company

needs to give attention to the Brand image building.


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Q. Factors affecting the choice of a company

2

3.56. 9

120

23

0

5

10

15

20

2530

Brand

image

Innovation Services Proximity

with

residance

Dealer

support

Advanced

R&D

Brokarage

All figuers in % term

Result: When it comes to the choice of the company the factor that

affects the decision to the largest extent is the Brand Image i.e. thereputation of the company.The best example is ICICI. Brokerage is the

second most important factor. Edelweiss has good research so it has the

capability of attracting customers. Of the above factors all are present

in Edelweiss except a good Brand Image in Kolkata, which it needs to

build.


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Q. Possible sources searched for financial product

information.

19%

21%

11%17%

32%

Fig.

Television/Radio

Internet

Newspaper/Magazine

Word of mouth

Friends

Result: Most of the respondents 32% trust their friends

advice when it comes to financial product information

especially in stock market.They trust on their experience with

the company and act accordingly.


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43%

38%

11%8%

Association with the company6 months 1 year 2 years more than 2 yers

Result: Most of the customers in Kolkata are newly

acquired as the company is new.


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11

49

32

8

Extremely satisfied Satisfied Neutral dissatisfied

Result: 49% of the customers are satisfied and 8%dissatisfied.The company needs to work on these

customers and minimize their dissatisfaction.


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34%

31%

22%

13%

Sales

Reduction in brokerage Improved service quality

Customer friendly norms More tips

Result: Most of the customers want the brokerage

to be reduced and services to be improved.


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11%7%

26%56%

Liquidity crisis Alternate brokerage firm

Lost faith in capital market Temporary breaks

Result: Because of the present turmoil in the stock market most of

the people have taken temporary breaks and are not trading, While

7% of the people have found alternate broking houses.


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43%

12%10%

32%

3%

Low brokerage Proximity to residence Trained people in desk

Good system support Good research

Result: Low brokerage is what attracts most of the customers.

Besides Edelweiss needs to improve its quality of service.


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73%

14%

5% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

6 month-1 year 2 years 2 years and more Never

Fig.

Result: 8% of the customers say that they will never

return back.


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From the analysis of the questionnaires and above

findings it can be concluded that Edelweiss approach

to sales and distribution strategies is right and its

innovation in the distribution channel by tie-up withretail shops will help it a lot.

When it comes to competitors ICICI is its biggest

competitor and the company lags behind when it

comes to Brand Image.


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Make the complaint process and complaintredressal process easy so that there is a scope ofimprovement.

There should be more number of brokers and sub-

brokers so that they can tap a large chunk of thecustomers.

The company should work on building Brandimage in Kolkata as it plays a major role when it

comes to taking decision about a company. The company needs to go for aggressive

advertisement campaign.


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Special training about company products tosales team so that they create awareness

among the people.

Bring student plan to attract the studentespecially from Engineering Medical and

MBA field to capture customer before others.


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REGIONAL HEAD

AREA SALES MANAGER

TEAM LEADERS

FIXED COST AGENT


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Best research and strategies available to all

retail customers (Edelstar ) .

Local dealer assigned to each customer. Theyhave fixed salary and no incentives.

Highly user friendly trading website+ 24*7

toll free no. + Mobile trading website.

No pool account.


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Lack of brand positioning.

Lack of branches.

New in retail segment.


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Broking business is profitable and attracts

large volume of potential customers.

High potential in rural market.


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Highly competitive market.

Intensive local brokers.

High volatility in the market.

Edelweiss Susnat

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