hr project

STUDY OF BEST PRACTICES IN THE BFSI SECTOR FOR MARKETING, BRANDING

& COMMUNICATIONS PLAN FOR ONLINE TRADING PRODUCT

Project by: Ms. Naziya [email protected]

Balaji Institute of International Business (BIIB), PuneSurvey No. 55/2-7, Tathawade, Opp. Wakad Police Station, Off Pune-Mumbai Highway,

Pune - 411 033. (T): +91 - (020) - 6674 1081/ 83/ 84/ 85

Date: 22nd July, 2008Abstract

mailto:[email protected]

Way2Wealth Securities Pvt Ltd is in the process of launching an Online Stock Trading Product, for which it is undertaking this research. This project primarily focuses on the pre-launch activities and product development recommendations for the online trading product of Way2Wealth Securities Pvt. Ltd.

The research aimed to find out the existing market, analysing the competitive environment, determining the target audience, suggesting product features, and B2B & B2C communication formulations.

The four Ps namely, Price, Place, People & Promotion were studied in terms of Price – the brokerage & other charges levied on the customer in online trading; Place – India is taken as the market; People – the mass affluent class; Promotion – includes the branding & communication strategy practically worked on.

The research questions were answered by studying the macro variables, interviewing the market players and observation of existing international & within the country practices. The analysis of the project in a SWOT pattern for all the participants in the form of Porter’s 5 forces of competition viz, new entrants, rivalry among existing players, bargaining power of buyers & sellers, and threat of substitutes.

The conclusion is in the form of recommendation. The conclusion of the project was that Way2Wealth should launch the product, offering more than just the basic features. The add-ons can be in the form of the existing individual services bundled to serve ancillary needs of the target audience.

Acknowledgements

STUDY OF BEST PRACTICES IN BFSI SECTOR FOR MARKETING, BRANDING & COMMUNICATIONS PLAN FOR ONLINE TRADING PRODUCTS

FOR WAY2WEALTH SECURITIES PVT LTD

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To begin with I would like to thank

1. Mr. Hutaib Bandukwala – my mentor and guide. The first thing as a mentor which he took care of, was getting me comfortable with my environment. He made sure I enjoyed this project, and gained the most out of the entire process.

The learning gained was more implicit than explicit. Humble by nature, he is a fantastic listener, and never closed his ears to the ideas, however irrational or impractical they may be. He encouraged me to move out of my box and experiment with the external environment. He exposed me to as many doors of experiences & avenues as he could.

He was patient with my work & helped me bring out the best in me. I was made an active participant to all other activities taking place in the department, which made my learning more than just on online trading. He made it a point to take a feedback of my day and set me a challenging variety of targets. Should I go in dips, he also was there to bring me out of it and set me on my track.

He allowed and promoted my freedom of speech & thought. With the amount of activities I have undertaken under him & the exposure received far more than I had anticipated. If there is one thing which I wish to have learnt and take back with me is his humility, patience & sense of humour!

2. The Top Management of Way2Wealth, namely,

a. Mr. Shashibhushan – CEOb. Mr. Sunil Ramrakhiani – COOc. Mr. Gentil Augustine – Head Human Resource

Despite their busy schedule, they readily provided me their time, opinions and experiences which helped me not only understand the intricacies of



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business but also Way2Wealth better. The interaction itself was a tacit learning about the corporate life.

3. Mr Suresh Chauhan – A Way2Wealth branch manager, who on the request of his head Ms. Mini Yadav, readily helped me grapple the intricacies involved in investing.

4. The Staff of Way2Wealth, Nariman Point Branch – my acknowledgment would be incomplete without thanking all my colleagues who add life to the branch Nariman Point Branch of Way2Wealth (earlier the corporate office now the regional office). All my colleagues, with whom I shared space, made Way2Wealth a wonderful experience. I was provided with all the resources and opportunities of interaction as available to any other employee of the same.

Some of the important lessons, which I am taking back from Way2Wealth is not something I can express in words.

“You all made my way into Way2Wealth and first exposure to the corporate world a very memorable one. Thank You Everyone!’



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Overview of the Project

The following activities/ recommendations were undertaken during the project:a. International Industry Analysis:

i. Study on Best Practices followed by International players offering Online Trading

ii. Study on Indian players providing online trading in international markets

b. Macro Industry Analysis: i. Analysis of stock brokers in India and the products & services offered by

them ii. Benchmarking of online trading products offered by brokers in Indiaiii. Provided recommendation on 'way2wealth' product features, based on the

above analysis

c. Research Undertaken:i. In depth Competitor, product Analysis, by undertaking visits to competitor's

branchesii. Undertook Client Interface on experience with trading online iii. Interviewed the In-house Management to understand Way2Wealth in depth

viz. key strengths of the organization, product positioning etc

d. Pre-launch activities for Way2Wealth Online Trading Product:i. Advertising Planning

1. Selection of web partners – understanding the variables in advertising planning

2. Advertising Budget Planning/ Recommendation based on proposals offered by the agencies.

3. Product Name Recommendation 4. Recommendation for Content of Brochure & Flier 5. Suggestions for Web Page Content Management



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1) Suggested layout for webpage & features on the web page2) Recommended content for like Online Trading School, FAQs, Glossary

ii. Worked on PowerPoint Presentation for the Online Trading Productiii. Explored options – Mock Online Stock Trading Games

e. Post Account Opening for Way2Wealth Online Trading Product: i. Worked on content for Welcome Letter ii. Working on Customer Service guidelinesiii. Gave recommendations for Script for Tele-callers



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Executive Summary

The project broadly deals with the pre-launch activities of the soon-to-be-launched Online Trading Product of Way2Wealth Securities Pvt Ltd. The project began with the briefing session by my mentor Mr. Bandukwala on what exactly the project was about. I was given time to first learning the basics before delving deep into the topic. I would discuss my lessons and doubts at the end of the day with my mentor. Accordingly, I built up my next reading and study for the project. This included discussions with friends who were already dealing in the market.

To ascertain the practical application, grapple better the material read of the same, I finally got down in the real market scenario. With this began my methodology aspect, wherein I interviewed and conversed with the branch members/ customer care executives of the various competing market players and then accordingly varied my information acquiring techniques. The first day was very encouraging, where most of my technical learning took place. I entered the competitors’ office, as a student, who has just finished her graduation, and is looking at investing as an option. We are a bunch of friends and are together planning to invest with one agency by pouring our resources in one basket. I made it clear I do not know much about it. Even if my queries were genuine, disclosing that I am pursuing MBA would have put me in a disadvantageous position.

The question parameters were based on one of the previous similar benchmarking activity undertaken. Questions were added by my mentor, which I was expected to look out for. With each enriching discussion I had with the various relationship managers, not only did it add knowledge about the variety of products but also the parameters to better define by benchmarking activity (enclosed in annex).



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The questions were memorised by the end of the second day. Yet should I have missed out any information, I called up at the call centres or even the managers and took the necessary details.

There were instances, where I was disappointed with the kind of interactions I had with some relationship managers. On an average I spent about 45 mins to an hour with each of the branch visited. I made it a point to go to the branches or the main offices so that I could get a real-time feel of the set-up in a financial organization & the competitors’ environment. Also thanks to these trips (at a few places) I was shown the real-time working of the software used by them. Another major insight was how much a relationship manager knew about the product. In most of the cases it was disheartening, as their knowledge on the same was very little. This was more so in the case of customer care centres. The HDFC customer care executives were very good, and had the least waiting time when answering my queries.

One incident at Religare was equally striking, as while I was conversing with a relationship manager at their branch, there was a complaint regarding the paperwork. Most of the people refrained from participation. The customer was dealt with his executive. When I asked the manager briefing me on the same, he quietly abstained from the entire process.

Observation: Even though the offices have been well-built and well-equipped, the stress is on dealing with a client at his own set-up than our own offices. Reasons could be many, like refraining exposure to other clients, or client exposure to in-house problems etc.

After having ventured from Navi Mumbai to Malad to Fort, I felt fit enough to take the information about the rest of the players on phone. Hence, my earlier part of the day was spent in either looking up at the competitors’ web page or understanding the in-house functioning of Way2Wealth, while post 3.30pm was on the phone guised as a customer with the other players. Even while on phone, my average time spent was 30 – 45 mins, when interacting on the same. Thus, I managed to gain information on maximum 3 or 4 players each day.



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There was an instance where I called up at Networthstock and was asked to call at a variety of numbers; each one was asking me to call the other person. It reflected their inability to deal with a new client or that they were too full with the same. It certainly leaves a negative impression on a prospective client.

I finished the bench-marking activity and submitted the same within the first 20 days of my project.

Next I was moved to the marketing, branding and communication aspects of the project. Here I was exposed to activities like advertising, product feature recommendation, brochure, flier, PPT.

One of my suggestions in my early stages was the use of credit card for trading transactions. The idea was pursued, but on verification by my mentor, it was not found feasible due to some technicalities involved with credit cards.

The other avenue which I was able to explore was that of Mock Trading Games. For the same, I got in touch with various software developers. The idea was followed for a week but later had to be scraped as the costs involved were too high in terms of both money and development time.

It was during this time that I even got in touch with mobile game developing company. It was not pursued further. We were looking only at purchasing an of-the-shelf game than otherwise. At the end of a week the whole idea was scrapped as we were unable to find the right source for the same.

For the flier and brochure, I worked for about two weeks simultaneously with the other activities. This again was scrapped and an advertising agency was being considered for the same.

For online advertising I got in touch with Rediff, Chittorgarh, MSN & Google. A comparison was made and sent to the management.



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My other activities included the web page content, for which I made an online school including the basics on investing, understanding the equities, derivatives & glossary. An entire Knowledge Centre was made as a recommendation and submitted.

To enhance the quality of the Knowledge Centre, I was provided assistance by the internal Way2Wealth staff, who helped me understand the basics of investing along with the tools available to do the same viz insurance, mutual funds etc (only the basics).

Apart from recommending product name & product feature recommendation, I also submitted a PPT (suggestion) on the online trading product.

Towards the end, my other set of activities dealt with post account opening, viz Welcome Letter & Customer Service Guidelines & Tele Callers Script.

To add a final touch to my entire understanding on the industry and the product, once I was well acquainted with the product, I also had a tête-à-tête with the Top Management, who was very co-operative & generous with their ideas & the time they allowed me for the interaction.

When I started my project, Nariman Point Office was the Corporate Office, which in my presence was moved to the Chandivali Estate (Andheri); Nariman Point Branch now a Regional Office. Even though my mentor was a part of the Corporate executives, since his functioning was from the Nariman Point Branch, I too worked from the same place.

The interactions helped me understand not only the view of the organization from the bottom level & middle level but also the top level.

Also, there was constant guidance by my mentor, who made sure I was set back on track should I deviate from the same.



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The overall value of learning increased as I was exposed to lot of action and activity apart from the organizational behavioural study of a restructuring organization.

The chances of finding loop-holes in a dynamic organization are far little than in a static organization. Also my tenure with the organization was too short for the same. Yet on an overall it was an enriching experience.

TABLE OF CONTENTSPAGE NUMBER

1. 1.1 Introduction 141.2 Hypothesis 181.3 Purpose – Research Objectives 191.4 Importance of Study 201.5 Problem Definition 201.6 Limitations 20

2. 2.1 Methodology 212.2 Setting 212.3 Participants 232.4 Procedure 24

3. 3.1 Results 313.2 Competitive Analysis 333.2.1 Internal Analysis 33

3.2.1.A. – WAY2WEALTH 343.2.2 External Analysis 47

3.2.2.A. – INTERNATIONAL MARKET 48i. Charles Schwab 49ii. E*Trade 51



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3.2.2.B. – INDIAN/ LOCAL MARKET PLAYERS 53i. Angel Broking 54ii. Asit C Mehta 56iii. Bonanza Online 57iv. Dawnayday AV Securities 58v. Geojit 59vi. HDFC Securities 60vii. ICICI Direct 61viii. IDBI Paisa Builder 62ix. IL & FS 63x. Indiabulls 64xi. IndiaInfoline 65

TABLE OF CONTENTS (CONTD…) PAGE NUMBER

xii. Kotak Securities 66xiii. Major Gainz 67xiv. Motilal Oswal 68 xv. Networthstock 69xvi. Reliance Money 70xvii. Religare Securities 71xviii. Sharekhan 72xix. UTI 73

3.2.2.C. – CROSS SECTIONAL ANALYSIS 74i. CNBC – TV18 75

3.2.3 Marketing, Branding & Communication Activities

77

3.2.3.A PRE-LAUNCH ACTIVITIES 78i. Advertising planning 78

MSN 80Google 81Rediff 82Money Control 83Chittorgarh 84Yahoo 85

ii. Brochure & Flier 86



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iii. Power Point Presentation 873.2.3.B WEB PAGE 88

i. Features on Web Page 88ii. Web Content Management 89

3.2.3.C OTHER OPTIONS 90i. Mock Trading Games 90

3.2.3.D POST ACCOUNT OPENING 92i. Welcome Letter 92ii. Customer Service Guidelines &

Script for Tele-callers92

TABLE OF CONTENTS (CONTD…) PAGE NUMBER

4. 4.1 Conclusions 934.2 External Industry Scenario 94 4.3 Internal Organizational Factors 96 4.4 Product Features 98

4.5 Product Related Recommendations 1004.6 Web Page Recommendation 1024.7 Customer Care Factors 1044.8 Branding, Communication & Marketing 105

5. References 109

6. Appendices 112



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1.1 INTRODUCTION

India followed a socialist-inspired approach for most of its independent history, with strict government control over private sector participation, foreign trade, and foreign direct investment. However, since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. Also, the privatisation of publicly owned industries and the opening up of certain sectors to private and foreign interests has proceeded slowly amid political debate.

In the last few years, there has been a significant development in the stock markets indicators such as market capitalization and trading value in the region following liberalization measure. There is clear evidence that post liberalization, the markets in India is affected by the major as well as by the regional markets in the long run. In the short run, however, the markets appear to be independent of one another.” (Fazal Husain and Abdul Qayyum)i

Amidst such times, development of a product in anticipation of the any upcoming needs is inevitable. Product Development can be defined as “the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product1 . Elan describes it as, the stages that occur from the time a business generates a new business idea to the launch of that particular product in the market2

Product Development is a creation of products with new or different characteristics that offer new or additional benefits to the customer. It may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.3

1 http://www.entrepreneur.com/encyclopedia/term/82414.html 2 www.business2000.ie/html/resources/glossary/p.htm 3 http://www.businessdictionary.com/definition/product-development.html



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http://www.businessdictionary.com/definition/market-niche.html

http://www.businessdictionary.com/definition/want.html

http://www.businessdictionary.com/definition/presentation.html

http://www.businessdictionary.com/definition/product.html

http://www.businessdictionary.com/definition/modification.html

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/benefit.html

http://www.businessdictionary.com/definition/offer.html

http://www.businessdictionary.com/definition/characteristic.html


http://www.businessdictionary.com/definition/product-development.html

http://www.google.com/url?sa=X&start=2&oi=define&ei=lgg8SKapMIvQ6gOKuejeDQ&sig2=NQrKmNL94lrriPNSIZVuYQ&q=http://www.business2000.ie/html/resources/glossary/p.htm&usg=AFQjCNHuc4vFtU9kma40AL86OTiEZ5BSFA

http://www.entrepreneur.com/encyclopedia/term/82414.html

http://en.wikipedia.org/wiki/Privatisation

http://en.wikipedia.org/wiki/Liberalization

http://en.wikipedia.org/wiki/Foreign_direct_investment

http://en.wikipedia.org/wiki/Foreign_trade

http://en.wikipedia.org/wiki/Private_sector

http://en.wikipedia.org/wiki/Socialist

According to Kotler, Product levels can be understood as follows:

Product Levels

There are 4 product levels:

1) CORE BENEFIT The fundamental service or benefit that the customer is buying

2) BASIC PRODUCT Converting the core benefit into the product3) EXPECTED

PRODUCT

Set of attributes & conditions buyers normally expect when they purchase this product

4) AUGMENTED PRODUCT

Product that exceeds the customer’s expectations



Basic Product Core

Benefit

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Augmented Product Expected

Product

Product development is undertaken by a company as a strategy. Along with fulfilling the unsatisfied needs of the existing market, it is to enter a new market or as a new channel to communicate with existing or new customers. Product development is incomplete without cost efficiency. The core aim behind any innovation is to make the product more cost-efficient, not only for the seller but also the buyer of the same.

“Every new method of trade offers an opportunity for economic agents to compare its costs and benefits relative to the status quo. Such comparison motivates sorting across market segments and reshapes the whole marketplace. The Internet provides an excellent example: it introduces substantial search cost savings over brick and mortar retail stores but imposes new obstacles for sellers to convey quality.” (Ginger Zhe Jin University of Maryland and NBER & Andrew Kato, Bureau of Labor Statistics)ii. Thus, once the product is developed, product management/ communication come into play.

Product Management can be explained as the organizational structure within a business that manages the development, marketing and sale of a product or set of products throughout the product life cycle. It encompasses the broad set of activities required to get the product to market and to support it thereafter.4

Also, when analyzing geographic patterns of trade, we find that distance continues to be an important deterrent to trade between geographically separated buyers and sellers, though at a lesser extent than has been observed in studies of non-Internet commerce. We also find a strong “home bias” towards trading with counterparties located in the same city. Further analyses suggest that cultural factors and the possibility of direct contract enforcement in case of breach are the main reasons behind the same city bias.”(Ali Hortaçsu, University of Chicago and NBER & F. Asís Martínez-Jerez, Harvard Business School & Jason Douglas) iii

4 http://www.businessdictionary.com/definition/product-management.html



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http://www.businessdictionary.com/definition/market.html

http://www.businessdictionary.com/definition/required.html

http://www.businessdictionary.com/definition/activity.html

http://www.businessdictionary.com/definition/product-life-cycle.html


http://www.businessdictionary.com/definition/set.html


http://www.businessdictionary.com/definition/sale.html

http://www.businessdictionary.com/definition/marketing.html

http://www.businessdictionary.com/definition/business.html

http://www.businessdictionary.com/definition/organizational-structure.html

http://www.businessdictionary.com/definition/product-management.html

Something similar is observed in the trading businesses as well, where there are players dominating a particular region over the other merely due to closer geographic proximity.

For a product like trading, geographic proximity can be predicted to have an impact, as the Indian client is still not used to the idea of virtual transactions. The reason as that in this industry ‘trust & understanding’ is of great importance. It feels safer to have the person dealing with your money geographically closer than otherwise.

The role of cultural bias is debatable, but can not be shunned away. There are so many stock market players in India and each have a different key strength and weakness. Something similar happens with the online trading business as well. Though the level to which both these factors affect the online trading market is debatable & yet to be unfolded.

At present, the Indian markets are experiencing a state of turmoil (or correction), where the markets are in the worst of the bearish phases. Even though online trading has been around for quiet some time, it was only a few months ago, when the BSE was running in 20,000 points to win the bullish race that it really picked pace; today drooping to a low of 13,000 odd points in BSE & 4000 points in NSE, further dipping each day.

There are studies which reflect that an offline trading with increasing confidence move from offline to online trading. It is often argued that the internet influences investor behavior. Furthermore, the recent “bubble" in internet stocks are sometimes ascribed, at least in part, to online trading. However, little is known about how online investors actually behave. (Markus Glaser) iv Recently, researchers have gone a step further from just documenting biases of individual investors. More and more studies analyze how experience affects decisions and whether biases are eliminated by trading experience and learning. (Markus Glaser and Martin Weber)v



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Thus, conflicting and complementing, today, the market as well as the players are as unpredictable & enigmatic as the other. In such a scenario the question pertaining to W2W is regarding the launch of its online trading product. Thus, the project is to determine the need gap, what should be the product features suitable for the Way2Wealth product to suit the volatile markets, along with the communication plan for the same.In a situation as such, where the basic offering is more or less the same, the role of marketing the products becomes very dominant. In the race today, it is not only what you sell but how you sell. 1.2 HYPOTHESIS

1. Product features of Way2Wealth product should be have the minimum features namely,

a. Trading in Equityb. Trading in Derivativesc. Intraday & Deliveryd. Linkage to minimum 1 Demat Accounte. Linkage to minimum 1 e-bank accountf. Watchlists – 2 minimumg. Portfolios – 2 minimumh. Trade in NSEi. Trade in BSEj. Web based platform

2. W2W along with the online trading platform should provide other gamut services to promote costumers to take up online trading services.



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1.3 PURPOSE – RESEARCH OBJECTIVES

The Key Issues and Facts Analyzed by this paper is:Through this research paper, we aim to understand:

RESEARCH QUESTIONS RESEARCH OBJECTIVES

1. What does the market look like in Online trading?

To determine the best practices in online trading by surveying both local & international best practices in Online Trading (OT)

2. Who are my competitors? To determine the nature of competition in the existing market (competitive analysis of Players in the Online Trading Market (OTM))

3. Why are online trading products needed?

To determine the needs for online trading products (OTP)

4. Where do the existing products of Way2Wealth stand?

Benchmarking of Way2Wealth Products

5. What features do I need to provide?

To determine the Structure of Product features

6. How should I communicate to my target audience?

To determine the marketing & communication plan for launch of W2W online trading



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1.4 IMPORTANCE OF STUDY

The beneficiaries of this study will be strategic planning groups, marketing groups & executive managers in the online trading business.

1.5 PROBLEM DEFINITION

i. To determine the product features for the new online trading product by Way2Wealth

ii. To determine the marketing, branding & communications plan for the online trading product

1.6 LIMITATIONS

A major limitation with the existing literature is that there is very little study on the Indian markets, thus, though they can be accepted to a certain extent, they can not be 100% verified.



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2.1 METHODOLOGY

The project was broadly structured to have an in-depth market analysis of the existing players so that the strategies on the same could be tapped and used as an advantage when launching the online trading product for Way2Wealth.

To undertake such a study, I was first given time to understand the market and its functioning and so on. Having met the primary criteria after a week’s study, I went out for the market research, guised as a customer. The basic guidelines were provided to me by the organization from previous benchmarks on the same. With exposure, I was allowed the freedom and flexibility to add-on the parameters.

With the feedback session, everyday, by my mentor I was soon able to answer most of the critical questions pertaining to the product.

To keep up my enthusiasm and my agile mind, he further added responsibilities, which otherwise were not a part of my project, along with the every-day operations, which would not necessarily fall under an intern’s project.

2.2 SETTING

Broadly put, the methodology adopted for the entire project tenure, was observational, case study. The tools used for the same were interview & observations made in the natural settings. All tools were used in a matrix format, such that some of the information received would help verify any prior obtained information.



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The secondary sources of data were customer care centres, relationship managers, Management of Way2Wealth, newspapers, web pages etc. The books and web were little sources as most of the data I collected was from the real market itself.

To begin with, the first two weeks were spent in the trying to understand what is online trading and the market scenario. Articles printed online were used for reference as well. Apart from that, help was sought of people who understand the online trading business. It included a few friends, relatives, online help and my mentor to clarify the doubts as and when they arose. My mentor guided me with the nature of questions which was supposed to be enquired on in relation to Online Trading Products. With his assistance, I was able to draft a structured questionnaire. Yet it is important to note, that the questionnaire was only a pointer. The answers were to be sought not as a market researcher but as a customer. So it was similar to that of an interview than conducting a structured questionnaire.

As and when I found pointers/ parameters, I added them on to the list. If I missed getting the information from the previous organization, I would go and collect it from them over the phone later, when clarifying doubts about the product. Thus, it was an inductive research process.

Going into the details, I managed to meet the relationship managers of quiet a few players. Once I got a hang of the entire game, I managed to ask questions on my own, without any assistance of a written question paper. One of the successes was when after a week of this exercise, I indirectly confirmed to the person on the other end of the phone that I am not a novice in the industry. By the time that stage arrived there was no need to portray myself as a novice customer. My interactions made me come across as a trader. The other advantage in this situation was that the telephone was the means of my communication.

The benefit of this methodology was that I could gradually improve on the entire information collection procedure, considering, the entire project was undertaken by a single student in a city as wide-spread as Mumbai.



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2.3 PARTICIPANTS

The players I have taken in my study are:

International Indian/ Local Cross-CompetitionCharles Schwab Angel Broking CNBC18

E*Trade Asit C MehtaBonanza OnlineDawnayDay AV

SecuritiesGeojit

HDFC SecuritiesICICI Direct

IDBI PaisabuilderIL&FS

IndiabullsIndiaInfoline

Kotak SecuritiesMajor GainzMotilaloswal

NetworthstockReliance Money

ReligareShareKhan

UTI



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Apart from these external participants, the internal participants were the employees & Management of Way2Wealth Securities Pvt. Ltd.

2.4 PROCEDURE

The methodology undertaken for each of them is as follows:

a. International Industry Analysis:I. STUDY ON BEST PRACTICES FOLLOWED BY INTERNATIONAL PLAYERS OFFERING ONLINE

TRADING: The entire study is more or less like a case-study undertaken to understand the trading market practices on a wider spectrum. To understand the best practices offered, I studied the two prominent players namely Charles Schwab & E*Trade. The study was more or less an observational one, where my source of data was internet. To understand this cycle better I had even ventured into understanding the forex trading portal.

II. STUDY ON INDIAN PLAYERS PROVIDING ONLINE TRADING IN INTERNATIONAL MARKETS:During the entire tenure of my project, I made it a point to visit some or the other portal of the local/ international market players. It was during one such occasion that I registered on E*trade to trade in the US markets.

It was after a week or so, when I received a call from IL & FS, a sub-holding of E*Trade (now taken over by HSBC). They explained me the entire process of trading in the US market, the benefits of the same. It was more or less like a telephonic interview where even though I was supposed to be the customer, was the one digging out information on their product and more.



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I requested a brochure (refer annexture), which was delivered to me online in a few days. They called back with information for a week, after which there was no response from their end.

The other company which offers this facility is ICICI Direct.

III. LOCAL MARKET PLAYERS:

When I entered the offices of the competitors, I made portrayed myself as a first timer interested in investing in the market. To begin with this, I first went to Asit C Mehta, office located in Belapur. I wanted to experiment my skills, needs and requirements before I enter the bigger offices. It was for the same, that I carried my questionnaire in hand. It helped me understand the reaction I could expect from my respondent.

It was not a very motivating experience, but I managed to collect their brochures, newsletters apart from account opening details. The meeting lasted about 45 minutes during market hours. He suspected me to be a market researcher. The interaction was during the market hours.

With a lesson of such nature, I moved to Nerul, where I entered the Sharekhan Office. Before entering their office, which was a small franchisee place, I wrote down all the questions in a book and then went ahead to interact with them.

The meeting here lasted over 1 hour. The owner could spare the time as he was not a direct trader but owned the franchisee outlet. The person was curious like the previous one, with the nature of my queries, as such questions were never asked by the investor. It was here that I weaved a



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story of me being a graduate, who has just given the final year examination, and since it is vacation, looking at investing as an option. Since we were discussing things together, we jotted down the necessary questions we could ask. He was cordial but distrustful.

He entertained me till the end, where in I left my contact details at the counter. He provided me information about how his product is better than the competition, which I could use later in my conversation with those companies. They reverted back 2 days later, with an e-brochure on the same. It was more like a letter than a brochure.

From there I moved to Vashi to explore the brokers’ fraternity there. I went to IL&FS branch located there. By the time I reached, the markets had closed. So the concerned person was able to give me proper attention. He was an earlier employee of Kotak, so he could offer me insights on the same. With him, it went to about 45mins to an hour, where he even showed me how the software works. He said he liked the idea of educating his clients and helped me understand some more of the terminology & its practical application. He provided insights on IL&FS vs Kotak.

It was the last meeting for the day, after which I visited the Way2Wealth branch in Vashi. The person on the desk had met me in the Head Office, hence, there was no point in disguising my purpose. I discussed with him the reasons customers opt for online trading/ offline trading and other information relating the business. The interaction lasted about half an hour to an hour, interrupted with a few clients in between.

I visited 3 firms in a day. At the end of the day, I discussed the interactions with my mentor, who would then correct me, suggest me the points where I could improve, or just note the observations I make & assess my feedback.

The next day, my trip began with IndiaInfoline/ 5paisa.com, located in Vashi. Since it was a visit during the market hours, I was able to not only know about the product, but was able to see their software in action unlike



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a demo. The lady relationship manager was very supportive, and made sure I understand things better. She didn’t have a brochure or any physical document for me to carry back. So she gave me the flier of their currently launched plan in online trading. Her follow up was not as good, but her communication skills were good.

My next stop was Geojit branch, at a close distance. The office layout was very basic and the person on the desk was not customer-friendly. In fact, he directed me to call the helpline and ask all possible details on the product. There was very little awareness about the product. It was a disappointing 10 min interaction.

The Religare office on a floor above was my next stop. I had received a call from their call center, as I had made an online enquiry on online trading. The lady had said, I would get a call from someone, but nothing happened. I visited the branch personally. The branch was a very small one. The people seemed to have little receptivity towards any new client. When after about 10 – 15 mins I managed to meet someone, he did explain me the entire process (the little of what he knew) in the next 15 – 20 mins. He concluded by saying that he is not aware much about the online trading products, as he deals in offline trades & I’l have to get in touch with the Malad branch.

Reliance Money, was my final stop for the day, where I spent about half an hour discussing the product and benefits and as such. The people were more polite & co-operative than that of Religare or Geojit. I was directed to two different people as the information available was not sufficient with any of the concern persons. There were 2 – 3 trading terminals located in a small corner. That was the end of my visits for the day.

The next day I ventured out into the western suburbs of Goregaon & Malad, Religare, ICICIDirect, BonanzaOnline, & Angel Broking.

I began my research from Religare, where I met the relationship manager and interacted with him for over an hour. The office set up was of light



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colors and not as blue as that of India Infoline. I could not relate to the set-up of the Vashi branch with the Malad Head Office. The concerned person was trained for HNI clients, but since he could not disregard a customer, he did try to help me with the same (I was not a HNI client). He provided assistance by making me interact with the concern person who specialized in my nature of query. At a point I thought I was caught, and that he was entertaining me just for the heck of it. But my doubt was cleared when the same evening he called and apologised for lack of attention as he was pre-occupied and unable to help solve my query better. He offered me the coaching by his colleague, who could come on his behalf and explain me the needful. I interacted with his colleague the next day, wherein the information received was insignificant. What was important to note was the attitude they carried towards customers. The assistance provided by Religare is for the HNI, not really the novice who would be interested and can not invest much at the given point of time. (annexure)

After over an hour at Religare, I left for ICICIDirect, which is located near Goregaon Station. The layout is similar to the other ICICI branches, but it was relatively vacant. The concern person on desk did not have much idea about the product features in depth. The entire process finished off in 15 mins, wherein I got to see a product demo, and live features. Not much in terms of what I had received in my interactions with the other players. I collected a brochure and necessary customer care numbers from there and left for Bonanza Online.

At Bonanza Online I interacted with an assistant of one of the relationship managers, who briefed me on the product and the other necessary details. She was carrying a brochure and the necessary documents when she did that. Since the conference was occupied, I was at the reception desk for the entire tenure. The meeting lasted for about 45 mins or so. It was my last interaction for the day.



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I wanted to visit an office of Angel Broking, located in Andheri, but it was over 6.30pm, by the time I left Bonanza. Hence, I called up the office, where I left my contact details.

For Motilal Oswal, was another episode by itself, where I met the concerned representative, while on my way to Religare at the station and happened to have a random conversation with him. He provided me with his card for the same.

I visited his concerned branch on the next day and called him as he was unavailable. He directed me to another colleague, who passed me to a management trainee. As a trainee he tried his best to help me. He showed me the product demo and the other necessary details. The session lasted the normal 30 – 45mins. After and during which, the representative I had met in Malad, called twice to check how was I taken care of. He did hint disapproval at a management trainee dealing with me, which indicated his concern to convert me as a customer than otherwise.

For the rest of the players including Angel Broking, namely, ICICIDirect, IDBI PaisaBuilder, Indiabulls, HDFC Securities, Dawnayday AV Securities Pvt Ltd, Geojit, Kotak Securities & Major Gainz (Prabhudas Lilladhar (P) Ltd), NetworthStock, UTI were taken over the phone, either by calling up a branch, or the customer care centre. The minimum time over the phone interview lasted was 30 mins. Sometimes, it would extend to almost an hour as the customer care representative would put me on hold to collect or verify the necessary information. There were occasions when on calling up a particular branch, the concerned person would keep forwarding the call to some other person. On one such occasion, my call was transferred to over 4 people with each one not ready to talk or explain. Guised like a customer it was an irritating treatment to come across. But as an researcher, it threw a lot of light on the situation of the service quality and customer management.



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The interaction over the telephone with an ICICIDirect representative was an interesting one. I had called at their office after 6.00pm. The representatives had very little knowledge about the product. The situation was as such that they told me that they have still not finished training, which was scheduled for the next day. Even when I mentioned that I might not look at ICICIDirect as a potential firm for my investment for this behavior, if there was no one to revert on the day, they did not mind loosing a customer, they were more keen on closing the conversation and closing for the day. They did make a small effort, but they were not enthusiastic to have a client in their wing.

Thus, on an average, personal visit or over the phone, I managed to cover only 3 players per day. It was difficult to increase the number of people. The personal visits gave me a taste of the set-up/ layouts in a broking/ financial company. I made it a point to halt at a place note down my details & observations on my questionnaire format. The telephonic conversation helped me understand the customer care/ management aspects of those companies.

Once I had benchmarked the products in the industry on various variables. (refer Annex). The entire process took about 15 days, after which, I was assigned communication & branding tasks relating to the project.

Amidst this, I had conducted a small interview with people who trade in the market. The sample was too small to add up to any conclusions, considering the dimensions where the product is projected to launch amongst. The construction of the questionnaire was not up to the mark and later discarded.

Yet, the few responses received threw a lot of insight on how an investor thinks, and why he would opt for offline trading over online trading or vice versa. The sample with which I interacted was about 10 individuals. A sample question format is enclosed in the annexure.



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Obtaining information from the internal customers of was a continuous process over my entire tenure in Way2Wealth. Most of the information obtained was either by observation, colleagues & my mentor, who would brief me up on the entire organization related basics. Interacting with the branch managers also provided insight on how the organization functions to an extent. The final touch came in when I interacted with the top management of Way2Wealth. The interaction with them provided me a wider view on how the management envisions its strategy & programs, while I also had a first-hand experience to the results in the regional office (earlier corporate office) I was working in.

When interacting, I was looking at the communication gap, which could be existing between any of the levels of the organization, apart from the questions related to strategy, organization, markets, future plans etc. The questions asked were more or less the same. They varied a little for the HR Head, as his domain of was specific to the Human Resource of Way2Wealth. The management was generous with their time despite their busy schedules. There is no place where any direct answers have been put up. The answers conjured up come as a part of my reflection of the entire data on the whole.

Last, but not the least, the cross-sectional variable, CNBCTV-18, was analysed entirely externally. There was no direct contact with the organization, apart from one small interaction, which I had during an advertisement related activity with moneycontrol.com. The other source of information which I received on them was merely by observing their plans & new ventures online or on television (which was always running on CNBC-18, in my office hours). The reason why I choose it, is that I was once hinted by my mentor that it is planning to come out with a online trading product, which would shake up the entire industry. Assuming that it is not directly involved into the trading business apart from the media expertise, the steps and patterns which I observed later drew me further into it. 3.1 RESULTS The results were analysed in a SWOT like matrix judging the internal and external factors, the trade-off to which is the recommendation section. The variables selected were further divided into Porter’s Five Forces of Competition. Viz

1) New Entrants



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2) Intensity of Rivalry among players3) Threat of Substitutes4) Bargaining power of Sellers 5) Bargaining power of Buyers

The first three have been discussed in detail on later pages, broadly as internal, external and cross-sectional players.

BARGAINING POWER OF BUYERS & SELLERS:There are a large number of players in the industry, specializing in region, product, and type of client. But, these diverse sets of sellers, when put together do not hold a commanding position.

Some 6 months ago, this could have been the scenario as everyone wanted to dip in the rising waters of the stock market. But in the last few weeks the drop has been so tremendous, ignore fresh customer conversion, even customer maintenance is becoming a challenging question for the industry. Now, the pressure to perform is even greater. These market conditions are predicted to prolong till the next few months or at least till the new government comes into place.

The scenario is as such, that the buyers are holding an upper hand. Though there is such a high market potential, it can not be tapped at this point as the entire industry is at its lows.

Every seller is playing with the numbers, while there are some who are positioning their product as superior and charging for the same. The amusing thing is that people are ready to pay for those products/ services, which are otherwise being provided complementarily eg. Advisory, newsletters etc. Thus, on the surface it appears that customers value what they pay for.

A mass affluent class member can be described as an individual who is earning, and has the money but needs guidance. He neither has time for personal involvement nor would he have similar amounts to invest like that an HNI.



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This client is interested in being a part of the market. Most of the people are either trying to pull the base market or upper market, ignoring this huge bracket, with unsatisfied needs. Security will not be a primary concern to this client as he is educated enough to know that these basic criterion of transactions/ processes are looked after by SEBI.

Before commenting on the data on other players, I would first like to introduce the organization, under whom I did my entire research. It is in the context to Way2Wealth, that the recommendations will be given in the end.

For the competitive market analysis, a brief is given on all the external players, namely, international players & Indian players, followed by the cross-sectional study on CNBC-18.



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Internal Environment Analysis

Introduction

Way2Wealth is one of India’s premier Investment Consultancy Firm, launched with the aim of making investing simpler, more understandable and profitable for the



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investors. Way2Wealth brings a wide range of product offerings from Equity and Derivatives (NSE), Fixed Income Securities, Insurance (Life & Non-Life), Mutual Funds to Portfolio Management Services for the convenience and benefit of it customers. Way2Wealth today has over 60 easily accessible ‘Investment Outlets’ spread across 25 major towns and cities in India. It also has another 25 franschisee outlets

Our Mission"to be the pre-eminent destination for personalised financial solutions helping individuals create wealth".

Our PhilosophyWe believe that "our knowledge combined with our investors trust and involvement will lead to the growth of wealth and make it an exciting experience".

Our Logo

Blue symbolizes Knowledge. Knowledge is limitless, so is the sky and sea, both of which are blue in colour.

Knowledge applied leads to creation of wealth for our Investors.

Red symbolizes Trust.Red is the color of blood and the heart. Trust is a matter of the heart. Our

knowledge bears fruit only when the investor places his Trust in us.

Yellow symbolizes Excitement and Involvement of the investor. We strive to make investing an exciting and involving experience for our investors.

Green symbolizes Growth. Growth in Nature is visible in the form of plants and trees; all of which are green.

Knowledge, Trust and Excitement should ultimately lead to Growth of the investors’ wealth.



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Our HeritageSivan Securities started in 1984, has a long and illustrious track record of being amongst the premier Financial Intermediaries in the country as well as being an incubator for IT start-up firms.

The Venture Capital division came to be known as ‘Global Technology Ventures -GTV’ and the Financial Intermediary Division was spun off as ‘Way2Wealth’ in the year 2000.

Over the years, Way2Wealth has developed a strong reputation for navigating its investors through all the ups and downs in the market. Way2Wealth has inherited these same values in addition to a base of 100,000 individual customers, over 500 corporate/institutional clients.

Our Group CompaniesGlobal Technology Ventures – GTV, has provided venture capital to companies such as Kshema Technologies, MindTree, Ivega etc.

Amalgamated Bean Coffee Trading Company Ltd. – (ABCTCL), India’s largest coffee conglomerate and coffee exporter, pioneering India’s first concept café’s ‘Café Coffee Day’, a chain of youth hangout coffee parlors. From a handful of cafés in six cites in the first 5 years, ‘Café Coffee Day’ has tday become India’s largest and premier retail chain of cafes with 483 cafes in 84 cities around the country.

The Visionary

Mr. V.G. Siddhartha – ChairmanHe is the visionary behind Way2Wealth and the founder of Sivan Securities. He has been involved in the Indian Capital Markets since 1984. During his early years of his work-life he has spent valuable years with J.M. Morgan Stanley. This experience stood him in good stead when he became a successful investor. Having a Masters in Economics from Mangalore University, he is an avid reader and traveller with a yen for creating companies and brands.



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Mr Siddhartha’s business interests spreads across Coffee retailing, Plantations, Real estate, Venture Capital and Financial Services

GTV today a Billion$ company, partners with exceptional entrepreneurs, who have a gut for the original, and are passionately dedicated to building category-leading tech companies. Investing in technology ventures across all stages, GTV provides access to capital and resources to companies with global market leadership potential

Took over Sivan Securities Ltd, in 1984 Founded the ‘Amalgamated Bean Coffee Trading Company Limited – ABCTCL’,

in 1994. India’s largest coffee conglomerate and coffee exporter Largest exporter of green coffee from India One of the two fully integrated coffee companies of Asia, involved in all sectors

of Coffee from plantations to retailing to exports Pioneered the café concept in India in 1996 with Café Coffee Day, popularly know as ‘CCD’

Chain of youth hangout coffee parlors Founded ‘Global Technology Ventures’ in 2000 - a company that identifies,

invests and mentors companies engaged in cutting edge technologies. Founded the real estate company ‘Tanling’, develops world-class infrastructural

facilities for Technology enterprises. ‘Global Village’ on the outskirts of Bangalore, housing companies like EDS,

Mindtree, ‘TechBay’ on the oceanfront at Mangalore

Some of his large investments include: Mindtree, Kshema Technolgies, I-Vega Consulting

Accolades Café Coffee Day today is India’s largest retail chain of cafes. V.G. Siddhartha is awarded the ‘Entrepreneur of the year’ – 2003 by The

Economic Times for ‘crafting a successful pan Indian brand for a commodity



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business and giving Indian consumers a new lifestyle experience that is within reach of the common man.’

Amalgamated Bean Coffee Trading Company Ltd. today is the largest exporter of green coffee from India and perhaps one of the two fully integrated coffee companies of Asia, involved in all sectors of Coffee from plantations to retailing to exports.

‘Coffee Day Group’ today is the only fully integrated and largest coffee conglomerate in India and is attributed with creating the ‘coffee revolution’ in India - acknowledged by the Coffee Board of India

And now, he is actively involved with Way2Wealth and committed in realizing its vision of making way2wealth 'set new standards in the retail financial services in India'.

Our Management Way2Wealth has a very credible management team, who have well over 100

man-years of experience amongst themselves. Top quality management with over 100 man-years of cumulative experience

in the field. A strong leadership, respected within industry circles and recognised among

competitors as being formidable and strong, demonstrates high quality and a visionary management style.

Mr. M R Shashibhushan - Chief Executive OfficerSHASHIBHUSHAN, age 39, has over 18 years of experience in various areas of the Capital markets. He has done his Diploma in ‘Systems Analysis’, during his professional tenure has completed the ‘Professional Membership Programme’ of the Bangalore Stock Exchange, has undergone the ‘Executive Education Programme’ at IIM Bangalore and the ‘Corporate Leadership Programme’ at ‘Orix Corporation Tokyo, Japan to name a few.

In his last assignment with IL&FS Investsmart Ltd. for over 9 years, he started as Head - Retail Business (Karnataka Region) and subsequently moved to its Corporate Office in Mumbai to head their Retail Equities Business, which included the Branch Network, Alternate Channels, Private Clients Group and Investments Advisory. He



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started his career with M/s Ravi Associates in their Equity Trading desk, during his career he has been entrusted and has made significant contributions in various functional areas of Investment Advisory, Portfolio Management, Distribution of Financial products etc. with Kotak Securities and Escort Securities, where he also set up their Secondary Market desk.

Currently as CEO - Way2Wealth, he is in-charge of strategic planning. Renowned for turn around, he is deploying his vast experience in charting the way forward for way2wealth - a name to reckon in the India financial space.Mr. Ketan Sheth – Director (Research)KETAN is on the Board of Way2Wealth Securities Private Limited. A postgraduate and ICWA by qualification, he has nearly 2 decades of experience in the Capital Markets. He has earlier held responsible positions in JM Financials and FICOM.

Throughout his career, Mr.Sheth has focused on research primarily in the equity market and has also been associated with Corporate Database, a pioneering equity research based firm since its inception.

25+ years of experience in the Indian capital markets A Post Graduate with specialisation in Management and a member of

ICWA Director of Research and drives the Portfolio Management Services desk

Known in the markets for his astute stock-picking ability.

Sunil Ramrakhiani - Chief Operating OfficerSUNIL, age 35, has over 11 years of professional experience across diversified asset class; Commodities, Equity, FX markets and Treasury management. He is a BE (Mechanical) and a management graduate from ICFAI Business School. He is one of the earliest base metal and equity derivatives traders in the country and has been founding team members of national level commodity exchange.

In his last assignment, Sunil has been instrumental in setting up the Commodities business at IL&FS Investsmart, which helped the company achieve leadership position in a few commodity segments. Prior to which he was associated with ICICI



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Bank Treasury in the Global Markets and Corporate Markets Advisory group in Equities, FX and Commodities.

He was also deputed from ICICI Bank as a founding team member to conceptualise and roll out the National Commodity and Derivative Exchange (NCDEX). In his career Sunil has been associated with various broking and financial houses in various functions, to name a few: Weldcraft, SWIL Ltd, Rudolf Wolff, etc.

Sunil is actively involved with the Commodity exchanges and Regulators for development of the commodity derivatives market in India. He is a member of CII Committee for Commodities Market & Product Committee on Exchanges. He has been regular speaker on International derivatives conferences

Currently as COO - Way2Wealth, he would be driving business strategy and is in-charge for trading products, including equities and derivatives in the equities and commodities markets.

Hutaib Bandukwala – AVP – Marketing, Communications & Service QualityHutaib, age 32, has over 8 years of professional experience across brand management, communications & channel development activities. He has done his MBA in Marketing from Chetna Institute of Management, Mumbai.

Apart from being a certified trainer, he has also undertaking courses and programs like Larry Grant’s Workshop on Account Planning/ Advertising Strategy, Personal Development Workshops: ‘Managerial Effectiveness’, ‘Interpersonal Skills and Effective Communication’, ‘Train The Trainer’ etc.

He began his career with IL&FS (E*Trade USA), implementing, co-ordinating and managing the internal & external communications. In his previous assignment with ICICI Bank, designated as Head – Product Manager (Alternate Channels to Banking), he specializes in product/ process development solutions, channel migration, corporate representing content management, training & conducting training sessions apart from studying and benchmarking vis-à-vis competition.



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Keeping track of the Financial Industry, his favourite past time includes dabbling in Stock Markets along with his enthusiasm for nurturing sports.

Currently as AVP – Marketing, Communications & Service Quality - Way2Wealth, he is in-charge of offline & online responsibilities, communication within and from the organization, along with maintaining PAN India service standards.

Our Products & Services: Services and solutions that cater to the retail and institutional investors at large that encompass primary and secondary market instruments:

1. Equity Trading 2. Derivatives Trading 3. Commodities Trading 4. Distribution Services: IPO’s, Mutual Funds and Fixed Income products 5. Advisory services: Asset Allocation Planning and End to end personalised

investment management services for Wealth Generation, Retirement Planning and Capital Build up at different stages of life.

6. Wealth Management Services: Portfolio Management Services 7. Online Services & Tools - Online Trading, Portfolio tracking in-depth research

reports and much more. 8. Insurance Marketing – Life and Non-Life Plans 9. In-house Research & Analytics Depository Services 10.Tax planning

Organizational Structure: Way2Wealth is Head Quartered at Bangalore. It directs the Corporate Offices in the various major cities of India. Their regions can be broadly stated as Karnataka, Andhra Pradesh, Tamil Nadu, Mumbai & Delhi.

The corporate offices of these regions, manage the regional offices under them, depending on the density of branches & franchisee network in that region. It has more than 80 investment outlets in more than 25 major cities and towns.



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Predominantly a south-based fan following, it is now moving north.

Way2Wealth is one of the dream children, which Mr. Siddhartha due to his other pre-occupations, was unable to nurture to the fullest, keeping its scope limited to the southern region.

The management was revamped and a new life was enthused about 8 months back, by bringing in an entirely new team of industry experts to speedup up the tiger once again.

The expertise of this management is evident not only in the profile which describes them, but the activities undertaken by them. Within a span of 8 months, they have increased their clientele by over 100%.

On the other hand, the employees have been increased from 375 to over 800 in the same time-frame, while it is still acquiring newer & newer employees.

These statistics are noteworthy, when the financial industry is at its lows & expected to sink further in the short-term.

It proudly states & nurtures their man power is their real strength, which makes it an exceptional organization over competition.

Planning for the long term, not only are they acquiring newer and newer employees, but are adding more strength to the organization by revamping the structures and setting in more futuristic processes.

With growth, they are ensuring transparency. The best example for which is the ‘EMPOWER’, a process software, which helps increase transparency as the company is growing in leaps and bounds. It is an open forum, where the employees can communicate with each other, between all departments, and any levels without any intermediary affecting the communication.



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Apart from that, changes have been brought in the appraisal system eg. Earlier the appraisal points/ benefits were given only to the employee who introduced the client. Now it has been broken down on 3 levels – introducer, converter & maintainer; which motivate the employees to bring in more business and makes them believe to be a part of the organization’s success.

The management strongly believes in putting in processes, such that the organization can function without the leaders. The structures have been designed such that their own set of flexibility to motivate and nurture the growth of the organization as & when required. The organization has been client-centric rather than profit centric. It is now looking at avenues to serve a larger segment of the ignored population. They encourage the HNI (High Net-worth Individuals) as well as the lowest income level masses. But they are more concentrated on the individuals generally termed as the middle class, who wish to invest but due to lack of guidance and demanding work pressures are unable to do so.

It is to serve the needs of this segment, who have largely been ignored, Way2Wealth is creating more and more facilities. It is also looking at institutional business as a future avenue. It may appear like a niche, but it is these masses which they are concentrating on.

Product Structure: Way2Wealth is deeply penetrated into Retail Offerings, while it is working on the Institutional Verticals.

Broadly, their business is a Retail Business unit. Under the Retail segment, they have 4 major verticals, namely, Trading, Distribution, Portfolio Management & Advisory.

Trading includes equity, derivatives & commodities. At present it is an offline expert, soon moving into the online business as well.



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Distribution consists of third party products, like IPO’s, Mutual Funds, Insurance. It has acquired various awards, from the AMC’s for their performance in this vertical.

Portfolio Management Service (PMS) is another structure, which is a much deeper and focused version of Mutual funds. It concentrates exclusively on the client needs by reducing the risk and maintaining & increasing gains of the customer.

Advisory, though has been put as a separate vertical, it is the core foundation of Way2Wealth. It is a pillar on its own, while it supports the other verticals with its expertise. Advisory otherwise is provided for activities like ‘buy & sell’, tax planning & risk profiling as well.

A sought out output of the Advisory Cell is the monthly investor’s magazine, ‘Wealth Compass.’ It encompasses all the current happenings, and the news of the month into a compact analytical format in reader-friendly language. (refer annex)

Unique Investment Outlets Way2Wealth Investment outlets are designed to be places where retail investors can come in touch with Investment opportunities in an atmosphere of convenience and comfort. The look and feel of the offices across India projects a consistent branch image for the company. The features that enable a unique facility for retailing financial services include among others:

Easily visible branches set up in the commercial spaces of potential investment zones ranging between 750sft to 1000sft

Most branches are located in the ground floor sporting huge glass frontage promoting easy accessibility and reflecting our attitude of complete transparency.

The major portion of the branch area dedicated for customer use. The furniture is in CKD formats to add flexibility in using the branch for Investors purposes.

Connectivity to NSE for trading facilities. TV and other electronic mediums to facilitate real time update and

dissemination of information to our customers.



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Each branch comprises of trained and qualified Investment advisors to take care of the needs of the customers.

Research Desk Research is at the core of our advice. We believe that sound investment decisions are made on sound analysis of facts, past performance and credible market information. Our research cell focuses on providing data and analysis to help customers make sound investment decisions. The Research cell is managed by a highly qualified team that is handpicked and trained extensively in the proprietary Way2Wealth Investment Philosophy centered on finding the best investment solutions for our customers. Based in the commercial capital, enables the team to have a pulse of the trends allowing dissemination of the most up-to-date and latest information.

The Way2Wealth research cell measures up to international standards of technology and on-site resources.

The Way2Wealth Planner – Your Personal Investment Guide Every investor has unique needs. So we have created a wide range of services, where you will always find exactly what you are looking for. Aiding you in this effort is the quintessential Way2Wealth Investment Planner. These hand-selected planners are made up of professionals with the expertise and experience to meet your unique financial needs. These financial planners reflect our commitment to provide financial advice based solely on your objectives without traditional conflicts of interest.When you choose a planner from the Way2Wealth network, you’ll get professional help in the following areas:

Personalized Investment plan for your short term, medium term and long term goals

Expert advice on Investment products ranging from” the Fixed Return Investments and Life Insurance to the highly volatile Shares and Derivatives



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Avail Tax saving, Retirement planning and VRS investment services Facilitate Equity, Derivative and Commodities trading, Initial Public offerings

(IPO) of Companies, Mutual funds and Make investments Government of India/Infrastructure Bonds

We also have a specialized team catering to the distinct needs of our Corporate and Institutional clients out of our five regional offices.

The Way2Wealth advantage! Personalised Investment Solutions: All our customers receive individual

attention Full choice of Investments: Mutual funds, Life Insurance, Fixed Income

Instruments, Equity and Derivatives Processing support: We take care of all your paper work and provide

service at your doorstep. Investor eligibility criteria: Customers with a minimum investment

amount as low as Rs. 5000 per month can avail of our services.

This unique Way2Wealth concept can be easily experienced through the innovative and customer friendly network of 80 Investment outlets that spans 25 major towns and cities in the country (and still growing). In addition to the national branch infrastructure, Way2Wealth also has an online presence to enhance its value proposition to its customers.

Established Brand – 20+ years in the financial services industry Rich pedigree - part of the billion$ ‘Global Technology Ventures (GTV)’ group Top quality management – having a combined experience of 100+ years in

the financial services industry Network of 60 full service branches covering 25 Indian cities/ towns Reputed Research Desk for Fundamental & Technical analysis Structured product offering for HNI & Corporate clients 100,000+ client acquaintances (30,000+ satisfied retail relationships) Over 3000+ channels partners 750+ wealth managers across the country Dedicated ‘PEG & PCG Desk’ for servicing HNI clients



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Exclusive ‘Corporate Advisory Desk’ catering to key corporate clients

Management View: The opportunity to interact with the management threw a lot of light on the Vision & Mission set to be achieved. There is profound consistency in the minds of the top management about goals set to be achieved.

My knowledge about Way2Wealth, was limited to the Regional Office at Nariman Point. The interaction with the top management gave me a great insight on not only the minds of the employees but the management as well.

It was difficult for me to ignore the tremendous energy and passion the management team carries & inspires. It does reflect volumes on the results anticipated by the visionary who brought them together.

The top management is endowed with an inner strength, agility, clarity of thought and the ability to know & do as in the mind of other team members. Their age in years brings in the energy & flamboyance, while their years in experience not only brings in but reflects their expertise, for the position they hold.

Above that, there is an increasing level of transparency along with the re-freshed systems/ processes which are being put into place, gradually.

Where, Mr. Shashi Bhushan, knows his target and hits it with precision; Mr.Sunil Ramrakhiani is an expert with the inner intricacies of the business supplemented with his tacit inspection of the external environment. Where Mr. Hutaib Bandukwala is manoeuvring the messages sent out of the organization to suit & reach the desired goals; Mr. Gentil Augustine & his HR team is proficient in understanding & building the real strength of Way2Wealth – Human Resource, nullifying the negative impact of the restructuring; together building a team and setting in a more dynamic work-culture.



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Our Key Offices Registered Office Corporate Office

Raheja Paramount,138, Residency Road,Bangalore – 560025KarnatakaIndiaPh: (080) 2212 1512

4072-75, 4th Floor, B-Wing, Oberoi Gardens Estate,Off. Chandivli Farms Road,Chandivli, Andheri (E).Mumbai - 400 072.Ph : (022) - 4084 3900.

External Environment Analysis



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International Players



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Established with a core purpose to help everyone be financially fit, such powerful words come from one of the most popular online trading portals - Charles Schwab. For the market frequenters it is no new name.

Headquartered in San Francisco, Charles Schwab and Co., Inc. was launched in 1973 and began offering discount brokerage on May 1, 1975. The Charles Schwab Corporation was incorporated in 1986 and conducted its initial public offering in 1987.

The Charles Schwab Corporation provides securities brokerage and financial services to individual investors and the independent investment advisors who work with them.

It boasts of a client account of 7.2 million client brokerage accounts, 1.3 million corporate retirement plan participants & 344,000 banking accounts.

CORPORATE STRUCTURE

Through its operating subsidiaries, The Charles Schwab Corporation (Nasdaq:SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent financial advisors.



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The corporation includes three primary business segments:

Schwab Investor Services

serves millions of individual investors, savers and borrowers

through the schwab.com website, phone services

and more than 300 U.S. branch offices, plus

international and multicultural services.

Schwab Institutional provides custodial,

operational and trading services for more than 5,000 independent

investment advisors.

Schwab Corporate & Retirement Services administers retirement

plans, equity compensation plans and

other services for companies of all sizes.

HEAD QUARTERS

Schwab Corporate Headquarters 101 Montgomery StreetSan Francisco, CA 94104

BUSINESSES

Charles Schwab offers financial products and services tailored to fit the needs of individual investors, independent investment advisors and companies of all sizes.

For Individuals and FamiliesInvesting: Clients with a Schwab One® brokerage account can trade stocks, bonds, options, mutual funds and other securities.Advice & Consultations: Either at a local branch or through our toll-free phone line, investors can receive fact-based guidance from an experienced Schwab investment professional

For EmployersSchwab helps companies of all sizes manage their retirement plans, stock plans and executive services.



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1 2 3

http://corporateservices.schwab.com/default.html

http://www.schwab.com/public/schwab/planning

http://www.aboutschwab.com/about/facts/corp-retirement-services.html

http://www.aboutschwab.com/about/facts/corp-retirement-services.html

http://www.aboutschwab.com/about/facts/schwab-institutional.html

http://www.aboutschwab.com/about/facts/investor-services.html

http://www.aboutschwab.com/about/facts/investor-services.html

Banking & Lending:Schwab Bank offers the High Yield Investor Checking bank account plus credit cards and other lending products.5

Millions of people worldwide rely on E*trade for an unbeatable combination of value, Ease & security. It is a pioneer in online financial services for 25 years. Over 4.8 million accounts in 40+ countries. $174 billion in customer assets.

E*TRADE FINANCIAL Corporate Services helps stock plan professionals navigate the challenges of plan administration and compliance, while helping employees understand and access their stock benefits. That's why over 2,000 companies—including half the S&P 500 and one-third of the Fortune 1000—rely on us to manage stock plans for more than a million employees in over 100 countries.

Their other businesses include, Banking, Global Trading (6 markets& local currencies, stock plan outsourcing (Full-service administration of company stock plans.), equity edge (Powerful and flexible software for stock plan administration, 5 ¹ Charles Schwab & Co., Inc. and Charles Schwab Bank are separate but affiliated companies and wholly owned subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products and services are offered by Schwab Bank, Member FDIC and an Equal Housing Lender.



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http://www.schwab.com/public/schwab/banking_lending

compliance, and reporting) and employee stock plans service (Easy-to-use transaction service that empowers your employees to take control of their stock plan benefits).

Their products & services include:

Full-Service Stock Plan Outsourcing

Our stock plan outsourcing group provides a total solution for companies seeking a trusted business partner to handle plan administration. Our team of equity compensation experts manages everything from basic option grants and restricted stock awards to more complex requirements like swaps and dividend reinvestment plans.

Powerful Software for Stock Plan Administrators

Equity Edge® is our advanced stock plan management and reporting software that gives you maximum control over your company's equity compensation program. Designed to work with your existing HR and payroll systems, Equity Edge offers the power and flexibility you need to manage stock options, stock purchase plans, restricted stock, stock valuation, and insider reporting.

Flexibility and Choice for Employees Worldwide

Our employee stock plans service gives your employees everything they need to view their stock plan accounts, exercise options, and sell shares. Employees can manage their stock benefits and make transactions online, via a toll-free automated phone system, or by calling an expert financial service associate. And we offer exclusive savings on banking, brokerage, and lending services via our Advantage@Work program.

Premium Service for Officers, Insiders & Executives



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https://us.etrade.com/e/t/corporateservices/aw

https://us.etrade.com/e/t/corporateservices/esp

https://us.etrade.com/e/t/corporateservices/eedge

https://us.etrade.com/e/t/corporateservices/os

Our executive services program is designed to meet the special needs of officers, insiders, directors, and other executive employees. An elite team of senior brokers and relationship managers provides personalized, expedited support for trades, transfers, and other transactions, as well as handling inquiries related to Section 16, Rule 144, and other complex regulations.

Professional Services That Maximize ROI

Our professional services organization offers a range of technical and professional services that help you get the most out of your stock plan solution.

Innovative Solutions for Pre-IPO Companies

We offer an emerging companies program to address the unique challenges of stock plan administration at privately held, pre-IPO companies.



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https://us.etrade.com/e/t/corporateservices/emer

https://us.etrade.com/e/t/corporateservices/consulting

https://us.etrade.com/e/t/corporateservices/execsvcs

Indian Competitive Scenario (Players)

ANGEL GROUP COMPANIES

Angel Broking Ltd. (1997)Member on the BSE and Depository Participant with CDSL

Angel Capital & Debt Market Ltd. (1998)

Membership on the NSE Cash and Futures & Options Segment

Angel Commodities Broking Member on the NCDEX & MCX



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Ltd. (2004)

Angel Securities Ltd. Member on the BSE

Incorporated in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a depository participant with CDSL. It commenced services like PMS, Mutual Funds & IPOs in 2006

Angel emphasizes its customer-oriented innovative solutions in form of focused research or state of the art technology or customized product offering or personalized touch to our services. Angel also claims to be the only 100% retail stock broking house offering a gamut of retail centric services like,

Ebroking Commodities Trading Investment Advisory IPO Portfolio Management

Services Private Client Groups

Wealth Management Services Depository Services

It emphasizes its self as a retail financial service provider.

ONLINE TRADING

Angel offers four platforms for trading, namely:

OTHER RECENT FEATURE(S) PROVIDED ARE:M-Connect

Access Market News / Analyses 24x7 on Mobile



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Angel Trade Angel Diet Angel Anywhere

Angel Investor

Angel Clients will have the advantage to access their Back-Office data on Mobile Phone

Real time Equity, F&O, Commodities and Mutual Funds rates on a single platform.

User-friendly interface for easy navigation Stock Updates and Market Stats on your Mobile Set Watchlist for Equity, F/O and Commodity and track your favorite stocks. Easy & free to download View Top 10 Local and Global indices

They are a company with 20 years of business experience. Their promoter & Chairman, Mr. Asit C. Mehta, has over 25 years of business experience in the finance industry. Their promoter & Managing Director, Mrs. Deena A. Mehta, has a hands-on experience and had also been associated with various reforms process initiated by SEBI, BSE & several institutions related to capital markets.



57

The biggest strength of the group is to convert business vision and investor service ideas into technological solutions delivered to the investor service ideas into technological solutions delivered to the investors through a private VSAT network. It has a network of over 300 professionals.

Asit C Mehta Investment Intermediates Ltd, has a complete array of products. Trading is possible on both national level exchanges, vis BSE & NSE, in cash as well as derivatives. Offline trading through their authorized Business Associates, Online trading through their web page investmentz.com. Alternative avenues of investing are IPOs. They can also apply for the same on behalf of the client. They also provide advisory services through their group company Nucleus Netsoft & GIS (India) Ltd., which is a SEBI approved portfolio manager.

They also have a membership with NCDEX & MCX. They provide investment assistance to NRI’s as well.

Ever since its inception in the year 1994, BONANZA, has been at the helm of providing its clients the finest investment & financial service. Today, they serve more than 1,00,000 clients comprising of Financial Institutions, Corporates, Mutual Funds, HNI & Retail Investors. Their network comprises over 550 business locations spread across 260 cities in India.

Their product/ service range includes:1. E-broking



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2. Distribution3. PMS4. Depository Services5. Brokerage Services – Equities, Deivatives, Commodities6. Mutual Funds7. IPO8. Insurance

Dawnay Day AV is an innovative financial services provider and advisory firm, formed through a joint venture between Dawnay, Day International and Alok Vajpeyi.

With an unrelenting focus on our twin values of Integrity and “Client First" Policy, Dawnay Day AV provides advisory services to individuals and institutional clients in India and abroad.

Dawnay, Day was originally established as an issuing house in 1928 in London, England. Dawnay, Day was acquired by its current owners, Guy Naggar and Peter



59

Klimt in the early 1980’s. Currently, The Dawnay, Day Group conducts business in three broad spheres of operation - Property Investments, Principal Investments and Financial Services. The Firm has gross assets in excess $4 billion and a net worth that is greater than $1.5 billion.

The Firm’s jointly owned Financial Services companies include corporate and structured finance companies, asset management companies, securities brokerage companies, and property-related advisory services.

Working through our subsidiary companies and affiliates, we deliver high-quality, specialized investment and advisory services to individuals and institutional clients in Europe, Middle East, and India.

Dawnay Day AV Securities Private Limited is a full-service financial services provider and advisory firm. Their other offerings include:

1) Equity, 2) Online trading portal, 3) Derivative, 4) Private equity, 5) Depository & Trading account, 6) Real estate, 7) Advisory, 8) Insurance, and 9) NRI Clients 10) Cor

porate finance11) FII

Incorporated in 1987, Geojit is one of the major stock broker based in India. Geojit provide stock trading at NSE and BSE stock exchanges. Geojit provide it's Stock Broker Services through a strong network of around 300 branches and its state of art online trading portal. Geojit also provides a Call & Trade facility.



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They are a prominent name in Kerala. Geojit is a stock market listed company and its stock are traded at NSE (GEOJIT) and BSE (532285).They offer trading in both NSE & BSE.

They offer 3 trading platforms to customers, namely, Silver, Gold & Platinum.

The other products the deal in are:

1. Equity2. Derivatives3. Commodity4. Portfolio Management Services5. Distribution6. Margin Funding7. Mutual Funds8. Wealth Management Services9. Banking

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors.

HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment.

Their Other Offerings are:



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1) Online Trading for Indian Residents & NRIs2) Banking3) IPOs4) Equity 5) Derivatives

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.

Their core business is banking, which it is able to leverage to its benefit when it comes to

client acquisition.

They also offer trading in internal markets. They only provide a web-based platform.



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Using ICICIDirect, one can investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard.

Apart from this, the other services they offer are 1) Mutual Funds, 2) Personal Finance3) Banking4) Depository Service5) E-Broking6) Foreign Markets Investment

Idbipaisabuilder.in is a multi purpose online stock trading website from IDBI Capital Market Services Ltd., a leading provider of financial services in India and is a 100% subsidiary of Industrial Development Bank of India (IDBI).



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http://idbicapital.com/



Idbipaisabuilder.in allows investing in equity shares, derivatives (futures & options) mutual funds & IPO's in India Stock Markets. You can buy or sell securities on NSE and BSE Stock exchanges.Like ICICIDirect, they too are into banking, and are able to provide a in-house 3-in-1 account.

Their other core service is banking.

IL&FS Investsmart Limited (IIL) is one of India’s leading financial services organizations providing individuals and corporates with customised financial management solutions. They are into institutional as well as retail business, one of the financial multiplexes in India. They enjoy a pan-India presence of over 300 offices. It was taken over by E*Trade, now entirely under HSBC.



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http://www.investsmartindia.com/ilfs-webapp/OnlineTrading/TradingPlatforms/TradingPlatform.jsp

Retail offerings of IIL seek to cover all financial planning requirements of individuals, which include providing personalised investment management services including planning, advisory, execution and monitoring of the full range of investment services. Broadly the retail services are divided into two broad categories.

Advisory Services: Portfolio Management Services, Mutual Funds, Insurance.

Trading Services: Equities, Derivatives, Commodities, IPOs

Their Institutional services can be broadly categorised as follows: Merchant Banking - They offer financial advisory and capital-raising

services to corporates. They also manage IPOs, Follow-on offerings, Open Offers, Mergers, etc, IIL’s Merchant Banking business has been growing from strength-to-strength.

Institutional Equity & Debt - They are presently empanelled with more than 100 institutions and service customers across geographies

A latest offering by them would be to trade in the US Markets, using E*Trade as the base.

Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance.

With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered



65

Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.”

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, GoI bonds 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



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http://www.5paisa.com/

The company has a network of 596 branches spread across 345 cities and towns. It has more than 500,000 customers.

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, was set up in 1994. Kotak Securities is a corporate member of both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, Kotak Securities is one of the largest

broking houses in India with wide geographical reach.

Kotak securities online trading, is the online trading portal of the Kotak Securities Ltd, the leading stock broking house of India. The online division of Kotak



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Securities Limited provides services like internet broking services, online IPO and mutual fund investments.

Concentrated more on the HNI segment, they offer different accounts like Kotak Gateway, Kotak Privilege Circle, Kotak High Trader, Kotak Freeway, Kotak Flat & Kotak Assist.

Some other offerings of Kotak are:1) Banking 2) Car finance 3) International business 4) Credit cards 5) Securities 6) Private equity7) Life insurance 8) Institutional

equities 9) Realty fund

10) Mutual funds 11) Investment banking

MajorGainz is the online venture of Prabhudas Lilladher (PL) Pvt. Ltd., a stock broking house since 1944.

They have a network presence in 7 states of India, namely, Gujrat, Maharashtra, Delhi, Kerela, Madhya Pradesh, Tamil Nadu & West Bengal



68

The platform provides access to all the information regarding Trades, F&O Open Positions, Margins and Exposures and Demat Holdings with PL. There is also a facility to make a Fund Transfer into your trading account via ICICI Bank, HDFC Bank or UTI Bank payment gateways. One can also get Technical & Fundamental calls and access to Company Snapshot.

Other offerings are:1) E-broking2) Equity3) Derivatives4) Commodity5) PMS6) Mutual Funds7) IPOs

Motilal Oswal Financial Services is a well diversified financial services group having businesses in securities, commodities, investment banking and venture capital. It has over 1430 business locations and more than 4,61,699 customers in over 430 cities, handling wealth creation and wealth management needs.

Motilal Oswal Financial Services Ltd., consists of four companies.

Motilal Oswal Investment Advisors Pvt. Ltd. is the Investment Banking arm



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

with collective experience of over 100 years in investment banking/corporate banking and advisory services

Motilal Oswal Commodities Broker (P) Ltd. has been providing commodity trading facilities and related products and services since 2004.

Motilal Oswal Venture Capital Advisors Private Limited has launched the India Business Excellence Fund (IBEF), a US$100 mn India focused Private Equity Fund.

Motilal Oswal Securities Ltd. (MOSt) is a leading research and advisory based stock broking house of India, with a dominant position in both institutional equities and wealth management. Our services include equities, derivatives, e-broking, portfolio management, mutual funds, commodities, IPOs and depository services.

Their institutional business unit has relationships with almost all leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore.

The retail business unit provides equity investment solutions to more than 4,61,699 investors through over 1430 Business locations spanning over 430 cities. These solutions are provided by a force of over 2000 employees and over 808 Business Associates. They provide advice-based broking (equities and derivatives), portfolio management services (PMS), e-Broking, depository services, commodities trading, IPO and mutual fund investment advisory services.

A world of intelligent investing

Incorporated in 1993, Networth Stock Broking Limited (NSBL) is one of the major stock brokers in India. Networth offers premium financial services and information. NSBL is a member of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).



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http://www.motilaloswal.com/Content.aspx?ReportID=0C2B2131-A6CA-444E-A7A3-C641AFEFB554

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

http://www.motilaloswal.com/Commodity

NSBL provide the retail broking services all over the India, Middle East, Europe and America. NSBL has 156 branches across the India. They are growing exponentially because of their strong support; technology drives operations, research team and network of experts. Online trading is one of the important platform provided by NSDL.

Other services offered are:1) Equities, 2) Commodities, 3) Depository services, 4) Wealth management, 5) Portfolio management, 6) IPO, 7) Mutual Funds, 8) NGRIP (Networth Group Interactive Portal)

Reliance Money (or RelianceMoney.com) is the financial services division of the Anil Dhirubhai Ambani Group promoted Reliance Capital Limited.

The Reliance Money stock trading websites uses special security features 'Security Token', which makes you online trading experience more secure without complexity.



71

Investment options are available in 1. Equity (Stock) Trading 2. Derivatives Trading3. Forex Trading 4. Commodity Trading 5. IPO's 6. Mutual Funds 7. Insurance

It offers Single- Window Access - Through Reliance Money's associates, you can transact in Equity, Equity & Commodity Derivatives, Offshore Investments, Mutual Funds, IPOs, Life Insurance, General Insurance, Money Transfer, Money Changing and Credit Cards, amongst others.

Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product and service provider company. The Religare word came from, it's a Latin word meaning 'to bind together'.

Religare provides its service in three different segments including Retail, Wealth management and the Institutional spectrum. It offers wide range of services including equities, commodities, insurance broking, wealth advisory, portfolio



72

management services, personal finance services, Investment banking and institutional broking services. Religare retail network spreads across more than 900 locations across more than 300 cities and towns in India.

Religare Securities Limited is a subsidiary company of Religare Enterprises Ltd and involve in equity related services include online trading at BSE and NSE, Derivatives, commodities, IPO, Mutual fund, Investment banking and institutional broking services.

It offers 3 trading platforms, namely, Race Basic, Race Lite, Race Pro. The brokerage is charged according to the account selected, viz Classic account, freedom account & trump account.

Religare gives interest on unutilized cash when investor is waiting to make next trade or online investment.

Other services offered are:1) Equities 2) Wealth management3) Commodities 4) Investment banking 5) Mutual Funds 6) Metal Markets7) Insurance

Sharekhan.com is a website through which one can trade in shares/ invest in a completely hasslefree and paperless manner. It comes with a unique 2-in-1 account that integrates your, Demat and broking / investment accounts. It is one of the most popular names in share trading industry.



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http://sharekhan.com/

It offers two types of accounts, namely, Classic Account & a speed trade account. In the latter trade tiger gets activated just when the customer is able to generate a brokerage of over a particular amount. If the amount is not generated in a particular quarter, the software gets de-activated.

One can trade in IPO’s, Cash & Derivates with the help of Sharekhan.

Incorporated in 1994 by Unit Trust of India, UTI Securities Ltd (UTISEL) has grown from an institutional brokerage house to a full-fledged financial intermediary having nationwide presence in major cities with branches and franchisees to service a wide range of clients.

UTI Securities Ltd (UTISEL) is one of the major stock brokers in India. UTI Securities offer stock trading at NSE and BSE stock exchanges. UTI Securities provide it's Stock



74

Broker Services through a strong network and premium financial services and information.

Trading is possible in BSE and NSE via the web page www.usectrade.com

Their other offerings include:1) Mutual Funds2) Banking3) IPOs



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http://www.usectrade.com/

Cross-Sectional Analysis

CNBC-TV18, one of India's leading business news channels, is a joint venture of CNBC and Television Eighteen India Limited (TV18). CNBC Asia holds a tiny strategic equity stake in the Indian company TV18 which is listed on the Bombay Stock Exchange and the National Stock Exchange of India.



76

http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/TV18

http://en.wikipedia.org/wiki/CNBC_Asia

http://en.wikipedia.org/wiki/TV18

http://en.wikipedia.org/wiki/Television_Eighteen

http://en.wikipedia.org/wiki/CNBC

http://en.wikipedia.org/wiki/News_channels

The channel's benchmark coverage extends from corporate news, financial markets coverage, expert perspective on investing and management to industry verticals and beyond. CNBC-TV18 has been constantly innovating with new genres of programming that helps make business more relevant to different constituencies across India.

Moneycontrol.com serves as the online avataar of CNBC-TV18 content.

Power Your Trade (PYT) is one of the latest offerings, which is a newsletter-cum-market report on the same. These reports are charged for. Within a week, it has managed to grab a large audience for the same. They have a 7-day trial period, beyond which they charge for the PYT copy.

Apart from that, they also control the moneybhai.com, the virtual stock trading portal. It is one of the most popular portals amongst the potential investors, wherein they can learn to trade.

MoneyControl is also turning out to be a favourite spot for training in terms of online school, namely Pehla Kadam. This venture is partnered with Reliance Money.

From providing news, to training people, to entering advisory, there are chances, wherein it could even offer online trading to the clients.

Thus, threat is no longer from the existing or similar natured agencies, but from cross sectional agencies as well.

Whatever the market anticipation may be, but this is one player, which needs to be watched with caution, by all industry players. It has all the necessary finances to wash-out the market and change the rules of the game. Also their brand value is rising. Their media penetration and partnering networks make it a strong competitor to deal with.



77

http://www.moneycontrol.com/

Like its six feathered peacock in primary colours with its head towards the right indicates the diversity of the CNBC programme offering and its futuristic attitude, it is time till we judge its next dance in the rains.



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Marketing Branding &

Communications Plan

3.2.3 A. PRE-LAUNCH ACTIVITIES

After undertaken a brief market player analysis, I moved to work on the MARKETING, BRANDING, & COMMUNICATIONS PLAN for the online trading product. The first phase of it included the suggesting of a brand name for the product. (refer annex for names)

Amidst all this I even interacted with a 10 – 15 people for an impromptu session on online trading. This was enhanced by the interaction with the in-house employees &



79

the top management as well, which helped me determine the product features, planning in relation to the organizational key strengths and weaknesses.

From then onwards, the concentration was on the pre-launch activities, the dominant activity of my entire project. All the activities undertaken in the Pre-Launch activities were running parallel/ simultaneously.

i Stock Market Liberalizations in the South Asian Region by Fazal Husain and Abdul QayyumTP

ii Dividing Online and Offline: A Case Study Ginger Zhe Jin University of Maryland and NBER & Andrew Kato, Bureau of Labor Statistics June 19, 2006

iii The Geography of Trade on eBay by MercadoLibre Ali Hortaçsu, University of Chicago and NBER & F. Asís Martínez-Jerez, Harvard Business School & Jason Douglas. September 2006

iv Online Broker Investors: Demographic Information, Investment Strategy, Portfolio Positions, and Trading Activity by Markus Glaser_October 1, 2003

v Why Inexperienced Investors Do Not Learn:They Don't Know Their Past Portfolio Performance by Markus Glaser and Martin Weber

vi Marketing Management - Kotler



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I. ADVERTISING PLANNING

The first activity undertaken was the advertising planning. I got in touch with MSN/ NDTV, Google, Rediff, MoneyControl & Chittorgarh for the same.

My mentor suggested I understand the nature of advertising variables by asking the queries to the agency representatives and then put up our needs for advertising.

Post telephonic briefing, they sent us a proposal. It would take about 2 – 3 rounds of interactions, during which I even availed their brochure, the nature of their web

5.2 Books & Other physical sources of Information

The brochures and procedure guideline books by different service providers.

Demo Cds for ICICI Direct & Sharekhan Marketing Management – Phillip Kotler (12e & Millenium Edition) Prentice

Hall E-Commerce – Strategy, Technologies & Application – David Whiteley

published by Tata McGraw-Hill. Research Methods for Business Students – 2nd Edition by Mark Saunders,

Philip Lewis & Adrian Thornhill published by Financial Times, Prentice Hall Marketing Research an applied Orientation – 4th edition by Naresh

Malhotra published by Pearson Education

Apart from these, newspaper articles published online were of great help.



81

formats available for advertising, duration, rate-card, sponsorship plans based on impressions, time-band, or CPC (Cost Per Click).

The discussions with my mentor after each of these interactions, helped me understand how close or far I was going from a particular activity or need of the hour, based on which, I could revert back to the agency and ask for the necessary explanation or details on the same.

5.3 Other Online Source:1. 5paisa.com2. Angeltrade.com3. Adwords.com4. Bonanzaonline.com5. Chittorgarh.com6. Dawnaydayavsecurities.com7. Geojit.com



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Based on all the proposals received, a comparison chart was made and mailed to the management for the final analysis. My skill was limited up to compiling the required data, but under the coaching of my mentor, I was able to make a better comparison, as to be presented to the management.

Another important learning came in the form of a briefing session to moneycontrol.com by my mentor. The skill there was not just about how to brief the

8. Google.com9. Hdfcsecurities.com10.Icicidirect.com11.Idbipaisebuilder.com12.Indiabulls.com13.Investmentz.com14.Investsmartindia.com15.Investopedia.com 16.Kotaksecurities.com17.Majorgainz.com18.Motilaloswal.com19.Moneycontrol.com20.Moneybhai.com21.MSN.com22.Networthstock.com or Clicknetworthstock.com23.Plindia.com24.Rediff.com25.Religareonline.com 26.Reliancemoney.com27.Sharekhan.com28.Usectrade.com29.Wikipedia.com30.Yahoo.com

6. AppendicesAngel Advertising25. MSN Proposal W2W MSN2. Angel Derivative Margin26. Name Suggestions3. Angel Flier27. Networthstock Brochure4. Charles



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agency, but to cross verify on the other facts related to the organization. The learning was implicit, was a good one.

Schwab28. Newspaper - W2W5. Chittorgarh Rate Card29. Non-Individual KYC6. Competitive Market Analysis30. PehlaKadam – MoneyControl7. E*Trade Brochure31. Power Your Trade8. Etrade Account Opening Form32. Rediff Rate Card9. Final Adv Budget33. Reliance Pre-Paid Plan10. Flier - W2W34. Religare Media11. General Survey35. Religare Logos12. Geojit36. Response Center Scope13. Google Adwords37. Results Page14. Google Adwords 238. ShareKhan Account Opening15. HDFC Value Account39. SMS-MoneyControl16. ICICIDirect Plan40. SSKI Essentials17. IDBI PaisaBuilder Plan41. UTI Account Opening18. Individual KYC42. UTI Plan 19. Kotak Plan43. UTI Transmission 20. Kotak Press Clipping44. W2W Verticals 21. Mini-Nifty45. Welcome Letter-W2W 22. MoneyBhai Advertisement46. Completion LetterMotilalOswal Advertisement47. Reference Note 24. MSN Proposal W2W Hotmail



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MSNMicrosoft Advertising is a business-to-business brand, representing the entire portfolio of extended media, consumer touch points and technology solutions.

Investing in the acquisitions, technology and training as well they represent themselves as “One singular brand to represent all that we do for you, our customers - advertisers and publishers.”

NDTV India is the exclusive sales partner for the web portal MSN India. They present themselves as means to by offering multiple target points to their

They offer formats on their web page on time-band. While for Windows Live Hotmail it is available on impressions for the particular target audience.

MSN would not charge us for creating the content for the advertisements. They do not charge for creative work.

They have various partnering channels via which advertising can be undertaken either on Windows Live Hotmail or MSN India (along with the channels available on the same – finance, real estate etc)



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They offer options like impressions, time-band, mailers, along with a variety of options and combinations on Hotmail pages & Messenger. The MSN proposal was not submitted or included in the final plan as there was a discrepancy between two parameters, which was not clear. (refer annex)

Space on Google is available on impressions as well as Cost-Per-Click basis. The charges vary according to the pre-paid or post paid account. One can open an ‘adwords’ account and manage their account by themselves.

The office in-charge for the advertisement related queries is at Hyderabad, while their marketing office is located in Mumbai.

One can either go online and create an account for the same, or get in touch with an intermediary for the same.

A fixed tenure contract can be undertaken with an agency working on behalf on Google for a lump sum pre-decided amount. With an intermediary agency, one pays more considering that the account is valid only for a fixed tenure.

If you choose to manage your own account, one can do it on a lifetime basis, without paying any additional costs. There are limitations with respect to the nature of content but large reach & cost-efficient. Online account is easy to use, but needs a constant tab on the same. The flexible payment options make it an interesting option. Refer annex for the proposals.



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https://adwords.google.com/select/home%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

Rediff is a giant in the online industry. The formats offered by Rediff are Impressions, P4C, mailers, sponsorships etc.

Their tariff card is revised every 3 months. So the maximum duration up to which they enter into contract is the same.

Two different proposals were obtained from Rediff. One was specifically on P4C, while the other included a combination of various formats. The P4C proposal was received prior to my joining.

A user can subscribe online as well for the P4C account, but on comparison the offline contract obtained is more cost-efficient than subscribing online. The unique feature offered in their mailers is Open-Mailers i.e. they will shoot mailers to the target audience group till the decided number of mailers are opened, not just dropped in the inbox.

Later a rate-card too was procured to understand the nature of formats better.

They charge for creative works development is charged. Refer Annex.



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It is one of the most widely used pages amongst the investor & trader fraternity. They charge on the time-band and impressions. Like MSN they provide various channels on their page.

A latest development on the same was the Wealth page.

At present they are in the process of re-structuring their web-page to offer better space, and reduce the clutter.

Their offering in terms of formats available is similar to most of the other pages. But it is the target audience which they cater to makes it a very favourable option.

With initial contact, a rate-card was procured from them. Later the representative too had come for a presentation. But after that occasion, there was no further communication from his end.



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This portal caters to a wide range of audience for travel tourism and sorts.

It is also a popular destination amongst the online traders as it provides a brief on the dominant online trading software providers.

It also offers a forum, wherein the investors or traders can raise their grievances or views on those online trading service providers.

The point of contact between the company and us was email via which a rate-card was procured towards the end of my project. By that time, the advertising proposal had been submitted to the top management for their verifications and comments on the same.

A copy of their proposal has been enclosed in the annexure.



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Yahoo is another popular portal for the ‘Finance Page.’ Their advertising options are as follows:

a) Search Marketing: They help in clients searching us, than us following them.

b) Media Solutions: They help promote our brand across the Yahoo! Network and reach a large target audience.

c) Publisher Network: This option is for online publisher or portal where Yahoo! Can add new revenue sources to their page and enhance user experience.

d) Recruitment Advertising: It helps promote branding the company as the employer of choice through recruitment advertising on Yahoo! HotJobs & across Yahoo! Network. It claims to help reach both active & passive candidates to fill the hiring pipeline

Communication efforts were made to connect with the Yahoo Office, but there was poor response, hence no further perusal was made on the same.

The final budget submitted along with the other proposals and brochures is available in the annexure.



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3.2.3.A. II. BROCHURE & FLIER

Even if the truth is that it is the product which matters most at the end of the day, a well made Product Brochure & Flier have a good first impression on a client.

It is an easier said than done activity. It is a platform, which will represent your entire organization & product in the miniscule in depth at the same time.

There are things which are obvious, yet need to be stated, while there are the not so obvious things which need to be highlighted, assuming the prospective reader is a first-timer in the trading business.

In my project, I got a first-hand experience of writing a brochure and working on the layout, color scheme, theme etc. There were drafts and re-drafts, there were so many obvious things, which had to be included apart from the other highlights.

Even though it didn’t materialize as expected, towards the end it was decided that an agency will be hired for the same, but the experience was worth it.



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3.2.3.A. III. POWER POINT PRESENTATION

A PPT is essential in the techno-savy environment to communicate with the audience. The multimedia format makes it an innovative way of presenting the product & services.

At this point, even though the product features are not decided, a rough presentation was made on the Online Trading Product, with the minimalistic features expected/ required in a trading product (for Corporate Communication)

One of the best means to use the presentation is to upload it online and make available to the large number of participants who would like to go through it.

Assistance in terms of content & material was provided by my mentor. Also my colleague, a creative team member helped me by creating the necessary pictures/ formats for me, not only for the brochure/ flier but also the power point presentation.



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3.2.3. B WEB PAGE

The web page today is the first impression to the customer/ client about the image of the company. It may not be held against the service provider but preferred if the web page is supported with all the necessary information. Apart from that, if a web page is well made, it saves on many other costs incurred for set-ups like customer care centres for the same.

3.2.3. B. I. FEATURES ON THE WEB PAGE

It was interesting to note the variety of layouts for web-pages on the competitors’ pages. Some of the features were standard, but some pages made it easy to understand and locate, while some made the entire process complicated.

Some of the pages were very simple and basic but served the purpose, while some were very glossy & stylised but would not provide the necessary information.

Since the online trading portal was to be a part the main Way2Wealth home page, I got an opportunity to understand the other products of Way2Wealth in the process.

The extent to which, I was able to use the information is very limited compared to the amount received.

The list of suggested features/ components on the web page is listed in the Result sheet. A brief layout of some of the features I listed is available on the comparison sheet attached for each in the annexure.



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3.2.3. B. II. WEB CONTENT MANAGEMENT

For the web portal, data was collected from various online sources as well as offline sources. A compilation online school was made, which included the ‘W’s & H’ related to online trading and the products (submitted to the organization)

To get a better understanding on the subject, I was provided in-house guidance by one of the Branch Managers, wherein I was explained the entire spectrum of investments – broadly put as financial & non-financial options (bonds, mutual funds, insurance, bank deposits etc).

Equipped with a better understanding on the nature of products, I made an online knowledge centre (recommendation) including glossary, online learning, FAQ along with a recommendation of sections on book review & trivia.

It was not possible for me to edit and re-work the content to be immediately uploaded, but the content was organised wherein a specialist can work on the language aspects of it. The module helped me ingrain the entire investment business process even better than earlier.



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3.2.3. C. I. OTHER OPTIONS EXPLORED – MOCK TRADING GAMES

The other option, which was explored during the project, was of Online Trading Game, something similar to that of moneybhai.com.

An idea of having a dummy game to train individuals and use our channel partner, Café Coffee Day, as the channel to reach the audience was explored. For the same, we got in touch with various games developers. Some of them were game developers for mobile phone, while some for messengers and others.

The agencies we got in touch with for the same were:

a) Synapse India – we had gotten in touch with Synapse via the internet search. Using email as the communication channel, we had a decision made on the nature of features we look for a real-time game. The reason it would not work out for us was the time duration and the finances involved

b) Rapid Soft Technologies – we had got in touch with them via the internet search. A note was left on their feedback form. They connected with us on one occasion and then for over 15 days there was no contact. By the time the third connection was made, we had already sacked the idea of developing a new game.



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http://www.synapseindia.com/%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

http://www.rapidsofttechnologies.com/%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

c) Software Developers India – was another agency we got in touch with. They were initially planning to charge us on per person employed basis. A negotiation was made on the same, wherein I asked for her offer depending on the basic product (irrespective of the number of people she employs) on a lumpsum basis and state the basic features. Beyond that any new addition would be charged. Similar to that of Toyota Innova, wherein there is a charge for a basic version, as you add more and more features, the charges would increase. We received a proposal on the same, but had to scrap it as the costs and time involved were very high.

d) MSN – A proposal from MSN gaming was also invited, but the game would have been limited upto MSN Messenger & also the rights would be kept with them and not with us. It was certainly not a viable option, hence it was not ventured further.

e) Artha Technologies – They too were contacted for the same, but mid way again we had to abandon it as we wanted a ready made product than developing one.

f) Other Online Web Sites – We tried to locate if the mock trading software already developed would be available for sale. But since it had consumed a lot of time and energy, also that we were unable to reach the right source, we put the idea on a back burner.

g) India Games Ltd – They are game makers for mobile phones, we could not pursue it as an option as we were not looking at phone games. They had a partnering with the leading service providers, which could be used to spread the game faster than creating a physical set-up in our existing channels.

Some other agencies to which contact was made but could not be pursued were Trine Game Studios, NextWave Multimedia Pvt Ltd, Classic Informatics,



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This part of the project helped me negotiate variables on the basis of which negotiation can take place for technology products. Even though the idea was not pursued further, it was a good learning.

3.2.3. D. POST ACCOUNT OPENING

3.2.3. D. I. WELCOME LETTER

The broad outline for the letter was provided by my mentor, on which I worked. I learnt the necessary details required for an online trading account. The information is stated for efficient & direct use of the client. It holds all the necessary details in relation to the account of the customer.

A copy of the recommended letter is enclosed in the annexure.

3.2.3. D. II. CUSTOMER SERVICE GUIDELINES & SCRIPT FOR TELE-CALLERS

This was another interesting aspect of my project, which brings my activities to an end. A broad reference pointer was provided by my mentor as to how is a customer service guideline & script for telecallers broadly structured. I was introduced to existing copy of a rough draft, on which I was allowed to make recommendations, in the form of changes.

On an overall it was an exhaustive & enjoyable range of activities, which I was given to undertake during my project.



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4.1 CONCLUSIONS Broadly, the observations can be grouped as in relation to the external industry scenario, internal organization, product features, customer care features, Branding, Marketing & Commusnications (BMC)

External Industry Scenari

o

Internal Organization Factors

Product Feature

s

Product Related

Recommendation

Web Content

Recommendation

Customer Care

Factors

BMC

1) External Industry Scenario – the observations and recommendations are based on the features which seem to dominate/ affect or reflect the industry as a whole.

2) Internal Organization Factors – they are the factors within the organization, which can be manipulated, channelled and controlled (to an extent if not completely) to further the efforts of the organization.

3) Product Features – this is in direct relation to the product offerings. There are certain features which are basic, while there are some features, which if provided would enhance the quality of the entire offering.



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4) Product Related Recommendation – these features do not directly affect the features of the product. But are more in relation to the ancillary offers or provisions.

5) Web Content Recommendation – A good web page has a desired representation of the company image. These recommendations are based on what has been viewed in a variety of pages, to make surfing the Way2Wealth page an even better experience.

6) Customer Care Factors – these are very critical in not only gaining or converting but maintenance and sustenance of the customers.

7) BMC (Branding Marketing & Communications) – it is strategies which are being used in the industry while some can be used suiting our needs & objectives.

4.2 EXTERNAL INDUSTRY SCENARIO

1. ROLE OF LEGACY – years in the industry is often used as a dominant feature to attract attention. The relation to a popular or deeply entrenched pedigree is strategy used to gain customer attention & confidence.

2. EMOTIONAL VS RATIONAL BONDING - There are two ways of luring the client, emotional and rational. Charles Schwab concentrates more on developing emotional bond between the customer and the organization. While E-Trade focuses on the rational aspects like superior technology.

3. CLIENT-CENTRIC FOCUS – All the companies are over & over stating the importance of client focus, and their facilities for the same. Everyone says the same thing, but it is evident by the actions undertaken for the same.

4. ROLE OF TECHNOLOGY – The role of state-of-art technology is an one-up for the provider. Technology is not just about providing the best, but also making the entire process easier for the customer to use. The industry standard in the security encryption is 128bit. There has been little change in the same over the years.



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5. INSTITUTIONAL VS RETAIL – where certain organizations are specializing in institutional, most of the players are specializing in retail. Where Institutional caters to organizations on a whole, retails caters to individual needs. Certainly the resources required is higher for the former, but it appears to be a relatively untapped market. Also by partially involving in institutional business/ relations a further push can be provided to the retail business. Reliance has corporate accounts for trading where discounts are provided to individuals belonging to certain organizations. This feature can be used to help create similar relations in the industry or within our existing clientele. It will also promote specialization to suit a particular category of customers depending on their set of organizations.

6. GEOGRAPHIC PARAMETERS – Geographic proximity appears to be a strong factor for the investors. It appears that it is easier to trust who belongs to your region, understands it better and speaks their language. In reality it is how well one can reach the customers. The physical network of the organization needs to be strengthened. Rather than owning offices, it would be better to promote franchise networks in the deeper parts of the country.

7. PRICE/ COSTS – the plans offered by the organizations reflect on the nature of clients they wish to cater to. Most of the plans fall in line with the law of supply, where more the supply lesser the charges. The account opening charges, services and the plans offered attract the nature of clients one is after. Today, most of the clientele appears to be ready to pay if they derive value out of it. This is more true with the general perception of the mass affluent class, who has the money but not the time and knowledge to undertake investing.

8. ADVISORY SERVICES – Advisory is a core in this business. It is not only about the facts or facts first, but more about the meaning behind the information received and how practically it can be applied. Almost everyone is offering free advisory. But in the current times, it appears, that people believe the information for which they pay is generally good. The concept of ‘No Free Lunches’ is gaining importance in the mind of the investor. Thus, to enhance



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the value of your research, some charges should be levied for it. All the best things come for a price.

9. BRAND AWARENESS – the popularity of your name affects the new client acquisition. Efforts in branding are important. The fastest way to connect is to make the client recall your brand name for the nature of offering either by a brand mascot or a unique symbol representing it.

10. OTHER FINANCIAL SERVICES OFFERED – in the mall culture coming in today, most of the people are looking at one-stop solutions. Most of the people are looking at one corner which caters to all their needs, than going for different services to different vendors.

4.3 INTERNAL ORGANIZATIONAL FACTORS

1. GENERAL INTERNAL FACTORS OF ORGANIZATION – the quality of environment, treatment given to the employees, problem redressal, other benefits offered affect the motivation and performance of the employee. An employee who envisions growth within the organization, will help more actively in the company’s growth. Since Way2Wealth is a growing organization, setting in practices to enhance the same at this stage will make it a formidable force to deal with in the long run.

2. ROLE OF ORGANIZATIONAL LEADERS – The leaders have a major impact on the performance of the team players. A burdened leader will have burdened team members, while a vibrant leader brings in energy into the room.

3. INTERNAL COMMUNICATION – Often the problem arises when the goal clarity is not shared by all members of the organization. The goal is clear in the minds of the top management and there is a consensus on the targets for the same. The



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amount of clarity penetrating or percolating should be verified such that the team moves together than in pieces. A step taken in this regard within the organization is the Empower Board, where every team member can express their opinions without any vertical or horizontal organizational set-up barriers.

4. OFFICE LAYOUT – Even though the products dealt with in a Financial Service providing company are intangible, today, the role of infrastructure involved is increasing. A standardized format not only induces confidence in the customers but helps maintain parity in the privileges/ comforts available between the branches of an organization.

5. WEALTH COMPASS – the potential of Wealth Compass has not been used to the fullest. It can be made livelier and provided in the college libraries for no fee initially. If the language can connect with the student crowd at this stage, it settles in their minds for a long time. Also it is a place, where the visibility will be the highest, at least during examination season. There can be more quizzes and trivia to involve the audience into the real happenings. Apart from that advertisements of own products should be encourage within the magazine. To make the advertisement more valuable, a small fee can be levied on the department. It is a strong tool, which has not been much explored.

6. EMPLOYEE QUALITY/ MORALE – The employee should be motivated to acquire a client. He/ she should not only be equipped to serve the client, but to convert a potential client. The two experiences, which led to a conclusion as such was with ICICIDirect & Networthstock. With ICICI Direct, the concerned person on the line at a branch, told me he is not equipped with the knowledge to serve at the moment, as they have not been provided the training. In the background, they were giggling and more keen to leave the office than addressing the client on the phone. Some thing similar with Geojit Branch at Vashi, where when I asked about the product he gave me a brochure and asked me to call the helpline and take the details, as he is not too sure about them. But later when I asked if about his qualifications, he could not stop talking for the next 10 mins about how he is pressured in life, and how this work ex will show good on his CV. There can be a standard process, which all branches/ franchisees are



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expected to follow, and the best one is awarded a certificate for the same. This has a good reflection on the processes of the organization.

7. EMPLOYEE RELATION WITH THE ORGANIZATION – the level to which an employee feels himself to be a part of the organization, the more he contributes. Emotional bonding is not just with the external customers but within the internal customers as well. This can happen, when the employee knows more about the organization than just his profile. With relation to Way2Wealth, most of the employees are below 1 year of relationship. Thus, the soil is perfect to percolate the seeds of a new legacy.

4.4 PRODUCT FEATURES RECOMMENDATIONS

1. MULTIPLE DEMAT ACCOUNT – Except for ICICI, most of the online trading service providers allow only 1 demat account. It would be an advantage to have more than one account. Schemes can be induced such that more members join in at the same time.

2. MULTIPLE FUND ACCOUNT – Not only linkage to more than one bank account, but the ability to use more than one account simultaneously, as it saves the customer the account details changing time.

3. FUND CONTROL – a feature, wherein, holding and release of funds can be present. If the amount exceeds the set value the transaction cannot be undertaken.



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4. SINGLE SCREEN ACCESS – The instruments in which the trading can be undertaken basically are equity, derivatives, commodities, metal, ipos, insurance, mutual funds, forex etc. Not all the players offer the option in transactions in all of them. Reliance Money is one of the people who offer the same.

5. E-NOTES – the digitally signed electronic contract notes are delivered on the same day, apart from its availability in the online back-office. Physical notes should be provided on request. Charges should be levied for the same, unless the client is generating a very high brokerage. Physical notes can be issued periodically as well.

6. MARKET ANALYSIS – the platform should support by providing technical analysis for the various products.

7. PORTFOLIO LIST – The watch lists created should be able to display most of the instruments in which trading is offered.

8. MARKET WATCH – Multiple market watch lists should be permitted with a good number of scrips per list. The standard offered by most of the players is 20.

9. LIVE ASSISTANCE – there should be online help available for the client, similar to that of an online chat assistant to solve problems for the client.

10.DEMO ACCOUNT – A demo account/ link can be provided so that, at any point he may train himself regarding the functions and use of the account.

11.SECURITY – the password is mandatorily to change after every 14 days. The security key provided by Reliance is one of the best, wherein the external device generates the password, only known to the client.

12.PORTFOLIO MANAGEMENT – Tools should be available on the window, such that the person is able to calculate the value of their portfolio at any point of time. A variety of calculators can be provided to achieve the same. Calculators like



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‘with the current value how much can they borrow or margin?’, ‘value of money in future’, etc can be provided

13.CONSISTENCY BETWEEN WEB PLATFORM & SOFTWARE – The features in terms of the portfolio capacity, news alerts etc should be standard between the software and the web based terminal. Ideally, the variation between the two should be of the execution speed, nothing otherwise.

14.LIVE NEWS – Live news can be ‘bubbled’ or blinked on the page of the user.

15.SPECIFIC SCRIP ALERT – this feature will enable the user to get alerts only for the specific chosen scrips.

16.SCRIP WATCH – Any specific scrips history (for a defined time frame) should be available when selected.

17.AFTER MARKET ORDER – this enables the client to book his own transaction after the market closes or before the market opens.

18.BACK-OFFICE ACCESS – The back-office access should be 24 X 7.

19.MARKETS AVAILABLE FOR TRADING – the number of markets can be increased not only overseas but also other local markets within the country.

4.5 PRODUCT RELATED RECOMMENDATIONS

1. TRIAL PERIOD OFFER – to induce trial, & reflect confidence on our product, a trial period offer is the fastest alternative. No charges should be levied for that particular trial period, after which, if the client continues, charges will be levied. The only charges they pay at the initial stages is the account opening charges.

2. CREDIT CARD – Most of the payments, today are made by the credit card. It is easier than any other format available today. One only needs to punch in the numbers and the payment is made. This avenue was explored but due to technical glitches can not be implemented at present.



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3. DOCUMENTATION PROCESS – the documentation process should be as minimal as possible. The fact that the documents take time to process can make a client move away. To make it faster, forms can be provided online, which can be downloaded and duly filled by the client and sent by the client or collected by the nearest branch/ franchisee.

4. SECURITY/ INSURANCE – a dominant reason why most of the people prefer not to get involved in the stock market is that there is no real security for their money in it. In most of the developed markets, there is risk insurance, bought by the service provider to secure the monetary transaction loss which could occur while the money/ shares move from one account to another. In the Indian context there is no such provision. Another reason, why it could be difficult to directly implement the insurance is that the charges levied in BSE differ from NSE. BSE charges an additional Rupee one on the shares. There can be some alternative, which could be worked out, not directly as insurance, but a type of assurance for the same, where the risk of the investor is reduced.

5. CALCULATORS – linked to your products, to not only showcase but promote your products. The best use of calculators is made by Kotak, wherein at the end of the calculation, they suggest a strategy (their product) to attain the desired results. A range on the same is even available on moneycontrol.com

6. MOBILE USE – today many players are looking at SMS to provide information and tips, Angel, Kotak are one of them. Even Trading can be undertaken by SMS. For this service, there is a letter signed by the individual regarding responsibility for transactions. Refer Annex.



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4.6 WEB PAGE RECOMMENDATIONS

Some of the features observed (recommended) for the web page of Way2Wealth are:

1. RESEARCH ON COMPANIES/ SECTOR SEARCH – This feature is available on some of the leading pages, such that the person can go through the entire history of the listed company in a crux, helping him make a decision accordingly.

2. UPDATE ON WORLD ENTICES & OTHER LOCAL MARKETS – changes in one market affect the other, hence, updates would be of great help.



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3. RISK CALCULATORS – linked to your products, to not only showcase but promote your products. The best use of calculators is made by Kotak, wherein at the end of the calculation, they suggest a strategy (their product) to attain the desired results.

4. PRINT & FONT OPTION – it is a user friendly option, wherein the person can increase the font size of the article printed on screen for easy reading.

5. ONLINE PAN + BSE & NSE CIRCULATIONS – The reason behind trying to provide the same in one place, is that everything relating to markets can be accessed at one place, even if they do not trade by us

6. CURRENCY CONVERTERS

7. SITE MAP – helps provide easy navigation of the webpage.

8. KNOWLEDGE CENTRE – The online knowledge center should include online trading school, FAQ, quiz & trivia, book reviews, glossary in one place.

9. PRODUCT RANGE DISPLAY OF W2W – there is no better place to represent your own products, (not just an advertisement) but as solutions to problems.

10.MEDIA CORNER – The media corner can have a facility namely ‘Invite Journalists’, such that any event update done on the page, will be emailed to them. Also one can access all the recent happenings, in relation to Way2Wealth worth publishing.

11.ONLINE REGISTRATION – This feature can be used by providing a copy of the necessary forms online, which an individual can download. The only task then in hand is to get them collected from the client’s address.

12.FINANCIAL INFORMATION TIE-UP – tie up with agencies specializing in the news eg Reuters, Newswire etc. This will not only help project a better image but help



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widen our base of partnerships, which can be used at a later date. NDTV or UTVi could be a good option as it is an upcoming rival to CNBC-TV18.

13.SUBSCRIPTION ONLINE – Newsletters – Preferably charges should be levied for the same after an initial trial period offer, as good things have a price to pay. The psyche of the customer believes that if they are asked to pay for something, the thing has some value.

14.QUESTION & ANSWER FORUM – this will be an interactive space, where the questions put up by clients or novice can be answered not only by experts but other members. It helps in creating the emotional bonding.

15.WEB EXIT SURVEY – this will help us review our web page and make amendments accordingly.

16. TIPS TO CREATE A GOOD PORTFOLIO

17.ONLINE COMMUNITY – a platform where the clients, franchisee can come together under the wing of Way2Wealth as family members. This enhances emotional bonding, but should be used carefully as it can back fire at a later date.

18.ADDRESSES OF CCD OUTLETS/ CYBER PARTNERS - where they can surf/ trade for lesser charges

19.CONNECT TO WAY2WEALTH – the display of other channels, ways & means by which a person can connect to Way2Wealth for any further query or assistance

4.7 CUSTOMER CARE FACTORS

1. TRAINING TO CUSTOMERS – The means and channels by which the training is provided is a reflector on the company’s customer friendliness. Sharekhan & Reliance Money undertake about an hour of training session at their respective branches for customers to learn more about the product, via demonstrations on the same. Sharekhan goes a step further in this endeavour by providing trading rooms to the customer should he be unable to use the facilities at his



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own residence, or office. Training can also be offered via FAQ, Demo &/or Relationship Managers.

2. HELP LINE – The quality of helpline service available can affect the client acquisition and retention as well. There were lot of instances where when a call was made to the call centre, the person on line only asked for my number and was unable to sort out any query or provide assistance of any kind. Some of the customer care centres where I had called were very quick and confident. The call centre quality reflected on the quality, attitude of the organization towards the customers.

3. FOLLOW UP – the follow up of a potential client is a great determinant of winning the client. The best follow up I experienced during my project was of Angel Broking & Rediff (to check the status of the advertising proposal). It not only makes sure the client remembers you but also that you are valuable to our organization. Even if they mention 2 weeks later it is always a better option to check with them once or twice at least in between the given duration.

4. AFTER-SALES SUPPORT – Though the product sold is not physical, but the attention showered on the client, does have an impact. Keep an existing client waiting for too long while trying to acquire a new client, the old one is lost. Also the new client takes in the impression of the attention showered on the neglected client.

5. FEEDBACK RESPONSE – If the client has a grievance or complaint mailed or registered, at least acknowledge it rather than ignoring it entirely. It improves the situation between the client and the service provider. A better way would be to periodically get in touch with the client via emails or mini surveys, wherein they respond to any grievance, also reflecting you value their association.

4.8 BRANDING MARKETING & COMMUNICATION (BMC)

1. TARGET CLIENT – the target audience for each of the agency is different. The more clearer your target audience, the easier it is to reach it. Also the



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communication plans can be made to serve the interests of the target organization without ignoring the other potential clientele.

2. CORPORATE CLIENTELE/ PARTNERS – Reliance offers certain discounts to clients belonging to organizations they have a relationship with. Something similar can either be developed or if we have corporate HNI clients, we can offer it on an organizational level.

3. CCD AS TERMINAL ROOM – Café Coffee Day outlets can be used for undertaking trading or introducing mock games. This would help acquaint newer people with the concept of trading, while procuring business for them as well.

4. REDEEMABLE COUPONS – Cyber café’s can be partnered in the city, such that they accept redeemable coupons issued by Way2Wealth, and provide internet access to the trader at a lesser cost. The money will be repaid by the company. The best place to make these coupons popular is with the call centers, or when the client joins Way2Wealth. This would also help enhance or reach and network, without investing in real infrastructure.

5. MARKETING & BRANDING STRATEGIES –



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RELIGARE – of all the players, the noteworthy strategy I found was of Religare. They offer benefits to their clients for trading by giving points, which can be redeemed at a later date. Another strategy by them was the IPL series. They offer interest on stocks in the trading account, p.a. Also Religare, has been conducted a deep market research.

SHAREKHAN – It makes sure it is present in the light but undertaking some or the other events. A month back they had an event in Nirmal Lifestyle, Mulund, where they had a small slip, which had a quiz. The respondent is supposed to answer those questions and fill in their details. The winner would be given an ipods. Surely, they would not part with as many prizes, but in a relatively short time span, they could collect a large number of leads.

MAJOR GAINZ ONLINE – They are using the DSL network, which present rolling advertisements in many food joints across the city, the whole day.

6. PRESENTATION CUM REPRESENTATION – BRAND MASCOT – Having a brand mascot is observed to have a major impact on the brand recall. There is a strong link/ association developed in the minds of the target audience, if there is a brand mascot. Eg. Tiger for Sharekhan.

7. WEB PAGE LAYOUT/ FEATURES – The web page should consist everything about the product and organization, which a customer or potential customer would like to know. The benefit of the same is that it reduces the costs incurred in a customer care center for queries of such nature. A basic FAQ can answer most of the questions pertaining to the product, charges and likes. A Glossary can equip the client to be more independent and understand the context & jargon better. The online school of Sharekhan is very creative, where it is in a narrative format, describing the whole trading activity as a story than a normal read. Thus, trying to lure the people who enjoy reading but do not understand the jargons. A middle way for the same could be providing the explanation for a particular term along with an example.



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8. MOCK GAMES – Moneybhai.com is a huge hit amongst the potential traders. It offers the right ground for nurturing potential traders, lead generation & branding. Moneybhai is linked to moneycontrol, associated with CNBC-TV18 (one of the prominent cross-sectional player considered in this study).

9. PHONE GAMES – phone gaming is a more long term and viable option than the former. The former will need infrastructure installation (unless we plan to give it complimentary). India Games, develops games for mobile phones and is partnered with many phone game providers. Today games on mobile phones are more popular than otherwise, also the person can carry it anywhere, everywhere and use it at their ease.

10. CAFÉ COFFEE DAY – the pedigree apart from lineage can be used as a channel to directly communicate with the large masses. It can be used to popularize way to wealth by even conducting small activities like wealth management, which is printed and provided to the customer on his table, while his order arrives.

11. NUMERIC RED ‘2’ – Having a tangible variable to associate oneself with can have a great impact on the recall, better recall than the words. The logo is

representative, but using the number ‘2’, too can help induce brand association.

12. COLLEGES & EDUCATIONAL INSTITUTES – Most of the potential traders can be targeted at the earliest stage of inception. Seminars can be conducted or ‘Trading Carnivals’ in campuses during the college fest or any social event, creating brand awareness and recall. The association is longer and faster if it has a social responsibility feature associated to it.

13. PR – apart from the researchers featuring on the television shows, we can have write ups coming from our in-house professionals and getting printed in the newspapers or so. If language is the barrier, the article, can be edited by a professional and then printed. Kotak uses this tool to the fullest.



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14. COLLABORATION WITH OTHER TV CHANNELS – CNBC-TV18 is one of the most sought partner as they are not only the pioneers but leaders in the information providers in this category. The option, wherein we tie up with a relatively new player, competing with them can help us buy a better deal at the earlier stages of inception, eg. NDTV, UTVi, Zee News, who are trying to enter this domain of markets.

15. GAMUT OF SERVICES BUNDLED – On observation, all the services offered by the players is individual. None of them are bound together to form a new service. This can be used to out advantage, where rather than offering single service unit, by offering our other services in ancillary to the online trading product. Assuming that our target audience is receptive to know more, a added guidance would certainly promote the company’s image as a very investor friendly organization.

To finally conclude, since the features required for the product to are more than namely,

a. Trading in equityb. Trading in derivativesc. Intraday & Deliveryd. Linkage to minimum 1 Demat Accounte. Linkage to minimum 1 e-bank accountf. Watchlists – 2 minimumg. Portfolios – 2 minimumh. Trade in NSEi. Trade in BSEj. Web based platform

We reject the first hypothesis.

Also, since our target audience is looking at the right guidance, offering our other gamut of services viz tax planning, pms, advisory etc along with the online trading



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product, will help in converting and communicating the concerns of the organization towards them.

Thus, we accept the second hypothesis that Way2Wealth along with the online trading platform should provide other gamut services to promote costumers to take up online trading services.5. References



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hr project

Documents

way2wealth product features

way2wealth securities

staff of way2wealth

management of way2wealth

online trading products

way2wealth branch manager

online stock trading

online trading place