CONTENTS
Chapter No. Name of the concept Page No.
I
Introduction
Need of the study
Objectives of the study
Scope of the st...
CHAPTER I - INTRODUCTION
INTRODUCTION
“Customer Satisfaction” means depends on a product’s perceived performance in
delivering value relative to a ...
NEED OF THE STUDY
Customer satisfaction is an important element in the evaluation stage, where in
satisfaction refers to t...
OBJECTIVES OF THE STUDY
This study is under taken to analyze the customer’s satisfaction with respect to IIFL Ltd
Objectiv...
RESEARCH METHODOLOGY
For the purpose of study, both primary and secondary data has been collected. The
observational metho...
Primary data
• Primary data is personally developed data and it gives latest information and
offers much greater accuracy ...
SCOPE OF THE STUDY
• The study is carried out by taking the feedback of 50 customers of IIFL Ltd in
comparison with the be...
LIMITATIONS
• The objective of the study is to understand the satisfaction levels prevailing
among customers of IIFL Ltd
•...
CHAPTER II - REVIEW OF LITERATURE
Marketing is a societal process by which individuals & groups obtain what they need
and want through creating, offering an...
3. Marketing Mix: is the set of controllable and tactical marketing tools which are
used by the firm to gain the customers...
Customer Satisfaction
According to PETER DRUCKER “Marketing is so basic that it cannot be
considered a separate function.”...
Companies are aiming high because who are just satisfied with still find it easy
to switch supplies when a better offer co...
Importance of the Customer Satisfaction
Company’s primary task is “to create customers” But today’s customers face a
vast ...
Companies are aiming high because customers who are just satisfied will still
find it easy to switch suppliers when a bett...
For customer-centered companies, customer satisfaction is both a goal and a
marketing tool. Companies that achieve high cu...
Some Cautions in Measuring Customers Satisfaction:
When customers rate their satisfaction with an element of the company’s...
Delivering Customer Value and Satisfaction:
Given the importance of customer value and satisfaction, what does it take to
...
Retaining Customers:
Companies are not only seeking to improve their relations with their partners in
the supply chain. To...
Therefore, companies cannot use complaint levels as a measure of consumer
satisfaction. Responsive companies obtain as dir...
Lost Consumer Analysis
Companies should contact consumers who have stopped buying or two have
switched to another supplier...
CHAPTER III - INDUSTRY PROFILE
Financial Markets
Finance is the pre-requisite for modern business and financial institutions play a vital
role in the eco...
Classification of Financial Markets:
Financial markets
Organized markets Unorganized markets
Capital Markets Money Markets...
Capital Market:
The capital market is a market for financial assets which have a long or indefinite
maturity. Generally, i...
continuous and regular market for buying and selling of securities. This market consists
of all stock exchanges recognized...
financial asset at an agreed-upon price (the strike price) during a certain period
of time or on a specific date (exercise...
Indian Financial Markets:
India Financial market is one of the oldest in the world and is considered to be the
fastest gro...
(Foreign Direct Investment) spurring growth in their initial days of market decontrol.
During this phase in India much of ...
Financial Market Regulations:
Regulations are an absolute necessity in the face of the growing importance of capital
marke...
establishment of clearing corporations etc. reduced the risk of credit and also reduced
the market.
SEBI has introduced th...
Stock Exchanges in India
Stock Exchanges are an organized marketplace, either corporation or mutual
organization, where me...
18. Saurashtra Kutch
19. Uttar Pradesh
20. Vadodara
Bombay Stock Exchange (BSE)
A very common name for all traders in the stock market, BSE, stands for Bombay
Stock Exchange....
BSE Network
The Exchange reaches physically to 417 cities and towns in the country. The
framework of it has been designed ...
National Stock Exchange of India Limited (NSE)
The National Stock Exchange of India Limited (NSE) has genesis in the repor...
back-office, clearing and settlement, web-based, insurance, etc. Along with this, it
also provides consultancy and impleme...
Today, NSE is one of the largest exchanges in the world and still forging ahead. At
NSE, we are constantly working towards...
Over the Counter Exchange of India (OTCEI)
OTCEI was incorporated in 1990 as a section 25 company under the companies Act
...
CHAPTER IV - COMPANY PROFILE
INDIA INFOLINE LIMITED
India Infoline is a one-stop financial services shop, most respected for quality
of its information...
India Infoline received registration for a housing finance company from the
National Housing Bank and received the ‘Fastes...
which are based on differing investment strategies made to reflect the varied
risk-return preferences of clients.
India In...
India Infoline Commodities Limited.
India Infoline Commodities Pvt Limited is engaged in the business of
commodities broki...
• India Infoline Insurance Brokers Limited India Infoline Insurance
Brokers Limited is a newly formed subsidiary which wil...
IIFL (Asia) Private Limited is wholly owned subsidiary which has been
incorporated in Singapore to pursue financial sector...
IIFL MANAGEMENT
• THE MANAGEMENT TEAM
Mr. Nirmal Jain, Chairman & Managing Director
Nirmal Jain, MBA (IIM, Ahmadabad) and ...
Accountants), a member firm of HLB International, headed the audit
department till 1990 and thereafter also handles financ...
PRODUCTS & SERVICES
Equities
India Infoline provided the prospect of researched investing to its clients,
which was hither...
equities broking. The Company was among the first to offer the facility of
commodities trading in India’s young commoditie...
Wealth Management
The key to achieving a successful Investment Portfolio is to have a carefully
planned financial strategy...
CHAPTER V
DATAANALYSIS & INTERPRETATIONS
1. From how long your Demat account is in operation in IIFL Ltd?
Table 1: IIFL Ltd, Customer’s Demat Account In Operation
...
Interpretation
The above graph illustrates that IIFL Ltd is maintaining strong customer’s relationships
with its investors...
2. Have you maintained/used any Demat account before this?
Table 2: Usage of Demat Account Prior to IIFL Ltd
S.No. Option ...
3. Which stock broking company provided maximum satisfactory services with
regard to the Demat account held by you?
Table ...
4. Are you satisfied with the present services of IIFL Ltd?
Table 4: Customer Satisfaction Towards IIFL Ltd Services
S.No....
Interpretation
The above graph indicates that 74% of the respondents are satisfied with the demat
services provided by IIF...
5. Are IIFL Ltd’s services better than its competitors?
Table 5: IIFL Ltd’s Services When Compared To Competitors
S.No. Op...
6. How does the customer care respond to your queries? Are you pretty much
satisfied?
Table 6: IIFL Ltd Customer Care Serv...
7. Are the brokerage charges reasonable for the Demat account held in IIFL
Ltd?
Table 7: IIFL Ltd, Satisfaction Towards Br...
8. Which type of service do you prefer in IIFL Ltd - offline or online?
Table 8: IIFL Ltd, Customer Preferred Services, On...
9. Are the brokerage schemes and plans of IIFL Ltd better?
Table 9: IIFL Ltd Brokerage Schemes And Plans
S.No. Option No. ...
10. According to you, which company is providing the best stock broking
service?
Table 10: IIFL Ltd Stock Broking Services...
11. Did you face any interruption/problem while trading your account?
Table 11: IIFL Ltd, Problems Encountered While Tradi...
12. Are you getting any benefits/services from other Demat accounts which IIFL
Ltd is not providing?
Table 12: IIFL Ltd vi...
13. Is the toll-free service facility of IIFL Ltd good?
Table 13: IIFL Ltd Toll-Free Services Facility
S.No. Option No. of...
CHAPTER VI
FINDINGS, SUGGESTIONS & CONCLUSION
FINDINGS
 IIFL Ltd is maintaining strong customer’s relationships with its investors
ranging between 0-3 years. Over 46% ...
SUGGESTIONS
 IIFL Ltd should focus on retaining its customers for a longer term by initiating
more products and services ...
CONCLUSION
A survey of the customers has been conducted to know the customer satisfaction
towards the different online tra...
Customer’s Satisfaction In IIFL Ltd
Customer Name:
Age:
Occupation:
Income:
Address:
1) From how long your Demat account i...
8) Which type of service do you prefer in IIFL Ltd - offline or online?
[ ]
a) Offline b) Online
9) Are the brokerage sche...
BIBLIOGRAPHY
MARKETING MANAGEMENT : Phillip Kotler
MARKETING MANAGEMENT : V.S. Ramaswamy
BUSINESS RESEACH METHODOLOGY : C....
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  1. 1. CONTENTS Chapter No. Name of the concept Page No. I Introduction Need of the study Objectives of the study Scope of the study Methodology of the study Limitations of the study II Review of Literature III Industry Profile IV Company Profile V Data analysis and interpretation VI Findings, Suggestions and Conclusion VII Bibliography
  2. 2. CHAPTER I - INTRODUCTION
  3. 3. INTRODUCTION “Customer Satisfaction” means depends on a product’s perceived performance in delivering value relative to a buyer’s expectations. If the product performance falls short of the customer’s expectations, the buyer is dissatisfied.  If performance matches expectations, the buyer is satisfied.  If performance exceeds expectations, the buyer is delighted. Outstanding marketing companies go out of their way to keep their customers satisfied. Satisfied customers make repeat purchases, and they tell others about their good experiences with the product. The key is to match customer’s expectations with the company performance. Marketers alone cannot deliver superior customer value and satisfaction. Although it plays a leading role, marketing can be only a partner in attracting, keeping and growing customers. Customer satisfaction is closely linked to quality, which has direct impact on product performance. Henceforth, majority of the companies have adopted total quality management (TQM) programs in the recent years to constantly improve the quality of their products, services, and marketing processes. Thus, the fundamental aim of today's total quality movement has become total Customer Satisfaction. There are three phases in the customer satisfaction process: 1. Pre-sales: During this stage the customer’s experience are developed through the various information sources like advertising, word of mouth & so on 2. During sales: When the customer is engaged in experiencing on how to deal with inquires and sells the products. 3. The after sales period: This refers to the period when the customer has started during the product. Thus customer’s expectations & their experience will together determine the level of satisfaction.
  4. 4. NEED OF THE STUDY Customer satisfaction is an important element in the evaluation stage, where in satisfaction refers to the buyer’s state of being adequately rewarded in a buying situation. Once the customers purchase and use the product they may then either be satisfy or dissatisfied. Today’s market is a highly competitive market with respect to all of its prospects like company could not sell their products/services at an attractive price and sales promotion strategies. Today’s market is buyer oriented where the customer is considered the king. He has full power to choose the desired product according to his needs and wants. His preference is most important. Because of the huge competition, every stock broker wants to survive in the market and earn profit. This is possible only when the products/services offered are according to the preferences of the customers and meet their expectations. Different customers have different perceptions because no two customers have similar wants and needs. Hence a company needs to analyze the customer satisfactions, which helps in retaining them. • In present scenario there exists a severe competition among the various Broking Companies. In this environment of immense competition, Customer Satisfaction plays a major role for attracting investors/customers by the stock broking companies. So, from the above said statement, there is a need to study the satisfaction of customers/investors who decide the fate of any business organization. • In the Indian scenario the phrase “Customer is the king” has much value and it is important for every company to satisfy the customer. Until and unless the customer is satisfied, one can’t be loyal towards the company. He in turn publicizes the company’s product.
  5. 5. OBJECTIVES OF THE STUDY This study is under taken to analyze the customer’s satisfaction with respect to IIFL Ltd Objectives  To know the customer satisfaction at IIFL Ltd  To identify the factors influencing in using the trading account of the customers  To know the customer preference towards new online software’s & Brokerage plans of IIFL Ltd services  To know the customer satisfaction levels with respect to the brand name, coverage, quality in the service etc.  To the customer satisfaction levels through the recent complaints handled by the IIFL Ltd  To know suitable solutions for improving the market of the company.
  6. 6. RESEARCH METHODOLOGY For the purpose of study, both primary and secondary data has been collected. The observational method and survey research method is used to collect the primary data. The survey research method is used to gain insight into the knowledge about the opinions of the customers towards the reliance services. The main research instruments used the required data is a well-structured questionnaire. A detailed questionnaire has been prepared to reflect the opinions of the customers towards the IIFL Ltd services and administered to the same. The necessary data has also been collected from official records and other published sources. The collected data is classified, tabulated, analyzed and interpreted. Finally conclusion is draw based on the study and suggestions are offered for improving the market efficiency of IIFL Ltd SAMPLE DESIGN: For ascertaining the customer satisfaction towards the IIFL Ltd Stock broking Service 50 customers have been randomly selected from the Hyderabad city only. DATA COLLECTION: There are two types of data collection 1. Primary data 2. Secondary data
  7. 7. Primary data • Primary data is personally developed data and it gives latest information and offers much greater accuracy and reliability. • There are various sources for obtaining primary data i.e., Mail survey, personal interview, • Field survey, panel research and observation approach etc. • The study to maximum extent dependent on primary data, which is collected by way of structures personal interview with customers. Secondary data Secondary data is the published data. It is already available for using and its saves time. The mail source of secondary data are published market surveys, government publications advertising research report and internal source such as sales, sales records orders, customers complaints and other business record etc. the study has also depended on secondary data to little extent, which is collected through internal source. For this survey personal interview method was used for collecting primary data. This survey was conducted by face to face interview customers and found to be best suited to collect the primary data for this project.
  8. 8. SCOPE OF THE STUDY • The study is carried out by taking the feedback of 50 customers of IIFL Ltd in comparison with the below mentioned companies: 1. Sharekhan 2. Durga Prasad & Co 3. Indiabulls • The customer satisfaction study is carried out in Dilsukhnagar franchisee of Hyderabad • The survey conducted will provide the details about the customer satisfaction levels responding to the products and services provided by IIFL Ltd • This study is aimed at providing feedback to the management of IIFL Ltd to give an idea on the satisfaction of their customers towards their online trading services.
  9. 9. LIMITATIONS • The objective of the study is to understand the satisfaction levels prevailing among customers of IIFL Ltd • The study covers the Hyderabad only and due to the limited sample size, the facts relabeled in the study may not generalize. • While calculating the percentages, approximations are made to the nearest figures, for convenience in understanding. • The analysis is based on customer’s opinion at the time of survey. • Due to time constraint the detailed information cannot be collected, but many efforts are taken to collect the actual information.
  10. 10. CHAPTER II - REVIEW OF LITERATURE
  11. 11. Marketing is a societal process by which individuals & groups obtain what they need and want through creating, offering and freely exchanging the products and services of value with others. Marketing has often been described as the art of selling products. The aim of Marketing is to know and understand the customers so well that the product or service fits him and sell it-self. Marketing is typically seen as the task of creating, promoting and delivering the goods and services to the customers & businesses. Marketing people are involved in marketing the goods, services, experiences, events, persons, places, properties, organizations, information and ideas. The American Marketing Association defined the marketing management as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizations goals. Marketing includes Marketing Environment, Marketing Philosophy, Marketing Mix, Market Segmentation, Market Targeting and Market Positioning etc. 1. Marketing Environment: is the actor and force outside the marketing that affects marketing management ability to build and maintain successful relationships with target customers. 2. Marketing Philosophy: is the competing concept under which organizations conduct marketing activities. They are: A. Production Concept. B. Product Concept. C. Selling Concept. D. Marketing Concept and E. Societal Marketing Concept.
  12. 12. 3. Marketing Mix: is the set of controllable and tactical marketing tools which are used by the firm to gain the customers. It is also referred as 4 Ps. These include A. Product. B. Price. C. Place. D. Promotion. 4. Market Segmentation: means dividing a market in to distinct group of buyers with distinct needs, characteristics or behavior who might require separate products or marketing mix. 5. Target Marketing: is the process of evaluating each market segment’s attractiveness and selecting one or more to enter. 6. Market Positioning: is creating a clear and distinct image of products in the minds of the target customers relating to the competing products.
  13. 13. Customer Satisfaction According to PETER DRUCKER “Marketing is so basic that it cannot be considered a separate function.” It is the whole business seen from the point of view its final results, that is from the consumers point of view business success is not determined by the producers but by the consumers. The definition of marketing management as approved by the American Marketing Association in 1985 is “Marketing Management is the process of planning and executing the conception, pricing, promotion and distribution of goods and services and ideas to create exchange with target group that satisfy consumer and conditional objectives. The definition recognize that marketing management is a process involving analysis, planning implementation and control that it covers goods, services and ideas that it rests in the notion of exchange and that the goods is to produce satisfaction for the parties involved. The buyer forms a judgment of volume and acts. Whether the buyer is satisfied after purchase depends upon the offers performance in relation to the buyers expectations. According to PHILLIP KOTLER, the definition of customer satisfaction is the level of a persons felt state resulting from comparing a product perceived performance (or outcome) in relation to the persons expectations. Thus the satisfaction level is a function of the difference between perceived performance and expectations. A consumer could experience may be three broad levels of satisfaction. It the performance falls short of expectations. If the performance matches the expectations, the consumer is satisfied. It the performance exceeds expectations; the consumer is highly satisfied, pleased or delighted.
  14. 14. Companies are aiming high because who are just satisfied with still find it easy to switch supplies when a better offer comes along. The fact is that high satisfaction or delight creates an emotional affinity with the brand not just a rational preference, and they create high consumer loyalty. The challenge is to create a company culture such that everyone within the company aims to delight the consumer. Companies seeking to win in today’s markets must track their consumers expectations perceived company performance and consumable satisfaction that need to monitor this for their competitors as well. For consumer centered companies, customer satisfaction is both a goal and a marketing tool. Companies that achieve high customer satisfaction ratings make sure that their customer satisfaction ratings make sure that their target market knows it. Although the consumer centered firm seeks to create high consumer satisfaction. It is not all to maximum consumer satisfaction. First, the company can increase customer satisfaction by lowering its price or increasing its services, but his may result in lower profits. Second, the company might be able to increase it profitability in other ways, such as by improving its manufacturing or invest in more in R & D. Third, the company has many stock holders including employees, dealers, supplier and stock holders. Spending more to increase customer satisfaction of other “partners” Ultimately the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject delivering at lest acceptable levels of satisfaction to other stock holders within the constraints of its total resources.
  15. 15. Importance of the Customer Satisfaction Company’s primary task is “to create customers” But today’s customers face a vast array of product and brand choices, prices and suppliers. How do customers make their choices? We believe that customers estimate which offer will deliver the most value. Customers are value- maximizes, within the bounds of search costs and limited knowledge, mobility, and income. They form and expectation of value and act on it. Then they learn whether the offer lived up to the value expectation and this affects their satisfaction and their repurchase probability. Customer Value Customer delivered value is the difference between total customer value and total customer cost. And total customer value is the bundle of benefits customers expects from a given product or service. Customer Satisfaction Satisfaction is the level of a person’s felt state resulting from comparing a product’s performance in relation to the person’s expectations. The satisfaction level is a function of the difference between perceived performance and expectations. A customer could experience one of three broad levels of satisfactions. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied, pleased, or delighted.
  16. 16. Companies are aiming high because customers who are just satisfied will still find it easy to switch suppliers when a better offer comes along. In one consumer packaged-goods category, 44% of those reporting satisfaction subsequently switched brands. Those who are highly satisfied are much less ready to switch. One study showed that 75% of Toyota buyers were highly satisfied and about 75% said they intended to buy a Toyota again. The fact is that high satisfaction or delight creates and emotional affinity with the brand, not just a rational preference, and this creates high customer loyalty. The challenge is to create a company culture such that everyone within the company aims to delight the customer. Unisys, the computer company, recently introduced the term “customize” in its ads, and defined it as follows: “To make a company more responsive to its customers and better able to attract new ones.” Unisys sees this as a matter of extending information’s system capabilities to field locations and other points of customer contact and support. But “customizing” a company calls for more than providing good information to customer contact employees. The company’s staff must be “converted” to practicing a strong customer orientation. Company’s staff must be “converted” to practicing a strong customer orientation. Anita Roddick, founder of the Body Shop, wisely observes: “Our people (employees) are my first line of customers. Companies seeking to win to today’s markets must track their customer’s expectations, perceived company performance, and customer satisfaction. They need to monitor this for their competitors as well. Consider the following.
  17. 17. For customer-centered companies, customer satisfaction is both a goal and a marketing tool. Companies that achieve high customer satisfaction ratings make sure that their target market knows it. Although the customer-centered firm seeks to create high customer satisfaction, it is not out to maximize customer satisfaction. First, the company can increase customer satisfaction by lowering its price or increasing its services, but this may result in lower profits. Second, the company might be able to increase its profitability in other ways, such as by improving its manufacturing or investing more in R & D. Third; the company has many stakeholders including employees, dealers, suppliers, and stockholders. Spending more to increase customer satisfaction would divert funds from increasing the satisfaction of other “partners” Ultimately, the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to delivering at least acceptable levels of satisfaction to the other stakeholders within the constraints of its total resources. Complaint and Suggestion Systems: A customer – centered organization would make it easy for its customer to deliver suggestions and complaints. Many restaurants and hotels provide forms for guests to report their like and dislikes. A hospital could place suggestion boxes in the corridors, supply comment bikes ads to existing patients, and hire a patient advocate to handle patient grievances. Some customer-centered companies- P & G, general Electric, Whirlpool-establish “ customer hot lines” to maximize the ease with which customers can inquire, make suggestions or complain.
  18. 18. Some Cautions in Measuring Customers Satisfaction: When customers rate their satisfaction with an element of the company’s performance, say delivery, we need to recognize that customers will vary in how they define good delivery. It could mean early delivery, on-time delivery, order competences, and so on. Yet if the company had to spell our every element in detail, customers would face a huge questionnaire. We must also recognize that two customers can report being “highly satisfied” for different reasons. One may be easily satisfied most of the time and the other might he hared to pleasure but was pleased on this occasion. Observations on Customer Satisfaction: Customer satisfaction will be lower in industries where the industry offers a homogeneous product to a heterogeneous market. On the other hand, industries that supply a high- quality homogeneous product to a homogeneous market will register high satisfaction. Customer satisfaction is lower in industries where repeat buyers face high switching costs. They have to buy from the supplier even though their satisfaction is low. Industries which depend upon repeat business generally create a higher level of customer satisfaction. As a company increases its market share, customer satisfaction can fall. This is because more customers with heterogeneous demands are drawn into buying a fairly homogeneous product.
  19. 19. Delivering Customer Value and Satisfaction: Given the importance of customer value and satisfaction, what does it take to produce and deliver it? To answer this, we need to introduce the concepts of a value chain and value-delivery systems. Value Chain: New product realization process: all the activities involved in identifying, researching, developing, and successfully laughing new products with speed, high quality, and target cost attainment. Inventory management process: all the activities involved in developing and managing the right inventory locations of raw materials, semi finished materials, and finished goods so that adequate supplies are available while avoiding the costs of high overstocks. Order-to-remittance process: all the activities involved in receiving orders, approving them, shipping the goods on time, and collecting payment. Customer service process: all the activities involved in receiving orders, approving them, shipping the goods on time, and collecting payment. Customer service process: all the activities involved in making it easy for customers to reach the right parties within the company and receive quick and satisfactory service, answers, and resolutions of problems.
  20. 20. Retaining Customers: Companies are not only seeking to improve their relations with their partners in the supply chain. Today they are intent on developing stronger bonds and loyalty with their ultimate customers. In the past, many alternative suppliers were just as deficient in quality and service, or the market was growing so facts that the company did not worry about fully satisfying its customers. The company could lose 100 customers a week and gain another 100 customers and consider its sales to be satisfactory. But this is a condition of high customer churn and it involves a higher cost than if the company retained all 100 customers and acquired no new ones. Such a company is operating on a “leaky bucket” theory of its business, namely that there will always be enough customers to replace the defecting ones. Methods of Tracking Customer Satisfaction A company’s tools for tracking and measuring customer satisfaction range from the primitive to the sophisticated. Companies use the following methods to measure how much customer satisfaction they are creating. Complaint and Suggestions Systems A consumer-centered organization would make it easy for its consumer to deliver suggestions and companies with many good ideas and enable them to act more rapidly to resolve problems. Customer Satisfaction Surveys A company must not conclude that it can get a full picture of customer satisfaction and dissatisfaction by simply running a complaint and suggestion system consumer may feel stupid, or that no remedy will be offered. Most consumers will buy less or switch rather tan complain. The result is that the company as needlessly lost consumers.
  21. 21. Therefore, companies cannot use complaint levels as a measure of consumer satisfaction. Responsive companies obtain as direct measure of customer satisfaction by conducting periodic surveys. They send questionnaires or make telephone calls to random sample to their recent consumers to find all how they feel about various aspects of the company performance. They will also solicit buyers views on their competitors performance. Consumer’s satisfaction can be measured in a number of ways. It can be measured directly by asking. “Indicate how stratified you are with service X on the following scale; highly dissatisfied, indifferent, satisfied, highly satisfied, (directly reported satisfaction) respondents can be asked as well to rate how much they expected of a certain attribute and also how much they experienced (derived dissatisfaction). Still another method is to ask respondents to list any problems they have had with the offer and to list any improvements they could suggest (problem analysis) finally, companies could ask respondents to rate various elements of the offer in terms of the importance of each element and how well the organiza5tion performed each element (importance performance ratings). This last method helps the company to know it is under performing on relatively unimportant elements. While collecting consumers satisfaction data, it would also be useful to ask additional questions to measure consumers repurchase intention. This will normally be high, if the customer satisfaction is high. A highly positive word of month score indicates that the company is producing high consumer satisfaction. Ghost Shopping Another useful way to gather a picture of customer satisfaction is to hire persons to pose as potential buyers to report their findings on strong and weak points they experienced in buying the companies and competitors products. These ghost shoppers can even pose certain problem to test whether the company’s sales personnel handle the situation well.
  22. 22. Lost Consumer Analysis Companies should contact consumers who have stopped buying or two have switched to another supplier to learn why this happened. They mount a through effort to learn where they failed – is their price too high, their service deficient, their products unreliable and so on. Observations on Customer Satisfaction The measured value of industrial output is not necessarily a measure of customer satisfaction with that output. Here are some of Professor Fornells’ findings on the industrial level; • Customer satisfaction will be lower in industries where the industry offers a homogeneous product to a heterogeneous market. On the other hand, industries that supply a high quantity homogeneous product to a heterogeneous market will register high satisfaction. • Customer satisfaction is lower in industries where repeat buyers force high switching costs. They have to buy from the supplier even thought their satisfaction is low. • Industries, which depend upon repeat business generally, create a high level of consumer satisfaction. • As a company increases its market share, customer satisfaction can fall. This is because more consumers with heterogeneous demands are drawn into buying a fairly homogeneous product.
  23. 23. CHAPTER III - INDUSTRY PROFILE
  24. 24. Financial Markets Finance is the pre-requisite for modern business and financial institutions play a vital role in the economic system. It is through financial markets and institutions that the financial system of an economy works. Financial markets refer to the institutional arrangements for dealing in financial assets and credit instruments of different types such as currency, cheques, bank deposits, bills, bonds, equities, etc. Financial market is a broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. They are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade. Generally, there is no specific place or location to indicate a financial market. Wherever a financial transaction takes place, it is deemed to have taken place in the financial market. Hence financial markets are pervasive in nature since financial transactions are themselves very pervasive throughout the economic system. For instance, issue of equity shares, granting of loan by term lending institutions, deposit of money into a bank, purchase of debentures, sale of shares and so on. In a nutshell, financial markets are the credit markets catering to the various needs of the individuals, firms and institutions by facilitating buying and selling of financial assets, claims and services.
  25. 25. Classification of Financial Markets: Financial markets Organized markets Unorganized markets Capital Markets Money Markets Industrial Securities Market Government Securities Market Long-term loan market Primary Market Secondary market Call Money Market Commercial Bill Market Treasury Bill Market Money Lenders, Indigenuos Bankers
  26. 26. Capital Market: The capital market is a market for financial assets which have a long or indefinite maturity. Generally, it deals with long term securities which have a period of above one year. In the widest sense, it consists of a series of channels through which the savings of the community are made available for industrial and commercial enterprises and public authorities. As a whole, capital market facilitates raising of capital. The major functions performed by a capital market are: 1. Mobilization of financial resources on a nation-wide scale. 2. Securing the foreign capital and know-how to fill up deficit in the required resources for economic growth at a faster rate. 3. Effective allocation of the mobilized financial resources, by directing the same to projects yielding highest yield or to the projects needed to promote balanced economic development. Capital market consists of primary market and secondary market. Primary market: Primary market is a market for new issues or new financial claims. Hence it is also called as New Issue Market. It basically deals with those securities which are issued to the public for the first time. The market, therefore, makes available a new block of securities for public subscription. In other words, it deals with raising of fresh capital by companies either for cash or for consideration other than cash. The best example could be Initial Public Offering (IPO) where a firm offers shares to the public for the first time. Secondary market: Secondary market is a market where existing securities are traded. In other words, securities which have already passed through new issue market are traded in this market. Generally, such securities are quoted in the stock exchange and it provides a
  27. 27. continuous and regular market for buying and selling of securities. This market consists of all stock exchanges recognized by the government of India. Money Market: Money markets are the markets for short-term, highly liquid debt securities. Money market securities are generally very safe investments which return relatively low interest rate that is most appropriate for temporary cash storage or short term time needs. It consists of a number of sub-markets which collectively constitute the money market namely call money market, commercial bills market, acceptance market, and Treasury bill market. Derivatives Market: The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets. A derivative is a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. The important financial derivatives are the following: • Forwards: Forwards are the oldest of all the derivatives. A forward contract refers to an agreement between two parties to exchange an agreed quantity of an asset for cash at a certain date in future at a predetermined price specified in that agreement. The promised asset may be currency, commodity, instrument etc. • Futures: Future contract is very similar to a forward contract in all respects excepting the fact that it is completely a standardized one. It is nothing but a standardized forward contract which is legally enforceable and always traded on an organized exchange. • Options: A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other
  28. 28. financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date). Call options give the option to buy at certain price, so the buyer would want the stock to go up. Put options give the option to sell at a certain price, so the buyer would want the stock to go down. • Swaps: It is yet another exciting trading instrument. Infact, it is the combination of forwards by two counterparties. It is arranged to reap the benefits arising from the fluctuations in the market – either currency market or interest rate market or any other market for that matter. Foreign Exchange Market: It is a market in which participants are able to buy, sell, exchange and speculate on currencies. Foreign exchange markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The forex market is considered to be the largest financial market in the world. It is a worldwide decentralized over-the-counter financial market for the trading of currencies. Because the currency markets are large and liquid, they are believed to be the most efficient financial markets. It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world. Commodities Market: It is a physical or virtual marketplace for buying, selling and trading raw or primary products. For investors' purposes there are currently about 50 major commodity markets worldwide that facilitate investment trade in nearly 100 primary commodities. Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (gold, rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn, wheat, coffee, sugar, soybeans, pork, etc.)
  29. 29. Indian Financial Markets: India Financial market is one of the oldest in the world and is considered to be the fastest growing and best among all the markets of the emerging economies. The history of Indian capital markets dates back 200 years toward the end of the 18th century when India was under the rule of the East India Company. The development of the capital market in India concentrated around Mumbai where no less than 200 to 250 securities brokers were active during the second half of the 19th century. The financial market in India today is more developed than many other sectors because it was organized long before with the securities exchanges of Mumbai, Ahmadabad and Kolkata were established as early as the 19th century. By the early 1960s the total number of securities exchanges in India rose to eight, including Mumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi, Bangalore and Pune. Today there are 21 regional securities exchanges in India in addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the Counter Exchange of India). However the stock markets in India remained stagnant due to stringent controls on the market economy that allowed only a handful of monopolies to dominate their respective sectors. The corporate sector wasn't allowed into many industry segments, which were dominated by the state controlled public sector resulting in stagnation of the economy right up to the early 1990s. Thereafter when the Indian economy began liberalizing and the controls began to be dismantled or eased out; the securities markets witnessed a flurry of IPO’s that were launched. This resulted in many new companies across different industry segments to come up with newer products and services. A remarkable feature of the growth of the Indian economy in recent years has been the role played by its securities markets in assisting and fuelling that growth with money rose within the economy. This was in marked contrast to the initial phase of growth in many of the fast growing economies of East Asia that witnessed huge doses of FDI
  30. 30. (Foreign Direct Investment) spurring growth in their initial days of market decontrol. During this phase in India much of the organized sector has been affected by high growth as the financial markets played an all-inclusive role in sustaining financial resource mobilization. Many PSUs (Public Sector Undertakings) that decided to offload part of their equity were also helped by the well-organized securities market in India. The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter Exchange of India) during the mid 1990s by the government of India was meant to usher in an easier and more transparent form of trading in securities. The NSE was conceived as the market for trading in the securities of companies from the large-scale sector and the OTCEI for those from the small-scale sector. While the NSE has not just done well to grow and evolve into the virtual backbone of capital markets in India the OTCEI struggled and is yet to show any sign of growth and development. The integration of IT into the capital market infrastructure has been particularly smooth in India due to the country’s world class IT industry. This has pushed up the operational efficiency of the Indian stock market to global standards and as a result the country has been able to capitalize on its high growth and attract foreign capital like never before. The regulating authority for capital markets in India is the SEBI (Securities and Exchange Board of India). SEBI came into prominence in the 1990s after the capital markets experienced some turbulence. It had to take drastic measures to plug many loopholes that were exploited by certain market forces to advance their vested interests. After this initial phase of struggle SEBI has grown in strength as the regulator of India’s capital markets and as one of the country’s most important institutions.
  31. 31. Financial Market Regulations: Regulations are an absolute necessity in the face of the growing importance of capital markets throughout the world. The development of a market economy is dependent on the development of the capital market. The regulation of a capital market involves the regulation of securities; these rules enable the capital market to function more efficiently and impartially. A well regulated market has the potential to encourage additional investors to partake, and contribute in, furthering the development of the economy. The chief capital market regulatory authority is Securities and Exchange Board of India (SEBI). SEBI is the regulator for the securities market in India. It is the apex body to develop and regulate the stock market in India It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad. In place of Government Control, a statutory and autonomous regulatory board with defined responsibilities, to cover both development & regulation of the market, and independent powers has been set up. The basic objectives of the Board were identified as: • To protect the interests of investors in securities; • To promote the development of Securities Market; • To regulate the securities market and • For matters connected therewith or incidental thereto. Since its inception SEBI has been working targeting the securities and is attending to the fulfillment of its objectives with commendable zeal and dexterity. The improvements in the securities markets like capitalization requirements, margining,
  32. 32. establishment of clearing corporations etc. reduced the risk of credit and also reduced the market. SEBI has introduced the comprehensive regulatory measures, prescribed registration norms, the eligibility criteria, the code of obligations and the code of conduct for different intermediaries like, bankers to issue, merchant bankers, brokers and sub- brokers, registrars, portfolio managers, credit rating agencies, underwriters and others. It has framed bye-laws, risk identification and risk management systems for Clearing houses of stock exchanges, surveillance system etc. which has made dealing in securities both safe and transparent to the end investor. Another significant event is the approval of trading in stock indices (like S&P CNX Nifty & Sensex) in 2000. A market Index is a convenient and effective product because of the following reasons: • It acts as a barometer for market behavior; • It is used to benchmark portfolio performance; • It is used in derivative instruments like index futures and index options; • It can be used for passive fund management as in case of Index Funds. Two broad approaches of SEBI is to integrate the securities market at the national level, and also to diversify the trading products, so that there is an increase in number of traders including banks, financial institutions, insurance companies, mutual funds, primary dealers etc. to transact through the Exchanges. In this context the introduction of derivatives trading through Indian Stock Exchanges permitted by SEBI in 2000 AD is a real landmark. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 bases). SEBI has been active in setting up the regulations as required under law.
  33. 33. Stock Exchanges in India Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers, or as principals for their own accounts. As per the Securities Contracts Regulation Act, 1956 a stock exchange is an association, organization or body of individuals whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities. Stock exchanges facilitate for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerized. The trade on an exchange is only by members and stock broker do have a seat on the exchange. List of Stock Exchanges in India Bombay Stock Exchange National Stock Exchange OTC Exchange of India Regional Stock Exchanges 1. Ahmedabad 2. Bangalore 3. Bhubaneswar 4. Calcutta 5. Cochin 6. Coimbatore 7. Delhi 8. Guwahati 9. Hyderabad 10. Jaipur 11. Ludhiana 12. Madhya Pradesh 13. Madras 14. Magadh 15. Mangalore 16. Meerut 17. Pune
  34. 34. 18. Saurashtra Kutch 19. Uttar Pradesh 20. Vadodara
  35. 35. Bombay Stock Exchange (BSE) A very common name for all traders in the stock market, BSE, stands for Bombay Stock Exchange. It is the oldest market not only in the country, but also in Asia. In the early days, BSE was known as "The Native Share & Stock Brokers Association." It was established in the year 1875 and became the first stock exchange in the country to be recognized by the government. In 1956, BSE obtained a permanent recognition from the Government of India under the Securities Contracts (Regulation) Act, 1956. In the past and even now, it plays a pivotal role in the development of the country's capital market. This is recognized worldwide and its index, SENSEX, is also tracked worldwide. Earlier it was an Association of Persons (AOP), but now it is a demutualised and corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). BSE Vision The vision of the Bombay Stock Exchange is to "Emerge as the premier Indian stock exchange by establishing global benchmarks." BSE Management Bombay Stock Exchange is managed professionally by Board of Directors. It comprises of eminent professionals, representatives of Trading Members and the Managing Director. The Board is an inclusive one and is shaped to benefit from the market intermediaries participation. The Board exercises complete control and formulates larger policy issues. The day- to-day operations of BSE are managed by the Managing Director and its school of professional as a management team.
  36. 36. BSE Network The Exchange reaches physically to 417 cities and towns in the country. The framework of it has been designed to safeguard market integrity and to operate with transparency. It provides an efficient market for the trading in equity, debt instruments and derivatives. Its online trading system, popularly known as BOLT, is a proprietary system and it is BS 7799-2-2002 certified. The BOLT network was expanded, nationwide, in 1997. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified. BSE Facts BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is the benchmark equity index that reflects the robustness of the economy and finance. It was the – • First in India to introduce Equity Derivatives • First in India to launch a Free Float Index • First in India to launch US$ version of BSE Sensex • First in India to launch Exchange Enabled Internet Trading Platform • First in India to obtain ISO certification for Surveillance, Clearing & Settlement • 'BSE On-Line Trading System’ (BOLT) has been awarded the globally recognized the Information Security Management System standard BS7799-2:2002. • First to have an exclusive facility for financial training • Moved from Open Outcry to Electronic Trading within just 50 days BSE with its long history of capital market development is fully geared to continue its contributions to further the growth of the securities markets of the country, thus helping India increases its sphere of influence in international financial markets.
  37. 37. National Stock Exchange of India Limited (NSE) The National Stock Exchange of India Limited (NSE) has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FI’s) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax- paying company unlike other stock Exchange in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE GROUP National Securities Clearing Corporation Ltd. (NSCCL) It is a wholly owned subsidiary, which was incorporated in August 1995 and commenced clearing operations in April 1996. It was formed to build confidence in clearing and settlement of securities, to promote and maintain the short and consistent settlement cycles, to provide a counter-party risk guarantee and to operate a tight risk containment system. NSE.IT Ltd. It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the NSE is uniquely positioned to provide products, services and solutions for the securities industry. NSE.IT primarily focuses on in the area of trading, broker front-end and
  38. 38. back-office, clearing and settlement, web-based, insurance, etc. Along with this, it also provides consultancy and implementation services in Data Warehousing, Business Continuity Plans, Site Maintenance and Backups, Stratus Mainframe Facility Management, Real Time Market Analysis & Financial News. India Index Services & Products Ltd. (IISL) It is a joint venture between NSE and CRISIL Ltd. to provide a variety of indices and index related services and products for the Indian Capital markets. It was set up in May 1998. IISL has a consulting and licensing agreement with the Standard and Poor's (S&P), world's leading provider of equity indices, for co-branding equity indices. National Securities Depository Ltd. (NSDL) NSE joined hands with IDBI and UTI to promote dematerialization of securities. This step was taken to solve problems related to trading in physical securities. It commenced operations in November 1996. NSE Facts • It uses satellite communication technology to energize participation from around 400 cities in India. • NSE can handle up to 1 million trades per day. • It is one of the largest interactive VSAT based stock exchanges in the world. • The NSE- network is the largest private wide area network in India and the first extended C- Band VSAT network in the world. • Presently more than 9000 users are trading on the real time-online NSE application.
  39. 39. Today, NSE is one of the largest exchanges in the world and still forging ahead. At NSE, we are constantly working towards creating a more transparent, vibrant and innovative capital market.
  40. 40. Over the Counter Exchange of India (OTCEI) OTCEI was incorporated in 1990 as a section 25 company under the companies Act 1956 and is recognized as a stock exchange under section 4 of the securities Contracts Regulation Act, 1956. The exchange was set up to aid enterprising promotes in raising finance for new projects in a cost effective manner and to provide investors with a transparent and efficient mode of trading Modeled along the lines of the NASDAQ market of USA, OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scrip less trading. As a measure of success of these efforts, the Exchange today has 115 listings and has assisted in providing capital for enterprises that have gone on to build successful brands for themselves like VIP Advanta, Sonora Tiles & Brilliant mineral water, etc. Need for OTCEI: Studies by NASSCOM, software technology parks of India, the venture capitals funds and the government’s IT tasks Force, as well as rising interest in IT, Pharmaceutical, Biotechnology and Media shares have repeatedly emphasized the need for a national stock market for innovation and high growth companies. Innovative companies are critical to developing economics like India, which is undergoing a major technological revolution. With their abilities to generate employment opportunities and contribute to the economy, it is essential that these companies not only expand existing operations but also set up new units. The key issue for these companies is raising timely, cost effective and long term capital to sustain their operations and enhance growth. Such companies, particularly those that have been in operation for a short time, are unable to raise funds through the traditional financing methods, because they have not yet been evaluated by the financial world.
  41. 41. CHAPTER IV - COMPANY PROFILE
  42. 42. INDIA INFOLINE LIMITED India Infoline is a one-stop financial services shop, most respected for quality of its information, personalized service and cutting-edge technology. Vision Our vision is to be the most respected company in the financial services space. India Infoline Group The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, include 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. The company has a network of over 2100 business locations (branches and sub-brokers) spread across more than 450 cities and towns. The group caters to approximately a million customers. Founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an independent business research and information provider, the company gradually evolved into a one-stop financial services solutions provider.
  43. 43. India Infoline received registration for a housing finance company from the National Housing Bank and received the ‘Fastest growing Equity Broking House - Large firms’ in India by Dun & Bradstreet in 2009. It also received the Insurance broking license from IRDA; received the venture capital license; received in principle approval to sponsor a mutual fund; received ‘Best broker- India’ award from Finance Asia; ‘Most Improved Brokerage- India’ award from Asia money. COMPANY STRUCTURE 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. A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes,
  44. 44. which are based on differing investment strategies made to reflect the varied risk-return preferences of clients. India Infoline Media and Research Services Limited The services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where India Infoline is amongst the most read Indian brokers.
  45. 45. India Infoline Commodities Limited. India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Their experience in securities broking empowered them with the requisite skills and technologies to allow them to offer commodities broking as a contra-cyclical alternative to equities broking. It enjoys memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. It has a multi- channel delivery model, making it among the select few to offer online as well as offline trading facilities. India Infoline Marketing & Services India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. • India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001.
  46. 46. • India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. India Infoline Investment Services Limited Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following step- down subsidiaries. • India Infoline Distribution Company Limited (distribution of retail loan products) • Moneyline Credit Limited (consumer finance) • India Infoline Housing Finance Limited (housing finance) IIFL (Asia) Private Limited
  47. 47. IIFL (Asia) Private Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.
  48. 48. IIFL MANAGEMENT • THE MANAGEMENT TEAM Mr. Nirmal Jain, Chairman & Managing Director Nirmal Jain, MBA (IIM, Ahmadabad) and a Chartered and Cost Accountant, founded India’s leading financial services company India Infoline Ltd. in 1995, providing globally acclaimed financial services in equities and commodities broking, life insurance and mutual funds distribution, among others. Mr. R Venkataraman, Executive Director R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B. Tech (Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined the India Infoline board in July 1999. • THE BOARD OF DIRECTORS Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline Ltd. comprises: Mr. Nilesh Vikamsey, Independent Director Mr. Vikamsey, Board member since February 2005 - a practicing Chartered Accountant and partner (Khimji Kunverji & Co., Chartered
  49. 49. Accountants), a member firm of HLB International, headed the audit department till 1990 and thereafter also handles financial services, consultancy, investigations, mergers and acquisitions, valuations etc Mr Sat Pal Khattar, Non Executive Director Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council of Minority Rights member, Chairman of the Board of Trustee of Singapore Business Federation, is also a life trustee of SINDA, a non profit body, helping the under-privileged Indians in Singapore. He joined the India Infoline board in April 2001. Mr Kranti Sinha, Independent Director Mr. Kranti Sinha — Board member since January 2005 — completed his masters from the Agra University and started his career as a Class I officer with Life Insurance Corporation of India. Mr Arun K. Purvar, Independent Director Mr. A.K. Purvar – Board member since March 2008 – completed his Masters degree in commerce from Allahabad University in 1966 and a diploma in Business Administration in 1967.
  50. 50. PRODUCTS & SERVICES Equities India Infoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to India Infoline. India Infoline leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access. India Infoline made it possible for clients to view transaction costs and ledger updates in real time. The Company is among the few financial intermediaries in India to offer a complement of online and offline broking. The Companies network of branches also allows customers to place orders on phone or visit our branches for trading. Commodities India Infoline’s extension into commodities trading reconciles its strategic intent to emerge as a one stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companies commodities business provides a contra-cyclical alternative to
  51. 51. equities broking. The Company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. Insurance An entry into this segment helped complete the client's product basket; concurrently, it graduated the Company into a one stop retail financial solutions provider. To ensure maximum reach to customers across India, it has employed a multi pronged approach and reaches out to customers via our Network, Direct and Affiliate channels. India Infoline was the first corporate in India to get the agency license in early 2001. Invest Online India Infoline has made investing in Mutual funds and primary market so effortless. Only registration is needed. No paperwork no queues and No registration charges. India Infoline offers a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.
  52. 52. Wealth Management The key to achieving a successful Investment Portfolio is to have a carefully planned financial strategy based on a thorough understanding of the client's investment needs and risk appetite. The IIFL Private Wealth Management Team of financial experts will recommend an appropriate financial strategy to effectively meet customer’s investment requirements. Asset Management India Infoline is a leading pan-India mutual fund distribution house associated with leading asset management companies. It operates primarily in the retail segment leveraging its existing distribution network to reach prospective clients. It has received the in-principle approval to set up a mutual fund. Portfolio Management IIFL Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. India Infoline invests the client’s resources into stocks from different sectors, depending on client’s risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio.
  53. 53. CHAPTER V DATAANALYSIS & INTERPRETATIONS
  54. 54. 1. From how long your Demat account is in operation in IIFL Ltd? Table 1: IIFL Ltd, Customer’s Demat Account In Operation S.No. Years No. of Respondents Percentage (%) 1 0-1 Year 10 20% 2 2-3 Years 23 46% 3 4-5 Years 8 16% 4 5 Years & Above 9 18% Total 50 100% Source: Primary Data Figure 1: IIFL Ltd, Demat Account Holders’ Status 23 8 9 10 18% 46% 16% 20% 0 6 12 18 24 30 0-1 Year 2-3 Years 4-5 Years 5 Years & Above Years No.ofAccountHolders 0% 10% 20% 30% 40% 50% Percentage(%) No. of Respondents Percentage (%) Source: Primary Data
  55. 55. Interpretation The above graph illustrates that IIFL Ltd is maintaining strong customer’s relationships with its investors ranging between 0-3 years. 20% of the respondents are maintianing a demat account in IIFL Ltd from 0-1 years, while 23 respondents, reperesenting 46%, are running the account since 2-3years. Addtionally, IIFL Ltd need to focus more on maintaing its relationships on a longer term, as the graph depicts that most of investors are moving/withdrawing their demat accounts with the company. Only 16% and 18% of the respondents are managing their demat accounts in the company from 4-5 year and 5 years & above respectively.
  56. 56. 2. Have you maintained/used any Demat account before this? Table 2: Usage of Demat Account Prior to IIFL Ltd S.No. Option No. of Respondents Percentage (%) 1 Yes 10 20% 2 No 40 80% Total 50 100% Source: Primary Data Figure 2: Usage of Demat Account Prior to IIFL Ltd No 80% Yes 20% Source: Primary Data Interpretation The above graph illustrates that 80% of IIFL Ltd’s customers have not used/maintained any demat account prior to this. Only 20% have maintained a demat account prior opening an account in IIFL Ltd So, it can be concluded that most of the respondents are not aware of demat account earlier.
  57. 57. 3. Which stock broking company provided maximum satisfactory services with regard to the Demat account held by you? Table 3: IIFL Ltd vis-à-vis Competitors, Customer Satisfaction S.No. Company Name No. of Respondents Percentage (%) 1 IIFL Ltd 12 24% 2 Sharekhan 9 18% 3 Durga Prasad & Co. 15 30% 4 Indiabulls 14 28% Total 50 100% Source: Primary Data Figure 3: IIFL Ltd vis-à-vis Competitors, Customer Satisfaction Sharekhan 18% Indiabulls 28% Durga Prasad & Co. 24% India Infoline 30% Source: Primary Data Interpretation The above graph depicts that 15 of the total 50 respondents have satisfied with the services provided by India Infoline, representing 30%. Indiabulls followed next with 28% and IIFL Ltd with 24%. So, it can be concluded that IIFL Ltd have to increase its after the sales service to move ahead of its competitors.
  58. 58. 4. Are you satisfied with the present services of IIFL Ltd? Table 4: Customer Satisfaction Towards IIFL Ltd Services S.No. Option No. of Respondents Percentage (%) 1 Yes 37 74% 2 No 13 26% Total 50 100% Source: Primary Data Figure 4: Customer Satisfaction Towards IIFL Ltd Services No 26% Yes 74% Source: Primary Data
  59. 59. Interpretation The above graph indicates that 74% of the respondents are satisfied with the demat services provided by IIFL Ltd, and only 26% of the respondents are not satisfied with the services. It is suggested that IIFL Ltd need to take precautionary measures for improving its services, thereby enabling the company to withhold its customers going forward.
  60. 60. 5. Are IIFL Ltd’s services better than its competitors? Table 5: IIFL Ltd’s Services When Compared To Competitors S.No. Option No. of Respondents Percentage (%) 1 Yes 37 74% 2 No 13 26% Total 50 100% Source: Primary Data Figure 5: IIFL Ltd’s Services When Compared To Competitors Yes 74% No 26% Source: Primary Data Interpretation The above graph indicates that 74% of the respondents voted in favor of the services provided by IIFL Ltd as the best, when compared to its competitors. Only 26% of the respondents were not satisfied with the demat services provided by the company.
  61. 61. 6. How does the customer care respond to your queries? Are you pretty much satisfied? Table 6: IIFL Ltd Customer Care Service S.No. Company Name No. of Respondents Percentage (%) 1 Bad 12 18% 2 Average 9 24% 3 Good 15 58% Total 50 100% Source: Primary Data Figure 6: IIFL Ltd Customer Care Service Bad 18% Average 24% Good 58% Source: Primary Data Interpretation The above graph illustrates that majority of the customers (58%) of IIFL Ltd are satisfied with the customer care services. IIFL Ltd now need to concentrate more on improving its cusrtomer care services to grab the remaining 42% share of the pie.
  62. 62. 7. Are the brokerage charges reasonable for the Demat account held in IIFL Ltd? Table 7: IIFL Ltd, Satisfaction Towards Brokerage Charges S.No. Option No. of Respondents Percentage (%) 1 Yes 42 84% 2 No 8 16% Total 50 100% Source: Primary Data Figure 7: IIFL Ltd, Satisfaction Towards Brokerage Charges No 16% Yes 84% Source: Primary Data Interpretation The above graph indicates that 84% of the respondents are satisfied with the brokerage charges of the IIFL Ltd as better. Only 16% of the respondents were not satisfied by the charges collected by the company for demat accounts.
  63. 63. 8. Which type of service do you prefer in IIFL Ltd - offline or online? Table 8: IIFL Ltd, Customer Preferred Services, Online or Offline S.No. Preferred Mode No. of Respondents Percentage (%) 1 Offline 32 64% 2 Online 18 36% Total 50 100% Source: Primary Data Figure 8: IIFL Ltd, Customer Preferred Services, Online or Offline Offline 64% Online 36% Source: Primary Data Interpretation The above graph indicates that 64% of IIFL Ltd’s customers are interested in managing their demat account on offline mode, i.e. either through telephone or mail. Only 36% of the respondents are interested in managing their account through online.
  64. 64. 9. Are the brokerage schemes and plans of IIFL Ltd better? Table 9: IIFL Ltd Brokerage Schemes And Plans S.No. Option No. of Respondents Percentage (%) 1 No 8 16% 2 To Some Extent 18 36% 3 Yes 24 48% Total 50 100% Source: Primary Data Figure 9: IIFL Ltd Brokerage Schemes And Plans To Some Extent 36% Yes 48% No 16% Source: Primary Data Interpretation The above graph illustrates 48% of the respondents were satisfied with the brokerage schemes and plans of IIFL Ltd However, only 16% of the existing customers of the company were dis-satisfied with the schemes and plans of the company.
  65. 65. 10. According to you, which company is providing the best stock broking service? Table 10: IIFL Ltd Stock Broking Services vis-à-vis Competitors S.No. Company Name No. of Respondents Percentage (%) 1 IIFL Ltd 15 30% 2 Sharekhan 9 18% 3 Durga Prasad & Co 12 24% 4 Indiabulls 14 28% Total 50 100% Source: Primary Data Figure 10: IIFL Ltd Stock Broking Services vis-à-vis Competitors Sharekhan 18% Indiabulls 28% IIFL 30% Durga Prasad & Co 24% Source: Primary Data Interpretation The above graph indicates that the stock broking services provided by IIFL Ltd were far better when compared to its competitors, grabbing majority portion of the cake. Overall, 30% of the respondents, representing 15 customers, were pretty much satisfied with the stock broking services of the company.
  66. 66. 11. Did you face any interruption/problem while trading your account? Table 11: IIFL Ltd, Problems Encountered While Trading Demat Account S.No. Option No. of Respondents Percentage (%) 1 Yes 17 34% 2 No 33 66% Total 50 100% Source: Primary Data Figure 11: IIFL Ltd, Problems Encountered While Trading Demat Account Yes 34% No 66% Source: Primary Data Interpretation The above graph indicates that 66% of customers did not encounter any problem while trading with their demat account in IIFL Ltd. Only 34% of the respondents reported that they faced problems while trading their accounts.
  67. 67. 12. Are you getting any benefits/services from other Demat accounts which IIFL Ltd is not providing? Table 12: IIFL Ltd vis-à-vis Benefits/Services of its Competitors S.No. Option No. of Respondents Percentage (%) 1 Yes 14 28% 2 No 36 72% Total 50 100% Source: Primary Data Figure 12: IIFL Ltd vis-à-vis Benefits/Services of its Competitors No 72% Yes 28% Source: Primary Data Interpretation From the above graph, 72% of the respondents said that did not find any new benefit/service which IIFL Ltd is offering to its customers, when compared to its competitors.
  68. 68. 13. Is the toll-free service facility of IIFL Ltd good? Table 13: IIFL Ltd Toll-Free Services Facility S.No. Option No. of Respondents Percentage (%) 1 Bad 3 6% 2 Average 7 14% 3 Good 15 30% 4 Excellent 25 50% Total 50 100% Source: Primary Data Figure 13: IIFL Ltd Toll-Free Services Facility Good 30% Average 14% Bad 6% Excellent 50% Source: Primary Data Interpretation The above graph shows that toll free service facility provided by IIFL Ltd is excellent, accounting for 50% of the share. Only 6% of the respondents reported the service facility of the company as bad.
  69. 69. CHAPTER VI FINDINGS, SUGGESTIONS & CONCLUSION
  70. 70. FINDINGS  IIFL Ltd is maintaining strong customer’s relationships with its investors ranging between 0-3 years. Over 46% of the respondents are running the account in the company since 2 years  74% of the respondents are satisfied with the Demat services provided by the company  74% of the respondents voted in favor of the services provided by IIFL Ltd as the best, when compared to its competitors  Customer care services seems to be good with 58% respondents favoring the company  84% of the respondents are satisfied with the brokerage charges of the IIFL Ltd as better  64% of IIFL Ltd’s customers are interested in managing their demat account on offline mode  48% of the respondents were satisfied with the brokerage schemes and plans of IIFL Ltd  66% of customers did not encounter any problem while trading with their demat account in IIFL Ltd  72% of the respondents said that did not find any new benefit/service which IIFL Ltd is offering to its customers
  71. 71. SUGGESTIONS  IIFL Ltd should focus on retaining its customers for a longer term by initiating more products and services to its customers. This is signified by the fact the only 16% - 18% of the customers are managing their demat accounts in the company over 5 years & above respectively.  IIFL Ltd should need to take precautionary measures for improving its services, thereby enabling it withhold its customers going forward, with the fact that majority of the customers were satisfied by the services provided by its competitors, namely India Infoline, to an extent.  IIFL Ltd need to concentrate more on improving its customer care services to grab the remaining 42% share  Brokerage schemes and plans should be improved by the company as 16% of the existing customers showed dis-satisfaction
  72. 72. CONCLUSION A survey of the customers has been conducted to know the customer satisfaction towards the different online trading firms available in the market with special reference to India Infoline. It is observed that overall people like to use India Infoline compared to other trading firms. It is concluded that mostly people prefer India Infoline due to its competitive brokerage structures, fast trading platform, prompt online response apart from tips and guidance from the company. It is thus concluded from the facts collected that mostly people prefer to use top brands like India Infoline compared to smaller online trading firms.
  73. 73. Customer’s Satisfaction In IIFL Ltd Customer Name: Age: Occupation: Income: Address: 1) From how long your Demat account is in operation in IIFL Ltd? [ ] a) 0-1 years b) 2-3 years c) 4-5 years d) 5 years & above 2) Have you maintained/used any Demat account before this? [ ] a) Yes b) No 3) Which stock broking company provided maximum satisfactory services with regard to the Demat account held by you? [ ] a) IIFL Ltd b) Sharekhan c) Durga Prasad & Co. d) Indiabulls 4) Are you satisfied with the present services of IIFL Ltd? [ ] a) Yes b) No 5) Does IIFL Ltd’s services are better than its competitors? [ ] a) Yes b) No 6) How does the customer care respond to your queries? Are you pretty much satisfied? [ ] a) Good b) Bad c) Average 7) Are the brokerage charges reasonable for the Demat account held in IIFL Ltd? [ ] a) Yes b) No
  74. 74. 8) Which type of service do you prefer in IIFL Ltd - offline or online? [ ] a) Offline b) Online 9) Are the brokerage schemes and plans of IIFL Ltd better? [ ] a) No b) Yes c) To Some Extent 10) According to you, which company is providing the best stock broking service? [ ] a) IIFL Ltd b) Sharekhan c) Durga Prasad & Co. d) Indiabulls 11) Did you face any interruption/problem while trading your account? [ ] a) Yes b) No 12) Are you getting any benefits/services from other Demat accounts which IIFL Ltd is not providing? [ ] a) Yes b) No 13) Is the toll-free service facility of IIFL Ltd good? [ ] a) Yes b) No
  75. 75. BIBLIOGRAPHY MARKETING MANAGEMENT : Phillip Kotler MARKETING MANAGEMENT : V.S. Ramaswamy BUSINESS RESEACH METHODOLOGY : C.R. Kothari MARKETING A MANAGERIAL INTRODUCTION : J.C. GANDHI

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