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Analysis of Demat Account and
Marketing Strategies of
Sharekhan
SUBMITTED BY : DEVANSH AGGARWAL
COURSE: MBA(GEN) 2016-17
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SHAREKHAN LTD.
Sharekhan is among the top brokerage house in India that has a strong online
trading platform. Sharekhan was incorporated in February 2000 and it is India’s 2nd
largest stock broker the leading one is ICICI Direct. It provides its services through
its online trading website Sharekhan.com. this website has seen a huge growth over
last 10 years and it has proved itself as a successful online trading platform and
located in almost every part of India. As its presence, it has office in UAE and
Oman. It offers its services to all kinds of customers including retail investors and
traders, big corporate houses, institutional bodies and NRI’s Sharekhan hold more
than 18 lakh customers. Sharekhan.com is voted as one of the finest investment
portal for Indian stock market. It has a well-designed website that provides wide
range on investment options, news of share market, in depth research reports,
quotes of stock, statistical and fundamental information across equity, IPOs,
Mutual Funds etc. As per the interactions with existing investors, they find the web
portal of Sharekhan easy and convenient to navigate.
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Key Features of Sharekhan Ltd.
• Software support
• Web Portal
• Mobile application
• Online fund transfer
• Mobile alerts
• Advisory services
• Active training cell
• Market Research Reports
Products Offered by Sharekhan Ltd.
• Equity
• Derivatives
• Commodity
• Currency
• Mutual funds
• Initial public offer (IPO)
• Ignite
• Portfolio Management System
• Bonds
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Demat Account
Demat account refers to Dematerialized account. It is a type of account that lets customer
dematerialize their paper based physical shares. It is required when one wants to hold the
shares that they buy online. For holding and keeping shares, having a demat account is
must. For opening a demat account, one has the option to either approach their bank or get it
opened through a brokerage firm. Sharekhan ltd. Is one of the registered brokerage firm
where demat account can be opened.
Benefits of Demat account:
• Easy and convenient way to hold securities
• Immediate transfer of securities
• No stamp duty on transfer of securities
• Safer than paper-shares (earlier risks associated with physical certificates such as bad
delivery, fake securities, delays, thefts etc. are mostly eliminated)
• Reduced paperwork for transfer of securities
• Reduced transaction cost
• No "odd lot" problem: even one share can be sold
• Transmission of securities is done by DP, eliminating the need for notifying companies.
• A single demat account can hold investments in both equity and debt instruments.
• Traders can work from anywhere (e.g. even from home).
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MARKETING STRATEGIES OF SHAREKHAN
• E-Mail Marketing
• Free Seminars
• Corporate Activities
• Tele-calling
• Online Advertising
• Direct Marketing
• Hiring Trainees
• Feedback
• Personal Advisors
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OBJECTIVE
• To generate leads for opening new Demat a/c.
• To study the competitors marketing strategies to make appropriate changes in
the companies, current marketing techniques to attract more and more
customers to Sharekhan ltd.
• Checking the satisfaction level of customers after using services of Sharekhan.
• Studying the brokerage rate of other companies so that we can offer lesser
brokerage.
• Contacting with those customers who have visited the Sharekhan website.
• Attending calls of customers, who have some queries related to services
provided by Sharekhan.
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AUTHOR RESULT
Goswami, (2003) He did the research to understand the needs of the
customers, compare them with the offerings of the
websites, identify gaps if any, and suggest possible
solutions. This research is related to online
trading.
Singhal, (2008) To explore the major factors that are responsible
for internet banking based on respondents’
perception on various internet applications.
Kafeel, (2010) “Customer attitude towards online trading”
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AUTHOR RESULT
Dr. J. Singh, (2012) This research is done on the benefits of Demat
Account, the process of Demat conversion and
fees involved.
Nishikant Kumar, (2012) “The Other Side of Demat- an Introspection”
attempted to understand the factors responsible
to the people for not investing in share market
even having Demat Account.
Inderbir, (2013) The study is on the preference of investors
between Demat & Remat account and the
awareness regarding depositories and its various
laws.
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RESEARCH METHODOLOGY
In this report, Descriptive Research Design is used in which survey method is used as the
participants answer questions administered through questionnaires.
The data collection method is both primary and secondary data.
• Primary Data
This includes the data collected from the personal interaction with the customers of Sharekhan
Ltd and through online distribution of questionnaire among people so that we can get responses
from those people also who don’t have demat account in any company and we can spread
awareness in them by this questionnaire.
• Secondary Data
This includes the lectures delivered by the managers and superintendents of respective
departments and by attending seminars held by Sharekhan ltd. The data was also collected from
the brochures and material provided by Sharekhan ltd, magazines, Economic Times, various
book relating to investments, capital market and other related topics, research papers and
journals, online websites etc.
Sampling Technique Used: Convenience Sampling and Judgmental Sampling
Limitations of the Study: The study is confined to gather information about demat account
opening procedure and marketing strategies of Sharekhan only. The sample size we have taken
is unlimited so there are variety of answers on same question which makes analysis part little
difficult.
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ANALYSIS
Q1. Do you currently have any demat account? * Q2. If yes, in which company do you have demat account?
If yes, In which company do you have demat account?
Total
Reliance
Money Sharekhan
ICICI
Direct Karvy
Angel
Broking
Kotak
Securities
HDFC
Securities Others
Do you currently have
any demat account?
Yes 1 16 4 2 2 1 1 2 29
Total 1 16 4 2 2 1 1 2 29
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FINDINGS
• We can interpret that 58% of people say yes and most of the people have their demat
account in Sharekhan ltd as the data we collected is majorly collected from the client base
of sharekhan through tele calling and emails.
• Through above analysis we can easily say that the people are aware about the Demat
Account through internet and after that other advertising sources.
• In this analysis, we got to know that people are attracted to Short Term Investment and
people don’t want to invest their money for more than 1 year in the stock market and
other financial instruments.
• Above analysis proved us that sharekhan is well known in the market as when we have
taken survey from people other than having demat account in sharekhan, they are known
to Sharekhan as a brokerage firm.
• The primary data we collected shows that the Internet Advertisements are the best
marketing tool used by sharekhan for attracting customers.
• The people in this survey are mostly graduates that are satisfied from the services of
sharekhan.
• The sample in this survey are not sure about the marketing strategies of sharekhan as they
are not known to that.
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• Most of the sample from business profession even said that the knowledge
related to placement and cancellation of order is important for online
trading.
• The services are considered as one of the most important in eyes of people
as majority of people thinks that services are most important when we talk
about brokerage companies.
• The survey shows that people know about sharekhan but they are not aware
about the services which are provided by sharekhan most of them are known
to the sharekhan mobile application and trade tiger software of sharekhan
other services are not very popular among the respondents.
• Respondents not having their demat account in sharekhan are also known
about the sharekhan web portals and mobile application.
• From the data collected interpretation can be made that males are more
aware about the services of Sharekhan ltd as compare to female respondents.
• In total 58% respondents said yes that they have a demat account that means
the data we collected have more respondents using demat account or doing
online trading in the stock market some of them are aware about the services
provided by sharekhan.
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SUGGESTIONS
• Company has an advantage of reach out its customer so the customer who are
new they need relationship managers who will tell them about investment so a
relationship manager should be provided to all customer on demand. This will
lead to customer satisfaction and will lead to have more references from the
satisfied customer.
• The company will also have the advantage of getting more customers if they do
the revision of brokerage charges so that the customer who is looking for the
less brokerage can open an account in sharekhan. Also, the company should
take into consideration the different proposal where the brokerage charges can
be reduced for a new client.
• The company should revise the advertising strategy to increase its brand
awareness. Through survey we can see that most of the clients are attached
through internet advertising so sharekhan should increase its advertising on
television so that maximum market can be targeted.
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CONCLUSION
• In this we have compared the marketing strategies of Sharekhan with other
companies’ respondents seems little confused as most of them said maybe
when we asked about the status of marketing strategies of sharekhan. We
can easily see that people are more eager to have better services only
service is the demand of respondents.
• When we talk about investment most of the respondents said that they want
to have short term investment which is quite shocking as when we started
our research work we were quite convinced that people want to have long
term investment but this study proved us wrong, respondents don’t want to
invest for long time as market is very unpredictable and unstable so
everyone wants to book profit and take exit from the market.
• The study that we conducted thus provided us valuable insights about the
investment and trading behavior of the investors of Sharekhan Ltd.
Through study we got to know the Sharekhan Ltd. actual status in the
market and what are the views of sharekhan clients towards Sharekhan’s
services.
