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IIPM 2009

INDIAN INSTITUTE OF PLANNING AND


MANAGEMENT
SS BATCH 2008-2010
INTERNSHIP PROJECT

Prepared By
Chetan Sharma (SD-1)

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Acknowledgement

I thank Mr.Sachin Singh Thakur in particular for assigning me this area of work and
encouraging me to work and perform the in the first place. I owe much to Mr.Sachin
Singh Thakur for his helpful comments.

I am indebted to all those who have been helpful throughout the process of analysing
and gathering facts to write this report – Ms.Harveen, Mr.Naveen, Mr.Ratnesh,
Mr.Ashwani, Ms.Charu but as the cliché goes, I am solely responsible for ay remaining
errors of fact or judgment.

Sachin Singh Thakur


_______________________
(Regional Head (Delhi and NCR))

Religare Advisory and Research

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Serial no Topic Page no.


1 4
2 certificate by faculty guide
3 Acknowledgement
4 executive summary
5 company overview
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Executive summary:

This project has been a great learning experience for me; at the same time it gave me
enough scope to implement my analytical ability. This project as a whole can be divided
into two parts:

 The first part gives an insight about how the Nifty works, what is free float
methodology and what is its importance in calculating the index. Secondly, how

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the correlation analysis can be used to effectively predict and calculate expected
values of the stocks listed on the NSE with a base criteria how to give a investor a
safe price to play within the Intraday segment of investors in stocks listed on the
NSE.

 The second part consists of a market research and strategy building regarding
promotion and brand building of the Religare Branch at Rajouri Garden. Various
techniques used for market research and promotion tools used with an aim to
make a pull strategy for the Branch.

Organization overview
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Introduction:

“Investment Gateway of India” is the message the Organization conveys to its mass market
segment.

Religare, a Ranbaxy promoter group company, is one of the leading integrated financial services
institutions of India.

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The company offers a diverse bouquet of services broadly verticals – Retail, Wealth Management
and the Institutional Spectrums.

The services range from Equities, commodities and insurance broking to wealth advisory,
portfolio management services, personal financial services , investment banking and institutional
broking services.

Religare Enterprises limited is the holding company for all the businesses being operated and
structured through various subsidiaries. Religare`s retail network spreads across the length and
breadth of the country with its presence in more than 1200 locations across more than 375 cities
and towns.

Having spread itself fairly well across the country and with the promise of not resting on its
laurels, it has also aggressively started eyeing global geographies.

Vision Statement:

To build Religare as a globally trusted brand in the financial services domain and present it as
the “Investment Gateway of India”

Mission Statement:

To provide financial care driven by core values of diligence and transparency.

Brand Essence:

Diligent, dynamic, and ethical processes for wealth creation.

Company Overview:

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Spectrum of services offered by Religare:

Retail Spectrum Institutional Spectrum Wealth Spectrum


To cater to a large number of retail To forge and build strong
clients by offering all products relationships with To provide customized wealth
under one roof through branch corporate clients and advisory services to High Net
network and online mode. Institutions. worth individuals(HNIs)
Equity and Commodity Trading Institutional Broking Wealth Advisory Services
Online Investment Portal Investment Banking Portfolio Management
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Services
Priority equity client
personal Financial Services Merchant Banking Services
Mutual Funds Transaction Advisory Arts Initiative
International Advisory Fund
Insurance Corporate Finance Management Service
Savings Insurance Solutions
Personal Credit
Personal Loans
Loans against Shares

Why should investors choose Religare?

• It is the Ranbaxy promoter group company.


• No Annual maintenance charges for their online broking services.
• Diverse portfolios and a lot of products under one roof.
• Has one of the best brokerage plans.
• Attractive brand.
• Relationship managers attached to customers.
• Equity research team (one of the best in the market).

• Controlled and low cost service culture.


• Large volume processing capability
• Adherence to strict time schedule
• Expertise in coordinating multi-location responses.

How Religare achieved it?

The core competency of Religare lies in the following points due to which it enjoys a competitive
edge over its competitors. The following culture adopted by Religare makes it all time favorite
among its clientele:

• Professionally managed by qualified and trained manpower.

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• Uniquely structured in-house software and hardware department

• Query handling within 48 hrs.

• Strong secretarial, accounting and audit systems.

• Unique work culture of working 7 days a week in 3 shifts.

• Unmatched network spreading all over India.

Phase I:
NIFTY Calculation Methodology

NIFTY is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the
level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a
base period. The market capitalization of a company is determined by multiplying the price of its stock by
the number of shares issued by the company. This market capitalization is further multiplied by the free-
float factor to determine the free-float market capitalization.

The base period of NIFTY is 1978-79 and the base value is 100 index points. This is often indicated by the
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notation 1978-79=100. The calculation of NIFTY involves dividing the Free-float market capitalization of 30
companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original
base period value of the NIFTY. It keeps the Index comparable over time and is the adjustment point for all
Index adjustments arising out of corporate actions, replacement of scripts etc. During market hours, prices
of the index scripts, at which latest trades are executed, are used by the trading system to calculate NIFTY
every 15 seconds and disseminated in real time.

Understanding Free-float Methodology


Concept:

Free-float Methodology refers to an index construction methodology that takes into consideration only the
free-float market capitalization of a company for the purpose of index calculation and assigning weight to
stocks in Index. Free-float market capitalization is defined as that proportion of total shares issued by the
company that are readily available for trading in the market. It generally excludes promoters' holding,
government holding, strategic holding and other locked-in shares that will not come to the market for
trading in the normal course. In other words, the market capitalization of each company in a Free-
float index is reduced to the extent of its readily available shares in the market.

Major advantages of Free-float Methodology:

• A Free-float index reflects the market trends more rationally as it takes into consideration only those
shares that are available for trading in the market.
• Free-float Methodology makes the index more broad-based by reducing the concentration of top few
companies in Index. For example, the concentration of top five companies in NIFTY has fallen under
the free-float scenario thereby making the NIFTY more diversified and broad-based.
• A Free-float index aids both active and passive investing styles. It aids active managers by enabling
them to benchmark their fund returns vis-à-vis an investable index. This enables an apple-to-apple
comparison thereby facilitating better evaluation of performance of active managers. Being a
perfectly replicable portfolio of stocks, a Free-float adjusted index is best suited for the passive
managers as it enables them to track the index with the least tracking error.
• Free-float Methodology improves index flexibility in terms of including any stock from the universe
of listed stocks. This improves market coverage and sector coverage of the index. For example,
under a Full-market capitalization methodology, companies with large market capitalization and low
free-float cannot generally be included in the Index because they tend to distort the index by
having an undue influence on the index movement. However, under the Free-float Methodology,
since only the free-float market capitalization of each company is considered for index calculation,
it becomes possible to include such closely held companies in the index while at the same time
preventing their undue influence on the index movement.
• Globally, the Free-float Methodology of index construction is considered to be an industry best
practice and all major index providers like MSCI, FTSE, S&P and STOXX have adopted the same.
MSCI, a leading global index provider, shifted all its indices to the Free-float Methodology in 2002.
The MSCI India Standard Index, which is followed by Foreign Institutional Investors (FIIs) to track
Indian equities, is also based on the Free-float Methodology. NASDAQ-100, the underlying index to
the famous Exchange Traded Fund (ETF) - QQQ is based on the Free-float Methodology.

Definition of Free-float:

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Share holdings held by investors that would not, in the normal course come into the open market for
trading are treated as 'Controlling/ Strategic Holdings' and hence not included in free-float. In specific, the
following categories of holding are generally excluded from the definition of Free-float:

• Holdings by founders/directors/ acquirers which has control element


• Holdings by persons/ bodies with "Controlling Interest"
• Government holding as promoter/acquirer.
• Holdings through the FDI Route
• Strategic stakes by private corporate bodies/ individuals
• Equity held by associate/group companies (cross-holdings)
• Equity held by Employee Welfare Trusts
• Locked-in shares and shares which would not be sold in the open market in normal course.

The remaining shareholders would fall under the Free-float category.

Determining Free-float factors of companies:

NSE has designed a Free-float format, which is filled and submitted by all index companies on a quarterly
basis with the Exchange. (Format available on www.NSEindia.com) The Exchange determines the Free-float
factor for each company based on the detailed information submitted by the companies in the prescribed
format. Free-float factor is a multiple with which the total market capitalization of a company is adjusted to
arrive at the Free-float market capitalization. Once the Free-float of a company is determined, it is rounded-
off to the higher multiple of 5 and each company is categorized into one of the 20 bands given below. A
Free-float factor of say 0.55 means that only 55% of the market capitalization of the company will be
considered for index calculation.

Free-float Bands:

Free-Float Free-Float
% Free-Float % Free-Float
Factor Factor
>0 – 5% 0.05 >50 – 55% 0.55
>5 – 10% 0.10 >55 – 60% 0.60
>10 – 15% 0.15 >60 – 65% 0.65
>15 – 20% 0.20 >65 – 70% 0.70
>20 – 25% 0.25 >70 – 75% 0.75
>25 – 30% 0.30 >75 – 80% 0.80
>30 – 35% 0.35 >80 – 85% 0.85
>35 – 40% 0.40 >85 – 90% 0.90

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>40 – 45% 0.45 >90 – 95% 0.95


>45 – 50% 0.50 >95 – 100% 1.00

Index Closure Algorithm

The closing NIFTY on any trading day is computed taking the weighted average of all the trades on NIFTY
constituents in the last 30 minutes of trading session. If a NIFTY constituent has not traded in the last 30
minutes, the last traded price is taken for computation of the Index closure. If a NIFTY constituent has not
traded at all in a day, then its last day's closing price is taken for computation of Index closure. The use of
Index Closure Algorithm prevents any intentional manipulation of the closing index value.

Maintenance of NIFTY

one of the important aspects of maintaining continuity with the past is to update the base year average.
The base year value adjustment ensures that replacement of stocks in Index, additional issue of capital
and other corporate announcements like 'rights issue' etc. do not destroy the historical value of the index.
The beauty of maintenance lies in the fact that adjustments for corporate actions in the Index should not
per se affect the index values.

The Index Cell of the exchange does the day-to-day maintenance of the index within the broad index policy
framework set by the Index Committee. The Index Cell ensures that NIFTY and all the other NSE indices
maintain their benchmark properties by striking a delicate balance between frequent replacements in
index and maintaining its historical continuity. The Index Committee of the Exchange comprises of experts
on capital markets from all major market segments. They include Academicians, Fund-managers from
leading Mutual Funds, Finance-Journalists, Market Participants, Independent Governing Board members,
and Exchange administration.

On-Line Computation of the Index:

During market hours, prices of the index scrip’s, at which trades are executed, are automatically used by
the trading computer to calculate the NIFTY every 15 seconds and continuously updated on all trading
workstations connected to the NSE trading computer in real time.

Adjustment for Bonus, Rights and Newly issued Capital:

The arithmetic calculation involved in calculating NIFTY is simple, but problem arises when one of the
component stocks pays a bonus or issues rights shares. If no adjustments were made, a discontinuity
would arise between the current value of the index and its previous value despite the non-occurrence of
any economic activity of substance. At the Index Cell of the Exchange, the base value is adjusted, which is
used to alter market capitalization of the component stocks to arrive at the NIFTY value.

The Index Cell of the Exchange keeps a close watch on the events that might affect the index on a regular
basis and carries out daily maintenance of all the 14 Indices.

• Adjustments for Rights Issues:


When a company, included in the compilation of the index, issues right shares, the free-float market
capitalization of that company is increased by the number of additional shares issued based on the
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theoretical (ex-right) price. An offsetting or proportionate adjustment is then made to the Base
Market Capitalization (see 'Base Market Capitalization Adjustment' below).

• Adjustments for Bonus Issue:


When a company, included in the compilation of the index, issues bonus shares, the market
capitalization of that company does not undergo any change. Therefore, there is no change in the
Base Market Capitalization, only the 'number of shares' in the formula is updated.

• Other Issues:
Base Market Capitalization Adjustment is required when new shares are issued by way of
conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of buy-back of
shares, corporate restructuring etc.

• Base Market Capitalization Adjustment: (changes only in case of a new company or a


rights issue)

The formula for adjusting the Base Market Capitalization is as follows:

New Market
Capitalization

New Base Market Old Base Market ---------------------------------


= x
Capitalization Capitalization ------

Old Market
Capitalization

To illustrate, suppose a company issues right shares which increases the market capitalization of
the shares of that company by say, Rs.100 crores. The existing Base Market Capitalization (Old
Base Market Capitalization), say, is Rs.2450 crores and the aggregate market capitalization of all
the shares included in the index before the right issue is made is, say Rs.4781 crores. The "New
Base Market Capitalization” will then be:

2450 x This figure of 2501.24 will be used as the Base Market


(4781+100) Capitalization for calculating the index number from then
onwards till the next base change becomes necessary.
---------------------- Rs.2501.24
=
---- crores

4781

Criteria for Selection and Review of NIFTY Constituents

The scrip selection and review policy for NSE Indices is based on the objective of:

• Improvement

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• Transparency
• Simplicity

Qualification Criteria:

The general guidelines for selection of constituent scrip’s in NIFTY are as follows:

A. Quantitative Criteria:

• Final Rank:

The scrip should figure in the top 100 companies listed by Final Rank. The final rank is arrived at by
assigning 75% weight age to the rank on the basis of six-month average full market capitalization
and 25% weight age to the liquidity rank based on six-month average daily turnover & six-month
average impact cost.

• Trading Frequency:

The scrip should have been traded on each and every trading day for the last six months.
Exceptions can be made for extreme reasons like scrip suspension etc.

• Market Capitalization Weight age:

The weight of each scrip in NIFTY based on six-month average Free-Float market capitalization
should be at least 0.5% of the Index.

• Industry Representation:

Scrip selection would take into account a balanced representation of the listed companies in the
universe of NSE. The index companies should be leaders in their industry group.

• Listed History:

The scrip should have a listing history of at least 3 months on NSE. However, the Committee may
relax the criteria under exceptional circumstances.

Beta

Risk is an important consideration in holding any portfolio. The risk in holding securities is generally associated with
the possibility that realised returns will be less than the returns expected.

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Risks can be classified as Systematic risks and Unsystematic risks.

• Unsystematic risks:
These are risks that are unique to a firm or industry. Factors such as management capability, consumer
preferences, labour, etc. contribute to unsystematic risks. Unsystematic risks are controllable by nature and
can be considerably reduced by sufficiently diversifying one's portfolio.
• Systematic risks:
These are risks associated with the economic, political, sociological and other macro-level changes. They affect
the entire market as a whole and cannot be controlled or eliminated merely by diversifying one's portfolio.

What is Beta?

The degree, to which different portfolios are affected by these systematic risks as compared to the effect on the
market as a whole, is different and is measured by Beta. To put it differently, the systematic risks of various securities
differ due to their relationships with the market. The Beta factor describes the movement in a stock's or a portfolio's
returns in relation to that of the market return. For all practical purposes, the market returns are measured by the
returns on the index (Nifty, Mid-cap etc.), since the index is a good reflector of the market.

Methodology / Formula

Beta is calculated as:

where,
Y is the returns on your portfolio or stock - DEPENDENT VARIABLE
X is the market returns or index - INDEPENDENT VARIABLE
Variance is the square of standard deviation.
Covariance is a statistic that measures how two variables co-vary, and is given by:

Where, N denotes the total number of observations, and and respectively represent the arithmetic averages of x
and y.

In order to calculate the beta of a portfolio, multiply the weightage of each stock in the portfolio with its beta value to
arrive at the weighted average beta of the portfolio

Standard Deviation

Standard Deviation is a statistical tool, which measures the variability of returns from the expected value, or volatility.
It is denoted by sigma(s) . It is calculated using the formula mentioned below:

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Where, is the sample mean, xi’s are the observations (returns), and N is the total number of observations or the
sample size.

The Concept of Impact Cost


Impact Cost

Introduction

Liquidity in the context of stock markets means a market where large orders can be executed without incurring a high
transaction cost. The transaction cost referred here is not the fixed costs typically incurred like brokerage, transaction
charges, depository charges etc. but is the cost attributable to lack of market liquidity as explained subsequently.
Liquidity comes from the buyers and sellers in the market, who are constantly on the lookout for buying and selling
opportunities. Lack of liquidity translates into a high cost for buyers and sellers.

The electronic limit order book (ELOB) as available on NSE is an ideal provider of market liquidity. This style of
market dispenses with market makers, and allows anyone in the market to execute orders against the best available
counter orders. The market may thus be thought of as possessing liquidity in terms of outstanding orders lying on the
buy and sell side of the order book, which represent the intention to buy or sell.

When a buyer or seller approaches the market with an intention to buy a particular stock, he can execute his buy order
in the stock against such sell orders, which are already lying in the order book, and vice versa.

An example of an order book for a stock at a point in time is detailed below:

Buy Sell
Sr.No. Quantity Price Quantity Price Sr. No.
1 1000 3.50 2000 4.00 5
2 1000 3.40 1000 4.05 6
3 2000 3.40 500 4.20 7
4 1000 3.30 100 4.25 8

There are four buy and four sell orders lying in the order book. The difference between the best buy and the best sell
orders (in this case, Rs.0.50) is the bid-ask spread. If a person places an order to buy 100 shares, it would be
matched against the best available sell order at Rs. 4 i.e. he would buy 100 shares for Rs. 4. If he places a sell order
for 100 shares, it would be matched against the best available buy order at Rs. 3.50 i.e. the shares would be sold at
Rs.3.5.

Hence if a person buys 100 shares and sells them immediately, he is poorer by the bid-ask spread. This spread may be
regarded as the transaction cost which the market charges for the privilege of trading (for a transaction size of 100
shares).

Progressing further, it may be observed that the bid-ask spread as specified above is valid for an order size of 100
shares upto 1000 shares. However for a larger order size the transaction cost would be quite different from the bid-ask
spread.

Suppose a person wants to buy and then sell 3000 shares. The sell order will hit the following buy orders:
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Sr. Quantity Price


1 1000 3.50
2 1000 3.40
3 1000 3.40

while the buy order will hit the following sell orders :

Quantity Price Sr.


2000 4.00 5
1000 4.05 6

This implies an increased transaction cost for an order size of 3000 shares in comparison to the impact cost for order
for 100 shares. The "bid-ask spread" therefore conveys transaction cost for a small trade.

This brings us to the concept of impact cost. We start by defining the ideal price as the average of the best bid and
offer price, in the above example it is (3.5+4)/2, i.e. 3.75. In an infinitely liquid market, it would be possible to execute
large transactions on both buy and sell at prices which are very close to the ideal price of Rs.3.75. In reality, more than
Rs.3.75 per share may be paid while buying and less than Rs.3.75 per share may be received while selling. Such
percentage degradation that is experienced vis-à-vis the ideal price, when shares are bought or sold, is called impact
cost.

Impact cost varies with transaction size.

For example, in the above order book, a sell order for 4000 shares will be executed as follows:

Sr. Quantity Price Value


1 1000 3.50 3500
2 1000 3.40 3400
3 2000 3.40 6800
Total value 13700
Wt. average price 3.43

The sale price for 4000 shares is Rs.3.43, which is 8.53% worse than the ideal price of Rs.3.75. Hence we say "The
impact cost faced in buying 4000 shares is 8.53%".

Definition

Impact cost represents the cost of executing a transaction in a given stock, for a specific predefined order size, at any
given point of time.

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Impact cost is a practical and realistic measure of market liquidity; it is closer to the true cost of execution faced by a
trader in comparison to the bid-ask spread.

It should however be emphasized that:

(a) impact cost is separately computed for buy and sell


(b) impact cost may vary for different transaction sizes
(c) impact cost is dynamic and depends on the outstanding orders
(d) where a stock is not sufficiently liquid, a penal impact cost is applied

In mathematical terms it is the percentage mark up observed while buying / selling the desired quantity of a stock with
reference to its ideal price (best buy + best sell) / 2.

Example A:

ORDER BOOK SNAPSHOT


Buy Quantity Buy Price Sell Quantity Sell Price
1000 98 1000 99
2000 97 1500 100
1000 96 1000 101

TO BUY 1500 SHARES

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Phase II:
Pull Marketing Strategy
(Marketing Plan).
Branch: Rajouri Gardens

Process:
1. Segmentation
2. Target Market Selection.
3. Positioning the Brand and the Branch.
4. Selection of Various Tools for Various Segments.
5. Analysis of the design and Effectiveness of Tools in the local market.
6. Define how Value Creation and Delivery Sequence would
differentiate between choosing the value and communicating the
value.
7. The Pull Strategy Designing.

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8. The Pull Strategy Implementation.

Segmentation:
Branch: Rajouri Garden.
Initially we divide the consumer market in Rajouri Garden into 4 basic
categories:
1. Potential New Entrants.
2. Existing Investors and Customers.
3. Present Investors which are not active.

4. Brand Switchers (Opportunity Cost Effect).

Target Market:
1. A market which consists of 10% on HNW customers and residing on

mainly a concentrated mix of high middle class population.


2. A posh residency and commercial retail area with a huge consumer
potential.

Positioning:
1. In amidst of a financial repercussion and global recession we are trying
to Position our Brand and Branch as a change which has arrived in
Rajouri Garden.
2. A Change which reflects a more efficient and secure way of Investment
and Equity, Commodity Trading on the Strength of a world class Equity
Research Center and a Unique mix of Investment products diversified
both horizontally and vertically into product lines.

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3. A Value positioning of the Branch as one of its kind in Delhi, Offering a


mix of all possible (life insurances), Online Retail Equity and
Commodity Trading Products.
4. A Brand Proposition of making consumer identifies the Branch and the

Brand as a revolution in terms of Corporate Governance, Customer


Satisfaction and Product value.

Tools to be used:
1. Identification of MK opportunities or (SWSPS).
2. Promotion – Advertorials , SMS campaigns
3. Paper Mail - Huge Hit around all the sectors in India Esp Banking..

4. Word of mouth advertising.


5. Strategic business alliances ( New Hit )
6. Promotion from the building.
7. Pamphlet distribution.
8. Hoardings and Banners at relevant Metro Stations.

Company, Product and Market Definition:

Company Product Market Definition


Definition

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Religare Securities We sell Life Insurances,We market Trust,


Consumer Finance,Corporate governance
Equity and Commodityand Consumer Value.
Trading Instruments.

Tools Utilized:
Banners at the METRO
Advantages:
 More than 12 lakh people commute by Delhi metro on a daily basis.
 The Brand gets exposure of 17.30 hrs daily (6:00 am to 11:30 pm)
 Target Metro Stations (Rajouri Garden, Tagore Garden)

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Costing:
a)Rajouri Garden
• Station: Rajouri Garden
• Media : Platform
• Size : 10 x 5 sq ft. , Backlit
• Discounted rates for one month : Rs.28000
• Avg. Rate per Sq. ft : Rs.560
• Printing Charges: Rs.20 per Sq.ft (Rs.1000)
• Frontlit Charges: Rs.10 per Sq.ft (Rs.500)
• Total Cost for 1 Month: Rs.29500.
• Avg Cost per passenger: .10 paise.

b) Ramesh Nagar
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• Station: Rajouri Garden


• Media : Platform
• Size : 10 x 5 sq ft. , Backlit
• Discounted rates for one month : Rs.25000
• Avg. Rate per Sq. ft : Rs.500
• Printing Charges: Rs.20 per Sq.ft (Rs.1000)
• Frontlit Charges: Rs.10 per Sq.ft (Rs.500)
• Total Cost for 1 Month: Rs.26500.
• Avg Cost per passenger: .08 paise.

TRAIN DETAILS:
• Each train comprising of 4 cars
• 2 motorized (1st and last ) and 2 trailers
• How Spacious:
• Each coach has seating for 60 passengers,
• With space for 325 standing passengers
• How Often:
• Availability – Avg of every 6 minutes.
• Avg of total no of passengers travelling: 5, 39,000.

Sample:

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Promotion from the building:

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Paper Mail Design:

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Pamphlet Design 1:

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Pamphlet Design 2:

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Metro Banner1:

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Metro Banner2:

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Religare, ICICI Direct


COMPARITIVE MARKET ANALYSIS

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SWOT (ICICI DIRECT)


Strengths
• Big Brand name, the customer knows the brand and trusts the brand.
• Huge market capitalization, in terms of branches, volumes and products.

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• Very Diverse products and is a very trusted name in the financial sector.
• Huge budget capacity for advertising, promotion and personal selling adding to
unparalleled advantage.

Weaknesses
• Non Performing website (Often down during market hours)
• Very high comparative brokerage
• Client databases and portfolios not updated on time
• Voted as the worst site for trading by their customers.
• Lot of hidden charges.
• No relationship Managers for customers
• Non satisfying service in relation to the Brand.

Opportunities:
• To gain and build on the value system and create a perfect example of corporate
social responsibility.
• To exploit the trust and the brand value to full potential and build a more customer
satisfying process.

Threats :
• Companies like religare/Indiabulls are fiercely competing for supremacy even
though 50%
Of the market share is owned by ICICI securities.
• Customers are slipping from the kitty due to high costs and a comparative low
cost of shifting
To companies like Religare and Indiabulls.

SWOT ANALYSIS (RELIGARE)


STRENGTHS

It is the Ranbaxy promoter group company.


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No Annual maintenance charges for their online broking services.


Diverse portfolios and a lot of products under one roof.
Has one of the best brokerage plans.
Attractive brand.
Relationship managers attached to customers.
Equity research team (one of the best in the market).
WEAKNESS
It has changed its name from FORTIS to RELIGARE where the maximum customers don’t
know about this.
Non performing website as reported by customers.
Customer satisfaction on customer care calls is non satisfactory and often termed as
“unprofessional”.
OPPORTUNITY
Financial services sector in India is growing by leaps and bounds.
In the upcoming days RELIGARE is coming up with their own mutual fund and Banking.
THREATS
Cut-throat competition from corporate big houses like Reliance and ICICI
As they have changed the name of their company the customer still did not know about
RELIGARE.

Products with Religare


Religare products are well known for Online Trading,
Offline Trading, Portfolio Management Services,
Commodity Trading and Intuitional Broking services.

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Comparative advantages of products:


 Fixed Brokerage and Exposure
 Call center support provided for trading, back-office and IT support
 Minimum branch level support
 Fully automated processes
 Feature-rich software
 Interest on cash margin deposited with Religare
 Target Group – Mass Market
 USP:

 Interest on cash margin deposited with Religare


 Better quality product at competitive brokerage

Consumer behavior on recession Investing


• The consumer wants to invest with a long-term strategy instead of
Short-term. Short-term investing is for those people, who are game for
Day trading in equity markets.
• Consumers are preferring low-risk investment such as cash deposits,
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IIPM 2009

Market money funds and property.

• In commodities: anything except gold a it has been to volatile and is directly related to the US$.

• Educated consumers believe that this recession n is an opportunity


to invest in undervalued stocks and land prices.
• Whereas on the other hand uneducated consumers believe that
it`s a time when you need to save your money and if they will invest
they will loose their hard earned money.

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