Professional Documents
Culture Documents
REPORT
ON
MANAGEMENT THESIS I
FINAL REPORT
Project on
Mr.Nagaraja
Submitted by:
Rakesh.B.M
Introduction:-
Customers are the life blood of the business. without them, companies are out of
business, fast. The majority of their energy will be expanded acquiring and keeping
customers at their business.
1.Customer benefits:-
The business is not about the company, it is about the company’s customer. The focus of
heir business shouldn’t be on themselves; rather it should focus on their customers. They
are not really interested in how long they have been in business or how much education
they have. Customers are interested in what the business can do or provide for them. We
call these ”customer benefits”.
New customers are the hardest and most expensive to get. Company will spend more
time, more money, more energy attracting new customers to their business. If they are
just starting a business, listen closely, because their success here will determine wheather
they are in business two years from now. Once they’ve acquired some new customers,
can quickly move to he other two levels.
3.Repeat Customers:-
Once the company acquired a new customer, they should immediately work towards the
next two levels, repeat and referral customers.
4.Referral customers:-
The key to referral business is to ask their repeat customers to refer to their friends and
business associates. If they are giving good service and have good product at a fair price,
their existing customers will be happyto refer to others. All they have to do is take the
initiative and ask to them. This can be done in variety of ways.
BASIS OF COMPARISONS
With the aim to make comparative analysis between the two retail outlets with respect to
customer acquisition strategies; is done considering following factor:
• Reinforced customer
• Convenience
• Acquisition strategies
Customer-Loyal profitability analysis is to compare the most profitable segment for the
retail outlets.
INRODUCTION OF CUSTOMER ACQUISITION
STRATEGY:
Many companies have adopted customer relationship management (CRM) systems that
can support both acquisition and retention by gatgering data from every contact with
prospects and customers. Just collecting data should not be an end unto itself, howerer
the real focus should be on developing a data strategy and tuning the CRM system to help
their company acquire and retain customers.
INDUSTRY PROFILE
Retail Industry
Retailing is one of the pillars of the economy in India and accounts for 35% of GDP.(1)
The retail industry is divided into organized and unorganized sectors. Over 12 million
outlets operate in the country and only 4% of them being larger than 500 sq ft (46 m²) in
size. Organized retailing refers to trading activities undertaken by licensed retailers, that
is, those who are registered for sales tax, income tax, etc. These include the corporate-
backed hypermarkets and retail chains, and also the privately owned large retail
businesses. Unorganized retailing, on the other hand, refers to the traditional formats of
low-cost retailing, for example, the local kirana shops, owner manned general stores,
beedi shops, convenience stores, hand cart and pavement vendors, etc.
Growth
An increasing number of people in India are turning to the services sector for
employment due to the relative low compensation offered by the traditional agriculture
and manufacturing sectors. The organized retail market is growing at 35 percent annually
while growth of unorganized retail sector is pegged at 6 percent.
The Retail Business in India is currently at the point of inflection. Rapid change with
investments to the tune of US $ 25 billion is being planned by several Indian and
multinational companies in the next 5 years. It is a huge industry in terms of size and
according to management consulting firm Technopak Advisors Pvt. Ltd., it is valued at
about US $ 350 billion. Organized retail is expected to garner about 16-18 percent of the
total retail market (US $ 65-75 billion) in the next 5 years.
India has topped the AT Kearney’s annual Global Retail Development Index (GRDI) for
the third consecutive year, maintaining its position as the most attractive market for retail
investment. The Indian economy has registered a growth of 8% for 2007. The prediction
for 2008 is 7.9%. The enormous growth of the retail industry has created a huge demand
for real estate. Property developers are creating retail real estate at an aggressive pace and
by 2010, 300 malls are estimated to be operational in the country.
With over 1,000 hypermarkets and 3,000 supermarkets projected to come up by 2011,
India will need additional retail space of 700,000,000 sq ft (65,000,000 m²) as compared
to today. Current projections on construction point to a supply of just 200,000,000 sq ft
(19,000,000 m²), leaving a gap of 500,000,000 sq ft (46,000,000 m²) that needs to be
filled, at a cost of US$15-18 billion.
The break-up of organized retailing sales into various product categories (12)
Books, Music & Gifts: 3% Mobile Handsets: 3% Clothing & Textile: 39% Food &
Grocery: 11% Consumer Durables: 9% Footwear: 9% Furniture & Furnishings: 8%
Catering Services: 7% Jewellery & Watches: 7% Others: 4%
The low-intensity entry of the diversified Mahindra Group into retail is unique because it
plans to focus on lifestyle products. The Mahindra group is the fourth large Indian
business group to enter the business of retail after Reliance Industries Ltd, the Aditya
Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on
perishables and groceries, or a range of products, or both.
RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super,
Daily & Fresh
The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, Titan
Industries with World of Titans showrooms, Tanishq outlets, Chroma.
13%
27%
100 85 81
80
55
60
40 36
40 30
20 20
20 3
0
USA
Malaysia
Taiwan
India
Brazil
Indonesia
China
Thailand
Poland
Key Players
1400 120
1264
1203 107
1200 1146
1092 100
1040
990
1000 943 85
80
800 68
Rs '000 Cr
Rs '000 Cr
60
55
600
44
40
400 35
28
20
200
0 0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Total Retailing Market ( Rs '000 Cr) Organized Retailing (Rs '000 Cr)
Regulatory
Corporate
Affairs * Process Assurance responsible for Quality and designing processes for Buy, Move
Legal
and Sell
Functions
** Franchisee format for Categories depending on nature, size and complexity 1
COMPANY PROFILE
Reliance money
Reliance Money, the financial products retail arm of Reliance Capital, a company owned
by the Anil Dhirubhai Ambani Group (ADAG), has decided to expand distribution
network in rural areas. Reliance Money is involved in selling financial products like life
insurance, general insurance and mutual funds.
In a massive inclusive growth initiative, first of its kind in Indian corporate history, which
would provide employment to 50,000 rural youth, the company has decided to extend its
rural reach this fiscal by setting up 10,000 franchisee outlets in 5,165 of the 5,645 tehsils
(talukas) of the country, according to a Hindu Business Line report.
Reliance Money has already idenfied and appointed franchisee partners in 1,001 tehsils
with the help of Rural Relations, a rural consumer-focused organisation. Reliance ADAG
expects to garner 10 to 20% of its total business through this rural thrust.
They will not adopt a plain vanilla financial services approach, but prepare an area-
specific basket of products, said Sudip Bandopadhyay, Director and CEO, Reliance
Money. This basket of products, among others, could include insurance plans for cattle,
crop, bullock cart and tractor, term insurances (Rs 25 to Rs 50 pay out for a yearâ™s
coverage), and Systematic Investment Plans (monthly installment of Rs 50 to100).
While the company has already established its presence in Maharashtra, Andhra Pradesh,
Karnataka, Madhya Pradesh, Gujarat and West Bengal, it is now expanding into
Uttarachal, Chhattisgarh, Rajasthan, Tamil Nadu and Orissa.
Reliance Capital has announced its foray into the brokerage business through Reliance
Money promoted by Anil Dhirubhai Ambani Group firm Reliance Capital. Reliance
Money will offer a 'fixed' flat fee structure and would offer highly competitive rates
based on the flat fee structure instead of the contemporary system where investors pay
brokerage fees (percentage) for each transaction conducted in the stock markets.
Reliance Money would offer the brokerage services across 700 cities including Delhi and
Mumbai through more than 3,000 outlets.
Investors would need to pay brokerage at the rate of Rs 15 per assisted trade (from
Reliance's Franchisee or call center) and can trade free using online trading portal (fixed
fee of Rs500 for delivery trades up to Rs 5 lakh and / or non-delivery trades up to Rs 5
lakh, with validity period of one year), the company said.
Industry rates vary between 0.4 per cent to 0.85 per cent for delivery trades and between
0.05 per cent and 0.10 per cent for non-delivery trades Reliance's demat offers four
options for trading.
Online Option: One can trade on his PC on our online portals.
Reliance provides three online portals named
Fast Trade
Easy Trade
Instra Trade.
Offline Option: One can do assisted trade on Reliance's Franchisee Office on Software
named Fast Trade.
On Kiosks: One can use Reliance's Kiosks for online trading with usage cost of 50p/min.
Call Center: One can trade on phone by dialing '39886000' followed by local city code.
In january ending Reliance Capital has launched his PMS (Portfolio Management
Service). Again the Relaince has come with very innovative concept, with minimum
ticket size of 5 Lakhs. The PMS of Reliance has two product categories:
PMS Growth
PMS Value
The core service for private clients is their Portfolio Management Service.
• Operating a bank account for the portfolio/s - receiving all contributions, sales proceeds,
dividends, interest, distributions, etc and paying all purchases, transactions costs, taxes
and fees, pensions etc. and undertaking regular reconciliations of the bank account
• Administration of the portfolio as the registered address for all investments and provision
of safe custody of all investment holdings and records
o Accurate recording of all transactions (including tax impacts) in easy to follow
reporting formats designed to meet both investor and accounting needs
o Comprehensive quarterly reporting - portfolio valuation, portfolio income and
expense, portfolio purchases and sales, portfolio performance, asset allocation
and full bank statements
o Read-only Internet access to monitor the portfolio/s
o Quarterly economic and financial markets commentary and outlook
o Quarterly reviews of the investment strategy to determine its continued relevance
and appropriateness given changing circumstances
o Quarterly analysis of the portfolio against benchmarks as well as analysis of each
individual investment held;
o Priority allocations in new issues, floats and placements
o Pro-active advice on all corporate actions - mergers and acquisitions, capital
reconstructions, buybacks, rights issues, entitlements, etc
o Pro-active advice between reports identifying investment opportunities and risks
that may arise
o Unlimited access to advisors, together with regular meetings to facilitate the
above in a disciplined fashion
You should note that the Portfolio Management Service is a non-discretionary service.
We will never undertake any investment transaction or make any monetary transfer from
a bank account without your prior authorization.
You should also note that your portfolio/s will be totally portable should you wish to end
your relationship with us. All investments are registered in your name/s and we typically
do not use CHESS securities sponsorship or administrative platforms that lock you in to
particular brokers or financial service providers.
Needs/Objectives/Risk Tolerance
To establish your needs, objectives and risk tolerance, they will ask you to complete the
Client Questionnaire for an:
They will also ask you to complete the Risk Profile Questionnaire for an understanding of
your tolerance to investment losses and portfolio fluctuations.
They will recommend an overall asset allocation which proposes a split between growth
and defensive assets and suggested exposures to shares, property, fixed interest and cash.
They will also undertake, pursuant to our Portfolio Construction Guidelines, the process
of portfolio construction for you which involves consideration of the best way to get
exposure to each asset class. This will in turn involve decisions on the allocation
between:
Within each asset class their preferred way of investing is likely to include:
International Shares
• Wholesale managers
• Index and active
• Region and sector-specific fund managers
• Bias towards value and small cap styles
• Active hedging
Australian Shares
Property
• Wholesale managers
• Index managers
• Fully hedged managers
• Credit and high yield managers
Australian Fixed Interest
Alternatives
Investment Selection
• Reviews the available pool of >10,000 managed funds and >1,700 ASX shares
• Researched by full-time three person in-house research team
• Uses specialist external research as required
• Investments are authorized by in-house Investment Committee
• Ensures over 200 authorized investments are available to our clients
Investment Implementation
Daily monitoring of the portfolio/s is made possible by the use of real time market data
by our in-house team who access specialty external research as required and the resources
of our six member Broker Panel. Investment monitoring entails:
Portfolio Reporting
For our standard Portfolio Management Service all clients receive comprehensive
quarterly reports including:
• Portfolio Valuation
• Portfolio Asset Allocation
• Portfolio Income and Expense
• Portfolio Purchase and Sale
• Portfolio Performance
• Bank Statements
• Regular accountability back to targets and benchmarks
The main aim of the present study is to accomplish the following objectives:
To find out the perception of the customers about the portfolio management
services provided by reliance money.
To find out if there is any change in the service standards of the investment
opportunities in the company.
LIMITATIONS
The sample size selected will be limited to draw a common conclusion for the whole
population.
The research objective is to find out the perception of the customers about the services
provided. And risk involved in investing 5lakh rupees in a single payment.
c)Sampling Design:
i) Sampling units:
The respondents of the questionnaire are categorized are the customers of
the Reliance money.
The respondents were interviewed with the help of a well structured questionnaire
and will be interviewed personally to gather the required information.
Primary Data: Primary Data will be collected from Reliance money Ltd.,
clients who are already using the services of Reliance for the descriptive
information. The purpose of this study is to find out perception of clients in the
book of Reliance money Ltd., etc. The sources of collection secondary data are:
1. Books
2. Websites
3. Magazine
4. Brochure
Method of contact will be Personal Interview for the following reasons:
Cost
Speed
Response rate
Geographical Flexibility
Interviewer bias
Quality of response.
d)Analysis
This involves the conversion of raw data into useful information. To analyze each
questionnaire of the respondents and to do a critical study on the response to each answer
of the respondents.
Report research findings: The report with the research findings is a formal written
document. The research finding and personal experience will be used to propose the
recommendations.
RESEARCH METHODOLOGY
MARKETING RESEARCH
Marketing research covers the field of problems, techniques, and other aspects of
economic unit in respect of its various constituents such as consumers, buyers, and
sellers. It studies their response pattern towards prize, promotion, purchasing power,
and loyalty towards specific brands and similar other marketing activities. It also tries
to determine the contribution of other relevant factors such as habits, consumers, and
• The research design adopted for this study is exploratory research design.
kinds.
RESEARCH INSTRUMENT
SAMPLE SIZE
• A sample of 100 people will be taken for the survey. Business persons,
• Further these are only the people based on whom analysis and interpretation is
done.
SAMPLING METHOD
• Random sampling method will be chosen to conduct the survey in which the
Methodology:
• The study will be conducted by Personal Interview with the customers who
• Observing & studying the behavior of the customers & their demand towards
• The study on the customer satisfaction level that can be obtained through well
chapter.
• To find out the problems & difficulties faced by the customers while using the
Reliance money products & bring it to the notice of the company to improve its
Identification of Problem:
Hypothesis Testing: Z-Test
M (mean) = 0
M (mean) = 0
ANALYSIS & INTERPRETATION
TABLE - 1
relatives 15%
broker 40%
40%
35%
30%
25%
20%
Advertisement
15%
10%
5%
0%
print web broker
60%
50%
40%
30% Duration
20%
10%
0%
<1yr 1-2Yrs
25%
20%
15% Why rel.mon?
10%
5%
0%
High backup All the
returns above
20%
10%
0%
Yes No
APPENDICES
QUESTIONAIRE MODEL
Name:
Address:
Occupation:
Gender:
Brokers
a) Excellent
b) good
c) Average
d) poor
Brokerage
Speed
Transparency
Security
Convenience
Reliability
7. What are the factors that influence you to continue the services of Reliance money ltd?
Easy navigation
Clear indication
of investment
guidelines from
the broker
Good service of
the company’s
website
8. If you are a Reliance money customer what improvements you would like to have?
a. Customer service
b. Broad Network
c. Technical Improvement
d. Customer service
e. Others-----------------------------------------
Yes No
12. What is your personal perception about the PMS in reliance money?
REFERENCES
www.Reliancemoney.com
www.traderji.com
Publications
company Brochures