Professional Documents
Culture Documents
A
PROJECT REPORT
ON
Submitted By
Kalandi Mohanty
REGD. NO. - 521072030
MBA (2009-11)
DECLARATION
This report submitted for the partial fulfillment of MBA program. It has not
been submitted to any other university or for any other degree.
ACKNOWLEDGEMENT
“INSPIRATION LEADS TO DEDICATION,
First and foremost I thank god, my friend for blessing showered on me. All
my efforts will remain meaningful authorities, who helped me more than I
expected, while I working on my project.
I would like extend my sincere feeling of gratitude to Sri RK Hota (GM), Dr.
Nilachal Sahoo (Sr.General Manager) and Prof. Sunil Kumar. Finally I thank to all
the faculty member of our institute who have given me their valuable suggestions
from time to time
This is to certify that Mr. Kalandi Mohanty has done his project entitled
“Marketing Strategy of Reliance Securities”.
He has done his project with much sincerity and wish him good luck in
future.
EXAMINER’S CERTIFICATION
Name : Name :
Qualification: Qualification :
DESIGNATION: - DESIGNATION: -
CONTENTS
DEMAT ACCOUNT
MUTUAL FUND
LIFE INSURANCE
GENERAL INSURANCE
CHAPTER II ABOUT THE COMPANY 38 - 42
COMPANY PROFILE
VISION AND MISSION
ORGANISATIONAL HIERARCHY
CHAPTER III PRODUCT OFFERING 43-64
TRADING PORTAL
FINANCIAL PRODUCT
VALUE ADDED SERVICES
CREDIT CARD
GOLD COIN RETAILING
CHAPTER IV MARKETING STRATEGY 65 - 83
FINDINGS
SUGGESTION
CHAPTER VIII CONCLUSION 86-87
CHAPTER IX QUESTIONNAIRE 87 - 89
INDUSTRY PROFILE
DEMAT ACCOUNT
with the use of internet. In this the shares are not issued in the physical form
rather they are transferred in the dematerialized form to the Demat account
directly.
dematerialised account is used to avoid holding physical shares: the shares are
If we want to save our Securities, then we have to open a savings account with a
Bank. Such like that if we want to bye and sell shares, then we need to open a
Demat account with a depositary participant registered with SEBI, NSE, and BSE.
[DEPT OF MBA] Page 9
Marketing strategy of Reliance Securities
trading account from a DP facilitate us to bye and sell shares online and to store
the shares online without any bonded paper stuffs. Demat account facilitates
faster transaction when compared with the older traditional trading method, (i.e.)
the share buyer have to inform to the broker regarding his purchase decision and
then the broker forward it to the stock exchange, then they allot the shares to the
respective buyer and send him a registered share certificate via postal
department. The investor has to wait for 5 days for his transaction. But now due
to the entry of Demat account and online share trading platforms the investors
can buy and sell any volume of shares online by one mouse click!
This account is popular in India. The Securities and Exchange Board of India (SEBI)
mandates a demat account for share trading above 500 shares. As of April 2006, it
became mandatory that any person holding a demat account should possess a
Permanent Account Number (PAN), and the deadline for submission of PAN
mandated that every Initial Public Offer (IPO) made by a listed company in the
Until the late eighties, the common man kept away from capital market and thus
the quantum of funds mobilized through the market was meager. A major
problem, however, continued to plague the market. The Indian markets were
drowned in shares in the form of paper and hence it was problematic to handle
them. Fake and stolen shares, fake signatures and signature mismatch, duplication
and mutilation of shares, transfer problems, etc. The investors were scared and
were under compensated for the risk borne by them. The century old system of
trading and settlement requires handling of huge volumes of paper work. This has
made the investors, both retail and institutional, wary of entering the capital
However, the real growth and change occurred from mid-eighties in the wake of
were envisaged in the banking sector, capital market, securities market regulation,
and stock exchanges experienced that the certificates are the main cause of
investors` disputes and arbitration cases. Since the paper work was not matching
the rapid growth so there was a need for a better system to ensure removal of
these impediments.
based model exchange that could offer screen-based trading and depositories as
the ultimate answer to all such reforms and eliminate various bottlenecks in the
effective.
certificates.
Change of name, address, registration of power of attorney, deletion
lot problem.
Any number of securities can be transferred/delivered with one
dealing in shares, it also does away with all the associated tensions.
Bad deliveries are minimized.
Postal delays and loss of shares in transit is prevented.
Immediate transfer of shares and securities.
Less paper work (reduction in huge volumes).
Faster settlement cycles and payouts.
The demat system totally avoids the associated heartburns arising
account.
MUTUAL FUND
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank of India. The history of mutual funds
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked
from the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets
under management.
1987 marked the entry of non- UTI, public sector mutual funds set up by public
sector banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab
National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of
India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual
fund in June 1989 while GIC had set up its mutual fund in December 1990. At the
end of 1993, the mutual fund industry had assets under management of
Rs.47,004 Crores
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector mutual fund
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several
mergers and acquisitions. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with
Rs.44,541 crores of assets under management was way ahead of other mutual
funds.
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
and certain other schemes. The Specified Undertaking of Unit Trust of India,
India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000
crores of assets under management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking
place among different private sector funds, the mutual fund industry has entered
A Mutual Fund is a trust that pools the savings of a number of investors who share
a common financial goal. The Securities thus collected is then invested in capital
market instruments such as shares, debentures and other securities. The income
earned through these investments and the capital appreciations realized are
shared by its unit holders in proportion to the number of units owned by them.
Thus a Mutual Fund is the most suitable investment for the common man as it
securities at a relatively low cost. The flow chart below describes broadly the
There are many entities involved and the diagram below illustrates the
Sponsors
The sponsor is the company which sets up the mutual fund. It means anybody
Trustees
The management of the mutual fund is subject to the control of the board of
trustees of the fund. They guide the operations of the fund and carry the crucial
responsibility to see that AMC always act in the best interest of the investors.
company (AMC).It manages the funds of the various schemes. It is entrusted with
Custodian
Wide varieties of Mutual Fund Schemes exist to cater to the needs such as
financial position, risk tolerance and return expectations etc. The table below
By Structure ;
Open-Ended Schemes
Close-Ended Schemes
Interval Schemes
By Investment Objective;
Growth Schemes/Equity Schemes
Income Schemes/Debt Schemes
Balanced Schemes
Securities Market Schemes
Investment by Structure
Open-ended Schemes:
An open-end scheme accepts funds from investors by offering its units or shares
whenever he wants and he can purchase units at the market price at that
period. The open-end schemes are ordinarily not list on the secondary market.
Close-ended Schemes:
The subscription to a closed-end scheme is kept open only for a limited period
(usually one month to three months). After that he cannot invest in that fund. A
closed-end scheme does not allow investors to withdraw funds as and when they
like. A closed-end scheme has a fixed maturity period (usually five to fifteen
Interval Schemes:
They are open for sale or redemption during pre-determined intervals at NAV
related prices.
Investment by Objective
Equity Schemes
An EQUITY FUND invests mainly in stocks and shares of companies. EQUITY FUNDS
typically aim to generate long term growth in the unit capital. There are a variety
of ways in which an equity portfolio can be created for investors. There are thus
They are ideal for investors having a long term perspective, Speculative outlook-
the equity cult, who would like to make gains in the shortest period of time and
investors in their prime earning years-specifically the young who have a decent
Debt Schemes
debentures, with high and consistent dividend payout. These funds give
decent returns but the capital appreciation is not much. There are a variety
people and others with a need for stability and regular income. Investors
who need some income to supplement their earnings. There are thus the
Balanced Schemes
generate growth and income by periodically distributing its assets over both types
of securities. These funds are ideal for investors looking for a combination of
This type of fund's main objective is to hold investment instruments that are liquid
and secure. This type of fund is usually held on a short-term basis, and the NAV is
often fixed at $10. Examples: Treasury bills, banker's acceptances, and short term
notes.
One thing an investor should be aware of is that these funds are NOT guaranteed
like a GIC, and hold NO fixed return, but are low risk and do pay interest.
Reduction of risk
Professional Management
Tax benefits
Low transaction costs
Well regulated
Liquidity
Diversification
Return potential
Transparency
Flexibility
Choice of schemes
LIFE INSUARNCE
HISTORY
Insurance has been known to exist in some form or other since 3000 BC. The
Chinese traders, travelling treacherous river would distribute their goods among
several vessels, so that the loss from any one vessel being lost, would be partial
and shared, and not total. The Babylonia traders would agree to pay additional
sums to lenders, as the price for writing off the loans, in case of shipment being
whereby, if goods are shipped together, the owner would bear the losses in
proportion, if loss occurs, due to jettisoning during distress. The Greeks had
started benevolent societies in the late 7 th century AD, to take care of the funeral
and families of members who died. The friendly societies of England were
similarly constituted. The Great Fire of London in 1666, in which more than 13000
houses were lost, gave a boost to insurance and the first fire insurance company,
called the Fire Office, was started in 1680.The origin of insurance business as in
vogue at present is traced to the Lloyd’s Coffee House in London. Traders, who
used to gather in the Lloyd’s coffee house in London, agreed to share the losses to
their goods while being carried by ship. The losses used to occur because of
pirates who rubbed on the high seas or because of bad weather spoiling the
goods or sinking the ship. In India, insurance began in 1818 with life insurance
being transacted by an English company, the Oriental Life Insurance Co. Ltd. In
Calcutta. The first Indian insurance company was the Bombay Mutual Assurance
Society Ltd.
Formed in 1870 in Mumbai this was followed by the Bharat Insurance Co. in
1896in Delhi, The Empire of India in 1897 in Mumbai, the United India in Chennai,
regulation of the industry were made with the introduction of the Indian Life
made until the Insurance Act was drawn up in 1938. Noteworthy features in the
Act were the power given to the Government to collect statistical information
about the insured and the high level of protection the Act gave to the public
through regulation and control. When the Act was changed in 1950, this meant far
companies to prevent dominant control (to protect the public from any
adversarial policies from one single party), stricter control on investments and,
generally, much tighter control. In 1956, the market contained 154 Indian and 16
areas and targeted the higher echelons of society. “Unethical practices adopted by
some of the players against the interests of the consumers” then led the Indian
completed, merging all these companies into the so-called Life Insurance
Corporation (LIC). It was felt that “nationalization has lent the industry fairness,
India are:
1912 - The Indian Life Assurance Companies Act enacted as the first statute
insurance businesses.
1956 - 245 Indian and foreign insurers and provident societies taken over by
Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from
billion by 2010, of which US$ 35 billion will come from rural and semi-urban areas.
While the life insurance market is expected to grow to US$ 35 billion, non-life
With the largest number of life insurance policies in force in the world, India’s
insurance sector accounted for 4.1 per cent of GDP in 2006-07, up from 1.2 per
cent in 1999-2000, far ahead of China where insurance accounts for just 1.7 per
cent of the GDP and even the US where insurance penetration stands at 4 per cent
of the GDP. One area that continues to cause concern is the number of customer
grievances in insurance, especially in a few specific classes. This calls for more
transparency in designing the contract wording and on insisting that the applicant
is sufficiently informed about the coverage and more particularly the exclusions.
the emerging markets. The Law Commission of India which has gone extensively
into the various insurance laws has submitted its report. Further, the expert
committee headed by Mr. K.P. Narasimhan has also submitted its proposals
requiring amendments to the laws. The demand for health insurance covers has
seen a healthy increase, and today the sector is the fastest growing segment in
the non-life insurance industry in India, which grew at over 40% last year. It is also
companies. During the last five years, the premium from health insurance
products in non-life companies has grown from 675 crore in 2001-02 to Rs 3200
crore in 2006-07, almost 5 times its level 5 years back. While this rate of growth
the country continues to be low. Only about 25 million persons are presently
covered for health through commercial insurance, in a country of over 1.1 billion
people. Overall, the Indian health sector is still characterized by the near absence
insurance and other organized forms of payment for health services, including
ESIS, CGHS and other such schemes barely constitute a tenth of all health
insurance companies recorded a 19.9 per cent growth in premium in dollar terms
(adjusted for inflation) in 2006-07, compared to the world market growth rate of
2.9 per cent. This rate of growth of the industry looks particularly impressive
when seen against the fact that the combined penetration of both life and non-life
is less than 2 per cent of the GDP compared to world average of 7.52 per cent.
Led by the Life Insurance Corporation (LIC), the life insurance industry registered a
growth of 110 per cent in fiscal 2006-07, taking the total business to US$ 19.2
billion from the previous year’s US$ 9.1 billion. The life insurance market has
grown rapidly over the past six years, with new business premiums growing at
over 40 per cent per year owing to the entry of a host of new players with
The total life insurance market premiums is likely to more than double from the
current US$ 40 billion to US$ 80-US$100 billion by 2012, says a study by McKinsey.
The study titled ‘India Insurance 2012: Fortune Favors the Bold,’ expects a rise in
premiums between 5.1 and 6.2 per cent of the GDP in 2012 from the current 4.1
per cent driven by greater insurance intensity per capita as the average per capita
income increases and rise in penetration in urban and rural areas. The life
insurance premium contributions per capita have jumped from a little over US$ 7
Life insurance penetration in India - which was less than 1 per cent till 1990-91 -
increased to 2.53 per cent in 2005, and to 3 per cent in 2006-07. While the
impetus for growth has come from both public and private insurers, the number
of players in this segment have also increased to 16 (15 in private sector), with Life
Insurance Corporation (LIC) being the dominant player (market share of over 74
per cent).
GENERAL INSURANCE
Introduction
The General Insurance industry in India dates back to the Industrial Revolution
and the subsequent increase in trade across the oceans in the 17th century. As for
Life Insurance, the British brought General Insurance to India, and a similar path
were in existence for years and years until, in 1971, the Indian Government
decided that the public interest would be served by nationalizing the industry,
merging all the 107 companies into four companies, depending on the sort of
Insurance Company Ltd., the Oriental Insurance Company Ltd., the New India
Assurance Company Ltd., and the United India Insurance Company Ltd. located in
Calcutta, New Delhi, Bombay and Madras respectively. The General Insurance
Corporation (GIC) was set up in 1972 as a ‘holding’ company, having these four
India are:
1907 - The Indian Mercantile Insurance Ltd. set up, the first company to
India, frames a code of conduct for ensuring fair conduct and sound
business practices.
minimum solvency margins and the Tariff Advisory Committee set up.
nationalized the general insurance business in India with effect from 1st
January 1973. 107 insurers amalgamated and grouped into four companies
viz. the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United India
The general insurance industry grew 11.6 per cent between April and November
collected US$ 4.7 billion in premium against US$ 4.2 billion in the same period last
year. While the public sector could increase its premiums by just 3.57 per cent, 9
private sector players clocked premium growth of 26.49 per cent. Private sector
players’ market share has grown to about 40 per cent in FY08 as compared to the
COMPANY PROFILE
Introduction
and fastest growing private sector financial services companies, ranking among
the top 3 private sector financial services and banking companies, in terms of net
worth. Reliance Capital is a part of the Reliance Anil Dhirubhai Ambani Group.
Ambani Group, today unveiled the new brand identity for Travelmate Services and
announced major business plans for its Securities Changing Services and Full-
subsidiary of Reliance Capital. The company has been in the Securities Transfer
country since 1993. Reliance Securities, which started operations in April 2007, is
adding about 2,000 to 2,500 customers every day. It currently has about 1.65 lakh
customers. And the traded volumes have crossed about Rs 1,200 crore.
wide range of asset classes. Its endeavor is to change the way India transacts in
company owned by the Anil Dhirubhai Ambani Group (ADAG), has decided to
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 franchised outlets in 5,165 of the 5,645
Reliance ADAG expects to garner 10 to 20% of its total business through this rural
thrust.
Reliance Securities plans to provide insurance plans for cattle, crop, bullock cart
and tractor, term insurances (Rs 25 to Rs 50 pay out for a year’s coverage), and
Karnataka, Madhya Pradesh, Gujarat and West Bengal, it is now expanding into
VISION
To build a global enterprise for all our stakeholders and a great future for our
country by giving millions of young Indians the power to shape their destiny: The
MISSION
delighting our customers by providing endless financial products in all part of the
country.
capital it also sells the financial products of other companies like ICICI, HDFC, TATA
AIG, Birla sunlife, etc. Its main product is Demat account. Along with the Demat
account it also sells life insurance, general insurance, mutual fund, gold coins etc.
ORGA
NIZATIONAL HIERARCHY
BDM’s .
PRODUCT OFFERING
Equity Broking
Commodity Broking
Derivatives ( Futures & Options )
Offshore Investments (Contract For Differences)
D-Mat Account.
2. Financial Products
Mutual Funds
Life Insurance
ULIP plan
Term Plan
Securities Back Plan
General Insurance
o Vehicle/Motor Insurance
o Health Insurance
o House insurance
IPO’s
NFOs
3. Value-Added Services
Retirement Planning
Financial Planning
Tax Saving
Children Future Planning
4. Credit Cards
PRODUCT FEATURES;
DEMAT ACCOUNT
There are many broking houses doing business in India and they charge a
brokerage on every transaction made online or offline. (Buying and Selling are
that it’s charging the lowest brokerage in the market which is just 1 paisa on every
brokerage and distribution arm of Reliance ADA Group, aims to tap investors in
the smaller towns and cities through a flat fee structure. The current leaders in
the retail broking segment like ICICI Direct, India Infoline and India bulls offer a
‘pay per use’ model where the customer pays a percentage of the amount
The new wonder is Reliance Securities's pre-paid card for stock market brokerage.
Reliance Securities, the financial services division of Anil Dhirubhai Ambani Group-
denominations of Rs500, Rs1,350 and Rs2,500 with validity period of two months,
These cards would offer brokerage at one-third of the rate being charged by
institutional and individual brokerage houses. Sample this. For a pre-paid card
worth Rs500, an investor can trade up to Rs90 lakh in futures and option segment
The Rs1350 worth pre-paid card, total trading limit would reach Rs 3 crore, of
which Rs 2.70 crore is for the F&O segment and balance Rs30 lakh for delivery-
based activities.
For Rs2500 pre-paid card, total trading limit is fixed at Rs16 crore, that include
F&O limit of Rs15.40 crore and balance Rs 60 lakh for delivery-based broking.
brokerage rates - 0.01% for delivery trades and 0.001% for non-delivery trades
(fixed fee of Rs500/- for delivery trades up to Rs10 lacs and/or non-delivery trades
up to Rs1 crore). Industry rates vary between 0.4% to 0.85% for delivery trades and
between 0.05% and 0.10% for non delivery trades. Target low level of retail penetration
in India - less than 3 per cent of household financing savings makes it into equity
markets. Reliance Securities consumers can trade in equities, commodities and offshore
FEE
STRUCTURE
1. Two way authentication: Reliance offers its customers with a token (an
electronic gadget) that generates a password, which are a third level of security
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Marketing strategy of Reliance Securities
generated by the token is valid only for a period of 20 seconds. If the web page
expires, for the fresh login, a new password generated by the token has to be
REUTERS.
93.37% of the paid-up capital of RCAM, the balance paid up capital being held by
minority shareholders."
Reliance Capital Asset Management Limited (RCAM) was approved as the Asset
Management Company for the Mutual Fund by SEBI vide their letter no
IIMARP/1264/95 dated June 30, 1995. The Mutual Fund has entered into an
Investment Management Agreement (IMA) with RCAM dated May 12, 1995 and
was amended on August 12, 1997 in line with SEBI (Mutual Funds) Regulations,
fund can be broadly classified into three categories –Equity, Debt and sector
Equity Schemes
Along with the mutual funds of Reliance, Reliance Securities also sells the mutual funds
of other companies like ICICI, HDFC, Kotak Mahindra, Birla Sunlife, cholamandalam, etc.
Reliance Mutual Fund has launched Forty Three Schemes till date, namely:
Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading
private sector financial services companies, and ranks among the top 3 private
sector financial services and banking companies, in terms of net worth. Reliance
Capital has interests in asset management and mutual funds, stock broking, life
and general insurance, proprietary investments, private equity and other activities
in financial services.
and Corporate.
Achievements
RLIC has been one of the fast gainers in market share in new
premium as of Mar’08.
A Company that has crossed 1.7 Million policies in just 2 years of
PRODUCTS
FOR INDIVIDUALS
EMPLOYERS LIABILITY SOLUTIONS
F
PROTECTION PLANS
EMPLOYEE PROTECTION SOLUTIONS
SAVINGS AND INVESTMENT PLANS
EMPLOYEE VOLUNTARY BENEFITS
RETIREMENT PLANS
CHILD PLANS
In life, you have always given your family whatever they have wanted. Yet, there
are some promises you have to fulfill, such as taking your family for a vacation, or
buying that dream house. Set aside some Securities to achieve these specific goals
with the help of Reliance Savings & Investment Plans. The plan allows you to
experience the joys of life and provide for your family’s needs. By this plan one
3. RETIREMENT PLANS
You are a young and earning individual. The income you earn allows you to enjoy
life, your only worry being whether you will be able to continue the same lifestyle
after retirement. A Reliance Retirement Plan will help you save Securities for your
retirement. It ensures that you continue to get some income after retirement
thereby ensuring that you do not have to depend on any other person or make
4. CHILD PLANS
Being a parent is one of the joys of life. Your child looks up to you and
depends on you for love, protection and support. You want to provide your
The Reliance Child Plan helps you save systematically so that you can secure your child’s future needs. Be
it higher education, his or her first home or any other requirement, you will always be there for your
plan
1. Reliance Term Plan 1. Reliance Super 1. Reliance Total 1. Reliance Child Plan
II- Pension
2. Reliance Simple Term 2. Reliance Super 2. Reliance Super Golden 2. Reliance Secure Child
3. Reliance Special Term 3. Reliance Total 3. Reliance Super Golden 3. Reliance Super
– Insurance
Plan
Plan Plan
Plan Plan
Life Plan
Investment Plan
FOR CORPORATES
employees while keeping the interests of the company in mind. How will you
strike a balance between the two? Reliance Life Insurance offers you a win-win
solution with Solutions for Groups. Not only are your employees covered for life
from accidents and disablements, you can also efficiently manage their future
A. Group Superannuation
B. Group Gratuity
C. Group Leave Encashment Plan
GENERAL INSURANCE
they sell is financial protection. To succeed and survive, they must cover their
costs, which include payments to cover the losses of policyholders, as well as sales
and administrative expenses, taxes and dividends. Insurance companies have two
sources of income for covering these costs: premium and investment income. The
premium are collected on a regular basis and invested in Government Bonds, Gift
stocks, mutual funds, real estates and other conservative avenues. However,
and varies from year to year. Because of the uncertainty associated with the
premium to cover the bulk of their expenses. The primary function of insurance is
Health
Individual Mediclaim
Group Mediclaim
Personal Accident
Personal Accident
Fire
Engineering
Marine
Motor
Liability
Public Liability
Product Liability
Professional Indemnity
Workmen’s compensation
Miscellaneous
Industry Care
Commercial Care
Office Package
Fidelity Guarantee
Securities Insurance
Householder’s Package
Shopkeeper’s Package
Travel
Asia
Student
Corporate
BASIC FEATURES
Hospitalization Expenses
Daycare Treatment
Domiciliary Hospitalization
Donor Expenses
Recovery Benefit
Nursing Allowance
POLICY FEATURES
Sum Insured
MARKETING STRATEGY
What is marketing?
for creating, communicating and delivering value to the customer and for
its stakeholders. It is the art of choosing target markets and getting, keeping and
customer value.
Definition of marketing depends upon the core concepts like needs, wants,
satisfaction
STP concept
within a market who share similar needs and who demonstrate similar buyer
behavior. The world is made up from billions of buyers with their own sets of
needs and behavior. Segmentation aims to match groups of purchasers with the
same set of needs and buyer behavior. Such a group is known as a 'segment'.
Segmentation is that part of the population on which the company gives its focus
and tries to get its customers from that area. Reliance Securities mainly gives
Targeting:
It is the second stage of STP concept. After the market has been separated into its
segments, the marketer will select a segment or series of segments and 'target'
it/them. Resources and effort will be targeted at that segmentation. It targets the
people whose income range is above Rs. 2.4 lacs and also to the business people .
Positioning:
minds of their target market for its product, brand, or organization. Reliance
Securities tries to position it as the safest firm for equity, commodity, Forex
transaction by providing additional security to its customers and also as the low
Strategy
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Marketing strategy of Reliance Securities
Marketing strategy is the process which allows the organization to concentrate its
goals, and explains how they will be achieved within a stated timeframe. It
allocation of resources.
horizontal integration strategy. Because its main product is the demat account.
But along with the demat account it also sells life insurance, general insurance,
of Reliance.
his/her needs. For example for a customer whose trading power is very low it
gives him the demat account of Rs. 1250/- If a customer is a heavy trader than it
gives him the demat account of Rs. 2750/- and if a customer is in between these
two then it gives him the demat account of Rs. 1750/- or of Rs. 2350/- It also
provides a token which gives the customer extra security because at the time of
login along with the user ID and password, the token key is also required. This
token key number is a 7 digit number which changes after every 32 seconds. So
another person cannot login to the account even if he knows the user ID and
password as he does not have the token number. Because of this it is very secure.
They are also providing the services at a lower cost. Reliance Securities charges
the least brokerage charges in India. They charge only 0.01% for delivery and
0.05% for intraday which very very less as compared to other brokerage firms in
India.
4P’s of Marketing
Product: the product of Reliance Securities is the Demat account. It also provides
the Credit Card services. Along with the demat account it also sells other financial
products like Life insurance , General insurance, Mutual Fund, Gold coins,
Securities transfer, Forex exchange, etc. it also provides the offline trading facilities
through Reliance Securities partners in 5000 cities across India and through phone
calls by dialing 022-39886000. In Demat account one has various investment options
Price:
The price they charge to open the Demat account is Rs. 1250. Out of which Rs.
750/- goes towards the administration and other charges and the rest Rs. 500/-
goes towards the purchasing a limit card which determines the turnover limit and
validity period of the account. If a customer is a heavy trader then he can opt for a
Place:
Reliance Securities branches are present all over India. Reliance Securities has
around 10,000 branches in around 5,000 cities in India. Their main target is the
Promotion:
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Marketing strategy of Reliance Securities
The products are mainly sold because of the sales people. So Reliance Securities
mainly promotes or encourages its sales force to sell more. It also conducts
There are three distribution channels to distribute the products and services of
there is a team leader who is responsible for the sales in that territory. He
also assigns the tasks to his team members. So it is a group effort to attain
the target.
[DEPT OF MBA] Page 70
Marketing strategy of Reliance Securities
mutual fund of other companies like ICICI, HDFC, Cholamandalam, Birla life
insurance, TATA AIG etc. in this there is no team leader. Everyone has to do the
task individually.
They have tie-up with the DTDC courier to fasten the delivery of their products and
services.
TELEMARKETING
prospective customers to buy products and services over the phone. It makes lead
generation for the business or if converted to sales builds business for the
company.
Reliance Securities has tie-up with different banks like ICICI, HDFC, AXIS, IDBI and
other banks. So it gets data about the customers of these banks. This also makes it
easier for cold calling, lead generation and convert it to sales. First they segregate
the data collected from these banks and then find out who could be the
prospective customers. Then they call from the Reliance Securities office and fix
an appointment with them. During the meeting they tell about the product and
product/service and clarify their doubts. Then they try to convert it to sales.
Canopy
Reliance Securities sets up canopy at different places to make aware about its
products to the people who are unaware about them. It is used as a promotional
tool and also helps in brand awareness. I have also got a chance to attend a
ADVERTISEMENT
commercials.
CNBC Awaaz, NSE and NSDL presents Pehla Kadam a national - level
SWOT ANALYSIS
threats is called as SWOT analysis. It’s a way of monitoring the external and
STRENGTH WEAKNESS
Demat account
OPPURTINITY THREATS
RESEARCH METHODOLOGY
OBJECTIVE
The objective of the study is to find out the investment pattern of customers and
Size of sample : 50
Primary data:
LIMITATIONS
1. The sample size is very less, hence the response of just 50 respondents
DATA INTERPRETATION
Interpretation: it shows that most of the people are now investing in the share market rather
than in the mutual funds. So the customers are more aware about the share market now-a-
days.
Interpretation:
It shows that most of the people are aware about the online trading of shares.
This all happened because of the development in the IT industry. People know
Interpretation:
Most of the people are aware about the Reliance Securities as a brand. This brand
awareness will help in the future to increase the market share of Reliance
Interpretation:
From the pie chart it is very much clear that ICICI and Reliance Securities has equal
market share in the market. Its closest competitors are ICICI and India Infoline.
Interpretation:
From the graph it is very clear that around 1/3rd of the customers i.e. 30% are not
satisfied with the present brokers. So there is a chance that Reliance Securities can
Interpretation:
From the graph it is very much clear that satisfaction level of around 38% people are
below 60%. Only 42% people have a satisfaction level of more than 80%. It will help in
Interpretation:
Share market gives the maximum return in today’s world. Maximum people are doing
the trading daily and weekly manner. But 24% people are doing it in a monthly basis and
10% on yearly basis. It shows that there are very less people who invest in share market
Interpretation:
It clearly shows that half the people are investing around 10% to 25% of their earning.
There are only few players who are investing more than 50% of their earning. This is
because of the volatile nature of the share market 88% people are investing below the
FINDINGS
customers.
Reliance Securities provides the service at a cheaper cost as compared
They are present in all over India. They have around more than 10,000
that they are not happy with the customer service of Reliance
Securities.
SUGGESTIONS
Based on the findings of the project I would like to suggest the following
After sales services are very important for getting new references. So
paisa on selling and not on buying because people are thinking that
turnover.
It should provide regular training programs for the advisors in order to
account to general insurance. Each advisor is not aware about all the
Reliance Securities does not provide any software to the customers. Its
CONCLUSION
Based on the markets survey and SWOT analysis and other market conditions I
Although Reliance Securities is a new entrant to the market it became able to hold
a strong position in today’s market. The sales force of Reliance Securities mostly
consists of youngsters. They can be motivated easily to do a good job as they have
The stock market is very buoyant in the past 2-3 years. It also gives the maximum
return from all the investment options one have. So many people are interested in
stock market. Because of the recession most of the people are now not investing
in stock market. But as market going to stabilize the people will again invest in
equity. `
Till now people know about only two types of insurance plans i.e. term plan and
endowment plan. They do not know about the ULIP plans. ULIP plan also provides
the high return as compared to other plans. So there is a market for the ULIP plan.
Also according to a survey only 18%-20% of people are insured. So there is a huge
market potential for the insurance sector. Mutual Fund is also a good option for
investment. It minimizes the risk with a higher return. Some people think that it a
type of gambling.
With FDI limit being relaxed a lot of avenues will open up in the insurance sector
and insurance companies are expected to come up with new good plans with a
Questionnaire Form
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BIBLIOGRAPHY
Kotler
India Today Magazine
http://www.amfiindia.com
www.finance.indiamart.com
[DEPT OF MBA] Page 88
Marketing strategy of Reliance Securities
www.investorguide.com
http://www.quickmba.com/marketing/market-segmentation/
http://www.marketingteacher.com/Lessons/lesson_targeting.htm