Strategic Approach of Karvy Stock Broking Ltd and Its Competitors

A PROJECT REPORT ON “STRATEGIC APPROACH OF KARVY STOCK BROKING LTD AND ITS COMPETITORS REGARDING DEMAT ACCOUNT AND SHARE TRADING --- A COMPARATIVE OVERVIEW” SUBMITTED TO K.R.MANGALAM INSTITUTE OF MANAGEMENT N- BLOCK, KAILASH COLONY, NEAR SOUTH DELHI CLUB NEW DELHI-110048 BY REGISTRATION NO. GUIDED BY ZONAL MANAGER, KARVY CONTENT ,[object Object],CERTIFICATE OF THE ORGANISATION This is to certify that ………………., pursuing MBA+PGPM+PGCM at K. R. Mangalam Institute of Management, New Delhi, has worked under my supervision and guidance on his dissertation entitled “Strategic Approach of Karvy Stock Broking Ltd. And It’s Competitors Regarding Demat Account & Share Trading--- A Comparative Overview” at Karvy Stock Broking Limited, Burdwan from August 1st 2009 to September 12th 2009. To the best of my knowledge this is an original piece of work. During his project he was found to be very sincere, regular and attentive to small details whatsoever told to him. I wish him best of luck and success in life. Dated, Burdwan Branch Head Karvy Stock Broking Ltd. CERTIFICATE OF THE INSTITUTE This is to certify that the project report entitled “Strategic Approach of Karvy Stock Broking Ltd. And It’s Competitors Regarding Demat Account & Share Trading --- A Comparative Overview” at Karvy Stock Broking Limited is a bonafide record of work done by ……………….., and submitted in partial fulfillment of the requirements of MBA+PGPM program of K. R. Mangalam Institute of Management, New Delhi. Dated, New Delhi Lecturer KIM-New Delhi ACKNOWLEDGEMENT Sometimes words fall short to show gratitude, the same happened with me during this project. The immense help and support received from Karvy Stock Broking Limited overwhelmed me during the project. My sincere gratitude to …………………… (Branch Manager, Karvy) and …………………….. (Director, KIM, New Delhi), for providing me with an opportunity to work with Karvy Stock Broking Limited. I am highly indebted to ………………………. (I.R.O., Karvy) and company project guide, who has provided me with the necessary information and his valuable suggestion and comments on bringing out this report in the best possible way. I also thank ……………………., faculty guide, KIM New Delhi who has sincerely supported me with the valuable insights into the completion of this project. Last but not the least; my heartfelt love for my parents, whose constant support and blessings helped me throughout this project. PREFACE Private sector is one of the fastest growing sectors in the country. After the liberalization the Private industry still holds vast opportunities for young and experienced professionals. Among the Private Stock Broking Companies, Karvy Stock Broking Ltd. Is the key player and has been making efforts to improve efficiency and customer services. There are many companies in the market which are providing the financial product like insurance, mutual funds, demat account services, general insurance, portfolio management services, wealth management, gold coins, money changing, money transfers and the others. Including Demat Account services. Karvy Stock Broking Ltd. offers stock broking services, mutual fund services, insurance, commodity, IPO services, gold coin exchange and foreign exchange services, Share Registry, Mutual Fund Registry, and PAN Service below the single roof. Hence, Karvy Stock Broking Ltd. provides many financial products on the single window. It consists of 7 units namely: - 1. Stock broking services 2. Demat 3. Mutual Funds 4. IPO 5. Commodity 6. Forex 7. Gold DECLARATION I hereby declare that the project report titled “Strategic Approach of Karvy Stock Broking Ltd. And It’s Competitors Regarding Demat Account & Share Trading---A Comparative Overview” is a genuine research work done by me and it has not been published anywhere earlier. Date: Place: NEW DELHI OBJECTIVE OF TRAINING The objectives of my project include the following:- 1. To study the financial products and services of Karvy Stock Broking Ltd. 2. To make a comparative study of competitors of Karvy Stock Broking Ltd. in Burdwan. 3. To find out potential investors or customers for Karvy Stock Broking Ltd. and present attitude of investors regarding share market in Burdwan town. 4. To analise the marketing strategies of Karvy Stock Broking Ltd. and suggest new strategies. So, the objective of the project is to identify the market potential of Demat Account services offered by Karvy Stock Broking Ltd. and a comparative analysis of the competitors of KSBL in Burdwan town. EXECUTIVE SUMMARY This project has been a great experience for me and at the same time it gave me enough scope to implement my analytical ability. Stock Broking leading industry which is basically my concern industry around which my project has to be revolved is really a very complex industry. This project as a whole can be divided into two parts: - The first part gives an insight about demat account and share trading and its various aspects. It is purely based on what I learned at Karvy Stock Broking Ltd. One can have a brief knowledge about demat and share trading and all its basics through the project. Apart from it I have also gained knowledge briefly about mutual fund, general insurance etc. This entire topic has been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the data’s have been well analyzed with the help of charts and diagram. The second part consists of data and their analysis, collected through a questionnaire which helps me to clearly know the terms and condition of different leading stock broking companies and their business strategies. It covers the topic “Strategic Approach of Karvy Stock Broking Ltd. And It’s Competitors Regarding Demat Account & Share Trading---A Comparative Overview”. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. I have really enjoyed during the time period of summer internship because I gained much better knowledge about the share market trading activities not only a single Karvy Stock Broking Ltd. but also gained another Company’s share trading activities. The practical knowledge gives me enough scope to implement my experience in related companies in the near future. I am able to know better how to manage the employees work and to take necessary steps to enhance growth and development of the employees as well as the company’s wellness. SCOPE OF THE STUDY The scope of the study refers to the job that to know about the activities of the organization. The study means that the analysis of the products of the company on which he/she has to focus. During the summer training the volunteer need to find out the corporate strategies of the running company and The mile stone which the company has covered during its journey. In the summer training, it is necessary for the student that he /she involve with the experience guys to get the knowledge about the company. That is how the company has got the success, Or if it is going in the loss, why. In my training period I have found that the Karvy group is the biggest group in Indian companies. I felt that I can learn the more in the Karvy Stock Broking Ltd. Karvy Stock Broking Ltd. is the part of the Karvy Group of Companies which is a growing company in the financial products. INTRODUCTION TO THE INDUSTRY History of Stock Broking The history of stock brokers can be traced back to the origins of the first stock exchange in 1602 at Amsterdam. Even before that brokers are said to have existed in France dealing with government securities. The Amsterdam Stock Exchange was involved in buying and selling of shares for the Dutch East India Company. However, the first real stock exchange came up in Philadelphia in the United States during the late 18th century. Later it was the New York stock exchange which saw a rise in its popularity. Wall Street, as it was called, became the hub of brokerage activities. Earlier stock brokers were largely unorganized, but later most of them joined hands to form institutes and organizations. Till the 1980's stock broking services were used only by the wealthy class who could afford them. Later with the advent of the Internet, stock broking became very easy. Thus, the price tag on stock brokers lowered considerably and their services became available even to the common man. The stock broking duties are now mostly taken up by major organizations with the smaller companies being absorbed by them. In India, too with increasing globalization the major corporations are penetrating deeper into the society. History of Stock Exchanges in India: Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transaction takes is determined by the market forces (i.e. demand and supply for a particular stock). Let us take an example for a better understanding of how market forces determine stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an upward movement in its stock price. More and more people would want to buy this stock (i.e. high demand) and very few people will want to sell this stock at current market price (i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in the market, its price will fall down. In earlier times, buyers and sellers used to assemble at stock exchanges to make a transaction but now with the dawn of IT, most of the operations are done electronically and the stock markets have become almost paperless. Now investors don’t have to gather at the Exchanges, and can trade freely from their home or office over the phone or through Internet. History of the Indian Stock Market - The Origin One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history. Year 1800:East India Company was the dominant institution and by end of the century, business in its loan securities gained full momentum. Year 1830:Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got broader Year 1840:Recognition from banks and merchants to about half a dozen brokers Year 1850:Rapid development of commercial enterprise saw brokerage business attracting more people into the business Year 1860:The number of brokers increased to 60 Year 1860-61:The American Civil War broke out which caused a stoppage of cotton supply from United States of America; marking the beginning of the quot;
Share Maniaquot;
in India Year 1862-63:The number of brokers increased to about 200 to 250 Year 1865:A disastrous slump began at the end of the American Civil War (as an example, Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87) Pre-Independence Scenario - Establishment of Different Stock Exchanges Year 1874:With the rapidly developing share trading business, brokers used to gather at astreet (now well known as quot;
Dalal Streetquot;
) for the purpose of transacting business. Year 1875:quot;
The Native Share and Stock Brokers' Associationquot;
(also known as quot;
The Bombay Stock Exchangequot;
) was established in Bombay Year 1880:Development of cotton mills industry and set up of many others Year 1894:Establishment of quot;
The Ahmedabad Share and Stock Brokers' Associationquot;
 Year 1900:Sharp increase in share prices of jute industries in 1870's was followed by a boom in tea stocks and coal Year 1908:quot;
The Calcutta Stock Exchange Associationquot;
was formed. Year 1920:Madras witnessed boom and business at quot;
The Madras Stock Exchangequot;
 was transacted with 100 brokers. Year 1923:When recession followed, number of brokers came down to 3 and the Exchange was closed down Year 1934:Establishment of the Lahore Stock Exchange. Year 1936:Merger of the Lahore Stock Exchange with the Punjab Stock Exchange. Year 1937:Re-organization and set up of the Madras Stock Exchange Limited (Pvt.) Limited led by improvement in stock market activities in South India with establishment of new textile mills and plantation companies. Year 1940:Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was established Year 1944:Establishment of quot;
The Hyderabad Stock Exchange Limitedquot;
 Year 1947:quot;
Delhi Stock and Share Brokers' Association Limitedquot;
and quot;
The Delhi Stocks and Shares Exchange Limitedquot;
were established and later on merged into quot;
The Delhi Stock Exchange Association Limitedquot;
 Post Independence Scenario The depression witnessed after the Independence led to closure of a lot of exchanges in the country. Lahore Stock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were: Bombay Calcutta Madras Ahmedabad Delhi Hyderabad Bangalore Indore Many more stock exchanges were established during 1980's, namely: Cochin Stock Exchange (1980) Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) Pune Stock Exchange Limited (1982) Ludhiana Stock Exchange Association Limited (1983) Gauhati Stock Exchange Limited (1984) Kanara Stock Exchange Limited (at Mangalore, 1985) Magadh Stock Exchange Association (at Patna, 1986) Jaipur Stock Exchange Limited (1989) Bhubaneswar Stock Exchange Association Limited (1989) Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989) Vadodara Stock Exchange Limited (at Baroda, 1990) Coimbatore Stock Exchange Meerut Stock Exchange At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL). Government policies during 1980's also played a vital role in the development of the Indian Stock Markets. There was a sharp increase in number of Exchanges, listed companies as well as their capital, which is visible from the following table: Indian Stock Exchange Growth19461961197119751980198519911995No. of Stock Exchanges77889142022No. of Listed Cos.11251203159915522265434462298593No. of Stock Issues of Listed Cos.150621112838323036976174896711784Capital of Listed Cos. (Cr. Rs.)27075318122614397397233204159583 Trading Pattern of the Indian Stock Market Indian Stock Exchanges allow trading of securities of only those public limited companies that are listed on the Exchange(s). They are divided into two categories: Listed Securities of Public Limited CompaniesSpecified Securities(Forward List)Non Specified Securities(Forward List)Equity Share of Company That areDividend PayingGrowth Oriented CompaniesPaid up Capital of at least Rs. 50 MillionMarket Capitalisation of at least Rs. 100 MillionHas more then 20,000 Share HolderEquity Share of Companies Not Covered in Specified Securities Types of Transactions Transaction on Indian Stock ExchangeThe flowchart below describes the types of transactions that can be carried out on the Indian stock exchanges: Forward TransactionTransactions in which Delivery and Payment can be extended by further period of 14 days each.The overall period should not exceed 90 days from the date of contractTransactions permitted only in case of specified sharesSpot Delivery TransactionIncludes Transactions that require delivery and payment within stipulated time period at the time of entering into the contractThis period shall not be more that 14 days following the date of contract Indian stock exchange allows a member broker to perform following activities: Act as an agent, Buy and sell securities for his clients and charge commission for the same, Act as a trader or dealer as a principal, Buy and sell securities on his own account and risk. Over The Counter Exchange of India (OTCEI) Traditionally, trading in Stock Exchanges in India followed a conventional style where people used to gather at the Exchange and bids and offers were made by open outcry. This age-old trading mechanism in the Indian stock markets used to create many functional inefficiencies. Lack of liquidity and transparency, long settlement periods and benami transactions are a few examples that adversely affected investors. In order to overcome these inefficiencies, OTCEI was incorporated in 1990 under the Companies Act 1956. OTCEI is the first screen based nationwide stock exchange in India created by Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General Insurance Corporation and its subsidiaries and CanBank Financial Services. Securities Traded on the OTCEI Initiated DebenturesAn equity holding a minimum of 1 Lakh Debentures of a particular scrip can offer them for trading on the OTCPermitted SecuritiesCertain Securities (Shares and Debentures) listed on other ExchangesUnits of Mutual Fund can be TradedListed SecuritiesSecurities of the companies listed on the OTCCan be bought and sold at any OTC Center across IndiaShould not be listed anywhere else Advantages of OTCEI Greater liquidity and lesser risk of intermediary charges due to widely spread trading mechanism across India The screen-based scripless trading ensures transparency and accuracy of prices Faster settlement and transfer process as compared to other exchanges Shorter allotment procedure (in case of a new issue) than other exchanges National Stock Exchange In order to lift the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, all Insurance Corporations, selected commercial banks and others. NSE provides exposure to investors in two types of markets, namely Wholesale debt market Capital market Wholesale Debt Market- Similar to money market operations, debt market operations involve institutional investors and corporate bodies entering into transactions of high value in financial instruments like treasury bills, government securities, commercial papers etc. Trading at NSE Fully automated screen-based trading mechanism Strictly follows the principle of an order-driven market Trading members are linked through a communication network This network allows them to execute trade from their offices The prices at which the buyer and seller are willing to transact will appear on the screen When the prices match the transaction will be completed A confirmation slip will be printed at the office of the trading member Advantages of trading at NSE Integrated network for trading in stock market of India Fully automated screen based system that provides higher degree of transparency Investors can transact from any part of the country at uniform prices Greater functional efficiency supported by totally computerized network Bombay Stock Exchange Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as quot;
The Native Share & Stock Brokers' Associationquot;
in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Börse and Singapore Exchange, as its strategic partners. Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient access to resources. There is perhaps no major corporate in India which has not sourced BSE's services in raising resources from the capital market. Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature , and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including 12 sectoral indices. BSE has entered into an index cooperation agreement with Deutsche Börse. This agreement has made SENSEX and other BSE indices available to investors in Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs through its iSharesÂ® brand, has created the 'iSharesÂ® BSE SENSEX India Tracker' which tracks the SENSEX. The ETF enables investors in Hong Kong to take an exposure to the Indian equity market. The first Exchange Traded Fund (ETF) on SENSEX, called quot;
SPIcEquot;
is listed on BSE. It brings to the investors a trading tool that can be easily used for the purposes of investment, trading, hedging and arbitrage. SPICE allows small investors to take a long-term view of the market. BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-line Trading System (BOLT). BSE continues to innovate. In recent times, it has become the first national level stock exchange to launch its website in Gujarati and Hindi to reach out to a larger number of investors. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian Corporate Debt Market and a unique ticker-cum-screen aptly named 'BSE Broadcast' which enables information dissemination to the common man on the street. In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of listed companies, the ICERS facilitates the corporates in sharing with BSE their corporate announcements Sensex & Nifty The Sensex is an quot;
indexquot;
. What is an index? An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE. Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE. Most of the stock trading in the country is done though the BSE & the NSE. Market Watch - BSE - BSE 200 over a Fortnight Market Watch - NSE - S&P CNX Nifty over a Fortnight INTRODUCTION TO THE COMPANY Introduction: “Success is a journey, not a destination.” If we look for examples to prove this quote then we can find many but there is none like that of karvy. Back in the year 1981, five people created history by establishing karvy and company which is today known as karvy, the largest financial service provider of India. Success sutras of Karvy: The success story of karvy is driven by 8 success sutras adopted by it namely trust, integrity, dedication, commitment, enterprise, hard work and team play, learning and innovation, empathy and humility. These are the values that bind success with karvy. Vision of Karvy: To achieve & sustain market leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class quality services. In the process Karvy shall strive to meet and exceed customer's satisfaction and set industry standards. Mission statement: “Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.” The Success Ladder: 19902003InceptionCorporate Registry ServicesStock Broking ServicesFinancial Products DistributionCorporate Financial ServicesDepository ServicesIT Enabled ServicesPersonal Finance Advisory ServicesKarvy Global Services2005PCG group of Hongkong has taken 20% stake in KSBLJV with Australian ComputershareKarvy Comtrade2006Karvy Realty & Services(India) Limited Company overview: Karvy was established as karvy and company by five chartered accountants during the year 1979-80, and then its work was confined to audit and taxation only. Later on it diversified into financial and accounting services during the year 1981-82 with a capital of rs.150000. it achieved its first milestone after its first investment in technology. Karvy became a known name during the year 1985-86 when it forayed into capital market as registrar. Evolution of KARVY: ,[object Object],Karvy’s strategy has always been being the first entrant in the market. Karvy again hit the limelight by becoming the first registrar in the country to be awarded ISO 9002 in the year 1997. Then it stepped into the other most happening sector i.e; IT enabled services by establishing its own BPO units and at a gap of just 1 year it took the path of e-Business through its website www.karvy.com . Then it entered into insurance services in the year 2001 with the launch of its retail arm “karvy- the finapolis: your personal finance advisor”. Then in the year 2002 it launched its PCG(Private Client Group) which looks after its High Networth Individuals .and maintain their portfolio and provides them with other financial services. In the year 2003, it commenced secondary debt and WDM trading. It was a decade which saw many Indian companies going global…..so why the largest financial service provider of India should lag behind? Hence, karvy launched “karvy global services limited” after entering into a joint venture with Computershare, Australia in the year 2004.the year 2004 also saw karvy entering into commodities marketing through karvy comtrade. Year 2005 saw karvy establishing a separate branch for its insurance services under the head “ karvy insurance broking ltd” and in the same year, after being impressed with the rapid growth of karvy stock broking limited, PCG group of Hong Kong acquired 25% stake at KSBL. In the year 2006, karvy entered into one of the hottest sector of present time i.e real estate through Karvy realty& services (India) ltd. hence , we can see now karvy being established as the lagest financial service provider of the country. Now Karvy group consists of 11 highly renowned entities which are as follow: The first securities registry to receive ISO 9002 certification in India. Registered with SEBI as Category I Registrar, is Number 1 Registrar in the Country. The award of being ‘Most Admired’ Registrar is one among many of the acknowledgements we received for our customer friendly and competent services. Karvy stock broking ltd. Consists of five units namely stock broking servics, depository participant, advisory services, distribution of financial products, advisory services and private client goups. It is registered with SEBI as a category 1 merchant banker. Its clientele includesinclude leading corporate, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. Karvy insurance broking ltd is also a part of karvy stock broking ltd. At Karvy Insurance Broking Limited both life and non-life insurance products are provided to retail individuals, high net-worth clients and corporates. The company provides investment, advisory and brokerage services in Indian Commodities Markets. And most importantly, it offer a wide reach through our branch network of over 225 branches located across 180 cities. Karvy Global is a leading business and knowledge process outsourcing Services Company offering creative business solutions to clients globally. It operates in banking and financial services, inurance, healthcare and pharmaceuticals, media , telecom and technology. It has its sales and business development office in New York, USA and the offshore global delivery center in Hyderabad, India. Karvy Realty (India) Limited is engaged in the business of real estate and property services offering: Buying/ selling/ renting of properties Identifying valuable investments opportunities in the real estate sector Facilitating financial support for real estate and investments in properties Real estate portfolio advisory services Karvy Computershare Private Limited is a joint venture between Computershare, Australia and Karvy Consultants Limited, India in the registry management services industry. Computershare, Australia is the world’s largest and only global share registry providing financial market services and technology to the global securities industry. Karvy Corporate and Mutual Fund Share Registry and Investor Services business, India's No. 1 Registrar and Transfer Agent and rated as India's quot;
Most Admired Registrarquot;
for its overall excellence in volume management, quality processes and technology driven services. KDMSL is emerging as a leading service provider in the areas of E-governance processing, insurance back office processing, record keeping, back office for BFSI clientele and is in pursuit to establish credentials in the areas of Telecom processing, Data management requirements of large corporate. KDMSL is striving to achieve leadership position by tapping the Indian retail sector boom, through a combination of our extensive branch network and proprietary IT backbone. Needless to say, KDMSL is run as an independent outfit with seasoned professionals on board, who have decades of expertise in the industry. KDMSL is a fully owned subsidiary of Karvy Stock Broking Limited (KSBL), incorporated in April 2008 and is head quartered at Hyderabad. Karvy Now presents Karvy Fortune, a correlate opportunity from India’s foremost financial services provider, karvy. It offers complete Karvy’s spectrum of financial products. Karvy fortune gives the opportunity to associate with “Karvy Family” as Franchisee, Remisser, E – Franchisee or as an Independent Financial Advisors. In its ambition to emerge as a complete financial advisor, KARVY has recently launched its personal financial planning wing, KARVY Financial Planning. It proposes to cater all advice to its customer pertaining to personal finance. With India emerging as a strong market, the investments avenues have also increased, to advice our customers the right avenue according to their suitability. Our vision is quot;
To cater to the unique needs and requirements of the mass affluent by providing complete financial solutions and thereby enabling them to transform their dreams into reality.quot;
 Organization structure of karvy: Talking about the organization structure of karvy, we have the board of directors as the supreme governing body , the chairman being Mr. C parthasarthy, mr. m yugandhar as the managing director, mr m s ramakrishna andmr. Prasad v. potluri as directors. The board of diretors head the karvy group, karvy computershares limited, karvy investors services ltd., karvy comtrade, karvy stock broking ltd., and karvy global services ltd. Karvy group being the flagship company looks after the functional departments such as corporate affairs, group human resources, finance & accounting, training & development, technology services and corporate quality. Karvy computershare private limited facilitates mutual fund services, share registry and issue registry whereas merchant banking is looked after by karvy investor services ltd. Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The services offered by KSBL are: stock broking, depository, research, distribution, personal client group and institutional desk. And finally the BPO services are managed by karvy global services ltd. Summarizing it in a diagram, it can be presented as: Spectrum of services offered by Karvy: Karvy being the top registrar and transfer agent, functions as registrar in most of the issues in the country. Talking about the mutual fund services offered by Karvy, we can get the products of 33 AMCs over here. it deals in both closed ended funds as well as open ended too. Now one must be thinking why to get the mutual funds from Karvy instead of getting it directly from AMCs???we have great reasons for it: the first one being ; if we avail the services of Karvy then we can get the information about all the AMCs and their products at a single place along with expert recommendations whereas at an AMC we can get information about the products of that specific AMC only. And the second being wide network of Karvy….nowadays we can find Karvy offices at remote areas too. Along with these, Karvy is very well handling the role of depository participant. Being registered with both the depositories i.e.; NSDL (national securities depository ltd) and CDSL (central depository services ltd), Karvy can have access to both. Its wide network also facilitates it in distribution of retail financial products. Karvy believes in being updated always. So it is always ready to use latest technologies so that its clients always be in touch with the latest happenings along with Karvy. It offers e-business through internet through its website: www.karvy.com . Other than it, it also provides its various services through SMSes. Karvy’s services are not limited to its investors only rather its offerings are for its corporate clients and distributors too. it is very well aware of the fact that in this era of neck to neck competition, we cant ignore any of the aspects of our business….so there’s a offering for everybody…everyone’s welcome at Karvy. Why should investors choose for Karvy? Excellence is next to nothing….and here at Karvy everybody tries their best to offer excellent services to its clientele through its offerings maintaining the Karvy culture which includes: 1. Controlled and low cost service culture: Karvy is there to serve its client at the minimum possible cost. it controls cost by its various cost- cutting techniques and minimization of avoidable costs. 2. Large volume processing capability: being the largest financial service provider in the country, it has the unique distinction of operating its activities on a large scale which benefits all the parties cordially. 3. Adherence to strict time schedule: Karvy knows that time is money and tries it best to finish the task within the stipulated time schedule. 4. Expertise in coordinating multi-location responses: Karvy has got a wide network and hence one can find its branches at most of the places in India. Thus it enjoys its presence everywhere and coordinates among itself in solving the queries and in responding to any situation. 5.Expertise in managing independent entities such as banks, post-office etc.: the work culture of Karvy and the ethics followed inside Karvy makes its workforce compatible with everybody, so the Karvy people establishes good coordination with independent entities too. 6. Pooling of group resources: Karvy group consists of eight subsidiaries, so it can easily pool up its resources for accomplishment of its goals, whenever needed. The groups can help each other whenever there are peaks and lows, and even in the case when they have huge targets just as we saw few years back, Tata group pooling its resources to acquire Corus. How Karvy achieved it? The core competency of Karvy lies in the following points due to which it enjoys a competitive edge over its competitors. The following culture adopted by karvy makes it all time favorite among its clientele: 1. Professionally managed by qualified and trained manpower. 2. Uniquely structured in-house software and hardware department 3. Query handling within 48 hrs. 4. Strong secretarial, accounting and audit systems. 5. Unique work culture of working 7 days a week in 3 shifts. 6. Unmatched network spreading all over India. How Achievements sounds synonymous to karvy: The landmarks achieved by karvy very well define its success story. In the previous pages, we learnt how a company started by five chartered accountants, named as karvy and company turned into today’s karvy group, the largest financial intermediary of India. But success didn’t came to karvy at a flow, the hard work and dedication of its workforce made it what it is today…gradually it achieved the following landmarks and now it has became what we call the karvy group, now it is: 1. Largest independent distributor for financial products. 2. amongst the top 5 stock broker. 3. among the top 3 depository participants. 4. Largest network of branches & business associates. 5. ISO 9002 certified operations by DNV. 6. amongst top 10 investment bankers. 7. Adjudged as one of the top 50 IT users in India by MIS south Asia. 8. full- fledged IT driven operation. 9. India’s no.1 registrar & securities transfer agent. Clientele of Karvy: Karvy’s culture has helped Karvy in achieving such a distinct position in the market where it can boast of its huge client base. Be it a retail investor investing Rs. 500 in a SIP in Reliance mutual fund or be it the largest corporate house of the country: Reliance industries- everybody is heading towards Karvy for their wealth maximization, lets have a look at the clientele of Karvy : According to the data published in year 2007, Karvy stock broking ltd. Operates through more than 12000 terminals, more than 290000 accounts are maintained and commands over 3.14% market share of NSE. The distribution services have access to more than Rs. 40 billion Assets under Management. Karvy being a depository participant with both NSDL and CDSL, manages more than 700000 accounts from more than 380 locations. Talking about the registry services, it manages over 750 public/ right issues. At the same time, it is managing over 16 million portfolios as registrar. If we took a look at some of the top corporate houses availing the services of Karvy then we have: Reliance, IOC, IDBI,LIC, Hindustan Unilever, Principal Mutual Fund, Duetsche Mutual Fund, Yogokawa, Marico Industries, Patni Computers, Morgan Stanley, Glenmark, CRISIL, 3M, Kotak Mahindra Bank, Bharti Televenture, Infosys Technologies, Wipro, Infotech, IPCL,TATA consultancy services, UTI mutual fund etc. Thus in total karvy serves over 16 million investors and 300 corporate. Now, as the project was carried on in Burdwan, so there is a special reference to working of Karvy at eastern zone and Stock Broking in particular. KARVY at eastern zone: Karvy stock Broking Ltd was started 11 yrs ago i.e.; during the year 1996 at Jatin Das road which was later on established as the regional head office. Presently Mr. Alok Chaturvedi is heading the eastern zone. Talking about the zonal offices, Karvy has zonal offices at Kolkata, south Bengal, north Bengal, North east, Jharkhand, Bihar, Orissa and Chhattisgarh. Each zonal office has got its own zonal heads. Karvy is a member of three stock exchanges of India: National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and Hyderabad Stock Exchange (HSE). Structure according to the Products offered by Karvy: REGIONAL HEADS PRODUCT HEADS Debt DivisionReality Merchant & inv.BankingPMSInsurance BrokingMutual fundsCommoditiesDPStock Broking Stock Broking Services It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends, planning with foresight and choosing one’s options with care. This is what we provide in our Stock Broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country. We offer trading on a vast platform ; National Stock Exchange and Bombay Stock Exchange. More importantly, we make trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. We are assisted in this task by our in-depth research, constant feedback and sound advisory facilities. Our highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to our customers, through daily reports delivered thrice daily ; The Pre-session Report, where market scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch break , where the market forecast for the rest of the day is given and The Post-session Report, the final report for the day, where the market and the report itself is reviewed. To add to this repository of information, we publish a monthly magazine “Karvy ; The Finapolis”, which analyzes the latest stock market trends and takes a close look at the various investment options, and products available in the market, while a weekly report, called “ Karvy Bazaar Baatein”, keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on various industries. Besides this, we also offer special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to your portfolio. Our Stock Broking services are widely networked across India, with the number of our trading terminals providing retail stock broking facilities. Our services have increasingly offered customer oriented convenience, which we provide to a spectrum of investors, high-networth or otherwise, with equal dedication and competence. But true to our spirit, this success is not our final destination, but just a platform to launch further enhanced quality services to provide you the latest in convenient, customer-friendly stock management. Over the years we have ensured that the trust of our customers is our biggest returns. Factors such as our success in the Electronic custody business has helped build on our tradition of trust even more. Consequentially our retail client base expanded very fast. To empower the investor further we have made serious efforts to ensure that our research calls are disseminated systematically to all our stock broking clients through various delivery channels like email, chat, SMS, phone calls etc. Our foray into commodities broking has been path breaking and we are in the process of converting existing traders in commodities into the more organized mainstream of trading in commodity futures, both as a trading and risk hedging mechanism. In the future, our focus will be on the emerging businesses and to meet this objective, we have enhanced our manpower and revitalized our knowledge base with enhances focus on Futures and Options as well as the commodities business. Depository Participants The onset of the technology revolution in financial services Industry saw the emergence of Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards enabling further comfort to the investor by promoting paperless trading across the country and emerged as the top 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a powerful medium for trading and settlement of dematerialized shares. We have established live DPMs, Internet access to accounts and an easier transaction process in order to offer more convenience to individual and corporate investors. A team of professional and the latest technological expertise allocated exclusively to our demat division including technological enhancements like SPEED-e, make our response time quick and our delivery impeccable. A wide national network makes our efficiencies accessible to all. SWOT ANALYSIS SRENGTH:- Co-operative and experienced branch Managers Good database Low pricing Karvy Brand WEAKNESS:- Inexperienced staff Low awareness due to lack of advertisement Lack of loyal clientage Developing product OPPORTUNITY:- Untapped Market Increased spending power Changing mindset of customers Unpredictable sensex THREATS:- Reach Stiff competition from existing players in the market Better products What does Karvy Stock Broking Ltd offers? Personalised service Companies believes in providingpersonalized service and individual attention to each client to ensure that we understand their goals and help them to achieve it. Professional advice Companies provide expert advice on equity and debt portfolios with an objective to provide consistent long-term return while taking calculated market risks. Companies approach helps client build a proper mix of products, and not concentrate on just one individual products. Hence, serving long-term objectives in the best way. Long-term relationship Company believes that long-term vision is the only means to steady wealth creation. However to achieve this one also need to take advantage of short term market opportunities while not losing sight of long term objectives. Hence it partners all its clients in realizing their long-term vision. Access to research report Company provides the clients with access to the expert opinion of economists and analysts. Transparency and confidentiality Companies clients receive regular portfolio statements from relationship managers via e-mail. KARVY PRODUCT How are financial instruments bought and sold? Till the 1990s, buying or selling of financial instruments used to happen in a physical sense (out cry system). Not only there was a need to verbally express every transaction, but there were also various documents that had to be exchanged between the user (may be a buyer or a seller) and the service provider each time a transaction took place. A user also had to complete formalities (like attaching transfer stamps on the security, putting multiple signatures, writing the postal address etc.) each time there was a transfer of ownership. The user then would inform the issuer of the security (mostly by post with the original documents, stamped & signed) if he wanted to register as the owner of the said security. In the 1990s, NSE introduced screen-based trading, where the buying and selling would take place on the exchange’s electronic system. Subsequently, the BSE too introduced screen-based trading. Over the next few years, only dematerialized shares were allowed to be traded on the stock exchanges, doing away with maintaining reams of paper. What is e-broking or online trading? E-broking is the process of buying or selling securities through the Internet. To trade online, you need to have access to a personal computer (with a modem), a telephone and an Internet account with any one of the Internet service providers. Karvyonline as a brokerage house offers users an interface on the Internet (what you see when you log on to our site) and also offers the required guidance for them to place buy or sell orders over the Internet. In India, the NSE and BSE allow brokerage houses like Karvy stock broking ltd. that are registered with the Securities Exchange Board of India (SEBI) to offer e-broking facilities to their users. What is a contract note? It is a statement of confirmation of trade(s) done on a particular day for and on behalf of a client. A contract note is issued in the prescribed format and manner, establishing a legally enforceable relationship between the member and client in respect to the trades stated in that contract note. Contract notes are made in duplicate, where the member and client both keep one copy each. Contract notes should be preserved carefully for future records and even for tax purposes. If there are disputes in the case of orders placed over phone, how can they be resolved? Orders over the telephone can be placed only through designated telephone numbers. We have a voice recording system to record all orders placed over the telephone. We will ask for customer ID details before processing the order. Still, if a dispute arises, the voice recording would be the final proof for settling the dispute. Trading Package of Karvy Online I-Zone One-Stop Registration for Investment Zone -22860034290Karvy online: A single account Equities & Derivates (NSE / BSE) Mutual Funds:(All major AMCs) IPOs & DP services (NSDL/CDSL) Commodities (NCDEX & MCX) Facilities: Live market news Quality research live on the trading screen Top analysts providing inputs on strategies and recommendations Alert facility for tracking Seamless integration between bank, broking, mf and DP Accounts Comprehensive net worth statement Live tracking of investments Corporate news a click away Streaming quotes and news from the exchange on your desktop High quality support team to enable you Links to existing Karvy relations Offline Broking ID – The same UCC would be allotted for the I-Zone account. Offline Mutual Fund Code – The existing Offline Folios if held singly in the name of Sole / First Applicant would be available for display in the online Login of the client. The portfolio would be updated on a daily basis. However, online transactions can be executed in such offline folios only after conversion of such offline folios to online folios. For conversion the client needs to provide one letter to each AMC in whose scheme he/she has invested mentioning the offline Folio number. Demat ID –If the client already holds a demat account with Karvy where the holder(s) in demat is same as applicants in the I-Zone form and in the same sequence, the existing demat account can be connected to the I-Zone account. All IPO bids, in such case, would be placed in the name of joint holders as in demat account. -342900-342900 With the changing market scenario Karvy change the Karvy Online product from I-Zone to 240982521590 I-Zone Facilities Free online stock-broking and attractive margin funding options Life time free demat account Free online commodities broking account Free Mutual Fund transactions to an unlimited extent ,including unlimited SIP transactions Application in IPOs with attractive loan options for applications Loans against securities Daily equity market research reports and calls through SMS Access to research reports on Mutual Fund, IPO sand Insurance Regular portfolio statement for better planned future investments Free financial advise on portfolio allocation in various asset classes Free subscription of ‘KARVYF FinaPolis’ magazine The Value You Get If these are not part of I-Zone + Then their value will beYour MF transactions in a year (assumedto be valued at Rs. 1,00,000)Rs. 1,500/-Normal Annual Maintenance charges for a Equity Broking + DematAccountRs. 500/-Normal Annual Charge for a Commodities Broking AccountRs. 200/-Market Price for an elementary health checkupRs. 1,500/-Subscription to ‘KARVY FinaPolis’ magazineRs. 300/-Total Value Payable UpfrontRs. 4,000/- The Value You Pay For ParticularsValueYou initially pay a Margin deposit ofRs. 5,000/-Annual Maintenance Charges (AMC) for I-Zone +Rs. 2,400/-The remaining money you can use as margin money for your trades isRs. 2,600/- COMPETITORS OF KARVY A diversified financial services group with a pan-India presence and presence in multiple international locations, Religare Enterprises Limited (quot;
RELquot;
) offers a comprehensive suite of customer-focused financial products and services targeted at retail investors, high net worth individuals and corporate and institutional clients. REL, along with its joint venture partners, offers a range of products and services in India, including asset management, life insurance, wealth management, equity and commodity broking, investment banking, lending services, private equity and Mutual Fund. With a view to expand and diversify, REL operates in the life insurance space under 'Aegon Religare Life Insurance Company Limited' and has launched India's first wealth management joint venture under the brand name 'Religare Macquarie Private Wealth'. REL operates from seven domestic regional offices, 43 sub-regional offices, and has a presence in 498 cities and towns controlling 1,837* business locations all over India. The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers. Shriram insight Share Brokers Ltd. was incorporated in 1995; it was promoted by professional entrepreneurs and incubated by Shriram group. It commenced operations with corporate membership on NSE in cash segment in 1996. It provides customers with access to Equity, Equity and Commodity Derivatives, Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Shriram Insight Share Brokers Ltd. is the stock broking arm of 14… crore (3.2bn) Shriram group, a name to reckon with in the financial services sector for the past 3 decades and market leader in truck finance. Shriram Insight has some corporate vision to achieve the success ladder. Reliance Money, a Reliance Capital company and part of the Reliance Anil Dhirubhai Ambani Group is a comprehensive financial services and solution provider. It is a one-stop-shop, providing end-to-end financial solutions (including mobile and web-based services). It has the largest non-banking distribution channel with over 10,000 outlets and 20,000 touchpoints spread across 5,165 cities/ towns; catering to the diverse needs of over 3 million existing customers. Reliance Money endeavors to change the way investors transact in financial markets and avails financial services. It provides customers with access to Equity, Equity and Commodity Derivatives, Offshore Investments, Portfolio Management Services, Wealth Management Services, Investment Banking, Mutual Funds, IPOs, Life and General Insurance products and Gold Coins. Customers can also avail Loans, Credit Card, Money Transfer and Money Changing services. UNICON is a financial services company which has emerged as a one-stop investment solutions provider. It was founded in 2004 by two visionary and flamboyant entrepreneurs, Mr. Gajendra Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. The company is headquartered in New Delhi, and has its Corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida. UNICON is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 400 man years in the financial markets The Company is supported by more than 4500 Uniconians and has a team of over 900 business offices in 235 cities across India and a customer base of over 2,00,000. Kotak Securities Ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and largest broking firms in the Industry. Kotak Securities offers include stock broking through the branch and Internet, Investments in IPO, Mutual funds and Portfolio management service. Kotak Securities is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), Kotak process more than 400000 trades a day which is much higher even than some of the renowned international brokers. The Network of Kotak Securities spans over 331 cities with 843 outlets. Kotak Securities Limited has Rs. 2599 crore of Assets Under Management (AUM) as of 30th June, 2009. The portfolio Management Service provides top class service, catering to the high end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert. REVIEW OF LITERATURE Meaning and definition: According to Philip Kotler “Competitor Analysis refers to the process of identifying key competitors, assessing their objectives, strategies, strength and weaknesses, and reaction patterns, and selecting which competitors to attack or avoid.” Once a company identifies its primary competitors, it must ascertain their strategies, objectives, strength and weaknesses. Strategies: A group of firms following the same strategy in a given target market is called a strategic group. Objectives: Once a company has identified its competitors and their strategies, it must ask; what is each competitor seeking in the marketplace? What drives each competitor’s behavior? Many factors shape a competitor’s objectives, including size, history, current management, and financial situation. If the competitor is a division of a larger company, it is important to know whether the parent company is running it for growth, profits, or milking it. Strengths and Weaknesses: A company needs to gather information about each competitor’s strength and weaknesses. In general, a company should monitor three variables when analyzing competitors: ,[object Object]

Share of mind: the percentage of customers who named the competitor in responding to the statement, “Name the first company that comes to mind in this industry.”

Share of heart: the percentage of customers who named the competitors in responding to the statement, “Name of the company from which you would prefer to buy the product”.

Companies that make steady gains in mind share and heart share will inevitably make gains in market share and profitability. To improve market share, many companies benchmark their most successful competitors, as well as other world-class performers. Identifying competitors: Normally, identifying competitors would seem a simple task. At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices. Assessing Competitors: Having identified the main competitors, marketing management now asks: What are competitor’s objectives—what does each seek in the marketplace? What is each competitor’s strategy? What are various competitor’s strength and weaknesses, and how will each react to actions the company might take? Determining Competitor’s Objectives: Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on current profitability, market share growth, cash flow, technological leadership, service leadership, and other goals. Knowing a competitor’s mix of objectives reveals whether the competitor is satisfied with its current situation and how it might react to different competitive actions. For example, a company that pursues low-cost leadership will react much more strongly to a competitor’s cost-reducing manufacturing breakthrough than to the same competitor’s advertising increase. Identifying Competitor’s Strategies: The more that one firm’s resembles another firm’s strategy, the more the two firms complete. In most industries, the competitors can be sorted into groups that pursue different strategies. A strategic group is a group of firms in an industry following the same or a similar strategy in a given target market. Assessing Competitor’s Strength and Weaknesses: Marketers need to assess each competitor’s strength and weaknesses carefully in order to answer the critical question: What can our competitors do? As a first step, companies can gather data on each competitor’s goals, strategies, and performance over the past few years. Admittedly, some of this information will be hard to obtain. For example, business to business marketers find it hard to estimate competitors’ market shares because they do not have the same syndicated data services that are available to consumer packaged-goods companies. Companies normally learn about their competitors strength and weaknesses through secondary data, personal experience, and word of mouth. They can also conduct primary marketing research with customers, suppliers, and dealers. Or they can benchmark themselves against other firms, comparing the company’s products and processes to those of competitors or leading firms in other industries to find ways to improve quality and performance. Benchmarking has become a powerful tool for increasing a company’s competitiveness. Estimating Competitor’s Reactions: next, the company wants to know: what will our competitors do? A competitor’s objectives, strategies, and strength and weaknesses go a long way toward explaining its likely actions. They also suggest its likely rections to company moves such as price cuts, promotion increases, or new-product introductions. In addition, each competitor has a certain philosophy of doing business, a certain internal culture and guiding beliefs. Marketing managers need a deep understanding of a given competitor’s mentality if they want to anticipate how the competitor will act or react. Selecting competitors to Attack and Avoid A company has already largely selected its major competitors through prior decisions on customer targets, distribution channels, and marketing-mix strategy. Management now must decide which competitors to complete against most vigorously. Strong or Weak Competitors: The company can focus on one of several classes of competitors. Most companies prefer to complete against weak competitors. This requires fewer resources and less time. But in the process, the firm may gain little. You could argue that the firm also should complete with strong competitors in order to sharpen its abilities. A useful tool for assessing competitor strengths and weaknesses is customer value analysis. The aim of customer value analysis is to determine the benefits that target customers value and how customers rate the relative value of various competitor’s offers. Close or Distant Competitors: Most companies will compete with close competitors- those that resemble them most- rather than distant competitors. Thus, Nike competes more against Adidas than against Timberland. And target competes with WalMart rather than against Neiman Marcus or Nordstrom. “Good” or “Bad” Competitors A company really needs and benefits from competitors. The existence of competitors results in several strategic benefits. Competitors may help increase total demand. They may share the costs of market and product development and help to legitimize new technologies. They may serve less-attaractive segments or lead to more product differentiation. Finally, they lower the antitrust risk and improve bargaining power versus labor or regulators. Competitive Strategies: Having identified and evaluated its major competitors, the company now must design broad competitive marketing strategies by which it can gain competitive advantage through superior customer value. But what broad marketing strategies might the company use? Which ones are best for a particular company, or for the company’s different divisions and products? Basic competitive Strategies Almost three decades ago,Michael Porter suggested four basic competitive positioning strategies that companies can follow- three winning strategies and one losing one. The three winning strategies include: Overall cost leadership: Here the company works hard to achieve the lowest production and distribution costs. Low costs let it price lower than its competitors and win a large market share. Texas Instruments, Dell, and Wal-Mart are leading practitioners of this strategy. Differentiation: Here the company concentrates on creating a highly diffentiated product line and marketing program so that it comes across as the class leader in the industry. Most customers would prefer to own this brand if its price is not too high. IBM and Caterpillar follow this strategy in information technology and services and heavy construction equipment, respectively. Focus: Here the company focuses its effort serving a few market segments well rather than going after the whole market. Selecting customers: As part of the competitive analysis, firms must evaluate its customer base and think about which customers it’s willing to lose and which it wants to retain. One way to divide up the customer base in terms of whether a customer is valuable and vulnerable, creating a grid of four segments as a result; see below each segment suggests different competitive activities. VulnerableNon VulnerableValuable These customers are profitable but not completely happy with the company. Find out and address their sources of vulnerability to retain them. These customers are loyal and profitable. Don’t take them for granted but maintain margins and reap the benefits of their satisfaction. Not ValuableThese customers are likely to defect. Let them go or even encourage their departure. These unprofitable customers are happy. Try to make them valuable or vulnerable. SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. SWOT Analysis has done during the preparation of this project. It helps to analyse and evaluate the company’s strength/weaknesses and opportunity and threats. Company’s strength and weakness helps to understand their market strategies which they apply in the marketplace in order to attract new customers as well as capturing the insight of existing customers also. Opportunity and threats determines the company’s new upliftment and what are the barriers comes in front of the company which creates difficulties to enhance the market growth and increase in market share. A SWOT Analysis is designed to identify the environment in which an organization is operating. Doing so aids in the development of communication strategies. For the purpose of a swot analysis, internal factors are those things over which and organization has some measure of control. External factors are those things over which an organization as no control. Strengths (positive internal factors): what do we see as our organisation’s present strengths, especially as they relate to the issues we presently confronting? Weaknesses (negative internal factors): what are our organization’s present weaknesses, especially as they relate to our competitors? Remember that a competitor, in this context, does not necessarily mean a rival company, product, service or point of view. It could be anything that competes for the attention of the publics being targeted. Opportunities (positive external factors): what potential opportunities exist in the future especially as they relate to the issues we are presently confronting? Threats (negative external factors): what are the threats we face in the future and, therefore, must be prepared to fact? Remember that a threat, in this context, does not necessarily mean a direct threat. It can be anything that can prevent an organization from reaching its goals. The SWOT Analysis Grid Strengths(Internal / Positive)Opportunities(External / Positive)Weaknesses(Internal / Negative)Threats(External / Negative) Competitive forces Michael porter has identified five forces that determine the intrinsic long-run attractiveness of a market or market segment: industry competitors, potential entrants, substitutes, buyers, and suppliers. His model is shown below. The threats these forces pose are as follows: Threat of intense segment rivalry: A segment is unattractive if it already contains numerous, strong, or aggressive competitors. It’s even more unattractive if it’s stable or declining, if plant capacity must be added in large increments, if fixed costs or exit barriers are high, or if competitors have high stakes in staying in the segment. These conditions will lead to frequent price wars, advertising battles, and new product introductions and will make it expensive to complete. The cellular phone market has seen fierce competition due to segment rivalry. Threat of new entrants: The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter the industry, and poorly performing firms can easily exit. When both entry and exit barriers are high, profit potential is high, but firms face more risk because poorer-performing firms stay in and fight it out. When both entry and exit barriers are low. The worst case is when entry barriers are low and exit barriers are high: here firms enter during good times but find it hard to leave during bad times. The result is chronic overcapacity and depressed earnings for all. The airline industry has low entry barriers but high exit barriers, leaving all carriers struggling during economic downturns. Threat of substitute products: A segment is unattractive when there are actual or potential substitute for the product. Substitutes place a limit on prices and on profits. If technology advances or competition increases in these substitute industries, prices and profits are likely to fall. Greyhound and Amtrak have seen profitability threatened by the rise of air travel. Threat of buyer’s growing bargaining power: A segment is unattractive if buyers possess strong or growing bargaining power. The rise of retail giants such as Wal-Mart has led some analysts to conclude that the potential profitability of packaged-goods companies will become curtailed. Buyer’s bargaining power grows when they become more concentrated or organized, when the product represents a significant fraction of the buyer’s cost, when the product is undifferentiated, when buyers’ switching costs are low, when buyers are price sensitive because of low profits, or when they can integrate upstream. To protect themselves, sellers might select buyers who have the least power to negotiate or switch suppliers. A better defense consists of developing superior offers that strong buyers cannot refuse. Threat of suppliers’ growing bargaining power: A segment is unattractive if the company’s suppliers are able to raise prices or reduce quantity supplied. Oil companies such as ExxonMobil, Shell, BP, and Chevron-Texaco are at the mercy of the limited amount of oil reserves and the actions of oil-supplying cartels such as OPEC. Suppliers tend to be powerful when they are concentrated or organized, when there are few substitutes, when the supplied product is an important input, when the costs of switching suppliers are high, and when the suppliers can integrate downstream. The best defenses are to build win-win relationships with suppliers or use multiple supply sources. Research Methodology RESEARH METHODOLOGY ,[object Object]

Research methodology is away to systematically solve the research problem. It may understand as a science of studying how research is done scientifically. In it, we study the various steps that are generally adopted by the researcher in study of his research problem along with logic behind them.A Research design is a framework or blueprint for conducting the research of a project. It details the procedures necessary for obtaining the information needed. A research design lays the foundation for conducting the project. TYPES OF RESEARCH DESIGN Historical Research Design - The purpose is to collect, verify, synthesize evidence to establish facts that defend or refute your hypothesis. It uses primary sources, secondary sources, and lots of qualitative data sources such as logs, diaries, official records, reports, etc. The limitation is that the sources must be both authentic and valid. Case and Field Research Design - Also called ethnographic research, it uses direct observation to give a complete snapshot of a case that is being studied. It is useful when not much is known about a phenomenon. Uses few subjects. Descriptive or Survey Research Design - It attempts to describe and explain conditions of the present by using many subjects and questionnaires to fully describe a phenomenon. Survey research design /survey methodology is one of the most popular for dissertation research. There are many advantages. Correlational or Prospective Research Design - It attempts to explore relationships to make predictions. It uses one set of subjects with two or more variables for each. Causal Comparative or Ex Post Facto Research Design - This research design attempts to explore cause and affect relationships where causes already exist and cannot be manipulated. It uses what already exists and looks backward to explain why. Developmental or Time Series Research Design - Data are collected at certain points in time going forward. There is an emphasis on time patterns and longitudinal growth or change. Experimental Research Design - This design is most appropriate in controlled settings such as laboratories. The design assumes random assignment of subjects and random assignment to groups (E and C). It attempts to explore cause and affect relationships where causes can be manipulated to produce different kinds of effects. Because of the requirement of random assignment, this design can be difficult to execute in the real world (non laboratory) setting. Quasi Experimental Research Design - This research design approximates the experimental design but does not have a control group. There is more error possible in the results. ,[object Object]

The design chosen for this project was “DESCRIPTIVE RESEARCH DESIGN” as well as “EXPLORATORY” in nature, which is used when the purpose of research is:

To describe the characteristics of certain groups:

To estimate the prediction of people in a specified population who behave in a certain way.

To make specific prediction.The approaches to data collection are as follows: Primary Data: These data are collected first time as original data. The data is recorded as observed or encountered. Essentially they are raw materials. They may be combined, totaled but they have not extensively been statistically processed. Sources of primary data: In this project primary data was collected through Direct Observation Personal interview Questionnaire Secondary Data: This is also known as published data, data which are not originally collected but rather obtained from published source and statistically processed are known as secondary data. Sources of secondary data: ,[object Object]

WebsiteSampling Sampling procedure: The sample is selected in a random way, irrespective of them being investors or not or availing services or not. It was collected through personal visits to the known person, by formal and informal talks and through filling up the questionnaire prepared. Sample size: The sample size of my project is limited to 50 only. Sample design: Data has been presented with the help of pie charts. Statistical Hypothesis: A statement about the parameters of one or more population distributors, which is formulated on the basis of sample data. It gives proper conclusion about the population drawn, once it is tested. Null Hypothesis Alternative hypothesis With the help of questionnaire, we used to apply chi-square test in this project in order to find out whether there is any significant difference between Karvy Stock Broking Ltd and other stock broking leading companies regarding their services provided. Null Hypothesis: Statistically, there is no significant difference between Karvy Brokerage firm and other stock broking firm regarding their service provided. Alternative hypothesis: Statistically, there is the significant difference between Karvy brokerage firm and other stock broking firm regarding their service provided. LIMITATIONS OF THE RESEARCH 1. The research is confined to a certain parts of Burdwan (West Bengal) and does not necessarily shows a pattern applicable to all of Country. 2. Some respondents were reluctant to divulge personal information which can affect the validity of all responses. 3. In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The environmental changes are vital to be considered in order to assimilate the findings. DATA ANALYSIS AND INTERPRETATION PERCENTAGE REPRESENTATION OF DEMAT ACCOUNT PREFERENCES BY THE 50 CUSTOMERS SURVEYED: KARVY STOCK BROKING LTD.24%INDIA INFOLINE20%RELIANCE MONEY16%RELIGARE14%UNICON10%SHRIRAM8%KOTAK8% PIE CHART REPRESENTATION OF CUSTOMERS’ PERFERENECES FOR DEMAT ACCOUNT IN SHARE TRADING ACTIVITIES: In the above pie diagram, we see that 24% of the customers prefer for demat account in share trading activities in Karvy. While, 20% of the customers are in favour of India infoline to prefer for demat account for the purpose of share trading activities. Apart from this, only 8% customers of whole sample size are prefer demat account both Shriram and Kotak each. ,[object Object]

Yes [ ] No [ ]In the above diagram, we find that from the whole sample size, 54% of the customers are employed person, while 46% of the customers are unemployed person. Out of 46% customers some are students and some are businessmen included. ,[object Object]

Yes [ ] No [ ]In the above pie chart, we see that out of total sample size, 65% of them said that yes they are interested to invest money in share market while other 35% are not interested to invest money in share market because of they already engaged in banking and insurance sector to invest money or they are not employed. ,[object Object]

In this above pie chart, we see that 70% of the customers having their Demat Account in any Stock broking Company, while 30% are those persons who have no Demat account due to lack of knowledge about share trading business or lack of affordable money to invest in the share market. ,[object Object]

Reliance Money [ ] Infoline [ ]

Religare [ ] Karvy [ ]

Unicon [ ] Others [ ]In this above diagram, we see that out of 50 people sample size, 12 no. of customers having their demat account opened in Karvy while 10 number of customers having their demat account with India Infoline. Customers having demat account with Religare is counted as 7 from the whole sample size. Only 5 number of customers have engaged in Unicon under which demat account is opened. ,[object Object]

Lack of knowledge about share trading activities [ ]

Enjoy investing in others [ ]

Its benefits are not enough to drive you for investment [ ] From the above mentioned diagram, we are able to understand that 45% of the customers are willing to enjoy investing in others like life insurance, Mutual fund services, IPO etc. Apart from this 28% of the customers do not prefer share trading investment because of they perceive that the benefits are not enough to drive you for investment and rest 27% of the customers having lack of perfect knowledge about share trading activities. ,[object Object]

Unicon [ ] Others [ ]With the help of customer survey, we find that customer choices and preferences depends not only single company. Some customers have preferred for investment at least two companies due to the fluctuation in the share market. In the above diagram, we are able to know that 35% of the existing customers also interested in Reliance Money. While 26% of the customers have also create interest in Karvy, 20% are in India Infoline while only 3% of the existing customers are interested in Shriram insight for share trading investment. ,[object Object]

Yes [ ] No [ ]In the above diagram, we see that 65% of the whole customers like Karvy brokerage Demat account as per their own perception or brand loyalty while other 35% of the existing customers prefer other companies demat account as per their view of interest. ,[object Object]

Young unmarried stage [ ]

Young married children stage [ ]

Married with older children stage [ ]

Pre-retirement stage [ ]As per the above mentioned pie chart, it is clear to know that 55% of the customers are said that young unmarried stage is the best suitable stage to invest money in the share market. While the other 27% out the whole sample size said that young married children stage are the best opportunity stage to make investment in the share market and only 10% preferences goes to married with older children stage and 8% comes under the pre-retirement stage. ,[object Object]

Good [ ] Average [ ] Poor [ ] Excellent [ ]As per the above figure, we see that out of 100 percent, 45% of the customers are in favour of karvy stock broking services and they categories its services facility in good range while 35% categories karvy stock broking services in an average. Only 14% of the customers ranked karvy’s facility in poor range and rest 6% said that karvy provide excellent stock broking services. How much you are in support of demat account AMC charges applied by Karvy? ,[object Object]

Good [ ] Average [ ] Poor [ ] Excellent [ ]As per the above diagram, we see that most of the customers have given poor ranking on the basis of Demat A/C AMC charge applied by Karvy because it is much higher than its competitors. Approximate 44% of the customers opined poor support regarding AMC charge facilitated by Karvy. Apart from it, 32% of the customers have ranked Karvy in an average regarding AMC charges and 24% said that Karvy’s demat account AMC charges is good in some circumstances. ,[object Object]

Good [ ] Average [ ] Poor [ ] Excellent [ ]In the above figure, we see that 45% of the customers said that the Karvy is good to provide margin funding facility to them. While 44% of the customers has given average to Karvy regarding margin funding facility. Only 4% of the customers ranked poor on the basis of this facility provided. ,[object Object]

Good [ ] Average [ ] Poor [ ] Excellent [ ]In the above figure, we mentioned that approximate 60% of the customers are dissatisfied regarding charged applied during opening demat account and they ranked karvy as poor on the basis of charges applied for opening demat account. A little portion of the customers ranked karvy good as 25% and 15% of the customers have given average ranking as compared to their competitors. statistical tools application Demat Account No demat A/CTotalInterested203050Not Interested3515505545100 Null Hypothesis: Statistically, there is no significant difference between Karvy Brokerage firm and other stock broking firm regarding their service provided. Alternative hypothesis: Yes, there is the significant difference between Karvy brokerage firm and other stock broking firm regarding their service provided. Degree of freedom (√) = (r-1) (c-1) => (√) = 1 Expectation of C11 = 50*55/100 = 27.5(approx 28) So, expected frequency shall be: Demat Account No demat A/CTotalInterested282250Not Interested2228505050100 By applying Chi-square Test, we find that Frequencies (O)Frequencies (E)(o-E)2(o-E)2/E2028642.2835221697.683022642.9015281696.03518.895 For √ = 1, χ2= 0.05 = 3.84 The calculated value of chi square is much more than the table value. The hypothesis is rejected. So, we can say that there is a significant difference between the services provided by karvy brokerage and other firms. By applying chi square test, we find that the value of chi-square test is 18.895 which is higher than the table value which is 3.84. So, it indicates that the hypothesis is rejected and we can say that the services provided by Karvy Stock Broking Ltd is significantly different from the other Stock Broking leading companies. FINDINGS After conducting research through applying questionnaire and personal interview I reached at a particular point. The major findings about related information of Karvy are described as below:- People think that share trading is the best way to invest money in the share market to increase profit margin within a short period. They are aware of the fact and realizing its importance. The company should try to expand and build up its infrastructure because there is a large potential for share trading in India as guidelines provided by SEBI. In a single roof, we found that Karvy Stock Broking Ltd. is not only facilitating stock broking services to their customer but also different other financial services are being provided to the customer such as Mutual fund, Insurance, Commodities, DP, Merchant & Inv. Banking, PMS etc. The financial product of KSBL has good credibility as compared to its competitors in the Burdwan town (WB). The objective of the company is not only to facilitate better services to the customers but also to built-up long term mutual relationship with them. The entrance of private players will increase the competition and it would be a tough task to secure a good position in the market. In this tough period, it is necessary for the company to adopt the best market strategy in order to capture the large market share as well as potential customers against their rivals firms. With the help of above pie chart, we can easily access that 24% from the whole customers should preferred Karvy for investment in share trading activities and 70% of the customers having their own demat account in Burdwan town (West Bengal). With the help of applying chi-square test (χ2), we are able to understand that Karvy Stock Broking Ltd provide specific services as compared to its competitors. CONCLUSION While doing my summer internship program I came to a conclusion that this training has helped me much in getting the thorough knowledge about some of the stock broking companies, how these companies are competing against each other for getting the more market share, how they are applying different marketing strategies to attract customers and making them satisfied. I came to know about the demat account, its benefits, how does it provides services to the customers of which I was totally ignorant when I started my project. I gathered much more knowledge about Karvy Stock Broking Ltd. its services, its strategies, and how every employees of it work hard to achieve the organizational goal i.e. achieve the maximum market share through customer satisfaction. One thing that I noticed during my field work that many people of burdwan are not much more awared about the various financial products and services of Karvy which had to be there. They are ignorant about demat account and lack of knowledge and information about it scared them of investing money in share market. So to generate awareness among them advertising campaign can result in fruitful results. Only a limited percentage of people are enjoying investing money in share market in Burdwan. Lastly and not the least as a coin has two sides, Karvy has favorable and unfavorable aspects. The favorable aspect is that it provides lot of benefits to its customers which some of its competitors fail to provide and again less awareness about it among people is its negative side which hinders them to invest their fund confidently. RECOMMENDATIONS Some of my recommendations are summarized below as follows:- It was observed that the most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. It is necessary for a growing company like Karvy to adopt some promotional tools to make it present before the willing investors of the country. Many people who are interested to invest in the share market but cannot rely upon Karvy because of its less popu

Strategic Approach of Karvy Stock Broking Ltd and Its Competitors

Strategic Approach of Karvy Stock Broking Ltd and Its Competitors

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Strategic Approach of Karvy Stock Broking Ltd and Its Competitors