A REPORT ON STUDY OF PRODUCT LINES AND CROSS SELLING DONE BY INDIABULLS SECURITIES

INTRODUCTION TO SECURITIES MARKET  Channel for allocation of savings  Affected by economic, political, cultural and environmental activities Indian Share Market - the oldest Asian stock market

Two most important stock exchanges of India: NSE - 1) Provides access to investors on an equal footing. 2) Operates a nation wide electronic market 3) Provides high level of safety, integrity and corporate governance. BSE - 1) Oldest stock exchange in Asia 2) Worlds number 1 in terms of number of listed companies 3)5th most active in terms of no. of transactions handled 4)1st in India and 2nd in world to obtain ISO 9001-2000 certifications

Stock Broker Professional who buys and sells shares o behalf of investors. 3 types of stock broking service: Execution only, Advisor Dealing and Discretionary Dealing Stock Trading - Traditionally done through stock brokers, personally or through telephones Online stock trading are of two types: 1) Installable s/w based stock trading terminals 2) Web based trading application

PURPOSE OF THE STUDY: This study has done an analysis of different factors that affect the share market so as to know how the market works. There is also a study of different products available by the important brokerage firms of India so as to know where the company stands in terms of market. There is also a SWOT analysis as to know what are the strengths, weaknesses, opportunities and threats for the company as they have newly started cross selling  Analysis has been done based on the responses of the questionnaires for the employees and the existing customers to know whether Indiabulls must go for cross selling or not. SCOPE OF THE STUDY: To know Bout the products and services of Indiabulls Securities as an investor must know about them before using a brokerage firm. Also it helps to know about the customers perceptions , what are the factors they keep in mind while avail products from any organization. From the employees point of view this study tells what is the effect of cross selling on them.

Based on the opinion of the people who may not have sufficient knowledge Very difficult to be able to study all the factors that relate to a specific group of people, event, or occurrence Some participants in the research may have not taken it seriously and has provided silly, inaccurate answers or engage in purposely aberrant behaviors. Impossible to make sweeping generalizations about groups of people based solely on a few interviews, observations, or surveys. Final analysis may not be 100 percent accurate due to inefficient handling and processing of data/resources available at hand or lack of access to sufficient data/resources There is time limit of 3 months of doing this project. Study has been done only in Hyderabad

METHODOLOGY USED: 1. PESTEL , SWOT analysis has been done.

2. Questionnaire have been used for both employees and customers. Sampling done is purposive sampling. Sample size for the employees is 80 whereas for the customers is 130.

3. Exploratory Research has been done.

3. Factor Analysis has been done.

4. Secondary data has been collected from journals, articles and also from the internet .

PRODUCT LINES OF INDIABULLS SECURITIES: Pioneer in retail broking industry having PAN India presence first and only brokerage house to be assigned the highest rating BQ-1 by CRISIL Through various types of brokerage accounts provides product and services related to purchase and sale of securities listed in NSE and BSE

PRODUCTS OF INDIABULLS SECURITIES: Power Indiabulls It provides the best in the class internet trading features . Keeps updated with the latest developments that could impact Indian stock markets.

[contd.] Connects one with the primary market and allows one to keep a trail on the Ongoing & Upcoming IPOs through Online IPO feature. Automatically looks for the new version on login and prompts one with an alert to download the latest version to ensure one always work on the latest PIB Mobile Power Indiabulls - It is the latest offering from Indiabulls Technology desk. It lets one view the latest market rates of ones favorite stocks and futures contracts on the mobile device. It is designed for a BlackBerry smart phone, which can provide customers with access to their online account from anywhere while on the move Depository Services - Offer depository services to create a seamless transaction platform execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. Services is part of ones value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all our needs. Indiabulls Signature Account - One has the flexibility to place orders either by logging on the website, calling at the branch or walking in the branch. One can also get in touch with ones Relationship Manager and Service Branch for all trading related requirements

[contnd.] Indiabulls Equity Analysis complements its equity broking and advisory services with high quality comprehensive report which can be accessed online. The research reports identify, examine and distill attractive investment opportunities. IPO Online It has the convenience in submission of applications from anywhere breaking the limitations of time and geography. It provides offers ONLINE IPO facility to its registered trading customers at absolutely no cost.

A/c Opening

A/c Opening Companies Charges

AMC

Interest Rate

Mode of Trading

Software used

Sharekhan NIL 1styr free, 2ndyr Rs400 19% Online/ Offline

TradeTiger

ICICI Direct

Rs750

Rs500pa

18%

Online/ Offline

Accesed through net

Indiabulls

Rs900

NIL

18%

Online/ Offline

Power India Bulls

Angel broking

Rs660

Rs225

18%

Both online/Offline

Competitors of Indiabulls Securities

Sharekhan brings and provides a user-friendly online trading facility. They also have an extensive all-India ground network of franchisees across the country. The company offers its services through a combination of online and offline channels. The online model comprises a portal, chat facilities, and 'speed trade' terminals. Kotak Securities has 195 branches servicing more than 2,20,000 customers & coverage of 231 Cities. AKSESS offers you an easy way to get to Kotak Securities' institutional research. K.E.A.T is special software ICICI Securities Limited is Indias leading full service investment bank with a dominant position in all segments of its operations, ICICI Securities is amongst the largest arranger of funds in Debt and Equitysegments and also amongst the leading advisors in Mergers and Acquisitions

FACTORS AFFFECTING STOCK MARKET

i) Market Sentiment - Public sentiment regarding the stock market can cause the market to either go up or down and consequently that can result in the rise or fall of stock prices ii) News - The news can have either a negative or positive effect on the prices of stock. iii) Industry Conditions - Conditions in the industry related to the stock can either negatively or positively affect the price of the stock. iv) Company Financials - For many investors, a company's financial health is one of the most important criteria they look for when choosing a stock to invest in. v) Supply and Demand - Stock prices are ultimately derived from supply and demand

vi) World Events - Factors involving world events both foreseen and unforeseen can have regional or global effects within the stock exchange system vii) Psychology - As making money is a primary goal for stock market participants, emotional or psychological factors exert a significant influence on changes taking place in the stock exchange.

PESTEL ANALYSIS OF SHARE MARKET Political conditions - Internal, regional, and international political conditions and cases can have a profound effect on currency marketplaces. For instance, political upheaval and instability can have a negative impact on a nations economy. e.g- 1) Global economies are bracing for a new oil price shock caused by political unrest in the Middle East,. 2) Political unrest in Northern Africa and the Middle East negatively affected corn prices mid-month, but prices recovered within a few trading sessions to monthly highs due to strong demand. 3) . Soybean prices decreased by 4.0% in February due to the political issues in Northern Africa and the Middle East. Economical conditions - Higher economic growth or better prospects for growth help firms be more profitable because there is more demand for goods and services.

i) Income Inequality Has kept on increasing as the businessmen-politician-bureaucrat nexus drains India dry. $2 Billion home coexists with most of the worlds hungry people. ii) High Inflation-Onion prices have risen to a great extent, so have the fruits. Though fruit juices and onions do not affect India growth story by much its the same sorry tale in the price trend of all major commodities including most of the food articles. It has also affected the profitability of the companies

Social- Trends in social factors affect the demand for a company's products and how that company operates. i)Scams and Corruptions - The numerous scams and scandals involving top banks in the bribes-forloans scandal have also taken their toll on the government and much of the sheen off the stock market. ii)Cricket World Cup - The impact of sporting events on stock prices have already been captured in several recent research studies. A finding in these studies shows that stock prices react sharply to team performance in big sporting events, and when it comes to an event like the Cricket World Cup, the impact would be certainly significant, for sure.

Technological-Technological factors include technological aspects such as R&D activity, automation technology incentives and the rate of technological change. Furthermore, technological shifts can affect costs, quality, and lead to innovation. Environmental - Environmental factors include ecological and environmental aspects such as weather, climate, and climate change which may especially affect industries. The recent environmental factors that have already affected the stock market are as follows.  Earthquake in Japan - The massive earthquake in northeast Japan had an impact on global financial markets. Japan was badly hurt as foreign investment fell on concerns about risks. There was a migration from Japanese equities and bonds. Legal These factors include discrimination law, consumer law, antitrust law, employment law and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

CROSS- SELLING BY INDIABULS SECURITIES Indiabulls Securities Ltd has started cross selling home loans and real estates besides selling their mother products. Now, let us discuss some facts about cross selling. Cross selling means selling an additional product or service to an existing customer. The objectives of cross-selling can be either to increase the income derived from the client or clients or to protect the relationship with the client or clients.

Strategies for cross selling: The existing client base can be used cross selling after carefully charting the profile of the customers. Organizations can undertake studies for various products and various geographical areas to understand the potential available for cross selling. They may undertake some of the following steps: - Collection of data and preparation of data base of the customers - Identification of customers and products that could be offered and then charting the strategy to offer the products. - Imparting proper training to the staff to create team spirit and sharing with them the strategy for undertaking cross selling. - Selecting target customers and narrowing down the product range, or even development of new products if necessary, to meet the specific needs of the group. -Effective delivery. Organizations have to remember that cross-selling is not a transaction based activity; it is primarily, a relationship building exercise.

Hyderabad Real Estate Boom  Hyderabad real estate is booming and how! Hyderabad is emerging as a key market in India's growth story Hyderabad obviously is happier than Mumbai in terms of density expressed in persons per room. Hyderabad is also apparently better than Calcutta, Delhi and Ahmedabad in terms of percentage of houses with water and electricity. Hyderabad is also safer than Chennai, Calcutta and Delhi in terms of air and noise pollution. The development of townships in Hyderabad which are providing state of the art facilities has also contributed towards the growth of real estate. Local as well as foreign investors are getting attracted due to IT campus, special economic zones, commercial buildings, malls, new airport and others.

Home loans by Indiabulls Securities Limited  Indiabulls is providing home loans at only 9.75% for the salaried persons and 12.5% for the self employed persons.  Offering home loans in 48 hrs. With this, Indiabulls Home Loans becomes one of the fastest Home Loan providers in India,. This special scheme is available in about 140 towns and cities across India with door step loan service Dedicated relationship manager Online access to your home loan account

Selling of real estates by Indiabulls Securities Indiabulls Central Park is a township of welldesigned 2, 2 1/2, 3 and 4 bedroom apartments. The flats are starting from Rs.42, 000. Flats are also present in Vaizag, Chennai, Delhi etc

Strengths of Indiabulls Securities 1) Diverse Branch Network provides ample opportunities to penetrate deep into the existing and untapped market. They have 640 branches across India. 2) Has a strong brand name. 3) Induction of new employees through an extensive computer based training module. 4) Brokerage is less compared to other online trading companies. 5) Strong communication network

6) Have knowledgeable and customer-focused relationship managers who are available24X7 to assist the clients.

Weaknesses of Indiabulls Securities 1)High employee turnover. 2)Their business is dependent on the team of relationship managers who directly manage client relationships. 3)Moreover Indiabulls Securities Limited is new in the market in case of selling home loans and real estate. There are many competitive players in the market. They are acting as market followers. 4)The employees lack proper training in cross selling home loans and real estates. 5)The employees also lack proper knowledge in cross selling.

Opportunities 1) Marketing at rural and semi-urban areas. These areas are yet to be tapped. 2) Changing demographics with higher disposable income So there is a good opportunity in providing home loans and flats. 3) More importance should be given to advertisements and promotions. Threats faced by the company 1)Increasing number of local players. 2)Constant pressure to be cost competitive to meet customer expectations. 3)Relentless pressure to maintain profitability due to rising input/raw material prices. 4)There are so many political issues going on like Telengana factor 5)Indiabulls faces significant competition from companies seeking to attract which are having a wide presence and strong brand name. 6)Services provided by the various companies are homogeneous with very low product differentiation.

FACTOR ANALYSIS OF EMPLOYEES QUESTIONNAIRE Factor analysis has been done using SPSS tool to know what are the factors are effecting the cross selling abilities of the employees. 80 samples were taken. The basic task of factor analysis is to break-up or explain the information contained in a large number of variables into smaller number of factors. 7 factors namely COMFORTNESS LEVEL, BURDEN, PROPER TRAINING, PROFITABLE, PROBLEM IN CONCENTRATING, PROBLEM IN TARGETING, HELP FROM THE COMPANY were taken at first  KMO and Bartlettes Test:

[contd..] High values between 0.5 and 1 indicate factor analysis is appropriate. For our variables, KMO value came to 0.540, which is a satisfactory and indicates that factor analysis can be done. Total Variance Explained:

The Eigen value before and after extraction is shown in the above table. In the Initial Eigen value column (before Extraction) we can see SPSS shows us Eigen value in terms of variance explained i.e. factor 1 which is comfortness level explains 29.382% of total variance.

 Scree Plot

According to this criterion, we can retain the 3 factors as after this a stable plateau is reached.

Inferences: Factor 1: FAC1_1 explains COMFORTNESS LEVEL, BURDEN which together we can name as Level of comfortness in doing cross selling. Factor 2: FAC2_1 comprises PROPER TRAINING, PROFITABLE, PROBLEM IN CONCENTRATING which we can name as Level of competitiveness in doing cross selling. Factor 3: FAC3_1 comprises PROBLEM IN TARGETING, HELP FROM THE COMPANY which we together can name as Difficulty in achieving customers.

Analysis of Customers questionnaire: 130 samples were taken. Satisfaction in doing business with Indiabulls 60 50 40 30 20 10 0

Series1

40% ---- very much satisfied 57-58% approx--- averagely satisfied 15% --- not so much 5% ---- not at all

Awareness about cross selling

none both home real 0 50 100

65% --- aware of both 25% --- is aware of only real estates 15% --- aware of only home loans 15% --- aware of none

Sources of information about cross selling -

60 50 40 30 20 10 0

Series1

55% ---- from internet 45% ---- from friends 30 %---- from phone calls 10 %---- from banners 15 % --- from pamphlets

Preferences of organizations 50 40 30 20 10 0

Series1

45 % --- SBI 25 % --- HDFC 15 % --- Indiabulls 20% ---- LIC 5% -----ICICI

Factors in choosing organizations for home loans

0 40 20 0 Series1

40 % --- repayment time 15 % --- return on 5% -----advertisement 18 %--- brand power

Conclusions 1) Indiabulls Securities is competitive enough in its own field . 2) Many factors that affect the share market that the company has to keep in mind while their business 3) The employees of the company are not competitive enough to carry on cross selling. 4) They are not comfortable and they are not at all competitive enough in doing this. 5) From the customers point of view the company has been able to reach them . 6) Customers prefer SBI and HDFC over Indiabulls. 7) Internet and word of mouth has been successful in reaching the customers 8) They are averagely satisfied in doing business with this company.

RECCOMENDATIONS 1) Make the interest rate less for the existing customers to retain them. 2)Must change their customer care service. 3) Must make their norms more user friendly . 4) Must give proper training to the employees 5)Can also appoint separate individuals who can take part in cross selling 6)They must focus on doing more promotions and advertisements to spread their products.