CONTENTS

Chapter No. Name of the concept Page No.

Introduction

Need of the study

Objectives of the study

I
Scope of the study

Methodology of the study

Limitations of the study

II Review of Literature

III Industry Profile

IV Company Profile

V Data analysis and interpretation

VI Findings, Suggestions and Conclusion

VII Bibliography
CHAPTER I - INTRODUCTION
 INTRODUCTION
“A good broker system must be able to cope with an extremely complex and
dynamic environment.”

There is growing competition between brokerage firms in post reform India. For
investors, it is always difficult to decide which brokerage firm to choose.

The microstructure of the stock market in which brokers work is highly

dynamic and volatile. Many stocks are available to be bought and sold, each exhibiting
its own patterns and characteristics that are highly unpredictable. With so many options
and considerations that need to be taken into account, it is an extremely arduous task
for a broker to investigate aspects of the stock market and consistently provide effective
advice to their clients.

Thus, brokers perform their day-to-day tasks with the aid of a broker system.
Such a system should provide tools for interacting with exchanges and performing
analysis. As a consequence, these broker systems are quite large and complicated by
themselves.

The main purpose of investment is returns and liquidity, commodity market is

less preferred by investors due to lack of awareness. The major findings of this study
are that people are interested to invest in stock market but they lack knowledge.

Research was carried out to find out the brand awareness of online trading firms
with special reference to IIFL Ltd., as well as to find out the preferred brokerage house
by people. Research was also carried to figure out what people prefer while investing in
stock market.

This project aims to analyze the brand awareness of different stock brokers on
the basis of their services, products, growth, and their subsidiaries. Because
Stockbrokers are one of the main participants in stock exchanges worldwide, they often
act as an agent for their clients, making trades on their behalf. They also act as advisors,
providing suggestions to their clients on what stocks to buy and sell.
 NEED OF THE STUDY
Brand awareness, as one of the fundamental dimensions of brand equity, is
often considered to be a prerequisite of consumers’ buying decision, as it represents the
main factor for including a brand in the consideration set. Brand awareness can also
influence consumers’ perceived risk assessment and their confidence in the purchase
decision, due to familiarity with the brand and its characteristics. On the other hand,
brand awareness can be depicted into at least two facets – unaided (brand recall) and
aided (brand recognition) – each of the two facets having its more or less effective
influence on buying decision and perceived risk assessment.

Today investors are facing a growing range of choice for online trading of
stocks. They are making their choice on the basis of their perceptions of brand, quality
service and value.

Every company has to adopt strategies to keep its brand in consumer’s memory.
Strong brand awareness means easy acceptance of new products. An organization has
to measure the level of awareness of the potential customers and has to adopt different
strategies to enhance the awareness level and to identify the appropriate promotional
tool. Brand awareness is asset which brand managers create and enhance to build brand
equity. It is related to the nature and features of product. It leads to brand strength
which is constituted by measuring the variable like leadership, stability, Market,
geographic, trend, support and protection etc…

Creating brand awareness with the use of advertising, promotion event

management etc. A different brand has different kind of awareness which retains
recognition.

Brand awareness satisfies a need of the consumer. A consumer as aims,

ambitions, motivation drives and desire. Consumer feels more powerful when he uses
the brand. Satisfactions or preference for a brand shows how loyal the consumer is
likely to be brand.

In today’s competitive business scenario where every companies product is competing

with each other retaining loyal customer is an essence for which increasing the level of
brand awareness is very vital.
  The primary objective of the project is to study the customer’s brand awareness
towards IIFL’s online trading services.

 This project is aimed to study the framework of secondary markets in India, the
major online trading firms that are in the market.

 The project is aimed to give feedback and suggestions to India Infoline (IIFL
Ltd.) relating to its brand awareness in the market.

This study is not concerned only with brand awareness, but deals also with other facts.
These include:

 From where did the potential investors come to know about the online
trading services of IIFL?

 Which media is effective in communicating the message to the potential

investors?

 Did the potential customers feel that the brand is important to trade their
accounts?

 Which attribute of the service/product drove the potential investor to

prefer IIFL?

 How the brands influence the market

 What is the effect of the competitor’s product/services

 Are the potential customers satisfied with the brand, price, quality etc..?
 OBJECTIVES OF THE STUDY

The main objective of any business is to acquire larger market share, or higher
percentage of sales in the industry. This could be only achieved by building a higher
percentage of brand loyal customers through awareness.

Any company can survive through the stiff competition of the market if it has
brand loyal customer. Today many broking companies in the market have brand loyal
customers and they adopt many strategies to maintain and improve their branded
equity. Without creating proper brand awareness they cannot build brand image.

Strong brands help build the corporate image and also by making it eager for the
trading firms to launch new brands/services. Today brands/services are treated as major
enduring assets of a company. More over brand equity is also a major contributor to
customer equity. This all can happen only when there is proper brand awareness about
the product/service.

This study is under taken to analyze the brand awareness with respect to IIFL
Ltd.

 An attempt has been made to analyze the brand awareness of different stock
trading firms with special reference to IIFL Ltd.

 To judge the awareness level of the prospect investor

 To know how they are aware about online trading

 To judge in which way they have developed the awareness

 To judge which promotional tool is effective to increase the awareness level

among the people

 To see whether brand awareness influences the buying behavior or not

 To know how to maintain and improve brand awareness and to build brand
loyalty

 To understand the customer feedback of IIFL online trading services

 To suggest areas of improvement to IIFL Ltd for improving its brand awareness.
 RESEARCH METHODOLOGY

For the purpose of study, both primary and secondary data has been collected.
The observational method and survey research method is used to collect the primary
data. The survey research method is used to gain insight into the brand awareness of the
customers towards IIFL’s online trading services. The main research instruments used
the required data is a well-structured questionnaire. A detailed questionnaire has been
prepared to reflect the opinions of the customers towards the IIFL Ltd. services and
administered to the same.

The necessary data has also been collected from official records and other
published sources. The collected data is classified, tabulated, analyzed and interpreted.
Finally conclusion is draw based on the study and suggestions are offered for
improving the brand awareness of IIFL’s online trading services.

SAMPLE DESIGN:

For ascertaining the brand awareness towards the IIFL stock broking services,
50 customers have been randomly selected from the Hyderabad city only.

DATA COLLECTION:

There are two types of data collection

1. Primary data

2. Secondary data
Primary data

• Primary data is personally developed data and it gives latest information and
offers much greater accuracy and reliability.

• There are various sources for obtaining primary data i.e., Mail survey, personal
interview,

• Field survey, panel research and observation approach etc.

• The study is dependent on primary data to a maximum extent, which is

collected by way of structures personal interview with customers.

Secondary data

Secondary data is the published data. It is already available for using and its
saves time. The mail source of secondary data are published market surveys,
government publications advertising research report and internal source such as sales,
sales records orders, customers complaints and other business record etc. the study has
also depended on secondary data to little extent, which is collected through internal
source.

For this survey personal interview method was used for collecting primary data. This
survey was conducted by face to face interview customers and found to be best suited
to collect the primary data for this project.
 SCOPE OF THE STUDY

The study is an analysis of brand awareness of different products/services of

IIFL with special regard to online trading. Generally, the online stock trading firms
offer trading in equities, derivatives, commodities and currency.

The study is carried out by interviewing 50 customers (government and

privately employed and businessmen) who were in the age group above 28 years. It has
been deliberately decoded to conduct the survey among this age group because they are
the people who generally look for investments for their better returns in the future.

• The study has only made a humble attempt of evaluation of customer feedback
and brand awareness based on different criteria.

• The brand awareness towards online trading services is carried out in Ameerpet
office of Hyderabad

• The survey conducted will provide the details about the brand awareness levels
responding to the products and services provided by IIFL Ltd.
 LIMITATIONS

• The objective of the study is to understand the awareness levels prevailing

among people regarding online trading services

• The study covers the Hyderabad only and due to the limited sample size, the
facts relabeled in the study may not generalize.

• While calculating the percentages, approximations are made to the nearest

figures, for convenience in understanding.

• The analysis is based on customer’s opinion at the time of survey. Suggestions

and conclusions are based on the limited data.

• Due to time constraint the detailed information cannot be collected, but many
efforts are taken to collect the actual information.

• There was a constraint with regard to time allocation for the research study i.e.
for a period of 45 days.
CHAPTER II - REVIEW OF LITERATURE
Overview

Brand awareness is the first and prerequisite dimension of the entire brand
knowledge system in consumers’ minds, reflecting their ability to identify the brand
under different conditions: the likelihood that a brand name will come to mind and the
ease with which it does so.

Brand awareness can be depicted into brand recognition (consumers’ ability to

confirm prior exposure to the brand when given the brand as cue) and brand recall
(consumers’ ability to retrieve the brand when given the product category, the needs
fulfilled by the category, or some other cues).

Brand awareness is essential in buying decision-making as it is important that

consumers recall the brand in the context of a given specific product category,
awareness increasing the probability that the brand will be a member of the
consideration set. Awareness also affects decisions about brands in the consideration
set, even in the absence of any brand associations in consumers’ minds. In low
involvement decision settings, a minimum level of brand awareness may be sufficient
for the choice to be final. Awareness can also influence consumer decision making by
affecting brand associations that form the brand image.

The outcome of any brand choice can only be known in the future, the consumer
being thus forced to deal with uncertainty. Brand choice could be considered the central
problem of consumer behavior, while the perceived risk associated to buying decisions
is a pivotal aspect of brand choice. Risk is often perceived to be painful in that it may
produce anxiety, in which case it must be dealt in some manner by the consumer.

All About Branding:

The term brand means different things to the different roles of buyer and seller,
with buyers generally associating brand with a product or service, and merchants
associating brand with identity. Brand can also identify the company behind the
specific product -- that's not just a biscuit, that's Britannia biscuit. This use of brand
puts a "face" behind the name, so to speak, even if the "face" is the result of advertising
copy and television commercials. This use of brand also says nothing of quality, just
the buyer's exposure to the brand's PR and media hype. For the typical merchant,
branding is a way of taking everything that is good about the company -- positive
shopping experience, professionalism, superior service, product knowledge, whatever
the company decides is important for a customer to believe about the company -- and
wrapping these characteristics into a package that can be evoked by the brand as
signifier.

Introduction to Branding:

The American Marketing Association defines a brand as “A name, term, sign,

symbol or design or a combination of them, intended to identify the goods and services
of one seller or group and to differentiate them to those for competitors”. A brand is
thus a product or service that’s adds a Dimension that differentiates it in some way
from other products or services designed to satisfy the same need. These differences
may be functional, rational, or tangible- relate to product performance of the brand.

Branding has been around for centuries as a means to distinguish the goods of
one producer to those of another. The earliest signs of branding can be traced to Europe
where the medieval guilds required that craftsmen put trademarks on their product to
protect themselves and producer against inferior quality substitutes. Also in fine arts
branding began with artists signing their works. Brands today play a number of
important roles that improve the consumer’s lives and enhance the financial value of
firms.

Brands identify the source or maker of the product and allow consumers-either
individual or organizations- to assign responsibility to a particular manufacturer or
distributor. Consumers may evaluate the identical product differently depending how it
is branded. Consumers lean about the brand with its past experience and the marketing
program. As consumers lives becomes more complicated, time starved the ability of
brand to simplify decision making is invaluable. Brands also perform valuable
functions for the firm. First they simplify the product handling and tracing. Brands help
to organize inventory and accounting records. The brand name can be protected
registered trademarks. The intellectual property rights ensure that the firm can safely
invest in the brand and can reap the benefits over a long period of time.
 Brands can signal a certain level of quality so that satisfied buyers can easily
choose the product again. Brand loyalty provides predictability and security of demand
for the firm and creates barriers to entry that makes it difficult for other firms to enter
the market. This brand loyalty can translate into willingness to pay higher price. In this
sense branding can be seen as powerful means to secure a competitive advantage.
Brands represent enormously valuable pieces of legal property that can influence
consumer’s behavior. Strong brand results in better earnings and profit performance for
firms, which in turn, creates greater value for shareholders.

How do you “BRAND” a product? Although firms provide the impetus to brand
creation through marketing programs and other activities, ultimately a brand is
something that resides in the mind of the consumers. A brand is a perpetual identity that
is rooted in reality but reflects the perceptions and perhaps even the ultimate choice of
the consumers. Branding is endowing products and services with the power of brands.
To brand a product, it is necessary to teach the consumers “who” the product-by giving
a name. Branding involves creating mental structures and helping consumers organize
their knowledge about products and services in a way that clarifies their decision
making and in process provides value to the firm.

Branding can be applied virtually anywhere a consumer has a choice. It is possible to

brand:

• A physical good (Nestle soup, Pantene shampoo or Maruti Swift),

• A service (Kingfisher Airlines, TATA AIG medical insurance),

• A store (Big Bazaar, BATA stores,etc),

• A place (The state of Kerala, Pushkar Mela),

• A person (Shahrukh Khan, Sachin Tendulkar),

• An organization (UNICEF or BCCI),

Brand is the proprietary visual, emotional, rational, and cultural image that you
associate with the company or a product. When you think of Volvo, you think of safety.
When you think of Nike, you think of Michael Jordon or ‘Just Do It’. When you think
of IBM, you think of ‘Big Blue’. The fact that you remember the brand name and have
positive associations with that brand makes your product selection easier and enhances
the value and satisfaction you get from product.

While Brand X cola or even Pepsi-Cola may win blind taste tests over Coca-Cola,
the fact is that more people buy Coke than any other Cola. The fond memories of
childhood and refreshment that people have when they drink Coke is often more
important than a little bit better cola taste. It I this emotional relationship with brands
that make them so powerful.

Purpose of Branding:

The purpose of branding is to create a powerful and lasting emotional

connection with customers and other audiences. A brand is a set of elements or “brand
assets” that in combination create a unique, memorable, unmistakable, and valuable
relationship between an organization and its customers. The brand is carried by a set of
compelling visual, written and vocal tools to represent the business plan and intentions
of an organization.

Branding is the voice and image that represents your business plan to the
outside world. What your company, products and services stand for should all be
captured in your branding strategy, and represented consistently throughout all your
brand assets and in your daily marketing activities

The brand image that carries this emotional connection consists of the many
manageable elements of branding system, including both visual image assets and
language assets. The process of managing the brand to the business plan is important
not only in “big change situation” where the brand redefinition is required, but also in
the management of routine marketing variables and tactics. This does not have to be a
“ground-up” situation where there are wholesale changes to the business. Rather it is
more common that specific changes to the changes to the business plan are incremental
and the work of the brand strategist and designer is to interpret these changes and revise
the branding strategy and resulting brand assets and define their use in the full range of
marketing variables.
Brand Identity:

Brand Identity includes brand names, logos, positioning, brand associations, and
brand personality, brand toons etc. A good brand name gives a good first impression
and evokes positive associations with the brand. A positioning statement tells what
business the company is in, what benefits it provides and why it is better than the
completion? Brand personality adds emotion, culture and myth to brand identity by the
use of a famous spokesperson (Bill Cosby-Jello), a character (Pink Panther), an animal
(the Merrill lynch bull) etc.

Brand associations are the attributes that costumer thinks of when they hear or
see the brand name. McDonalds television are a series of one brand association after
another, starting in yellow arches in the low right corner of the screen and following
with associations of Big Mac, Ronald MacDonald, kids, happy meal, food quality etc.
The first step in creating a brand for your company is branding workshop.

How Do We Determine Our Brand Identity?

Brand has been called the most powerful idea in commercial world, yet few
companies create a brand identity. Do you want your company’s brand identity created
for you by competitors and unhappy customers? Of course not. Our advice to
executives is to research their customers and find the top ranked reasons that the
customers buy their product rather than their competitors. Then, pound that message in
every ad, in every news release, in communications with employees and in every sales
call or media interview. By continuous repetition of messages customer will think of
your product and then buy it.

Tools for Building Brand Identity:

Brand builders use a set of tools to strengthen and project the brand image;
Strong brands typically exhibit an owned word, a slogan, a color, a symbol, and set of
stories.
Owned Word:

A strong brand name should trigger another word, a favorable one. Here is the
list of brands that own a word:

Slogan:

Many companies successfully added a slogan or tagline to their brand name

which is repeated in every ad they use. Here are some well-known brands slogans,
which people on the street may easily recall or recognize:

COMPANY SLOGAN

British Airways “The world’s favorite airline”

Ford “Quality is our number one job”

LIC “Jeevan ke saath bhi jeevan ke baad bhi”

Colors:

It helps for a company or a brand to use a consistent set of color to and in the
brand recognition. Caterpillar paints all its construction equipments yellow. Yellow is
the color of Kodak film. IBM uses blue in its publications, and IBM is called “Big
Blues”.
Symbols and Logos:

Companies would be wise to adapt a symbol or logo to use in their

communications. Many companies hire a well-known spokesperson, hoping that his or
her quality transfer to the brand. Nike uses Michael Jordon who has worldwide
recognition and likableness, to advertise its shoes. Sporting goods manufacturers sign
contracts with top athletes to serve as their symbols, even naming the product after
them.

Cartoons and Animations:

A less expensive approach is to develop a character, animated, to etch the

brand’s image into customer’s mind. The advertising agency Leo Burnett has
successfully created a number of memorable animated characters. Here are some well
known brand cartoons which people may recognize:

Company Cartoon or Animation

ICICI Prudential Chintamani
Amul Butter Utterly Butterly Girl
McDonalds Ronald
All Out mosquito Repellent Louis
Pillsbury Doughboy
7 Up Fido Dido

Objects:

Still another approach is to choose an object to represent a company or brand.

The travelers’ insurance company uses an umbrella, suggesting that buying insurance is
equivalent to having an umbrella available when it rains. The prudential insurance
company features the rock of Gibraltar, suggesting that buying an insurance is
equivalent to “owing a peace of rock “which is of course, solid ad dependable.
Companies have developed many logos or abstracts, which are easily remembered by
people. Even the way the brand name is written makes a brand recognizable and
memorable.
Brand Effectiveness:

With an increase in global competition, branding has become a source of

competitive advantage. In rapidly evolving market for consumer, and industrial
products and services, the source of next generation competency will be branding. In
this briefing we demonstrate how to calculate the brand strength, the price premium
associated with the products categories, and type of customers attracted to the
“Premium Products”. Marketers who match their brand with customers needs will have
a sustainable competitive advantage.

Measuring Brand Effectiveness:

There are many metrics to measure the potential of and actual effectiveness of
brands. The simplest way is to apply the concept of what we call the 4 D’s of Branding;
differentiation, distinctiveness, defendable, digit-able.

• Distinctiveness: your brand should be distinct when compared to your

competitors and to all spoken and visual communications to which your target
audiences will be exposed. The more unique and distinct your communications,
the wider the filed of effective competitive strength it will have. There are
simple means to apply to test the distinctiveness of your brand.

• Differentiation: the brand strategy and brand assets must set you’re offering
apart and clearly articulate the specific positioning intent of your offering.

• Defendable: you will be investing in creating your brand assets and in all cases
your brand must have proprietary strength to keep others from using close
approximations. This applies to your trade names and other proprietary words as
well as to your logos, symbols and other visual assets.

• Digit-able: in most businesses there is strong and growing element of electronic

communications and commerce that dictate all brand assets be leveraged
effectively in tactile and electronics form. This goes for all brand assets.

Much of the brand manager’s work is to build a brand image. But its job doesn’t
stop there. The rand manager needs to make sure that brand experience matches the
brand image. Much can go wrong. A fine brand of canned soup described in a full page
color ad may be found in dented and dusty condition in the bottom shelf of a
supermarket. The ad describing a gracious hotel chain is belied by the behavior of a
surly concierge.

Building brand therefore calls for more than brand image building. It calls for
managing every brand contact that customer might have with brand. Since all the
employees, distributors and dealers can affect brand experience.

Brand and Reputation:

A brand exists in the mind, or not at all. The mind it exists in may be that of a
customer, a potential customer, an interested observer, a disinterested observer... or
almost anybody.

Awareness of a brand may be irrelevant to any purchasing decision that an

individual may make. People are aware of the Mercedes car brand, but cannot envisage
any circumstance under which they would (could!) buy a Mercedes. They are aware of
Marlboro (and scores of other cigarette brands) but as a non-smoker they will never
convert their awareness into purchase. Male with no children are not targeted by
Pampers or Huggies but still are aware of the brands.

People wear many hats. But are or not a potential customer. People may be an
employee, an investor, a citizen, a husband and so on. They hate McDonald’s
hamburgers but might love their stock market record and therefore be a potential
customer for their stock. They will never buy a Boeing 777 but might be impressed by
the aircraft and favor an airline that flies them. They have no idea what an Intel chip is,
but might be persuaded that it is a good thing to have in my PC and therefore buy a
computer from a company that uses them.

Brand Aware argues that there is no difference between "Brand" and

"Reputation". Some conventional wisdoms state that customers buy brands, but that
investors buy reputations. Those potential employees join companies because of their
reputation, that the media and other "stakeholders" judge a company on its reputation in
some way as a distinct concept from its brand. This part argues that such distinctions
are fallacious for all companies, but especially for single brand companies such as a
McDonalds, a Coca-Cola, a Compaq or a Shell. These companies’ reputations are part
and parcel of their brand. Their brands are their reputation.

The Brand:

To any individual a brand (in his mind) is a complex combination of

experiences, beliefs, perceptions and associations that have grown up over time. For
example Coca-Cola is a company brand, a product brand, a service brand and a brand
with a long history. It is a brand which may represent (to any one individual) diversity,
internationality, technical excellence, financial strength etc. etc. It may also mean
insensitivity, environmental pollution, abuse of power and other negative perceptions.

Perceiving the Brand:

An individual builds up his perceptions of a brand via a wide range of communications

channels. They are as follows:

• Experience: The most powerful influence is experiential. This is when the

individual actually has a "Brand experience". The most obvious are:

 He visits a McDonald’s restaurant or a Shell petrol station.

 He buys a Coca-Cola branded product or service.

 He views a Coca-Cola bottler's facility.

 He visits a corporate website.

 He attends an interview at the company.

 He contacts the company office for information.

 He meets an employee of the company.

 He buys a share in the company, etc.

• Advertising: Over time an individual who lives in a country in which the

company/brand is active, or travels to one on business or vacation, will be
exposed to their advertising. This advertising may be in a wide range of media:

 TV commercials for products and services

  Recruitment ads inviting employment applications

 "Corporate" TV commercials promoting the company's "reputation"

 Web based advertising

 An ad for the company’s branded products or services in a wide variety

of print media.

 Billboards on highways

 Radio

 Point of sale etc.

• Media Reports and Stories: Individuals will be exposed to a wide variety of

reports about companies in the media (print and broadcast) where the editorial
content is only partly influence able by the company (in some cases) or not at all
(in most cases). These stories will come from a variety of primary and
secondary sources: -

 Press releases

 Press conferences

 Reporting of "events"

 Investigative journalism

 Stories passed to the media by third parties (Non governmental

organizations etc.)

• Professional/Business Interest: For some individuals to interface

professionally, or from a specific business need, with famous companies (or to
observe them) is part of their job. They will usually procure their information
from a variety of sources and via a variety of channels of communication. These
individuals have a special interest in the companies and they include: -

 Financial analysts and journalists with an interest in share performance

 Existing or potential suppliers of products and services

  Existing or potential industrial/commercial customers

Building the Brand

The art of marketing is largely art of brand building. When something is not a
brand, it will probably be viewed as a commodity. Then price is the thing that counts.
When price is the only thing that counts then the low cost producer wins. But just
having a brand is not enough. What does the brand name mean? What associations,
performances and expectations does it evoke? What degree of preferences does it
create?

Choosing a Brand Name:

A brand name first must be chosen then its various meanings and promises must
be built up through brand identity work. In choosing a brand name, it must be
consistent with the value positioning of the brand. In naming a product or service the
company may face many possibilities: it could choose name of the person (Honda,
Calvin Klein), location (American airlines), quality (Safety stores, Healthy choice), or
an artificial name (Exxon, Kodak).

Some of the Desirable qualities of a Brand Name:

• It should suggest something about the product benefits.

• It should suggest product qualities such action or color

• It should be easy to pronounce, recognize and remember; short names help a lot
to recognize the product to the customers.

• It should be distinctive.

• It should not carry poor meanings in other countries and languages etc.

Building Positive Associations:

The best known brand names carry associations. For example, here is a list of words
that people say they associate with McDonalds:

• Kids
 • Fun

• Happy Meal

• Ronald Mc. Donald

• Quality

• Toys

In trying to build a rich set of positive associations for a brand, the brand builder should
consider five dimensions that can communicate meaning:

• Attributes: A strong brand should trigger in buyers mind certain attributes.

Thus a Mercedes automobile attributes a picture of well-engineered car that is
durable, rugged and expensive. If a car brand does not trigger any attribute, then
it would be a weak brand.

• Benefits: A strong brand should suggest benefits, not just features. Thus
Mercedes triggers the idea of well performing car that is enjoyable to drive and
prestigious to own.

• Company Values: A strong brand should connote values that the company
holds. Thus Mercedes is proud of its engineers and engineering innovations and
is very organized and efficient in its operations. The fact that it is a German
company adds more pictures in the mind of the buyers about the character and
the culture of the brand.

• Personality: A strong brand should exhibit some personality traits. Thus if

Mercedes were a person we would think of someone who is middle age, serious,
well-organized and somewhat authoritarian. If Mercedes were an animal we
might think of lion or its implied personality.

• Users: A strong brand should suggest the type of people who buy the brand.
Thus we would expect Mercedes to draw buyers who are older, affluent and
professional.
In summary, brands when their very name connotes positive attributes, benefits,
company values, personality and users in the buyer’s mind. The brand builder’s job is
to create a brand identity that builds on those dimensions.

Choosing Brand Elements:

Brand elements are those trademarks devices that serve to identify and
differentiate the brand. Most strong brands employ multiple brand elements. Nike has
distinctive “swoosh” logo, the empowering “Just Do It” slogan and the mythological
“Nike” name based on the winged goddess of victory.

Brand element can be chosen to build as much as brand equity as possible. The
test of the brand building ability of these elements is what consumers think or feel
about the product if they only knew about the brand element. A brand element provides
positive contribution to brand equity.

Brand Element Choice Criteria

There are six criteria in choosing brand element. The first three can be
characterized by brand building in terms of how brand equity can be build through
judicious choice of brand element. The latter three are more defensive and are
concerned with how the brand equity contained in the brand element can be leveraged
and preserved in the face of various opportunities and constraints.

• Memorable: How easily is the brand element recalled? How easily recognized?
Is this true at both purchase and consumption? Short brand name like tide, Nike
can help.

• Meaningful: To what extent is brand element credible and suggestive of the

corresponding category? Does it suggest something about a product ingredient
or a type of person who might use the brand?

• Likeability: How aesthetically appealing does consumers find the brand

element? Is it inherently likeable visually, verbally, and in other ways? Concrete
brand names such as Wheel, Sunsilk etc evoke much imagery.
 • Transferable: Can a brand element be used to introduce new products in the
same or different categories? To what extent does the brand element add to
brand equity across geographic boundaries and market segments?

• Adaptable: How adaptable and updatable is the brand element? Betty corker
received 8 makeovers through the years-although she is 75 yrs old, she doesn’t
look a day over 35.

• Protectable: How legally protectable is the brand element? How competitively

protectable? Can it be easily copied? It is important that names that become
synonymous with product categories such as Kleenex, Xerox, Jell-O, etc retain
their trademarks rights and not become generic.

Brand elements can play a number of roles. If consumers do not examine much
information in making their product decisions, brand elements should be easily
recognized and recalled and inherently descriptive and persuasive. Memorable or
meaningful brand elements can reduce the burden on marketing communications to
build awareness and link brand associations. The different associations that arise from
likeability and appeal of the brand elements may also play a critical role in the equity of
brand.

What is Brand Equity?

There is no universally accepted definition of brand equity. The term means

different things for different companies and products. However, there are several
common characteristics of the many definitions that are used today. From the following
examples it is clear that brand equity is multi-dimensional. There are several
stakeholders concerned with brand equity, including the firm, the consumer, the
channel, and some would even argue the financial markets. But ultimately, it is the
consumer that is the most critical component in defining brand equity. Some
researchers in the field of marketing have defined brand equity as follows:
 • Lance Leuthesser, et al (1995) writes that " brand equity represents the value (to
a consumer) of a product, above that which would result for an otherwise
identical product without the brand's name. In other words, brand equity
represents the degree to which a brand's name alone contributes value to the
offering (again, from the perspective of the consumer)."

• The Marketing Science Institute (1988) defines brand equity as, "The set of
associations and behaviors on the part of the brand's customers, channel
members, and parent corporations that permit the brand to earn greater volume
or greater margins than it could without the brand name and that gives the brand
a strong, sustainable, and differentiated advantage over competitors."

Brand Equity can be Defined as Three Distinct Elements:

1) The total value of a brand as a separable asset -- when it is sold or included on a

balance sheet.

2) A measure of the strength of consumers' attachment to a brand.

3) A description of the associations and beliefs the consumer has about the brand.

Of those three concepts, the first can be classified as "brand valuation," the second
"brand loyalty," and the third "brand description." Brand loyalty will be a factor that
affects the overall brand value, and brand description will usually affect or explain
some of the brand loyalty. Because of the importance of each of these elements of
brand equity, they will each be briefly explained.

Brand Equity as Brand Value:

Brand value involves actually placing a dollar or rupee value on a brand name.
The reasons for doing this are usually to set a price when the brand is sold and also to
include the brand as an intangible asset on a balance sheet (a practice which is not used
in some countries). While there are many methods for making this measurement, some
of which will be described shortly, it is important to note that there is a significant
difference between an "objective" valuation created for balance sheet purposes, and the
actual price that a brand may get when sold?
 A brand is likely to have a much greater value to one purchaser than another
depending on the synergy that exists. For acquisitions, the value of a brand to a certain
purchaser is often estimated through scenario planning. This involves determining what
future cash flows the company could achieve if it owned and took advantage of the
brand.

What this means is that there is no such thing as an absolute value for a brand,
and brand value needs to be considered as only one component of the overall equity of
a brand.

Brand Equity as Brand Loyalty:

Loyalty is a core dimension of brand equity and is a way to gauge the strength of a
brand. It represents a barrier to entry, a basis for a price premium, and time to respond
to competitive innovations. The variety of measures used for brand loyalty usually is a
combination of one or more of the following:

• Price/demand measures-focus on a brand's ability to command a higher price or

make consumers less sensitive to price increases than price increases for
competing brands.

• Behavioral measures-focus on consumers' behavior.

• Attitudinal measures-focus on general evaluative measures such as 'liking' or

'disliking.'

• Awareness measures-focus on identifying a brand as being associated with a

product category.

• Brand Loyalty and Equity refer to the notion that some brands are "stronger" or
better than others.

An example of this sort of belief is:

“If the businesses were split up, I would take the brands, trademarks and goodwill, and
you could have all the bricks and mortar - and I would fare better than you.”

The optimism for the concept can be stated on the fact that when one would say
as a predictor of future financial performance, brand equity, if reported, would be
valuable for capital marketers and shareholders. Brand equity has the potential to
become the set of measures of business performance that matter most.

The motivation for brand equity comes from the observation that many
marketing efforts "realize" benefits; such as sales or profit and these are accounted for
in the firm’s profit and loss figures. However, there is the possibility that management
might choose between taking realized benefits and "storing" them future. One of the
most common times this argument is used is when discussing the role of advertising
versus sales promotion. You could spend lots of money on advertising, see no
immediate effects, but you could save your job by saying that you had "built the brand".
At least one advertising agency offers to partner companies in this sort of activity.

So marketing strategies could be putting money into (or out of) the brand equity
bank account. But the question is as always how do we know? That is are we actually
building the brand with all our advertising (or other brand building 4 p’s decisions e.g.,
limited / premium distribution rights, high price, fancy packing, after sales service,
extended warranties).So, hopefully you have got the idea - theories about brand loyalty
and equity are used to represent aspects of brand strength.

This "strength" can take a number of forms, e.g., consumers predominantly

buying your brand, which might be represented by a high share of category
requirements, or high proportion of sole-buyers.

Consumers saying good things about your brand, e.g., having a positive brand
Attitude, it might be the ability to charge a price premium. It might be the ability to not
be substituted when out of stock. Future strength might be in terms of some sort of
long-term competitive advantage or the ability to sustain brand extensions.

One of the things is that as with many concepts in marketing, is that there are
many different definitions and viewpoints on what exactly brand equity is and how to
measure it. So that is a problem. We need to be clear just what people mean when they
talk about brand equity or brand loyalty, or building brands.

Brand Loyalty / Equity Advocates:

 One of the ruses used by proponents of brand equity or loyalty is to claim that
these measures do not capture all the important aspects of brands strength. But this is an
evasion. We want to be able to detect that our efforts are doing something to the brand,
and so we need to know ways that this might show up in.
Brand Equity as Brand Description

Brand description, the final component of brand equity, concerns the actual
attributes of the brand. These attributes or associations are major creators of brand
loyalty. A wide variety of techniques exist for matching consumer associations with
perceptions of a brand. These techniques can be both qualitative and quantitative. They
work by getting the respondent to link each brand with pictures or words. These
attributes then can be measured with multi-dimensional scaling to position the attributes
relative to one another.

Qualitative Measures of Brand Equity:

The Brand Equity Ten are ten sets of measures grouped into five categories, which
attempt to gauge the strength of a brand. The first four categories represent customer
perceptions of the brand along the four dimensions of brand equity- loyalty, perceived
quality, associations and awareness. The fifth includes two sets of market behavior
measures.

Loyalty

Price Premium: A basic indicator of loyalty is the amount a customer will pay
for a product in comparison to other comparable products. A price premium can
be determined by simply asking consumers how much more they would be
willing to pay for the brand.

Customer Satisfaction: A direct measure of customer satisfaction can be applied

to existing customers. The focus can be the last use experience or simply the use
experience from the customer's view.

Perceived Quality and Leadership Measures

Perceived Quality: is one of the key dimensions of brand equity and has been
shown to be associated with price premiums, price elasticities, brand usage and
stock return. It can be calculated by asking consumers to directly compare
similar brands.
 Leadership/Popularity: has three dimensions. First, if enough consumers are
buying into the brand concept it must have merit. Second, leadership often taps
innovation within a product class. Third, leadership taps the dynamics of
consumer acceptance. Namely, people are uneasy swimming against the tide are
a likely to buy a popular product. This can be measured by asking consumers
about the product's leadership position, its popularity and its innovative
qualities.

Associations/ Differentiation Measures

Perceived Value: This dimension simply involves determining whether the

product provides good value for the money and whether there are reasons to buy
this brand over competitive brands.

Brand Personality: This element is based on the brand-as-person perspective.

For some brands, the brand personality can provide links to the brands
emotional and self-expressive benefits.

Organizational Associations: This dimension considers the type of organization

that lies behind the brand.

Awareness Measures

Brand awareness: reflects the salience of the product in the consumer's mind
and involves various levels including recognition, recall, brand dominance, and
brand knowledge and brand opinion.

Market Behavior Measures

Market Share: The performance of a brand as measured by market share often

provides a valid and dynamic reflection of the brand's standing with customers.

Price and Distribution Indices: Market share can prove deceptive when it
increases as a result of reduced prices or promotions. Calculating market price
and distribution coverage can provide or more accurate picture of the product's
true strength. Relative market price can be calculated by dividing the average
price at which the product was sold during the month by the average price at
which all the brands were sold.
Managing Brand Equity:

Consistency is the key to successfully building and managing brand equity.

Having a long-term outlook and projecting a consistent image of your brand to the
customer will maximize the results of building brand equity. It is critical for managers
to realize that brand equity can have positive as well as negative effects on a product or
company. In the end, it is the customer that truly defines what brand equity means.

If management feels it is necessary to change the direction of a brand or change

a product it must be careful not to change too quickly. There are many examples of
companies that have changed a product or brand too much or too quickly. On these
occasions, consumers met changes with adverse reactions. The most famous example is
Coca-Cola. They changed the formula of their flagship product Coke, and consumers
reacted so poorly to the new product that the old formula was reintroduced and the new
formula eventually was discontinued. The consumer through the product experiences
brand equity. The product has certain attributes or characteristics that deliver the equity
to the consumer. If any of these attributes are changed or eliminated, the equity
delivered to the consumer is also changed.

Managing brand equity is a continual process with long-term implications.

Unfortunately, many brand managers are forced to focus on short-term goals such as
market share and profits. Many programs that are implemented to boost short-term
sales or market share may be detrimental to the long-term viability of the brand. For
example, Proctor & Gamble has started to test market a program to move away from
using coupons to a system of every day low prices. This is, in part, because consumers
may become loyal to the coupon or promotion and not to the product itself. Constant
promotional programs erode margins and eventually brand loyalty. Ultimately, brand
equity is damaged.

In 1988, Graham Phillips, Chairman of Ogilvy and Mather Worldwide, said, "I
doubt that many would welcome a commodity marketplace in which one competed
solely on price, promotion and trade deals, all of which can be easily duplicated by
competition. This would lead to ever decreasing profits, decay, and eventual
bankruptcy. About the only aspect of the marketing mix that cannot be duplicated is a
strong brand image." This quote clearly demonstrates the importance of managing
brand equity. In many categories, brand equity is the only point of differentiation
between products.

Many people may think that building and maintaining brand equity is solely the
responsibility of brand managers, but it is actually a cross-functional team effort.
Financial managers are important because they can fully analyze the costs of
maintaining and building brand equity. For example, launching a new brand is
extremely consuming in terms of money and time. It may be more cost effective to
extend a current brand than introduce a new brand. Marketing research is critical for
many obvious reasons. It develops most, if not all, of the research and data that
companies will use for deciding strategic issues. Marketing research can also help
determine how brand equity is actually measured. Once a definition of brand equity is
established, the responsibility of tracking.

The World Strongest Brand Share 10 Attributes:

1. The brand excels at delivering the benefits consumers truly desire.

2. The brand stays relevant.

3. The pricing strategy is based on consumer perceptions of value.

4. The brand is properly positioned.

5. The brand is consistent.

6. The brand portfolio and hierarchy makes sense.

7. The brand makes use of and co-ordinates a full repertoire of marketing

activities to build equity.

8. The brand is given proper, sustained support.

9. The brand’s manager understands what the brand means to customers.

10. The company monitors source of brand equity.

Branding benefits buyers as well as sellers in the following manner:

To Buyer:
 • Help buyers identify the product that they like/dislike.

• Identify marketer

• Helps reduce the time needed for purchase.

• Helps buyers evaluate quality of products especially if unable to judge products

characteristics.

• Helps reduce buyers’ perceived risk of purchase.

• Buyer may derive a psychological reward from owning the brand, i.e., Rolex or
Mercedes.

To Seller:

• Differentiate product offering from competitors

• Helps segment market by creating tailored images, i.e., Contact lenses

• Brand identifies the companies’ products making repeat purchases easier for
customers.

• Reduce price comparisons

• Brand helps firm introduce a new product that carries the name of one or more
of its existing products...half as much as using a new brand, lower co. designs,
advertising and promotional costs. Example, BPL telephones.

• Easier cooperation with intermediaries with well known brands

• Facilitates promotional efforts.

• Helps foster brand loyalty helping to stabilize market share.

• Firms may be able to charge a premium for the brand.

CHAPTER III - INDUSTRY PROFILE
Financial Markets:

Finance is the pre-requisite for modern business and financial institutions play a
vital role in the economic system. It is through financial markets and institutions that
the financial system of an economy works. Financial markets refer to the institutional
arrangements for dealing in financial assets and credit instruments of different types
such as currency, cheques, bank deposits, bills, bonds, equities, etc.

Financial market is a broad term describing any marketplace where buyers and
sellers participate in the trade of assets such as equities, bonds, currencies and
derivatives. They are typically defined by having transparent pricing, basic regulations
on trading, costs and fees and market forces determining the prices of securities that
trade.

Generally, there is no specific place or location to indicate a financial market.

Wherever a financial transaction takes place, it is deemed to have taken place in the
financial market. Hence financial markets are pervasive in nature since financial
transactions are themselves very pervasive throughout the economic system. For
instance, issue of equity shares, granting of loan by term lending institutions, deposit of
money into a bank, purchase of debentures, sale of shares and so on.

In a nutshell, financial markets are the credit markets catering to the various
needs of the individuals, firms and institutions by facilitating buying and selling of
financial assets, claims and services.
Classification of Financial Markets:

Financial markets

Organized markets Unorganized markets

Money Lenders,
Capital Markets Money Markets
Indigenuos Bankers

Industrial Securities
Call Money Market
Market

Commercial Bill
Primary Market
Market

Secondary market Treasury Bill Market

Government
Securities Market

Long-term loan
market
Capital Market:

The capital market is a market for financial assets which have a long or
indefinite maturity. Generally, it deals with long term securities which have a period of
above one year. In the widest sense, it consists of a series of channels through which
the savings of the community are made available for industrial and commercial
enterprises and public authorities. As a whole, capital market facilitates raising of
capital.

The major functions performed by a capital market are:

1. Mobilization of financial resources on a nation-wide scale.

2. Securing the foreign capital and know-how to fill up deficit in the required
resources for economic growth at a faster rate.

3. Effective allocation of the mobilized financial resources, by directing the same

to projects yielding highest yield or to the projects needed to promote balanced
economic development.

Capital market consists of primary market and secondary market.

Primary market:

Primary market is a market for new issues or new financial claims. Hence it is
also called as New Issue Market. It basically deals with those securities which are
issued to the public for the first time. The market, therefore, makes available a new
block of securities for public subscription. In other words, it deals with raising of fresh
capital by companies either for cash or for consideration other than cash. The best
example could be Initial Public Offering (IPO) where a firm offers shares to the public
for the first time.

Secondary market:

Secondary market is a market where existing securities are traded. In other

words, securities which have already passed through new issue market are traded in this
market. Generally, such securities are quoted in the stock exchange and it provides a
continuous and regular market for buying and selling of securities. This market consists
of all stock exchanges recognized by the government of India.

Money Market:

Money markets are the markets for short-term, highly liquid debt securities.
Money market securities are generally very safe investments which return relatively
low interest rate that is most appropriate for temporary cash storage or short term time
needs. It consists of a number of sub-markets which collectively constitute the money
market namely call money market, commercial bills market, acceptance market, and
Treasury bill market.

Derivatives Market:

The derivatives market is the financial market for derivatives, financial

instruments like futures contracts or options, which are derived from other forms of
assets. A derivative is a security whose price is dependent upon or derived from one or
more underlying assets. The derivative itself is merely a contract between two or more
parties. Its value is determined by fluctuations in the underlying asset. The most
common underlying assets include stocks, bonds, commodities, currencies, interest
rates and market indexes. The important financial derivatives are the following:

• Forwards: Forwards are the oldest of all the derivatives. A forward contract
refers to an agreement between two parties to exchange an agreed quantity of an
asset for cash at a certain date in future at a predetermined price specified in that
agreement. The promised asset may be currency, commodity, instrument etc.

• Futures: Future contract is very similar to a forward contract in all respects

excepting the fact that it is completely a standardized one. It is nothing but a
standardized forward contract which is legally enforceable and always traded on
an organized exchange.

• Options: A financial derivative that represents a contract sold by one party

(option writer) to another party (option holder). The contract offers the buyer
the right, but not the obligation, to buy (call) or sell (put) a security or other
financial asset at an agreed-upon price (the strike price) during a certain period
 of time or on a specific date (exercise date). Call options give the option to buy
at certain price, so the buyer would want the stock to go up. Put options give the
option to sell at a certain price, so the buyer would want the stock to go down.

• Swaps: It is yet another exciting trading instrument. Infact, it is the combination

of forwards by two counterparties. It is arranged to reap the benefits arising
from the fluctuations in the market – either currency market or interest rate
market or any other market for that matter.

Foreign Exchange Market:

It is a market in which participants are able to buy, sell, exchange and speculate
on currencies. Foreign exchange markets are made up of banks, commercial companies,
central banks, investment management firms, hedge funds, and retail forex brokers and
investors. The Forex market is considered to be the largest financial market in the
world. It is a worldwide decentralized over-the-counter financial market for the trading
of currencies. Because the currency markets are large and liquid, they are believed to be
the most efficient financial markets. It is important to realize that the foreign exchange
market is not a single exchange, but is constructed of a global network of computers
that connects participants from all parts of the world.

Commodities Market:

It is a physical or virtual marketplace for buying, selling and trading raw or

primary products. For investors' purposes there are currently about 50 major
commodity markets worldwide that facilitate investment trade in nearly 100 primary
commodities. Commodities are split into two types: hard and soft commodities. Hard
commodities are typically natural resources that must be mined or extracted (gold,
rubber, oil, etc.), whereas soft commodities are agricultural products or livestock (corn,
wheat, coffee, sugar, soybeans, pork, etc.)
Indian Financial Markets:

India Financial market is one of the oldest in the world and is considered to be
the fastest growing and best among all the markets of the emerging economies.

The history of Indian capital markets dates back 200 years toward the end of the
18th century when India was under the rule of the East India Company. The
development of the capital market in India concentrated around Mumbai where no less
than 200 to 250 securities brokers were active during the second half of the 19th
century.

The financial market in India today is more developed than many other sectors
because it was organized long before with the securities exchanges of Mumbai,
Ahmadabad and Kolkata were established as early as the 19th century.

By the early 1960s the total number of securities exchanges in India rose to
eight, including Mumbai, Ahmadabad and Kolkata apart from Madras, Kanpur, Delhi,
Bangalore and Pune. Today there are 21 regional securities exchanges in India in
addition to the centralized NSE (National Stock Exchange) and OTCEI (Over the
Counter Exchange of India).

However the stock markets in India remained stagnant due to stringent controls
on the market economy that allowed only a handful of monopolies to dominate their
respective sectors. The corporate sector wasn't allowed into many industry segments,
which were dominated by the state controlled public sector resulting in stagnation of
the economy right up to the early 1990s. Thereafter when the Indian economy began
liberalizing and the controls began to be dismantled or eased out; the securities markets
witnessed a flurry of IPO’s that were launched. This resulted in many new companies
across different industry segments to come up with newer products and services.

A remarkable feature of the growth of the Indian economy in recent years has
been the role played by its securities markets in assisting and fuelling that growth with
money rose within the economy. This was in marked contrast to the initial phase of
growth in many of the fast growing economies of East Asia that witnessed huge doses
of FDI (Foreign Direct Investment) spurring growth in their initial days of market
decontrol. During this phase in India much of the organized sector has been affected by
high growth as the financial markets played an all-inclusive role in sustaining financial
resource mobilization. Many PSUs (Public Sector Undertakings) that decided to offload
part of their equity were also helped by the well-organized securities market in India.

The launch of the NSE (National Stock Exchange) and the OTCEI (Over the
Counter Exchange of India) during the mid 1990s by the government of India was
meant to usher in an easier and more transparent form of trading in securities. The NSE
was conceived as the market for trading in the securities of companies from the large-
scale sector and the OTCEI for those from the small-scale sector. While the NSE has
not just done well to grow and evolve into the virtual backbone of capital markets in
India the OTCEI struggled and is yet to show any sign of growth and development. The
integration of IT into the capital market infrastructure has been particularly smooth in
India due to the country’s world class IT industry. This has pushed up the operational
efficiency of the Indian stock market to global standards and as a result the country has
been able to capitalize on its high growth and attract foreign capital like never before.

The regulating authority for capital markets in India is the SEBI (Securities and
Exchange Board of India). SEBI came into prominence in the 1990s after the capital
markets experienced some turbulence. It had to take drastic measures to plug many
loopholes that were exploited by certain market forces to advance their vested interests.
After this initial phase of struggle SEBI has grown in strength as the regulator of
India’s capital markets and as one of the country’s most important institutions.
Financial Market Regulations:

Regulations are an absolute necessity in the face of the growing importance of

capital markets throughout the world. The development of a market economy is
dependent on the development of the capital market. The regulation of a capital market
involves the regulation of securities; these rules enable the capital market to function
more efficiently and impartially.

A well regulated market has the potential to encourage additional investors to

partake, and contribute in, furthering the development of the economy. The chief
capital market regulatory authority is Securities and Exchange Board of India (SEBI).

SEBI is the regulator for the securities market in India. It is the apex body to
develop and regulate the stock market in India It was formed officially by the
Government of India in 1992 with SEBI Act 1992 being passed by the Indian
Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business
district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern, Southern and
Western regional offices in New Delhi, Kolkata, Chennai and Ahmedabad. In place of
Government Control, a statutory and autonomous regulatory board with defined
responsibilities, to cover both development & regulation of the market, and independent
powers has been set up.

The basic objectives of the Board were identified as:

• To protect the interests of investors in securities;

• To promote the development of Securities Market;

• To regulate the securities market and

• For matters connected therewith or incidental thereto.

Since its inception SEBI has been working targeting the securities and is attending to
the fulfillment of its objectives with commendable zeal and dexterity. The
improvements in the securities markets like capitalization requirements, margining,
establishment of clearing corporations etc. reduced the risk of credit and also reduced
the market.
 SEBI has introduced the comprehensive regulatory measures, prescribed
registration norms, the eligibility criteria, the code of obligations and the code of
conduct for different intermediaries like, bankers to issue, merchant bankers, brokers
and sub-brokers, registrars, portfolio managers, credit rating agencies, underwriters and
others. It has framed bye-laws, risk identification and risk management systems for
Clearing houses of stock exchanges, surveillance system etc. which has made dealing in
securities both safe and transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P
CNX Nifty & Sensex) in 2000. A market Index is a convenient and effective product
because of the following reasons:

• It acts as a barometer for market behavior;

• It is used to benchmark portfolio performance;

• It is used in derivative instruments like index futures and index options;

• It can be used for passive fund management as in case of Index Funds.

Two broad approaches of SEBI is to integrate the securities market at the

national level, and also to diversify the trading products, so that there is an increase in
number of traders including banks, financial institutions, insurance companies, mutual
funds, primary dealers etc. to transact through the Exchanges. In this context the
introduction of derivatives trading through Indian Stock Exchanges permitted by SEBI
in 2000 AD is a real landmark.

SEBI has enjoyed success as a regulator by pushing systemic reforms

aggressively and successively (e.g. the quick movement towards making the markets
electronic and paperless rolling settlement on T+2 bases). SEBI has been active in
setting up the regulations as required under law.
Stock Exchanges in India:

Stock Exchanges are an organized marketplace, either corporation or mutual

organization, where members of the organization gather to trade company stocks or
other securities. The members may act either as agents for their customers, or as
principals for their own accounts.

As per the Securities Contracts Regulation Act, 1956 a stock exchange is an

association, organization or body of individuals whether incorporated or not,
established for the purpose of assisting, regulating and controlling business in buying,
selling and dealing in securities.

Stock exchanges facilitate for the issue and redemption of securities and other financial
instruments including the payment of income and dividends. The record keeping is
central but trade is linked to such physical place because modern markets are
computerized. The trade on an exchange is only by members and stock broker do have
a seat on the exchange.

List of Stock Exchanges in India

Bombay Stock Exchange

National Stock Exchange 10. Jaipur

11. Ludhiana
OTC Exchange of India
12. Madhya Pradesh
Regional Stock Exchanges
13. Madras
1. Ahmedabad
14. Magadh
2. Bangalore
15. Mangalore
3. Bhubaneswar
16. Meerut
4. Calcutta
17. Pune
5. Cochin
18. Saurashtra Kutch
6. Coimbatore
19. Uttar Pradesh
7. Delhi
20. Vadodara
8. Guwahati
9. Hyderabad
 Bombay Stock Exchange (BSE)

A very common name for all traders in the stock market, BSE, stands for
Bombay Stock Exchange. It is the oldest market not only in the country, but also in
Asia. In the early days, BSE was known as "The Native Share & Stock Brokers
Association." It was established in the year 1875 and became the first stock exchange
in the country to be recognized by the government. In 1956, BSE obtained a
permanent recognition from the Government of India under the Securities Contracts
(Regulation) Act, 1956.

In the past and even now, it plays a pivotal role in the development of the
country's capital market. This is recognized worldwide and its index, SENSEX, is
also tracked worldwide. Earlier it was an Association of Persons (AOP), but now it is
a demutualised and corporatised entity incorporated under the provisions of the
Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization)
Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).

BSE Vision

The vision of the Bombay Stock Exchange is to "Emerge as the premier

Indian stock exchange by establishing global benchmarks."

BSE Management

Bombay Stock Exchange is managed professionally by Board of Directors. It

comprises of eminent professionals, representatives of Trading Members and the
Managing Director. The Board is an inclusive one and is shaped to benefit from the
market intermediaries participation.

The Board exercises complete control and formulates larger policy issues. The
day-to-day operations of BSE are managed by the Managing Director and its school
of professional as a management team.
BSE Network

The Exchange reaches physically to 417 cities and towns in the country. The
framework of it has been designed to safeguard market integrity and to operate with
transparency. It provides an efficient market for the trading in equity, debt
instruments and derivatives. Its online trading system, popularly known as BOLT, is a
proprietary system and it is BS 7799-2-2002 certified. The BOLT network was
expanded, nationwide, in 1997. The surveillance and clearing & settlement functions
of the Exchange are ISO 9001:2000 certified.

BSE Facts

BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is
the benchmark equity index that reflects the robustness of the economy and finance. It
was the –

• First in India to introduce Equity Derivatives

• First in India to launch a Free Float Index

• First in India to launch US$ version of BSE Sensex

• First in India to launch Exchange Enabled Internet Trading Platform

• First in India to obtain ISO certification for Surveillance, Clearing &

Settlement

• 'BSE On-Line Trading System’ (BOLT) has been awarded the globally
recognized the Information Security Management System standard
BS7799-2:2002.

• First to have an exclusive facility for financial training

• Moved from Open Outcry to Electronic Trading within just 50 days

BSE with its long history of capital market development is fully geared to continue its
contributions to further the growth of the securities markets of the country, thus
helping India increases its sphere of influence in international financial markets.
 National Stock Exchange of India Limited (NSE)

The National Stock Exchange of India Limited (NSE) has genesis in

the report of the High Powered Study Group on Establishment of New Stock
Exchanges, which recommended promotion of a National Stock Exchange by
financial institutions (FI’s) to provide access to investors from all across the country
on an equal footing. Based on the recommendations, NSE was promoted by leading
Financial Institutions at the behest of the Government of India and was incorporated
in November 1992 as a tax-paying company unlike other stock Exchange in the
country.

On its recognition as a stock exchange under the Securities Contracts

(Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale
Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment
commenced operations in November 1994 and operations in Derivatives segment
commenced in June 2000.

NSE Group of Companies:

National Securities Clearing Corporation Ltd. (NSCCL)

It is a wholly owned subsidiary, which was incorporated in August 1995 and

commenced clearing operations in April 1996. It was formed to build confidence in
clearing and settlement of securities, to promote and maintain the short and consistent
settlement cycles, to provide a counter-party risk guarantee and to operate a tight risk
containment system.

NSE.IT Ltd.

It is also a wholly owned subsidiary of NSE and is its IT arm. This arm of the
NSE is uniquely positioned to provide products, services and solutions for the
securities industry. NSE.IT primarily focuses on in the area of trading, broker front-
end and back-office, clearing and settlement, web-based, insurance, etc. Along with
this, it also provides consultancy and implementation services in Data Warehousing,
Business Continuity Plans, Site Maintenance and Backups, Stratus Mainframe
Facility Management, Real Time Market Analysis & Financial News.

India Index Services & Products Ltd. (IISL)

It is a joint venture between NSE and CRISIL Ltd. to provide a variety of

indices and index related services and products for the Indian Capital markets. It was
set up in May 1998. IISL has a consulting and licensing agreement with the Standard
and Poor's (S&P), world's leading provider of equity indices, for co-branding equity
indices.

National Securities Depository Ltd. (NSDL)

NSE joined hands with IDBI and UTI to promote dematerialization of

securities. This step was taken to solve problems related to trading in physical
securities. It commenced operations in November 1996.

NSE Facts

• It uses satellite communication technology to energize participation from

around 400 cities in India.

• NSE can handle up to 1 million trades per day.

• It is one of the largest interactive VSAT based stock exchanges in the world.

• The NSE- network is the largest private wide area network in India and the
first extended C- Band VSAT network in the world.

• Presently more than 9000 users are trading on the real time-online NSE
application.

Today, NSE is one of the largest exchanges in the world and still forging ahead. At
NSE, we are constantly working towards creating a more transparent, vibrant and
innovative capital market.
 Over the Counter Exchange of India (OTCEI)

OTCEI was incorporated in 1990 as a section 25 company under the

companies Act 1956 and is recognized as a stock exchange under section 4 of the
securities Contracts Regulation Act, 1956. The exchange was set up to aid
enterprising promotes in raising finance for new projects in a cost effective manner
and to provide investors with a transparent and efficient mode of trading Modeled
along the lines of the NASDAQ market of USA, OTCEI introduced many novel
concepts to the Indian capital markets such as screen-based nationwide trading,
sponsorship of companies, market making and scrip less trading. As a measure of
success of these efforts, the Exchange today has 115 listings and has assisted in
providing capital for enterprises that have gone on to build successful brands for
themselves like VIP Advanta, Sonora Tiles & Brilliant mineral water, etc.

Need for OTCEI:

Studies by NASSCOM, software technology parks of India, the venture

capitals funds and the government’s IT tasks Force, as well as rising interest in IT,
Pharmaceutical, Biotechnology and Media shares have repeatedly emphasized the
need for a national stock market for innovation and high growth companies.

Innovative companies are critical to developing economics like India, which is

undergoing a major technological revolution. With their abilities to generate
employment opportunities and contribute to the economy, it is essential that these
companies not only expand existing operations but also set up new units. The key
issue for these companies is raising timely, cost effective and long term capital to
sustain their operations and enhance growth. Such companies, particularly those that
have been in operation for a short time, are unable to raise funds through the
traditional financing methods, because they have not yet been evaluated by the
financial world.
CHAPTER IV - COMPANY PROFILE
 INDIA INFOLINE LIMITED (IIFL)

India Infoline (IIFL) is a one-stop financial services shop, most respected for
quality of its information, personalized service and cutting-edge technology.

Vision

Our vision is to be the most respected company in the financial services space.

India Infoline Group

The India Infoline group, comprising the holding company, India Infoline
Limited and its wholly-owned subsidiaries, include 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 over 2100 business locations
(branches and sub-brokers) spread across more than 450 cities and towns. The group
caters to approximately a million customers.

Founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an

independent business research and information provider, the company gradually
evolved into a one-stop financial services solutions provider.

India Infoline received registration for a housing finance company from the
National Housing Bank and received the ‘Fastest growing Equity Broking House -
Large firms’ in India by Dun & Bradstreet in 2009. It also received the Insurance
broking license from IRDA; received the venture capital license; received in principle
approval to sponsor a mutual fund; received ‘Best broker- India’ award from Finance
Asia; ‘Most Improved Brokerage- India’ award from Asia money.
Company Structure

India Infoline Limited is listed on both the leading stock exchanges in India,
viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and
is also a member of both the exchanges. It is engaged in the businesses of Equities
broking, Wealth Advisory Services and Portfolio Management Services. It offers
broking services in the Cash and Derivatives segments of the NSE as well as the Cash
segment of the BSE. It is registered with NSDL as well as CDSL as a depository
participant, providing a one-stop solution for clients trading in the equities market. It
has recently launched its Investment banking and Institutional Broking business.

A SEBI authorized Portfolio Manager; it offers Portfolio Management

Services to clients. These services are offered to clients as different schemes, which
are based on differing investment strategies made to reflect the varied risk-return
preferences of clients.
India Infoline Media and Research Services Limited

The services represent a strong support that drives the broking, commodities,
mutual fund and portfolio management services businesses. It undertakes equities
research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a
must read for investors in Asia'. India Infoline's research is available not just over the
internet but also on international wire services like Bloomberg (Code: IILL),
Thomson First Call and Internet Securities where India Infoline is amongst the most
read Indian brokers.

India Infoline Commodities Limited

India Infoline Commodities Pvt Limited is engaged in the business of

commodities broking. Their experience in securities broking empowered them with
the requisite skills and technologies to allow them to offer commodities broking as a
contra-cyclical alternative to equities broking. It enjoys memberships with the MCX
and NCDEX, two leading Indian commodities exchanges, and recently acquired
membership of DGCX. It has a multi-channel delivery model, making it among the
select few to offer online as well as offline trading facilities.

India Infoline Marketing & Services

India Infoline Marketing and Services Limited is the holding company of India
Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited.

• India Infoline Insurance Services Limited is a registered Corporate Agent with

the Insurance Regulatory and Development Authority (IRDA). It is the largest
Corporate Agent for ICICI Prudential Life Insurance Co Limited, which is
India's largest private Life Insurance Company. India Infoline was the first
corporate agent to get licensed by IRDA in early 2001.

• India Infoline Insurance Brokers Limited India Infoline Insurance Brokers

Limited is a newly formed subsidiary which will carry out the business of
Insurance broking.
India Infoline Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and

financing activities under one subsidiary. Recently, Orient Global, a Singapore-based
investment institution invested USD 76.7 million for a 22.5% stake in India Infoline
Investment Services. This will help focused expansion and capital raising in the said
subsidiaries for various lending businesses like loans against securities, SME
financing, distribution of retail loan products, consumer finance business and housing
finance business. India Infoline Investment Services Private Limited consists of the
following step-down subsidiaries.

• India Infoline Distribution Company Limited (distribution of retail loan

products)

• Moneyline Credit Limited (consumer finance)

• India Infoline Housing Finance Limited (housing finance)

IIFL (Asia) Private Limited

IIFL (Asia) Private Limited is wholly owned subsidiary which has been
incorporated in Singapore to pursue financial sector activities in other Asian markets.
Further to obtaining the necessary regulatory approvals, the company has been
initially capitalized at 1 million Singapore dollars.
IIFL Management

• The Management Team

Mr. Nirmal Jain, Chairman & Managing Director

Nirmal Jain, MBA (IIM, Ahmadabad) and a Chartered and Cost Accountant, founded
India’s leading financial services company India Infoline Ltd. in 1995,
providing globally acclaimed financial services in equities and
commodities broking, life insurance and mutual funds distribution,
among others.

Mr. R Venkataraman, Executive Director

R Venkataraman, co-promoter and Executive Director of India

Infoline Ltd., is a B. Tech (Electronics and Electrical Communications
Engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined
the India Infoline board in July 1999.

• The Board Of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline
Ltd. comprises:

Mr. Nilesh Vikamsey, Independent Director

Mr. Vikamsey, Board member since February 2005 - a practicing Chartered

Accountant and partner (Khimji Kunverji & Co., Chartered
Accountants), a member firm of HLB International, headed the audit
department till 1990 and thereafter also handles financial services,
consultancy, investigations, mergers and acquisitions, valuations etc
Mr Sat Pal Khattar, Non Executive Director

Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council of
Minority Rights member, Chairman of the Board of Trustee of
Singapore Business Federation, is also a life trustee of SINDA, a non
profit body, helping the under-privileged Indians in Singapore. He
joined the India Infoline board in April 2001.

Mr Kranti Sinha, Independent Director

Mr. Kranti Sinha — Board member since January 2005 — completed

his masters from the Agra University and started his career as a Class I
officer with Life Insurance Corporation of India.

Mr Arun K. Purvar, Independent Director

Mr. A.K. Purvar – Board member since March 2008 – completed his
Masters degree in commerce from Allahabad University in 1966 and a
diploma in Business Administration in 1967.
IIFL Products & Services:

1. Equities

India Infoline provided the prospect of researched investing to its clients,

which was hitherto restricted only to the institutions. Research for the retail investor
did not exist prior to India Infoline. India Infoline leveraged technology to bring the
convenience of trading to the investor’s location of preference (residence or office)
through computerized access. India Infoline made it possible for clients to view
transaction costs and ledger updates in real time. The Company is among the few
financial intermediaries in India to offer a complement of online and offline broking.
The Companies network of branches also allows customers to place orders on phone
or visit our branches for trading.

2. Commodities

India Infoline’s extension into commodities trading reconciles its strategic

intent to emerge as a one stop solutions financial intermediary. Its experience in
securities broking has empowered it with requisite skills and technologies. The
Companies commodities business provides a contra-cyclical alternative to equities
broking. The Company was among the first to offer the facility of commodities
trading in India’s young commodities market (the MCX commenced operations in
2003). Average monthly turnover on the commodity exchanges increased from Rs
0.34 bn to Rs 20.02 bn.

3. Insurance

An entry into this segment helped complete the client's product basket;
concurrently, it graduated the Company into a one stop retail financial solutions
provider. To ensure maximum reach to customers across India, it has employed a
multi pronged approach and reaches out to customers via our Network, Direct and
Affiliate channels. India Infoline was the first corporate in India to get the agency
license in early 2001.
4. Invest Online

India Infoline has made investing in Mutual funds and primary market so
effortless. Only registration is needed. No paperwork no queues and No registration
charges. India Infoline offers a host of mutual fund choices under one roof, backed by
in-depth research and advice from research house and tools configured as investor
friendly.

5. Wealth Management

The key to achieving a successful Investment Portfolio is to have a carefully

planned financial strategy based on a thorough understanding of the client's
investment needs and risk appetite. The IIFL Private Wealth Management Team of
financial experts will recommend an appropriate financial strategy to effectively meet
customer’s investment requirements.

6. Asset Management

India Infoline is a leading pan-India mutual fund distribution house associated with
leading asset management companies. It operates primarily in the retail segment
leveraging its existing distribution network to reach prospective clients. It has
received the in-principle approval to set up a mutual fund.

7. Portfolio Management

IIFL Portfolio Management Service is a product wherein an equity investment

portfolio is created to suit the investment objectives of a client. India Infoline
invests the client’s resources into stocks from different sectors, depending on
client’s risk-return profile. This service is particularly advisable for investors who
cannot afford to give time or don't have that expertise for day-to-day
management of their equity portfolio.
 CHAPTER V

DATA ANALYSIS & INTERPRETATIONS

1. Have you heard about online trading services of IIFL?

Table 1: IIFL Ltd., Awareness Of Online Trading Services

S. No. Option No. of Respondents Percentage (%)

1 Yes 38 76%
2 No 12 24%
Total 50 100%
Source: Primary Data

Figure 1: IIFL Ltd., Awareness Of Online Trading Services

IIFL Ltd., Awareness Of Online Trading Services

Yes
76%

No
24%

Source: Primary Data

Interpretation

The above graph illustrates the awareness level of online trading services of IIFL. 38
people out of 50 responded that they had heard about the services and the rest 12 people
had not heard about the product. Henceforth 76% of people had heard about the
product/service, which means that the online trading service of IIFL is a popular product
among the people.
2. From which mode of media you heard about the online trading services of
IIFL?

Table 2: Media Mode, Online Trading Services Of IIFL

S. No. Mode No. of Respondents Percentage (%)

1 Television 10 20%
2 Hoardings 15 30%
3 Newspaper & Magazines 8 16%
4 Friends & Relatives 10 20%
5 Other 7 14%
Total 50 100%
Source: Primary Data

Figure 2: Media Mode, Online Trading Services Of IIFL

Customers Mode of Media

16 15
No. of Respondents

12
10
8
8
5 5
4

0
Television Hoardings Newspaper & Friends & Other
Magazines Relatives

Source: Primary Data

Interpretation

Out of the total 50 sample chosen, the respondents were asked about where they had heard
about the services of IIFL. 10 out of 50 that is 20% people responded that they came to
know about the product through television; 30% people said they came to know about the
services through hoardings; 16% of the respondents said through newspapers and
magazines; and 20% of the people through friends & relatives and the rest 14% through
other sources. So it is concluded that majority of people came to know about the services
of IIFL through hoardings and television media.
3. How often you have heard about the services of IIFL?

Table 3: Listening Frequency Of IIFL Services

S.No. Option No. of Respondents Percentage (%)

1 Many Times 10 20%
2 Often 12 24%
3 Some Times 16 32%
4 No Idea 12 24%
Total 50 100%
Source: Primary Data

Figure 3: Listening Frequency Of IIFL Services

Listening Frequency Of IIFL Services

18
16

12 12
No. of Respondents

12
10

0
Many Times Often Some Times No Idea

Source: Primary Data

Interpretation

The above graph depicts that 10 of the total 50 respondents have heard about the services
of IIFL many times. 24% of the respondents i.e. 12 out of 50 people said they have often
heard about the services, while 16 respondents said that that they have heard or seen the
services of IIFL sometimes. Additionally, 12 out of 50 people, i.e. 12%, responded that
they have never heard or seen the services of IIFL. So, it can be concluded that IIFL have
to increase its promotional campaign to become a market leader.
4. Are you maintaining a demat account with IIFL?

Table 4: Demat Account Holding With IIFL

S.No. Option No. of Respondents Percentage (%)

1 Yes 20 40%
2 No 30 60%
Total 50 100%
Source: Primary Data

Figure 4: Demat Account Holding With IIFL

Demat Account Holding With IIFL

Yes
40%

No
60%

Source: Primary Data

Interpretation

The above graph indicates that 60% of the respondents are not holding a demat account
with IIFL Ltd., and only 40% of the respondents are holding a demat account with IIFL. It
is suggested that IIFL need to take precautionary measures for imporving its brand
awareness among customers.
5. Did you like the services of IIFL?

Table 5: Investor Satisfaction Towards The Services Of IIFL

S.No. Option No. of Respondents Percentage (%)

1 Yes 18 36%
2 No 2 4%
3 Not Related 30 60%
Total 50 100%
Source: Primary Data

Figure 5: Investor Satisfaction Towards The Services Of IIFL

Investor Satisfaction Towards The Services Of IIFL

Yes
36%

Not Related
60%

No
4%

Source: Primary Data

Interpretation

The above graph indicates that 36of the respondents voted in favor of the services
provided by IIFL as good. Only 4% of the respondents were not satisfied for the demat
services provided by the comapny.
Do you own a demat account with other broking firms apart IIFL?

Table 6: Holding Of Demat Account Other Than IIFL

S.No. Option No. of Respondents Percentage (%)

1 Yes 24 48%
2 No 26 52%
Total 50 100%
Source: Primary Data

Figure 6: Holding Of Demat Account Other Than IIFL

Holding Of Demat Account Other Than IIFL

Yes
48%

No
52%

Source: Primary Data

Interpretation

The above graph illustrates that majority of the people (52%) are not holding a demat
account with other borking firms. 48% of the respondents are holding a demat account
other than IIFL.
6. Do you wish to maintain an account with IIFL?

Table 7: Customers Perception Towards Maintaining An Account With IIFL

S.No. Option No. of Respondents Percentage (%)

1 Yes 17 34%
2 No 13 26%
3 Not Decided 20 40%
Total 50 100%
Source: Primary Data

Figure 7: Customers Perception Towards Maintaining An Account With IIFL

Customers Perception Towards Maintaining An Account With IIFL

24
20

18 17
No. of Respondents

13
12

0
Yes No Not Decided

Source: Primary Data

Interpretation

The above graph indicates that 34% of the respondents are willing to maintain an account
with IIFL. Only 13 respondents were not showing keen interest in maintaining a demat
account in IIFL, while 40% of the people responded that they have not yet decided.
7. If no, which broking firm you are looking to maintain an account?

Table 8: Preferred Broking Firm By Customers

S.No. Company Name No. of Respondents Percentage (%)

1 Sharekhan 14 28%
2 Indiabulls 10 20%
3 Kotak Securities 6 12%
Motilal Oswal
4 Securities 4 8%
5 Not Decided 16 32%
Total 50 100%
Source: Primary Data

Figure 8: Preferred Broking Firm By Customers

Preferred Broking FirmBy Customers

20
No. of Respondents

16
16 14

12 10

8 6
4
4

0
Sharekhan Indiabulls Kotak Motilal Oswal Not Decided
Securities Securities
Broking Firm

Source: Primary Data

Interpretation

The above graph indicates that 28% of the respondents are interested in managing their
demat account from Sharekhan. 20%, representing 10 people, preferred Indiabulls as their
choice of maintaing demat account, while 32% of the respondents have not yet decided.
8. Why do you want to maintain a demat account with IIFL?

Table 9: Reasons For Maintaining A Demat Account With IIFL

S.No. Attribute No. of Respondents Percentage (%)

1 Less Brokerage 15 30%
2 High Speed Access 5 10%
3 User Friendly Website 4 8%
4 Others 6 12%
5 No Idea 20 40%
Total 50 100%
Source: Primary Data

Figure 9: Reasons For Maintaining A Demat Account With IIFL

Reasons For Maintaining A Demat Account With IIFL

Less Brokerage
30%

No Idea High Speed

40% User Friendly Access
Others Website 10%
12% 8%

Source: Primary Data

Interpretation

The above graph illustrates 30% of the respondents said that less brokerage charges is the
main attribute which enforces the customers to maintain an account with IIFL. 10%
responded that they were driven by high speed access, 8% mentioned that they were
driven by user friendly site. 40% of the respondents said that they have not enough idea on
the online trading services of IIFL.
9. Can you recall any advertising of IIFL online trading?

Table 10: Customers Remembrance Of IIFL Online Trading Advertisement

S.No. Option No. of Respondents Percentage (%)

1 Yes 25 50%
2 No 10 20%
3 Not Sure 15 30%
Total 50 100%
Source: Primary Data

Figure 10: Customers Remembrance Of IIFL Online Trading Advertisement

Customers Remembrance Of IIFL Online Trading Advertisement

Not Sure
30%

Yes
50%

No
20%

Source: Primary Data

Interpretation

The above graph indicates that 25 people i.e. 50% of the total respondents said that they
can recall the advertising of IIFL online trading services, while 10 people said that they
could not recall the advertising. So, it can be concldued that the IIFL advertisement had
been effective and stayed in the memory of most of the people.
10. Would you like to recommend IIFL online trading services to others?

Table 11: Recommendation Of Online Trading Services To Others

S.No. Option No. of Respondents Percentage (%)

1 Yes 20 40%
2 No 15 30%
3 Not Sure 15 30%
Total 50 100%
Source: Primary Data

Figure 11: Recommendation Of Online Trading Services To Others

Recommendation Of Online Trading Services To Others

Not Sure
30%
Yes
40%

No
30%

Source: Primary Data

Interpretation

The above graph indicates that 40% of customers showed keen interest in recommending
the online trading services of IIFL, while 30%, representing 15 people, showed dis-
comfort for sharing their views and thoughts on IIFL’s services.
 CHAPTER VI

FINDINGS, SUGGESTIONS & CONCLUSION

FINDINGS

The following details can be inferred after analysis with a simple size of 50 which
included customers, by questionnaire method to find out the brand awareness towards
online trading services with reference to IIFL Ltd.

 The awareness level of IIFL online trading services in an around Hyderabad is

quite good.

 The promotional strategy of IIFL is effective in the form of electronic media

and mass media.

 Most of the respondents are aware of advertising campaign that are being
conducted by IIFL.

 Brand awareness has a real and visible impact in the buying behaviour of the
people. Though the customers are having good awareness levels regarding the
services of IIFL, they are not in a frame of mind to open a demat account
because of various reasons.

 IIFL is facing a tough competition from the competitors with the same kind of
services already being provided by majors, such as Sharekhan and Indiabulls.

 IIFL needs to implement the various medium to offer advertising of its

services, thereby enabling it to promote its online trading platform.
SUGGESTIONS

Suggestions are done on the basis of finding and analysis of data collected through
questionnaire

 In order to increase sales in the highly competitive online trading market,

attractive schemes such as fast website interface, providing quick
confirmations for new order placed during the early morning trades, and
offering flexibility on leverage on intra-day trades

 Majority of the customers in the online trading market are new to the market.
IIFL should conduct seminars and other programs to bring awareness on the
products offered

 Customers should be contacted at a regular interval through phone calls and

asking them if they are facing any problems with the online trading platform,
so that customer is 100% satisfied with the service

 Advertising plays a very important role in increasing the awareness and in

reminding the customer about the products and services offered by IIFL.
Hence, advertisement about the firm and its products and services must be
aired on local T.V channels as well as in newspapers and magazines.

 Since the people tend to forget the advertising of a particular product/service,

a reminder message by IIFL has to be enforced in regular intervals and in a
proper media which would reach a large number of potential customers
CONCLUSION

Brands are now a central feature of consumer marketing, they are important in
building long-term relationships with the consumer, irrespective of the type of
market. Their importance is now also being recognized in other markets, including
service and industrial. Investing in a brand builds consumer confidence and loyalty
and allows for brand stretching. It requires a consistent and long-term strategy.

A survey of the customers has been conducted to know the brand awareness
of the online trading firms available in the market with special reference to India
Infoline Ltd.

 IIFL has built its brand awareness among a relatively good number of people
in an around Hyderabad

 The customers are aware of the services of IIFL with the help of hoardings
and television. The company now needs to focus on finding ways to increase
its advertising channels to reach the relatively large number of people

 People prefer India Infoline due to its competitive brokerage structures, fast
trading platform, prompt online response, apart from tips and guidance from
the company
CHAPTER VII

BIBLIOGRAPHY
 BIBLIOGRAPHY

Text Books:

Marketing Research G. C. Beri

Marketing Management Philip Kotler
Marketing Management V.S Ramaswamy & S.
Namakumari

Internet:

www.google.com

www.indiainfoline.com

www.sharekhan.com

www.indiabulls.com

www.wikipedia.com

www.economictimes.com

Magazines:

Companies Brochures & Manuals

Business Today
 QUESTIONNAIRE

Customer Name:

Age:

Occupation:

Income:

1) 1. Have you heard about online trading services of IIFL [ ]

a) Yes b) No

2) From which mode of media you heard about the online trading services of IIFL?

[ ]

a) Television b) Hoardings c) Newspaper & Magazines d) Other

3) How often you have heard about the services of IIFL? [ ]

a) Many Times b) Often c) Some Times d) No Idea

4) Are you maintaining a demat account with IIFL? [ ]

a) Yes b) No

5) Did you like the services of IIFL? [ ]

a) Yes b) No c) Not Related

6) Do you own a demat account with other broking firms apart IIFL? [ ]

a) Yes b) No

7) Do you wish to maintain an account with IIFL? [ ]

a) Yes b) No c) Not Decided

8) If no, which broking firm you are looking to maintain an account? [ ]

a) Sharekhan b) Indiabulls c) Kotak Securities d) Motilal Oswal

Securities e) Not Decided

9) Why do you want to maintain a demat account with IIFL? [ ]

a) Less Brokerage b) High Speed Access c) User Friendly Website

d) Others e) No Idea

10) Can you recall any advertising of IIFL online trading? [ ]

a) Yes b) No c) Not Sure

11) Would you like to recommend IIFL online trading services to others? [ ]

a) Yes b) No c) Not Sure