Internship Report

INTERNSHIP REPORT

Saravana Pandian.D FW/07-09/F3 IIPM Chennai

A REPORT ON

“SALES & MARKETING OF FINANCIAL PRODUCTS” IN

RELIANCE MONEY CHENNAI

A Report submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration

By Saravana Pandian.D PGP/FW/07-09/F3

Under the esteemed guidance of

Prof.Krishnan.R Dean, IIPM, Chennai.

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT CHENNAI

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ACKNOWLEDGEMENTS

As I sum up draft of my study, I appreciatively reminisce the contribution of all those people without whose support and help, this study would have never taken its present form I thank Prof.R.Krishnan, Academic Dean, IIPM Chennai and Prof.Amlan Ray, Admin Dean, IIPM Chennai for giving me the opportunity to do my internship at Reliance Money, Chennai. I deem it my pleasure to convey the deepest of my heart-full thanks to the management of Reliance Money, Chennai which has given me permission to conduct this particular study on Sales & Marketing. My sincere thanks to Mr.Boobalan, Center manager (Capital), Reliance Money, Chennai, for guiding me a long way and for successful completion of my internship with in the time frame, who has given me the initial orientation about the organizational activities, whose patience and faith in my abilities always boosted my confidence. I am also thankful to Sri.Parmala Khandhan, Business Associate, Reliance Money, Adyar, Chennai for providing me with the conceptual base and secondary data and for their timely and valuable suggestions. (SARAVANA PANDIAN.D)

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Table of Contents ACKNOWLEDGEMENTS...............................................................................................3 EXECUTIVE SUMMARY..................................................................................... ............5 INTRODUCTION TO DEMAT ACCOUNT.........................................................................6 INDUSTRY PROFILE.....................................................................................................7 COMPANY PROFILE............................................................................................... .......8 VISION......................................................................................... ...............................9 MISSION.......................................................................................................... ............9 ORGANIZATIONAL STRUCTURE ................................................................................10 ........................................................................................................ .........................10 SALES METHODOLOGY.......................................................................................... ....11 PRODUCTS OFFERED................................................................................................12 ....................................................................................................... .........................12 ROLES AND RESPONSIBILITIES................................................................................. .13 ........................................................................................................ .........................13 KEY LEARNINGS.................................................................................. ......................14 Visibility of the outlet............................................................................................ .15 Area Potentiality............................................................................... .....................15 Sales Activities......................................................................................................16 RECCOMENDATIONS.................................................................................................16 For Visibility of Franchisee.....................................................................................16 For enhancing Sales Activities...............................................................................16 For customers’ satisfaction................................................................................ ....16 CONCLUSION.............................................................................. ..............................17 4

EXECUTIVE SUMMARY As a part of my MBA curriculum I have done my internship training at reliance money, Chennai. In this report I am going to share my experience in that company for the period of 45 days from 19.05.2008 to 05.07.2008. During my internship my role was “Business Development Executive”. I was supposed to boost the sales of one of the low performing franchisees of reliance money at Adyar. As a part of this task I had identified some problems and provided some recommendations to that franchisee to boost the sales of Demat and Online Trading Account.

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INTRODUCTION TO DEMAT ACCOUNT If we want to save our money, then we have to open a savings account with a Bank. Such like that if we want to bye and sell shares, then we need to open a Demat account with a depositary participant registered with SEBI, NSE, and BSE. Demat denotes the dematerialization of shares. Demat account along with a trading account from a DP facilitate us to bye and sell shares online and to store the shares online without any bonded paper stuffs. Demat account facilitates faster transaction when compared with the older traditional trading method, (i.e) the share buyer have to inform to the broker regarding his purchase decision and then the broker forward it to the stock exchange, then they allot the shares to the respective buyer and send him a registered share certificate via postal department. The investor has to wait for 5 days for his transaction. But now due to the entry of Demat account and online share trading platforms. The investor can buy and sell any volume of shares online by one mouse click!

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INDUSTRY PROFILE Share broking has been an extremely profitable business in India in recent years. “The last four-five years have been fantastic for the retail broking business with 60 to 70 per cent growth annually,” “Right now only one per cent of the Indian population is investing in equities and, if in the next five years even if 5 per cent of the population invests, then 25 to 30 per cent growth is guaranteed.”“But it’s a difficult and challenging business as it is tough to live up to the expectations of low net worth individuals,” The consolidated results of Indian broking firms are more indicative than their standalone financials of how these companies’ profitability has grown, said analysts. In the case of IL&FS, the securities broking business and its merchant banking business have been transferred to separate wholly owned subsidiaries.Its wholesale financing business was a distinct contributor to revenues, accounting for Rs. 141 crore in 2007-2008, against Rs. 7 crore in the previous year.

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COMPANY PROFILE The Reliance – Anil Dhirubhai Ambani Group is among India’s top three private sector business houses on all major financial parameters, with a market capitalisation of Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,000 crores (US$ 29 billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion) Reliance Money is a comprehensive electronic transaction platform offering a wide range of asset classes. Its Endeavour is to change the way India transacts in financial markets and avails financial services. Reliance Money is a single window, enabling you to access, amongst others in Equities, Equity & Commodities Derivatives, Mutual Funds, IPOs, Life & General Insurance products, Offshore Investments, Money Transfer, Money Changing and Credit Cards. Reliance Money is a group company of Reliance Capital; one of India's leading and fastest growing private sector financial services companies, ranking among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management, life and general insurance, private equity and proprietary investments, stock broking and other financial services. Reliance Capital is one of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. The company has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and other activities in financial services.

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VISION To build a global enterprise for all our stakeholders, and A great future for our country, To give millions of young Indians the power to shape their destiny, The means to realize their full potential… MISSION To create and nurture a world-class, high performance environment aimed at delighting our customers by providing endless financial products in all part of the country.

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ORGANIZATIONAL STRUCTURE

National Level

:

National Head

Zonal Level

:

Zonal Head

Regional Level

:

Regional head

Divisional level

:

Cluster Head

Branch Level

:

Center Manager

Area Level

:

Business Development Executives & Freelancers

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SALES METHODOLOGY

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PRODUCTS OFFERED

PLANS

AOF FEES

UPFRONT BROKERAGE VALIDITY

TRADING LIMIT

NET FEES

A

750

500

1 YEAR

5 LAKHS

750 *

B

750

1250

6 MONTHS

3 CRORE

1500 *

C

750

3000

1 YEAR

6 CRORE

3000 *

*OFFERS For Corporate customers: Rs.750 waived off For individual customers: Rs.500 waived off

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ROLES AND RESPONSIBILITIES I started my career in Reliance Money as a Business Development Executive. Basically Reliance Money was working on Franchisee model. They are having 30 franchisees in and around Chennai. I was allotted with one of that franchisee which was performing not so good in terms of sales. My role is to find the problem (s) in that franchisee and to give suitable solutions as a recommendation to that business associate (Franchisee head).

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KEY LEARNINGS Apart from the assigned roles and responsibilities, the center manager facilitate me with a training which covers the product details of Reliance money, and how they are cheaper than other broking agencies, about their corporate culture, organizational structure, sales methodology, tele-calling, application handling, grievances handling with respect to aggressive customers , etc., Regarding customer handling, they provide me with a database for cold call. As it is my first experience in tele calling, I got tense due to the harsh responses. Later by realizing the responses from the prospective lead calls boost my confidence in tele calling. The Business associate I adyar franchisee taught me to handle the applications and other stuffs which was important with respect to application processing. From the franchisee I have learned hoe to use the Power trade Platform to trade (Buy & Sell) fast. Trading as Intraday needs concentration and speed when compared with delivery type of trading.

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MAJOR FINDINGS

I have considered the following parameters foe identifying the reason for the poor performance of that particular franchisee. They are, • Visibility of the outlet • Infrastructure facilities • Nearest competitors • Area potentiality • Sales activities Visibility of the outlet The franchisee was located in the main street which was connecting Adyar and Tiruvanmiyur. But the visibility of the outlet has a problem because of the old tampered boards displaying the banner of Reliance Money. So the prospective leads may be left unnoticed. Area Potentiality Adyar was one the few areas in Chennai which hold the high net worth (HNI) individuals in a hub. So the area was a high potential area which can feed us with sufficient volume of business. So the area was not at all a problem for the poor performance. It implies that the problem was within the franchisee and it’s activities.

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Sales Activities Being doing business in a high potential area, this franchisee can not extract the available potential in that area. All because of the un availability of Business Development Executives with the franchisee to contact the prospective HNIs at their door step.

RECCOMENDATIONS For Visibility of Franchisee To enhance the visibility of that franchisee, I recommend them to replace that old tampered sign board with a new one. As an initiative step from my side, I along with the business associate of adyar franchisee reported the zonal office for providing the new banner for adyar franchisee. For enhancing Sales Activities The first and foremost resource needed for enhancing he sales activities is the Human Power, (i.e.) to recruit some business development executives to assist the sales activities of that particular Adyar Franchisee. The recommendation was pass through proper channel to the business associate. For customers’ satisfaction When I had a chance to meet the existing customers, I came to know that they are not happy with the internet assistance provided by the Reliance money. They are reporting that the speed was very bad when compared with the online platform provided by ICICI direct. So Reliance money should take steps to upgrade the speed of their trading platform with user friendly services too.

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CONCLUSION From this 45 days experience in a corporate, I got a good exposure about what really the corporate life is about. Its waking along with targets and mind stresses every morning. The person who can manage these target and stress are shining in those fields.

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