Study of Best Practices in BFSI Sector for Marketing, Branding & Communications Plan for Online Trading Product

Study of best practices in the

bfsi sector for marketing, branding

& Communications plan

for Online trading product

Project by: Ms. Naziya Diler

dilernaziya@gmail.com

Balaji Institute of International Business (BIIB), Pune

Survey No. 55/2-7, Tathawade, Opp. Wakad Police Station, Off Pune-Mumbai Highway,Pune - 411 033. (T): +91 - (020) - 6674 1081/ 83/ 84/ 85Date: 22nd July, 2008

Abstract

Way2Wealth Securities Pvt Ltd is in the process of launching an Online Stock Trading Product, for which it is undertaking this research. This project primarily focuses on the pre-launch activities and product development recommendations for the online trading product of Way2Wealth Securities Pvt. Ltd.

The research aimed to find out the existing market, analysing the competitive environment, determining the target audience, suggesting product features, and B2B & B2C communication formulations.

The four Ps namely, Price, Place, People & Promotion were studied in terms of Price the brokerage & other charges levied on the customer in online trading; Place India is taken as the market; People the mass affluent class; Promotion includes the branding & communication strategy practically worked on.

The research questions were answered by studying the macro variables, interviewing the market players and observation of existing international & within the country practices. The analysis of the project in a SWOT pattern for all the participants in the form of Porters 5 forces of competition viz, new entrants, rivalry among existing players, bargaining power of buyers & sellers, and threat of substitutes.

The conclusion is in the form of recommendation. The conclusion of the project was that Way2Wealth should launch the product, offering more than just the basic features. The add-ons can be in the form of the existing individual services bundled to serve ancillary needs of the target audience.

Acknowledgements

To begin with I would like to thank

1. Mr. Hutaib Bandukwala my mentor and guide. The first thing as a mentor which he took care of, was getting me comfortable with my environment. He made sure I enjoyed this project, and gained the most out of the entire process.

The learning gained was more implicit than explicit. Humble by nature, he is a fantastic listener, and never closed his ears to the ideas, however irrational or impractical they may be. He encouraged me to move out of my box and experiment with the external environment. He exposed me to as many doors of experiences & avenues as he could. He was patient with my work & helped me bring out the best in me. I was made an active participant to all other activities taking place in the department, which made my learning more than just on online trading. He made it a point to take a feedback of my day and set me a challenging variety of targets. Should I go in dips, he also was there to bring me out of it and set me on my track.

He allowed and promoted my freedom of speech & thought. With the amount of activities I have undertaken under him & the exposure received far more than I had anticipated. If there is one thing which I wish to have learnt and take back with me is his humility, patience & sense of humour!

2. The Top Management of Way2Wealth, namely,a. Mr. Shashibhushan CEOb. Mr. Sunil Ramrakhiani COOc. Mr. Gentil Augustine Head Human ResourceDespite their busy schedule, they readily provided me their time, opinions and experiences which helped me not only understand the intricacies of business but also Way2Wealth better. The interaction itself was a tacit learning about the corporate life.

3. Mr Suresh Chauhan A Way2Wealth branch manager, who on the request of his head Ms. Mini Yadav, readily helped me grapple the intricacies involved in investing.

4. The Staff of Way2Wealth, Nariman Point Branch my acknowledgment would be incomplete without thanking all my colleagues who add life to the branch Nariman Point Branch of Way2Wealth (earlier the corporate office now the regional office). All my colleagues, with whom I shared space, made Way2Wealth a wonderful experience. I was provided with all the resources and opportunities of interaction as available to any other employee of the same.

Some of the important lessons, which I am taking back from Way2Wealth is not something I can express in words.

You all made my way into Way2Wealth and first exposure to the corporate world a very memorable one. Thank You Everyone!Overview of the Project

The following activities/ recommendations were undertaken during the project:

a. International Industry Analysis:

i. Study on Best Practices followed by International players offering Online Trading

ii. Study on Indian players providing online trading in international markets

b. Macro Industry Analysis:

i. Analysis of stock brokers in India and the products & services offered by them

ii. Benchmarking of online trading products offered by brokers in India

iii. Provided recommendation on 'way2wealth' product features, based on the above analysis

c. Research Undertaken:

i. In depth Competitor, product Analysis, by undertaking visits to competitor's branches

ii. Undertook Client Interface on experience with trading online

iii. Interviewed the In-house Management to understand Way2Wealth in depth viz. key strengths of the organization, product positioning etc

d. Pre-launch activities for Way2Wealth Online Trading Product:

i. Advertising Planning

1. Selection of web partners understanding the variables in advertising planning

2. Advertising Budget Planning/ Recommendation based on proposals offered by the agencies.

3. Product Name Recommendation

4. Recommendation for Content of Brochure & Flier

5. Suggestions for Web Page Content Management

1) Suggested layout for webpage & features on the web page

2) Recommended content for like Online Trading School, FAQs, Glossary

ii. Worked on PowerPoint Presentation for the Online Trading Product

iii. Explored options Mock Online Stock Trading Games

e. Post Account Opening for Way2Wealth Online Trading Product:

i. Worked on content for Welcome Letter

ii. Working on Customer Service guidelines

iii. Gave recommendations for Script for Tele-callers

Executive Summary

The project broadly deals with the pre-launch activities of the soon-to-be-launched Online Trading Product of Way2Wealth Securities Pvt Ltd. The project began with the briefing session by my mentor Mr. Bandukwala on what exactly the project was about. I was given time to first learning the basics before delving deep into the topic. I would discuss my lessons and doubts at the end of the day with my mentor. Accordingly, I built up my next reading and study for the project. This included discussions with friends who were already dealing in the market.

To ascertain the practical application, grapple better the material read of the same, I finally got down in the real market scenario. With this began my methodology aspect, wherein I interviewed and conversed with the branch members/ customer care executives of the various competing market players and then accordingly varied my information acquiring techniques. The first day was very encouraging, where most of my technical learning took place. I entered the competitors office, as a student, who has just finished her graduation, and is looking at investing as an option. We are a bunch of friends and are together planning to invest with one agency by pouring our resources in one basket. I made it clear I do not know much about it. Even if my queries were genuine, disclosing that I am pursuing MBA would have put me in a disadvantageous position.

The question parameters were based on one of the previous similar benchmarking activity undertaken. Questions were added by my mentor, which I was expected to look out for. With each enriching discussion I had with the various relationship managers, not only did it add knowledge about the variety of products but also the parameters to better define by benchmarking activity (enclosed in annex).

The questions were memorised by the end of the second day. Yet should I have missed out any information, I called up at the call centres or even the managers and took the necessary details.

There were instances, where I was disappointed with the kind of interactions I had with some relationship managers. On an average I spent about 45 mins to an hour with each of the branch visited.

I made it a point to go to the branches or the main offices so that I could get a real-time feel of the set-up in a financial organization & the competitors environment. Also thanks to these trips (at a few places) I was shown the real-time working of the software used by them. Another major insight was how much a relationship manager knew about the product. In most of the cases it was disheartening, as their knowledge on the same was very little. This was more so in the case of customer care centres. The HDFC customer care executives were very good, and had the least waiting time when answering my queries.

One incident at Religare was equally striking, as while I was conversing with a relationship manager at their branch, there was a complaint regarding the paperwork. Most of the people refrained from participation. The customer was dealt with his executive. When I asked the manager briefing me on the same, he quietly abstained from the entire process.

Observation: Even though the offices have been well-built and well-equipped, the stress is on dealing with a client at his own set-up than our own offices. Reasons could be many, like refraining exposure to other clients, or client exposure to in-house problems etc.

After having ventured from Navi Mumbai to Malad to Fort, I felt fit enough to take the information about the rest of the players on phone. Hence, my earlier part of the day was spent in either looking up at the competitors web page or understanding the in-house functioning of Way2Wealth, while post 3.30pm was on the phone guised as a customer with the other players. Even while on phone, my average time spent was 30 45 mins, when interacting on the same. Thus, I managed to gain information on maximum 3 or 4 players each day.

There was an instance where I called up at Networthstock and was asked to call at a variety of numbers; each one was asking me to call the other person. It reflected their inability to deal with a new client or that they were too full with the same. It certainly leaves a negative impression on a prospective client.

I finished the bench-marking activity and submitted the same within the first 20 days of my project.

Next I was moved to the marketing, branding and communication aspects of the project. Here I was exposed to activities like advertising, product feature recommendation, brochure, flier, PPT.

One of my suggestions in my early stages was the use of credit card for trading transactions. The idea was pursued, but on verification by my mentor, it was not found feasible due to some technicalities involved with credit cards.

The other avenue which I was able to explore was that of Mock Trading Games. For the same, I got in touch with various software developers. The idea was followed for a week but later had to be scraped as the costs involved were too high in terms of both money and development time.

It was during this time that I even got in touch with mobile game developing company. It was not pursued further. We were looking only at purchasing an of-the-shelf game than otherwise. At the end of a week the whole idea was scrapped as we were unable to find the right source for the same.

For the flier and brochure, I worked for about two weeks simultaneously with the other activities. This again was scrapped and an advertising agency was being considered for the same.

For online advertising I got in touch with Rediff, Chittorgarh, MSN & Google. A comparison was made and sent to the management.

My other activities included the web page content, for which I made an online school including the basics on investing, understanding the equities, derivatives & glossary. An entire Knowledge Centre was made as a recommendation and submitted.

To enhance the quality of the Knowledge Centre, I was provided assistance by the internal Way2Wealth staff, who helped me understand the basics of investing along with the tools available to do the same viz insurance, mutual funds etc (only the basics).

Apart from recommending product name & product feature recommendation, I also submitted a PPT (suggestion) on the online trading product.

Towards the end, my other set of activities dealt with post account opening, viz Welcome Letter & Customer Service Guidelines & Tele Callers Script.

To add a final touch to my entire understanding on the industry and the product, once I was well acquainted with the product, I also had a tte--tte with the Top Management, who was very co-operative & generous with their ideas & the time they allowed me for the interaction.

When I started my project, Nariman Point Office was the Corporate Office, which in my presence was moved to the Chandivali Estate (Andheri); Nariman Point Branch now a Regional Office. Even though my mentor was a part of the Corporate executives, since his functioning was from the Nariman Point Branch, I too worked from the same place.

The interactions helped me understand not only the view of the organization from the bottom level & middle level but also the top level.

Also, there was constant guidance by my mentor, who made sure I was set back on track should I deviate from the same.

The overall value of learning increased as I was exposed to lot of action and activity apart from the organizational behavioural study of a restructuring organization.

The chances of finding loop-holes in a dynamic organization are far little than in a static organization. Also my tenure with the organization was too short for the same. Yet on an overall it was an enriching experience.

Table Of Contents

Page Number

1.1.1 Introduction14

1.2 Hypothesis18

1.3 Purpose Research Objectives19

1.4 Importance of Study20

1.5 Problem Definition20

1.6 Limitations20

2.2.1 Methodology21

2.2 Setting21

2.3 Participants23

2.4 Procedure24

3.3.1 Results31

3.2 Competitive Analysis33

3.2.1 Internal Analysis 33

3.2.1.a. Way2Wealth34

3.2.2 External Analysis47

3.2.2.a. International Market48

i. Charles Schwab 49

ii. E*Trade51

3.2.2.b. Indian/ Local Market Players53

i. Angel Broking54

ii. Asit C Mehta56

iii. Bonanza Online57

iv. Dawnayday AV Securities58

v. Geojit59

vi. HDFC Securities60

vii. ICICI Direct61

viii. IDBI Paisa Builder62

ix. IL & FS63

x. Indiabulls64

xi. IndiaInfoline65

Table of Contents (Contd)Page Number

xii. Kotak Securities66

xiii. Major Gainz 67

xiv. Motilal Oswal68

xv. Networthstock69

xvi. Reliance Money70

xvii. Religare Securities71

xviii. Sharekhan72

xix. UTI73

3.2.2.c. Cross Sectional Analysis74

i. CNBC TV1875

3.2.3 Marketing, Branding & Communication Activities

77

3.2.3.a Pre-launch Activities78

i. Advertising planning78

MSN80

Google81

Rediff82

Money Control83

Chittorgarh84

Yahoo85

ii. Brochure & Flier86

iii. Power Point Presentation87

3.2.3.b Web Page 88

i. Features on Web Page88

ii. Web Content Management89

3.2.3.c Other Options90

i. Mock Trading Games90

3.2.3.d Post Account Opening92

i. Welcome Letter92

ii. Customer Service Guidelines & Script for Tele-callers

92

Table of Contents (Contd)

Page Number

4.4.1 Conclusions93

4.2 External Industry Scenario94

4.3 Internal Organizational Factors96

4.4 Product Features98

4.5 Product Related Recommendations100

4.6 Web Page Recommendation102

4.7 Customer Care Factors104

4.8 Branding, Communication & Marketing105

5. References109

6.Appendices112

1.1 Introduction

India followed a socialist-inspired approach for most of its independent history, with strict government control over private sector participation, foreign trade, and foreign direct investment. However, since the early 1990s, India has gradually opened up its markets through economic reforms by reducing government controls on foreign trade and investment. Also, the privatisation of publicly owned industries and the opening up of certain sectors to private and foreign interests has proceeded slowly amid political debate.

In the last few years, there has been a significant development in the stock markets indicators such as market capitalization and trading value in the region following liberalization measure. There is clear evidence that post liberalization, the markets in India is affected by the major as well as by the regional markets in the long run. In the short run, however, the markets appear to be independent of one another. (Fazal Husain and Abdul Qayyum)

Amidst such times, development of a product in anticipation of the any upcoming needs is inevitable. Product Development can be defined as the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product . Elan describes it as, the stages that occur from the time a business generates a new business idea to the launch of that particular product in the market

Product Development is a creation of products with new or different characteristics that offer new or additional benefits to the customer. It may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.

According to Kotler, Product levels can be understood as follows:

Product Levels

There are 4 product levels:

1) Core benefitThe fundamental service or benefit that the customer is buying

2) Basic productConverting the core benefit into the product

3) Expected productSet of attributes & conditions buyers normally expect when they purchase this product

4) Augmented productProduct that exceeds the customers expectations

Product development is undertaken by a company as a strategy. Along with fulfilling the unsatisfied needs of the existing market, it is to enter a new market or as a new channel to communicate with existing or new customers. Product development is incomplete without cost efficiency. The core aim behind any innovation is to make the product more cost-efficient, not only for the seller but also the buyer of the same.

Every new method of trade offers an opportunity for economic agents to compare its costs and benefits relative to the status quo. Such comparison motivates sorting across market segments and reshapes the whole marketplace. The Internet provides an excellent example: it introduces substantial search cost savings over brick and mortar retail stores but imposes new obstacles for sellers to convey quality. (Ginger Zhe Jin University of Maryland and NBER & Andrew Kato, Bureau of Labor Statistics). Thus, once the product is developed, product management/ communication come into play.

Product Management can be explained as the organizational structure within a business that manages the development, marketing and sale of a product or set of products throughout the product life cycle. It encompasses the broad set of activities required to get the product to market and to support it thereafter.

Also, when analyzing geographic patterns of trade, we find that distance continues to be an important deterrent to trade between geographically separated buyers and sellers, though at a lesser extent than has been observed in studies of non-Internet commerce. We also find a strong home bias towards trading with counterparties located in the same city. Further analyses suggest that cultural factors and the possibility of direct contract enforcement in case of breach are the main reasons behind the same city bias.(Ali Hortasu, University of Chicago and NBER & F. Ass Martnez-Jerez, Harvard Business School & Jason Douglas)

Something similar is observed in the trading businesses as well, where there are players dominating a particular region over the other merely due to closer geographic proximity.

For a product like trading, geographic proximity can be predicted to have an impact, as the Indian client is still not used to the idea of virtual transactions. The reason as that in this industry trust & understanding is of great importance. It feels safer to have the person dealing with your money geographically closer than otherwise.

The role of cultural bias is debatable, but can not be shunned away. There are so many stock market players in India and each have a different key strength and weakness. Something similar happens with the online trading business as well. Though the level to which both these factors affect the online trading market is debatable & yet to be unfolded.

At present, the Indian markets are experiencing a state of turmoil (or correction), where the markets are in the worst of the bearish phases. Even though online trading has been around for quiet some time, it was only a few months ago, when the BSE was running in 20,000 points to win the bullish race that it really picked pace; today drooping to a low of 13,000 odd points in BSE & 4000 points in NSE, further dipping each day.

There are studies which reflect that an offline trading with increasing confidence move from offline to online trading. It is often argued that the internet influences investor behavior. Furthermore, the recent bubble" in internet stocks are sometimes ascribed, at least in part, to online trading. However, little is known about how online investors actually behave. (Markus Glaser)

Recently, researchers have gone a step further from just documenting biases of individual investors. More and more studies analyze how experience affects decisions and whether biases are eliminated by trading experience and learning. (Markus Glaser and Martin Weber)

Thus, conflicting and complementing, today, the market as well as the players are as unpredictable & enigmatic as the other. In such a scenario the question pertaining to W2W is regarding the launch of its online trading product. Thus, the project is to determine the need gap, what should be the product features suitable for the Way2Wealth product to suit the volatile markets, along with the communication plan for the same.

In a situation as such, where the basic offering is more or less the same, the role of marketing the products becomes very dominant. In the race today, it is not only what you sell but how you sell.

1.2 Hypothesis

1. Product features of Way2Wealth product should be have the minimum features namely,

a. Trading in Equity

b. Trading in Derivatives

c. Intraday & Delivery

d. Linkage to minimum 1 Demat Account

e. Linkage to minimum 1 e-bank account

f. Watchlists 2 minimum

g. Portfolios 2 minimum

h. Trade in NSE

i. Trade in BSE

j. Web based platform

2. W2W along with the online trading platform should provide other gamut services to promote costumers to take up online trading services.

1.3 Purpose Research Objectives

The Key Issues and Facts Analyzed by this paper is:

Through this research paper, we aim to understand:

Research questionsResearch Objectives

1. What does the market look like in Online trading?To determine the best practices in online trading by surveying both local & international best practices in Online Trading (OT)

2. Who are my competitors?To determine the nature of competition in the existing market (competitive analysis of Players in the Online Trading Market (OTM))

3. Why are online trading products needed?To determine the needs for online trading products (OTP)

4. Where do the existing products of Way2Wealth stand?Benchmarking of Way2Wealth Products

5. What features do I need to provide?To determine the Structure of Product features

6. How should I communicate to my target audience?To determine the marketing & communication plan for launch of W2W online trading

1.4 Importance of Study

The beneficiaries of this study will be strategic planning groups, marketing groups & executive managers in the online trading business.

1.5 Problem Definition

i. To determine the product features for the new online trading product by Way2Wealth

ii. To determine the marketing, branding & communications plan for the online trading product

1.6 Limitations

A major limitation with the existing literature is that there is very little study on the Indian markets, thus, though they can be accepted to a certain extent, they can not be 100% verified.

2.1 Methodology

The project was broadly structured to have an in-depth market analysis of the existing players so that the strategies on the same could be tapped and used as an advantage when launching the online trading product for Way2Wealth.

To undertake such a study, I was first given time to understand the market and its functioning and so on. Having met the primary criteria after a weeks study, I went out for the market research, guised as a customer. The basic guidelines were provided to me by the organization from previous benchmarks on the same. With exposure, I was allowed the freedom and flexibility to add-on the parameters.

With the feedback session, everyday, by my mentor I was soon able to answer most of the critical questions pertaining to the product.

To keep up my enthusiasm and my agile mind, he further added responsibilities, which otherwise were not a part of my project, along with the every-day operations, which would not necessarily fall under an interns project. 2.2 Setting

Broadly put, the methodology adopted for the entire project tenure, was observational, case study. The tools used for the same were interview & observations made in the natural settings. All tools were used in a matrix format, such that some of the information received would help verify any prior obtained information.

The secondary sources of data were customer care centres, relationship managers, Management of Way2Wealth, newspapers, web pages etc. The books and web were little sources as most of the data I collected was from the real market itself.

To begin with, the first two weeks were spent in the trying to understand what is online trading and the market scenario. Articles printed online were used for reference as well. Apart from that, help was sought of people who understand the online trading business. It included a few friends, relatives, online help and my mentor to clarify the doubts as and when they arose.

My mentor guided me with the nature of questions which was supposed to be enquired on in relation to Online Trading Products. With his assistance, I was able to draft a structured questionnaire. Yet it is important to note, that the questionnaire was only a pointer. The answers were to be sought not as a market researcher but as a customer. So it was similar to that of an interview than conducting a structured questionnaire.

As and when I found pointers/ parameters, I added them on to the list. If I missed getting the information from the previous organization, I would go and collect it from them over the phone later, when clarifying doubts about the product. Thus, it was an inductive research process.

Going into the details, I managed to meet the relationship managers of quiet a few players. Once I got a hang of the entire game, I managed to ask questions on my own, without any assistance of a written question paper. One of the successes was when after a week of this exercise, I indirectly confirmed to the person on the other end of the phone that I am not a novice in the industry. By the time that stage arrived there was no need to portray myself as a novice customer. My interactions made me come across as a trader. The other advantage in this situation was that the telephone was the means of my communication.

The benefit of this methodology was that I could gradually improve on the entire information collection procedure, considering, the entire project was undertaken by a single student in a city as wide-spread as Mumbai.

2.3 Participants

The players I have taken in my study are:

InternationalIndian/ LocalCross-Competition

Charles SchwabAngel BrokingCNBC18

E*TradeAsit C Mehta

Bonanza Online

DawnayDay AV Securities

Geojit

HDFC Securities

ICICI Direct

IDBI Paisabuilder

IL&FS

Indiabulls

IndiaInfoline

Kotak Securities

Major Gainz

Motilaloswal

Networthstock

Reliance Money

Religare

ShareKhan

UTI

Apart from these external participants, the internal participants were the employees & Management of Way2Wealth Securities Pvt. Ltd.

2.4 Procedure

The methodology undertaken for each of them is as follows:

a. International Industry Analysis:

i. Study on Best Practices followed by International players offering Online Trading:

The entire study is more or less like a case-study undertaken to understand the trading market practices on a wider spectrum. To understand the best practices offered, I studied the two prominent players namely Charles Schwab & E*Trade. The study was more or less an observational one, where my source of data was internet. To understand this cycle better I had even ventured into understanding the forex trading portal.

ii. Study on Indian players providing online trading in international markets:

During the entire tenure of my project, I made it a point to visit some or the other portal of the local/ international market players. It was during one such occasion that I registered on E*trade to trade in the US markets.

It was after a week or so, when I received a call from IL & FS, a sub-holding of E*Trade (now taken over by HSBC). They explained me the entire process of trading in the US market, the benefits of the same. It was more or less like a telephonic interview where even though I was supposed to be the customer, was the one digging out information on their product and more.

I requested a brochure (refer annexture), which was delivered to me online in a few days. They called back with information for a week, after which there was no response from their end.

The other company which offers this facility is ICICI Direct.

iii. Local Market Players:

When I entered the offices of the competitors, I made portrayed myself as a first timer interested in investing in the market. To begin with this, I first went to Asit C Mehta, office located in Belapur. I wanted to experiment my skills, needs and requirements before I enter the bigger offices. It was for the same, that I carried my questionnaire in hand. It helped me understand the reaction I could expect from my respondent.

It was not a very motivating experience, but I managed to collect their brochures, newsletters apart from account opening details. The meeting lasted about 45 minutes during market hours. He suspected me to be a market researcher. The interaction was during the market hours.

With a lesson of such nature, I moved to Nerul, where I entered the Sharekhan Office. Before entering their office, which was a small franchisee place, I wrote down all the questions in a book and then went ahead to interact with them.

The meeting here lasted over 1 hour. The owner could spare the time as he was not a direct trader but owned the franchisee outlet. The person was curious like the previous one, with the nature of my queries, as such questions were never asked by the investor. It was here that I weaved a story of me being a graduate, who has just given the final year examination, and since it is vacation, looking at investing as an option. Since we were discussing things together, we jotted down the necessary questions we could ask. He was cordial but distrustful.

He entertained me till the end, where in I left my contact details at the counter. He provided me information about how his product is better than the competition, which I could use later in my conversation with those companies. They reverted back 2 days later, with an e-brochure on the same. It was more like a letter than a brochure.

From there I moved to Vashi to explore the brokers fraternity there. I went to IL&FS branch located there. By the time I reached, the markets had closed. So the concerned person was able to give me proper attention. He was an earlier employee of Kotak, so he could offer me insights on the same. With him, it went to about 45mins to an hour, where he even showed me how the software works. He said he liked the idea of educating his clients and helped me understand some more of the terminology & its practical application. He provided insights on IL&FS vs Kotak.

It was the last meeting for the day, after which I visited the Way2Wealth branch in Vashi. The person on the desk had met me in the Head Office, hence, there was no point in disguising my purpose. I discussed with him the reasons customers opt for online trading/ offline trading and other information relating the business. The interaction lasted about half an hour to an hour, interrupted with a few clients in between.

I visited 3 firms in a day. At the end of the day, I discussed the interactions with my mentor, who would then correct me, suggest me the points where I could improve, or just note the observations I make & assess my feedback.

The next day, my trip began with IndiaInfoline/ 5paisa.com, located in Vashi. Since it was a visit during the market hours, I was able to not only know about the product, but was able to see their software in action unlike a demo. The lady relationship manager was very supportive, and made sure I understand things better. She didnt have a brochure or any physical document for me to carry back. So she gave me the flier of their currently launched plan in online trading. Her follow up was not as good, but her communication skills were good.

My next stop was Geojit branch, at a close distance. The office layout was very basic and the person on the desk was not customer-friendly. In fact, he directed me to call the helpline and ask all possible details on the product. There was very little awareness about the product. It was a disappointing 10 min interaction.

The Religare office on a floor above was my next stop. I had received a call from their call center, as I had made an online enquiry on online trading. The lady had said, I would get a call from someone, but nothing happened. I visited the branch personally. The branch was a very small one. The people seemed to have little receptivity towards any new client. When after about 10 15 mins I managed to meet someone, he did explain me the entire process (the little of what he knew) in the next 15 20 mins. He concluded by saying that he is not aware much about the online trading products, as he deals in offline trades & Il have to get in touch with the Malad branch.

Reliance Money, was my final stop for the day, where I spent about half an hour discussing the product and benefits and as such. The people were more polite & co-operative than that of Religare or Geojit. I was directed to two different people as the information available was not sufficient with any of the concern persons. There were 2 3 trading terminals located in a small corner. That was the end of my visits for the day.

The next day I ventured out into the western suburbs of Goregaon & Malad, Religare, ICICIDirect, BonanzaOnline, & Angel Broking.

I began my research from Religare, where I met the relationship manager and interacted with him for over an hour. The office set up was of light colors and not as blue as that of India Infoline. I could not relate to the set-up of the Vashi branch with the Malad Head Office. The concerned person was trained for HNI clients, but since he could not disregard a customer, he did try to help me with the same (I was not a HNI client). He provided assistance by making me interact with the concern person who specialized in my nature of query. At a point I thought I was caught, and that he was entertaining me just for the heck of it. But my doubt was cleared when the same evening he called and apologised for lack of attention as he was pre-occupied and unable to help solve my query better. He offered me the coaching by his colleague, who could come on his behalf and explain me the needful. I interacted with his colleague the next day, wherein the information received was insignificant. What was important to note was the attitude they carried towards customers. The assistance provided by Religare is for the HNI, not really the novice who would be interested and can not invest much at the given point of time. (annexure)

After over an hour at Religare, I left for ICICIDirect, which is located near Goregaon Station. The layout is similar to the other ICICI branches, but it was relatively vacant. The concern person on desk did not have much idea about the product features in depth. The entire process finished off in 15 mins, wherein I got to see a product demo, and live features. Not much in terms of what I had received in my interactions with the other players. I collected a brochure and necessary customer care numbers from there and left for Bonanza Online.

At Bonanza Online I interacted with an assistant of one of the relationship managers, who briefed me on the product and the other necessary details. She was carrying a brochure and the necessary documents when she did that. Since the conference was occupied, I was at the reception desk for the entire tenure. The meeting lasted for about 45 mins or so. It was my last interaction for the day.

I wanted to visit an office of Angel Broking, located in Andheri, but it was over 6.30pm, by the time I left Bonanza. Hence, I called up the office, where I left my contact details.

For Motilal Oswal, was another episode by itself, where I met the concerned representative, while on my way to Religare at the station and happened to have a random conversation with him. He provided me with his card for the same.

I visited his concerned branch on the next day and called him as he was unavailable. He directed me to another colleague, who passed me to a management trainee. As a trainee he tried his best to help me. He showed me the product demo and the other necessary details. The session lasted the normal 30 45mins. After and during which, the representative I had met in Malad, called twice to check how was I taken care of. He did hint disapproval at a management trainee dealing with me, which indicated his concern to convert me as a customer than otherwise.

For the rest of the players including Angel Broking, namely, ICICIDirect, IDBI PaisaBuilder, Indiabulls, HDFC Securities, Dawnayday AV Securities Pvt Ltd, Geojit, Kotak Securities & Major Gainz (Prabhudas Lilladhar (P) Ltd), NetworthStock, UTI were taken over the phone, either by calling up a branch, or the customer care centre. The minimum time over the phone interview lasted was 30 mins. Sometimes, it would extend to almost an hour as the customer care representative would put me on hold to collect or verify the necessary information. There were occasions when on calling up a particular branch, the concerned person would keep forwarding the call to some other person. On one such occasion, my call was transferred to over 4 people with each one not ready to talk or explain. Guised like a customer it was an irritating treatment to come across. But as an researcher, it threw a lot of light on the situation of the service quality and customer management.

The interaction over the telephone with an ICICIDirect representative was an interesting one. I had called at their office after 6.00pm. The representatives had very little knowledge about the product. The situation was as such that they told me that they have still not finished training, which was scheduled for the next day. Even when I mentioned that I might not look at ICICIDirect as a potential firm for my investment for this behavior, if there was no one to revert on the day, they did not mind loosing a customer, they were more keen on closing the conversation and closing for the day. They did make a small effort, but they were not enthusiastic to have a client in their wing.

Thus, on an average, personal visit or over the phone, I managed to cover only 3 players per day. It was difficult to increase the number of people. The personal visits gave me a taste of the set-up/ layouts in a broking/ financial company. I made it a point to halt at a place note down my details & observations on my questionnaire format. The telephonic conversation helped me understand the customer care/ management aspects of those companies.

Once I had benchmarked the products in the industry on various variables. (refer Annex). The entire process took about 15 days, after which, I was assigned communication & branding tasks relating to the project.

Amidst this, I had conducted a small interview with people who trade in the market. The sample was too small to add up to any conclusions, considering the dimensions where the product is projected to launch amongst. The construction of the questionnaire was not up to the mark and later discarded.

Yet, the few responses received threw a lot of insight on how an investor thinks, and why he would opt for offline trading over online trading or vice versa. The sample with which I interacted was about 10 individuals. A sample question format is enclosed in the annexure.

Obtaining information from the internal customers of was a continuous process over my entire tenure in Way2Wealth. Most of the information obtained was either by observation, colleagues & my mentor, who would brief me up on the entire organization related basics. Interacting with the branch managers also provided insight on how the organization functions to an extent. The final touch came in when I interacted with the top management of Way2Wealth. The interaction with them provided me a wider view on how the management envisions its strategy & programs, while I also had a first-hand experience to the results in the regional office (earlier corporate office) I was working in.

When interacting, I was looking at the communication gap, which could be existing between any of the levels of the organization, apart from the questions related to strategy, organization, markets, future plans etc. The questions asked were more or less the same. They varied a little for the HR Head, as his domain of was specific to the Human Resource of Way2Wealth. The management was generous with their time despite their busy schedules. There is no place where any direct answers have been put up. The answers conjured up come as a part of my reflection of the entire data on the whole.

Last, but not the least, the cross-sectional variable, CNBCTV-18, was analysed entirely externally. There was no direct contact with the organization, apart from one small interaction, which I had during an advertisement related activity with moneycontrol.com. The other source of information which I received on them was merely by observing their plans & new ventures online or on television (which was always running on CNBC-18, in my office hours). The reason why I choose it, is that I was once hinted by my mentor that it is planning to come out with a online trading product, which would shake up the entire industry. Assuming that it is not directly involved into the trading business apart from the media expertise, the steps and patterns which I observed later drew me further into it.

3.1 Results

The results were analysed in a SWOT like matrix judging the internal and external factors, the trade-off to which is the recommendation section. The variables selected were further divided into Porters Five Forces of Competition. Viz

1) New Entrants

2) Intensity of Rivalry among players

3) Threat of Substitutes

4) Bargaining power of Sellers

5) Bargaining power of Buyers

The first three have been discussed in detail on later pages, broadly as internal, external and cross-sectional players.

Bargaining Power of Buyers & Sellers:

There are a large number of players in the industry, specializing in region, product, and type of client. But, these diverse sets of sellers, when put together do not hold a commanding position.

Some 6 months ago, this could have been the scenario as everyone wanted to dip in the rising waters of the stock market. But in the last few weeks the drop has been so tremendous, ignore fresh customer conversion, even customer maintenance is becoming a challenging question for the industry. Now, the pressure to perform is even greater. These market conditions are predicted to prolong till the next few months or at least till the new government comes into place.

The scenario is as such, that the buyers are holding an upper hand. Though there is such a high market potential, it can not be tapped at this point as the entire industry is at its lows.

Every seller is playing with the numbers, while there are some who are positioning their product as superior and charging for the same. The amusing thing is that people are ready to pay for those products/ services, which are otherwise being provided complementarily eg. Advisory, newsletters etc. Thus, on the surface it appears that customers value what they pay for.

A mass affluent class member can be described as an individual who is earning, and has the money but needs guidance. He neither has time for personal involvement nor would he have similar amounts to invest like that an HNI.

This client is interested in being a part of the market. Most of the people are either trying to pull the base market or upper market, ignoring this huge bracket, with unsatisfied needs. Security will not be a primary concern to this client as he is educated enough to know that these basic criterion of transactions/ processes are looked after by SEBI.

Before commenting on the data on other players, I would first like to introduce the organization, under whom I did my entire research. It is in the context to Way2Wealth, that the recommendations will be given in the end.

For the competitive market analysis, a brief is given on all the external players, namely, international players & Indian players, followed by the cross-sectional study on CNBC-18.

Internal Environment Analysis

Introduction

Way2Wealth is one of Indias premier Investment Consultancy Firm, launched with the aim of making investing simpler, more understandable and profitable for the investors. Way2Wealth brings a wide range of product offerings from Equity and Derivatives (NSE), Fixed Income Securities, Insurance (Life & Non-Life), Mutual Funds to Portfolio Management Services for the convenience and benefit of it customers. Way2Wealth today has over 60 easily accessible Investment Outlets spread across 25 major towns and cities in India. It also has another 25 franschisee outlets

Our Mission

"to be the pre-eminent destination for personalised financial solutions helping individuals create wealth".

Our Philosophy

We believe that "our knowledge combined with our investors trust and involvement will lead to the growth of wealth and make it an exciting experience".

Our Logo

Blue symbolizes Knowledge. Knowledge is limitless, so is the sky and sea, both of which are blue in colour. Knowledge applied leads to creation of wealth for our Investors.

Red symbolizes Trust.Red is the color of blood and the heart. Trust is a matter of the heart. Our knowledge bears fruit only when the investor places his Trust in us.

Yellow symbolizes Excitement and Involvement of the investor. We strive to make investing an exciting and involving experience for our investors.

Green symbolizes Growth. Growth in Nature is visible in the form of plants and trees; all of which are green.

Knowledge, Trust and Excitement should ultimately lead to Growth of the investors wealth.

Our Heritage

Sivan Securities started in 1984, has a long and illustrious track record of being amongst the premier Financial Intermediaries in the country as well as being an incubator for IT start-up firms.

The Venture Capital division came to be known as Global Technology Ventures -GTV and the Financial Intermediary Division was spun off as Way2Wealth in the year 2000.

Over the years, Way2Wealth has developed a strong reputation for navigating its investors through all the ups and downs in the market. Way2Wealth has inherited these same values in addition to a base of 100,000 individual customers, over 500 corporate/institutional clients.

Our Group Companies

Global Technology Ventures GTV, has provided venture capital to companies such as Kshema Technologies, MindTree, Ivega etc.

Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL), Indias largest coffee conglomerate and coffee exporter, pioneering Indias first concept cafs Caf Coffee Day, a chain of youth hangout coffee parlors. From a handful of cafs in six cites in the first 5 years, Caf Coffee Day has tday become Indias largest and premier retail chain of cafes with 483 cafes in 84 cities around the country.

The Visionary

Mr. V.G. Siddhartha Chairman

He is the visionary behind Way2Wealth and the founder of Sivan Securities. He has been involved in the Indian Capital Markets since 1984. During his early years of his work-life he has spent valuable years with J.M. Morgan Stanley. This experience stood him in good stead when he became a successful investor. Having a Masters in Economics from Mangalore University, he is an avid reader and traveller with a yen for creating companies and brands.

Mr Siddharthas business interests spreads across Coffee retailing, Plantations, Real estate, Venture Capital and Financial Services

GTV today a Billion$ company, partners with exceptional entrepreneurs, who have a gut for the original, and are passionately dedicated to building category-leading tech companies. Investing in technology ventures across all stages, GTV provides access to capital and resources to companies with global market leadership potential

Took over Sivan Securities Ltd, in 1984

Founded the Amalgamated Bean Coffee Trading Company Limited ABCTCL, in 1994.

Indias largest coffee conglomerate and coffee exporter

Largest exporter of green coffee from India

One of the two fully integrated coffee companies of Asia, involved in all sectors of Coffee from plantations to retailing to exports Pioneered the caf concept in India in 1996 with Caf Coffee Day, popularly know as CCD

Chain of youth hangout coffee parlors

Founded Global Technology Ventures in 2000 - a company that identifies, invests and mentors companies engaged in cutting edge technologies.

Founded the real estate company Tanling, develops world-class infrastructural facilities for Technology enterprises.

Global Village on the outskirts of Bangalore, housing companies like EDS, Mindtree,

TechBay on the oceanfront at Mangalore

Some of his large investments include: Mindtree, Kshema Technolgies, I-Vega Consulting

Accolades

Caf Coffee Day today is Indias largest retail chain of cafes.

V.G. Siddhartha is awarded the Entrepreneur of the year 2003 by The Economic Times for crafting a successful pan Indian brand for a commodity business and giving Indian consumers a new lifestyle experience that is within reach of the common man.

Amalgamated Bean Coffee Trading Company Ltd. today is the largest exporter of green coffee from India and perhaps one of the two fully integrated coffee companies of Asia, involved in all sectors of Coffee from plantations to retailing to exports.

Coffee Day Group today is the only fully integrated and largest coffee conglomerate in India and is attributed with creating the coffee revolution in India - acknowledged by the Coffee Board of India

And now, he is actively involved with Way2Wealth and committed in realizing its vision of making way2wealth 'set new standards in the retail financial services in India'.

Our Management Way2Wealth has a very credible management team, who have well over 100 man-years of experience amongst themselves. Top quality management with over 100 man-years of cumulative experience in the field.

A strong leadership, respected within industry circles and recognised among competitors as being formidable and strong, demonstrates high quality and a visionary management style.

Mr. M R Shashibhushan - Chief Executive Officer

Shashibhushan, age 39, has over 18 years of experience in various areas of the Capital markets. He has done his Diploma in Systems Analysis, during his professional tenure has completed the Professional Membership Programme of the Bangalore Stock Exchange, has undergone the Executive Education Programme at IIM Bangalore and the Corporate Leadership Programme at Orix Corporation Tokyo, Japan to name a few.

In his last assignment with IL&FS Investsmart Ltd. for over 9 years, he started as Head - Retail Business (Karnataka Region) and subsequently moved to its Corporate Office in Mumbai to head their Retail Equities Business, which included the Branch Network, Alternate Channels, Private Clients Group and Investments Advisory. He started his career with M/s Ravi Associates in their Equity Trading desk, during his career he has been entrusted and has made significant contributions in various functional areas of Investment Advisory, Portfolio Management, Distribution of Financial products etc. with Kotak Securities and Escort Securities, where he also set up their Secondary Market desk.

Currently as CEO -Way2Wealth, he is in-charge of strategic planning. Renowned for turn around, he is deploying his vast experiencein charting the way forward for way2wealth - a name to reckon in the India financial space.

Mr. Ketan Sheth Director (Research)

Ketan is on the Board of Way2Wealth Securities Private Limited. A postgraduate and ICWA by qualification, he has nearly 2 decades of experience in the Capital Markets. He has earlier held responsible positions in JM Financials and FICOM.

Throughout his career, Mr.Sheth has focused on research primarily in the equity market and has also been associated with Corporate Database, a pioneering equity research based firm since its inception.

25+ years of experience in the Indian capital markets

A Post Graduate with specialisation in Management and a member of ICWA

Director of Research and drives the Portfolio Management Services desk

Known in the markets for his astute stock-picking ability.

Sunil Ramrakhiani - Chief Operating Officer

Sunil, age 35, has over 11 years of professional experience across diversified asset class; Commodities, Equity, FX markets and Treasury management. He is a BE (Mechanical) and a management graduate from ICFAI Business School. He is one of the earliest base metal and equity derivatives traders in the country and has been founding team members of national level commodity exchange.

In his last assignment, Sunil has been instrumental in setting up the Commodities business at IL&FS Investsmart, which helped the company achieve leadership position in a few commodity segments. Prior to which he was associated with ICICI Bank Treasury in the Global Markets and Corporate Markets Advisory group in Equities, FX and Commodities.

He was also deputed from ICICI Bank as a founding team member to conceptualise and roll out the National Commodity and Derivative Exchange (NCDEX). In his career Sunil has been associated with various broking and financial houses in various functions, to name a few: Weldcraft, SWIL Ltd, Rudolf Wolff, etc.

Sunil is actively involved with the Commodity exchanges and Regulators for development of the commodity derivatives market in India. He is a member of CII Committee for Commodities Market & Product Committee on Exchanges. He has been regular speaker on International derivatives conferences

Currently as COO - Way2Wealth, he would be driving business strategy and is in-charge for trading products, including equities and derivatives in the equities and commodities markets.

Hutaib Bandukwala AVP Marketing, Communications & Service Quality

Hutaib, age 32, has over 8 years of professional experience across brand management, communications & channel development activities. He has done his MBA in Marketing from Chetna Institute of Management, Mumbai.

Apart from being a certified trainer, he has also undertaking courses and programs like Larry Grants Workshop on Account Planning/ Advertising Strategy, Personal Development Workshops: Managerial Effectiveness, Interpersonal Skills and Effective Communication, Train The Trainer etc.

He began his career with IL&FS (E*Trade USA), implementing, co-ordinating and managing the internal & external communications. In his previous assignment with ICICI Bank, designated as Head Product Manager (Alternate Channels to Banking), he specializes in product/ process development solutions, channel migration, corporate representing content management, training & conducting training sessions apart from studying and benchmarking vis--vis competition.

Keeping track of the Financial Industry, his favourite past time includes dabbling in Stock Markets along with his enthusiasm for nurturing sports.

Currently as AVP Marketing, Communications & Service Quality -Way2Wealth, he is in-charge of offline & online responsibilities, communication within and from the organization, along with maintaining PAN India service standards.

Our Products & Services:

Services and solutions that cater to the retail and institutional investors at large that encompass primary and secondary market instruments:

1. Equity Trading

2. Derivatives Trading

3. Commodities Trading

4. Distribution Services: IPOs, Mutual Funds and Fixed Income products

5. Advisory services: Asset Allocation Planning and End to end personalised investment management services for Wealth Generation, Retirement Planning and Capital Build up at different stages of life.

6. Wealth Management Services: Portfolio Management Services

7. Online Services & Tools - Online Trading, Portfolio tracking in-depth research reports and much more.

8. Insurance Marketing Life and Non-Life Plans

9. In-house Research & Analytics Depository Services

10. Tax planning

Organizational Structure:

Way2Wealth is Head Quartered at Bangalore. It directs the Corporate Offices in the various major cities of India. Their regions can be broadly stated as Karnataka, Andhra Pradesh, Tamil Nadu, Mumbai & Delhi.

The corporate offices of these regions, manage the regional offices under them, depending on the density of branches & franchisee network in that region. It has more than 80 investment outlets in more than 25 major cities and towns.

Predominantly a south-based fan following, it is now moving north.

Way2Wealth is one of the dream children, which Mr. Siddhartha due to his other pre-occupations, was unable to nurture to the fullest, keeping its scope limited to the southern region.

The management was revamped and a new life was enthused about 8 months back, by bringing in an entirely new team of industry experts to speedup up the tiger once again.

The expertise of this management is evident not only in the profile which describes them, but the activities undertaken by them. Within a span of 8 months, they have increased their clientele by over 100%.

On the other hand, the employees have been increased from 375 to over 800 in the same time-frame, while it is still acquiring newer & newer employees.

These statistics are noteworthy, when the financial industry is at its lows & expected to sink further in the short-term.

It proudly states & nurtures their man power is their real strength, which makes it an exceptional organization over competition.

Planning for the long term, not only are they acquiring newer and newer employees, but are adding more strength to the organization by revamping the structures and setting in more futuristic processes.

With growth, they are ensuring transparency. The best example for which is the EMPOWER, a process software, which helps increase transparency as the company is growing in leaps and bounds. It is an open forum, where the employees can communicate with each other, between all departments, and any levels without any intermediary affecting the communication.

Apart from that, changes have been brought in the appraisal system eg. Earlier the appraisal points/ benefits were given only to the employee who introduced the client. Now it has been broken down on 3 levels introducer, converter & maintainer; which motivate the employees to bring in more business and makes them believe to be a part of the organizations success.

The management strongly believes in putting in processes, such that the organization can function without the leaders. The structures have been designed such that their own set of flexibility to motivate and nurture the growth of the organization as & when required.

The organization has been client-centric rather than profit centric. It is now looking at avenues to serve a larger segment of the ignored population. They encourage the HNI (High Net-worth Individuals) as well as the lowest income level masses. But they are more concentrated on the individuals generally termed as the middle class, who wish to invest but due to lack of guidance and demanding work pressures are unable to do so.

It is to serve the needs of this segment, who have largely been ignored, Way2Wealth is creating more and more facilities. It is also looking at institutional business as a future avenue. It may appear like a niche, but it is these masses which they are concentrating on.

Product Structure:

Way2Wealth is deeply penetrated into Retail Offerings, while it is working on the Institutional Verticals.

Broadly, their business is a Retail Business unit. Under the Retail segment, they have 4 major verticals, namely, Trading, Distribution, Portfolio Management & Advisory.

Trading includes equity, derivatives & commodities. At present it is an offline expert, soon moving into the online business as well.

Distribution consists of third party products, like IPOs, Mutual Funds, Insurance. It has acquired various awards, from the AMCs for their performance in this vertical.

Portfolio Management Service (PMS) is another structure, which is a much deeper and focused version of Mutual funds. It concentrates exclusively on the client needs by reducing the risk and maintaining & increasing gains of the customer.

Advisory, though has been put as a separate vertical, it is the core foundation of Way2Wealth. It is a pillar on its own, while it supports the other verticals with its expertise. Advisory otherwise is provided for activities like buy & sell, tax planning & risk profiling as well.

A sought out output of the Advisory Cell is the monthly investors magazine, Wealth Compass. It encompasses all the current happenings, and the news of the month into a compact analytical format in reader-friendly language. (refer annex)

Unique Investment Outlets

Way2Wealth Investment outlets are designed to be places where retail investors can come in touch with Investment opportunities in an atmosphere of convenience and comfort. The look and feel of the offices across India projects a consistent branch image for the company. The features that enable a unique facility for retailing financial services include among others:

Easily visible branches set up in the commercial spaces of potential investment zones ranging between 750sft to 1000sft

Most branches are located in the ground floor sporting huge glass frontage promoting easy accessibility and reflecting our attitude of complete transparency.

The major portion of the branch area dedicated for customer use. The furniture is in CKD formats to add flexibility in using the branch for Investors purposes.

Connectivity to NSE for trading facilities.

TV and other electronic mediums to facilitate real time update and dissemination of information to our customers.

Each branch comprises of trained and qualified Investment advisors to take care of the needs of the customers.

Research Desk

Research is at the core of our advice. We believe that sound investment decisions are made on sound analysis of facts, past performance and credible market information. Our research cell focuses on providing data and analysis to help customers make sound investment decisions.

The Research cell is managed by a highly qualified team that is handpicked and trained extensively in the proprietary Way2Wealth Investment Philosophy centered on finding the best investment solutions for our customers. Based in the commercial capital, enables the team to have a pulse of the trends allowing dissemination of the most up-to-date and latest information.

The Way2Wealth research cell measures up to international standards of technology and on-site resources.

The Way2Wealth Planner Your Personal Investment Guide

Every investor has unique needs. So we have created a wide range of services, where you will always find exactly what you are looking for. Aiding you in this effort is the quintessential Way2Wealth Investment Planner. These hand-selected planners are made up of professionals with the expertise and experience to meet your unique financial needs. These financial planners reflect our commitment to provide financial advice based solely on your objectives without traditional conflicts of interest.

When you choose a planner from the Way2Wealth network, youll get professional help in the following areas:

Personalized Investment plan for your short term, medium term and long term goals

Expert advice on Investment products ranging from the Fixed Return Investments and Life Insurance to the highly volatile Shares and Derivatives

Avail Tax saving, Retirement planning and VRS investment services

Facilitate Equity, Derivative and Commodities trading, Initial Public offerings (IPO) of Companies, Mutual funds and Make investments Government of India/Infrastructure Bonds

We also have a specialized team catering to the distinct needs of our Corporate and Institutional clients out of our five regional offices.

The Way2Wealth advantage!

Personalised Investment Solutions: All our customers receive individual attention

Full choice of Investments: Mutual funds, Life Insurance, Fixed Income Instruments, Equity and Derivatives

Processing support: We take care of all your paper work and provide service at your doorstep.

Investor eligibility criteria: Customers with a minimum investment amount as low as Rs. 5000 per month can avail of our services.

This unique Way2Wealth concept can be easily experienced through the innovative and customer friendly network of 80 Investment outlets that spans 25 major towns and cities in the country (and still growing). In addition to the national branch infrastructure, Way2Wealth also has an online presence to enhance its value proposition to its customers.

Established Brand 20+ years in the financial services industry

Rich pedigree - part of the billion$ Global Technology Ventures (GTV) group

Top quality management having a combined experience of 100+ years in the financial services industry

Network of 60 full service branches covering 25 Indian cities/ towns

Reputed Research Desk for Fundamental & Technical analysis

Structured product offering for HNI & Corporate clients

100,000+ client acquaintances (30,000+ satisfied retail relationships)

Over 3000+ channels partners

750+ wealth managers across the country

Dedicated PEG & PCG Desk for servicing HNI clients

Exclusive Corporate Advisory Desk catering to key corporate clients

Management View:

The opportunity to interact with the management threw a lot of light on the Vision & Mission set to be achieved. There is profound consistency in the minds of the top management about goals set to be achieved.

My knowledge about Way2Wealth, was limited to the Regional Office at Nariman Point. The interaction with the top management gave me a great insight on not only the minds of the employees but the management as well.

It was difficult for me to ignore the tremendous energy and passion the management team carries & inspires. It does reflect volumes on the results anticipated by the visionary who brought them together.

The top management is endowed with an inner strength, agility, clarity of thought and the ability to know & do as in the mind of other team members. Their age in years brings in the energy & flamboyance, while their years in experience not only brings in but reflects their expertise, for the position they hold.

Above that, there is an increasing level of transparency along with the re-freshed systems/ processes which are being put into place, gradually.

Where, Mr. Shashi Bhushan, knows his target and hits it with precision; Mr.Sunil Ramrakhiani is an expert with the inner intricacies of the business supplemented with his tacit inspection of the external environment. Where Mr. Hutaib Bandukwala is manoeuvring the messages sent out of the organization to suit & reach the desired goals; Mr. Gentil Augustine & his HR team is proficient in understanding & building the real strength of Way2Wealth Human Resource, nullifying the negative impact of the restructuring; together building a team and setting in a more dynamic work-culture.

Our Key Offices

Registered OfficeCorporate Office

Raheja Paramount,138, Residency Road,Bangalore 560025KarnatakaIndiaPh: (080) 2212 15124072-75, 4th Floor, B-Wing, Oberoi Gardens Estate,Off. Chandivli Farms Road,Chandivli, Andheri (E).Mumbai - 400 072.Ph : (022) - 4084 3900.

External Environment Analysis

International

Players

Established with a core purpose to help everyone be financially fit, such powerful words come from one of the most popular online trading portals - Charles Schwab. For the market frequenters it is no new name.

Headquartered in San Francisco, Charles Schwab and Co., Inc.was launched in 1973 andbegan offering discountbrokerage on May 1, 1975. The Charles Schwab Corporation was incorporated in 1986 and conducted its initial public offering in 1987.

The Charles Schwab Corporation provides securities brokerage and financial services to individual investors and the independent investment advisors who work with them.

It boasts of a client account of 7.2 million client brokerage accounts, 1.3 million corporate retirement plan participants & 344,000 banking accounts.

Corporate Structure

Through its operating subsidiaries, The Charles Schwab Corporation (Nasdaq:SCHW) provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent financial advisors.

The corporation includes three primary business segments:

Schwab Investor Servicesserves millions ofindividual investors, savers and borrowers through the schwab.com website, phone services and more than 300 U.S.branch offices, plus international and multicultural services.Schwab Institutional

provides custodial, operational and tradingservices formore than 5,000 independent investment advisors.

Schwab Corporate & Retirement Services

administers retirement plans, equity compensation plans and other services for companies of all sizes.

Head Quarters

Schwab Corporate Headquarters 101 Montgomery StreetSan Francisco, CA 94104

BusinessesCharles Schwab offers financial products and services tailored to fit the needs of individual investors, independent investment advisors and companies of all sizes.

For Individuals and Families

Investing: Clients with aSchwab One brokerage account can trade stocks, bonds, options, mutual funds and other securities.

Advice & Consultations: Either at a local branch or through our toll-free phone line, investors can receive fact-based guidance from an experienced Schwab investment professional

For Employers

Schwab helps companies of all sizes manage their retirement plans, stock plans and executive services.

Banking & Lending:

Schwab Bank offers the High Yield Investor Checking bank account plus credit cards and other lending products.

Millions of people worldwide rely on E*trade for an unbeatable combination of value, Ease & security. It is a pioneer in online financial services for 25 years. Over 4.8 million accounts in 40+ countries. $174 billion in customer assets.

E*TRADE FINANCIAL Corporate Services helps stock plan professionals navigate the challenges of plan administration and compliance, while helping employees understand and access their stock benefits. That's why over 2,000 companiesincluding half the S&P 500 and one-third of the Fortune 1000rely on us to manage stock plans for more than a million employees in over 100 countries.

Their other businesses include, Banking, Global Trading (6 markets& local currencies, stock plan outsourcing (Full-service administration of company stock plans.), equity edge (Powerful and flexible software for stock plan administration, compliance, and reporting) and employee stock plans service (Easy-to-use transaction service that empowers your employees to take control of their stock plan benefits).

Their products & services include:

Full-Service Stock Plan Outsourcing

Our stock plan outsourcing group provides a total solution for companies seeking a trusted business partner to handle plan administration. Our team of equity compensation experts manages everything from basic option grants and restricted stock awards to more complex requirements like swaps and dividend reinvestment plans.

Powerful Software for Stock Plan Administrators

Equity Edge is our advanced stock plan management and reporting software that gives you maximum control over your company's equity compensation program. Designed to work with your existing HR and payroll systems, Equity Edge offers the power and flexibility you need to manage stock options, stock purchase plans, restricted stock, stock valuation, and insider reporting.

Flexibility and Choice for Employees Worldwide

Our employee stock plans service gives your employees everything they need to view their stock plan accounts, exercise options, and sell shares. Employees can manage their stock benefits and make transactions online, via a toll-free automated phone system, or by calling an expert financial service associate. And we offer exclusive savings on banking, brokerage, and lending services via our Advantage@Work program.

Premium Service for Officers, Insiders & Executives

Our executive services program is designed to meet the special needs of officers, insiders, directors, and other executive employees. An elite team of senior brokers and relationship managers provides personalized, expedited support for trades, transfers, and other transactions, as well as handling inquiries related to Section 16, Rule 144, and other complex regulations.

Professional Services That Maximize ROI

Our professional services organization offers a range of technical and professional services that help you get the most out of your stock plan solution.

Innovative Solutions for Pre-IPO Companies

We offer an emerging companies program to address the unique challenges of stock plan administration at privately held, pre-IPO companies.

Indian Competitive Scenario

(Players)

ANGEL GROUP COMPANIES

Angel Broking Ltd. (1997)

Member on the BSE and Depository Participant with CDSL

Angel Capital & Debt Market Ltd. (1998)

Membership on the NSE Cash and Futures & Options Segment

Angel Commodities Broking Ltd. (2004)

Member on the NCDEX & MCX

Angel Securities Ltd.

Member on the BSE

Incorporated in 1987, it has memberships on BSE, NSE and the two leading commodity exchanges in India i.e. NCDEX & MCX. Angel is also registered as a depository participant with CDSL. It commenced services like PMS, Mutual Funds & IPOs in 2006

Angel emphasizes its customer-oriented innovative solutions in form of focused research or state of the art technology or customized product offering or personalized touch to our services. Angel also claims to be the only 100% retail stock broking house offering a gamut of retail centric services like,

Ebroking Commodities Trading

Investment Advisory IPO

Portfolio Management Services Private Client Groups

Wealth Management Services Depository Services

It emphasizes its self as a retail financial service provider. Online Trading

Angel offers four platforms for trading, namely:

Other Recent feature(s) Provided Are:

M-Connect

Access Market News / Analyses 24x7 on Mobile

Angel Clients will have the advantage to access their Back-Office data on Mobile Phone

Real time Equity, F&O, Commodities and Mutual Funds rates on a single platform.

User-friendly interface for easy navigation

Stock Updates and Market Stats on your Mobile

Set Watchlist for Equity, F/O and Commodity and track your favorite stocks.

Easy & free to download

View Top 10 Local and Global indices

They are a company with 20 years of business experience. Their promoter & Chairman, Mr. Asit C. Mehta, has over 25 years of business experience in the finance industry. Their promoter & Managing Director, Mrs. Deena A. Mehta, has a hands-on experience and had also been associated with various reforms process initiated by SEBI, BSE & several institutions related to capital markets.

The biggest strength of the group is to convert business vision and investor service ideas into technological solutions delivered to the investor service ideas into technological solutions delivered to the investors through a private VSAT network. It has a network of over 300 professionals.

Asit C Mehta Investment Intermediates Ltd, has a complete array of products. Trading is possible on both national level exchanges, vis BSE & NSE, in cash as well as derivatives. Offline trading through their authorized Business Associates, Online trading through their web page investmentz.com. Alternative avenues of investing are IPOs. They can also apply for the same on behalf of the client. They also provide advisory services through their group company Nucleus Netsoft & GIS (India) Ltd., which is a SEBI approved portfolio manager.

They also have a membership with NCDEX & MCX. They provide investment assistance to NRIs as well.

Ever since its inception in the year 1994, BONANZA, has been at the helm of providing its clients the finest investment & financial service. Today, they serve more than 1,00,000 clients comprising of Financial Institutions, Corporates, Mutual Funds, HNI & Retail Investors. Their network comprises over 550 business locations spread across 260 cities in India.

Their product/ service range includes:

1. E-broking

2. Distribution

3. PMS

4. Depository Services

5. Brokerage Services Equities, Deivatives, Commodities

6. Mutual Funds

7. IPO

8. Insurance

Dawnay Day AV is an innovative financial services provider and advisory firm, formed through a joint venture between Dawnay, Day International and Alok Vajpeyi.

With an unrelenting focus on our twin values of Integrity and Client First" Policy, Dawnay Day AV provides advisory services to individuals and institutional clients in India and abroad.

Dawnay, Day was originally established as an issuing house in 1928 in London, England. Dawnay, Day was acquired by its current owners, Guy Naggar and Peter Klimt in the early 1980s. Currently, The Dawnay, Day Group conducts business in three broad spheres of operation - Property Investments, Principal Investments and Financial Services. The Firm has gross assets in excess $4 billion and a net worth that is greater than $1.5 billion.

The Firms jointly owned Financial Services companies include corporate and structured finance companies, asset management companies, securities brokerage companies, and property-related advisory services.

Working through our subsidiary companies and affiliates, we deliver high-quality, specialized investment and advisory services to individuals and institutional clients in Europe, Middle East, and India.

Dawnay Day AV Securities Private Limited is a full-service financial services provider and advisory firm. Their other offerings include:

1) Equity, 2) Online trading portal,

3) Derivative, 4) Private equity,

5) Depository & Trading account, 6) Real estate,

7) Advisory, 8) Insurance, and

9) NRI Clients10) Corporate finance

11) FII

Incorporated in 1987, Geojit is one of the major stock broker based in India. Geojit provide stock trading at NSE and BSE stock exchanges. Geojit provide it's Stock Broker Services through a strong network of around 300 branches and its state of art online trading portal. Geojit also provides a Call & Trade facility.

They are a prominent name in Kerala. Geojit is a stock market listed company and its stock are traded at NSE (GEOJIT) and BSE (532285).

They offer trading in both NSE & BSE.

They offer 3 trading platforms to customers, namely, Silver, Gold & Platinum.

The other products the deal in are:

1. Equity

2. Derivatives

3. Commodity

4. Portfolio Management Services

5. Distribution

6. Margin Funding

7. Mutual Funds

8. Wealth Management Services

9. Banking

HDFC Securities, a trusted financial service provider promoted by HDFC Bank and JP Morgan Partners and their associates, is a leading stock broking company in the country, serving a diverse customer base of institutional and retail investors.

HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment.

Their Other Offerings are:

1) Online Trading for Indian Residents & NRIs

2) Banking

3) IPOs

4) Equity

5) Derivatives

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.

Their core business is banking, which it is able to leverage to its benefit when it comes to client acquisition.

They also offer trading in internal markets. They only provide a web-based platform.

Using ICICIDirect, one can investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard.

Apart from this, the other services they offer are

1) Mutual Funds,

2) Personal Finance

3) Banking

4) Depository Service

5) E-Broking

6) Foreign Markets Investment

INCLUDEPICTURE "http://www.idbipaisabuilder.in/images/Rk2.gif" \* MERGEFORMATINET Idbipaisabuilder.in is a multi purpose online stock trading website from IDBI Capital Market Services Ltd., a leading provider of financial services in India and is a 100% subsidiary of Industrial Development Bank of India (IDBI).

Idbipaisabuilder.in allows investing in equity shares, derivatives (futures & options) mutual funds & IPO's in India Stock Markets. You can buy or sell securities on NSE and BSE Stock exchanges.

Like ICICIDirect, they too are into banking, and are able to provide a in-house 3-in-1 account.

Their other core service is banking.

IL&FS Investsmart Limited (IIL) is one of Indias leading financial services organizations providing individuals and corporates with customised financial management solutions. They are into institutional as well as retail business, one of the financial multiplexes in India. They enjoy a pan-India presence of over 300 offices. It was taken over by E*Trade, now entirely under HSBC.

Retail offerings of IIL seek to cover all financial planning requirements of individuals, which include providing personalised investment management services including planning, advisory, execution and monitoring of the full range of investment services. Broadly the retail services are divided into two broad categories.

Advisory Services: Portfolio Management Services, Mutual Funds, Insurance.

Trading Services: Equities, Derivatives, Commodities, IPOs

Their Institutional services can be broadly categorised as follows:

Merchant Banking - They offer financial advisory and capital-raising services to corporates. They also manage IPOs, Follow-on offerings, Open Offers, Mergers, etc, IILs Merchant Banking business has been growing from strength-to-strength.

Institutional Equity & Debt - They are presently empanelled with more than 100 institutions and service customers across geographies

A latest offering by them would be to trade in the US Markets, using E*Trade as the base.

Indiabulls is Indias leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance.

With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based in