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AResearch ReportOn
Market Research on Commodities FuturesTrading
BYUPENDRA KUMAR
(MBA 2ND SEMESTER)
GUIDE:
Corporate Guide: - Mr. Amit Kumar Singh(Relationship Manager)
Faculty Guide: - Mr. G.K.Deshmukh(Senior Assistance Professor)
Institute of managementPt. rsu Raipur
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ACKNOWLEGDEMENT
First of all I would like to thank NIRMAL BANG Commodities
Ltd, which is a leading organization in commodity trading, for givingus an opportunity to work with them and to do Market Research,
Location Mapping, Cross selling to gain practical knowledge of how a
Commodities company works. Our special obligations to our
corporate guide Mr. AMIT KUMAR SINGH, who has directed us all
the way. He has shared his experience which has helped us to
approach right consumer and generate leads for the company as we
are doing cross selling too and through his guidance only I am able to
attempt this research project.
I like to thank Mr.G.K.DESHMUKH, our faculty guide, who guided us
accordingly where ever needed and was always ready to clear all our
doubts & queries.
I also like to thank our Director Dr.R.P.DAS, who promoted us to do
our Summer Internship Program with NIRMAL BANG Commodities
Ltd. I also like to thank all our faculties who have taught us and have
shared their experience with us which has helped us in doing our
project.
Date:Upendra KUMAR
MBA 2ND Semester
Place: Institute of ManagementPt.Ravishankar, University, Raipur(C.G.)
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TABLE OF CONTENTS
Acknowledgments Abstract Back ground Introduction
1. Problem statement
2. Research Objective
(i) Main purpose
(ii) Purpose of conducting survey
(iii) Scope of study(iv) Research Design of Study(v) Source of Data(vi) Sampling Plan
(vii) Data collection instrument(viii) Collection of data through questionnaires(ix) Organization of field work(x) Limitation of Study
9. Main Texti) Cross selling (A/C opening)ii) Location Mapping
10. Data Analysis and Interpretation
11. Findings ,limitations & Conclusion12. References13. Glossary
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ABSTRACT
This Summer Internship Project is a part of our MS (Marketing)course. We have done a market research on Commodities FuturesTrading. This Market Research has been done on behalf of NIRMALBANG Commodities Ltd. The main focus of this research is to knowthe consumer awareness about commodities trading. My project profilewas divided into three parts. First one was Market Research andsecond one was Location mapping (find out potential market in Raipur)& third part was cross selling (Account opening).This project report will be helpful for one who is looking for potentialmarket in Raipur for commodities business. It will also give information
about consumers awareness level about commodity futures trading.This information will be helpful for one who is thinking of opening anew branch or franchise in Raipur.The following topics have been covered in this market research:
Market research on awareness level of Commodities trading and major
player in commodities business.
Identification of target consumers for its Commodities future trading. Identify new market places. Cross selling of Commodities trading A/C.
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Background:
The researches were Basic and carried out to fulfill the dual
requirements of awareness and to gain a practical exposure of
the market.
All the research was based on Primary data collected via
interviews from respondents through questionnaire and also
depth interviews.
The market research undertaken by us can be
classified as basic research because basic research is the research
aimed at both gaining knowledge and solving a pragmatic problem.
The underlying motive is to increase knowledge about particular
phenomena by testing, elaborating theory without concern for
practical application. Similarly our study was done just to gain an
insight into the awareness level of people for NBCL; identify target
audience for NBCL and get the customer. The research applied was
both for finding the solution of an existing problem and to understand
the behavior of people.
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Introduction
The rapidly advancing technology, particularly theInternet, has drastically changed the social and economic landscapesand every aspect of our daily lives. In the Securities Industry &Futures Commodities, the Internet has facilitated on-line trading,changing the way the market works, as well as the way the investorsaccess the market. Having taken advantage of informationtechnology at an opportune time, India has emerged as a front-running country of on-line trading in the global securities &commodities markets.
On-line trading is broadly defined as a trading mechanism whereinvestors place orders and confirm trading results via electroniccommunication channels, such as the Internet, mobile phones, InIndia, the whole process of securities & commodities transactions,from order placement and routing, order execution, to tradeconfirmation, is fully automated, thus enabling the investors who haveplaced orders to confirm their trading results within few seconds.
1. STATEMENT OF THE PROBLEM
Online future commodities trading involve personal factors,
technical factors, business factors and economic factors. The
interplay of these factors on commodities market requires a deep
study about the pattern process and procedures and performance.
This study is intended to identify the various concepts about online
commodities trading and its way of functioning.
To identify the level of awareness of commodities online
trading.
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To identify the target consumer for online trading of
commodities.
Identify new potential market places in Raipur.
Create awareness among people in commodities markets &
convince them to open A/C.
2. OBJECTIVES OF THE STUDY
My project work programmed was also directed to some particular
targets and the main objectives of the study are as bellow;
To clearly state the awareness level about NIRMAL BANG
commodities.
To gain an Idea of the perception of people about NIRMAL
BANG commodities.
To devise an approach by making people aware of NIRMAL
BANG commodities & convince them to open A/C.
The Main purpose of conducting the Survey for
NBCL
1 To identify the target consumer for commodities business.2 To get a feel of the Customers perception about NIRMAL
BANG commodities services products.3 To find an appropriate communication message for attracting
the people to NIRMAL BANG commodities Ltd.
3. SCOPE OF THE STUDY:
Globalization of the financial market has led to a manifold increase in
investment. New markets have been opened; new instruments have
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been developed; and new services have been launched. Besides, a
number of opportunities and challenges have also been thrown open.
Online Commodities trading is new as compared to Equity market in
India. Mainly three exchanges are involved in online commodities
trading MCX, NCDEX & NMCE.
4. RESEARCH DESIGN OF THE STUDY
The study is based on survey technique. The study consists of
analysis about customers awareness and satisfaction of NIRMAL
BANG commodities Ltd. For the purpose of the study 100 customers
were picked up at random and their views solicited on different
parameters. The methodology adopted includes
Questionnaire
Random sample survey of customers
Discussions with the concerned
Personal interviews and informal discussions were held when I was
doing market research with new customers to ascertain the
awareness and existing consumers satisfaction level. Further
applying simple statistical techniques has processed the data
collected.
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5. SOURCES OF DATA:
Primary data: Questionnaire
Secondary data: Published materials of NIRMAL
BANG such as periodicals, journals, news papers, and
website.
6. SAMPLING PLAN:
Sampling: Since NIRMAL BANG enterprises Ltd have many
segments I selected commodities segment as per my profile to do
market research. 100% coverage was difficult within the limited
period of time. Hence sampling survey method was adopted for
the purpose of the study.
Population: (universe) customers & non consumers of NIRMAL
BANG commodities Ltd.
Sampling size: A sample of hundred was chosen for the purposeof the study. Sample consisted of small investors, large investors
and traders of NBC.
Sampling Methods: Probability sampling requires complete
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knowledge about all sampling units in the universe. Due to time
constraint non-probability sampling was chosen for the study.
Sampling procedure: From large number of customers & non
consumers sample lot were randomly picked up by me.
Field Study: Directly approached respondents (businessmen,
small shopkeepers, physical commodities traders and service
class people).
7. DATA COLLECTION INSTRUMENT
7.1 COLLECTION OF DATA THROUGHQUESTIONNAIRES:
The data collected for the study purpose is through questionnaires.
One hundred customers and non consumer were selected randomly
for the study purpose and then the information revealed from the
customers is analyzed and interpreted in the study.
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7.2 ORGANISATION OF FIELD WORK
Initial field work was done for pre testing tools for data
collection. The data was collected through the direct interaction with
the NBCL customers & non consumers through questionnairesanswered by them. One hundred customers of NBCL were randomly
chosen for the purpose of the study in fafadih Raipur branch.
.
8. LIMITATION OF STUDY
Since sample size is only 100, this is not a true representation ofthe population as a whole.
Since segment wise investors is not available in NBCL this means
consumers are not only investing in commodities they also
investing in equity ,insurance, mutual funds, wealth management
& investment Banking . Hence overall concept is taken for thestudy.
Information is partly based on secondary data and hence the
authenticity of the study can be visualized and is measurable.
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Level of accuracy of the results of research is restricted to the
accuracy level with which the customers have given their answers
and the accuracy level of the answers cannot be predicted.
MAIN TEXT
Cross selling (Account opening)
Account opening was also an important task of my SIP
Profile. Before account opening I had to make clients fully aware &
totally convinced as to how commodities market works for their
investment plan & earning. After that they were ready for fulfilling total
criteria for account opening like
1. PAN card is must
2. Address proof (Voter ID, DL, telephone Bill,
electricity Bill)
3. Bank statement and cancelled cheque.
4. Two photographs
After this the next step was consumer got trading ID number &
through this ID based on the amount of margin money they can trade
in futures commodities market (Metals, Agro-product & energy). If theinvestment is appropriate to get the exposure then client can get two
or more times exposures on different commodities. If the market
condition is favorable then to get exposure is very profitable for the
traders.
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Location Mapping
It is also a very important phenomenon which involves finding
out potential market in Raipur region whether it is nearby or far off.
As far as my location mapping was concerned I focused mainly on
Mandi Market. During this activity I found out .
Area:-
This is known mainly for agro- commodities market.
1) Sadar bazaar:-
We can see everything from a needle to the part of aero plane. But
the area like
Sadar bazaar (jewellery market): in this market there are nearly a
lot of jewellery shops. But they are not interested to do direct
commodities trading. They do not interest the commodity trading, it
means they invest money through the actual business.
2) Moudhapara.Road - this area also seems to be productive.
3) Station road this is a place of mixed market but the traders have
some interest in commodity trading.
4) Ravi Bhavan market- this market is basically known for Wholesale
market of mobile & Stationery Products. Here response level is very
positive.
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5) k. k. Street this is mainly for trader. Customers profiles are not
big and they are small traders & the interest level is normal.
6) Main road Birgaon In this market there are electronic & electrical
shops, mobiles, general stores, shoes, garments etc. We can say
that it is a mixed market for all things. Interest level is very low in
commodities.
7) Shahid chowk Many securities companies are having their
offices here corporate clients & computer shops are in majority, they
are mostly doing trading in equity.
8) GE Road it is located at central part of Raipur city .But the
response is low.
9) Gurudwara Chowk stations Road there are near about 70 shops
in this market. Businessmen are doing well in iron & steel products.
Here response level is good.
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DATA ANALYSIS AND INTERPRETATION
1. Customers preference over other depository services in NIRMAL BANGcommodities Ltd.
Attributes No. of Persons Percentage
Quality Service 50 50
Safety 20 20
Reach 12 12
Vast variety of Service 4 4
Nothing in Particular 14 14
Chart no.1) Percentage of customers preference over other depository services inNBCL.
0
10
20
30
40
50
60
Quality
Service
Safety
Reach
Vast
varietyof
Service
Nothing
in
Particular
CUSTOMER
Interpretation: - From the above statistics it is observed that in the survey 50%customers justify that NBCL is providing quality services as compared to otherdepository services
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3.) Customers awareness of the new services offered by NBCL.
Through
NBCL
News Paper/
Magazines
Broker Agents Others
50 10 8 32 0
50% 10% 8% 32% 0
Chart no.3) Customers awareness of the new services offered by NBCL.
0
10
20
30
40
50
NBCL Brokers Others
customers
Interpretation: - According to the survey 50% customers know the services throughNBCL and 32% through NBCL agents.
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4.) Customers first source of awareness
Through
NBCL
News paper /
Magazines Broker Agents Others
34 12 14 34 6
34% 12% 14% 34% 6%
Chart no.4) Customers first source of awareness
0
5
1015
20
25
30
35
Through NBCL Brokers Others
Customer
Interpretation: - According to the survey the first source of information is NBCLitself and the
Agents.
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5.) Customers satisfaction of the services of NIRMAL BANG commodities Ltd.
SatisfiedMostlySatisfied
NeitherSatisfied /Unsatisfied
MostlyUnsatisfied
Unsatisfied
64 24 10 2 0
64% 24% 10% 2% 0
Chart no.5) Percentage ofcustomers satisfaction of the services of NBCL.
0
10
20
30
40
50
60
70
Satisfied Neither
satisfied/unsatiusfied
unsatisfied
Customer
Interpretation: - According to survey 64% of customers are satisfied with the
services of Nirmal Bang commodities Ltd and 24% are mostly satisfied. Then we can
say that RCL offers quality service that touches customers satisfaction level.
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6.) Customers satisfaction with the trading provided by the NBCL.
SatisfiedMostlySatisfied
NeitherSatisfied/
Unsatisfied
MostlyUnsatisfied
Unsatisfied
52 24 20 4 0
52% 24% 20% 4% 0
Chart no.6) Percentage of customers satisfaction with the trading provided byNBCL.
0
10
20
30
40
50
60
satisfied neither
satisfied/unsatisfied
unsatisfied
Customer
Interpretation: -According to the survey 52% of the customers are satisfied with
the Trading that are conducted by the NBCL. 24% are mostly satisfied. So we can say
that NBCL customers are getting benefit of trading provided by the NBCL and
employees can able to solve the queries of the customers.
7.) Customers satisfaction when dealing with the problems through NBCL.
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Schemes / Services No of Persons Percentage
Frequent reminders are given toNBCL for update of the
information
24 24%
Irregular receipt of Holding /Transaction statements
22 22%
Improper format of Holding /Transaction statements
16 16%
Improper attention given to theenquiries
14 14%
Margin Money Problem 10 10%
Inadequate information 14 14%
Chart no.7) Customers satisfaction when dealing with the problems throughNBCL.
0
5
10
15
20
25
updates statement format enquries margin
money
inadequate
info.
custome
Interpretation: - According to the survey, 24 persons are not satisfied with the
frequent reminders which are given to the NBCL for update the information, 22 persons
are not satisfied with the irregular receipt of holding or transaction statement, 16 persons
are not satisfied with the format of holding or transaction statements, 14 persons are not
satisfied attention given to the enquiries, 10 persons are not satisfied with the margin
money system and 14 persons are not satisfied with the information provided by the
NBCL. So, we can say that these systems demand immediate attention for improvement
8.) Customers preference for NBCL over its competitors
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QualityService
Rates chargedNothing inParticular
Safety Reach
52 10 24 8 6
52% 10% 24% 8% 6%
Chart No.9) Percentage ofcustomers preference for NBCL over its competitors
0
10
20
30
40
50
60
quality
service
rates
charged
nothinmg
in
particular
safety reach
customer
Interpretation: - According to the survey 52% of customers justify their preferences
for NBCL for quality services, 10% for rates charged and 8% for safety. So, we can say
that NBCL provides better quality services than its competitors.
CHAPTER- 4
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FINDINGS, LIMITATIONS & CONCLUSION
4.1 FINDINGS
1 NIRMAL BANG commodities Ltd customers are more satisfiedwith the quality services.Holding securities in electronic form gives some far-reachingadvantages to the investors.
2 NIRMAL BANG enterprises Ltd offers a wide choice of productsfor investing in the stock market & commodities market. Itallows investing in shares, mutual funds and other financialproducts. With NBCL one can manage own de-mat & tradingaccount independently.
3 The depository participant will allow an investor to trade throughany broker of his choice registered with the commoditiesexchanges connected with NCDEX, MCX & NMCE.
4 Investor can do online trading himself only.
5 Transaction details for the traders would be available online..
4.2 LIMITATIONS
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Some customers feel that they should be trained by NBCL for
giving demo of on line commodities trading.
Survey reveals that most of the customers are not aware of theservices of NBCL. I found the normal tendency of the customerwas to prefer Equity as compared to commodities. So NIRMALBANG commodities Ltd should create an awareness of whatexactly is meant by Commodities and explain all other services ofNIRMAL BANG enterprises Ltd.
After getting the printouts of the contract note, dispatch of the
same should be taken place with no delay and this can be cross
verified with the sender (dispatch section).
Customers are facing over crowding, non-availability of telephone
lines, so proper measures should be taken to overcome theseproblems.
The NBCL official should conduct regular seminars on
commodities trading.
World of mouth is very negative because most of the securities
companies mainly focus on equity market and they misguideconsumers because of, lack of knowledge in commodities or lackof Dealership.
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BIBLIOGRAPHY
BIBLIOGRAPHY
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BIBLIOGRAPHY:
1. Marketing management, Philip Kotler
2. Market research management, Naresh Malhotra
3. Kothari C.R. research methodology Second revised edition 2004,
new age international publishers 4835/24
New Delhi 110 002
4. The economic times
5. Daily market commentary, daily research reports on metals & agro
Products of Nirmal bang commodities Ltd., magazines etc.
7. http//wikipedia.org/wiki /
8. www.mcxindia.com
9. www.nirmalbang.com
10. www.ncdex.com11. www.rediff.com
12. www.businessstandard.com
GLOSSARY
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MCX Multi Commodity Exchange
NCDEX National Commodity and Derivative Exchange
NMCE National Multi commodity Exchange
CRN Customer Relationship Number
NBCL NIURMAL BANG Commodities Ltd.
PAN Personal Account Number
NBCL NIRMAL BANG Enterprises Ltd.
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APPENDIX
SCHEDULE
Respected Sir / Madam,
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I am conducting a survey entitled INVESTOR PERCEPTION TOWARDS
MUTUAL FUND - A STUDY IN RAIPUR CITY. I need your help in conducting this study.
Kindly provide me your valuable opinion to fill this schedule. Your information will be kept
confidential and will be exclusively used academic purpose only.
UPENDRA KUMAR
MBA II SEMESTER
INSTITUTE OF
MANAGEMENT
PT. R.S.U. RAIPUR (C.G)
Part 1
Demographic Information
1. NAME: ________________________________
2. ADDRESS: ______________________________
3. PHONE NO: ______________________________
4. Age:
Below 30 years 30 -50 years
50-70 years 70 and above
5. Gender: Male Female
6. Marital status: Married Unmarried
7. Education: undergraduate graduate
Post graduate
7. Occupation: ____________________________
8. Annual Income:
Below Rs: 200,000 Between Rs: 200,000 to Rs: 500,000
Between Rs: 500,000 to Rs: 1,000,000 above Rs: 1,000,000
Part2
Q.1 your preference about depositary service in NIRMAL BANG Commodities Ltd.
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Quality service safety
Reach vast variety of service
Q.2 what is your type of investment.
Small investment long term investment
Traders
Q.3 how you aware about the new service.
Through NBCL news papers/ magazines
Brokers Agents
Other specify
Q.4 what is your first source of awareness.
Through NBCL news paper / magazines
Brokers Agents
Others
Q.5 how you satisfied with the service of NBCL.
Satisfied mostly satisfied
Neither satinfied/unsasfied mostly unsatisfied
Unsatisfied
Q.6 satisfaction with the trading provided by Nirmal bang commodities Ltd.
Satisfied mostly satisfied
Neither satisfied/unsatisfied mostly unsatisfied
Unsatisfied
Q.7 satisfaction about NBCL when you dealing with the problems through NBCL.
Updates statements
Format equipments
Margin money inadequate information
Q.8 how you prefer for Nirmal bang commodity over its competitors.
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Quality service rates charged
Nothing in particular safety
Reach
Thank you!
DATE:
SIGNATURE