Final Project Vikas Verma Fi

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Final Project ReportMarket Research on Commodities Futures Trading

ByVikas Verma

Distribution List

Corporate Guide: - Mr. Santosh Kumar Rout(Branch Manager)

Faculty Guide: - Mr. M.Gurumurthy(ICFAI School of Marketing Studies)

Vikas Verma

ICFAI School of Marketing Studies

Hyderabad (A.P)

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ACKNOWLEGDEMENT

First of all I would like to thank Religare Commodities Ltd, which is a

leading organization in commodity trading, for giving us 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. Santosh Kumar Rout who has directed us all the

way. He has shared his experience which has helped us to approachright 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. M.Gurumurthy, 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. T. R. K Rao, who promoted us to

do our Summer Internship Program with Religare 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.

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Table of Contents

AcknowledgmentsAbstractBack groundIntroduction

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 Interpretation11. Findings & Conclusion12. References13. Glossary

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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 RCL; identify target

audience for RCL 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 the Internet, hasdrasticallychanged the social and economic landscapes and every aspect of ourdaily lives. In the Securities Industry & Futures Commodities, theInternet has facilitated on-line trading, changing the way the marketworks, as well as the way the investors access the market. Havingtaken advantage of information technology at an opportune time,India has emerged as a front-running country of on-line trading in theglobal 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.

1. To identify the level of awareness of commodities online trading.2. To identify the target consumer for online trading of commodities.

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3. Identify new potential market places in Kolkata. 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 Religare

commodities. To gain an Idea of the perception of people about Religare

commodities. To devise an approach by making people aware of Religare

commodities & convince them to open A/C.

The Main purpose of conducting the Survey for RCL

To identify the target consumer for commodities business.

To get a feel of the Customers perception about Religarecommodities services products.

To find an appropriate communication message for attracting

the people to Religare 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

been developed; and new services have been launched. Besides, a

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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 Religare

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 Religare such

as periodicals, journals, news papers, and website.

6.SAMPLING PLAN:

Sampling: Since Religare 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 religare

commodities Ltd.

Sampling size: A sample of hundred was chosen for the purpose

of the study. Sample consisted of small investors, large investors

and traders of RCL.

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 RCL customers & non consumers through questionnaires

answered by them. One hundred customers of RCL were randomly

chosen for the purpose of the study in Kolkata posta mandi branch.

.

8. LIMITATION OF STUDY

Since sample size is only 100, this is not a true representation of

the population as a whole.

Since segment wise investors is not available in RCL 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 the study.

Information is partly based on secondary data and hence the

authenticity of the study can be visualized and is measurable.

Level of accuracy of the results of research is restricted to the accuracy

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condition is favorable then to get exposure is very profitable for the

traders.

Location Mapping

It is also a very important phenomenon which involves finding out

potential market in Kolkata 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 .

1) Posta Area:-

This is known mainly for agro- commodities market. It is not only

biggest market of India but also the biggest commodity market of the

whole South East Asia. Thats why there is a huge potential in this

market.

The main commodities which are being traded are.

Spices-

1. Jeera

2. Cumin (dhania)

3. Garlic

4. Turmeric

5. Chilly

6. Black pepper

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Food grains

1. Rice

2. Wheat

3. Maize

4. Gram

5. Lentil

6. Urad

Edible things

1. Mustard oil

2. Guar

3. Soya oil

4. Sugar

This indicates that this market is capturing 1/3 share of the total

Kolkata mandi market.

2) Burra bazaar

We can see everything from a needle to the part of aero plane. But

the area like

Sona Patti ( jewellery maket) in this market there are nearly about

150 jewellery shops. But they are not interested to do directcommodities trading. They do the commodity trading but from the

back side, it means they invest money through others a/c. Their

perceptions are negative & they consider it as Gambling or

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Fatakaor Dibba business.The main reason behind this is in the

earlier time when they did this trading through local brokers they

incurred a huge loss and right now they are feared off.

3)M.D.Road - this area also seems to be productive.

4)Kalakar Street this is a place of mixed market but the jewelers &

garments sellers have some interest in commodity trading.

5)Old China market- this market is basically known for Wholesalemarket of Stationery Products. Here response level is very positive.

6)Beadon Street this is mainly for leather & plastic goods .

customers profile are not big and they are small traders & the

interest level is normal .

7)Shobha Bazzar In this market there are some electronic &

electrical shops . We can say that it is a mixed market for all things.

Interest level is very low in commodities.

8)Dalhauji here corporate clients are in majority , they are mostly

doing trading in equity .

9)Ultadanga it is located at central part of Kolkata city .But the

response is average.

10)VIP Road- This is an official area. Many securities companies are

having their offices. So the big equity investors are there but they are

not doing well in commodities.

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11) Loha patti there are near about 3000 shops in this market.

Businessmen are doing well in iron & steel products. Here response

level is good.

DATA ANALYSIS AND INTERPRETATION

9.1 Customers preference over other depository services in Religare commoditiesLtd.

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.9.1) Percentage of customers preference over other depository servicesin RCL.

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50%

20%

12%4%

14%

Quality Service Safety Reach

Vast variety of Service Nothing in Particular


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From the above statistics it is observed that in the survey 50% customers justify thatRCL is providing quality services as compared to other depository services

9.2) Different types of investors with RCL.

Small Investors Long term investors Traders

5832

10

Chart no.9.2 ) Percentage of investors with RCL.

The above table shows that out of 100 customers, 58 customers are small investors and

32 customers are long term investors.

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58%32%

10%

Small Investors Long term investors Trades


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9.3) Customers awareness of the new services offered by RCL.

Through RCLNews Paper/Magazines

Broker Agents Others

50 10 8 32 0

50% 10% 8% 32% 0

According to the survey 50% customers know the services through RCL and 32%

through RCL agents.

9.4) Customers first source of awareness

Through RCL News paper /Magazines

Broker Agents Others

34 12 14 34 6

34% 12% 14% 34% 6%

According to the survey the first source of information is RCL itself and the

agents.

9.5) Customers satisfaction of the services of Religare commodities Ltd.

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SatisfiedMostlySatisfied

NeitherSatisfied /Unsatisfied

MostlyUnsatisfied

Unsatisfied

64 24 10 2 0

64% 24% 10% 2% 0

Chart no.9.5) Percentage ofcustomers satisfaction of the services of RCL.

According to survey 64% of customers are satisfied with the services of Religare

commodities Ltd and 24% are mostly satisfied. Then we can say that RCL offers quality

service that touches customers satisfaction level.

9.6) Customers satisfaction with the trading provided by the RCL .

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64%

24%

10%

2%

0%

Satisfied Mostly Satisfied Newither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied


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52%

24%

20%4%

0%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfiede

Unsatisfied

SatisfiedMostlySatisfied

NeitherSatisfied/Unsatisfied

MostlyUnsatisfied

Unsatisfied

52 24 20 4 0

52% 24% 20% 4% 0

Chart no.9.6) Percentage of customers satisfaction with the trading provided byRCL.

According to the survey 52% of the customers are satisfied with the Trading that are

conducted by the RCL. 24% are mostly satisfied. So we can say that RCL customers are

getting benefit of trading provided by the RCL and employees can able to solve the

queries of the customers.

9.8) Customers satisfaction when dealing with the problems through RCL.

Schemes / Services No of Persons Percentage

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Frequent reminders are given toRCL for update of theinformation

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%

According to the survey, 24 persons are not satisfied with the frequent reminders which

are given to the RCL 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 RCL. So, we can say that

these systems demand immediate attention for improvement

9.9) Customers preference for RCL over its competitors

QualityService

Rates chargedNothing inParticular

Safety Reach

52 10 24 8 6

52% 10% 24% 8% 6%

Chart No. 9.9) Percentage ofcustomers preference for RCL over its competitors

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52%

10%

24%

8% 6%

Quality Service Rates charged Nothing in Particular Safety Reach


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According to the survey 52% of customers justify their preferences for RCL for quality

services, 10% for rates charged and 8% for safety. So, we can say that RCL provides

better quality services than its competitors.

10) FINDINGS & CONCLUSION

10.1 FINDINGS

Religare commodities Ltd customers are more satisfied with thequality services.

Holding securities in electronic form gives some far-reachingadvantages to the investors.

Religare enterprises Ltd offers a wide choice of products forinvesting in the stock market & commodities market. It allowsinvesting in shares, mutual funds and other financial products.With RCL one can manage own de-mat & trading accountindependently.

The depository participant will allow an investor to trade throughany broker of his choice registered with the commoditiesexchanges connected with NCDEX, MCX & NMCE.

Investor can do online trading himself only.

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Transaction details for the traders would be available online..

10.2) SUGGESTIONS

Some customers feel that they should be trained by RCL for givingdemo of on line commodities trading.

Survey reveals that most of the customers are not aware of theservices of RCL. I found the normal tendency of the customer wasto prefer Equity as compared to commodities. So Religarecommodities Ltd should create an awareness of what exactly is

meant by Commodities and explain all other services of Religareenterprises Ltd.

After getting the printouts of the contract note, dispatch of thesame should be taken place with no delay and this can be crossverified with the sender (dispatch section).

Customers are facing over crowding, non-availability of telephonelines, so proper measures should be taken to overcome these

problems.

The RCL official should conduct regular seminars on commoditiestrading.

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World of mouth is very negative because most of the securitiescompanies mainly focus on equity market and they misguideconsumers because of, lack of knowledge in commodities or lackof Dealership.

References: - For web support

2) www.mcxindia.com

3) www.religare.in

4) www.answers.com

5) www.ncdex.com

6) www.businessstandard.com

Books , Magazines & News-papers references

1) Naresh Malhotra ( market research

management)

2) Philip Kotler ( marketing management)

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http://www.mcxindia.com/http://www.religare.in/http://www.answers.com/http://www.ncdex.com/http://www.businessstandard.com/http://www.mcxindia.com/http://www.religare.in/http://www.answers.com/http://www.ncdex.com/http://www.businessstandard.com/


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ICFAI S h l f M k ti St di

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Final Project Vikas Verma Fi

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