Final Project Report

“Market Research on Commodities Futures Trading”

By
Vikas Verma

Distribution List

Corporate Guide: - Mr. Santosh Kumar Rout

(Branch Manager)

Faculty Guide: - Mr. M.Gurumurthy

(ICFAI School of Marketing Studies)

Vikas Verma 1

ICFAI School of Marketing Studies

Hyderabad (A.P)
 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 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. 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.

Vikas Verma 2

ICFAI School of Marketing Studies

Hyderabad (A.P)
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 Text
i) Cross selling (A/C opening)
ii) Location Mapping
10. Data Analysis and Interpretation
11. Findings & Conclusion
12. References
13. Glossary

Vikas Verma 3

ICFAI School of Marketing Studies

Hyderabad (A.P)
 Abstract
This Summer Internship Project is a part of our MS (Marketing) course.
We have done a market research on “Commodities Futures Trading”.
This Market Research has been done on behalf of Religare
Commodities Ltd. The main focus of this research is to know the
consumer awareness about commodities trading. My project profile
was divided into three parts. First one was Market Research and
second one was Location mapping (find out potential market in
Kolkata) & third part was cross selling (Account opening).
This project report will be helpful for one who is looking for potential
market in Kolkata 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 a new
branch or franchise in Kolkata.
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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ICFAI School of Marketing Studies

Hyderabad (A.P)
 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.

Vikas Verma 5

ICFAI School of Marketing Studies

Hyderabad (A.P)
 Introduction
The rapidly advancing technology, particularly the Internet, has
drastically
changed the social and economic landscapes and 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 investors access the market. Having
taken advantage of information technology 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 where

investors place orders and confirm trading results via electronic
communication channels, such as the Internet, mobile phones, In
India, the whole process of securities & commodities transactions,
from order placement and routing, order execution, to trade
confirmation, is fully automated, thus enabling the investors who have
placed 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
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 Religare
commodities 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
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 customer’s 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
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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ICFAI School of Marketing Studies

Hyderabad (A.P)
 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 THROUGH

QUESTIONNAIRES:

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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ICFAI School of Marketing Studies

Hyderabad (A.P)
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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ICFAI School of Marketing Studies

Hyderabad (A.P)
 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 or cancelled cheque.

4. Two photographs

5. Individual Account

6. HUF A/c

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 the
investment is appropriate to get the exposure then client can get two
or more times exposures on different commodities. If the market
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ICFAI School of Marketing Studies

Hyderabad (A.P)
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. That’s 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
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 direct
commodities 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
“Fataka”or “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 Wholesale

market 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
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 commodities
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.9.1) Percentage of customers’ preference over other depository services

in RCL.

14%
4%
12%
50%
20%

Quality Service Safety Reach

Vast variety of Service Nothing in Particular

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ICFAI School of Marketing Studies

Hyderabad (A.P)
From the above statistics it is observed that in the survey 50% customers justify that
RCL is providing quality services as compared to other depository services

9.2) Different types of investors with RCL.

Small Investors Long term investors Traders

32
58 10

Chart no.9.2 ) Percentage of investors with RCL.

10%

32% 58%

Small Investors Long term investors Trades

The above table shows that out of 100 customers, 58 customers are small investors and
32 customers are long term investors.

Vikas Verma 17

ICFAI School of Marketing Studies

Hyderabad (A.P)
9.3) Customer’s’ awareness of the new services offered by RCL.

News Paper/
Through RCL Broker Agents Others
Magazines

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) Customer’s’ first source of awareness

News paper /
Through RCL Broker Agents Others
Magazines
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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ICFAI School of Marketing Studies

Hyderabad (A.P)
 Neither
Mostly Mostly
Satisfied Satisfied / Unsatisfied
Satisfied Unsatisfied
Unsatisfied

64 24 10 2 0

64% 24% 10% 2% 0

Chart no.9.5) Percentage of customers’ satisfaction of the services of RCL.

2%

10%
0%

24%

64%

Satisfied Mostly Satisfied Newither Satisfied/ Unsatisfied Mostly Unsatisfied Unsatisfied

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 .

Vikas Verma 19

ICFAI School of Marketing Studies

Hyderabad (A.P)
 Neither
Mostly Mostly
Satisfied Satisfied/ Unsatisfied
Satisfied Unsatisfied
Unsatisfied

52 24 20 4 0

52% 24% 20% 4% 0

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

RCL.

4%
20% 0%

52%
24%

Satisfied Mostly Satisfied

Neither Satisfied/ Unsatisfied Mostly Unsatisfiede
Unsatisfied

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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ICFAI School of Marketing Studies

Hyderabad (A.P)
 Frequent reminders are given to
RCL for update of the 24 24%
information
Irregular receipt of Holding /
22 22%
Transaction statements
Improper format of Holding /
16 16%
Transaction statements
Improper attention given to the
14 14%
enquiries
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

Quality Nothing in
Rates charged Safety Reach
Service Particular

52 10 24 8 6

52% 10% 24% 8% 6%

Chart No. 9.9) Percentage of customers’ preference for RCL over its competitors

8% 6%

24% 52%
Vikas Verma 10% 21

ICFAI School of Marketing Studies

Quality Service
Hyderabad (A.P) Rates charged Nothing in Particular Safety Reach
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 the

quality services.
Holding securities in electronic form gives some far-reaching
advantages to the investors.

 Religare enterprises Ltd offers a wide choice of products for

investing in the stock market & commodities market. It allows
investing in shares, mutual funds and other financial products.
With RCL one can manage own de-mat & trading account
independently.

 The depository participant will allow an investor to trade through

any broker of his choice registered with the commodities
exchanges connected with NCDEX, MCX & NMCE.

 Investor can do online trading himself only.

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ICFAI School of Marketing Studies

Hyderabad (A.P)
  Transaction details for the traders would be available online.
.

10.2) SUGGESTIONS

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

 Survey reveals that most of the customers are not aware of the
services of RCL. I found the normal tendency of the customer was
to prefer Equity as compared to commodities. So Religare
commodities Ltd should create an awareness of what exactly is
meant by Commodities and explain all other services of Religare
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 these
problems.

 The RCL official should conduct regular seminars on commodities

trading.

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ICFAI School of Marketing Studies

Hyderabad (A.P)
 World of mouth is very negative because most of the securities
companies mainly focus on equity market and they misguide
consumers because of, lack of knowledge in commodities or lack
of 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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ICFAI School of Marketing Studies

Hyderabad (A.P)
 3) Business World

4) Business Economy

5) The economic times

6) Business standard

7) Business Line

8) Daily market commentary, daily research

reports on Metals & Agro-product of
Religare commodities Ltd.

Glossary

MCX – Multi Commodity Exchange

NCDEX – National Commodity and Derivative Exchange

NMCE – National Multi commodity Exchange

CRN – Customer Relationship Number

RCL - Religare Commodities Ltd.

PAN – Personal Account Number

REL – Religare Enterprises Ltd.

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ICFAI School of Marketing Studies

Hyderabad (A.P)
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ICFAI School of Marketing Studies

Hyderabad (A.P)