This is how the sampling initiative works: before bidding for a particular client (retail or institutional), Motilal Oswal puts forward a sampling proposal, which can extend from a month to two years.

During this period, the firm recommends to the potential client which shares to buy and sell--the client is free to trade himself or through another broking firm, at the same time. During the sampling period, Motilal Oswal provides free advise and research reports on companies--and does not charge a brokerage fee for the transactions.

Says the firm's managing director, Motilal Oswal: ``We realised that the execution of a trade is the same for all broking firms with technology. But we can offer value-added service by allowing ourselves to be tested by the clientfree of cost.''

Adds Jagdeep Kapoor of Samsika Consultants, the marketing consultant for thebroking firm: ``Since a broking firm can give away no tangible stuff, it can `give' the experience of dealing with it, in terms of the professionalism, competence, research quality and efficiency.''

As part of the brand building initiatives, Motilal Oswal appointed Samsika Consultants headed by Jagdeep Kapoor a year and a half ago. Samsika is providing consulting the broking firm on communications, brand positioning and client relations. As an outcome of this association, the firm would be releasing an ad campaign soon after the World Cup. The positioning will be ``Wealth Creators-We help create your wealth.'' The production costs of the campaign has been estimated at Rs 5-6 lakhs.

The sampling exercise was initiated at Motilal Oswal three years ago, but the firm only pursued it aggressively a year ago. The results are now pouring in. The turnover of the company has increased from Rs 426 crore in 1995-96 to Rs7,100 crore--50 per cent of which is believed to have been netted through sampling.

In the last six months alone, the company's services have been sampled by 300 potential clients, of which 10 per cent have already becomes members. At present it services more than 2,000 clients through four offices in Mumbai.

There is one issue though: who picks up the tab for the losses which might be generated during the sampling exercise? Shrugs Kapoor: ``We don't look at it as a loss but as an investment.'' However, to safeguard its interests, the company relies heavily on research: Motilal Oswal has earmarked 15 per cent of its revenues for research on companies in March 1999, which is double the amount allocated three years ago.

It has also set up a research centre built over 1,800 square feet area in south Bombay, and an eleven member team works full time on preparing the research reports. In 1998-99, the research cell posted 59 communications, covering 45 companies, which were sent to the various clientssampling the firm.

In addition to the reports, the potential clients are sent written updates on the quarterly results of the companies. Besides, each client is attached to a dedicated relationship manager who is responsible for calling the client with the latest developments in the day, market information and briefs. According to Oswal: ``We have a relationship manager for dealing with each of our potential clients on an individual basis.''

To help the potential clients and existing clients cope with the ever changing face of the market and in order to equip them to meet realities they might encounter while selling, Motilal Oswal also conducts training seminars every month. Says Oswal: ``Gone are the days when when you could say `your need, our service, buy it'. Today it's: `your need, our service, try it free'.'' Now that's an axiom worth taking stock of.