Marketing at Vanguard

In: Business and Management

Submitted By varianceteetee
Words 668
Pages 3
What segment of customers to go after?
As a mutual fund industry's growth leader, Vanguard has targeted customers seeking low cost and long-term investing in mutual funds. Vanguard is interested in gaining long -term rather than short- term investors. Vanguard stands out from many of its competitors because it views the market by focusing just on one particular service and being better at it than its competitors. Vanguard's philosophy is about staying focused on who they are and what they are good at rather than trying to be everything to the customer.

Facing competition and market climate changes, Vanguard must now decide which segment of customers to go after and develop the best way to serve these customers, in order to keep and leverage their competitive advantage. We think Vanguard should continue with the current strategy to focus on servicing the under one million segment and providing the custom what they want. Because, the under one million segment represents over $6 trillion in potential investment dollars. Gaining 10% market share in this segment will provide for much needed growth. Specifically, Vanguard should focus on the Strivers and the Complacent Independents. Although the Strivers have limited income and holdings, their willingness to improve their situation leads us to think that the expected profitability and return on investment are high.

How to advertise to current customer/new customer?
Before, advertising and direct marketing was not a key interest to Vanguard. With competitors becoming full service financial companies Vanguard now has the increasing needs of taking control of its brand awareness. However Vanguard encountered concern of spending money on advertising and direct marketing. Since most of Vanguard’s existing customers, especially loyal customers are satisfied with Vanguard’s less advertising strategy. In other words,…...

Similar Documents

Publications of Nigerian Football in Vanguard Nwespapers

...Company started Nigerian Daily Times. The first editor of Daily Times was Ernest Okoli whose newspaper, The African Messenger, was taken over by the government due to its dwindling financial fortune. The West African Pilot of Dr. Nnamdi Azikwe later joined in 1936 and this brought about an increase in nationalistic consciousness. Its news reports were mainly anti-colonialism and it championed nationalist struggles. Chief Obafemi Awolowo established The Nigerian 405 Nordic Journal of African Studies Tribune in 1946. The newspaper strengthened the anti-colonialism campaigns through its critical analysis of the problems of the time. However, in the present day Nigeria, a host of other newspapers are now in circulation. Some of these are: The Vanguard Newspaper, The National Concord, The Punch, This day, Comet Newspaper, Daily Sketch, The Monitor, Alaroye, The Guardian, The Post Express, among others. 3. NEWSPAPER INDUSTRY IN NIGERIA Nigeria’s newspaper industry is a vibrant one and this is because the press institution in the country has come a long way. Since the introduction of the first indigenous newspaper in 1859, the Nigerian reading public has been inundated with different newspapers, many of which are privately owned. According to Sommerlad (1966): Nigeria has not only made progress in this important aspect of national growth and development; it has been made to adopt the press as a political tool, for economic development, stimulation of change and for social......

Words: 3558 - Pages: 15


...This file is registered to : ( MM21c Cover Europe:Layout 1 1/27/09 10:47 AM Page 1 “Noel Capon’s Managing Marketing in the 21st Century offers a holistic perspective on the evolving role of the marketer, one that requires fluency in the language of top management, strategic analysis, and cross-functional integration. This is an excellent book for a core course in marketing and the breadth of U.S. and European examples will make the book come alive for students.” Nader Tavassoli Professor and Chair, Marketing Faculty, and Director, Customer Focused Marketing, London Business School “Managing Marketing in the 21st Century is a clearly-written, well-organised, and beautifully-designed text. It not only covers the required material but also offers new insights and forms of analysis and presentation. There are many well-chosen cases and examples from both North America and Europe. Overall, a book to be recommended.” Geoff Easton Professor, Department of Marketing, Lancaster University Management School, Great Britain “Managing Marketing in the 21st Century provides a new and powerful approach for marketing management. The organising focus of six marketing imperatives is a distinctive and powerful integrative tool for communicating the critical functions and roles marketing must play. These imperatives provide an outline for the actions needed to implement the ideas in the book and thus provide a clear pathway from learning......

Words: 365818 - Pages: 1464


...handles production, development, marketing and sales of both hardware and software for its Sony PlayStation line of video game system products and services. Sony computer Entertainment Inc. also has subsidiaries in North America, Asia (Japan, Korea, and China) and in Europe. Gaming industry has been gaining momentum with the gaming market more open now than ever since the boom of the gaming industry in late 80s and 90s and technological advancements today enabled SCEI to make use of its vast resources to innovate its gaming products and services. For the past decade SCEI has been excellent in terms of innovative and cutting edge technological advancements in making home consoles reflecting the company’s most recent mission statement. "We make advanced hardware that enables the most talented developers to produce vanguard titles and set new standards in interactive entertainment. Our goal is to make a family of products that completely changes the definition of home entertainment. It doesn’t matter if you’re a hard-core gamer whose thumb calluses can deflect machine gun fire or if you just love Blu-ray movies, PlayStation® entertainment products have something for you.” Sony PlayStation line of products include PlayStation (PSOne), PlayStation 2 (PS2), PlayStation 3 (PS3), PlayStation Portable (PSP), PlayStation Vita (PSVita) and the upcoming PlayStation 4 (PS4). SCEI has made several technological advancements and several changes in marketing strategies since the launch......

Words: 313 - Pages: 2

Marketing at the Vanguard Gro

...Background: The Vanguard Group, one the most successful and profitable U.S. mutual fund providers, has been accustomed to success for decades. By 2002, the Vanguard Group boasted mutual fund assets totaling $557 billion, which accounted for 10% of the U.S. mutual fund market. Vanguard offered low-cost, long-term investing options and a consistently superior product line as compared to its competitors. By emphasizing its long-term investment strategy, Vanguard was able to outperform 88% of its competitors in the Money Market Funds, Bond Funds, Balanced Funds and Stock Funds markets combined over a 10-year period from 1992-2002. In 2002, Vanguard’s costs were 0.26% of assets, compared with an industry average of 1.36%. Such reliable returns and operational efficiency helped make Vanguard a world-class company seemingly destined to become the world’s largest mutual fund group. Challenge: Market Climate Change: In 2002, a climate shift started to take place as investment markets weakened and competition expanded. Between 2000 and 2002, the average mutual fund return was -33.7%. Also, the financial services deregulation had enabled the three largest segments of the financial services industry (commercial banks, investment banks, and insurance companies) to enter one another’s line of business. Companies like Citigroup and Merrill jumped at the opportunity to become a one-stop, full-service financial firm. Clear statement of strategies: To make sure that Vanguard is able to......

Words: 1479 - Pages: 6

Swot Vanguard

...Marketing at the Vanguard Group In light of an evolving market, faced with new competitors, and after a careful analysis of their current customers, the Vanguard Group (hereinafter referred to as “Vanguard”) realizes it must rethink its entire marketing strategy. However, in order to protect and leverage their competitive advantage, which is their low management fees, and to optimize the loyalty that their customers continuously demonstrate toward their organization, they must now target the most profitable segment for them, and develop the best way to serve and delight these customers. SITUATION ANALYSIS Highlighted SWOT Strengths • Low fees strategy; • Consistently above average performance and competitiveness of the majority of Vanguard funds (Exhibit 2); • Quality driven corporate culture; • One of the highest loyalty scores in the industry, with a redemption rate under the industry average; and • Good reputation. Weaknesses • Low brand and advertising awareness; • Under-exploited customer database; • Vanguard sees marketing strictly as an expense, rather than a long-term investment; • Website is geared towards providing information instead of selling Vanguard products; and • Excessively low fee pricing policy doesn’t allow higher revenues when they perform better. Opportunities • 80 to 90% of Vanguard clients have funds in other organizations; • Investment opportunities with...

Words: 334 - Pages: 2

Mutual Funds, Vanguard Paper

...Vanguard Mutual Fund Evaluation FIN/420 1/26/2014 The Vanguard Group The Vanguard Group offers an array of mutual funds, exchange-traded funds, brokerage, and asset management. When choosing and comparing mutual funds, there are characteristics that you need to first evaluate. This paper will review five different categories of mutual funds that Vanguard Group offers its investors. Actively Managed Common Stock Fund The Selected Value (ticker VASVX) is an actively managed common stock fund with a 4 star Morningstar rating with a minimum investment of $3,000. This fund does not have a front or rear load fee. The total annual fund operating expenses are 0.41% which means that for every $100 you invest, $.41 goes to paying the person who sold you the fund. VASVX is a mid-cap value investment with a low fee level. The fund seeks to provide long-term capital appreciation and income. The fund invests mainly in the stock of mid-size U.S. companies, choosing stocks considered by an advisor to be undervalued. Securities include stocks, bonds, and money market instrument, totaling 132 holdings and ten industries. The five largest holdings as of September 29, 2014 are Micron Technology Inc., Hanesbrand Inc. Common Stock, Royal Caribbean Cruises Ltd. Co, Omnicare, Inc. Common Stock, and Discover Financial Services Com. The fund inception occurred on February 15, 1996 and has been managed by Barrow since 1999. The fund inception date tells us that the mutual fund...

Words: 1367 - Pages: 6

1-2 Vanguard Because of foreign companies are not subject to the same accounting, auditing and financial-reporting standard, so their stocks may not be as liquid as those of similar U.S. firms. And because of the foreign stock exchange, and the different government role, which lead the risk existing that the available information is not reliable in making investment. 4. The Vanguard Group makes the allocation of fund net assets by regions: Europe 55 percent, Pacific 17 percent, Emerging Markets 23 percent, North America 4 percent, and Middle East 1 percent. The Vanguard does this because they want to eliminate the foreign currency exchange risk as much as possible. As we all know, some small countries have financial problems so it can prevent itself from the country’s financial problems. 5. The Vanguard Group invested most heavily in UK (20%), Japan (8.9%) and China (8.1%). For these three countries, the company can have less consideration of foreign currency risk or financial problem. I think US AND Brazil should more heavily invested than it is. I expect HK, Germany and Australia to be invested. 6. The Vanguard Group invested heavily in Financials (19.6%), consumer discretionary (16.6%) , industrials (14.1%), and information technology(13.1%). They are more profitable than other. And consumer discretionary can give them advices and investment information....

Words: 441 - Pages: 2


...choose the appropriate product for themselves. This case study of Tata Nano identifies the pitfalls and shortcomings of their prevalent positioning strategy of “People’s Car” and suggests ways in which Tata Motors could reposition its product for glorifying its image once again in-spite of changing industry dynamics. Since the economic liberalization of the 1990s, development of infrastructure within the country has progressed at a rapid pace, and today there is a wide variety of modes of transport by land, water and air. However, India's relatively low GDP has meant that access to these modes of transport has not been uniform. India's rapidly expanding economy has provided the basis for a fundamental change -- the emergence of a "new vanguard" increasingly dictating India's political and economic direction. This group is India's new middle class - mobile, driven, consumer-oriented, and, to some extent, forward-looking. It encompasses prosperous farmers, white-collar workers, business people, military personnel, and myriad others, all actively working toward a prosperous life. Televisions, and other consumer goods, reasonable earnings and savings, and educated children typify this diverse group. While Nano tries to target to the needs of this emerging middle class families which are yet to enjoy the privileges of most of the modern day requirements with respect to transport and other utilities, the infrastructure is yet to be developed. Hence it becomes essential to......

Words: 2810 - Pages: 12


...Management Development Institute, Gurgaon MARKETING PLANNING Study on ‘TATA NANO’ Submitted By : Aabid Bains (15P001) Arti Jain (15P011) Gautam Bindlish (15P021) Mayank Rajput (15P031) Rohit Gupta (15P041) Siddharth Gupta (15P051) INDEX Chapter No. Section-1 1 2 3 Section-2 4 5 Section-3 6 Chapter Name Page Number Preface The Curious Case of Tata Nano SWOT and PEST Analysis 3 4 6 Porter’s Five Forces Analysis Analysis of Consumer Behavior 11 14 Positioning Strategies 20 2 CHAPTER : 1 PREFACE The project aims at building a comprehensive understanding of how a company decides its marketing strategy and answer associated questions such as pricing, promotion and positioning of the product. Post launch, the effectiveness of the marketing strategy and performance of the product is also to be analyzed. The project also aims to analyze the decision-making process, purchase behavior and buying patterns from the perspective of the consumer. We will consider the dynamic market environment and changes at the micro and macro levels in the economy which affect the automobile sector 3 CHAPTER : 2 The Curious Case Of TATA Nano Introduced in January 2008 and launched in March 2009, TATA Nano was the most awaited launch of the year or perhaps the decade for the automobile industry. TATA MOTORS invested heavily in the project, not only financially but also as a brand. They were going to build an affordable......

Words: 6960 - Pages: 28

Brics: the Vanguard of the Revolution

...Case Study The BRICs: Vanguard of The Revolution The BRICs, composed of Brazil, Russia, India, and China, are the future of the world’s most powerful economies and the current most accelerated emerging economies. Together they are home to nearly 2.8 billion people, about 40 percent of the planet’s population. They currently generate about 30 percent of world’s GDP. They have come a long way from the last 30 years or so, each one overcoming their own barriers and obstacles to achieve where they are today. They are all expecting to increase their income within the next 15-30 years exponentially, allowing for the economy to flourish and incorporate new markets that were otherwise less popular or almost non-existent. For example, cars in India and China were about 2 and 9 out of 100 people, respectively. They estimate that the total number of cars in both countries could rise from 150 million today to north of a billion by 2030. Not everything is positive however, there are skeptics who say there are problems such as the delusion that current trends will continue indefinitely and uninterrupted. That economic growth rates slow as the base of activity expands and advantages such as cheap labor or low-cost capital wane as growing demand increases marginal price pressures. That there’s always a black swan event, an unexpected, hard-to-predict impact that resets the game such as the internet, the collapse of the Soviet Union or the global financial crisis. Despite ever-present...

Words: 1322 - Pages: 6


...|Croydon Council | |The issue of youth unemployment in the UK: | |Marketing research study, aiming to identify the main contributing points | | | | | | | |November, 2011 | Table of Contents List of illustrations 3 Executive summary 4 Key findings 4 Introduction 5 Background 5 Research Objectives 7 Method 8 Definition of population 8 Sample Size 8 Sampling technique 8 Data collection method 8 Questionnaire design 8 Findings………………………………………………………………………………..9 Trends 9 Education and Age 9 Age and Work experience 9 Thoughts on Apprenticeships 10 Factors 10 Lack of youth support 10 Lack of job opportunities 11 Young people lacking required job skills 12 Stereotype of young people 12 Youth interest in job prospects 13 Youths from one-parent families 13 Lack of role models 14 ......

Words: 3236 - Pages: 13

Vanguard Group Case

...  1. What do you think of the Vanguard group as a firm? What is the Vanguard group investment philosophy? 2. What are the key differences between Life-Style funds and Life-Cycle funds? 3. Discuss the pros and cons of Life-Style funds. Explain their rationale. 4. Discuss the pros and cons of Life-Cycle funds. Explain their rationale. 5. Are the Life-Style funds or the life-Cycle funds consistent with the theory (MeanVariance approach)? 6. Would you invest in either Life-Style or Life-Cycle funds? Why, why not? Question 1: What do you think of the Vanguard group as a firm? What is the Vanguard group investment philosophy? Vanguard was founded by John C. Bogle (Princeton University B.A., 1951) in 1975. Prior to The Vanguard Group, John Bogle was part of Wellington Management Company. The Vanguard Group currently manages about $3,148,496 million in assets (according to Northern Trust “Asset Management Ranking Highlights: The Largest Money Managers”), which makes it the second largest money manager after BlackRock ($4,651,896M). The company is mostly focused on mutual funds and ETFs. Index funds were created and offered to individual investors, which introduced significant cost-savings benefits. Their trademark way of doing business is by heavily investing in technology, reducing management fees, and lowering marketing costs. Providing exceptional and exemplary client service has also been part of Vanguard’s repertoire. Mr. Bogle strongly believes in......

Words: 1432 - Pages: 6

Vanguard Group Inc. Swot Analysis

...Harvard ManageMentor — MARKETING ESSENTIALS TOOLS | MERC 6541 Análisis SWOT Prof. Víctor Quiñones | Utilice el análisis SWOT para identificar las fortalezas, debilidades, oportunidades o amenazas relacionadas al producto, línea de producción, programa de mercadeo, o la compañía en general. El análisis SWOT permite enfocarse en áreas específicas y descubrir acciones que puedan ayudar a edificar sobre las fortalezas, minimizar las debilidades, maximizar las oportunidades y lidiar o vencer a las amenazas. | Fecha de Análisis: | 23 de noviembre de 2011 | Por: Mariangelí Lugo Zayas | Nombre de la Compañía Analizada: | The Vanguard Group, Inc.: Is Advertising Really Needed? | | Análisis IntenoEnumera factores internos a ser analizados. | Fortalezas (Strengths) | Ideas para edificar sobre las fortalezas | * Líder en la industria de fondos mutuos * Oferta de gastos mínimos, productos de alta calidad * Tomar ventaja de publicidad boca a boca o mercadeo gratis * Baja proporción en gastos * Excelente servicio al consumidor | * Mantener diferenciación de producto frente a los de la competencia * Continuidad con la baja proporción de gastos a través de la inversión interna | Debilidades (Weaknesses) | Ideas para minimizar o fortalecer las debilidades | * Gasto mínimo en mercado, lo que lleva a no alcanzar aquellos clientes que no han escuchado de la compañía * Gasto mínimo en investigación y desarrollo | * Establecer programa......

Words: 862 - Pages: 4

Vanguard Case

...| Marketing the Vanguard Group | Marketing 532 | | Karen Garcia | 11/29/2011 | | Executive Summary Vanguard group is a Mutual Funds sales company who specializes in offering low cost and long-term investments. Sixty percent of their assets are held by retail consumers, and the remaining forty percent is held by institutions through corporate retirement plans. In 2003, although Vanguard had one of the lowest operating costs in the industry as a percent of average net assets, the firm also experienced a significant amount of churn, or customer loss. To address strategic issues such as maintaining a low cost structure, customer churn, and profitability across target markets. The firm implemented a reorganization plan which measured quantitative as well as qualitative aspects in their operations. Metric system tools were put in place to measure how the firm operated in the different business segments they serviced. A special emphasis was placed in how marketing efforts should be concentrated to increase growth, how value propositions could be improved, and how costs could be minimized without sacrificing service and product qualities. Service Description Vanguard group provided low-cost long-term mutual fund investments to consumers. Although the two major business categories were retail clients and institutional private retirement funds. Within the two major categories Vanguard had three consumer groups: Core clients who held up to $250,000 in assets,......

Words: 2449 - Pages: 10


...TE AM FL Y Praise for Marketing Insights from A to Z “The bagwan of Marketing strikes again. Leave it to Phil Kotler to revisit all of our blocking and tackling at just the right time . . . and as all great marketers know: ‘timing is everything.’” —Watts Wacker Founder and CEO, FirstMatter Author, The Deviant Advantage: How Fringe Ideas Create Mass Markets “Wide-ranging, readable, pithy, and right on target, these insights not only are a great refresher for marketing managers but should be required reading for all nonmarketing executives.” —Christopher Lovelock Adjunct Professor, Yale School of Management Author, Services Marketing “Kotler tackles the formidable challenge of explaining the entire world of marketing in a single book, and, remarkably, pulls it off. This book is a chance for you to rummage through the marketing toolbox, with Kotler looking over your shoulder telling you how to use each tool. Useful for both pros and those just starting out.” —Sam Hill Author, Sixty Trends in Sixty Minutes “This storehouse of marketing wisdom is an effective antidote for those who have lost sight of the basics, and a valuable road map for those seeking a marketing mind-set.” —George Day Geoffrey T. Boisi Professor of Marketing, Wharton School of Business “Here is anything and everything you need to know about where marketing stands today and where it’s going tomorrow. You can plunge into this tour de force at any point from A to Z and always come up with remarkable insights......

Words: 53807 - Pages: 216

Read Essay | Overtime | the marshall mathers lp