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,…...

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