Marketing at the Vanguard Gro

In: Business and Management

Submitted By varianceteetee88
Words 1479
Pages 6
Company 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 preserve its market share and maintain its assets in a competitive environment, the company should focus on preserving its clients existing assets while reaching out to net new customers.
First, for Vanguard to be able to retain their top position in the mutual fund marketplace, they need to make sure that its reputable brand name gets exposure through a combination of marketing…...

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

Scott's Miracle Gro

...Scotts Miracle-Gro | September 7 BUAD 6600 | SCMers Meagan Frances AyersJames FranksEmelie HallJean-Hubert Trahan | Instructor: Sachin Modi | Objective/Scope The purpose of this article is to determine whether staying at the Temecula plant or outsourcing to China is the best option for Scotts Miracle-Gro. A cost analysis will be used to determine which option will give Scotts Miracle-Gro the best opportunity for long-term growth and profit. Recommendations It has been determined that staying in the United States at the Temecula plant in California will be the best decision for Scotts Miracle-Gro financially and with regards to their image and product quality. However, in order to remain competitive, costs must be lowered to keep profits up to par with where they would be had the company decided to outsource. To do this, it has been recommended that Scotts Miracle-Gro cut production costs by reducing: 1. Energy Costs, 2. Raw Materials Costs, and 3. Labor Costs. By reducing costs, Scott’s Miracle-Gro can remain competitive while in the United States and avoid outsourcing the production line to China. Analysis Risk and Benefits Upon reviewing the information regarding the production line of The Spreader, it has been concluded that there are many risks with outsourcing the production line overseas to China which include but are not limited to: 1. Loss of quality 2. Loss of production innovation 3. Forgoing in-mold label......

Words: 1887 - Pages: 8

Marketing

...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 Vanguard

...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...

Words: 668 - Pages: 3

Scotts Miracle-Gro

...Scotts Miracle-Gro | September 7 BUAD 6600 | SCMers Meagan Frances AyersJames FranksEmelie HallJean-Hubert Trahan | Instructor: Sachin Modi | Objective/Scope The purpose of this article is to determine whether staying at the Temecula plant or outsourcing to China is the best option for Scotts Miracle-Gro. A cost analysis will be used to determine which option will give Scotts Miracle-Gro the best opportunity for long-term growth and profit. Recommendations It has been determined that staying in the United States at the Temecula plant in California will be the best decision for Scotts Miracle-Gro financially and with regards to their image and product quality. However, in order to remain competitive, costs must be lowered to keep profits up to par with where they would be had the company decided to outsource. To do this, it has been recommended that Scotts Miracle-Gro cut production costs by reducing: 1. Energy Costs, 2. Raw Materials Costs, and 3. Labor Costs. By reducing costs, Scott’s Miracle-Gro can remain competitive while in the United States and avoid outsourcing the production line to China. Analysis Risk and Benefits Upon reviewing the information regarding the production line of The Spreader, it has been concluded that there are many risks with outsourcing the production line overseas to China which include but are not limited to: 1. Loss of quality 2. Loss of production innovation 3. Forgoing in-mold label......

Words: 1887 - Pages: 8

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

Scotts Miracle-Gro Case Study

...Laura Mosier SCM-Professor York Case study #1 “Scott’s Miracle-Gro” Scotts Miracle-Gro, the largest company in the North American lawn and garden industry, has reached a point in its existence to make a significant management decision. The company is considering whether to continue with insourcing its spreader products or switch to outsourcing in China. The solution lies in an analysis of quantitative and qualitative data comparisons and deciding which ideology would benefit the company in the long haul. When considering the costs it seems as though outsourcing would save a lot of money for the firm, however, we must think strategically. Thinking strategically means the long run, and using the statistics we were given we can estimate that the costs of outsourcing are growing quicker exponentially. Yes, the labor in China is cheaper but over a span of ten years wages are estimated to increase by 40 percent in China whereas in Temecula there is an estimated 3 percent annual increase, or approximately 30 percent over the next decade. The additional $8,000,000 freight charge when choosing to outsource would be the biggest expense. Over a span of ten years this is estimated to increase by 30%, almost 10.5 million dollars by 2017. The only area we would be saving on is the electricity costs (other than the obvious difference in the annual lease costs), but compared to the freight charges it is very little. The electricity costs in Temecula are due to increase only 25%......

Words: 1111 - Pages: 5

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

...market. 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

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

Alimentation En Gros Scott

...implantées. * Laurent Scott doit s’assurer que la capacité d’heures machines n’est pas dépassé Introduction Fondé il y a maintenant 35 ans, AGS est une entreprise qui œuvre dans le domaine de grossiste d’alimentation. AGS fait face à plusieurs questions. L’entreprise a plusieurs projets, dont l’expansion de ses activités. Une analyse de la situation actuelle effectué, suivi d’une analyse des enjeux et des options majeures qui se présentent à l’entreprise. Une recommandation sera formulée suivi d’une prévision et suivi de l’option. Finalement, une analyse des enjeux secondaires et du plan de mise en œuvre seront présentée pour finalement finir avec la conclusion. Analyse de la situation actuelle Mission * Alimentation en gros Scott est une entreprise qui œuvre dans le domaine du grossiste d’alimentation. Elle offre différent produits d’alimentation dont de la dinde. AGS exploite ses activités à Winnipeg et au Manitoba. FFPM Forces * Grossiste en alimentation prospère * Bien établit dans le secteur * Sert plusieurs villes * | Faiblesses * C’est la femme de Scott qui s’occupe de la tenue de livre et elle n’a pas les connaissances requises * Le mot de passe du système informatique peut facilement être fraudé * Risque de fraude du à un mauvaise séparation des tâches * Employés laissent trainer leurs mot de passes sur leur bureau * Le système de stocks est contrôlé principalement par Edith et il n’y a aucune séparation des tâches | ......

Words: 1824 - Pages: 8

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

Scotts Miracle-Gro

...The Scotts Miracle-Gro Company (Scott) was the world’s leading dealer and marketer of consumer products for do-it-yourself lawn and garden care in addition to products for specializing in horticulture. Scotts started it spreader business according to “(Pearce & Robinson, 2011), with the introduction of drop spreaders and expand business in later years to develop broadcast spreaders. Scott’s Vision for the company future involved making the plant automated as possible and were headed in that direction.” Scott’s was trained and developed there human resources to meet the need for the future direction of the company. This direction would consist of fewer assemblers and a greater number of machine technicians to maintain plants. By making these changes the company would dramatically cut labor cost and make help balance out the difference and make the cost comparable to the cost of plants in China. I think the key issue with Scott’s growth and development wanted to maintain quality but, also it was important for the company to innovative and cost effective. A good example of this sort of process innovation according to “(Pearce & Robinson, 2011), was the development of a new hand spreader assembly process. Scott’s redesigned the spreader and removed screws connectors this allowed for a pressure fit. In addition to allowing the company to build an in house an automated assembly line which help to cut cost because less staff was needed. This process only required four people but...

Words: 586 - Pages: 3