Marketing at the

Vanguard Group
Group 2
Aishwarya Singh
Agnik Majumdar
Ayesha
Deepak Taneja
Manisha Sharma
Rishabh Gupta
Introduction
Leaders in the mutual fund sector
Dealt with low cost, long-term investing in
mutual funds
Accounted for 10% of al US mutual funds
assets valuing at $557 billion in 2002
Offered the highest quality product lines at
the lowest possible cost
Enjoyed good reputation amongst investors

The Vanguard Way
A mutual
mutual
funds
organization.
Multifunctional
Teams
Fewer
Organizational
levels
VUE
program as
a TQM
process.
The DAWAW
Principle
Dashboard
Improvement over the balanced scorecard
to track trends
Based on the concept of necessity of
balance as all elements are related
Dashboard weightings:

Measurement of sales and marketing contributing 5%
Product , service, and market development accounted
6%
Client loyalty accounted for 18%
7.5% is Vanguards redemption ratio

How did it help ?
Pre defined
performance
targets and
implementing
measures on
how to reach
them
Ease of
communication
at Vanguard
Measuring
client loyalty
and taking
appropriate
remedial
actions to
decrease the
redemption rate
Category on
external market
conditions was
added in 2001
Retail customer selection &
retention
The Vanguard customer :
Substantial
Cost-conscious investor
Long term investment horizon
Loyal
Active trading discouraged to attract
loyal, long-term investors
Highest plan satisfaction rating
Marketing strategy
No mass media
advertising
Extensive use of
survey reports
Clients happiness as
the paramount
performance measure
Constant change in
approach with increase
in size in market
The impact
Indicators of loyalty and awareness did not
change much from month to month
Initial focus on day to day activities
Extensive data collection to reach out to
investors more effectively
Proactive marketing strategy
New and improved advertisement
campaign launched in 2002

Recommendations
Capitalizing on the under $1 million
marketplace worth $ 6 Trillion
Expansion in international markets like
Pacific Rim, Australia and Europe
Targeting the affluent mass-level
comprising of 8.9 million households with
investable assets valuing between $50,000
and $1 million
THANK YOU