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Marketing At The Vanguard Group Essay

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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 …show more content…

IDENTIFICATION AND EVALUATION OF ALTERNATIVE STRATEGIES Identification and Preliminary Evaluation of the Alternatives Alternative 1: Concentrate on their current clients, broaden and deepen their relationship with them, while maintaining current offerings PROS: • Easier to market to current clients (Vanguard already has information about them and a direct way to communicate with them = low marketing costs involved) • More than 80% have funds in other organizations (big potential) • High satisfaction and loyalty rates • Strengthens the customer focus orientation • The needs of the below $1M segment are in line with the current Vanguard product offering • Important database of members involved in pension plans (through their employers) CONS: • Clients may not want to put all their holdings with Vanguard • Not all the current customers are profitable • Vanguard may not offer all the products and services that these clients need • High net worth clients are expensive to serve Alternative

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