Senior executives at Vanguard are evaluating their marketing strategy. In particular, they are looking at their approach to market segmentation, the organization of the marketing function, and the emphasis placed on marketing metrics in the corporate dashboard in light of an economic and stock market downturn.
ÃÂ· Low cost high value; extremely low advertising spending and no large sales force.
ÃÂ· Customer focused
ÃÂ· High morale; Low employee turnover; high productivity
ÃÂ· Management involvement
ÃÂ· Horizontal organizational structure
ÃÂ· Use of Six Sigma methodologies to cut expenses, gain efficiencies
ÃÂ· Excellent use of benchmarking
ÃÂ· Centralized customer relationship management
ÃÂ· Use Internet technology in transactions
ÃÂ· Immature level of development of marketing efforts
ÃÂ· No clear strategy or roadmap of dealing with increased competition
ÃÂ· Improve crossover rates
ÃÂ· Overseas markets
ÃÂ· Excessive customer segmentation
ÃÂ· Unusual decline in stock market indexes
ÃÂ· High rollovers
ÃÂ· Increasing deregulation in the financial services industry
Vanguard prides itself on providing low cost and high value to the customer and it is Vanguard's core competency.
However, Vanguard's world changed when in mid-2003, Vanguard's niche market was invaded by commercial banks, investment banks and insurance companies due to deregulation in the financial services industry.
Vanguard took advantage of the Internet technology for customer transactions and other innovations to offer no load funds to the investors. Vanguard successfully employed Six Sigma methodologies in order to continue to offer high value at the lowest cost to the customer.
Some of the threats that could endanger Vanguard's prosperity or survival in the future include excessive customer segmentation where the varied offerings available confuse the customer and the investment brackets are not particularly transparent. Vanguard could encounter a significantly challenging situation if it is inadequately prepared to compete with...