| Marketing the Vanguard Group | Marketing 532 | | Karen Garcia | 11/29/2011 |

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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, Voyager clients with balances ranging between $250,000 to $1 million and Flagship clients who held portfolios above $1 million. Vanguard provided customer service to the Voyager clients through their call center; they offered needs based assessment to Voyager clients, and had individualized counseling agents for flagship customers. In addition, Vanguard offered discount rates on additional services