10 Step Marketing Plan for harold ceasar t. verayo June 2010 Rold ON TIME HCTV
What is a Mutual Fund?
A vehicle for investing in stocks and bonds .
It pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.
owner of a mutual fund unit gets a proportional share of the fund’s gains, losses, income and expenses.
A vehicle for investing in stocks and bonds
The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of u nits owned by them.
Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
Mutual Fund Operation Flow Chart
Each mutual fund has a specific stated objective
Fund’s objective is laid out in the fund's prospectus, which is the legal document that contains information about the fund
Its history, its officers and its performance.
Some popular objectives of a mutual fund are - Fund Objective What the fund will invest in Equity (Growth) - Only in stocks Debt (Income) - Only in fixed-income securities MoneyMarket - In short-term money market instruments (including government securities) Balanced - Partly in stocks and partly in fixed- income securities, ('balance' in returns and risk)
5 Steps for Part 1 (PTM and Positioning)
HCTV PTM are “Individuals- baby boomers and Institutional-retirement funds ”
Who want to feel financially secured
Can choose Philam Bond Fund, etc.
Gap is all other mutual funds focus on the performance of the fund on a certain period
The market size is P 29.7 Billion. HCTV’s share of the pie stood at P22.27 Billion.
5 Steps for Part 2 (Marketing Mix & Strategy)
HCTV Bond Fund
Is 100% premium
Uses newspaper, magazines, brochures and events
Is distributed nationwide
Uses a market leader strategy to win
Positioning to the Primary Target Market Part 1: Steps 1 to 5 HCTV
1.HCTV primary target market (PTM) are the Individuals- baby boomers and Institutional-retirement funds
Demographics (33-51, M/F, social class ABC)
Lifestyle (working, professionals-executives, thinks that this is the right time to exercise financial prudence and discipline)
Behavior (makes sure that they have a discretionary income and desires to invest in their futures, invests at least once a year)
I should be recognized as one of the top investors
I am successful in life when I don’t need to work because I have money sitting in investments earning interests I want to be financially secured
2. My PTM’s NWE
Baby boomers need
To part of the investors circle(social), Self-Esteem, Self actualization (can retire with huge investments and rolling interest)
Baby boomers choose HCTV over other mutual funds because of ….
Consistency of Returns , Reputation of Fund Manager, Accessibility, Market leader, Credible Risk Management Program
Baby Boomers expect this when they invest in HCTV
a fund that outperforms with great returns all the time , can easily redeem when the need arises, will make life comfortable especially during retirement phase
3a. HCTV has many formidable competitors
Direct: Philam Bond Fund Inc. , Sunlife Prosperity Bond Inc., First Metro Save & Learn Fixed Income Fund, Cocolife Fixed Income Fund, Inc., Philequity Peso Bond Fund, Inc.
Variables: Age, Price/Minimum Investment, economic status, returns, specific objectives of the fund, accessibility & availability, marketing promo
HCTV’s Competitive Position Map HCTV Bond Fund Philam Bond Fund Sunlife Prosperity Bond Price/ SC Matrix Class A Class B Class C up Class C dwn High price Low Price
HCTV’s Dominant Position as shown in this competitive map Other 2 brands target the save money positioning and ad campaign Prudent Risk Management Availability of Statements Advertising Campaign Promo Competent Fund Managers Distribution Channel Accessibility Affordability Consistency of Returns Sunlife Bond Philam Bond Fund HCTV Bond Fund
HCTV’s Unique Positioning
HCTV positions itself as “The Investor’s Number 1 Choice and the most popular MF:
Perhaps, it’s the generally more conservative nature of Filipino investors. As the funds invest in safe government securities and fixed income securities from blue chip companies. Returns are less volatile
Consistent Superior Returns
24/7 Accessibility, Widest Distribution Channel
Seasoned Fund Managers
Free life insurance coverage of PhP200,000.00
No brand has a similar position.
Others focus on return for the period and low price
Peso Bond Funds Market Share AS OF DECEMBER 31, 2009 HCTV Peso Bond Fund, Inc. 75% Philam Bond Fund, Inc. 11% SunLife Prosperity Bond Fund, Inc. 9% Others 5%
Cumulative Long-Term Returns AS OF DECEMBER 31, 2009 41% Past 5 Years 15% Past 3 Years 110% Past 10 Years
The industry’s total net asset value amounted to Php29.7 billion as of year end.
Despite most investors opting for virtually risk-free investments in a year that was marked with uncertainty, the peso bond fund industry grew by 2.84% in 2009
Source: ICAP, SEC
Peso Bond Fund Industry NAV Growth AS OF DECEMBER 31, 2009 2009 FY Change 2.84%
The Marketing Mix Strategy Part 2: Steps 6 to 10
6a. Bond Fund category is dominated by 5 major funds Direct: Indirect: HCTV
6b. Product Description
HCTV Peso Bond Fund, Inc. is a fixed-income mutual fund.
It is an open-end investment company that pools the money of its various shareholders and invests them in high grade fixed-income securities.
Shareholders are able to enjoy the benefit of professional fund management, diversified investment in a high-grade fixed-income portfolio and, higher income potential.
Plus, HCTV Peso Bond Fund, Inc. is the only mutual fund in the country that gives its eligible individual investors free life insurance coverage of PhP200,000.
Portfolio Composition Government Securities Medium Term, 35% Government Securities Long Term, 9% Corporate Notes and Bonds – 30% Index Bond Fund, 1% Duration 2.94 Government Securities Short Term, 7% Money Market Instruments and Other Receivables, 12% Preferred Shares, 6%