A Proposal to Develop Strategies to
Increase Client Acquisition and Assets
Under Management
Scope of Work
Prepared for: The Mutual Fund Store of Oklahoma City
March 10, 2011
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Table of Contents
Overview
Project Initiation
3
Project Assignment
3
Current Situation
3
Overview of Opportunities
4
Learning Objectives
5
Operations
Division of Labor
6
Client Meetings
7
Reporting
7
Research
Research Categories and Key Questions
8
Methodology
9
Deliverables
9
Timeline
10
Budget
11
Appendices:
A – Survey Questions and Discussion Topics
12
B – Cardinal Consulting Team Members
13
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Project Initiation
In February 2011, The Mutual Fund Store of Oklahoma City engaged the Cardinal Consulting
group to begin a project to determine strategies designed to increase prospective leads, new
client acquisitions and new assets under management (AUM). The Cardinal Consulting group
consists of five students and Executive In Residence at William Jewell College. This opportunity
presented by The Mutual Fund Store of Oklahoma City will bring real-world client interaction
and experiences, furthering the students’ knowledge and creativity regarding consulting.
Project Assignment
The project assignment is to determine new strategies that will be implemented by The Mutual
Fund Store of Oklahoma City. These new business strategies will be developed to increase
prospective leads, new client acquisitions and new assets under management (AUM). These
strategies will target prospects in the demographic set reflected in the actual current client base
as well as considering additional demographic sets believed to hold significant potential.
Demographical information such as age, socioeconomic status, location, employment status, etc.
will be researched in order to determine what strategies will be recommended to The Mutual
Fund Store of Oklahoma City. Current strategies used by The Mutual Fund Store of Oklahoma
City have been considered inadequate by The Mutual Fund Store’s franchisee.
Current Situation
The Mutual Fund Store was created in Overland Park, Kansas in 1996. It is a fee only,
independent, investment advisory service. Overall the franchise has over $6 billion in assets
under management (AUM – a main indicator used in determining “success” of the company).
There are 77 locations nationwide, with 18 corporately owned with $2 billion AUM and 59
franchise owned, with $4 billion AUM. Main competitors in the individual advisory service are
companies such as Edward Jones, AG Edwards and other local investment advisory locations.
The Mutual Fund Store of Oklahoma City opened on February 5, 2006. The store is located in
the Midwest region and is franchised-owned by Gary Bussing and two partners. The Mutual
Fund Stores located closest to the location in Oklahoma City include: Springfield, Missouri;
Wichita, Kansas; Memphis, Tennessee; and Overland Park, Kansas. Of these locations, Memphis
and Wichita were opened after the Oklahoma City location was opened. Stores that opened near
the time the Oklahoma City location opened are locations in San Antonio, Texas; Tampa,
Florida; Milwaukee, Wisconsin; Minneapolis, Minnesota; Toledo, Ohio; Birmingham, Alabama;
Baton Rouge, Louisiana; Miami, Florida; and Philadelphia, Pennsylvania.
The month before the opening of the Oklahoma City location, The Mutual Fund Store Radio
Show hosted by Adam Bold, began being broadcasted in Oklahoma City. The radio store has
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been the primary marketing tool used by the Oklahoma City store. Other marketing techniques
used by the Oklahoma City store have included: radio commercials, billboards, direct mailing,
Google advertisements and the company’s website, mutualfundstore.com. These tools have
mostly been used to market the weekly radio show. However, these marketing tools do not
specifically mention the store located in Oklahoma City. The store spends nearly $107,000
dollars in marketing each year. The amount of net inflow per marketing dollar is $26 for Quarter
3 2010. This places the store in the bottom third percent with how effective the store is with the
marketing dollars in terms of net flow (as compared to other Mutual Fund Stores).
As of 2010 the store had 229 clients and its total of Assets Under Management was $33.3
million. The stores average Assets Under Management was $145,000 per client, whereas the
company average is $200,000 per client. Oklahoma City’s AUM is well below the company
average AUM for the first two years. In comparison to other Mutual Fund Stores, Oklahoma
City’s AUM has increased at a slower rate. Since the store has opened, its AUM has been able to
increase by $10 million each year. During the 2007 economic recession the store’s AUM was at
its lowest point of $15.7 million. Since then, the store’s AUM has recovered and was $33.3
million by the end of 2010.
During Quarter 1 of 2010, the store was ranked second in the percentage of leads converted at
123%. In Quarter 2 of 2010, the store was average in the percentage of leads converted when
compared to other stores. However the Oklahoma City store ranked second to last in Quarter 3 in
the same category. The store is unable to be consistent with its success of closing leads
throughout the year and the year-end closing percentage was 54% with only 38 new clients. The
Oklahoma City location has been extremely successful in one category, retention rates of clients.
The store has been able to maintain a retention rate of 97% since opening.
Overview of Opportunities
The store has been averaging an increase of $10 million in assets under management each year.
It is a reasonable expectation for The Mutual Fund Store of Oklahoma City to increase their
change in AUM to $12+ million each year. The nearest stores to the Oklahoma City location
have increased their net AUM inflow by approximately $1 million per month. By acknowledging
this trend in stores in the Midwest region, it is reasonable to assume the Oklahoma City location
could attain this goal. Following this trend the Oklahoma City store would reach over $50
million in AUM during 2012.
In comparison to other Mutual Fund Stores in the Midwest region, Oklahoma City has the largest
population. When the Oklahoma City metropolitan area is included, the market size is 1.2
million. The store has the opportunity to have a percentage of leads converted of at least 60%
each quarter. In addition, we should set an objective of achieving greater consistency in quarterover-quarter lead conversion rates.
The store averages 20 leads per quarter. If the Oklahoma City location is able to increase its
leads per quarter by being more effective in its marketing, then ultimately the store AUM will
increase.
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Learning Objectives
1.
Learn how to operate as a true consulting group
The consulting group simulation will be the first time that each group member has been
exposed to a consultant setting. The team will be, first and foremost, trying to solve the
issues directly affecting the Mutual Fund Store of Oklahoma City location, while also
operating and interacting as a fully functional consulting group. The simulation will
undoubtedly bring great experience to our team members, but will ultimately drive
business for the client.
2.
Learn the various avenues of communication to ensure a rapid and effective
response
Throughout the project, the Cardinal Consulting group will be faced with deadlines and
use various forms of communication to relay messages to the client. The team will
operate as any other business would to provide timely feedback and work through any
obstacles that may arise.
3.
Learn to apply research, critical thought and creative thinking to a business
problem or opportunity
The Cardinal Consulting group must perform the crucial functions of data research,
critical thought processing, and analysis of prospective solutions to ensure the most
logical and realistic solution is presented to the client. These three things are key in
developing a solid solution and implementation plan. This process will give each team
member great insight to strategic planning in the business world.
4.
Learn how to communicate effectively in a business environment
As with any consulting group communication will be the driving force to ensure
successful completion of the project. The communication process must begin within the
confines of the group and continue with effective communication to the client. The
message of the team must be clear and precise in order to make sure our time and the
time of the client is being used efficiently. The Cardinal Consulting team will learn the
importance of communicating the step-by-step process used throughout this consultation.
Summary of Learning Objectives:
The Cardinal Consulting group understands there is no greater learning method than hands on
real world experience. The team looks forward to assisting the Mutual Fund Store of Oklahoma
City in any way possible, while developing each team member into a business leader ready for a
professional career.
Operations
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Division of Labor
Business Correspondence and Account Management: Mitch Hedrick and Kyle Sebring
Duties include:
● Client communication
● Group coordination
● Create status reports
● Deadline management
● Set/facilitate meetings
● Assist other team members on various tasks
Project Organization and Management: Katie Bond
Duties include:
● Expense and Time Tracking
● Organize Agendas for Meetings
● Monitor progress and report status/delays
● Assess resource requirement for activities
Strategic Planning and Market Analysis: Maddy Onumbu
Duties include:
● Analyze current business situation in relation to the market
● Evaluate competition
● Recognize and communicate assignment specific challenges, issues, and opportunities
● Develop strategies to solve problems
● Lead and take responsibility for writing formal plans with assistance from the rest of the
team
Research Development and Analysis: Hunter Kiely
Duties include:
● Develop research needs and objectives
● Create Research Methodology
● Develop current client survey
● Tabulation and Analysis of results
● Write Summary Report for the Research
Client Meetings (subject to change upon request)
Thursday, February 10th, 2011
● Introduction given by Gary Bussing
● Background information
● Project assignment
Thursday, March 10th, 2011
● Scope of Work presentation
Tuesday, April 19th, 2011
● Preliminary presentation
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Thursday, April 28th, 2011
● Final presentation
Reporting
Status Reports:
A weekly status report will be sent via e-mail to Gary Bussing, operator of The Mutual Fund
Store of Oklahoma City, to inform him of Cardinal Consulting’s progress, deadlines, and current
budget situation.
Invoices:
A weekly invoice will be sent to Gary Bussing via e-mail detailing the amount of time each
Cardinal Consulting group member has worked throughout the previous week.
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Research Categories and Key Questions
Cardinal Consulting plans to engage in a multidisciplinary approach to acquire information in the
following five key categories listed below. Essential questions are presented to better focus our
efforts in each category listed. To answer these questions, research shall be integrative of but not
limited to: data already presented by The Mutual Fund Store of Oklahoma City, gauging current
and past Mutual Fund Store of Oklahoma City customers via survey, consulting with outside
marketing and demographic firms, and an onsite visit.
1. Current & Previous Clients
Key Question: What has generated the most leads for The Mutual Fund Store of
Oklahoma City thus far?
Key Question: Why did our clients leave and are they telling people to stay away?
2. Brand Image and Attitude
Key Question: What does “The Mutual Fund Store” mean to people in the
Oklahoma City region?
Key Question: Does The Mutual Fund Store of Oklahoma City sell itself to the
largest possible market? What is that market?
3. Economic Factors
Key Question: How has economy and risk aversion affected attitudes towards
investing?
4. Media, Advertising, & Research
Key Question: What has and has not worked with The Mutual Fund Store of
Oklahoma City’s previous advertising campaigns and what can we
do to more directly link to the target market?
Key Question: What are the key demographic factors that can be exploited?
5. Radio Show Effectiveness
Key Question: How frequently do we get a new lead directly from the radio show
and how does the show help us maintain our current clients?
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Methodology – Four phases
Phase 1:
Generate survey and develop a method for distribution and collection
(Initial survey topics and questions can be seen in Appendix A)
Action Plan:
1.
2.
3.
4.
5.
Develop questions for survey
Review questions with client
Set up online survey via surveymonkey.com
Distribute survey via TMFS email
Have secretary follow up to receive feedback
Phase 2:
Distribute survey, compile data, and interpret relative trends
Phase 3:
Continue research based on new insights gained from client survey. At this stage
possible solutions and an action plan will begin to be formed.
Phase 4:
Presentation of a data summery, backing up a plan of action to increase lead
volume.
Deliverables
●
A clear statement of the challenge that The Mutual Fund Store of Oklahoma City faces
and why these struggles are occurring.
●
A thorough outlined answer to each Key Question listed under the five Key Categories,
with recommendations on how each issue can be solved.
●
Analysis and recommendations for future branding and marketing
●
A thorough action plan for increasing leads
Projected performance metrics if Cardinal Consulting’s recommended strategies are adopted
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Timeline
2/10/11
Initial meeting with Gary Bussing to discover assignment
3/10/11
Meeting with Gary Bussing to present Scope of Work
3/11/11 - 3/17/11
Begin competitive and market analysis
3/18/11
Issue market surveys
3/25/11
Collect market surveys
Begin development of potential strategies
Secondary analysis begins
4/8/11
Begin strategy development
4/19/11
Trial presentation
4/28/11
Final presentation
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Budget
Friday, 2/11/11 through Friday, 2/25/11:
Research Development: 30 hours
Projected Bill: $1,800
Competitive Analysis: 10 hours
Projected Bill: $600
Friday, 2/25/11 through Friday, 3/11/11:
Data Collection: 20 hours
Projected Bill: $1,200
Friday, 3/11/11 through Friday, 3/25/11:
Research Analysis: 20 hours
Survey Monkey
Projected Bill: $1,200
Friday, 3/25/11 through Friday, 4/1/11
Secondary Research: 20 hours
Projected Bill: $1,200
Friday, 4/1/11 through Friday, 4/19/11
Strategic Development: 20 hours
Projected Bill: $1,200
Preparation of Presentation and Deliverables
Projected Bill: $3,600
Total: $4,800
Estimated Final Bill:
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$10,800
Survey Questions and Discussion Topics
Demographical Information:
Age Range
Household Income Level
Major Employers
How long have you lived in Oklahoma City, Oklahoma?
Brand Image
What is the clients’ perception regarding The Mutual Fund Store of Oklahoma City?
Are the TMFS logo and slogan effective in branding?
Are the financial services provided seen as adequate?
What other services could be provided which are not currently available?
Do The Mutual Fund Store of Oklahoma City’s employees provide adequate service?
Lead Acquisition
How did you learn about The Mutual Fund Store of Oklahoma City?
What were the deciding factors ultimately leading you to choose The Mutual Fund Store?
Would you recommend The Mutual Fund Store of Oklahoma City to other potential
clients?
Media
How often do you hear The Mutual Fund Store’s advertisements?
Are the advertisements effective?
Do you actively participate in listening to The Mutual Fund Store Radio Show?
How often do you listen to The Mutual Fund Store Radio Show?
Do any of your acquaintances actively listen to the Radio Show?
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Appendix B
Cardinal Consulting
Don Huntington – Executive in Residence
Contact Information: huntingtond@william.jewell.edu (913) 522-8110
Hometown: Leawood, KS
Consultant and educator with 36 years experience in marketing, entrepreneurship, investment
management and executive leadership
Alumni of Southern Methodist University
Mitch Hedrick – Co-Account Executive
Contact Information: hedrickm@william.jewell.edu
(913) 314-9493
Hometown: Overland Park, KS
Major: Business Administration with emphasis in entrepreneurial leadership.
Expected Graduation Date: May 2011
Member of the William Jewell Football Team
Scholar Athlete
Dean’s List
Member of Phi Gamma Delta Fraternity
Kyle Sebring – Co-Account Executive
Contact Information: sebringk@william.jewell.edu
(314) 482-1813
Hometown: Lake St. Louis, MO
Major: Business Administration with an emphasis in Marketing
Expected Graduation Date: May 2012
Member of the William Jewell Track and Field Team
Scholar Athlete
Member of Lambda Chi Alpha Fraternity
Katie Bond – Project Manager
Contact Information: bondk@william.jewell.edu
(417) 840-1959
Hometown: Ozark, MO
Major: Business Administration with an emphasis in Marketing and Entrepreneurial Leadership
Expected Graduation Date: July 2011
Member of the William Jewell Women's Basketball Team
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Maddy Onumbu – Primary Role- Business Strategist
Secondary Role- Research Director
Contact Information: onumbum@william.jewell.edu
(402) 670-4907
Hometown: Omaha, NE
Major: Business Administration with an emphasis in Marketing and Economics
Member of Students in Free Enterprise
Hunter Kiely – Primary Role- Research Director
Secondary Role- Business Strategist
Contact Information: kielyh@william.jewell.edu
(913) 219-9373
Hometown: Overland Park, KS
Major: Science and Technology Management: Biology, Business Administration with an
emphasis in Finance, Applied Critical Thought and Inquiry
Member of Kappa Alpha Fraternity
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