Product is one component of the marketing mix, but it can be the most important one, generating sales well beyond anything that can be attributed to sales and marketing activity. Exchange traded funds are one of those transformative products and they are pressuring product strategies industry-wide.
The rapid growth of the asset management business and high profit margins have allowed the proliferation of legions of mediocre products. Failures have been almost inconsequential for many firms, but the climate is changing.
Product positioning and rationalization will take on a much more prominent role in the years ahead. Lower priced alternatives, growing sophistication, more discipline investment philosophies and a rapidly maturing market place will accelerate and magnify the impact of poor product strategies.
T Hayes Consulting has experience distributing unit investment trusts, mutual funds, closed-end funds, separately managed accounts and exchange traded funds for every asset class. We have worked with and studied outstanding product strategies and failed product strategies. We have seen new product introductions ignite growth and we have seen them distract and derail organizations from dealing with their real problems.
We understand the complexities of performance, product application and an evolving market place. Most importantly, we can help clients more completely understand the relative strengths and weaknesses of their own value propositions compared to the leading exchange traded fund sponsors.