10 Step Marketing Plan for

harold ceasar t. verayoJune 2010

Rold ON TIME

HCTV

What is a Mutual Fund?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 A vehicle for investing in stocks and bondsstocks 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 units 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 Each mutual fund has a specific stated objectivespecific 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 Some popular objectives of a mutual fund are -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

HCTV

Part 1:

Steps 1 to 5

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 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

I should be recognized as one of the top investors

2. My PTM’s NWEBaby boomers needTo 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 HCTVa 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.

Indirect: Mutual Funds, UITF’s, Insurance Companies, deposits, stocks, retail bonds

Variables: Age, Price/Minimum Investment, economic status, returns, specific objectives of the fund, accessibility & availability, marketing promo

HCTV’s Competitive Position Map

Price/ SC Matrix

Class A Class B Class C up Class C dwn

High price

Low Price

HCTV Bond Fund

Philam Bond Fund

Sunlife Prosperity Bond

HCTV’s Dominant Position as shown in this competitive map

HCTV Bond Fund

Philam Bond Fund

Sunlife Bond

Consistency of Returns      

Affordability      

Accessibility      

Distribution Channel     

Competent Fund Managers      

Promo      

Advertising Campaign      

Availability of Statements      

Prudent Risk Management      

Other 2 brands target the save money positioning and ad campaign

HCTV’s Unique PositioningHCTV 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 Peso Bond Funds Market ShareShareAS OF DECEMBER 31, 2009AS 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 ReturnsCumulative Long-Term Returns

Past 3 Years 15%

Past 5 Years 41%

Past 10 Years 110%

AS OF DECEMBER 31, 2009AS OF DECEMBER 31, 2009

Market SizeMarket Size

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

21.224.2

30.032.9

34.7

52.455.9

38.1

48.0 46.8

40.338.5

28.8 29.8 29.7

0

5

10

15

20

25

30

35

40

45

50

55

60

In B

illio

n P

esos

Peso Bond Fund Industry NAV GrowthPeso Bond Fund Industry NAV GrowthAS OF DECEMBER 31, 2009AS 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

HCTV

Direct:

Indirect:

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 CompositionPortfolio 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%

Annual Performance vs Annual Performance vs BenchmarkBenchmark

91 d T-bill91 d T-billPhp212.72Php212.72

ALFM Peso ALFM Peso Php243.26Php243.26

170

180

190

200

210

220

230

240

250Fund

91-Day Treasury Bills

ALFM 91-Day TBill

2009 4.75% 3.65%

2008 4.21% 4.26%

2007 5.16% 2.68%

2006 13.44% 4.41%

2005 8.01% 4.78%

2004 7.63% 5.85%

7. Price- HCTV is 100% premium priced/initial investment Minimum Participation: P50,000 

Min. Additional Participation: P10,000  Min. Holding Period: 180 days  Sales Load: 0  Management Fee: 1.5%  Early Redemption Fee: 1% 

HCTV is priced at 100 premium over Philam Peso bond Fund and Sunlife Prosperity Fund with aim of maximizing profits in all market segments

8a. Promo

This highly coveted award befits an This highly coveted award befits an organization that boasts of toporganization that boasts of top--caliber fund caliber fund managers and seasoned practitioners. managers and seasoned practitioners.

With over P360 Billion in assets managed, With over P360 Billion in assets managed, BPI Asset Management continues to trailBPI Asset Management continues to trail--blaze the countryblaze the country’’s asset management s asset management industry.industry.

So as investors continue to trust our So as investors continue to trust our name, we carry on with our name, we carry on with our commitment to build their wealth commitment to build their wealth and realize their dreams.and realize their dreams.

Once again, BPI has been given the Once again, BPI has been given the Gold distinction in the Investment Gold distinction in the Investment Fund Category in the ReaderFund Category in the Reader’’s s Digest Trusted Brands in the Digest Trusted Brands in the Philippine Market.Philippine Market.

Competitor’s Ads

9. Placea) The product is distributed nationwide,

uses the 900++ BPI branches as platform to reach clients.

b) Upon completion of the project (within the year), clients can access their account anytime, anywhere through the online channel of the bank.

c) Inked partnership with other institutions to distribute the product (Citibank, BPI Capital, etc.)ehavioral

HCTV Bond Fund is a Market Leader HCTV’s aims is to continue dominating the

bond fund market by instituting competitive strategies to maintain its substantial market share.

It capitalizes on a wide distribution channel through the BPI branches scattered around the country.

Tactically priced at premium and banks on the consistent performance/returns of the portfolio.

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

10 Step Marketing Plan for

harold ceasar t. verayoJune 2010

Rold ON TIME

HCTV