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 ContentsOverview

Project Initiation 3

Project Assignment 3

Current Situation 3

Overview of Opportunities 4

Learning Objectives 5

OperationsDivision of Labor 6

Client Meetings 7

Reporting 7

ResearchResearch 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 quarter-over-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 Objectives1. 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 LaborBusiness Correspondence and Account Management: Mitch Hedrick and Kyle SebringDuties 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 BondDuties 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 OnumbuDuties 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 KielyDuties 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

ReportingStatus 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 QuestionsCardinal 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 ClientsKey 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 AttitudeKey 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, & ResearchKey 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. Develop questions for survey2. Review questions with client3. Set up online survey via surveymonkey.com4. Distribute survey via TMFS email5. Have secretary follow up to receive feedback

Phase 2: Distribute survey, compile data, and interpret relative trendsPhase 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 surveysBegin development of potential strategiesSecondary analysis begins

  4/8/11 Begin strategy development

  4/19/11 Trial presentation

  4/28/11 Final presentation

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BudgetFriday, 2/11/11 through Friday, 2/25/11:

Research Development: 30 hours  Projected Bill: $1,800Competitive 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: $10,800

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Survey Questions and Discussion Topics

Demographical Information:Age RangeHousehold Income LevelMajor EmployersHow long have you lived in Oklahoma City, Oklahoma?

Brand ImageWhat 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 AcquisitionHow 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?

MediaHow 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 ResidenceContact Information: huntingtond@william.jewell.edu (913) 522-8110Hometown: Leawood, KSConsultant and educator with 36 years experience in marketing, entrepreneurship, investment management and executive leadershipAlumni of Southern Methodist University

Mitch Hedrick – Co-Account ExecutiveContact Information: hedrickm@william.jewell.edu (913) 314-9493Hometown: Overland Park, KSMajor: Business Administration with emphasis in entrepreneurial leadership.Expected Graduation Date: May 2011Member of the William Jewell Football TeamScholar AthleteDean’s ListMember of Phi Gamma Delta Fraternity

Kyle Sebring – Co-Account ExecutiveContact Information: sebringk@william.jewell.edu (314) 482-1813Hometown: Lake St. Louis, MOMajor: Business Administration with an emphasis in MarketingExpected Graduation Date: May 2012Member of the William Jewell Track and Field Team Scholar AthleteMember of Lambda Chi Alpha Fraternity

Katie Bond – Project ManagerContact Information: bondk@william.jewell.edu (417) 840-1959Hometown: Ozark, MOMajor: Business Administration with an emphasis in Marketing and Entrepreneurial Leadership Expected Graduation Date: July 2011Member of the William Jewell Women's Basketball Team

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Maddy Onumbu – Primary Role- Business Strategist Secondary Role- Research DirectorContact Information: onumbum@william.jewell.edu (402) 670-4907Hometown: Omaha, NEMajor: Business Administration with an emphasis in Marketing and EconomicsMember of Students in Free Enterprise

Hunter Kiely – Primary Role- Research Director Secondary Role- Business StrategistContact Information: kielyh@william.jewell.edu (913) 219-9373Hometown: Overland Park, KSMajor: Science and Technology Management: Biology, Business Administration with an emphasis in Finance, Applied Critical Thought and InquiryMember of Kappa Alpha Fraternity

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