Modern marketing and sales planning
The Bank sees itself as an allround central service provider in the investment fund business of the German saving banks organisation (Sparkassen Organisa- tion). With our newly-positioned planning and event concept in conjunction with our marketing partners, the German savings banks and landesbanks, we meet the needs of state-of-the-art market and marketing partner-oriented busi- ness methods. Through the implementation of our so-called strategy circle, the savings banks and landesbanks are even more closely integrated into our syste- matic marketing and planning process.
In round one, in spring 2001, future products, trends and strategies for the coming years were discussed. A second round in summer 2001 will focus on operational product and marketing planning for the coming year as well as strategy realisation in the other marketing mix areas.
The key marketing and thematic issues in 2000 were the core investments via funds of funds, in particular the launch of DekaStruktur: 2. We also finessed our product range for new economy sector funds with Deka-Technologie CF/TF, DekaTeam-BioTech and Deka-Internet CF/TF. With a view to differentiating more sharply between the ratings of our bond fund products, we also launched funds which invest in emerging market bonds or in corporate bonds.
With the market launch of DekaStruktur: 3, our major focus in 2001 will remain on funds of funds. We also plan to address the structured expansion of our sector fund range.
Successful brand development
The investment industry is booming, a fact also documented by the large number of German companies and the sharp rise in the number of foreign companies moving into the German market. As there is hardly any difference between their products any more, a company’s brand – its image and market position – is becoming increasingly key and this is why a major portion of our marketing energy in 2000 went into building the Deka Investmentfonds brand. Our goal has been and remains to support our partners, the savings banks and landesbanks, in developing their investment expertise and through the emotional and physical proximity to savings banks make Deka Investmentfonds stand out from its competitors.
TV spots, advertising themes, and savings banks branch advertising have made their mark: Deka is the most well-known investment fund company in Germany. Since the launch of the campaign in November 1999, spontaneous recognition levels have doubled. At the end of last year, one in thirteen polled remembered having seen Deka advertisements. And the figure has doubled since the beginning of this year and risen fivefold since the beginning of the campaign.
Germany’s best known fund brand
63 Investment Fund Business | Marketing
As a result of these activities, we have achieved our goal of emphasising our close relationship with savings banks. The public perception that "Deka" and "savings banks" belong together is far stronger now (38 per cent) than when the campaign began (26 per cent).
Expansion of Group business
2000 was marked by conceptual planning and broadening sales via the sales representatives of public-sector insurance companies and regional public-sector building societies (Landesbausparkassen). The realisation that more and more public sector insurers are today successfully selling fund-based life insurance lay behind our policy of increasing Deka Investmentfonds sales through this parti- cular marketing channel. Our concept is one which is transactionally optimal for all partners – insurers, savings banks and DGZ·DekaBank – and we are confi- dent that its successful implementation will enhance the marketing activities of the insurance representatives.
The fund marketing through partner companies concept is also becoming increasingly important for regional public-sector building societies. After some societies successfully tested the joint sale of mortgage loans and fund investment, we are now working together to successfully develop our co-operation.
A stake in the future
DGZ·DekaBank has cemented its co-operation with Switzerland’s cantonal banks by taking a 10 per cent stake in their investment arm, Swissca Holding AG. We have been co-operating successfully since 1998 in the mutual marketing of each other’s products.
The stake gives our partnership a new, international dimension. With the mutual opening-up of marketing channels, Deka Investmentfonds will for the first time have access to a highly developed marketing network beyond Germany’s borders. And in return our product range will now include selected Swissca pro- ducts. Through both sets of shareholders – Swissca via the cantonal banks and we through the savings banks – we will have access to the largest branch network in our respective home markets.
With the purchase of a 40 per cent share in WestInvest Gesellschaft für Investmentfonds mbH, a subsidiary of Westdeutsche Immobilienbank, we have launched a two-brand strategy in the property fund segment. Thanks to the accumulated funds of Deka Immobilien Investment GmbH (formerly Despa) and WestInvest, the savings banks organisation now has access to both the most comprehensive and the most target group-specific product range in the open- end property funds segment.
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Well-established partnerships
Thanks to our co-operation with US investment bank J. P. Morgan and Geneva- based Lombard Odier & Cie., launched in 1997, and through our Irish sub- sidiary Deka International (Ireland) Ltd., Dublin, we continued to successfully market mutual funds under the DekaTeam and DekaLOC brands last year. The volume of funds marketed by all three partners totalled around €15 billion as at 31 December 2000.