Plan B™
The Agency Alternative
VK PACT
Background
Along with other top U.S. mutual fund companies, Van Kampen Investments faced heightened scrutiny from federal regulators during 2003. Tough oversight legislation on fund director independence and “soft dollar” compensation to retailers and wholesalers was consistently being proposed and sent to committee.
Given this environment, not only was investor confidence down, but also morale among fund representatives. Van Kampen brand management knew their continued marketplace success depended on clearly separating themselves from all the negative publicity, and proactively developed an innovative operational approach — performance-based compensation. To memorably communicate it to multiple audiences, they looked to Plan B.
Business Objectives
• Announce the new Van Kampen performance-based compensation operating model
• Instill confidence in Van Kampen among both consumer investors and fund wholesalers and representatives
• Position Van Kampen as the mutual fund company that is not standing idle, but acting in everyone’s best interest.
Insight
Plan B quickly recognized that Van Kampen’s performance-based compensation model represented a dramatic change. With advisor commissions based on both net sales and a performance-indexed formula, consumers could be assured they were receiving fair value.
From the start, Plan B sought a simple, strong marketing strategy that would deliver the message without blurring it. The Van Kampen performance approach needed an ownable name that would translate across all marketing channels while supporting the existing “Generations of Experience” position.
This is why Plan B developed a “sub-branding” print advertising campaign to communicate the Van Kampen model. This campaign was designed to powerfully leverage the appeal of performance-based compensation while remaining in alignment with Van Kampen’s current consumer messaging and corporate philosophy.
Strategy
• Create a highly memorable icon that would capture the essence of the new performance-based compensation model’s fair value promise.
• Translate this icon across both retail and wholesale marketing channels consistent with Van Kampen’s relationship-based position.
• Announce this unique approach in an impactful yet non‑invasive manner.
Approach
After extensive research and name generation activities, Plan B created the acronym PACT — for Performance Adjusted Compensation Terms. When used in either logo or written form, Plan B found that it says what it is and does what it says — making it an ideal point of reference for all campaign messaging.
The PACT acronym was integrated into the Van Kampen graphic standards formula, using appropriate fonts, colors and proportion. Plan B developed a series of dramatic print ads for both consumers and financial advisors, featuring a subtle yet effective use of the PACT logo along with clear copy that emphasized Van Kampen’s commitment to client-first best practices.
For consumer messaging, one print ad featured the headline “One Company Believes That ‘Mutual’ Ought To Apply To More Than Funds.” The PACT logo jumped out from the subhead using spot color. And the supporting copy took the tone “Any company can say they succeed through your success. But at Van Kampen, we prove it by basing compensation on fund performance.”
Another consumer print ad featured the headline “Sure, All Fund Managers Are Judged By Performance. We’re Just Taking It One Step Further.” The supporting copy continued, “Van Kampen portfolio managers live, breathe and sleep fund performance. And now, their compensation depends on it, too.” Then to speak to wholesalers and representatives, an ad focused on Van Kampen’s business-building commitment featured the headline “One Company Believes Pay-For-Performance Funds Should Come With Pay-Close-Attention Service.”
Results
• The PACT acronym was quickly understood by both the consumer and financial advisor audiences, and received a highly positive reception.
• PACT was easily able to be integrated into additional Van Kampen marketing messages, and supported follow-up service and compensation communication.
• The print advertising execution was able to generate renewed confidence in Van Kampen’s ability to meet the changing needs of consumers, retailers and wholesalers.