Case 7.2

Edward Jones

Edward Jones is one of the largest investment firms in the United States, with over 4,000 branch offices in this country, Canada, and the United Kingdom. It is the only major brokerage firm that exclusively targets individual investors and small businesses, and it has nearly 6 million clients. Edward Jones' philosophy is to offer personalized services to individual clients starting with a one-on-one interview. During the interview, investment representatives seek to identify each client's specific goals for investing. Richard G. Miller, one such representative, says that he needs to thoroughly understand what a client wants before he can build an investment strategy for that person. His initial conversation starts with, "Hey, how are you?" Gregory L. Starry, another representative, confirms the Edward Jones philosophy: "Most of my day is spent talking with and meeting clients [rather than placing stock trades]."

Only after learning these goals do the representatives design an investment strategy that will provide a client with income, growth, and safety. Each client's goals also evolve over time. Young people are focused on earning enough money to make a down payment on their first home or to buy a car. Clients in the 35 to 45 age range are concerned about getting their children through school and about their own retirement. Those in retirement want to make sure that they have an adequate income level. Miller notes, "It's not the timing in the market, but the time in the market" that will help clients achieve their goals.

Questions

1. Many people in minority groups, including African Americans, Hispanic Americans, Asian Americans, and Native Americans, do not invest. What exploratory research should Edward Jones do to develop business with these minority markets?

2. Another group with low investment activity includes those who stopped their education at the high school level. What factors should Edward Jones representatives consider in designing focus groups with these potential clients?