Transcript Marketing Plan - Keith E. Bergh

Garmin Trail
Trail Tracker
Tracker
Marketing
Marketing Plan
Plan
Navigate the mountain with precision …
Keith Bergh, Whit Bertch,
Carrinicole Pittman, Michael Rennaker
December 7th, 2007
Screen
Menu/Quick
Info Buttons
Scroll Wheel
Zoom In/Out
Navigation
Arrows/Select Button
USB Port to load
daily trail maps
Power Input
What is our Business?
Company Background
“To create navigation and communication devices that
can enrich our customers’ lives.”
• Founded in 1989 by Gary Burrell and Dr. Min Kao
• Provider of devices with Global Positioning Systems
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Company Background
• Principles of innovation, convenience, performance,
value
• Automotive
• Aviation
• Marine
• Fitness
• Outdoor Recreation
• Wireless Applications
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Company Background
Adding to Garmin’s Increasing Financial Success
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Where are We Now?
SWOT Analysis
Internal Factors
Strengths
Management
Experienced management, board, and staff
Offerings
GPS and WAAS-enhanced navigation,
communication, and information devices
Marketing
Market shares in Marine, Recreation and Outdoors, Fitness,
Automotive, and Aviation industries; Strong brand equity
Personnel
Employs 4,750 associates worldwide
Finance
All time record sales of
$1.77 billion in 2006
Manufacturing
Introduced more than 70 new products in 2006
R&D
Spent $113.3 million in R&D in 2006;
(compare with $32.2M spent in R&D in 2002)
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SWOT Analysis
Internal Factors
Weaknesses
Management
Rapid company growth may strain management resources
Offerings
Devices may be too complicated for casual users
Marketing
There exists only one Garmin retail store worldwide
Personnel
Employee salaries and wages
significantly cut net sales margins
Finance
All time record total operating expenses
of $327.8 million in 2006
Manufacturing
Products become quickly outdated
R&D
Need for constant innovation to
maintain and increase market shares
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SWOT Analysis
External Factors
Opportunities
Consumer/Social
Constant increase in demand for new products;
increasing trend for GPS navigation devices
(particularly in automotive industry)
Competitive
Strong brand equity and growing popularity
Technological
New technologies enable product combinations
(ex. GPS and Bluetooth)
Economic
Consumers value advances in navigation, communication
and information technology
Legal/Regulatory
Government discontinued Selective Availability in 2004
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SWOT Analysis
External Factors
Threats
Consumer/Social
Products may be too complex for some consumers
Competitive
Competitors may make cheaper,
simpler devices and capture greater market share
Technological
Competitors have equal access to available technology
Economic
Increasing numbers of people are in debt and may not have
enough disposable income for leisure products
Legal/Regulatory
International partners of Garmin may
have legal restrictions the doesn’t have
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Environmental Scan
Social Forces
Economic Forces
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Environmental Scan
Technological Forces
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Environmental Scan
Competitive Forces
Political Forces
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Environmental Scan
Regulatory Forces
Natural Forces
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Plan Objectives
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Target Market
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Industry Analysis
Trends in GPS Navigation
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Buyer Behavior
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Competitor Analysis
• Products range from $100 to over $6000
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Where do We Want to Go?
Business Portfolio Analysis
• Automotive GPS: 46-62% market share
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Dominating the GPS Market
• Rapidly Growing Industry
– 170% Increase in Automotive
– 20% Increase in Outdoor/Fitness
– 5% Increase in Marine
– 2% Increase in Aviation
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Related Products
• Forerunner Series
• eTrex/ForeTrex Series
• Astro GPS DC/20
• Rhino
• GPSMAP Series
• Nuvi Series
• Zumo
• Streetpilot Series
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Growth vs. Market Share
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Product/Market Analysis
PRODUCTS
MARKETS
Current
Auto-navigation
systems: Seek
Current contracts w/ car
manufacturers
New
Market Etrex to
mountain bikers and
other cyclists
New
Update software to
include live traffic
updates
Trail Tracker- GPS for
skiers with new
interface
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How do We Go There?
Product
• New Market
 Product Development
– Create Consumer Awareness
– Stimulate Purchase
• No Competition
– Primary Demand
 Significant Education Required
 Makes Introduction Period Longer
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Product
• Rugged
• Intelligent
• Trustworthy
Garmin
- Leading Producer of Innovative &
Functional GPS’ for all forms of life
= Brand Loyalty
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Pricing
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Pricing
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Pricing
$299.99
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Place
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Channels
Indirect Channels
Garmin
Electronic
Marketing
Garmin
Garmin
Wholesaler
Online
Wholesaler
Retailer
Online
Retailer
Consumer
Consumer
Retailer
Consumer
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Promotional Tactics
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Promotional Tactics
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Promotional Tactics
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Positioning
“The most accurate and thorough navigation system on the Mountain
with features that make your paper trail map obsolete.”
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FAB Sheet
Features
Advantages
Benefits
Waterproof/Rugged Design
Prevents damage and malfunction
$
Internal 8gb Memory
Allows upload of numerous trail maps
$
GPS Tracking
You know where you are at all times
Time
Updated Information
Trail Closures, conditions, weather, etc. updated daily
Time
Emergency Button
Let’s ski patrol know when you need them instantly
Time & Life
Long Battery Life
Allows you to ski the whole day with the product
Time
Toggle View of Trail Map
Allows you to visualize your location in 4 modes
Time & $
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Implementation
Resources Required
• Vertically Integrated Approach to Manufacturing
– Every step within the control, marketing, manufacturing &
processing is run within the company
– Benefits
• Reduced Time-to-Market
• Design & Process Optimization
• Increase Logistical Agility
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Gantt Chart
WBS
Tasks
Task Lead
R&D
Director of
Operations
Task 1
1.1
Research
1.2
Design
1.3
Test Prototype
1.4
Mass Production
Task 2
Advertising
2.1
Sports Magazines
2.2
Ski Retail Stores
2.3
Ski Resorts
Task 3
Retail
3.1
Ski Resorts
3.2
Sporting Stores
3.3
Ski Rentals
3.4
Electronic Stores
7/1/2008
12/1/2008
7/1/2009
12/1/2009
5/31/2010
Product
Manager
Retail
Manager
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Break Even Analysis
• Selling Price of $299.99 and a budget of $3M
Break-Even Point Formula
FC/(P – UVC)
Fixed Cost
$3,000,000.00
Unit Price
$299.99
Unit Variable Cost
$180.00
$3,000,000/
($299.99 - $180.00) = 25,003 Units
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Organization Chart
Board of
Directors
President &
CEO
Director of
Operations
Engineering &
Development
Director
Finance &
Administration
Vice President
Marketing
Aviation
Automotive
Marine
Director Sales
Outdoor
Fitness
Wireless
Product Manager:
Trail Tracker
Associate Product
Manager
Marketing
Assistant
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Evaluation & Control
Data to Monitor
• Sales doubling every year for first 4 years
• Maintain at least 75% market share through 5 years
• Profit Goals:
Year
1
2
3
4
5
$ (in Millions)
.75
2.00
4.20
9.00
14.00
• Sales monitored by season
- Midpoint check-ups at the end of January
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Marketing Mix Modifications
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