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Marketing Plan

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  1. Garmin Trail Tracker Garmin Trail Tracker Marketing Plan Marketing Plan Keith Bergh, Whit Bertch, Carrinicole Pittman, Michael Rennaker Navigate the mountain with precision … December 7th, 2007

  2. Scroll Wheel Zoom In/Out Screen Navigation Arrows/Select Button Menu/Quick Info Buttons Power Input USB Port to load daily trail maps

  3. What is our Business?

  4. Company Background Garmin’s Mission Statement: • Founded in 1989 by Gary Burrell and Dr. Min Kao • Provider of devices with Global Positioning Systems “To create navigation and communication devices that can enrich our customers’ lives.”

  5. Company Background • Principles of innovation, convenience, performance, value Core Competencies: • Automotive • Aviation • Marine • Fitness • Outdoor Recreation • Wireless Applications

  6. Company Background Adding to Garmin’s Increasing Financial Success • Posted 16th consecutive year of revenue growth • All-time record of sales of $1.77B in 2006 • $745.2M revenue increase from 2005 to 2006 • Company’s growth has expanded by 73% • Outdoor/fitness category grew 20% in 2006 • Proves enthusiasts are seeking the Garmin products • Successful market to penetrate

  7. Where are We Now?

  8. SWOT Analysis

  9. SWOT Analysis

  10. SWOT Analysis

  11. SWOT Analysis

  12. Environmental Scan Social Forces • Gen X & Y want to have new technology • Wealthy are most likely to buy the Garmin Trail Tracker because it’s a leisure product Economic Forces • Real Estate Struggle • Gas Oil Prices • Education Costs • Iraq War

  13. Environmental Scan Technological Forces • 50 Channel GPS Receivers • Battery Life is Longer • Thinner Devices • Larger Clearer Screens • Additional functions including TV, Bluetooth, Radio • Touch Screen & Voice Activation

  14. Environmental Scan Competitive Forces • Easy Entry • Lots of Substitutions (over 130 GPS Brands) • Equal Access to Technology • Increased Need for Differentiation Political Forces • Selective Availability (SA)

  15. Environmental Scan Regulatory Forces • Madrid Protocol 2003 • BBB • Sherman Act • Consumer Goods Pricing Act Natural Forces • Earthquakes, Floods, Fires, Hurricanes, Tsunamis • Result: Decreased Disposable & Discretionary Income

  16. Plan Objectives Financial: • 75% Market Share by 5th Year of Production • Increase Stock Price Non-Financial: • Remain Premium Supplier of GPS Goods • Reigning Distributor of Ski-GPS Systems • Construct More Garmin Stores • First 3 Years: Expand Trail Tracker Distribution in N.A. • 5th Year: Penetrate Foreign Ski Destinations

  17. Target Market ~ Large Ski Resorts • Skiing Baby Boomers: Age 42-60 • Business Travelers/Family Vacationers • Skiing/Snowboarding Generation X: Age 25-41 • Business Travelers/Vacationers • Heli-skiers • Safety-Conscious Parents • Skiing/Snowboarding Generation Y: Age 16-24 • Young Adults from Upper-Income Families • Aggressive Explorers of the mountain

  18. Industry Analysis Trends in GPS Navigation • Globalization has led to creation of GPS • Originally created for the U.S. & Allied Military Forces • Used by civil, military, commercial & scientific users

  19. Buyer Behavior • Baby Boomers: • Health and Safety Conscious, Curious, Bargain-Seeking • Generation X: • Entrepreneurial and Tech-Friendly, Eager to try New Technology • Generation Y: • Tech Generation, Fast-Learning and Adventurous

  20. Competitor Analysis • Products range from $100 to over $6000 Major Brand Competitors: • Magellan • Automotive, Hiking, Camping & Biking • TomTom • PDA/Mobile & Automotive • Lowrance • Automotive, Marine, Aviation & Outdoor • Navman • Marine & Automotive • Target countries, however, are outside U.S.

  21. Where do We Want to Go?

  22. Business Portfolio Analysis • Automotive GPS: 46-62% market share

  23. Dominating the GPS Market • Rapidly Growing Industry • 170% Increase in Automotive • 20% Increase in Outdoor/Fitness • 5% Increase in Marine • 2% Increase in Aviation

  24. Related Products Recreational: • Forerunner Series • eTrex/ForeTrex Series • Astro GPS DC/20 • Rhino Aviation: • GPSMAP Series Automotive: • Nuvi Series • Zumo • Streetpilot Series

  25. Growth vs. Market Share

  26. Product/Market Analysis

  27. How do We Go There?

  28. Product Introduction Stage of PLC: • New Market  Product Development • Create Consumer Awareness • Stimulate Purchase • No Competition • Primary Demand High-Learning Product • Significant Education Required • Makes Introduction Period Longer

  29. Product Branding Brand Personality • Rugged • Intelligent • Trustworthy Brand Equity • Garmin • Leading Producer of Innovative & Functional GPS’ for all forms of life • = Brand Loyalty

  30. Pricing Objectives • Profit • Long-run Profits • Sales • Proper Pricing  Increase in Market Share & Profit Constraints • Newness of the Product • Marketing Costs • - Heavy Promotion & Guerilla Marketing

  31. Pricing Demand & Revenue • Should be Moderate • Consumers might prefer free & easy paper trail maps • Exclude some demographics • Target Pricing • Estimates the price a consumer would pay • Based on mean value of other Garmin GPS products • Higher D & R Possible • Proper Pricing • Proper Marketing & Awareness Demand-Oriented Price Level

  32. Pricing Listed Price • Quantity Discounts • “Buy 2 and Save 10% on both Trail Trackers” • “Buy and get the fourth one free” • Seasonal Discounts • Reduce price to $250 during non-ski season • Maintain sales $299.99 • One-Price Policy (Fixed Pricing) Adjustments in Price

  33. Place • Manage Distribution in a Constrained Environment • Retailers • REI, EMS, Dick’s Sporting Goods, The Sports Authority, Sports Chalet, North Face Stores • “Boutique” Ski Shops • Populated near Ski Mountains & Resorts • Where large target market resides • Online • Amazon, Buy.com, BackCountry Outlet, Ski Websites, etc. • Selective locations Geographically • North America (US & Canada) • Eventually internationally

  34. Channels Electronic Marketing Indirect Channels

  35. Promotional Tactics Advertising • Television • Flight or Pulse Schedule • Seasonal during ski season • Intense Oct. – Dec. • Magazines • Ads in ski & snowboarding magazines • Internet • Ski & snowboarding websites • Ski Resorts websites • Product Integration • Usage in an applicable movie

  36. Promotional Tactics Sales Promotion • Coupons • Found in Magazines • Sample • Promotional tents at Ski Resorts • Free trial of Trail Tracker during ski day • Sweepstakes & Contests • “All inclusive ski vacation of a lifetime” • Enter online after purchase of product • Product Placement • Oprah’s “Favorite Things” • Generates large awareness & exhibits usage

  37. Promotional Tactics Public Relations • Hire PR Agency or Individual • Write-ups of product in Magazine and Newspaper • Get product at ski & snowboard venues • Product description on TV news and other shows • Ski Resort Marketing • Engagement marketing • Consumer can test the product

  38. Positioning • Head-to-head Positioning • Compete with free trail maps at Mountains • Very little competition from similar products “The most accurate and thorough navigation system on the Mountain with features that make your paper trail map obsolete.”

  39. FAB Sheet

  40. Implementation

  41. 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 Manufacturing Warehouses • England • Shijr & Jhongli, Taiwan • Kansas (Global Headquarters) • Oregon

  42. Gantt Chart

  43. Break Even Analysis • Selling Price of $299.99 and a budget of $3M $3,000,000/ ($299.99 - $180.00) = 25,003 Units

  44. Organization Chart

  45. Evaluation & Control

  46. Data to Monitor • Sales doubling every year for first 4 years • Maintain at least 75% market share through 5 years • Profit Goals: • Sales monitored by season • - Midpoint check-ups at the end of January

  47. Marketing Mix Modifications • First year dedicated to increase awareness of the product • Send samples to major ski resorts • Hold information sessions • Receive feedback on Trail Tracker • Able to assess product weaknesses • Opportunities to modify product • Observation of which demographic responds strongest • Modify marketing campaign