Garmin

GARMIN – Follow the Leader Garmin Global Positioning System’s (GPS), began as a brainstorming session between a few engineers playing a game of cards and has grown into a global technological phenomenon since its inception in 1989. Starting with only a handful of employees, Garmin has expanded its work force consisting of more than 7000 employees by 2007, all dedicated to the same objective; To create navigation and communication devices that can enrich our customers’ lives. As a group, the decision to choose Garmin was rather easy. We wanted to select a company or product that is relatively new in the consumers’ eye that can provide a distinct need in a market that is not over saturated by competitors. Garmin is considered an innovator in the GPS market and doing a study based on a well known, high quality product, provided interest between our groups. Garmin focuses on embracing lifestyles of their consumers, whether it be Automotive; helping people reach their destination with ease, Marine; supplying essential charts and data, Aviation, Fitness, Outdoor Recreation, to the ever evolving Wireless Smart Phone Applications, first time users quickly realize the cache of having a compact and portable unit, making their journey, wherever it may be more enjoyable. Market Segmentation Garmin is making strong progress in gaining the opportunity to serve a wide range of people in many different situations, whether it be driving across country on vacation, going for hike in a remote Mountain Park, setting Sail on the Pacific Ocean, or even going for a nice bike ride through a park. The diversity of the GPS system has really taken off in the past few years with the advancement of technology, which has really benefited Garmin in targeting â€Å"Whom we serve† Looking at the Segmentation Basis we have reviewed (Demographic, Geographic, Psychographic, and Behavioral) we can determine how Garmin Markets their broad range of products in the open market. Demographic – As a company, Garmin has a fairly broad Demographic Segment because of their multiple products. Garmin would segment its buyers into a non gender bias, over the age of 16, with all family life cycles included, with an average income, focusing on the baby boomers and the Y Generation because of its Technological advancement. Geographic – Garmin markets itself in certain regions around the world. These regions are; North America, Europe, Australia/New Zealand, Asia, and the Middle East. Garmin has a process which they call vertical integration, which allows Garmin to maintain a high level of quality and respond more quickly to the ever-changing marketplace. This is especially important in their Company Offices located in Kansas City, USA, Southampton, UK, and Sijhih, Taiwan. Psychographic – When trying to divide itself into different market groups, there are certain classes, lifestyles, and personalities Garmin would generally market. As a Social Class, Middle Class and up would be the main target, Lifestyles – Achievers would be the group that generally uses the Garmin product, due to their ambitious personalities. Behavioural – The behavioural segment basis is probably the most relevant when looking at whom to market their product to. Convenience is a tool that helps Garmin sell their product to provide them with accurate, thorough information, providing customer loyalty and regular use. A Garmin user would have a positive attitude toward the product as it is making there busy lives easier. â€Å"Garmin is a leading, worldwide provider of navigation, communications and information devices, most of which are enabled by Global Positioning System (â€Å"GPS†) technology. Garmin designs, develops, manufactures and markets a diverse family of hand-held, portable and fixed-mount GPS-enabled products and other navigation, communications and information products for the automotive/mobile, outdoor/fitness, marine, and general aviation markets. † – Garmin 2007 Annual Report to Shareholders. This statement proves that the R & D department for Garmin is on the right track, assuring the Shareholders they are targeting the correct markets in today’s world. Garmin has developed a unique style that takes a systematic approach to R&D. This helps them close the innovation gap with its competitors. They have been able to do this by partnering their manufacturing and engineering teams, and integrating their product development teams in a multidisciplinary fashion to work on newly approved designs. Garmin has achieved a market position and a history of consistent growth in revenues and profits by offering ergonomically designed, user friendly products with innovative features and designs covering a range of applications and price points.