Garmin 2002 Annual Report Download - page 12

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Garmin’s consumer products are sold through distributors and
dealers around the world. Our leading U.S. retailers include Bass
Pro, Best Buy, Boater’s World, Cabella’s, Dick’s Sporting Goods,
Gart Sports, REI, Wal-Mart and West Marine. In 2002, Garmin
added Circuit City and Target to its growing family of retailers.
Some of the leading boat manufacturers continue to make
Garmin fishfinders and combination GPS chartplotter/sounder
products part of their standard equipment package. Last year,
Garmin signed agreements with 16 new boat OEMs. It also
signed a corporate agreement with Genmar, the largest boat-
building corporation in the world. Genmar is the parent company
of several boat manufacturers, including Ranger, Lund and
Crestliner, which currently install Garmin electronics.
Expanding opportunities
Building strong, long-standing relationships with distributors and
dealers is central to Garmin’s marketing efforts. Our commitment
to introducing new products for core markets while developing
innovative products targeting different market segments has led
to growth both for Garmin and our dealers.
In 2002, Garmin’s distributors throughout Europe and the Pacific
Rim experienced significant sales volume increases. In Europe,
revenue was up 31 percent, while Asia revenues increased 51
percent. Some of this increase is the result of the introduction
of new cartography products we developed for these regions,
which enhanced the utility of our GPS mapping units.
A worldwide network of approximately 700 aviation dealers
handles the distribution of Garmin’s full line of general aviation
products, which includes panel-mount, portable and handheld
units. These dealers provide a high level of service by installing
Garmin equipment in customers’ aircraft so that it meets FAA
requirements. Service beyond the sale is extremely important in
the aviation industry, and customers recognize Garmin’s perform-
ance in this area. Garmin won first place for avionics product
support in a 2002 poll of Professional Pilot magazine readers.
The results were published in the magazine’s January 2003 issue.
In addition to direct customer sales, several aircraft manufacturers
install Garmin avionics as standard equipment on their planes.
Existing OEM (original equipment manufacturer) partners include
Cirrus Design, Mooney Aircraft, New Piper Aircraft and Raytheon
Aircraft. In 2002, Garmin continued to sign agreements with
new aviation OEMs and even expanded into the jet market.
Garmin avionics are installed on the majority of Cessna’s
CitationJet 1 and CitationJet 2 aircraft, as well as their C208
Caravan turboprop. Additional growth in the area of turbine-
powered aircraft included installations on the Piper Meridian,
EADS Socata’s TBM 700 and the Pilatus PC-12. The avionics
package installed on most of these planes is the Garmin “stack,”
which integrates VHF communications, instrument landing system
(ILS), variable omni range (VOR), GPS-derived color navigation
system, transponder, marker beacon and audio panel.
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