Rosetta Stone 2009 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2009 Rosetta Stone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Table of Contents
Customers
Our customers include individuals, home school parents, educational institutions, armed forces, government agencies, corporations and not-for-profit
institutions. We sell to our customers through a direct-to-consumer and institutional marketing and distribution strategy.
Channel Customer Type Representative Customers
Consumer Individual Based on our internal studies, 60% annually earn more than $75,000 and 44% earn more than $100,000
Retailers
Amazon.com, Apple, Barnes & Noble, Borders, Office Depot, Books-A-Million, London Drugs
Institutional
Educational Institutions
Primary and Secondary Schools: New York City Department of Education (NY), DeKalb County Schools (GA),
Cherokee County Board of Education (GA), Yonkers Public Schools (NY), Oakland Unified School District (CA),
Manatee County Schools (FL)
Universities: James Madison University, University of Wisconsin, West Chester University, Virginia Commonwealth
University, Clark Atlanta University, Jackson State University
Government, Armed
Forces and Not-for-Profit
Organizations
U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement, Foreign Service Institute,
Defense Intelligence Agency, U.S. Department of the Air Force, U.S. Army, U.S. Marines, The Church of Jesus
Christ of Latter-Day Saints, Council for Adult and Experiential Learning, Pacific Training Institute Clinic, AARP,
Neighborhood House of St. Paul, Seattle Goodwill
Corporations
Reuters Group Plc, General Motors Corp., Pride International Inc., Res-Care, Inc., Cerner Corp., Tyco Electronics
Corp., Molex Inc., Experian Information Solutions, Inc., Marriott International, Inc., Whole Foods Market Inc.
Marketing and Distribution Channels
Our multi-channel marketing and distribution model consists of print, online, television and radio direct-response advertising, kiosks, our institutional
sales force and retail resellers. We believe that this marketing and distribution model, through which each channel complements and supports the others,
provides:
greater brand awareness across channels;
cost-effective consumer acquisition and education;
premium brand building; and
improved convenience for consumers.
Consumer
Consumer sales accounted for approximately 79% of our revenue for the year ended December 31, 2009. Our consumer distribution model comprises a
mix of our call centers, websites, network of kiosks and select retail resellers, such as Amazon.com, Apple, Barnes & Noble and Borders. We also offer our
products in a limited number of ZoomShop unmanned automated kiosks. We believe these channels complement each other, as consumers that have seen our
direct-to-consumer advertising may purchase
13
•
•
•
•