Garmin 2008 Annual Report Download - page 36

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14
Central America), Southampton, U.K. (Europe, Middle East and Africa) and Shijr, Taiwan (Asia, Australia and
New Zealand). Garmin’s distribution strategy is intended to increase Garmin’s global penetration and presence
while maintaining high quality standards to ensure end-user satisfaction.
Garmin’s U.S. consumer product sales are handled through its network of dealers and distributors who are
serviced by a staff of regional sales managers and in-house sales associates. Some of Garmin’s larger consumer
products dealers and distributors include:
• Best Buy—one of the largest U.S. and Canadian electronics retailers;
• Amazon.com—internet retailer;
• Costco—an international chain of membership warehouses that carry quality, brand name merchandise;
• Halford’s—a large European retailer specializing in car parts and accessories;
• Petra—a large distributor who sells to such dealers as Costco and Amazon.com;
• Target— one of the nation’s largest general merchandise retailers;
• Wal-Mart—the world’s largest mass retailer; and
• Wynit—a large distributor who sells to such dealers as Radio Shack and Amazon.com.
Garmin’s Europe, Middle East and Africa consumer product sales are handled through our in-country
subsidiaries or local distributors who resell to dealers. Working closely with Garmin’s in-house sales and marketing
staff in the U.K., these in-country subsidiaries or independent distributors are responsible for inventory levels and
staff training requirements at each retail location. Garmin’s Taiwan-based marketing team handles the Company’s
Asia sales and marketing effort.
Garmin’s panel-mount aviation products are sold through aviation distributors around the world. Garmin’s
largest aviation distributors include Sportsman’s Market, Aircraft Spruce and Specialty Co., Gulf Coast Avionics,
Pacific Coast Avionics, and Sarasota Avionics. These distributors have the training, equipment and certified staff
required for at-airport installation of Garmin’s avionics equipment. Garmin’s portable aviation products are sold
through distributors and through catalogs.
In addition to the traditional distribution channels mentioned, Garmin has many relationships with original
equipment manufacturers (OEMs). In the consumer market, Garmin’s products are sold to certain automotive and
motorcycle OEMs such as Chrysler/Mopar, Toyota, Suzuki, Harley-Davidson, Ford, BMW and BMW Motorrad,
Honda Access, Mercedes Benz, Smart Car, Peugeot, Hyundai, Mazda, Nissan, Volvo, Bombardier, and Polaris, for
dealer-installed aftermarket accessory programs. Garmin also has a factory-installed program with Honda
Motorcycles and also delivered to Suzuki a factory-integrated PND product in 2008 for Suzuki’s SX4 vehicle in
North America. In addition, Garmin also sells products and applications to Kenwood for bundling with Kenwood’s
OEM products, and in 2008 Garmin announced a relationship with Panasonic Automotive Systems to supply
products and applications to Panasonic for automotive OEM sales. Garmin also has relationships with certain rental
car companies including Dollar/Thrifty, Enterprise, Avis, Budget, National, Europcar, and Alamo. Garmin has also
developed promotional relationships with certain automotive dealerships in certain countries including BMW,
Southeast Toyota, Penske, Mazda, Saab and Ford. Garmin’s products are also standard equipment on various
models of boats manufactured by Edgewater Boats, Bennington Marine, Cigarette Racing Team, Inc., Cobalt Boats,
G3 Boats, and are optional equipment on boats manufactured by Chaparral Boats, Inc., Formula Boats, Fountain
Powerboats, Mainship (Luhrs Corp.), and Pro-Line Boats. In the aviation market, Garmin’s avionics are standard
equipment on various models of aircraft built by Cessna Aircraft Company, Embraer, Cirrus Design Corporation,
Diamond Aircraft Industries, EADS SOCATA, Eurocopter, Mooney Aircraft Corporation, Hawker Beechcraft
Aircraft Company, Robinson Helicopter, and the Piper Aircraft Company. Other aircraft manufacturers offer
Garmin’s products as optional equipment.