Logitech 2007 Annual Report Download - page 79

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Marketing, Sales and Distribution
Principal Markets
Logitech operates as one business segment, which is the design, development, production, marketing and
support of personal interface devices.
Net sales to unaffiliated customers by geographic region were as follows (in thousands):
Year ended March 31,
2007 2006 2005
Europe ......................................... $1,027,852 $ 887,736 $ 733,667
North America ................................... 729,207 617,942 503,356
Asia Pacific ..................................... 309,510 291,037 245,603
Total net sales ............................... $2,066,569 $1,796,715 $1,482,626
Marketing
Logitech builds awareness of our products and recognition of our brand through targeted advertising, public
relations efforts, distinct packaging of our retail products, in-store promotions and merchandising, a Worldwide
Web site and other efforts. We also acquire knowledge of our users through customer feedback and market
research, including focus groups, product registrations, user questionnaires, primary and multi-client surveys and
other techniques. In addition, manufacturers of PCs and other products also receive customer feedback and
perform user market research, which sometimes result in specific requests to Logitech for specific products,
features or enhancements.
Sales and Distribution Channels
Logitech sells through many distribution channels, including distributors, OEMs and regional and national
retail chains, including online retailers. We support these retail channels with third-party distribution centers
located in North America, Europe and Asia Pacific. These centers perform final configuration of products and
product localization with local language manuals, packaging, software CDs and power plugs. In addition,
Logitech’s distribution mix includes e-commerce in the U.S. as well as e-commerce capabilities in several
European countries.
In retail channels, Logitech’s direct sales force sells to distributors and large retailers. Our distributor
customers typically resell products to retailers, value-added resellers, and systems integrators with whom
Logitech does not have a direct relationship. These distributors in the U.S. include D&H Distributing, Ingram
Micro Inc. and Tech Data Corporation, and in Europe include Tech Data Corporation, Ingram Micro, Actebis and
many national distributors such as Banque Magnetique in France, GEM in the United Kingdom and Also-ABC in
Switzerland.
Logitech’s products can be found in major retail chains, where they typically enjoy access to significant
shelf space. These chains in the U.S. include Best Buy, Circuit City, Office Depot, Staples, Target and Wal-Mart,
and in Europe include MediaMarkt/Saturn, Carrefour, KESA Group, FNAC, Dixons Stores Group PLC and most
key national consumer electronics chains. Logitech products also can be found at the top online e-tailers, which
include Amazon.com, Buy.com, CDW, Insight, and others.
Logitech’s OEM products are sold to large OEM customers through a direct sales force, and we support
smaller OEM customers through distributors. We count the majority of the world’s largest PC manufacturers
among our customers.
Through our operating subsidiaries, we maintain sales offices or sales representatives in 37 countries.
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