TomTom 2006 Annual Report Download - page 18

Download and view the complete annual report

Please find page 18 of the 2006 TomTom 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 73

  • 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

Business review 16 TomTom Annual Report 2006
TomTom WORK
TomTom WORK was launched in
March 2006, following the integration
of Datafactory AG, which we acquired
in August 2005.
Originally a German-based operation,
TomTom WORK’s reach was extended
in 2006 to the UK, France, Benelux and
Austria. By the end of the year, its
customer base had grown to more than
14,000 active subscribers.TomTom
WORK combines tracking and tracing
technology with smart navigation for
companies that require easy, two-way
communication between fleet managers
and drivers. We have grown into the
business-to-business area with a product
that offers an easy-to-use, affordable
solution. TomTom WORK allows fleet
owners to streamline daily management
and communication with their fleet
and staff.
For more details on TomTom WORK, please refer to
www.work.tomtom.com
Supply chain and distribution
In 2006 we expanded our manufacturing
so that we had two manufacturing
partners building TomTom products,
up from one in the previous year. This
strategy was a success as it enabled us
to reduce the level of risk associated
with being dependent on a single
manufacturing partner. We also greatly
reduced the number of single-sourced
components used in the manufacture of
our products. This improves the continuity
of component supply and ensures
component pricing is competitive.
We expanded the capabilities and
resources of our quality assurance teams,
for example to enable the team to utilise
advanced simulation and product release
testing scenarios and tools. As a result,
we will be able to improve the overall
reliability and performance of TomTom
products even further, which is essential
for us to maintain best-of-class functionality
across all TomTom products and
accessories.
The bulk of our sales are made through
retailers, and we place great emphasis
on our relationships with our retail
partners. It is these retailers who employ
the people who operate on the shop floor,
actively promoting our products and often
introducing consumers to the world
of satellite navigation technology for
the first time. We supply the majority
of these retailers through our network
of distribution partners, who also play
a key role in educating new users and
retailers, in promoting our products, and
in ensuring TomTom reaches the widest
possible audience.
In 2006 we were delighted to see a
steady increase in the volume of shelf
space devoted to TomTom products in
every location. Our retail presence in
North America showed particularly
healthy growth: the number of stores
with TomTom products in stock
increased threefold this year, to
around 20,000 outlets.
Business review
Continued
Our new logo
In 2007 TomTom refreshed its
corporate identity with a new logo
to reflect its status as both the
world’s leading brand in portable
navigation solutions and a well-
established global company. This
meets the demands of an expanding
portfolio that includes new markets,
such as fleet management and
public traffic solutions, and new
customers, such as large businesses
and governments.
TomTom’s huge brand value and
brand recognition has been built
upon by evolving the popular red
hands logo to reflect the Company’s
growing status. With the new logo,
TomTom will continue to be seen as
a cool brand, but alongside TomTom’s
core values – smart, innovative,
accessible and modern – the new
logo also reflects the Company’s
reliability, quality, seriousness
and leadership.