Vistaprint 2006 Annual Report Download - page 17

Table of Contents
aggregated to create larger print jobs, allowing multiple orders to be simultaneously produced. Once printed, the individual product orders are
separated using computerized robotic cutting systems, assembled, packaged and addressed using proprietary software−driven processes, and
shipped to the customer. Requiring as little as 60 seconds of production labor per order, versus an hour or more for traditional printers, this
process enables us to print many high−quality customized orders using a fraction of the labor of typical traditional printers. Our quality control
systems are designed around the principles of world class manufacturing to ensure that we consistently deliver premium, high−quality products.
Our proprietary Viper software, sophisticated automation and software from our suppliers combine to integrate and automate all aspects of
the printing process, including:
Ÿthe pre−press process, during which digital files are transferred directly from our computer servers to the print plate creation system at
the appropriate printing facility, or, in the case of digital printers, directly to the printing press;
Ÿautomatic plate loading systems that eliminate all manual steps other than a quick ‘toaster like’ insertion and removal of plates;
Ÿautomatic ink key setting whereby ink fountain keys, which control color application, are set automatically from an analysis of the
pixelized data used to image plates;
Ÿcutting and finishing, during which products are cut to size using computerized, robotic cutters; and
Ÿsoftware driven assembly, packaging, sorting and shipping of the final orders.
Sales and Marketing
We employ sophisticated direct marketing technologies and management practices to acquire our customers using the Internet, e−mail,
and traditional direct marketing mailings. In addition, many of the products that we print for customers contain the VistaPrint logo and reference
our website. Because our products, by their nature, are purchased by our customers for the purpose of being further distributed to business or
personal contacts, the appearance of our brand on the products yields broad and ongoing distribution and visibility of our brand and presents the
opportunity for beneficial viral and word−of−mouth advertising.
We have developed tools and techniques for measuring the result of each provider of direct marketing services and of each marketing
message or product offer. In addition, our customer split run testing technology allows us to divide prospective or returning customers visiting our
websites into sub−groups that are presented with different product selections, prices and/or marketing messages. This allows us to test or
introduce new products on a limited basis, test various price points on products and services or test different marketing messages related to
product or service offerings.
We place advertisements on the websites of companies such as AOL and MSN, contract for targeted e−mail marketing services from
vendors such as AzoogleAds.com and MyPoints, and contract for placement on leading search engines such as Google and Yahoo!. We maintain
affiliate programs under which we permit program members to include hyperlinks to our websites on their sites and in promotional materials and
we pay program members for sales generated through those links.
In addition, we create co−branded or private branded versions of our websites and web landing or splash pages for companies in a variety
of industries. In general, these arrangements involve payment of a commission or revenue share to these companies for sales of our products and
services generated through these websites and web pages.
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