Vistaprint 2007 Annual Report Download - page 18

automated, high-volume, four color and eight color offset professional quality printing presses.
Products produced in smaller quantities or using special materials, such as holiday cards, invitations,
return address labels, and magnets, are typically produced on digital presses, although we may print
as few as 50 of a given product on offset presses. In almost all cases, individual orders from multiple
customers are aggregated to create larger print jobs, allowing multiple orders to be simultaneously
produced.
Our proprietary Viper software, sophisticated automation and software from our suppliers
combine to integrate and automate the printing process. This includes:
‰the 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 production, directly to the printing press;
‰automatic plate loading systems that eliminate all manual steps other than a quick ‘toaster like’
insertion and removal of plates;
‰automatic 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;
‰automated color management, which adjusts digital images prior to printing, assuring that
colors match when processed across different printing presses and substrates.
Once printed, the individual product orders are separated using computerized robotic cutting systems,
assembled, packaged and addressed using a VistaPrint proprietary software-driven process called
“Viper”, and shipped to the customer. Viper processes then communicate electronically with shipping
carriers, assuring smooth tracking and information flow to the customer until final confirmation of
delivery.
Requiring as little as 60 seconds of pre-press, printing and cutting labor for a typical order of 250
business cards, 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.
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. Through channels such
as our own outbound emails and direct URL type-in, we are able to secure orders at low costs. In
addition, many of the products that we offer our customers contain the VistaPrint logo and reference
our website. Our products, by their nature, are purchased by our customers for the purpose of being
further distributed to business or personal contacts. As such, 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 or service 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 and service selections, prices and/or
marketing messages. This allows us to test or introduce new products and services on a limited basis,
test various price points on products and services or test different marketing messages related to
product or service offerings.
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