MM 578 Consumer behavior | GIVE A GARMIN | MARKETING STRATEGY FOR GPS NAVIGATION DEVICE | | Marcus J. Lumpkin |

MARKET ANALYSIS
Company
Garmin Limited is a publicly-traded company that specializes in navigation and communication devices for the public. With world headquarters in Olathe, Kansas, the company has grown from only a tiny number of employees in 1989 to over 7,000 employees worldwide today. (www.garmin.com, 2010) Their most popular item, the GPS navigation system for automobiles is amongst the leaders in the industry for such devices. The company also designs and manufactures GPS devices for use in boats, aviation, hiking, fitness and cellular phone and pda units.
Customers
The customers of Garmin products can be just about anyone who can drive an automobile, or operate a boat or plane. Customers would also include those engaged in aforementioned activities such as hiking, working out or using a cell phone. More specifically though, Garmin customers are those who are bad with directions and frequently get lost. Customers would also include those who may spend a lot of time travelling by automobile, whether locally or for long distances.
Competitors
Competitors of Garmin exist in many well known names to consumers of electronics. TomTom is a Dutch navigation device maker and market-leader in the field, and poses the biggest competition to the Garmin brand. However recognized brand names such as Sony and Phillips have since entered the niche market once dominated by Garmin and TomTom (Trent, 2006). Even more recently, Nokia and Google smartphones have begun offering a free navigation service with their phones and internet service, providing further competition for Garmin (Wolde, 2010).
Conditions
Current conditions of the market are that the economy is still slow. As previously stated, competition is increasing not only from similar devices that have entered the market, but also from cell phones. Garmin focuses on continuously creating technological innovations that should allow the company to weather the storm of competition and persistent threat of a slow economy. Analysts expect 2010 earnings and revenues to be a bit down (investing.businessweek.com, 2010). Despite this, people still are in need of such devices, as not every consumer has a smartphone.
MARKET SEGMENTATION
Segmentation Criteria As discussed, Garmin customers are those who are on the go and in need of GPS navigation to assist in traveling, whether on foot or in a vehicle. Therefore, the segment size is large. There are approximately 200 Million licensed drivers in the United States (money.cnn.com, 2005). Though the company manufactures a number of products for persons of all lifestyles (pilots, fishermen, joggers, etc.), this 200 million drivers would make up the general target market of Garmin. This number will continue to grow as more and more children reach driving age.

Segments Garmin has GPS products that work for people from all walks of life. In addition to automotive navigation devices for drivers, the Garmin.com website boasts that they also design: * Marine units supplement detailed charts with essential data * Aviation technology provides everything pilots need at a glance * Fitness devices make every step of the workout more efficient * Outdoor recreation options are available for hikers, campers and geocachers * Wireless applications bring the power of GPS to your smart phone

Therefore, the various segments within the larger market would include boaters/fishermen, pilots, joggers, hikers, and campers. They manufacture these to meet the needs of those engaging in these activities.
Attractiveness Analysis We discuss an attractiveness worksheet in the first chapter of our text, Consumer Behavior (p. 19). A marketer might score the attractiveness of the target market of 200 million drivers as follows:
Segment size 10
Segment growth size 8
Competitor strength 4
Competitor satisfaction with existing products 5
Fit with company image 10
Fit with company objectives 10
Fit with company resources 10
Distribution available 8
Investment required 8
Stability/predictability 7
Cost to serve 7
Sustainable advantage available 6
Communications channels available 9
Risk 8
Segment profitability 8

PRODUCT POSITIONING Product positioning is important in shaping the idea of a product in the minds of the target market. Garmin will define its brand image with the statement that “We guide you through life.” This statement will help to form the idea that Garmin users will always have a handy tool at their disposal, and will not have to worry about ever being lost or not being able to find their way to a destination. Garmin will continue to build on its television advertisements that show drivers in lots of different situations in which they might need a GPS navigation device. The branding of the product will be such that even those who do not think they would ever need a GPS navigation product will see themselves in relatable situations where they would find the Garmin useful. The Christmastime commercial that always ends in “Give-a, give-a, give-a, give a Garmin” will continue to run and further solidify the Garmin as a desirable tool and a thoughtful gift for someone.
IMPACT ON THE CONSUMER
Perception
Consumers will be able to instantly connect with the idea behind the Garmin device once exposed to it. As discussed previously, the television commercials will grab the attention of the consumers with the situational references that they can relate to. The commercials are always attention grabbing, and shall remain memorable because the consumer will be able to draw the connection between the song, the product and everyday situations. The long-term effects will be that the consumer does not want to be in a situation where they were in need of a Garmin and did not have one. The intensity of the “Give a Garmin” song is a catchy one that will remain in the minds of the consumer. There will be no need for jamming a lot of information into one commercial. The products themselves are very simple, so the consumer will be able to draw the parallels between themselves and the people in the various situations in the commercial, such as an instance where you Garmin will alert you to traffic ahead and to take an alternate route. These ideas will stay with the consumer.
Learning and Memory We know that consumer behavior is something that is learned and that “people acquire most of their attitudes, values, tastes, behaviors, preferences, symbolic meaning and feelings through learning” (Hawkins, 2010). Perception itself is also learned. Garmin will shape the minds of the consumer through continuously showing the situations that the target consumer can relate to. One of the reasons Garmin has been successful thus far is due to its ability to create this niche-market—before Garmin, no one really knew that they needed a GPS navigation device. Technology has made it possible. The imagery and schema that Garmin will continue to use in company advertisements will consistently link the need for the product with consumer long-term memory. Via conditioning, Garmin will educate the public so that everyone knows that a Garmin is what you need to navigate through life.
Motivation, Personality and Emotion Motivation is that “inner force that stimulates and compels a behavioral response and provides specific direction to that response” (Hawkins, 2010). The target market for Garmin will be motivated to believe that they need to have this product. Various researchers have touched on the needs that motivate humans—consumers specifically. Garmin will satisfy the needs of the driver by innovative ideas that build on an already fantastic product. With newer technologies, Garmin has been able to add features to its product that can detect traffic, construction and other obstacles in a driver’s path. The marketing will motivate drivers to desire to own the product so that they are not trapped in those frustrating situations where they wish that they had taken a different route. The personality of Garmin will exude the aura of reliability and helpfulness, so that when consumers who do not have a Garmin GPS navigation device experience the negative emotions of anger and disgust with being lost or not knowing the best route to get to a destination, they will immediately see Garmin as the ideal solution.
Self-Concept and Lifestyle Assessment How does a Garmin user view themselves? Garmin thinks that their users see themselves as ready-to-accept-challenges, smart and in control. The marketing will continue to reflect that every step of the way. We learn in chapter 12 of our text that lifestyle describes “how a person lives. It is how a person enacts her or his self-concept, and is determined by past experiences, innate characteristics, and current situation” (Hawkins, 2010). The activities that consumers engage in help determine their lifestyles, and Garmin users are active. As discussed previously, the Garmin user is not limited to being behind the wheel of an automobile, despite drivers being the target market. Garmin users are hiking, hunting, boating, flying planes and a lot more. The GPS navigation devices will be useful for a multitude of lifestyle events.
CONSUMER DECISION PROCESS All of the factors discussed so far will allow the target consumer to arrive at the decision to purchase, utilize and cherish their Garmin devices. As we touched on, the various situations that drivers find themselves in can be frustrating and mentally draining. Garmin will capitalize on these momentary conditions by focusing on those moods that arise, and guiding the consumer to purchase a Garmin unit. We are aware that purchase involvement relates to the situation, the product, and the individual. Garmin will be winning new user consistently with marketing that strongly influence their decision making processes. The purchase of a Garmin GPS system is not something that consumers will buy on impulse. Garmin will focus on the situations and force the consumers to recognize that not having a Garmin is a problem that they do not want to deal with. Every driver will not be a Garmin owner. Garmin will make sure to cater to those drivers that do decide to eliminate those exasperating situations.

MARKETING MIX
Product
The primary product marketed will be the new Garmin Nuvi GPS navigator.
Place
The Garmin Nuvi GPS will be available in numerous electronics stores, such as Best Buy and Radio Shack. It will be available also at big box department stores such Walmart and Target. The Garmin will be obtainable at specialty shops and automotive stores. It can also be acquired over the internet.
Promotion
Garmin plans to motivate the consumer to the point of purchase through heavy television advertisements, print ads, web ads and radio.
Price
Suggested retail cost will be $119.99 for the latest Garmin GPD unit.
Service
Garmin will provide free monthly service paid for by advertising to provide drivers with real-time traffic, weather and construction updates.

ASSESSMENT
Competitor Response The primary competition for Garmin is TomTom, the other market leader. However, free GPS navigation service being offered by cell phone phones has threatened the profits of both companies. Garmin expects those cell phone companies to continue to offer free services and possibly even update to include some of the same services that Garmin offers. Garmin will remain a market leader through innovative ideas that reinvent the company.
Anticipated Results and Contingencies Consumers react to problem situations. Garmin has focused our marketing strategy specifically to solve a consumer dilemma. The aggravation of being lost is something that any experienced driver can relate to. The ability to navigate around traffic and other obstacles is something that irritated drivers will cherish. We will remind our target market of 200 million drivers of those occurrences through a comprehensive marketing campaign that will span mostly television and internet ads, but include also radio, print and outdoor advertising. Any threat to the success of our marketing strategy lies in our ability to withstand the competition. Smartphones with free GPS navigation services will provide economic alternatives to our products. Garmin will move forward with this marketing strategy nevertheless, and execute it to the tee. Any contingency plan involves the many innovative products that we will release in the future. If we cannot remain as successful as we have been as a result of the competition, we will move forward with the manufacturing of car stereos with our easy-to-use GPS navigation. Either way, Garmin will be a household name for years to come.

REFERENCES
Author unknown. (2005). “Survey Ranks States with Dumbest Drivers.” www.cnn.com http://money.cnn.com/2005/05/26/Autos/drivers_study/ Hawkins, Del and David Mothersbaugh. (2010). Consumer Behavior.

Trent, William. (2006). “Garmin's Success Attracts Competition -- Can the Company Continue to Grow?” www.seekingalpha.com. http://seekingalpha.com/article/12386-garmin-s-success-attracts-competition-can-the-company-continue-to-grow-grmn-lpl-sne Wolde, Harro ten. (2010). “TomTom navigating through threat from smartphones.” www.reuters.com http://www.reuters.com/article/idUSLDE66D10V20100720 www.bloomberg.com / http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=GRMN:US

www.garmin.com