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Tom Tom Marketing Strategy

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Tom Tom Marketing Strategy
1. Product & Market

For the purpose of this assignment I have selected navigation device GO 740 Live (Figure 1) produced by company TomTom, which has been released to market in 2009. It is a portable GPS solution for cars. A wireless modem within allows the TomTom GO 740 Live to connect with TomTom’s servers for access to weather or gas prices to localized Google Points Of Interest (POI) searches. It uses traffic information fed from other live Global Positioning Systems (GPS) devices, letting TomTom layer that information on top of conventional traffic feeds. Figure 1: TomTom GO 740 Live
GPS, the US satellite global navigation system made available for civilian use in mid 80ies has commenced its commercial use by removing selective signal availability in 2000. In early 90ies there were already several pioneer companies (Garmin, TomTom) setting up new technology companies developing GPS receiver devices. Since then market has grown to estimated $8.2 billions worldwide in 2009 (Garmin) and is still considered as a market with great potential. Considering the aimed usage, target customers market can be divided into three major segments:

• Military
• Commercial
• Consumers

Focus of this work is the consumer segment which has been estimated to reach $5.1 billions in 2010 (Frost & Sullivan).

Consumer market segment of GPS handheld applications can be split into two major subsegments:

• Navigation services, or mobile maps available for mobile phone users
• Mobile GPS devices (dominated by vehicle navigation)

Amongst the larger market players are companies like TomTom, Garmin, MiTAC (Magellan), Verizon Wireless, TeleNav, Nokia. TomTom’s principal competitors are Garmin and MiTAC (Magellan). Global financial crisis has also affected navigation solutions market which has declined roughly 18% - 19% y/y in 2009. Most of the large market players have reported their sales declining. Early 2010 results are indicating recovery.

Fast technology progress is


References: Aaker D., and McLoughlin D. (2007). Strategic Market Management. Chichester: John Wiley & Sons, Ltd. Burke, A. (2009). Warwick MBA: Entrepreneurship and New Venture Creation. Coventry: Warwick Business School Dacko, S.G Dacko, S.G. (2009). Warwick MBA: Marketing Strategy. Coventry: Warwick Business School Day, G.S Frost & Sullivan [Online] (http://www.frost.com/prod/servlet/press-release.pag?mode=open&docid=10127615). (Accessed 15 May 2010) Garmin [Online] (http://www.garmin.com/garmin/cms/site/us) Mitac [Online] (http://www.mitac.com/). (Accessed 25 May 2010) Navigation Devices [Online] (http://www.businessweek.com/technology/reviews/navigationdevices/?chan=technology_technology+product+reviews+-+businessweek_product+review+types) Simkin, L. & Dibb, S. (2008). The Warwick MBA: Market Analysis. Coventry: Warwick Business School TomTom [Online] (http://www.tomtom.com/) TomTom GO 740 Live impressions [Online] (http://www.engadget.com/2009/05/12/tomtom-go-740-live-impressions/). (Accessed 25 May 2010) Appendix 1
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