1
Building the NAVIGON Brand in the
Fastest Growing Consumer Electronics Category:
GPS Navigation
Chief Marketing Officer Summit Spring 2008
4-6 May 2008, Sawgrass Marriott Resort & Spa, Ponte Vedra Beach, FL
Ralf Hug, VP Marketing
May 5th 2008
proprietary & confidential

Overview 2
Building the
NAVIGON Brand in the
Topics covered:
Fastest Growing CE
Category  Insights into the market entry
strategy
 Consumer intelligence driving
product differentiation
 Product launch and brand
campaign
 Marketing metrics
proprietary & confidential

Portable Navigation Device (PND) Market Size and Growth 3
69,680,250
80,000,000 400%
70,000,000 350% 350%
51,615,000
60,000,000 300%
266%
50,000,000 250%
27,900,000
40,000,000 200%
30,000,000 150%
12,600,000
121%
20,000,000 100%
2,798,140
85%
763,790
10,000,000 50%
35%
0 0%
2005 2006 2007 2008 2009 2010
PND Unit Volume Growth Rate
Source: Canalys and Internal Projections
GPS Navigation: The fastest growing consumer electronics category!
proprietary & confidential

The Brand Landscape in the GPS Category 4
Well known CE brands dedicated brands successful!
…only GPS but…
proprietary & confidential

Significant Milestones 5
Growing market
NAVIGON Growth
and brand share
11.50% 12.00%
10.00%
6.70% 8.00%  NAVIGON is now the #4 GPS
4.00% 4.00%
6.00% brand in the U.S.!
3.60%
4.00%
 Moved from “Others” designation
(11 or higher) to #5 in
2.00%
0.00%
November and #4 in
Sep-07
Feb-08
Jan-08
Jul-07
Oct-07
Nov-07
Dec-07
Aug-07
Mar-08
February
NAVIGON Q1 Unit Market Share
 #4 in both units and $ volume in Q1
‟08
Harman Hewlett
Nextar Kardon Packard All Other
Mio 2.1% 0.4% 0.2% 2.6%  Navigon 2100 was the #2 best
Navigon
7.7%
7.2%
selling PND in the US in
Garmin February „08
44.4%
Magellan
14.1%  First time since February „07 that a
TomTom brand other than Garmin, TomTom
20.8% or Magellan accounted for more than
Source: NPD 4/22/08 10% of the PND market
proprietary & confidential

NAVIGON Company Background
 Founded in 1991  Leading Global Software Application
 Privately owned with 24.9% stake by leading Developer and Navigation Solutions Provider
global private equity firm General Atlantic  Three Lines of Businesses
 US Headquarters in Chicago, IL Automotive, Wireless and CE
 Worldwide Headquarters in  Development Centers in Würzburg
Hamburg, Germany (GER), Chicago (USA), and Cluj (ROM)
 More than 350 employees worldwide  Active in North and South America, Europe
and Asia Pacific
proprietary & confidential

Product Strategy 7
In a category where the
competition is stripping out
everything or simply adding
checkbox features, NAVIGON
delivers beyond the basics
with an experience that
truly adds value to the
end customer
proprietary & confidential

Product Strategy 8
The experience that matters
DESIGN FEATURES PERFORMANCE EASE OF USE
In a field of me-too Across tiers, NAVIGON The soul of each PND NAVIGON innovation
devices, NAVIGON strives to deliver is built on NAVIGON‟s translates to a simpler,
embraces design as a beyond the basics premium navigation more enjoyable
key differentiator. with additional premium software, delivering a navigation experience
Our unique design WOW features that navigation experience that the mass market
DNA has produced supercharge end that is second-to-none. requires.
numerous awards. customer value.
proprietary & confidential

Product Strategy 9
NAVIGON values the voice of the consumer and delivers
relevant features customers want
TOP TWO-BOX RANKINGS
80%
Invested in consumer research
70%
– Made Traffic and Reality View a portfolio wide USP
60% – Added Text-to-Speech (TTS) to the entry-tier
50%
40% Very
Appealing
30%
20% Extremely
Appealing
10%
0%
Source: Ipsos, June 2007
proprietary & confidential

Product Feature Spotlight 10
NAVIGON™ 7100
 Reality View™
WOW Features  Lifetime Traffic
 Lane Assistant
 FreshMaps
 Text-to-Speech  NAVIGON Fresh
 Branded POIs compatible
 Speed limit warning  Zagat Survey
®
PLUS Features Ratings and Reviews
 City-first or street-first
entry
 4.3” touchscreen  Predictive text  POI on route,
FOUNDATIONAL Features  Standard POIs (1.5M) entry in vicinity
 2D or 3D viewing  Maps  PIN protection
 Day/night setting  Favorite,  Block routes
last destinations  Route planning features
 Highway signs displayed
 Go home feature
proprietary & confidential

2007 Product Highlights 11
A product portfolio that made the market take notice…
NAVIGON® 7100
NAVIGON® 5100
NAVIGON® 2100/2120
BOLD INNOVATION
PRECISION TECHNOLOGY
AWARD-WINNING DESIGN
RELEVANT FEATURES
FOUND NOWHERE ELSE
proprietary & confidential

2007 Product Highlights 12
A product portfolio that made the market take notice…
NAVIGON
NAVIGON® 7100 ® 7100 NAVIGON® 5100 NAVIGON® 2100/2120
NAVIGON® 5100
NAVIGON® 2100/2120
Superior Experience Design Meets Delivering More
and Design Innovation for Less
 4.3” with all the bells and whistles  3.5” with unmatched feature set  3.5” with features never found
 Reality View™  Reality View™ at an entry-tier
 Lifetime TrafficSM  Lifetime TrafficSM  Reality View™
 Zagat® Survey  Zagat® Survey  Text-to-Speech
 Text–to-Speech  Text-to-Speech  Retail service
 Bluetooth® activations
proprietary & confidential

Press & Industry Attention 13
“ ...the NAVIGONfeatures that notsome
impressive new
7100 adds
only
give it an edge but also may just
shake up this complacent
industry. ”
 “. . . Navigon has also thrown in a few features that “Also, to help make the ride as smooth as
distinguish them from the crowd.” possible, there‟s a lane assistant function that will help
– PC Magazine, Craig Ellison find the best lane for your route and a 3D “photorealistic”
view of complicated intersections. They all came in
“I saw this (NAVIGON 7100) and I was so impressed.” handy during our test drive, and most importantly, the
– Rich DeMuro of CNET appearing on CNN system provided accurate directions.”
– CNET, Bonnie Cha
 “The display is the best I‟ve seen in laying out
streets, overlayed with markers for local repair shops, gas “Better still, however, are the 7100‟s 3-D views of
stations, ATMS and logos for popular restaurants.” thousands of complex intersections…Instead of squiggly
– Chicago Sun-Times, Howard Wolinsky lines, drivers see the actual lanes with orange arrows
indicating where they should be to make the next turn.”
 “The device was simple to use, and the maps and – John Quain, New York Times
directions it provided were easy to follow, as well.”
– PC World, Dennis O’Reilly  “At the heart of the Navigon offering…a beautiful
design on the exterior and a different approach to
 “While real-time traffic is cool, the Reality View is design when it comes to the interface. …[it‟s] more up
priceless.” to date than other units.”
– LAPTOP, Troy Drier – GPS Lodge, Scott Martin
proprietary & confidential

Brand Strategy 14
A Company With a Price
Advantage Can Be Undercut!
A Company With a Performance
Advantage Can Be Out
Flanked!
But, a Company Owning the
Category‟s USP (Unique Selling
Proposition) Can Potentially
Demand a Price Premium . . .
Forever!
proprietary & confidential

2007 Marketing Campaign 15
Launched brand with an OVERALL Q4 „07
TV IMPRESSIONS POS
integrated campaign aimed
200M 538M
at differentiating NAVIGON
from its competitors ONLINE RADIO
100M PRINT 25M
213M
proprietary & confidential

TV Campaign 16
Check out YouTube: http://www.youtube.com/watch?v=MlSq-B4JAh8
proprietary & confidential

Online Campaign 17
 Between Oct ‟07 and Dec „07
brand campaign has sent over
400,000 users to NAVIGON‟s
microsite (experiencenavigon.com)
 76% of the users (~304,000)
sent directly to channel partner
websites
Microsite: www.experiencenavigon.com
proprietary & confidential

Print Campaign 18
proprietary & confidential

Brand Positioning 19
NAVIGON is satisfying a position in the PND space that is
currently unmet by the competition and currently being
requested by consumers.
OUR BRAND POSITION
Innovative features that are
useful and relevant backed
by stunning designs
Source: Ipsos Insight, Brand Tracking Study –
Jan. 2008; 3000 total respondents online
proprietary & confidential

Marketing Metrics 20
Share of Voice 5 Year Trend Brand Awareness
Source: Ipsos Insight, Brand Tracking Study –
Source: TNS Media Intelligence Jan. 2008; 3000 total respondents online
proprietary & confidential

Marketing Metrics 21
GPS Brands as % of Branded conversation
80%
70%
% of GPS Conversation
60%
50%
Web Traffic
40%
30%
20%
10%
0%
Garmin TomTom Magellan Mio Tech Navigon
1400
1200 Discussion
GPS Buzz of Black
1000 Friday deals
Message Count 800
600
400
200
0
Magellan Mio Tech TomTom Navigon
proprietary & confidential

Conclusion 22
 Don‟t be afraid of Big Brands!
 Big guys get complacent and leave opportunities for you
 Focus on differentiation not me-too features and lower
price
 Consumer insights and market intelligence key success
factors
 What you can‟t measure you can‟t manage marketing
approach
 Hire a good team!
proprietary & confidential

23
THANK YOU!
Ralf Hug
VP Marketing
Business: ralf.hug@navigon.com
Private: ralfhug@yahoo.com
proprietary & confidential