Invacare 2006 Annual Report Download - page 12

MARKETING AND DISTRIBUTION
North America and Asia/Pacific
Invacare’s products are marketed in the United States and Asia/Pacific primarily to providers who in turn sell
or rent these products directly to consumers within the non-acute care setting. Invacare’s primary customer is the
home medical equipment (HME) provider. The company also employs a “pull-through” marketing strategy to
medical professionals, including physical and occupational therapists, who refer their patients to HME providers to
obtain specific types of home medical equipment, as well as to consumers, who express a product or brand
preference.
Invacare’s domestic sales and marketing organization consists primarily of a home care sales force, which
markets and sells Invacare»branded products to HME providers. Each member of Invacare’s home care sales force
functions as a Territory Business Manager (TBM) and handles all product and service needs for an account, thus
saving customers’ valuable time. The TBM also provides training and servicing information to providers, as well as
product literature, point-of-sale materials and other advertising and merchandising aids. In Canada, products are
sold by a sales force and distributed through regional distribution centers in British Columbia, Ontario and Quebec
to health care providers throughout Canada.
The Inside Sales Department provides increased sales coverage of smaller accounts and complements the
efforts of the field sales force. Inside Sales offers cost-effective sales coverage through a targeted telesales effort,
and has delivered solid sales growth in each of its five years of existence.
The company’s Technical Education department offers education programs that continue to place emphasis on
improving the productivity of repair technicians. The Service Referral Network includes numerous providers who
honor the company’s product warranties regardless of where the product was purchased. This network of servicing
providers seeks to ensure that all consumers using Invacare products receive quality service and support that is
consistent with the Invacare brand promise.
The company sells distributed products, primarily soft goods and disposable medical supplies, through ISG.
ISG products include ostomy, incontinence, wound care and diabetic supplies, as well as other soft goods and
disposables. A selection of these products is also sold in the retail market. ISG markets its products through field
account managers, inside telesales, a customer service department and the Internet. Additionally, ISG entered the
long-term care market on a regional basis and markets to those nursing homes utilizing a direct outside sales force.
ISG also markets a Home Delivery Program to home medical equipment providers through which ISG drop ships
supplies in the provider’s name to the customer’s address. Thus, providers have no products to stock, no minimum
order requirements and delivery is made within 24 to 48 hours nationwide.
In 2006, Invacare, through the company’s co-op advertising program, continued to offer direct response
television commercials designed to generate demand for Invacare Power Chairs and the HomeFill Oxygen System
sold by the home medical equipment provider. These commercials feature Arnold Palmer, the company’s
worldwide spokesperson, who has become an integral part of Invacare’s “Yes, you can»” promotional and
marketing efforts. This program encourages consumers to achieve personal independence and participate in the
activities of life, facilitated by the home health care products that Invacare manufactures, distributes and/or markets
throughout the world. The company has an agreement with Mr. Palmer through the end of 2009. Mr. Palmer, in
serving as the company’s spokesperson, is helping accomplish three objectives: (i) creating attention and awareness
for the category of home health care products, (ii) accelerating acceptance of these products as lifestyle enhancing
so that consumers actually want these products rather than simply needing them, and (iii) establishing the Invacare»
brand as the consumer category-brand for home health care products. Mr. Palmer is featured throughout the
company’s marketing communications, including Invacare direct-response television commercials, print adver-
tising, point-of-purchase displays, and other merchandising and marketing materials.
The company continues to improve performance and usability on www.invacare.com, advancing our position
as the leader in e-commerce in the home medical equipment industry. The majority of projects in 2006 concentrated
on stabilizing the website order process and integration with Oracle database applications. To further improve
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