Invacare 2009 Annual Report Download - page 14

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For information relating to net sales by product group, see Business Segments in the Notes to the
Consolidated Financial Statements included in this report.
WARRANTY
Generally, the company’s products are covered from the date of sale to the customer by warranties against
defects in material and workmanship for various periods depending on the product. Certain components carry a
lifetime warranty.
COMPETITION
North America and Asia/Pacific
The home medical equipment market is highly competitive and Invacare products face significant
competition from other well-established manufacturers and distributors. The company believes that its success in
increasing market share is dependent on providing value to the customer based on the quality, performance and
price of the company products, the range of products offered, the technical expertise of the sales force, the
effectiveness of the company distribution system, the strength of the dealer and distributor network and the
availability of prompt and reliable service for its products. Various competitors, from time to time, have
instituted price-cutting programs in an effort to gain market share and may do so again in the future.
Europe
As a result of the differences encountered in the European marketplace, competition generally varies from
one country to another. The company typically encounters one or two strong competitors in each country, some
of them becoming regional leaders in specific product lines.
MARKETING AND DISTRIBUTION
North America and Asia/Pacific
Invacare 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.
Invacare’s domestic sales and marketing organization consists primarily of a homecare 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 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 since its existence.
Invacare’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
I-8