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Building
Categories to Maximize Sales
Although many mass marketers have announced they are in the home health care
(HHC)
business, they are not presenting a threat to HHC providers. Why? Mass marketers will not
become destination HHC providers by only selling single bath safety or ambulatory aid
products as off-the-shelf impulse items.
Destination retail HHC providers provide a winning combination of professional staff
and fully-merchandised categories. Designated sales consultants, who are trained in both
HHC products and retail selling, demonstrate to customers how the products will meet their
needs and improve their quality of life. Their HHC retail showroom features room settings,
category identification signage, planograms that reflect their own customer's preferences,
floor and unpackaged shelf samples, product literature for each category, and comfortable
consulting areas or rooms.
Utilizing Category Management:
The top 1997 retail HHC product categories are bath safety, diabetes, home diagnostics,
incontinence and mobility. Retail HHC providers generally sell one or more of the five
disposable product categories that include incontinence and diabetes plus urology, wound
care and ostomy. These products are shelved in response to customer requests, preferred
manufacturers, contracted suppliers, wholesaler's inventory, manufacturer
planograms,
point-of-purchase displays and/or category management.
The results from this category management are that 1) Regular, repeat customers buying
any of these disposable products are directed to walk through the entire store; and 2)
These same customers are easily able to identify and buy single products and line
extensions within the respective category as well as buy related, add-on and impulse
products located on the aisles they must walk past on their way in and out.
Each individual category is built around top customer-preferred products and brands,
and then expanded to include either a two-tiered brand name and generic product selection,
or a three-tiered good, better and best product selection. The size of each
planogram,
utilization of floor point-of-purchase displays and entire category composition will
ultimately be defined by each individual HHC provider's consumer demand, product turns and
gross margin return on investment (GMROI) for each product line.
Following
are an overview of each of the major HHC categories:
Bath Safety
The core bath products are actually composed of two categories, bath safety and
personal care products. Bath safety includes bath/shower chairs, bath/shower benches,
transfer benches, wall and tub grab bars, bathtub rails, hand-held showers, diverter
valves, anti-scald devices and non-slip tub mats. Personal care bath products include
commodes, elevated toilet seats, toilet safety frames, bidet inserts and sitz baths.
Diabetes
The core diabetes products for glucose control include alcohol, blood glucose monitors,
glucose tables, insulin, lancets, pumps, syringes, swabs and test strips. But the
profitable sales result from the related OTC's such as analgesics, blood pressure
monitors, dental and eye care products, first aid, foot care products, sugar and
alcohol-free cough medicines, impotence aids, minerals and vitamins. Plus impulse products
such as batteries, ID tags, smoking cessation products, sugar free foods and sugar
substitutes.
Home Diagnostics
Home diagnostic products includes blood glucose monitors and strips, blood pressure
monitors, cholesterol test kits, HIV test kits, fecal occult test kits, prostate cancer
test kits, UTI test kits, home drug test kits, pregnancy tests, ovulation test kits,
vision screening test kits, skin growth monitoring systems and hi-tech thermometers.
Incontinence
Core disposable products include pads, guards and shields for light to moderate
incontinence, undergarments for moderate to heavy incontinence, and briefs for heavy
incontinence. Reusable products include briefs, undergarments and pads.
Underpads and water-proof sheeting are other related products. Related skin care
products include cleansers, barriers and creams, plus accessories such as washcloths, air
freshners, internal and external odor control items, gloves, powders and ointments.
Mobility Aids
Ambulatory aids include canes, crutches and walkers. Cane displays feature aluminum and
wood canes, folding and quad models plus replacement tips. Crutches include youth and
adult models, hand grips, pads and replacement tips. Walker models include rigid, folding
and rolling, plus accessories such as baskets, pouches and wheels. Scooters are the most
profitable add-on retail product in this category that appeal to the same customers.
Urology
Core disposable urological products include external, intermittent and indwelling
catheters, plus drainage bags, disposable and reusable leg bags. Accessories include leg
straps, drain valves and appliance cleansers. Related skin care and odor control products
(see above under incontinence section) are usually displayed between the urological and
incontinence sections. Erection devices are a very profitable add-on product.
Wound Care
Compete wound care categories meet customers needs from cuts to decubitis ulcers. Core
products include dressings (transparent films, composite, hydrocolloid, gels, alginates
and foams), surgical tapes, band-aids and rolls, first aid kits, cleansers, skin care and
sponges.
Maximizing Sales
The development of category management increases sales-per-customer as well as overall
profitability. When developing core categories, several strategies will help to build your
in-store sales. Include as many products, brands and options (line extensions such as
sizes and packaging) that are available in order to determine your customer's preferences.
Survey customers as to their preferences. Request market share data from suppliers. Or
simply stock the top consumer-preferred brand within each category.
Once the top sellers in each core category have been identified, place them at
eye-level in the middle of the planogram - and with the most depth of stock. Shelve
increasing sizes of packaging from left to right to increase sales-per-customer. Use
consumer educational brochures, laminated product shelf cards and shelf signs to educate
customers about promotions and related products that are used in similar circumstances or
meet similar needs.
Remember that today's educated consumers demand both information and selection.
Consumers take pride and ownership in making an educated decision, and free choice remains
a critical factor contributing to their satisfaction. Retailers who provide the most
complete displays of information and product usually rank as high-volume, profitable ROI
operations with high levels of customer satisfaction and loyalty.
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