Table of Contents
Executive Summary…………………………………………………….4
Mission Statement………………………………………………………5
Vision Statement………………………………………………………..6
Company Description..………………………………………………….7
Strength…………………………………………………………………8
Weakness………………………………………………………………..8
Opportunities……………………………………………………………8
Threats…………………………………………………………………..9
Country Overview………………………………………………………10 Products and Services…………………………………………………...11
Financial Analysis………………………………………………………12 Funding…………………………………………………………………13
Future Outlook………………………………………………………….14 Advertisement/Promotion……………………………………………….16
Competition……………………………………………………………..17
Legal
Implementation
Appendix
References

EXECUTIVE SUMMARY
Invacare Home Heath Equipment and Supply is a promising venture to take into consideration for the St. Petersburg, Russia area. It will provide high-quality health equipment and service to its customers. Invacare will provide a wide array of equipment such as wheelchairs (manual and battery powered), beds (basic-electrically operated beds), respiratory equipment (oxygen, nebulizers), bedside commodes, walkers, and canes. After analyzing the demographics and opportunities in the St. Petersburg areas, it was determined that there is a need for a local healthcare provider. St. Petersburg, through much research, has been determined to be in need of better healthcare accessories.
The handicaps of St. Petersburg seem to be overlooked and not giving accessibility to most local venders. By strategically placing Invacare in St. Petersburg, the healthcare and handicap concerns may be eliminated. This venture has great potential, can be profitable, and offer a better lifestyle for the disabled in St. Petersburg and the surrounding areas. Many areas have been researched and provided information throughout this marketing plan in order to help make the most informed decision when pondering the launch into St. Petersburg, Russia.
Launching Invacare into St. Petersburg, Russia is the responsibility of the individual making the ultimate decision on whether or not this venture attempt lies beyond the feasibility of the information provided in this marketing plan. One should research more in depth into the factors that have only been surfaced throughout this plan.

MISSION STATEMENT
We strive to provide the best home medical equipment and supplies. We work to exceed services provided to our customers and meet the standards of our company and industry. We are here to provide the most up to date and advanced equipment possible while maintaining privacy and cost effectiveness for our customers.

VISION STATEMENT
To provide the best home care equipment and supplies, promote active lifestyles by providing equipment to aide in recovery to those who do not require an acute healthcare setting.
Invacare pursues this vision by:

• designing and developing innovative and technologically superior products;
• ensuring continued focus on the company’s primary market—the non-acute health care market;
• marketing the company’s broad range of products;
• providing a professional and cost-effective sales, customer service and distribution organization;
• supplying innovative provider support and aggressive product line extensions;
• building a strong referral base among health care professionals;
• continuously advancing and recruiting top management candidates;
• empowering all employees;
• providing a performance-based reward environment; and
• continually striving for total quality throughout the organization. (Gudbranson, 2010, p. I-3).

COMPANY DESCRIPTION
Invacare Home Health Equipment and Supplies manufactures sells and distributes medical equipment and supplies to those with disabilities. They offer equipment such as wheelchairs (manual and battery powered), hospital beds, walkers, nebulizers, etc. They also carry the supplies for the products.
Invacare started in 1979 when Mal Mixon and a small group got together and bought the wheelchair division from Johnson & Johnson. At the time of the buyout Invacare had 3 plants in the United States (U.S.), employed 350 people and had net sales of 19.5million. Today Invacare has 30 factories, over 6000 employees and net sales of 1.7 billion in the U.S. and 8.0 billion worldwide. Invacare is also listed in the Fortune 500, Industry week USA, and Manufacturing500 (Gudbranson, 2010).
Invacare has grown worldwide, the equipment and supplies are sold in Canada, Europe, New Zealand, Australia, and Asia. This consulting firm is looking at taking it into Russia, specifically, St. Petersburg. Since St. Petersburg is considered the second capital of Russia and is continuing to grow the firm felt this would be the best place to invest in a new distribution site. The company is focused on glocalization, managing the business globally yet flexible enough to meet the needs here at home locally (Gudbranson, 2010, p. I-3).
Invacare is always looking at ways to improve their home based medical equipment and redefine it to meet the needs of the community it is serving. The firm believes that St. Petersburg would benefit from the joint effort between the Russian Government and Invacare to provide high quality medical equipment to the citizens in need. This report will not be the final decision maker on whether to go to Russia or not. Invacare will need to do further research and set up a meeting with the Russian Government to discuss the possibility of a joint adventure. STRENGTHS
Invacare is the leading manufacturer of home based equipment for non-acute people with disabilities or needing rehabilitation. The company is a market-driven company which is focused on glocalization. Since 1979 it has increased sales by a compound average of 16%, increased employees from 300-6000. During this 30 year time span Invacare has went from a 3 factory company located only in the U.S. to a being recognized worldwide. The company is dedicated to continually improve its products for safety and benefit of its consumers as a part of its strategy to gain market share and maintain a competitive advantage (Gudbranson, 2010, p. I-10).
WEAKNESSES
Invacare is a strong company, but in trying to move its market into another country there are some weaknesses. One of those is the language barrier; Invacare will need an interpreter. Another is the financial compensation by the government of the country, ex: is the healthcare reform going on in the U.S. today associated with Medicare/Medicaid. There are risks to an international expansion; different regulatory environment and reimbursement systems, general economic and political conditions of the country and security issues (Gudbranson, 2010, p. I-20).
OPPORTUNITIES
Invacare is always looking for new opportunities to grow, increase their marketing area, and improvement on products. Invacare is looking at expanding distribution area to Italy and now in to St. Petersburg, Russia. This could increase market ability and profit margins. Invacare keeps its eye on healthcare, the aging population and the data regarding disability among the population in the communities. With the note of the aging population worldwide, Invacare is working toward keeping up with new and improved products and services.

THREATS
One of the biggest threats to Invacare is today’s economic status, the healthcare reform, changing government regulations regarding healthcare. These factors could potentially affect the bottom line, and cut into profits. This could affect the company’s ability to further invest in expansion and improvement of products and services. The Corruption in Russia is a major concern regarding the start of a new business.

COUNTRY OVERVIEW
Russia is the largest country on earth with an estimated population of 146,001,176. It covers an area of 17,075,200 square kilometers. The population is estimated to grow to 118,233,243 by 2050. The native language is Russian. Life expectancy in Russia is 59.80 for males and 72 for females. Their labor force is 15%agricultural, 30% industry and 55% service. Russia exports petroleum products, wood products, metals, chemicals and a wide variety of civilian and military products. It imports machinery and equipment, consumer goods, medicines, meats, grains, sugar, and semi-finished metals ("Facts and things to know about Russia", 2006).
The firm chose St Petersburg to possibly open a new medical supply business. It is considered the second capital of Russia with a population of 4,624,100. St. Petersburg’s location is the delta of the Neva River on the shore of the Gulf of Finland. It is the largest megalopolis situated this far north in Russia with a territory of 1400 square kilometers ("Facts and things to know about Russia", 2006).
St Petersburg has its own port of entry for all imports and exports entering or leaving the city. Upon entering the country a customs declaration form must be completed defining anything brought into the country, and kept until departure. This form has to be completed again if exporting anything of Russian value or culture with the exception of mass produced souvenirs ("Facts and things to know about Russia", 2006). According to Russian law all medical equipment and supplies must be registered with the Russian Ministry of Health before being imported, sold or used in any part of the Russian Territory (SBH Russia, 2007).
Due to the high level of bureaucracy it is critical to have either a partner in healthcare industry in Russia. “Longstanding relationships are very important in Russia, especially in the medical sector” (SBH Russia, 2007). PRODUCTS AND SERVICES
Invacare offers a wide array of medical equipment as previously stated; wheelchairs (manual and battery powered), beds (basic-electrically operated beds), respiratory equipment (Oxygen, nebulizers), bedside commodes, walkers, canes. (See Appendix A to view some of the equipment available). The company will distribute and set up the equipment as needed. Invacare will also follow up on any concerns regarding the equipment.
Invacare would also assist companies lacking in handicap accessibility. Russia has very few places with handicap access. The handicap in Russia is excluded from most of life outside the home with few exceptions. Those are very special exceptions such as the Olympics. Lilianna Fyodorova struggles every day when leaving her apartment. She has to go down 6 steep steps backwards in a wheelchair just to get to the street (Hughes, 2010). Invacare would like to help in providing people like Lilianna with wheelchair ramps, accessibility to public restrooms, local restaurants, and department stores in order for them to become an active part of society again.

FINANCIAL ANALYSIS
Invacare has just celebrated their 30th anniversary and are now succeeding in three key areas. The three areas are: generating strong cash flow, paying down debt and meeting or exceeding earnings forecasts. With a tough global economy and reimbursement issues during 2009, Invacare has exceeded expectations by all critical measures. In 2009, Invacare increased its earnings per share by 18% in 2009 which along with a focus on managing inventory and receivables helped generate record cash flow. Outstanding debt was dramatically lowered in 2009 (Gudbranson, 2010) See Appendix 1. 10-K filing earning press release The Company is now focused on “glocalization”, a strategic initiative to manage the business globally yet be flexible enough to meet local market needs. Glocalization will serve as a key driver of future growth and lower costs by simplifying the Company’s product lines and eliminating unnecessary complexity. With this initiative in place, Invacare has begun to leverage its global purchasing power, research and development, engineering, systems and other support functions. In the future, glocalization will enable the Company’s management team to take advantage of growth in both targeted product and geographic areas. It is expected that with glocalization Invacare will achieve annualized savings of $100 million over the next five years which will drive gross margin expansion, allow for increased investment in research and development and help offset pricing/reimbursement pressures over time. Invacare will be able to meet its customers’ needs more efficiently and ultimately pool its resources and talents to create better products for consumers. Invacare’s steadfast commitment to improving lives is reflected in its financial gains. (Gudbranson, 2010).

FUNDING Invacare plans to use cash flow in 2010 to continue to retire debt, establish a new market in St. Petersburg or pursue accretive acquisitions as available. Invacare increased its earnings per share by 18% in 2009 which along with a focus on managing inventory and receivables helped generate cash flow. With the Company’s new initiative, glocalization, the opportunity to expand into St. Petersburg will be achievable. With limited access for handicap citizens, we many need to obtain a loan to assist in the new additions and renovations to the existing handicap entrances and improve accessibility.

FUTURE OUTLOOK The Company also plans to pursue opportunities to:
• Expand its core business – Over the next five years, Invacare will aim to double research and development spending for new product development funded by its savings from glocalization.
• Explore new business opportunities beyond Invacare’s traditional platforms, including therapeutic support surfaces and negative pressure wound therapy.
• Increase its presence in new markets like Latin America, China and Eastern Europe (Gudbranson, 2010). See Appendix 2. Cash Flow FS5 Invacare expects the organic sales growth to continue and some additional improvement during 2010 due to improving market conditions. This growth is forecasted despite the potential for pricing and reimbursement pressures in some markets. The Company does face two potentially significant issues in 2010. There has been some weakening of foreign currencies against the U.S. dollar; however, the rates are generally close to or above the averages seen in 2009. The second issue is that commodity prices have increased during the fourth quarter of 2009, contracts have kept the higher cost from impacting the 2009 fourth quarter results. The Company does not expect a significant rise in commodity prices in 2010 (Gudbranson, 2010). The future for Invacare is very exciting and it will continue to keep its attention on government and reimbursement policies throughout the world. The Health Care Reform Bill includes a new 2.3% sales-based or excise tax on U.S. sales of medical device manufacturers and importers starting January 1, 2013. The Company has moved from the tactical cost reductions to the strategic initiative of glocalization. With the goal to reduce cost and gain market share, Invacare will continue to strength its position in the market to remain the number one home healthcare brand in the world (Gudbranson, 2010).

ADVERTISEMENT & PROMOTION
Advertising is one of the many marketing tools that are used to attract attention of prospective customers to a business or its products or services. When advertisement campaigns are effective, they draw customers with greater frequency than poor campaigns. Advertising is part of the overall marketing strategy of a business, which includes public relations, promotional programs, signage, incentives, newsletters, and word of mouth, among other strategies. The aim of a marketing strategy is to use advertising, along with these other tools, for maximum impact (Kotler, 2009).
Advertising is also used to build up the image of a product or service. Geographically dispersed buyers can be reached by effective advertisement.
Many consumers purchase products or services based on its popularity or market outreach. Some feel that heavy advertisement of a brand is in direct relationship with the value of that product or service. Advertising also allows companies to use sales promotions such as coupons, contests, drawings, and other boosts to help sales. Invacare will need to go into St. Petersburg with a concrete advertisement and promotional plan developed. They will need to make use of all advertisement options available in the area. Invacare should plan to use billboards, newspaper ads, television commercials, poster ads on public transportation vehicles, radio advertisements, and a large pamphlet distributing promotion. They should research the online market and other markets that may be offered in that location by competitors. Not only must they offer an advertisement/promotion for the new business in St. Petersburg, but they also must rise above the competition in public recognition in order to maximize profitability.

COMPETITION
Competition has risen to a record high in today’s business environment. Not only are companies competing with the industry next door, but also with online companies all over the world. These companies may offer lower prices and free shipping and handling. This intense competition has resulted in higher promotion costs and lower profits. When new companies make the decision to emerge into a new market, they must analyze competitors to determine their strengths and weaknesses. They must also determine whether or not the competitor is providing what customers need and want. It is crucial that new companies are able to out-think existing companies by offering what the customer needs and introducing new products and services. The goal is to make customers believe that without this new product or service, they are missing out on something great (Kotler, 2009). As Invacare rushes into the St. Petersburg market, they must research competitors. A focus on providing customers with confidence on Invacare’s product should be at the top of management’s priorities. Not only will Invacare have to compete with local competitors products, they will also have to provide excellent customer service and guarantee their product (Technomedica, 2007). One of the main competitors that Invacare will have to face is Technomedica. The company for medicine laboratory devices was founded over seventeen years ago and has provided state of the art equipment in Moscow ever since. Technomedica is well known in 50 countries and provides over 23,500 medical laboratory devices. The Russian Ministry of Health and Ministry of Defense and other Federal Program also uses Technomedica to provide state needs (Technomedica, 2007).

IMPLEMENTATION
Launching Invacare in St. Petersburg, Russia will be no small task. Careful research into the many different business areas will have to be thoroughly completed. This marketing plan outlines the basis implementation necessary to enter into the St. Petersburg market. The first step will be to work out all the legalities of the business. Once the legalities are complete, Invacare must locate a facility. Proper candidates for management must be bi-lingual in order to focus on the company’s core values and implement them into the Russian market. Invacare will need to hold a job fair in the local area in order to hire qualified candidates.
Prior to grand opening, a massive advertising campaign should be launched including newspaper, billboard, television, and radio ads. Flyers should be distributed among local businesses in the area expressing Invacare’s intent and purpose for coming to the community. Invacare will also promote their online services in order to remain competitive globally.
Once these basic fundamentals are complete, Invacare should focus on excellent customer service and provide equipment and services that are guaranteed to provide satisfaction. Invacare should always focus on research and development in order to stay one step ahead of competitors. They must focus on and anticipate what the customer wants and will need in the future. References
Facts and things to know about Russia. (2006). Retrieved from www.ehotel.ru/en/about_russia_st_petersburg/
Gudbranson, R. K. (2010, February 26). Invacare 30th Anniversary (Annual Report). Retrieved from Invacare website: http://www.invacare.com
Hughes, C. (2010, May 27). The struggle from stair to door. Russia Beyond the Headlines. Retrieved from http//rbth.ru/2010/05/27/the_struggle_from_stair_to_door.html

Kotler, P. & Keller, K. (2009). Marketing Management (13th ed). Upper Saddle River,

NJ, Pearson Education INC.

SBH Russia. (2007). Russia medical equipment (Issue brief). Retrieved from Business Network Switzerland: www.osec.ch
Technomedica. (2007). From Space to Medicine. Retrieved on June 25, 2010 from
http://www.technomedica.com/preamble.htm