Hearing aidopportunities

Hearing Aid Marketing OpportunitiesHearing Aid Marketing Opportunities
United States Hearing Aid MarketUnited States Hearing Aid Market
(U.S.A Hearing Aid Market)(U.S.A Hearing Aid Market)
Hearing Central LLCHearing Central LLC
1390 Kathryn Lane1390 Kathryn Lane
Lake Forest IL 60045Lake Forest IL 60045
847-295-6946847-295-6946
phil@hearingcentral.comphil@hearingcentral.com
Updated June 2008Updated June 2008
Updated December 2007Updated December 2007
Summer 2006Summer 2006
Source: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.comSource: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com

U.S.A Hearing Aid MarketU.S.A Hearing Aid Market
Current And FutureCurrent And Future
Market TrendsMarket Trends

7,875,000
23,625,000
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2006
People w / hearing aids People w / out hearing aids
Current Hearing Loss PopulationCurrent Hearing Loss Population
Source: Better Hearing Institute Marke Trak VII™ Semi-Annual Hearing Aid Market Survey/ Sergei Kotchkin PhdSource: Better Hearing Institute Marke Trak VII™ Semi-Annual Hearing Aid Market Survey/ Sergei Kotchkin Phd
Total Hearing Loss Population = 31,500,000
Current hearing aid adoption rates - 25%
i.e. 75% of hearing impaired who could
wear a hearing aid do not.

Current Hearing Aid Usage (2006)Current Hearing Aid Usage (2006)
Includes All Hearing Aid Types (BTE, ITE,
ITC)
5,512,500
2,362,500
11,025,000
2,362,500
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
People Wearing 2 Hearing Aids People Wearing 1 Hearing Aid
Binaural Hearing Aids (2/ user) Single Hearing Aid (1/ user)
Wearers
(7,875,000)
# Units Worn
(13,387,500)
Binaural
Single

Reasons for Slow AdoptionReasons for Slow Adoption
 ““Mom and Pop” distribution systemMom and Pop” distribution system
(9000+/- Audiologists, 3000+/- Dispensers)(9000+/- Audiologists, 3000+/- Dispensers)
 Stigma of wearing a hearing aidStigma of wearing a hearing aid
(will change as more people age and need a hearing aid)(will change as more people age and need a hearing aid)
 High Cost ($1500 - $3000 ea.)High Cost ($1500 - $3000 ea.)
 Most are not covered by private insuranceMost are not covered by private insurance
 No Medicare/ Medicaid Coverage (VA does)No Medicare/ Medicaid Coverage (VA does)
 Barriers to entryBarriers to entry

Projected Hard-Of-Hearing PersonsProjected Hard-Of-Hearing Persons
31.5
31.9
32.3
32.7
33.1
33.6
34
34.5
35
35.8
29
30
31
32
33
34
35
36
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tot al Market ( Millions Users)

Projected Hard-Of-Hearing PersonsProjected Hard-Of-Hearing Persons
Comments on Prior GraphComments on Prior Graph
 There will be a steady increaseThere will be a steady increase
in hard-of-hearing personsin hard-of-hearing persons
 Boomers with prior loud listening habitsBoomers with prior loud listening habits
and subsequent hearing loss willand subsequent hearing loss will
accelerate this market by 2010accelerate this market by 2010
Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.comHearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com

Projected NewProjected New Hearing Aids SoldHearing Aids Sold
With No Channel Changes (OnlyWith No Channel Changes (Only
Dispensers)Dispensers)
53.55
12.32
54.23
13.02
54.44
13.73
55.59
13.9
56.27
14.07
57.12
14.28
57.8
14.45
58.65
14.66
59.5
14.88
60.86
15.22
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tot al Need ( Millions Unit s) Max Capacit y of Current Channels
Assumes Current Adoption Rate holds at about 25%

Projected NewProjected New Hearing Aids SoldHearing Aids Sold
 Dispenser channel is not expected to grow –
more people are retiring than entering the
profession
 No growth in dispensers causes adoption
rates to hold at 25% of hard-of-hearing
population
 CONCLUSIONS
 Future hearing aid demand will definitely
not be met by current distribution channels

Projected Total Demand for Hearing AidProjected Total Demand for Hearing Aid UnitsUnits
31.5
53.55
31.9
54.23
32.3
54.44
32.7
55.59
33.1
56.27
33.6
57.12
34
57.8
34.5
58.65
35
59.5
35.8
60.86
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Tot al Hard of Hearing Persons Tot al Hearing Aids Needed
In MillionsIn Millions

Projected Total Demand for Hearing AidProjected Total Demand for Hearing Aid UnitsUnits
CONCLUSIONS
 Market potential of over 60 Million units
by 2015
 New distribution channels must be
created to meet demand
 Market is ripe for disintermediation &
high volume entrants

Pricing Trends Through Current ChannelsPricing Trends Through Current Channels
w/ No Mass Market Entriesw/ No Mass Market Entries
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2006 2007 2008 2009 2010 2011 2013 2014 2015
Average Retail Cost (BTE, ITC, ITE)

Pricing Trends Through Current ChannelsPricing Trends Through Current Channels
w/ No Mass Market Entriesw/ No Mass Market Entries
 If the current 12,000+/- Audiologists andIf the current 12,000+/- Audiologists and
Dispensers remain as the only channelsDispensers remain as the only channels
for consumers to purchase hearing aids:for consumers to purchase hearing aids:
1.1. Demand will rise as more peopleDemand will rise as more people
become hard-of-hearingbecome hard-of-hearing
2.2. Prices will rise due to the monopolisticPrices will rise due to the monopolistic
nature of the distribution channelnature of the distribution channel

The Future : 2006 - 2015The Future : 2006 - 2015
Upheaval!Upheaval!

Expected Channel ChangesExpected Channel Changes
2006 - 20152006 - 2015
FROM:FROM:
 AudiologistsAudiologists
 Hearing Aid storesHearing Aid stores
TO:TO:
 Mass Markets i.e.Mass Markets i.e.
 Drug StoresDrug Stores
 Big Box StoresBig Box Stores
 InternetInternet
 Mail OrderMail Order
Toll-KeepersToll-Keepers Open MarketsOpen Markets

Projected Distribution Channel ChangesProjected Distribution Channel Changes
20062006
 AudiologistsAudiologists 62%62%
 H.A. Stores/Dispens. 19%H.A. Stores/Dispens. 19%
 MDs/VA/ENTsMDs/VA/ENTs 13%13%
TotalTotal 94%94%
MASS MARKETSMASS MARKETS
3.5%3.5%
 InternetInternet
2.5%2.5%
 Super StoresSuper Stores >1%>1%
 Drug StoresDrug Stores >1%>1%
TotalTotal 6%6%
2015 (Est.)**2015 (Est.)**
 AudiologistsAudiologists 15%15%
 H.A. DispensersH.A. Dispensers
3%3%
 MDs/VA/ENTsMDs/VA/ENTs 15%15%
TotalTotal
33%33%
MASS MARKETSMASS MARKETS
9%9%
 InternetInternet 12%12%
 Super StoresSuper Stores
12%12%
 Drug StoresDrug Stores 32%32%
TotalTotalSource: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.comSource: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com

Projected Distribution Channel ChangesProjected Distribution Channel Changes
**Source: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com**Source: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com
Comments on Prior Slideomments on Prior Slide
 In the US hearing aid markets, there will be a
dramatic shift from dispensers to mass marketers
 US hearing aid market will expand from 25% to
67% of the hard-of-hearing
 Traditional channels will lose market share to
mass market channels
 Traditional channels will make money on custom
molded hearing aids and hearing tests

AverageAverage Retail Pricing TrendsRetail Pricing Trends
Through Mass Market Channels AloneThrough Mass Market Channels Alone
$750
$700
$650
$600
$500
$400
$300
$200
$150
$125
$0
$100
$200
$300
$400
$500
$600
$700
$800
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Average Retail Cost
Source: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045Source: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045

Mass Market Channels Retail Pricing TrendsMass Market Channels Retail Pricing Trends
Comments on PriorComments on Prior
SlideSlide Mass Market channels will drive down hearing aid
prices due to:
 Multiple competitors
 Supplier manufacturing economies
 Large ad budgets
 Price erosion will accelerate beginning in 2010
 RESULTS: Audiologists and dispensers will move
to higher end custom hearing aids and to
customers who want personal service

Projected Distributor Profit MarginProjected Distributor Profit Margin
DeteriorationDeterioration
Due to Mass Market CompetitionDue to Mass Market Competition
50%
48%
45%
43%
40%
38%
35%
33%
30%
28%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Margin Deterioration
www.hearingcentral.comwww.hearingcentral.com

Projected Profit Margin DeteriorationProjected Profit Margin Deterioration
Due to Mass Market CompetitionDue to Mass Market Competition
 Mass Market competition will force down prices
and margins will deteriorate accordingly
 Margins will bottom out at around 25%
by 2015
 Comments: This relentless price and margin
deterioration could accelerate. If so, the projected
timeline could be compressed to 2010 or 2012,
depending on the aggressiveness of the mass
marketers

ProjectedProjected UserUser Hearing Aid Adoption RatesHearing Aid Adoption Rates
7.88
0.08
31.5
3.22
13.67
35.8
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Current Channels Mass Market Channels Total Hearing I mpaired
Source: Better Hearing Institute Marke Trak VII™ Annual Hearing Aid Market Survey/ Sergei Kotchkin PhdSource: Better Hearing Institute Marke Trak VII™ Annual Hearing Aid Market Survey/ Sergei Kotchkin Phd
and Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.comand Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com
In Millions of usersIn Millions of users

ProjectedProjected UserUser Hearing Aid Adoption RatesHearing Aid Adoption Rates
Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.comHearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045 www.hearingcentral.com
 More outlets
 Lower hearing aid prices
= Greater availability
+ More choices
Result:
More people who need hearing aids will make a
purchase decision

ProjectedProjected UNITUNIT ForecastForecast
w/ Mass Market Channelsw/ Mass Market Channels
8.6
0
5.5
23.24
0
3
6
9
12
15
18
21
24
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Current Channels Mass Market Channels
In Millions of unitsIn Millions of units
**Assumes 70% of users will purchase 2 hearing aids**Assumes 70% of users will purchase 2 hearing aids
Market Share of Dispensers is reduced over time

ProjectedProjected UNITUNIT ForecastForecast
w/ Mass Market Channelsw/ Mass Market Channels
 Current trends will continue where 70% of
purchasers choose 2 hearing aids (binaural)
 67% market penetration rate by 2015 translates to
over 23 million hearing aids
 Market will split into:
 OTC (low cost/low maintenance) hearing aids
sold through mass marketers/Internet/mail order
 Custom /programmable hearing aids (high cost)
sold through traditional channels

Dollar Value of Mass Market ChannelsDollar Value of Mass Market Channels
(67% of Total Market in 2015)(67% of Total Market in 2015)
$67
$342
$749
$1,191
$1,624
$1,991
$2,185
$2,515
$2,744
$2,905
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Value of Mass Market Channels
In Millions of DollarsIn Millions of Dollars
**Assumes 70% of users will purchase 2 hearing aids**Assumes 70% of users will purchase 2 hearing aids
23,240,000 units
X$125

Dollar Value of Mass Market ChannelsDollar Value of Mass Market Channels
 In the next 10 years, the growth rate in hearing aid
sales will accelerate
 Mass marketers and other efficient channels
(Internet and mail order) can expect to participate
in a 5 Billion dollar market by 2015

Requirements for EntryRequirements for Entry
 Customer EducationCustomer Education
 They don’t need a prescriptionThey don’t need a prescription
 They don’t need to visit a dispenser or MD/ENTThey don’t need to visit a dispenser or MD/ENT
 No Medicare or Medicaid reimbursement (except VA)No Medicare or Medicaid reimbursement (except VA)
 Hearing Aid RequirementsHearing Aid Requirements
 Need sufficient display “shelf space” (website or store)Need sufficient display “shelf space” (website or store)
 Must be high quality (perceived value for the money)Must be high quality (perceived value for the money)
 Must be relatively inexpensive i.e. must hit price pointsMust be relatively inexpensive i.e. must hit price points
 $299 - $899 in 2007$299 - $899 in 2007
 $99? - $499? in 2015$99? - $499? in 2015
 No custom molds i.e. no visit required to audiologistNo custom molds i.e. no visit required to audiologist
 Self regulation – Easy to adjust (volume control)Self regulation – Easy to adjust (volume control)
 Self Maintain - Easy to cleanSelf Maintain - Easy to clean

Mass Market Entry OptionsMass Market Entry Options
Option 1: Put Audiologists in StoresOption 1: Put Audiologists in Stores
 Lease space or hire audiologistsLease space or hire audiologists
 AdvantagesAdvantages
 Professional can dispense & answer questionsProfessional can dispense & answer questions
 Complies with most State regulationsComplies with most State regulations
 DisadvantagesDisadvantages
 Customer must make appointment ifCustomer must make appointment if
audiologist is busy (impulse buy is dampened)audiologist is busy (impulse buy is dampened)
 CustomerCustomer mustmust meet with a professionalmeet with a professional
i.e. Audiologist must “dispense”i.e. Audiologist must “dispense”
 Hearing aids can probably be sold for under $1,000Hearing aids can probably be sold for under $1,000
 Depending on price, margins can be reasonable orDepending on price, margins can be reasonable or
relatively lowrelatively low

Mass Market Entry OptionsMass Market Entry Options
 Phase IPhase I: Start selling on corporate website: Start selling on corporate website
 Lower startup costsLower startup costs
 Suppliers can fulfill ordersSuppliers can fulfill orders
 No inventory carrying costsNo inventory carrying costs
 Requires Supply Chain integrationRequires Supply Chain integration
 Can see how hearing aids sellCan see how hearing aids sell
 Phase IIPhase II: Start selling Direct in stores: Start selling Direct in stores
 Pilot test in a city/ regionPilot test in a city/ region
 Go nation-wide after kinks worked outGo nation-wide after kinks worked out
Option 2: Sell Directly Thru Web & StoreOption 2: Sell Directly Thru Web & Store

Mass MarketMass Market
Web/Store Product StrategiesWeb/Store Product Strategies
 Start selling just 2 modelsStart selling just 2 models (will meet most(will meet most
consumer requirements)consumer requirements)
 Sell one OTE digital modelSell one OTE digital model (Over the Ear)(Over the Ear)
w/ the new “open ear” technologyw/ the new “open ear” technology
 AdvantagesAdvantages
 No mold i.e. no audiologist fitting requiredNo mold i.e. no audiologist fitting required
 Self fittingSelf fitting
 Lightweight and invisibleLightweight and invisible
 Sell one ITE digital modelSell one ITE digital model (In The Ear)(In The Ear)
 Find one that doesn’t require a moldFind one that doesn’t require a mold
 Find one that will fit in either earFind one that will fit in either ear

Web/Store Product StrategiesWeb/Store Product Strategies
December 2007 UpdateDecember 2007 Update
 Costco is now selling hearing aids in their stores usingCostco is now selling hearing aids in their stores using
audiologists:audiologists:
 Name brand CICs, ITEs and OTEs. Price points areName brand CICs, ITEs and OTEs. Price points are
$1500 - $2,000 each – about a 30% discount from$1500 - $2,000 each – about a 30% discount from
regular audiologistsregular audiologists
 Walmart is now selling hearing aids through theirWalmart is now selling hearing aids through their
website:website:
““Sport Ears” (ITE) ostensibly for the hunter marketSport Ears” (ITE) ostensibly for the hunter market
($380)**Update Feb. 2008 – These are no longer on($380)**Update Feb. 2008 – These are no longer on
the Walmart websitethe Walmart website
 Walker (BTE) “Game Ear” ostensibly for the gamerWalker (BTE) “Game Ear” ostensibly for the gamer
market ($199)market ($199)

Web/Store Product Strategies (1 of 3)Web/Store Product Strategies (1 of 3)
December 2007 Update – BigDecember 2007 Update – Big
BoxesBoxes TargetTarget is selling on the hearing aid periphery thruis selling on the hearing aid periphery thru
their websitetheir website
 ““Listen up” – ear pieces and pocket amplifier forListen up” – ear pieces and pocket amplifier for
TV/theater listening ($14.95)TV/theater listening ($14.95)
 ““TV Ears” – for listening to TV ($69.99 - $99.99)TV Ears” – for listening to TV ($69.99 - $99.99)
 CostcoCostco is selling “TV assistants” on theis selling “TV assistants” on the
hearing aid periphery thru their websitehearing aid periphery thru their website
 ““TV Ears” – ($59.99 - $89.99)TV Ears” – ($59.99 - $89.99)

June 2008 Update –The MarchJune 2008 Update –The March
ContinuesContinues TargetTarget now is selling hearing aids thru their websitenow is selling hearing aids thru their website
 ““Nexear” – Selling for $429.99Nexear” – Selling for $429.99
 Drugstore.com is selling hearing aids thruDrugstore.com is selling hearing aids thru
their websitetheir website
 NexEar – selling for $499.99NexEar – selling for $499.99
 Discount Drug Mart stores are selling NexEarDiscount Drug Mart stores are selling NexEar ––
no other infono other info
 CVS website is selling 2 models of NexEarCVS website is selling 2 models of NexEar ––
$389.99 and $489.99

June 2008 Update – Drug Store ChainsJune 2008 Update – Drug Store Chains
 BJ’s – No ActionBJ’s – No Action
 Walgreen – No ActionWalgreen – No Action
 CVS – No actionCVS – No action
 Rite Aid – No ActionRite Aid – No Action
 Longs Drugs – No ActionLongs Drugs – No Action
 Jean Coutu – No ActionJean Coutu – No Action
 NOTE: Just because there is no action at this date, it does notNOTE: Just because there is no action at this date, it does not
mean these channels are not seriously looking at the hearing aidmean these channels are not seriously looking at the hearing aid
market. Some or all of these Drug Store Chains are already openingmarket. Some or all of these Drug Store Chains are already opening
medical clinics in certain stores. If this trend becomes prevalent,medical clinics in certain stores. If this trend becomes prevalent,
there is no reason why these clinics could not also offer optometrythere is no reason why these clinics could not also offer optometry
and audiology products and services.and audiology products and services.

June 2008 Update- Grocery ChainsJune 2008 Update- Grocery Chains
(A possible future 800 lb. gorilla)(A possible future 800 lb. gorilla)
 Grocery stores get 8-10 times the foot traffic of mostGrocery stores get 8-10 times the foot traffic of most
drug stores.drug stores.
 Many grocery chains now have a small pharmacy inMany grocery chains now have a small pharmacy in
an area of their store, usually a contractoran area of their store, usually a contractor
arrangement with a local hospital or pharmacy chain.arrangement with a local hospital or pharmacy chain.
 As with the Drug Store Chains, there is no reason why theseAs with the Drug Store Chains, there is no reason why these
in-Grocery Store drug dispensing centers could not also offerin-Grocery Store drug dispensing centers could not also offer
clinical services and optometry and audiology products at aclinical services and optometry and audiology products at a
future date.future date.
((We will have more details on this channel in future updatesWe will have more details on this channel in future updates))

Marketing IssuesMarketing Issues

Barriers to EntryBarriers to Entry
 Regulations Differ from State to StateRegulations Differ from State to State
 Some State require a licensed dispenserSome State require a licensed dispenser
 Some states have reciprocal dispenser recognitionSome states have reciprocal dispenser recognition
(Licensed dispenser can be in another state)(Licensed dispenser can be in another state)
 Some States do not require a licensed dispenserSome States do not require a licensed dispenser
 FDA RegulationsFDA Regulations
 Anyone who wants to purchase a hearing aid may do soAnyone who wants to purchase a hearing aid may do so
without visiting a doctor but the customer “must be givenwithout visiting a doctor but the customer “must be given
the opportunity to sign a waiver”the opportunity to sign a waiver”
 All states incorporate these FDA regulations into theirAll states incorporate these FDA regulations into their
statutesstatutes

ALWAYSALWAYS have customer sign the waiver and keep onhave customer sign the waiver and keep on
file for State or FDA inspectionfile for State or FDA inspection (website click-(website click-thru’sthru’s
are OK)are OK)

Overcoming Legal BarriersOvercoming Legal Barriers
 Hire/Train dispensers in each StateHire/Train dispensers in each State (Dispensers are(Dispensers are
NOTNOT required full-time in each store!) ***required full-time in each store!) ***
 Initially 1 or 2 licensed dispensers per StateInitially 1 or 2 licensed dispensers per State
 They visit a store every week or twoThey visit a store every week or two
 Visit times are posted for customersVisit times are posted for customers
 Customer can set up a time for consultationCustomer can set up a time for consultation
***As long as a dispenser is available at reasonable dates and times at a store,***As long as a dispenser is available at reasonable dates and times at a store,
it appears that this arrangement will meet most State requirements.it appears that this arrangement will meet most State requirements.
(Have your legal counsel review this strategy for compliance)(Have your legal counsel review this strategy for compliance)
IMPORTANT: To meet State regulations customer shouldIMPORTANT: To meet State regulations customer should
always be given the opportunity to set up a time to see aalways be given the opportunity to set up a time to see a
dispenser at the time of first interest or at the time of sale.dispenser at the time of first interest or at the time of sale.
Make sure FDAMake sure FDA handout and waiver is signed by customerhandout and waiver is signed by customer
and kept on fileand kept on file

Regulatory StrategyRegulatory Strategy
 For Chain Drug stores – Get the NACDS to petition/ lobbyFor Chain Drug stores – Get the NACDS to petition/ lobby
the FDA to make certain hearing aid models reclassified asthe FDA to make certain hearing aid models reclassified as
OTC (OTC (OOverver TThehe CCounter i.e no professional intermediary)ounter i.e no professional intermediary)
 Arguments to useArguments to use
 New hearing aids do not require canal moldsNew hearing aids do not require canal molds
 New “Open Ear” OTEs have no occlusionNew “Open Ear” OTEs have no occlusion
 Certain ITE models have soft tips insteadCertain ITE models have soft tips instead
of a canal moldof a canal mold
 Once the FDA gives their blessings, the StatesOnce the FDA gives their blessings, the States
will defer to the FDA within 18 mos. and follow suitwill defer to the FDA within 18 mos. and follow suit
 The potential market size of $5 Billion would justifyThe potential market size of $5 Billion would justify
the lobbying investmentthe lobbying investment

Store StrategyStore Strategy

Store Intro StrategyStore Intro Strategy
 Choose one StateChoose one State
 Rollout to stores in all large metroRollout to stores in all large metro
areas within designated stateareas within designated state
within 3 monthswithin 3 months
 EvaluateEvaluate
 Modify the strategyModify the strategy
 Rollout to rest of state within 3 more monthsRollout to rest of state within 3 more months
 Re-EvaluateRe-Evaluate
 Re-Modify the strategyRe-Modify the strategy
 Go nationwide after 6 monthsGo nationwide after 6 monthsSource: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045Source: Hearing Central LLC., 1390 Kathryn lane, Lake Forest IL 60045

Suggested Store PlacementSuggested Store Placement
 Keep inventory behindKeep inventory behind
pharma / vision counterpharma / vision counter
 1 of each model on a1 of each model on a
secure display and 2 ofsecure display and 2 of
each model in inventoryeach model in inventory
 Have POP display at end-Have POP display at end-
cap or in Pharma/ visioncap or in Pharma/ vision
waiting area (4-6 sq.ft. ?)waiting area (4-6 sq.ft. ?)
 Nice to have:Nice to have:
 TV on POP display with a 2TV on POP display with a 2
minute VCR/CD tape loopminute VCR/CD tape loop
 PC w/ hearing test for selfPC w/ hearing test for self
hearing testhearing test

SummarySummary
 The hearing aid market is too big to ignoreThe hearing aid market is too big to ignore
 Current distribution channels (audiologistsCurrent distribution channels (audiologists
and dispensers) cannot meet current andand dispensers) cannot meet current and
future market needsfuture market needs
 Reclassification of some hearing aidsReclassification of some hearing aids
as OTC (as OTC (OOverver TThehe CCounter) by the FDAounter) by the FDA
will open up this marketwill open up this market

Author InformationAuthor Information
For comments and feedback onFor comments and feedback on
this presentation, please contact:this presentation, please contact:
Phil Wyatt CEOPhil Wyatt CEO
Hearing Central LLC GroupHearing Central LLC Group
1390 Kathryn Lane1390 Kathryn Lane
Lake Forest IL 60045Lake Forest IL 60045
847-295-6946847-295-6946
phil@hearingcentral.comphil@hearingcentral.com
The Hearing Central Group LLC manufactures and distributes hearing aidsThe Hearing Central Group LLC manufactures and distributes hearing aids
for resale to mass marketers such as drug store chains and other highfor resale to mass marketers such as drug store chains and other high
volume discount big box stores. The group also market their hearingvolume discount big box stores. The group also market their hearing
aids through their own websites directly to consumers (aids through their own websites directly to consumers (
www.hearingcentral.comwww.hearingcentral.com andand www.hearingaidscentral.comwww.hearingaidscentral.com).).

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