Address the gaps

Anyone reading about diabetes today might notice a recurring word: epidemic. The sobering figures mentioned in some articles on the illness might leave the impression that one day, we all might have diabetes.

According to 2013 statistics from the American Diabetes Association, nearly 26 million Americans already have the disease, with another 1.9 million people being newly diagnosed each year — about 5,205 cases per day. On top of that, around 7 million Americans have diabetes that hasn’t yet been diagnosed, and another 79 million people are walking around with prediabetes. As many as one in three Americans will have diabetes in 2050, if the current numbers continue their steady climb.

Type 2 diabetes (previously called non-insulin-dependent or adult-onset diabetes) accounts for 90 to 95 percent of all diagnosed cases of diabetes in adults, according to the National Diabetes Education Program. Often associated with obesity, it increasingly is being diagnosed in children and adolescents.

Retailers trying to grow their store brands cannot afford to ignore their diabetic-customer base with their own brands, as it will only grow in the coming years.

“I see the diabetes category as very similar to what the gluten-free category was 10 years ago, when product offerings were very limited,” says Ethan Lewis, a type 1 diabetic and founder of Level Foods, a diabetes management line manufactured by Boulder, Colo.-based Boulder Brands that includes bars, shakes and glucose gels. “We are riding the tidal wave that is about to break.”

Glucose meters get innovative

Because blood glucose monitoring is central to successful diabetes management, blood glucose meters — along with their accompanying test strips and lancets — are top sellers in the diabetes management category. And glucose meters already have come a long way since they were introduced for home use in the early 1980s, with some of the latest ones designed to connect to iPods and iPads.

Testing through blood samples still is the proven, reliable standard for accuracy. And because diabetics want as little pain as possible when testing themselves, retailers should consider offering testing products that require only a tiny sample, says Jace Nelson, marketing and communications specialist at Edina, Minn.-based Arkray USA, which manufactures a number of diabetes care products for retailers’ store brand programs.

Selling a meter with technological features than can keep track of blood sugar numbers also is crucial to grabbing consumer interest.

“Users can download their test results straight from their meter into diabetes management programs and easily view, track and monitor their results — something that is becoming increasingly requested by many doctors as well,” Nelson notes, adding that while people with diabetes have several interests when it comes to meters, “chief among them is price.”

Value is critical

Living with diabetes can be extraordinarily expensive, with the American Diabetes Association estimating that diabetics spend 2.3 times more on health care costs than people without the disease. Therefore, it’s important that retailers’ own-brand testing supplies cost less than their national brand counterparts. And with 2013’s changes in Medicare reimbursement rates for diabetes supplies, now could be a good time to take action.

The recent changes are a cost-cutting measure designed to save consumers money and reduce fraud, Nelson says. But with the institution of a competitive bidding process for product vendors, the changes also have caused some confusion and left some patients needing to switch suppliers. The changes also have caused difficulties for retailers.

“With the numerous changes in the health care market, ranging from reimbursement to higher co-pays, providing a high-quality and cost-effective product is on everyone’s mind,” he states.

Selling more affordable test strips could mean a higher profit margin and more satisfied customers though, according to Rick Admani, founder and CEO of Charlotte, N.C.-based Unistrip Technologies, which recently introduced UniStrip1 testing strips — available for private labeling — as a generic alternative to the LifeScan testing strips required for Johnson & Johnson’s LifeScan meters.

By offering the alternative strips, “retailers and providers don’t have to pay $50 or $60 per vial, collect a co-pay, collect an insurance payment, and also possibly have to wait for a manufacturer discount or rebate,” he says.

With some diabetics needing to test multiple times per day — and with some national brand strips costing more than $1 per strip — a store brand option means that customers can afford to test at the frequency they need to, Admani explains, making the situation a “win-win for everyone.”

Convenience counts

In addition to value, consumers appreciate convenience with their diabetic management items. For many, living with diabetes means analyzing the nutritional content of everything they eat, constantly monitoring how their diet is impacting their blood sugar and being mindful of how their overall lifestyle is impacting their health.

And for the newly diagnosed, managing the disease can be extremely overwhelming and confusing, Lewis points out. One way retailers could appeal here with their own brands is to offer on-the-go products, especially blood glucose supplements, as diabetics can experience potentially life-threatening blood sugar level drops at any time. They also could offer products not necessarily targeted at diabetics but important for disease management — such as blood pressure or cholesterol medications — to serve convenience-minded diabetic shoppers.

“What we want people to do is achieve a level of glucose control, blood pressure control and cholesterol control that is known to reduce the risks for complications,” says Dr. Elizabeth Seaquist, 2014 president of medicine and science for the American Diabetes Association and a professor of medicine at the University of Minnesota.

The same goes for weight control, which is a concern for diabetics. And because some type 2 diabetics are able to manage their disease via proper diet and exercise rather than just medication, the American Diabetes Association says, retailers should consider offering store brand weight-control foods and other products specially formulated for diabetics. According to Lewis, while many diets advocate low-fat and low-calorie foods, science has shown low-carb and low-sugar products to be more beneficial in stabilizing blood sugars, adding that a lot of foods marketed as healthy can send blood sugar “on a roller coaster.”

Packaging matters

Got a great glucose meter that isn’t selling well? The problem could be the package.

According to a report from Affinova, a global marketing technology company based in Waltham, Mass., a gap exists between brand perception and packaging design for blood glucose meters. Marketers must ensure that key brand personality traits are being communicated through a glucose meter’s packaging.

“In this era of health care reform, we’ve all heard patients are becoming the consumers, and medical device companies should focus their efforts on impressing them,” the company said on its website.

The report, released last fall, documented a design audit in which 600 diabetics shared their opinions on packaging of 12 top glucose meters. The audit asked shoppers to share thoughts on a number of metrics, including shelf visibility, a package’s “personality” and what words consumers associated with each brand.