Dr. Kern-EOS GMHB, manufacturers of European style tanning systems, in Germany announced key changes to its North American operation.

Ronald Albright, the former CEO, formally announced his resignation on January 1, 2008. Steven Mallory, the former National Service Manager, will take over the day to day North American operations.

Dr. Kern EOS-USA, Inc. is a division of the Guenther Group, one of Germany’s most established and largest corporations. The Guenther Group is comprised of 12 international corporations and operates more than 3 million square feet of production facilities in Germany. Its products include sauna and infrared heaters and controls; overhead, roller and all types of doors; and metal springs of all types.

Mr. Mallory will be focussed on implementing new technologies, as well as a dedicated drive to provide the highest level of customer service in the tanning industry.
(click here for more)

His goal is to take the best of the existing company and implement new programs to build up the complete product line of Dr. Kern and EOS.

A major task was re-establishing the Dr. Kern name and image. To do this, the company decided to shift gears and start selling direct; however, Mallory points out that there still is a need for the distributor in the sales equation. In fact, the company still maintains strong relationships with over 30 key distributors.

“Even though they are no longer exclusive distributors, we maintain great distributor relationships with our partners,” he says. “The combination of distributor sales and direct sales has made a major impact on the exposure of the Dr. Kern name from what it used to be to what it is now.”

To help achieve this, the company has made a concerted effort to increase its direct-marketing campaigns and strengthen its customer service department with the slogan “Fix a problem immediately if one arises.”

“The way we conduct business is influenced by our German counterpart and something that customers have not seen in seven years,” he says. “There is an effort on the part of Germany to get new products approved and get us what we need to be successful and for tanning salon owners to be successful. The communication levels have dramatically increased.”

In the last year, re-establishing the Dr. Kern name and image has been a positive and profitable move. According to Mallory, Dr. Kern USA has increased its market share a minimum of 50 percent since the end of last year.

“We are holding our own and increasing our market share in a market that has been relatively flat or declining for a couple of years,” he says. “This is exactly what we hoped to do.”

The company's goal for the remainder of 2008 and 2009 is to build upon its new direction and provide the best tanning equipment backed by superior customer support. A catalog will be mailed this month and feature all of the Dr. Kern equipment as well as some of the new commercial additions.

“In 2008 the company will focus on increasing sale for the Prestige, a 50-lamp, four-facial tanning unit that delivers spectacular results. It will also work on increasing its market share by heavily marketing several other new products including the 51 lamp TanDome,with 79 inch 180 watt lamps. Another rproduct is the uniquely designed Select, a flat surface bed utilizing 79 inch reflector lamps.”

Building on the European philosophy of total wellness, Dr. Kern USA will continue to offer the Beauty Skin machine which has had an incredible response in the market place. The Beauty Skin machine is a light-therapy unit that has been proven to be effective in the cosmetic treatment of many skin conditions such as acne and blemishes, Mallory says.

“The future of the U.S. tanning market is going to center around a total lifestyle and wellness concept,” says Mallory“and Dr. Kern USA is going to be there to help salon owners provide that service.”