SWOT Analysis for Allergan and Botox Product - Essay Example

?SWOT Analysis on the Internal and External Environments relevant to Allergan pertaining to their Botox Product Company & Product Introduction Allergan has been into discovery of innovative products the like of Botox, and marketing them through prescription by doctors in the specialty markets for a long time. It boasts of a research & development wing involved in discovering and producing specialty segment products such as BOTOX® Cosmetic, which is a prescription medicine that is injected into face muscles for improving the look by reducing or fully eliminating frown lines between the eyebrows in people in the age group of 18 to 65 years temporarily. SWOT Analysis Internal – Strengths Botox not only removes frown lines but is equally effective in other many ailments such as in treating migraine headaches, chronic neck and back pain, sweating overly, and probably spastic disorders also. Allergan internal strengths are many. Its 8000 employees worldwide are its major strength. Allergan has reached to its current customers via its vast network of workforce. R& D investment in the making of the product i.e. Botox has been the internal strength of the company and the product both. Being a multispecialty healthcare company into discovering, developing and commercializing pharmaceuticals, biologics and medical devices, it is deeply rooted into manufacturing of specialty products such as Botox, which has brought it to the front runners’ line by capturing a niche market worldwide of its customers belonging to all walks of life. Botox being an innovative product, it is comparatively safe from generic erosion, as the medicinal formula of developing the medicine is a well-kept secret, which insulates the medicine from being sold by copying the drug development process. Internal – Weaknesses Botox is not a fully safe drug, as it paralyses facial muscles to the point beyond the earlier natural condition of the muscles where they can no longer react to outside changes emerging from symptoms such as age, use and wear. Forehead muscles can’t express emotions like anger. The community of actors and stars, mostly habitual to using Botox can no more show their emotions above the eye through acting. An emotionless face can transform humans into zombies. Botox has a number of side effects like drooping eyelids, drooling mouth, and slurred speech. These side effects are quite serious in nature affecting the personality of a person. Some temporary side effects such as nausea, allergic reactions, headaches, respiratory infections, flu symptoms, and redness and swelling around the injected area could be visible in some or all patients for a short duration. Another weakness of the medicine is that its impact on the related area is not permanent. The treatment remains effective only till six months of taking the Botox injection. It is a very costly treatment and is effective for a short duration compelling consumers to visit the clinics in regular intervals to maintain their visage. External – Opportunities Sales opportunities have increased greatly. Botox can be marketed globally through advertisement to the probable users for cosmetic uses of the product; earlier permission to advertising the product was not granted. Latest fashion trends provide a boost to the sale of Botox, as the product has become very popular in high profile society. Advertisement in the TV and popular magazines has increased the sales of Botox significantly as on an average a person views such ads 10 times a year. Ophthalmic market offers huge business potential for sale of Botox. Dermatology is another area where Allergan has opportunities waiting as use of Botox in dermatology provides possibilities of expanding by acquiring new formulas or by buying licenses from foreign producers, as it is relatively more cost-efficient than developing through R & D. The company can leverage through spending on marketing efforts from the revenue earned in dollar on other products to fight competition. Huge sales opportunities exist in primary segment belonging to women using the product for better outward presentation. Around 7 million women use Botox because it adds to their looks. The PR initiatives have earned praise for Allergan’s leading innovative product ‘Botox’ that has been profiled by the Los Angeles Times as “The beautiful business of Botox”. External – Threats There is risk of reducing sales of Botox from the predicted erosion of its market from other competitive products such as neurotoxin. Restatis generics sales could reach new high, as in the year 2008, their sales reached $444 million, recording an increase of 29 percent from the previous year. Develop a Marketing Mix Strategy for Botox for the Canadian Market for Fiscal Year 2010. Botox -- Marketing-mix Strategy for the Canadian market for fiscal year 2010 In order to achieve its marketing objective, Allergan needs to engage in both offensive and defensive marketing strategies. Offensive marketing strategies can be used to grow market share, customer purchases and market demand while defensive marketing strategies can be employed to protect Botox, as the company’s market leading product. Other than using offensive and defensive marketing strategies, Allergan needs to create ands depend on marketing-mix strategies related to product, pricing, distribution, and communication. Marketing Mix Strategies – Product Tactics Product Quality It should be the topmost concern for Allergan. Side-effects of Botox need to be minimized with additional R & D work on the product. At least serious attempts in R & D should be made to get rid of allergic effects on the face after taking Botox injection. Use of Botox should be totally risk-proof Packaging Currently, Botox vial is available for use in four consecutive injections. For those patients requiring single use of the injection, it is not economical to purchase it as it increases the cost of the treatment. Therefore, vial should be made available in different single use and multiple use packaging to keep the cost of the Botox vial minimum for those patients desiring single injection on the needy part. Design Although for such high profile products as Botox vial, design of the vial is not that significant but product type can be differentiated by changing the design of the packing for single use and multiple injections at a time, as it helps in identifying the product as per customer needs. Pricing Tactics Value pricing Allergan should offer value pricing to the customers being the leading company producing and marketing a Botox vial in about $780.00 for four injections, it can reduce the cost of single vial for single use only not in proportion to its quantity because of its established name in the given segment. Quantity discount Botox can be marketed to direct consumers through the chemists by offering discount on purchasing for the extended period needs or it can encourage those customers to purchase a vial, which is sufficient for four injections by providing discount on quantity, as is the practice in the bulk sale. Distribution Tactics Direct channel Currently, the Botox vial is being supplied through doctors who help in increasing its sale by recommending its need to the patients. This direct channel of marketing the Botox needs to be strengthened. Indirect channel Worldwide, Allergan is selling the medicine when it is recommended by doctors to the patients. It should introduce indirect channels of sales so that those users who have been using it previously and require no such recommendation could easily get it from indirect channels such as chemists and druggists. Huge marketing budget allotted for increased sales realizations should be diligently used in creating a line of such innovative products for therapeutic use and cosmetic use to strengthen the leading position of the company. Communication Tactics Mass communication Allergan is currently not using the mass communication platform for the distribution of the Botox vials although it has expanded its sales force by 28 percent. Communication needs to be developed with wider points of sale for achieving record sales. As stated above, the medicine should be sold at various platforms and points of sales to increase the sales. Advertising of the product can offer leverage by using both the print media and online media effectively. The element of secrecy in using and taking Botox injections by public at large should be discarded through random advertisement and showing promos of the product through different media channels so that people could express their liking and take the treatment without hiding facts. Until inhibitions on using Botox remain, popularity of the drug would remain suppressed. In-chemist-store presence and communication Botox advertisements in the chemist shops should be easily and clearly made visible so that people take notice of it and try to gain knowledge of it easily. Word-of-mouth influence This is a form of communication between customers and their friends and families. Such positive reviews among friends and family circle can positively enhance the marketing effect of Botox. All marketing-mix strategies should be used judiciously as per the geographical culture and aesthetics of the masses to promote the marketing and sales of Botox by Allergan. References Allergan (2011). 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