The Consumers of the Product Botox - Case Study Example

? SWOT Analysis of Botox Affiliation with more information about affiliation, research grants, conflict of interest and how to contact SWOT Analysis of Botox SWOT analysis Strengths: Allergan has the possibility for dominance on several niche markets because of the uniqueness and appeal of their product. The main consumers of the product Botox are celebrities from many fields, which include actors and television artists. Thus, the element of celebrity endorsement is a great advantage. Facial beauty is a major concern in the modern world and the ability of a product to remove wrinkles and black marks on the skin will likely work as an element of strong attraction for customers. Botox also cures migraine, constant neck and back pain, extreme sweating, and possible convulsive disorders. These are major attraction for enticing customers to the product. The appeal becomes all the more significant because the consumers will think of it as a panacea for countering various ailments. Thus the product can command major share in all the market where it is introduced or available. Fashion industry has a commandeering position in the modern world and people’s affinity towards cosmetic products offers immense opportunities for products like Botox. People are prepared to invest hefty sum on body and skin care products and this trend opens for Allergen a floodgate of avenues to maximize its sales and to generate huge volumes of profit. Botox’s product caters to high end clients for whom the cost factor may not be a major element. Thus, they can remain in a position to provide high quality, variety and other attractions for promoting the product. Weaknesses Allergan depends too much on Botox sales. The other products of the company do not have any significant prospects for sales like Botox. Though lasting for only a short time, Botox cosmetics are known to cause serious side effects, which may repel some of the customers. It is prone to hamper some of the facial expressions like causing wrinkles while frowning etc, which may create a negative impact on actors and TV artists. The effective life span of Botox cosmetic treatment is only three to six months, which may create problems for low end consumers, when the cost factor is high. This may compromise the product’s popularity among the low income group of customers. Opportunities Expanded variety of Botox suggestion and indications would make stronger the future sales. Use of well-known position in ophthalmic, neurotoxin and linked markets to enhance the sales and current market situation. By measuring the current advantages of products, especially Botox multiple advantages, the company could focus more on developing the minute benefits of the products and launch the products with more specialities. Botox cosmetic treatment lasts only three to six months, so all the side effects are temporary. The company authorities could mention this temporary side effect issue and could attract more customers especially Celebrities. Threats Allergan stands to face tight competition from Alcon, a company which is into the manufacturing of surgical products, pharmaceutical products, optical care products etc. Risk of calculating erosion of Botox’s market share by other neurotoxin products. Due to the successful market career and larger sales of products, other companies may try to launch substitute products similar to Botox. Boxton’s usage is creating more side effects; in order to prevent that company should develop prevention methods. Marketing Mix Marketing mix is an essential component of the marketing plan and strategy of any company. Developing a marketing mix implies the development of a strategy for the optimization of the five Ps of marketing, which are product, price, promotion, place and package. There are a number of essential components which need to be kept in mind while determining a marketing mix. The product must have an definite target market, the price must be within a specified budget appropriate to the target market, the product must have a suitable place where it can be distributed, and the promotion must be in such a manner that the customer understands the firm is there to support its customers and solve the pains of the customers. “The marketing mix of a firm in large part is the product of the evolution that comes from day-today marketing. At any time the mix represents the program that a management has evolved to meet the problems with which it is constantly faced in an ever changing, ever challenging market” (Borden, 1942). Marketing Mix – Product A product is the first and the most important component in the marketing mix. The latest, trendy product in offer from Botox is Allergen. Botox has a very strong target market in Canada and can create its own marketing niche. Botox was launched in the market as a medical product for the correction of cross eye. Botox is not just a cosmetic product which removes the frown lines but also is effective in the treatment of migraine headaches, chronic neck and back pains and other spastic disorders. Therefore, Botox has the properties that can allow its application for cosmetic and medical purposes. Besides, it enjoys an excellent market in Canada and has targeted customers in both genders alike. More than seven million women customers from Canada use the product and there is a high percentage of middle aged men who also use the product. Therefore, it is a product with tremendous possibilities in the market. Marketing Mix – Price Pricing strategy is another important component of marketing mix. The price that is decided upon should be in accordance to the income levels in the target market. “A vial of Botox Cosmetic costs about $780.00 and can be used for four injections.” This cost is appropriate to the Canadian market with respect to the income levels of people who are the major prospective customers in this country. Canadian women who earn over $ 95000 can easily afford this product and, thus, it can perform well in this market. Marketing Mix - Promotion The elements of promotion include many types of campaigns like advertising, direct marketing, sales promotion, and publicity or public relations and last but not the least personal selling. Promotional strategy has to be changed at each stage in the product life cycle for achieving better sales of the product. The main purpose of a promotional strategy is to increase the demand for the product in comparison to its competitors. The next objective of promotional strategy is to form a very tactful direct sales team so that when customers walk in directly they are taken care of in a befitting manner. Direct sales are very important for stabilizing sales in Canada for Botox. Advertisements are one of the best means of promotions. But considering the peculiar nature and high prospect of the product, the company has to evolve innovative promotional avenues, including social networking on high profile portals, to enhance the sales volume. Video, Audio and print mediums also serve as the best promotional materials. Promotional materials with very capturing captions like: ‘REVERSE YOUR AGE WITH BOTOX - UNIQUE FROM ALLERGEN’ ‘SAY NO TO FACE SAVING INJECTION AND YES TO BOTOX FROM ALLERGEN’ ‘BOTOX IMPROVES YOUR BUSINESS’ Magazines like People, Vogue and In Style serve as good advertising mediums for a product of this nature. The models used for the purpose of ads should be prominent personalities from Hollywood so that the customers can easily identify with them and are immediately drawn towards the product. Moreover, celebrity endorsement will definitely hep even in attracting people who may not even require the product. Marketing Mix – Place The targeted market taken for this analysis is Canada, which in terms of cultural and economical factors is a suitable market for the product. The target audience is direct customers as well as indirect customers. Indirect customers are the customers who come from direct customers. Doctors, physicians, actors and beauticians etc are the customers who occupy a prominent place in Canada. Canada has a potential market for Botox and there are more than seven million women users of the product. Therefore, Canada is an extremely safe bet for promoting this product. Marketing Mix – Package: In the modern world, where customers are highly conscious about the beauty and aesthetic qualities, it is needless to mention that a product of this nature needs to come in an appropriate package. Innovative ways and means need to be deployed to render the package appealing to the senses of the consumers. This is an area where the company high potential to enhance the product’s appeal. Reference List Borden, N. H. (1942). The Concept of the Marketing Mix1. Harvard Business School. Retrieved June 04, 2011 from http://www.commerce.uct.ac.za/managementstudies/Courses/bus2010s/2007/Nicole%20Frey/Assignments/Borden,%201984_The%20concept%20of%20marketing.pdf Read More