Allergan, the maker of Botox is a very profitable company and growing. In 2012, Allergan had net sales of $5.7 billion up from $5.3 billion in 2011. Botox made up for $1.7 billion of sales in 2012 up from 1.6 billion on 2011. Botox is Allergan’s second highest grossing specialty pharmaceutical, behind Eye Care Pharmaceuticals. In 2012, Allergan invested nearly $1 billion in the specialty pharmaceutical market. The company is expanding the research and development facilities with the goal of bringing products to markets all over the world.
-Duration of Botox, dedicated customers, reoccurring visits
-Doctor administered in Canada, viewed as safe
-Health benefits, multiple purposes
-Celebrities, “youthful look”, “gentler look”
-Mainly targeted at women
-Need to broaden market
-High cost, short time
-No expression “plastic”, stereotypes
-Made of “bad” toxins
-Harmful and unsatisfactory side effects or overuse of Botox
-Reach a variety of new customers
-R&D new serum, innovations, new products
-Health opportunities and outreach to doctors
-Career opportunities, attractive, more successful
-Rival companies (Alcon, Xeomin, Dysport)
-Economic problems, expensive
-Changing in taste, aging is beautiful, natural beauty
-Lawsuits, unhappy customers
-Harmful and unsatisfactory side effects
-Career problems, too much Botox
This strategic marketing plan is intended for implementation in 2014.
Weaknesses: Botox is the name we associate with the age reversing process. Allergan, the pharmaceutical company that created this revolutionary product has many strengths but with that there are areas for improvement. However, pride comes before the fall, to avoid such scare, we have to identify the company's weaknesses and develop solutions. Stereotyping is a major concern to Allergan’s well being. When asked about Botox, many think of the negative effects, such as a 'paralyzed' face or the mishaps of some unfortunate few. Public figures or celebrities who use Botox have a substantial influence over every day people on whether they will choose to use Botox or not. If a celebrity has overused Botox or have had a negative experience with it can lead to a drop in sales in the Botox product. The perception of “bad” toxins used to make Botox is another weakness and the need to change the perception of the product among “everyday” people. Another challenge Botox faces in the small market they target as the product is typically seen as one used primarily by women. Through the process of a SWOT analysis we found that broadening the target market may help to expand the company’s profits. Finally, we found that one of Allergan’s biggest strength is also a weakness and that is price and the duration of the serum. With such high cost, in a troublesome economy, fewer people may purchase the product, less often. As well as the average consumer may not consider their appearance to be a top priority. With knowledge of weaknesses the Allergan company faces can help to improve the company’s’ position in the market.
Strengths: We have analyzed this case and have found certain strengths in which Botox possesses. The duration of this injection is one reason why the product is successful, each injection lasts 6 to 8 months. The success of Botox is attributed not only the duration of the product, but the dedicated costumers who come regularly purchase it. These recurring visits give it much more business than if Botox was just a one-time thing. Worldwide popularity of Botox allows people all over the world know about it with the help of celebrities and brand recognition. With many international customers, Botox is not only limited to North America. In return, most people around the world have access to it. Another strength of Botox is the secret formula and the…