Botox Case Analysis

1487 Words6 Pages
Step 1. Define/Determine the Problem or Opportunity in the Case The issue in this case is that Botox effective ingredient is a poisonous toxin; botulinum toxin A. This toxin paralyzes muscles and side effects of Botox; the inability to use muscles above the eyebrows, drooping eyelids, slurred speech,, a droopy mouth, and constant drooling. nausea, allergic reactions, headaches, respiratory infections, flu symptoms, and redness and swelling around the injections is a major issue. Although the effects are temporary, 3-6 months, the costs of Botox procedures are very expensive. Another problem arises; the target market limited to those with high incomes, who can afford this procedure. If Botox procedure prices were reduced or covered by…show more content…
What is the financial status of the company? Very stable. The company has been increasing their profits from 25-35% a year. They spent 98 What products/services are currently offered? The current product offered is Botox, Juvederm, Lenzess and many other cosmetic products. Who are the current customers and target markets? The current customers purchasing Botox are middle aged women 30 and 54 with household incomes over $95,000. Middle-aged men made up 13.8 percent of the market for Botox in 2001. As well as celebrities Is current production capacity sufficient? Yes, Botox seems to be producing a lot of products since it became available and the profit from Botox his very high as well. . “For the year ending 2008, total product net sales totalled $4.3 billion, a 12 percent increase over 2007. Total BOTOX® sales were $1.3 billion in 2008, an increase of 8 percent over 2007. For full year 2008, therapeutic sales accounted for approximately 50 percent of total BOTOX® sales and cosmetic sales accounted for approximately 50 percent of total BOTOX® sales.” Taken from the Botox: Almost Trouble-Free New Faces article. Is R&D available and current? R & D is available and current, Allergen is always improving and inventing new products and formulas. However, to reduce costs, they buy foreign licence and improve the product rather than creating a
Open Document