Invisalign Case Summary

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Align Technology were faced with making channel decisions in order to please shareholders who were displeased about the 2001 third-quarter sales figure. The company now needs a plan to sustain sufficient revenues to support future cost growth (Exhibit 1 from Invisalign: Orthodontics Unwired). In addition, executives of Align wanted a report on the causes of low conversion of customers and the options available to increase conversion rates of the Invisalign system. Align needed to overcome the following: • Convert consumer interest into use of Invisalign System. • Small target segment: marketed solely to adults and teens with mature dentition and mild cases of malocclusion • Limited distribution channel • Higher prices and higher cost of goods …show more content…

Low conversion rate • Only patients with mild malocclusion are treated • Requires more patient compliance • Financial risk if product does not work (absorbed by orthodontist) • Orthodontists highly change averse and more comfortable with traditional 2. Incentive compatibility • Dentists do not receive incentives for recommending Invisalign to patients. However, typically patients see dentists first • Orthodontists have little motivation to promote Invisalign over traditional braces 3. Push v. Pull strategy: • Push: Dentists and orthodontist to recommend Invisalign • Pull: Patient to ask orthodontist for Invisalign Conclusion In the best interest of Align Technology, the company should look towards Alternative 3 where Invisalign is broadened to the general dentistry market and incentives are created for dentists. This recommendation bridges together the three critical issues aforementioned. It will increase the conversion rate as now dentists are working towards recommending Invisalign to patients, dentists will recommend patients to orthodontists for Invisalign due to incentives and it will enforce a strong push strategy to the consumer. As seen, Align encountered a channel issue. To overcome this channel issue, they must match the incentive, product benefit, need of consumers and the function that each channel member provides. Alternative 3 does all aspects of that and will ultimately allow Align to overcome their revenues problem and satisfy …show more content…

SWOT Analysis Strengths Opportunities • First product of its kind • No major competitors • New market of young generation • Channel efficiency Weaknesses Threats • Low conversion rates • High costs to manufacture • Narrow target market • Low orthodontist adoption rate • Traditional braces uses Appendix B. Channel Analysis 1. Initial patient visit: determine whether Invisalign could be used. Sent data to Santa Clara facility. 2. Construct plaster models and sent initial computer model sent to Pakistan facilities 3. Initial model changed into customized 3D treatment plan in Pakistan. Send back to Santa Clara for approval and sent to orthodontist for approval via ClinCheck and Align 4. Each 2 week stage mold was constructed at Santa Clara facility 5. Molds sent to outsourced production vendor in Mexico and shipped directly to prescribing orthodontist (Exhibit 4) Patients received aligners after six weeks from initial visit. Align switched to shipping all aligners for each case in a single batch in order to optimize logistical

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