In the US, the majority of people do not prefer how they smile especially in public places which make them lose self-confidence. The need to overcome the challenge has prompted a good number of individuals, especially youths and the aging population that seek dental and jaw alignment. Following the rise in demand for the services, the US has experienced an increase in orthodontics practices. Currently, the industry has about 11,000 businesses offering orthodontic services across the country. According to the report produced by IBISWorld, the industry is generating over $11 billion in revenue annually. The overall market size of orthodontics is estimated to be $3.25 billion. Based on the increasing rate of demand, the returns are expected to grow by approximately 10%. The growth is directly linked to the advancement in technology being used to facilitate the processes.
Some of the current trends in the orthodontics industry include the use of invisible braces. Most clients do not prefer the alignment to be seen publicly which made the sector opt for props that cannot be noticed easily. Furthermore, the incorporation of technological aspects in shaping the field. With the virtual digital connection, patients are able to seek possible ways to enhance their progress. Similarly, the application of 3D printers will make it easier for the specialists to design and recommend the right orthodontic treatment that suits the needs of each client depending on the expected waiting time. The technology will allow patients to have a glance at how their respective dental will appear once the process is complete (Yu et al., 2022). In addition, most orthodontists currently function independently making the ability to promote the invisible program a challenge. The organization of dental practice management companies (DPMC) into small units is contributing effectively to the marketing issue in the industry. The development of direct-to-consumer mail order approaches has significantly impacted the ease of promoting invisible orthodontics in the country.
The growth of the orthodontics industry is influenced by several external environmental factors that make it challenging for new companies to progress in the market. Upon understanding the aspects and their impacts on the market structure, an organization will be in the position to advance and promote its services effectively (Olson et al., 2020). Some of the key macro-economic aspects that determine the ability of the business organization to penetrate and undertake proper promotion programs are demographic, economic, political, social, cultural, legal, technological, and environmental. The elements are crucial and must be considered by the management in order to evaluate the likelihood of succeeding in the US orthodontics industry.
The demographic structure in the US is a sensitive area that impacts the promotion of invisible orthodontics. Currently, most adults are opting to secure treatment services to enable them to overcome their dental problems. Most of this population group is motivated by the increase in the number of patients adopting the use of aligners and braces. Similarly, the common trend among old people is seeking routine checkup services. The approach is increasing their awareness thus enhancing the demand to obtain orthodontic services.
In order to have dental alignment, patients are supposed to pay a large amount of fee for the service. Most people especially teenagers and marginalized groups are facing economic challenges making them unable to afford orthodontics services. The financial aspect is crucial in the market hindering the majority from receiving the treatment. Furthermore, some families do not have insurance coverage limiting them from accessing dental alignments.
In the country, individuals tend to refer their colleagues to the orthodontists they have received their services. This trend is common, especially among the social class in the country. The approach is a hindrance to the promotion of invisible orthodontics because people rely on referral programs when seeking dental treatment. Similarly, the social status of the people significantly impacts orthodontics practices. For instance, patients living in urban areas are more likely to access the alignments than those in rural settings.
The changing technology in the country has made orthodontic practices improve significantly. For example, most orthodontists and business organizations offering dental treatments in the country have adopted the usage of artificial intelligence (AI) to facilitate the proper alignment of teeth. The technology has reduced doctor visits hence making them reduce the associated cost (Case Project, n.d). The trends are significantly challenging the penetration of invisible orthodontics in the market. Similarly, the cultural beliefs in the country are changing significantly making people value the usage of braces to enhance their teeth alignment. For instance, various people have insecurities especially when they have deformed dental structures.
The US government has created a favorable system that allows companies to advertise their presents across the country. The orthodontics industry is currently using the social media platform to inform their prospective patients about the nature of the services they offer. The trend is essential for companies because they have the ability to reach many clients through various platforms. In addition, the legal requirements to advertise products in the country are limited. The authorities do not charge higher amounts to enable the firms to access the promotion services. The practices are vital aspects that allow business organizations to market effectively.
Company Snapshot
The Invisible Orthodontist (TIO) is a business organization formed with the purpose to help orthodontists to improve their sales performance in the market. The company’s aim is to provide networking opportunities to enable practitioners to promote their services in the orthodontics industry. Since its formation, TIO has been successful in different countries including Australia, the UK, New Zealand, and Ireland (Case Project, n.d). The company managed to be effective because of its membership approaches whereby it allows businesses that require promotion to subscribe to its services. TIO management is offering both Platinum and Community Membership programs to the orthodontists that provide Invisalign services. By engaging in marketing practices, the firm gained strength that enabled it to prosper in the industry. Furthermore, its advertisement strategies which include the use of Facebook ads, Google, and other social media platform made it remain relevant in promoting businesses. In addition, the business organization engages in trade shows to enable it to promote its services to the public.
Despite the strengths of the company, TIO is suffering serious setbacks based on the methodologies it is using to obtain prospective clients. For instance, the membership fee and duration of contraction are inconveniencing most orthodontists making them remain reluctant (Okuda et al., 2021). The other significant challenge facing TIO is reliance on the word of mouth as a possible way of promoting the company. Previously, the firm performed effectively while relying on the approach to passing information. The method has proved unable to reach the targeted market leading to the inability to penetrate the US orthodontics market.
In the US, the company has faced significant challenges following the existence of experienced orthodontists in the market. Since its entrance into the US in 2017, the business organization has attracted a small number of subscribers making its market size to be small. The firm is having about $540 million as its market share. The growth rate of the entity in the industry is 1% making it progress slowly in the American Market (Case Project, n.d). Its target market includes orthodontists having more than one office in different locations, and any other multidisciplinary office having orthodontics practices. The company’s service line is the promotion of orthodontics practices across various social media and websites. It offers training programs to members that have subscribed to its services.
Some of the key benefits of the company are its reliance on digital marketing to network with its customers. The membership approach enables it to offer consistent services to the subscribers. Its brand which is Invisalign attracts most customers due to its transparency. Based on its previous success in other countries, the TIO has positioned itself in the mind of clients who have used its services to promote their operations (Case Project, n.d). TIO’s competitive advantage is based on its strategic partnership with companies such as Dental Monitoring, ULab, and Smile Snap. The firms focus on the dental industry enabling TIO to provide better insight to its members on the current trend in the industry to improve their knowledge in the field.
TIO business organization is campaigning to enable orthodontist practitioners to improve the sales of Invisalign products in the orthodontics market. In the industry, the sales of Invisalign braces have grown since the innovation of transparent aligners and due to the high demand caused by the rising number of adults seeking dental treatment. The overall market share of the product is about 10% in the US (Tamer et al, 2019). Invisalign braces facilitate faster treatment of patients than the traditional ones. In addition, the commodity enhances the confidence of users because it is more presentable due to its invisible nature. Despite the strengths of the product, it has significant weaknesses such as an increase in malocclusion. The result is making the majority of the people avoid the use of aligners in the country. Moreover, the cost associated with dental treatment is high hindering patients to access the services. For instance, an estimated cost of an Invisalign is between $3000 and $8000 depending on the material (Okuda et al., 2021). Invisalign is not capable of offering effective dental alignment for individuals having crooked jaws. The significant benefit of the commodity is its rising demand in the market. Most people value having transparent braces to enable them to increase their smiles.
As a brand, the TIO Company is struggling to penetrate the US marketing market. Invisalign is facing strong competition in the industry that is full of well-advanced and informed players. Most of the orthodontics business organizations in the country have adopted the application of AI technologies to improve their services. TIO is yet to adopt the engineering making it ineffective in offering proper services to the clients. This condition has made the business organization rank below the major competitors in the US orthodontics market such as Neon Canvas, Evolvs, Jimmy Marketing, and Sesame Communications.
Promotional Situation
TIO business organization has based its promotions on digital marketing. Some of the services the company offer include developing a website, using paid ads, social and retargeting, search engine optimization (SEO), engaging in community learning, and related events. Furthermore, the entity uses templates, monthly webinars, and peer forums that contain doctors only and another for group members. In addition, it relies on Facebook and Google to advertise its products (Farsi, 2021). Lastly, it is using trade shows consisting of fewer audiences such as the American Association of Orthodontics (AAO) and the Pacific Coast Society of Orthodontics (PCSO).
In marketing, a promotions audit is an essential tool that allows the company to make clarification the objectives. Furthermore, it is important in enabling the business organization to depict faults within the strategy being used in the market. By analyzing and summarizing the promotional activities, TIO will be able to improve and adapt its operations effectively and efficiently in the US. The table below identifies TIO’s promotions audit in the orthodontics marketing industry.
Table 1: Promotions Audit
Promotional Channels over the Past Two Years
The marketing practices have been changing significantly over the past years. Some of the reliable channels used by the advertisers are not effective in the current market. Currently, the focus of promotion is based on an online platform. Some of the channels used in the last years include SEO, most consumers prefer using Google to seek information about the given product in the market. The other approach is content marketing whereby the customers are forced by messages containing the word buy (Peter et al., 2021). In addition, email marketing has been used to communicate about the commodity for a long duration. Social media is another criterion used to advertise commodities through different online platforms. Some organizations use influencer marketing especially celebrities with huge media followers. Furthermore, some entities use partnership promotion that involves collaborating with another brand to create a beneficial campaign.
Among the stated promotion channels stated above, SEO, influencer marketing, and social media should be replicated in the industry due to their effectiveness in generating traffic necessary to promote the product. On the other hand, areas that require improvement include partnership and email advertising. Instance, forming a collaborative ad may not meet the demands of one product especially if the, For instance, forming collaborative ad may not meet the demands of one product especially if the other service or product is well known in the industry. In other words, it will shadow the existence of the inferior one thus lowering its image.
Competitive Review
The orthodontics market contains a number of firms that offer similar services provided by TIO in the industry. They include Neon Canvas; this organization engages in digital marketing practices such as designing and developing websites to ensure their clients receive proper networking in the sector. Its promotional channels include SEO, content marketing, branding, orthodontic marketing, and social media consulting (“The Digital Orthodontist – Neon Canvas”, 2022). The target markets for Neon Canvas are orthodontics, healthcare, and other business organizations. The entity has positioned itself in the marketing platform by building a strong relationship with clients and developing effective blogs. Their message is ‘Light Up Your Brand’ by ensuring they work closely with the customer to enhance success. The budget of the business is $8 million and it is a digital-based company.
Jimmy Marketing operates in the industry offering stiff competition that makes it difficult for the TIO to gain customers. The group is aimed at differentiating promotional activities that best suit the need of each client. They engage in web design, lead generation, content marketing, digital marketing, search engine ranking, and social media (“SEO Websites, Web Marketing | Market Hardware | Custom Website Design”, 2022). Their services target orthodontics, orthopedics, podiatry, audiology, and dentistry practitioners. It has positioned itself as a dare to differentiate the company. The agency’s marketing budget is about $5 million and it relies on a digital platform to offer its campaigns.
In order for TIO to remain relevant in competitive US marketing, it should apply the promotional practices being used by the People and Practice (P&P) marketing agency. The organization is focused on improving the abilities of companies by forming a partnership to enable them to build promotional approaches that match their practices (“People + Practice: Healthcare Marketing for Doctors”, 2022). The marketer is using technological development to facilitate digital advertising in the industry. By leveraging the approaches used by P&P, TIO will be able to attract more members making it increase its performance in the market. Some of the methods used by P&P include email marketing, lead generation giveaways, digital advertising, and design services. TIO should emulate the design services and lead generation giveaways solutions to enrich its campaign activities.
Customer Analysis
The marketing market for orthodontics can be segregated into various segments. It can be grouped into orthodontists with many units in different locations and those having one centralized operation. The practitioners will require advertising services to promote their business in the given area. The decision of the consumer to acquire the services is by buying situation in the industry (Sahu et al., 2020). It is impacted by the targeted group for instance; orthodontists may opt to use social media when the focus is on middle age patients. Similarly, consumers will select a given marketing brand depending on the factors such as market size, the level of technology, and the innovativeness being used by the agency. Furthermore, the extent of competition in the industry, and the available resources to facilitate the advertising and product newness are critical aspects that customers consider before opting for a specific marketer. The service will be purchased by orthodontists based on their decision regarding the quality of the advert used by the company. The TIO’s influencer will be Dr. Anil Idiculla, a community member based in Denver, Colorado. The individual has positive charisma and a huge fan base necessary to be an influential person.
Generally, age, beliefs, lifestyle, and perception of the buyer are key factors that shape their decision-making process. The consumer journey begins from pre-purchase to consumption and then post-purchase. In the market, the buying habit of clients is characterized by extended problem-solving. Currently, the service offered by TIO is involved in high purchasing due to cultural, social, economic, and psychological factors in dictates consumers’ conduct.
In the market, prospective customers can be segmented based on end-users and they include dentists and orthodontics clinics. These consumers use the promotion services to create traffic in their business to raise profits. Their decision is based on the level of competition, market target, and technology involved. The mentioned factors and the market share of the brand determine the choice of the marketer. The potential buyers of the services are dentist associates and orthodontic clinics. The influencer will be social media platform displaying key information about the various products offered by the practitioners and the decider to purchase the services will be the prospective clients. Occupation, culture, motivation, and lifestyle significantly influence the buying decision of consumers (Lăzăroiu et al., 2020). The client’s journey starts with pre-purchasing followed by consumption of the services then post-purchasing. The buying habit of customers in this market is characterized by extended problems to be solved. In the industry, the services being offered by TIO are highly being purchased. Aspects such as the social and economic setting of the market drive the purchasing conduct.
TIO SWOT Summary
Based on the marketing history of TIO, the company has a positive reputation in performance that makes it capable of attracting more members. It provides an array of membership programs including platinum and community creating room for subscriptions. Furthermore, it undertakes digital marketing making it reliable in promoting ad traffic. In addition, it forms partnerships with various companies enabling it to increase its brand in the industry. Despite the strengths, the agency is facing significant drawbacks such as charging high membership costs for its customers.
Based on changes in the marketing industry, TIO should adopt the usage of AI technology to enhance its promotional services. Furthermore, it should adopt direct-to-consumer practices to accommodate the emerging private orthodontists operating on small scales. The key threats in the marketing industry are new entrance. As the demand for networking increases, many companies will be attracted to the system leading to a high level of competition. Similarly, the advancement in technology is enabling the consumers to market their services independently lowering engagement.
References
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