COMPANY CASE for Chapter 1

Botox: Almost Trouble-Free New Faces

Synopsis

The Botox case illustrates the accidental success of a product developed for an entirely different purpose. Originally, Botox was used in the treatment of crossed-eyes, but ophthalmologists quickly learned that it would also erase wrinkles and frown lines around eyes. It wasn’t long before doctors across the United States were using Botox for treating wrinkles even though Allergan could not promote the product for this use.

The case discusses the advantages (fewer frown lines) and disadvantages and side effects (drooping eyelids and the need to repeat treatments) of Botox; explains what the product is; lists potential target markets; selling of the product at “Botox parties”; use of Botox treatments to attract customers to resorts; Allergan’s marketing of Botox once it was approved for cosmetic purposes and the use of Botox to support the new strategy of Allergan to become a major player in the pharmaceuticals industry. It closes with the observation that the formula for Botox is one of the most closely guarded product secrets in the world—along with the formula for Coca-Cola.

The case is especially useful for discussing added value and the creation of customer satisfaction. It raises questions about the difference between needs, wants, and demands; what constitutes value; is useful for illustrating the difference between a marketing oriented company (Allergan after Botox) rather than a non-marketing oriented company (Allergan before Botox); the potential benefits of marketing and raises questions about societal marketing (should Botox be promoted for cosmetic purposes? Should it be sold through parties?)

The case can also be used to illustrate relationships in the marketing paradigm—between Allergan and doctors, Allergan and final consumers and doctors, and final