Read the following cane carefully and the answer the questions, In the movie w/O John Travol got a new look by exchanging faces with Nicolas Cage. Unfortunately, he or a lot of trouble slong with it. John could receive a much less troublesome new look by using Botox treatment discovered by Vancouver's Dr. Jean Carruthen, who came upon the core potential of Botox in 1982 while treating a woman with eye spasms Botox in marketed by Allegan a specialty pharmaceutical fin. Founded in 1950, Allergan, Inc, with headquarters in levine, California In 1990, Allergan was just a small fimm selling little known eye and skin drug and over-the-counter contact lens cleaners. The introduction of Botox wasn't such a big deal initially. After all, typical of Allergan specialty products, it was just another specialty drug aimed at a small market treatment of cross-eye) and opported by little marketing effort. That was before doctor dincovered that injecting Botosanud eyes not only eliminated ocular problems, it erased frowa lines as well. Once that happened, the bus won between doctors and patients. Before long, plastic surgeons across Canada were giving face-saving injections. Demand also grew for the drug from American doctor, but they initially had to give it to patients as an off-label treatment since Botox was not approved by the FDA for cosmetic use until the spring of 2002. Even though Alletgan could not initially openly market the product for cometic purposes in the United States, by 2001 sales of Botox rocketed to $585 million and were growing between 25 percent and 35 percent per year. That translates into over 1.6 billion Botox Cosmetic procesures performed on roughly 50.000 patients, The good news for Allenan does not end with wiping out frown lines. Botox alio effectively treats migraine headaches, chronic neck and back pain, excessive sweating, and possibly spastic disorders with all those target markets, Botox could become a blockbuster drug - with more than a bilion dollar in males-bringing Allergan out of the backwaters of the plurnaceutical business Botox Counctie is botulinum toxin A, a heavily diluted version of the feared botulinum toxin found in spoiled canned soops and vegetables. It contains only 20 units of the toxin, compared to the thousands of units found in spoiled food, but it works in the same way - by paralysing facial muscles to the point where they can no longer contact Frown lies are definitely a sign of age, use, and wear. They occur when facial muscle contract, dewwing the skin up. When the mudes relas, the lines disappear. As we get older, it becomes more difficult to relax, so that we seldom fully relax our facial muscles Although eliminating frownline sounds great, there is at least one small problem. Totally relased forehead muscles leave you inespable of rendering any expression at or above the eyes. For the celebrities and stars that were among the first to use Botox, this resulted in "performance" problem. One TV sur commented that when the director kept telling her to show anger, she replied "I am, I am." Unfortunately, nothing was moving on the upper half of her face. As a consequence, she stopped using Botox except for Emmy awards night! For others, however, the loss of espression might be a positive Business people seeking a softer look might want to eliminate frown lines that make them look imitated or impatient. Trial lawyers attempting to establish rapport with juris might want to eliminate expressions of annoyance and anger. And sales representatives might want to appear unperturbed by what their clients and customers are saying. But while some observers think Botox could give us a kinder, gentler looking population, others think it could tum us into a world of zombies. Besides loss of expression, Botox produces additional side effect. When used on the forehead and around the eyes, Botox can cause drooping eyelide (you won't be able to close or open the completely - this could be either a sexy or adopsy look). Used around the mouth, Botox may cause slurred speech, droopy mouth, and constant drooling Other possible side effects include muses, allergic reactions, headaches, respiratory infections, the symptoms, and redness and welling around the injection. The redness and swelling melly go away in a couple of days Become a Botos cosmetic treatment lasts only three to us months, all side effects are temporary. This also means, however, that Botox treatments must be repeated when the effects wear off. While that is bad news for consumers, it's good new for doctors and marketers of the day. The tegits on Botos are quite high-around 80 percent. A vial of Botox Cosmetic costs about $780.00 and can be wed for four injection Max patients have more than foutjections during a single visit became they get multiple areas on their face injected with Botos se depending on the doctor's pricing cheme, each treatment can be $975 to 51900. That's quite a nifty profit for a treatment that mually takes less than 15 tates and are quite a bill for the patient, because in anince companies do not pay for Boros Cometic treatments. Botos has become so lucrative and the demand so great that the treatments are sometimes offered in panty atmosphere. Doctors wally ask a current patient to invite 10 to 15 prospective clients to a party at his or her home, where the partygers we offered such tidbits is chocolates, brie, and champagne. After a brief social period, the doctoe gives the lecture on Botox and invites the partygoers to sign up go treatment. Patients take turns leaving the moon, to take the apple of other partygoers, and the doctor gives the injections in private. Parties provide a nonclical atmosphere more conductive to patients receptivity and reduce the time and couts incurred by the doctor. Even good champagne cost lesa than munes, receptionists, and rent, and the doctor can give patient a price break maybe charging only $250 per treatment at party, Thus,partiet are good for everyone, Some doctors, however, object to the party scene" on the basis that this is a medical treatment and not a social gamick. Therefore, thy hold multiple client sesions in their offices in the evening with the same benefits of price breaks for patients and lower costs and less time for themselves, Once allowed to advertise Botox for cosmetic purposes, Allergan wanted to capitalue on ita popularity. It identified the primary macet us the approximately 29 million women between the age of 30 and 54 with household incomes over $95.000. Within that market, the company believed that 7 million women greatly concerned about their appearance were likely to be heavy unc. While women constitute the bulk of the market, there are also plenty of guys who want smoother forcheal Middle-aged men made up 13.8 percent of the market for Botox in 2001, up from 61 percent the year before, muling makes the fastest growing usersement To teach these markets. Allergan began spending $98 million on marketing in 2002. The backbone of this commer oriented campaign was advertisements on TV and in twenty-four magazines such as People, The New Yorker, Vou, and Isle Allergan estimated that 90 percent of the audience would see ad at least ten times a year. Most of the ads featured models in everyday clothing and wenting wedding bands a look that communicated the message that Botox is for everyone. In addition to the consumer campaign, Alergan began an industry outreach campaign directed at doctors and pharmacists. Beginning with the company website (www.allergan.com), health professionals could obtain information about Botox and its use. The company also beefed up its cales force and armed salespeople with promotional material for distribution to health professionals. Finally, it concocted clines demonstrating the appropriate use of Botox in treating patients for cosmetic purposes. All of this was part of CEO David Pyott's plan to more Allergan into position as a major player in the pharmaceuticals industry. When he took office in 1998, he found that Allergan had not changed its strategy in decades. Among his first moves were clowing plants, clashing jobs, and cutting overbead. To refocus the company, he selected target industries for growth and started making the moves necessary to achieve that growth. The company increased R&D expendinutes by 26 percent and expanded the sales force by 28 percent. Ara tesult, Allergn actually employed more people by the end of 2002 than it had two years earlier. The expanded sales force allowed Allergan to establio relationships with many more doctors and pharmacists, relationships that Pyott believes are the basis for sales growth. After all, patients don't buy treatment directly doctor boy Botox and use it on patients. As of 2009, David Pyott remain Chairman of the Board and CEO. Allergan's major growth opportunity is the ophthalmologic market, where rival Alcon is number one. The second growth target will be dermatology, where Botox gives the company a major advantage and where it can grow by acquiring new formulus or purchasing a license from a foreign producer. Doing that is more cost-effective thun developing new products in the R&D laboratory from scratch. Alergan increased R&D pending 15 percent in 2008 over 2007, to approximately 5729 million. Allergan tank in the top quartile of its peer group companies for R&D investment as a percentage of sales in both the pharmaceuticalsad medical device industries Sales of Botox fuel much of this growth, Alleryan's marins on Botox are about 6 percent. To prevent the competition from developing their own Botos, the formula for making it is one of the most closely held secrets in the world With the dollars from Botos, Allergan can increase its marketing efforts, add products to its line, and attack competitors. The test news of all is that sales of Botox are not likely to decline unless consumers and movie starts suddenly face up to this age- wrinkles and all 1- What is the market(s) of Botox? loter customers are working mothers in their 40s and 50% and women who want to present force wrinkler, laywer, bonness man 2. What are the needs wants, and demands of consumers of Botox products in its different treatment markets? cross-et brown lines, migraine headaches, chronie noch vel bet prin excestive sweeling, and perside spastic disorders 3- What value does Botox deliver in each market? Hean reduce wrinkles in older customers and procent you comert: 4- When doctors treat patients with Botox in their office, is that an example of a selling concept or a marketing concept? Justify your answer. Which concept applies when the hold parties for patients in private homes? Justify your answer. If Botox is planning to grow in the next five years, what are your growth recommendations with focus on intensive growth strategies only? 6 Using SWOT analysis, analyze the marketing environment of Allergen Company which is producing Botox Read the following cane carefully and the answer the questions, In the movie w/O John Travol got a new look by exchanging faces with Nicolas Cage. Unfortunately, he or a lot of trouble slong with it. John could receive a much less troublesome new look by using Botox treatment discovered by Vancouver's Dr. Jean Carruthen, who came upon the core potential of Botox in 1982 while treating a woman with eye spasms Botox in marketed by Allegan a specialty pharmaceutical fin. Founded in 1950, Allergan, Inc, with headquarters in levine, California In 1990, Allergan was just a small fimm selling little known eye and skin drug and over-the-counter contact lens cleaners. The introduction of Botox wasn't such a big deal initially. After all, typical of Allergan specialty products, it was just another specialty drug aimed at a small market treatment of cross-eye) and opported by little marketing effort. That was before doctor dincovered that injecting Botosanud eyes not only eliminated ocular problems, it erased frowa lines as well. Once that happened, the bus won between doctors and patients. Before long, plastic surgeons across Canada were giving face-saving injections. Demand also grew for the drug from American doctor, but they initially had to give it to patients as an off-label treatment since Botox was not approved by the FDA for cosmetic use until the spring of 2002. Even though Alletgan could not initially openly market the product for cometic purposes in the United States, by 2001 sales of Botox rocketed to $585 million and were growing between 25 percent and 35 percent per year. That translates into over 1.6 billion Botox Cosmetic procesures performed on roughly 50.000 patients, The good news for Allenan does not end with wiping out frown lines. Botox alio effectively treats migraine headaches, chronic neck and back pain, excessive sweating, and possibly spastic disorders with all those target markets, Botox could become a blockbuster drug - with more than a bilion dollar in males-bringing Allergan out of the backwaters of the plurnaceutical business Botox Counctie is botulinum toxin A, a heavily diluted version of the feared botulinum toxin found in spoiled canned soops and vegetables. It contains only 20 units of the toxin, compared to the thousands of units found in spoiled food, but it works in the same way - by paralysing facial muscles to the point where they can no longer contact Frown lies are definitely a sign of age, use, and wear. They occur when facial muscle contract, dewwing the skin up. When the mudes relas, the lines disappear. As we get older, it becomes more difficult to relax, so that we seldom fully relax our facial muscles Although eliminating frownline sounds great, there is at least one small problem. Totally relased forehead muscles leave you inespable of rendering any expression at or above the eyes. For the celebrities and stars that were among the first to use Botox, this resulted in "performance" problem. One TV sur commented that when the director kept telling her to show anger, she replied "I am, I am." Unfortunately, nothing was moving on the upper half of her face. As a consequence, she stopped using Botox except for Emmy awards night! For others, however, the loss of espression might be a positive Business people seeking a softer look might want to eliminate frown lines that make them look imitated or impatient. Trial lawyers attempting to establish rapport with juris might want to eliminate expressions of annoyance and anger. And sales representatives might want to appear unperturbed by what their clients and customers are saying. But while some observers think Botox could give us a kinder, gentler looking population, others think it could tum us into a world of zombies. Besides loss of expression, Botox produces additional side effect. When used on the forehead and around the eyes, Botox can cause drooping eyelide (you won't be able to close or open the completely - this could be either a sexy or adopsy look). Used around the mouth, Botox may cause slurred speech, droopy mouth, and constant drooling Other possible side effects include muses, allergic reactions, headaches, respiratory infections, the symptoms, and redness and welling around the injection. The redness and swelling melly go away in a couple of days Become a Botos cosmetic treatment lasts only three to us months, all side effects are temporary. This also means, however, that Botox treatments must be repeated when the effects wear off. While that is bad news for consumers, it's good new for doctors and marketers of the day. The tegits on Botos are quite high-around 80 percent. A vial of Botox Cosmetic costs about $780.00 and can be wed for four injection Max patients have more than foutjections during a single visit became they get multiple areas on their face injected with Botos se depending on the doctor's pricing cheme, each treatment can be $975 to 51900. That's quite a nifty profit for a treatment that mually takes less than 15 tates and are quite a bill for the patient, because in anince companies do not pay for Boros Cometic treatments. Botos has become so lucrative and the demand so great that the treatments are sometimes offered in panty atmosphere. Doctors wally ask a current patient to invite 10 to 15 prospective clients to a party at his or her home, where the partygers we offered such tidbits is chocolates, brie, and champagne. After a brief social period, the doctoe gives the lecture on Botox and invites the partygoers to sign up go treatment. Patients take turns leaving the moon, to take the apple of other partygoers, and the doctor gives the injections in private. Parties provide a nonclical atmosphere more conductive to patients receptivity and reduce the time and couts incurred by the doctor. Even good champagne cost lesa than munes, receptionists, and rent, and the doctor can give patient a price break maybe charging only $250 per treatment at party, Thus,partiet are good for everyone, Some doctors, however, object to the party scene" on the basis that this is a medical treatment and not a social gamick. Therefore, thy hold multiple client sesions in their offices in the evening with the same benefits of price breaks for patients and lower costs and less time for themselves, Once allowed to advertise Botox for cosmetic purposes, Allergan wanted to capitalue on ita popularity. It identified the primary macet us the approximately 29 million women between the age of 30 and 54 with household incomes over $95.000. Within that market, the company believed that 7 million women greatly concerned about their appearance were likely to be heavy unc. While women constitute the bulk of the market, there are also plenty of guys who want smoother forcheal Middle-aged men made up 13.8 percent of the market for Botox in 2001, up from 61 percent the year before, muling makes the fastest growing usersement To teach these markets. Allergan began spending $98 million on marketing in 2002. The backbone of this commer oriented campaign was advertisements on TV and in twenty-four magazines such as People, The New Yorker, Vou, and Isle Allergan estimated that 90 percent of the audience would see ad at least ten times a year. Most of the ads featured models in everyday clothing and wenting wedding bands a look that communicated the message that Botox is for everyone. In addition to the consumer campaign, Alergan began an industry outreach campaign directed at doctors and pharmacists. Beginning with the company website (www.allergan.com), health professionals could obtain information about Botox and its use. The company also beefed up its cales force and armed salespeople with promotional material for distribution to health professionals. Finally, it concocted clines demonstrating the appropriate use of Botox in treating patients for cosmetic purposes. All of this was part of CEO David Pyott's plan to more Allergan into position as a major player in the pharmaceuticals industry. When he took office in 1998, he found that Allergan had not changed its strategy in decades. Among his first moves were clowing plants, clashing jobs, and cutting overbead. To refocus the company, he selected target industries for growth and started making the moves necessary to achieve that growth. The company increased R&D expendinutes by 26 percent and expanded the sales force by 28 percent. Ara tesult, Allergn actually employed more people by the end of 2002 than it had two years earlier. The expanded sales force allowed Allergan to establio relationships with many more doctors and pharmacists, relationships that Pyott believes are the basis for sales growth. After all, patients don't buy treatment directly doctor boy Botox and use it on patients. As of 2009, David Pyott remain Chairman of the Board and CEO. Allergan's major growth opportunity is the ophthalmologic market, where rival Alcon is number one. The second growth target will be dermatology, where Botox gives the company a major advantage and where it can grow by acquiring new formulus or purchasing a license from a foreign producer. Doing that is more cost-effective thun developing new products in the R&D laboratory from scratch. Alergan increased R&D pending 15 percent in 2008 over 2007, to approximately 5729 million. Allergan tank in the top quartile of its peer group companies for R&D investment as a percentage of sales in both the pharmaceuticalsad medical device industries Sales of Botox fuel much of this growth, Alleryan's marins on Botox are about 6 percent. To prevent the competition from developing their own Botos, the formula for making it is one of the most closely held secrets in the world With the dollars from Botos, Allergan can increase its marketing efforts, add products to its line, and attack competitors. The test news of all is that sales of Botox are not likely to decline unless consumers and movie starts suddenly face up to this age- wrinkles and all 1- What is the market(s) of Botox? loter customers are working mothers in their 40s and 50% and women who want to present force wrinkler, laywer, bonness man 2. What are the needs wants, and demands of consumers of Botox products in its different treatment markets? cross-et brown lines, migraine headaches, chronie noch vel bet prin excestive sweeling, and perside spastic disorders 3- What value does Botox deliver in each market? Hean reduce wrinkles in older customers and procent you comert: 4- When doctors treat patients with Botox in their office, is that an example of a selling concept or a marketing concept? Justify your answer. Which concept applies when the hold parties for patients in private homes? Justify your answer. If Botox is planning to grow in the next five years, what are your growth recommendations with focus on intensive growth strategies only? 6 Using SWOT analysis, analyze the marketing environment of Allergen Company which is producing Botox