Short Case: Unpredictable demand

The BBC’s Horizon program screened the results of a study of Boots

No7 Protect & Perfect Beauty Serum. A team of dermatologists lead
by Professor Chris Griffiths carried out an independent study into
cosmetic anti-ageing products. The effect of No7 Protect & Perfect
was compared against retinoic-acid, a prescription drug used to treat
severe photo ageing of the skin, and the only product known to have
a clinical effect on facial lines and wrinkles. The research revealed
that in the laboratory tests pioneered by the Manchester team, No7
Protect & Perfect Beauty Serum really can repair the
damage in photo - aged skin that is associated with
fine wrinkles. In the days following the airing of the
programme the £16.75 Boots serum sold out. The
sales volume – usually 1,000 pots of the lotion a week
- reached 60,000 in the first 10 days. Ian Filby, The
Beauty Director of Boots said: "We have been
overwhelmed with the response following BBC
Horizon, with women literally racing each other to get
hold of the last product in stores. We are getting
more stock out to our stores on an hourly basis to
manage demand." To cope with the sudden increase
in demand, boots issued a one product per customer policy in order
to dissuade consumers reselling product on auction sites. A waiting
list was then introduced where approximately 50,000 customers
signed up for the product; orders were being received from as far
afield as the USA and Australia. Despite the efforts of Boots to
supervise sales the product was being sold on E-bay for up to five
times its original price. It took several months for supply to be fully
restored. Despite other more critical studies the product continues
to be a top seller for Boots and the range is sold around the world.
Protect and perfect Beauty serum remains the fastest selling product
in Boots history.
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 Questions
• 1. What action did Boots take to cope with this unexpected
surge in demand?
• 2. What risks were there for Boots when undertaking this
reaction to demand?
• 3. Think of other products or services where there has been an
unexpected surge in demand.
• 4. What have been the successes and failures of the operations
dealing with these surges?