CASE 11.2 Proactiv: How Three Critical Marketing Decisions Shaped a New Venture\

Question

CASE 11.2 Proactiv: How Three Critical Marketing Decisions Shaped a New Venture's Future Facebook: Proactiv Bruce R. Barringer, Oklahoma State University R. Duane Ireland, Texas A&M; University In 1995, two dermatologists, Dr. Katie Rodan and Dr. Kathy Fields, developed what they believed was a medical breakthrough in fighting acne. Their mission: to help millions of people rid themselves of acne and acne- related problems. They named their product Proactiv Solutions. This name was choeen because the product could heal existing biemishes and proactively help prevent new ones from forming how surprised they were at the number of acne patients they were seeing. At the time, the medical research said that only 3 percent of the adult population had acne. Rodan and Fields became convinced that the number was higher. They were eech seeing acne patients on a daily basis, and they weren't just seeing teenagers They were seeing women in their 20s, 30s, 40s, and even in their 50s who were sufering from acne and Rodan and Fields decided to form a partnership to investigate the acne issue further. They started by talking to their patients, asking them a wide range of acne-related questions. What they found was that the vast majority of their patients hated the acne products on the market. The most common complaints were that Today, Proactiv is the number one selling acne product in the United States, even though it's not available in most stores. It's sold primarily through nfomercials, the company's Web site, a subscription service called the "Proactiv Solution Clear Skin Club. and in select upscale boutiques and kiosks. The way Proactiv reached the point it currently occupies is an interesting story. Early in its life, Proactiv was shaped by three critical marketing decisions, from which the company has not wavered, even to this day. This case recounts these decisions and discusses how the decisions shaped this entrepreneurial venture's future. rritating. Worst of all, patients told Rodan and Fields the available products did not work. At this point, the two physicians started thinking there might be an Rodan and Fieldsspent the next couple of years market. After testing many of the products on their patients, they made what they believed was a shocking discovery. All of the products on the market were Katie Rodan and Kathy Fields met while they were working summer jobs at a cardiovascular research lab in designed to spot-treat a pimple-none were designed f Los Angeles. The lab was developing a drug to treat post-heart attack patients. Both Rodan and Fields enjoyed the exciting pace of the work as well as the camaraderie they shared with the lab's researchers and see a pimple, whatever treatment you administer, it's too doctors. After earning their college degrees, they both lite too late. In their went to medical school and became dermatologists They stayed in touch and often shared with one another your teeth and going to the dentist to fill cavities. Why stop the pimple from forming in the first place. This just didn't make sense to the two dermatologists-from boh a practical and a medical standpoint. By the time you prevent acne from developing was akin to not brushing

Explanation / Answer

1. Proactiv was invented by two dermatologists who understood that acne and acne related problems are common in people of all ages and in the market there are medicines to cure the problem but not to prevent it. Hence bringing such product in the market that can solve this issue of the people dealing with skin problems related to acne was the strategy of the doctors.

Proactiv is important for the customers because though acne does not harm the person like a disease but is painful and makes the person feel ugly and irritating with a long term problem. People dealing with it have no option than just to get treatments done when it occurs and a product that will help them to fight this problem at all will be very much liked by them. Hence people of all ages suffering from this problem require this product as their essentials.

2. The things that Rodan and Fields learnt that persuaded them that informercials were the best way to sell Proactiv were that people had to be made aware about how they can be treated for acne. This reeducation was not possible to be done in a 30-60 secs or printed advertisement. The problem of acne is something people do not like to discuss about publicly and informercials will help them to learn about it closed in their rooms. The people who watch informercials most on television are women from ages 20-50 which are the taregt customer for the product. It can display the real people and their experiences on having used the product on their skins.

Informercials were a better choice than television ad of 30-60 secs or a print ad because both these ads are done in a brief manner. It would help in introducing the product but couldn't make the customers feel connected to it. To make them realise the need of the product in their lives a detailed advertisement through informercials had to be done.

3. Proactiv's positioning strategy was to focus on women of ages 20-50 who face acne and acne related problems and make them realise how instead of being treated later on these problems can be prevented by the use of this product.

The three marketing decision helped in the positioning of the product in following ways-

- We are a skin care company- the criteria here was that not to categorise Proactiv as an acne related product but give it a larger market by categorising it as a skin care product which futher could be sub-categoised as a product to work for acne prevention. Skin related products have a bigger market and hence more numbers of customers could be trgeted by this decision.

- naming the product Proactiv- this name itself cleared the purpose of the product as the product worked proactively and not reactively. It is used before the problem starts for avoiding it to start hence the name gave a clear meaning to the customers helping in the right positioning of the product.

- Infomercials- the product was new in the market and reeducating people about it wasn't possible through a short and brief advertisement on tv or on print. Hence informercials was the best way to advertise the product explaining every detail about its unique and helpful features. Also this way it could target the customers who would actually buy the product. Hence it was also a method of positioning the product successfully in the market.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.