Case study Proactiv - Grade: A. PDF

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Weekly case study for BUS310. Entrepreneurship. Each case is worth 5% of total grade (Grade on this case was A). ...

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Insert Name Here BUS310 Entrepreneurship  Professor DeVincenzi (03/03/2020)

Case Study: Proactiv Q1a. How has Proactiv gone about establishing its brand? I strongly believe that proactive has established itself as one of the strongest brands in the skincare market. As of today, Proactiv is selling its products through infomercials, online via its website, subscription services, and various upscale boutiques and kiosks. Proactiv is now offering its products in Canada, Asia, Europe, Latin America, Australia, as well as in the United States. This is a strong indicator that Proactiv is one of the most respected and appreciated brands on the global skincare market. The fact that Proactiv used celebrities to endorse its products really helped them promote its product. The long list of celebrity that Proactive has been working with include Justin Bieber, Katy Perry, and Adam Levine (Palmer, 2019). The two founders (Katie Rodan and Kathy Fields) started the company because they discovered a huge need. Acne products prior to Proactiv were designed to spot-treat a pimple. None was designed to stop the pimple from forming in the first place. This just did not make sense to the two dermatologists, both from a practical and a medical standpoint. The fact that Proactive managed to solve acne problems, but also prevent new acne from recurring is in my opinion the reason why the company has established itself so well on the world market. Q1b. To what degree do you believe Proactiv is important in its customers’ lives? I strongly believe that Proactive is vital in many of its costumers’ lives. As mentioned in the case study, “the research said that only three percent of the adult population had acne, but both Rodan

and Reids became convinced that the number was higher. They were each 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 suffering from acne and acne-related problems”. There are so many people, both here in the United States and abroad that are suffering from skin problems. Proactive was considered as a medical breakthrough in fighting all acne-related problems. Costumers who have used the product before have seen positive results. It, therefore, became the number one skincare brand to be sold. Thus it became an important product in its costumers’ lives. Q3. Describe Proactive’s positioning strategy. To what extent did the three critical marketing decisions discussed in the case shape the evolution of Proactiv's positioning strategy? P  roactive has, in my opinion, done a fantastic job when it comes to their positioning strategy. Proactiv’s positioning strategy sets them apart from its competitors. As mentioned earlier in this text as well, to partner up with celebrities turned out to be a huge success for Proactiv regarding positive marketing. According to the case study, there were three critical marketing decisions that shaped the future of the company. (I) The first and maybe also the most important decision Rodan and Fields did was to market its product as a skincare product rather than an acne product. They did just look at it as an acne medication product. At the time, the acne market in the United States was about $250 million a year, a low number by consumer product standards. In contrast, the skincare market was several billion dollars a year, making it much more attractive. This helped them reach a wider group of customers and create a broader vision. (II) The second effective market decision was the name of the product that was chosen. The name described exactly what Rodan and Fields were trying to achieve. Proactive was intended to prevent the occurrence of

additional acne-related problems. The name was, therefore, perfect. (III) The third and final decision was to use infomercials instead of commercial or print media. This helped them reach a wider audience. It was also helpful because it educated intended costumers on how to treat and prevent acne. Informercial had great success and sold twice as much as expected (Elliott, 2010). These three marketing decisions played a vital role in Proactiv’s huge success.

References: Elliott, S. (2010, May 4). Trying to Move Up From a Fast-Talking, Buy-Now Approach. Retrieved February 28, 2020, from https://www.nytimes.com/2010/05/04/business/media/04adco.html Palmer, A. (2019, December 4). Does Proactiv Work to Clear Acne? Retrieved February 28, 2020, from https://www.verywellhealth.com/does-proactiv-work-15845...