Ch. 7 - Business Marketing

The sellers of Proactive do not engage heavily in business marketing. As we already know, proactiv products are mostly used for consumption purposes only and so they are consumer products. Proactiv is not quite a business product. It is available in a in few stores and malls around the country in small packs, but they themselves are responsible for their own marketing and making the product accessible to consumers(retailing). The consumer demand for Proactiv far exceeds the demand in the business market. That is why it is hard to come across any Proactiv product in large quantities except online and at kiosks/vending machines.

 Customers buying the solution online is more profitable for the business, that is another reason why it is mainly accessible online. The products are sold on a subscription basis. Basically, a customer signs up for the service and every three months a refill is sent to your address and you are directly charged on your choice of payment. This way consumers/customers are more likely to re-buy the product rather than if they have to go and get it from a store somewhere. 

Ch. 11- Developing and Managing Products

Developing new products is important in sustaining a business and helping it stay relevant in the its market. Innovation helps extend target markets and also lock down customer loyalty because it helps meet both new and existing market requirements. As it is, all businesses revolve around innovation.

The makers of Proactiv have evolved from the original solution made over 20 years ago.  In addition to the other skin care products they make, Drs. Rodan and Fields have reformulated the 3-step system from the ground up. The new product is called Proactiv+, and according to the Dr's, the new product strategy will help them achieve their mission- healthy, beautiful skin for all. The new solution contains powerful complexion-conscious skincare benefits, allowing users to clear and prevent breakouts so that their skin can flourish. Proactiv+ uses exclusive Smart Target™ Technology designed to deliver 50% more acne-killing benzoyl peroxide directly into the pores. They say this helps kill acne-causing bacteria at the source and also helps prevent new blemishes from forming while also reducing irritation. This is a good example of innovation. The makers of the solution recognize the needs of the consumers and made sure they adjust/modify their product in order to accommodate all needs.

Right now Proacvtiv is somewhere between the growth and the maturity stage and they have been for a long time now. Product lines are being extended to appeal to other market segments. They engage in heavy and aggressive brand advertising/ promotions and are rapidly making the product more accessible to consumers and customers all over the world.

Ch. 8 - Segmenting and Targeting Markets

Proactiv is one of the world's leading acne and blemish control treatments and they serve a hefty portion of the acne treatment market all around the world, distributing to about 61 countries. Acne is one of the  most common skin diseases in the United States, affecting over 60 million people. When determining a target market, it is crucial to do  market segmentation. This helps the marketer  narrow down who they'll be selling to and what they'll be offering those individuals in order to meet their needs and wants. It is mentioned that 85 percent of young people between the ages of  12 and 24 suffer from acne and that 25 percent of all adults have active acne. Knowing this kind of information is key when market segmentation is being carried out. Other variables like geographic, demographic, psychographic, benefit and usage-rate segmentation are also used to divide the total market.

The makers and sellers of Proactiv have been successful in positioning the brand on a pedestal giving their competitors a run for their money. Again this is mainly due to their one of a kind marketing strategy which is the use of celebrities who are well known to young individuals. These celebrities are featured in commercials giving testimonials and endorsing the product. This I believe resonates with the young target market and ultimately influences their overall perception of the solution. So far this strategy has been working very well for the marketers of Proactiv.

Ch. 15- Marketing Communications

It is now apparent that Proactiv mainly promotes its products through infomercials from previous posts. Proactiv also uses other channels like billboard and magazine ads to promote sales. All these are means of mass communication directed towards large audiences at a time. The sellers of the solution do not generally use interpersonal communication with customers (with the exception of the online sales persons available on their website ready to help customers directly) and so because of this they take their adverts the extra mile just to put across certain messages they want their customers to receive. Their infomercials last from 30mins up to 1hour at a time and during that time, they bombard the masses with things like celebrity endorsers, satisfied customer testimonials, sales promotions, directions on how to use the products etc. This gives them a comparative advantage over other acne treatment brands and manages to shut down any "noise" that will likely distract the customers and ultimately cause them to seek other brands.

Proactiv also use emails to reach out to their customers/users. Buyers get deals sent directly to their emails when they subscribe to receive products/services. It makes it easier for customers to access or know about deals/promotions and since we live in a technological age, it has become easier for companies to reach out to their customers no matter where they are located. However they are not quite as vibrant on social media (e.g. facebook, twitter, instagram etc.) as they can be. Social Media has become a giant channel for the marketing of goods and services and it should be utilized to the fullest. It allows companies access to their target market and opens doors to more exposure.

Ch. 10 - Product Concepts 

All proactiv products are consumer products, this simply means that the products are bought by consumers with the intention to satisfy their individual/personal needs and wants which is to  remove and also prevent acne breakouts from reoccurring. Usually a buyer of the product goes through an extensive search making comparisons with several other brands to see what will work best for them before they are willing to make a move and invest in the solution, because of this, Proactiv can also be classified as a shopping product. The 3-step acne system kit which includes a cleanser, toner and treatment by proactiv are product items among the wide range of product mix that the makers of proactiv offers its customers. Proactiv has soaps, facial masks, sunscreens, lotions, dark spot removers, deep cleansing brushes, moisturizers etc. In recent times the original Proactiv solution 3-step acne system went through a product modification. This new version is called Proactiv+. It does not contain parabens and it is intended to also act as a moisturizer. Another important aspect of product concept is packaging. The solution comes mostly in a white bottle (sometimes clear  depending on the contents) with turquoise and black writing. Its features are so unique that it could be recognized from anywhere. The bottle itself has informational labeling with descriptions on what the product is for, directions on how to apply it, ingredients and  other info that generally helps the consumer to make proper product selections.

Ch. 17 - Personal Selling and Sales Management 

It is quite uncommon for customers to come face-to-face with sales representatives of Proactiv solution during the buying process. As mentioned in previous posts, Proactiv is mainly sold online, via telephone order or at kiosks. A limited amount of the solution is also carried in certain stores around the country. All of these methods of purchase are carried out using self service. Personal selling is all about getting to know your customers which in turn allows you to perfectly customize an approach needed in getting the customer to buy a  product/service. A salesperson should also be able to show how the product can be beneficial to the consumer. The sellers of Proactiv have a rather unique and advanced way of conducting personal selling. The infomercials/advertising shown on T.V are very informative and actually give detailed explanations and demonstrations on how to use the solution. Also when a prospective or returning buyer logs on to their website, an online sales representative can be reached at anytime via a live chat. They are real life people behind computers attending to online shoppers needs by answering any questions or addressing concerns that the customers may have.  Customer service can also be reached at anytime of the day by dialing an 800 toll free number. These methods communicating with customers is now very common and as Technology is becoming more and more advanced, consumers are becoming heavily dependent on the net for shopping needs. It is very important for companies like Proactiv to follow course and take advantage of growing trends.

Ch. 16 - Advertising, Public Relations and Sales Promotion

So far the sellers of Proactiv have been very successful in implementing and executing their advertisement strategies. Guthy-Renker Corporation, the direct advertising company that introduced Proactiv to the world over 20 years ago mainly specialize in direct-response advertising using widespread television advertisements like infomercials and magazine and web commercials as well. This allows direct contact with their niche market resulting in immediate responses from the consumers of the solution. Back when they first introduced the solution, there wasn't much competition and even now that the acne treatment market has grown and competition multiplied, Proactiv has remained consistent in keeping their product desirable and fresh in the eyes of the public.

Guthy-Renker spends about $110 million to $120 million a year on advertising. A good share of that amount goes towards payment of celebrity endorsements. One could say that Proactiv have mastered the art of rigidly positioning their brand in the ever growing acne treatment market, mainly with the help of their celebrity endorsers. 

In the past, most Proactiv infomercials consisted of the announcer repeating consistently the lines "call now" or "order now" or "limited time offer" or "free shipping if orders are made within the next 10 minutes" and offering other incentives to lure consumers. However in recent times, a slightly different approach has been taken. Those announcements have been limited and the price is less stressed on. More focus is shed on testimonials by both celebrities and other users of Proactiv, all who claim that the solution has worked for them and in some cases, have been life savers in terms of gaining back confidence and embracing blemish free skin. This allows consumers to connect a great deal with the product and feel more confident that the solution would work for them instead of feeling like they are rushed into buying the product. Overall this leads to them feeling like they have value for their purchase.

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