Ch. 4 - The Marketing Environment 

After reading this chapter from the marketing textbook, I got really excited knowing that there was a lot to talk about Proactiv and their marketing environment. Their target market is made up of both males and females not forgetting teens who suffer from acne breakouts. With  Acne being the most common skin disorder in the United States, affecting 40 to 50 million Americans of all ethnicity, it is quite obvious that the makers of proactiv had their work cut out for them in the beginning but seem to have done an excellent job in curbing acne and its negative effects. In my opinion, The best thing the makers of Proactiv did was handing over marketing issues to Guthy&Renker, an independent marketing company. They have done a very good job and are probably the reason why Proactiv is the success it is today.

When evaluating a marketing environment, it is vital to understand the targeted customers,their needs, what drives their decision to buy products/services and most importantly, competition. All these external factors are needed in order for a company to make smart decisions that would not just drive sales but also make their products relevant to those who buy it. Economic and social factors also play an important role in enabling consumers to buy products/services. Understanding these factors will help marketing managers integrate it effectively into their marketing plans.

Proactiv is an easy 3-step cleansing system designed to help clear up acne and prevent future breakouts. The product is readily made accessible to consumers without the need of a prescription from a doctor and is sold online, by telephone, or through kiosk located in shopping malls throughout the country. The kit is retailed for $20-$50 together with other products that complement the 3-step treatment system making it affordable compared to other brands that works just as well as Proactiv. Part of Proactiv's marketing strategy in promoting their products is using celebrities for advertisement. The reason why most people would trust to buy products especially those used on the body and face is through testimonials from previous users. What better way is their to promote a product than the use of celebrities as spokespeople and endorsers, especially those that have the same problems as the rest of us. This brief summary above makes for a very effective marketing mix(four P's; Product, Price, Promotion and Place) which when done the right way provides for mutually satisfying exchanges with the target market.

Ch. 3 - Ethics & Social Responsibility 

Most good companies are built upon sound business practices and in order for businesses to help create order and promote prosperity in our societies, they should be involved in strong ethical business practices. However it is always easier said than done because you just cannot develop them overnight as many factors determine the nature of ethical decisions. Ethics is defined as the moral principles or values that govern the conduct or behavior of a person or group. Knowing this, it is just not important for businesses to be built upon good ethics but also it is imperative for the business to hire ethical people to run it. Another option that has become popular of late is the introduction of code of ethics in some business settings. These written codes are used as guidelines to help marketing managers and employees in general to make better decisions.

Social Responsibility (aka. Corporate Social Responsibility) is an ethical framework which suggests that businesses should voluntarily have concern for the welfare of the societies in which they operate in. Meaning a balance should be sustained between the businesses interests and activities that directly advance social objectives in a good way. The pyramid of CSR has four main components. It has economic performance, which is for a business to be profitable, as the foundation of the three other responsibilities which are Legal(obey the law), Ethical(do what's right and avoid harm) and Philanthropic(be a good corporate citizen and contribute resources to the community). A new theory in social responsibility which also drives corporate success is Sustainability which is the idea that companies that are socially responsible will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profits and help the world at the same time. This is mainly true because companies that are involved in social responsibility are more likely to attract loyalty from customers and the public at large who have similar concerns as them.

The founders of Proactiv Solution have another business venture by partnering with independent business owners and giving them the opportunity to earn income based on sales of their products under the name of Rodan + Fields Dermatologists. They are very active in empowering independent business owners by giving them competitive pay and good benefits. Rodan and Fields also came up with The Prescription For Change™ (PFC) Foundation. The PFC Foundation supports students in need on their journey to becoming a "prescription for change" in their communities by fostering belief in themselves. This is a good example for Corporate Social Responsibility because not only do they have individuals helping to boost their sales in exchange for compensation, they are also helping to contribute resources to the community which satisfies both the company and society's interests. Rodan and Fields PFC Foundation are also involved in partnerships with non-profit organisations like Attitudes & Attire and buildOn, one provides the tools to raise self esteem, promote ethics and build the confidence necessary for women in need to develop successful life and job skills; the others goals are to break the cycle of poverty, illiteracy and low expectation through youth services and education.

sources: www.rodanandfields.com, MKTG, Pronciples of Marketing by Lamb Hair and McDaniel

Chp. 2 - Strategic Planning for Competitive Advantage 
 

 

 

For any business to become successful, there must be strategic plans put in place first or else it'll be hard for the business to accomplish its intended goals. A strategic plan should cover all bases and aspects of the business and if it is executed accordingly, it'll help the business leader better allocate time and resources in an effective and efficient way. This is in line with the definition of Strategic Planning in the text book MKTG-Principles of Marketing, student edition 8 by Lamb, Hair and McDaniel which states "Strategic Planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities". Since this is a marketing blog, the main focus would be on Proactiv and their marketing plan which I believe has helped them evolve into the giant success they are today. Elements of a marketing plan include- A Mission Statement; Situation or SWOT analysis; Objectives; Marketing Strategy (Target Market Strategy and Marketing Mix) and Implementation, Evaluation, Control

 

After Dr's Katie Rodan and Kathy Fields agreed to work together to create a preventive treatment for acne, they came up with business ideas but once developed, their product was rejected by several distributors. Guthy-Renker finally agreed to market it in 1995. Guthy-Renker is an independent direct marketing company and are Known for making award-winning productions and marketing campaigns featuring some of today’s leading celebrities. It has become quite common where inventors make their products and bring on direct marketing companies who have more knowledge of the marketplace, to take on responsibility and deal with marketing strategies.

 

Celebrity endorsements play a huge part in Proactiv's marketing strategy and making its products more attractive to its users giving them a competitive advantage. While a clinical study showed that Proactiv reduces comedones, inflamed lesions and facial oiliness, an 80-person consumer report concluded that Proactiv is equally effective as cheaper drugstore products. This however, hasn't stopped them from spending between $12-$15 million on celebrity endorsements each year and also spending $200 million a year air-time for commercials. Celebrity endorsers include the likes of Lindsay Lohan, Justin Beiber, Adam Levine, Julianne Hough, Zendaya Coleman, Jessica Simpson and Jurnee Smollett-Bell etc.

With over 60 million Americans having active acne, Proactiv serves a hefty target market and have maintained a marketing mix(the four P's) that provides them with mutually satisfying exchanges with their target market.

Product- the producers of Proactiv have continuously been innovative with heir products .Not only do they have various products for all kinds of skin-care purposes, the directions of applying the products are made easy to understand, there's money back guaranty incase a customer decides the product is not for them and discontinues the use of it.

Place (distribution)- Proactiv is mainly made available via the internet or by placing a toll-free call which saves its customers time from having to go to a physical store to buy it also saving them embarrassment since acne is considered a "social taboo". Products is also available in automated vending machines in some parts of the U.S and shipping is delivered swiftly from date of purchase.

Promotion- as mentioned before, celebrity endorsements play a crucial part in promotions and in addition to that, many stories of real life users are used in commercials. They mostly show before and after pictures of the users once again reminding and persuading existing and potential customers of the effectiveness of the treatment.

Pricing- Great deals are made on the products on a regular basis. They show how much the products would regularly cost compared to how much it is being sold for at that particular time. This I believe boosts sales while leaving the customers feeling like they have value for their exchange.

 

 

 

"Now I can go into any meeting, any situation, and not worry about my skin." Jodi, 33

"I am just thrilled. I didn't expect my skin to look this clear." Jillian, 30

Sources: Wikipedia, www.proactiv.com, www.guthy-renker,com
 

Chapter 1 - Proactiv (An Overview)

Proactiv solution is a brand of acne treatment and skin-care products developed by two dermatologists Drs. Katie Rodan and Kathy Fields in 1995 and is distributed by Guthy-Rekner a direct marketing company. Proactiv's original and primary product is a three-step acne treatment kit. The kit includes a cleanser, toner and repairing treatment that contain benzoyl peroxide and glycolic acid as their active ingredient. After 20 years of successful business and after selling other varieties of the product in Gentle formula and Extra Strength, Proactiv has now reformulated a new 3-step acne treatment system by the name of  Proactiv+ to help achieve their mission - "healthy, beautiful skin for all". This treatment clears acne and prevents future breakouts.The new formula has complexion-conscious skincare benefits by using exclusive Smart Target™ Technology designed to deliver 50% more acne-killing benzoyl peroxide directly into the pore-where acne starts . Proactiv has other skin-care products sold under its brand name such as face masks, body washes, deep cleansing brushes, dark spot serums and X Out™ a one-step Wash-In Treatment designed for teens. Proactiv is sold on a subscript basis and as of 2007, worldwide sales of Proactiv were $850 million annually, 70 percent of which were in the US. Proactiv can be purchased outside of retail stores, as of 2010, 60 percent of Proactiv orders were placed online.It is also sold through a toll-free telephone number, in mall outlets, in vending machines and in certain boutiques.

"With Proactiv+, our goal is to give

everyone the clear skin we all deserve plus

the healthy, glowing, radiant complexion

we all want."- Drs. Rodan and Fields