Natisha N. Young Marketing Principles/310, Section, Summer
2014) 1 ProActiv
Slide 2
Executive Summary 2 Prepare this slide last and submit with
your finished product at the end of the semester. An executive
summary should include: 1. Summary of key findings in t16he
analysis of the current marketing situation 2. Briefly state your
marketing mix recommendations for the coming year. (See Appendix 1,
pg 612 in the text 15 th ed. or find the related appendix in the
online version for example, but be sure to frame it as a Power
Point, not prose)
Slide 3
Table of Contents 3 Market description Segmentation (describe
target market using segmentation characteristics)5-6 Marketing
targeting strategy7 Value proposition8 Factors influencing consumer
behavior of the primary target market9 Buyer decision process of
the primary target market10-11 Product review12 Levels of
product/service12 Type of product/service13 Product/service life
cycle14 Benefits/features analysis15 Differentiation16 Branding
strategy17 Competitive review18 Competitive analysis18 Market
share19 Competitive positions and roles20 Strategic sweet spot21
Positioning22 Distribution review23 Current supply chain members
and roles23 Value-delivery network analysis24 Current type of
distribution strategy25 Strengths, Weaknesses, Opportunities, and
Threats Analysis (SWOT)26 Microenvironments27
Macroenvironments28
Slide 4
Section A Current Marketing Situation 4
Slide 5
A.1.a. Market Description Description of market segments 5
ProActiv primary target is between the ages of 24 and 65. They are
female urban professionals with at least some college. This
consumer has an active lifestyle. They are concerned about social
and environmental issues. Mind and body wellness are important to
them. They belong to a health club; take yoga, Pilate's or tai chi
lessons. The effects of aging and the maintenance of a youthful
appearance are a part of their life. The secondary target market is
females between the ages of 18 and 30, at both secondary and post-
secondary education levels. Students and recent graduates, located
in major urban markets are important for this target market because
the majority of students are situated in the more populated areas
of cities. This target market would be more inclined to utilize
untraditional media for information, in the way of social media and
online advertisements The third market that is trying to be reached
is professional single men between the ages of 20-45 with a gross
household income of $45,000 to $85,000. These men are concerned
with impressing not only the opposite sex, but their employers
within the workplace. These professionals earn middle to upper
class incomes and live in urban and suburban areas. They are
trendsetters that want to be the first out of their friends to try
new products.
Slide 6
A.1.b. Market Description Current Marketing Targeting Strategy
6 Paid media- ProActiv will shift their commercials from mainstream
shows like Glee to more male- dominate shows like ESPN First Take.
The commercials will demonstrate how young men were able to clear
up their skin and get the girl that they had been chasing for a
date, how happier the man is because his social life is thriving
after his acne cleared up, and show professional athletes of all
sports claiming that they suffered with acne and how it affected
their livelihood, prior to using ProActiv. An example of this is
when ProActiv previously sponsored the longtime acne sufferer, 21
year old NASCAR driver, Danny Efland to drive the ProActiv Chevy
Impala during NASCAR Nationwide Series race at the Daytona
International Speedway in Daytona, FL on Friday, July 2, 2010
(Unknown, 2010). Earned media- ProActiv gains this from the work of
mouth that celebrities offer when they are being interviewed and
the interviewer inquires about how great their skin looks. They
also achieve this from every day average people that get
complimented on their complexion and the person mentions that they
use ProActiv. More male actors and celebrities should be endorsing
the product which will increase the machismo of the product. Owned
media- ProActiv has its own website and displays women and their
life changing stories. Men should have a presence on the website
and their success stories will be listed. The website also has
websites for most countries in their native language. There is a
toggle on the bottom right side of the website for consumers to
pick the country that they are in and the website will load in
their language. ProActiv also has millions in hits on YouTube and
thousands of Facebook fans and Twitter followers that are
worldwide. They are gaining promotional leverage from all their
young hot celebrities that have millions of fans following them on
their Facebook, Twitter, Google+, Pinterest, and other social media
websites. Shared media- ProActiv has an interactive link on their
website and their social media sites like Facebook, YouTube, and
Twitter for fans to express their experiences with the products,
whether it is positive or negative. It gives the consumer a chance
to tell their aspect of the product and the products effectiveness
to either counteract or support the claims that are made by
ProActiv. There will be a more gender unspecific viewpoints to draw
in the male audience. ProActiv will increase their presence in
social networks and blogs with main concepts of sports
discussion.
Slide 7
A.1.c. Market Description Value Proposition 7 The companys
time-tested unique selling proposition has been its promise to
deliver blemish-free skin with a product that is characterized by
its ease of use and that does not dry out your countenance, unlike
some competitors products devised to treat acne. ProActiv has
traditionally relied on celebrity endorsers claiming that they owe
their clear skin to or maintain it with ProActiv. This helps pull
younger prospects, including teens, especially as they are the ones
who are likely to suffer most from an outbreak of acne. The product
relies on the buzz created when youngsters who dont have their own
credit cards ask their parents to buy ProActiv.
Slide 8
A.1.d. Market description Factors influencing consumer behavior
8 Sociocultural Forces. One potential competitive advantage for
ProActiv is that it is targeted toward s the upper middle class
market as a prestige product that is exclusively researched,
provides consistent results, and can be customized to their
individual preferences. Targeting to this market keeps the company
stable because they are less likely to be affected by the economic
slowdown and can afford to keep purchasing the product.
Slide 9
A.1.e. Market description Buyer decision process 9 Consumer
behavior can be defined as the buying behavior of final consumers-
individuals and households who buy goods and services for personal
consumption. Consumer behavior is strongly influenced by many
uncontrollable factors namely cultural, social, personal and
psychological. Marketers cannot control these factors, but it is a
must to take them into consideration (Enderson, 2013). People
purchase the Facial Treatment Essence is normally based on the
complex buying behavior. The price of this essence is expensive if
compare with many other brands of its kind, thus it is quite risky
to purchase. The consumer usually will get loads of information
about this product from many sources before purchase. The
significant difference of this product is the unique ingredient
called Pitera. Pitera is the secret to flawless skin which can only
found in ProActiv products. It is a naturally-occurring liquid from
the yeast fermentation process uses exclusive yeast which differs
from other skin care brands that based on yeast from beer
(Enderson, 2013).
Slide 10
Continued 10 Research suggests that a consumer passes through
five stages of buyer decision process as shown in figure 1.
Generally, consumers of ProActiv follow this theory. The first
stage is problem recognition. At this stage, the consumer
recognizes the need of a skin care product. The second stage is
information search which is when the consumer tries to search for
some alternatives skin cares brands. Next stage is evaluation of
alternatives. The consumer will evaluate the value of different
brands, products and services. The following step is the purchase
decision. The consumer makes a decision and selects ProActiv to
solve the problem. On the post-purchase evaluation stage, the
consumer will continue to use the same product if satisfied with
the product. However, sometimes consumers may not follow the
sequence of the buyer decision process or may not go through all
the process in the real world.
Slide 11
A.2.a. Product Review Levels of product/service 11 The
persistence with three phases of cleansing, toning and refining is
indicative of how the company has stuck with the same design for 17
years, despite some modification of the formula. An unchanged
product has its attractions, as it tells a prospective buyer that
the manufacturer got it right the first time. Although there are
negative reviews about the product and its ordering process,
ProActiv has its loyal repeat buyers who have helped the product
remain a viable commercial proposition for nearly two decades. No
acne product works uniformly on every user, every time. And a
manufacturer will want to get it right most of the time. That said,
ProActiv does not do anything differently, as compared with other
competitive products, and uses benzoyl peroxide for acne treatment.
How ProActiv differentiates itself from competitors is in its ease
of application and its non-irritability. User reviewers of ProActiv
are split evenly between those who rave about the product and those
who deny that it works. The apparent reason for such mixed reviews
is benzoyl peroxide which suits some people and doesnt suit others,
who are allergic to it. The company also offers a gentle version,
with salicyclic peroxide, for those users who are allergic to
benzoyl peroxide. We also have to take into account those users who
do not follow the manufacturers instructions religiously and so may
not be deriving optimal benefit from using ProActiv. Such users
might complain about the non- effectiveness of the product.
Additionally there are many types of acne some of which might not
respond to ProActiv and could need the active intervention of a
dermatologist and prescriptive drugs to treat them. But if you dont
get your hopes up by taking the claims made in ProActiv
infomercials literally, you could end up appreciative of any
results you might see, rather than having unrealistic expectations
and ending up disappointed. It is not possible to get a guarantee
from any acne treatment company that its product is sure to produce
results for every user. However, ProActiv gives a guarantee of
refund if you are unhappy with the product and return it to the
company. Some user reviewers have complained about the companys
auto-ship policy. But if you understand the ordering process, you
will find that you can cancel your order and ensure that such
automatic shipping does not take place. If you have tried other
acne treatment products to no avail, you should try ProActiv. The
large majority of users have found it to produce positive results,
and it might work for you as well.
Slide 12
A.2.b. Product Review Type of product/service 12 Specialty
Consumer product Customer buying behavior- strong brand preference
Price-products are at the top of the price scale for their category
in the industry. ProActiv mostly uses psychological pricing to see
their products. Distrubution- uses the intermediaries of direct
marketing and selling to distribute their products. It is
exclusively distributed. It can only be purchased online, over the
phone, mall kiosk or from a vending machine Promotion-new media
will be to 65% traditional media and 35% new media. Examples-toner,
astringent, and masks
Slide 13
A.2.c. Product review Product/service lifecycle 13
MaturityDecline GrowthIntroduction Expanding product awareness and
develop a market for the product Seek to build brand preference and
incease market share Defend market while sharing maximisng profits
Adding new features Reduced costs
A.2.e. Product Review Differentiation 15 The Product
differentiation in the positioning strategy of ProActive that sets
it apart from its competitors is its distinct reputation for
effective and noticeable results, also accentuated by the positive
endorsements given by various celebrities. This is part of the
strategy of positioning ProActive on product attributes, on the
basis of its blemish fighting performance. What to have in the
words of P.diddy "silky smooth, cocca-butter skin?" How? Just ask
Katie Rodan and Kathy Fields. Celebrity endorsement have been a
popular promotional tool for ProActive, as using someone known and
trusted gives consumers the impression they are more trustworthy
and adds weight to their testimonials. Why use celebrities?
Celebrity endorsement have been a popular promotional tool for
ProActive, as using someone known and trusted gives consumers the
impression they are more trustworthy and adds weight to their
testimonials. Along with this today's society has glorified and
celebrities through the media and many people may look up to
celebrities as idols or many be greatly influenced by what they
purchase and in turn purchase similar things to be like them. An
example of this would be using the teen sensation Justin Beiber in
there testimonials using the influence of his targeted audience
which largely consists of teen girls in which also fits ProActivs
demographic. Other forms of promotion Other forms of promotion
undertaken for ProActive include personal selling methods such as
stalls in shopping centers and also through mass media advertising
mainly through television. ProActive was founded by two Stanford
university students while they were studying dermatology. The two
dermatologists came about the idea while they were discussing how
they want to improve skin tone, blemishes blackheads as well as
whiteheads. Thus a 3 step system was designed to prevent acne and
future breakouts on a daily basis.
Slide 16
A.2.f. Product Review Branding strategy 16 ProActiv is a
professional level acne system, known for their high quality
product and social responsibility. ProActiv is trusted by many
professionals and everyday people. The brand has many faithful
customers both old and young. They are most popular with females
between the ages 15 to 35. ProActiv offers a high quality product
sold at a value-based price. Our variety-based positioning at
Neutrogena allows the company to service a broad range of consumers
and servicing consumer needs in the advancement of human skin
health and total well being. ProActiv offers some of the worlds
most loved beauty and skin care lines, and manufactures and market
products in over 68 countries reaching concern parents with small
children or acne prone teenagers, men and women struggling with
adult acne
Slide 17
A.3.a. Competitive Review Competitive Analysis 17
CompetitorBrandFeatures 3-Step SystemCliniqueClinique has the
advantage of having a personal consultant that can assist consumers
on- site in most department stores where they personally sell their
product line. Clear DifferenceEstee LauderOffer the options of
products that only require one or two steps (3-in-1 cleansers).
Complete Acne Therapy System NeutrogenaKnown for their high quality
product and social responsibility.
Slide 18
A.3.b. Competitive Review Market share 18
Slide 19
A.3.c. Competitive Review Competitive positions and roles 19 1.
ProActiv currently holds the top spot in skincare. Their skincare
brand, ProActiv+, makes up 22% of the North American market share.
Its affordable pricing and wide availability gives the brand
strength in the Canadian cosmetic industry. 2. Estee Lauder is
another competitor in skincare, however it does falls into the
luxury segment. Neutrogena is the nicher, that can be found away
from department stores, in stores like Walmart. Neutrogena products
are sold at competitive prices while ProActiv is sold at
value-based prices. Market shares for the top international
skincare companies are as follows: ProActiv, Estee Lauder, and
Neutorgena
Slide 20
A.3.d. Competitive review Strategic Sweet Spot 20 ProActiv is
for any teen or adult who struggles with acne- prone skin, mild to
moderate acne, adult acne and/or hormonal breakouts. ProActiv works
for men and women of all ages, and will appeal especially to women
in their twenties, thirties, forties and fifties who desire spa-
quality skincare products. ProActiv takes advantage of new science
to deliver more effectively on its original promise to clear acne,
help prevent future breakouts and give you great skincare.
Slide 21
A.3.e. Competitive review Positioning 21 ProActiv is our most
advanced solution to deliver clear, radiant, flawless-looking skin.
ProActiv+ is the result of 10 years of research, extensive studies
and input from thousands of ProActiv customers. Working with a team
of expert chemists, Doctors Rodan and Fields have delivered a
completely reengineered 3-Step System that fights acne faster and
more effectively, and provides skincare benefits above and beyond
what anyone would expect from an acne treatment. ProActiv is the
only acne treatment with Smart Target Technology. Smart Target
Technology is an acne-targeting innovation that delivers 50 percent
more of our prescription-grade acne-fighting medicine with
laser-like precision directly to the pore, where the acne starts,
and away from the skin's surface, for faster, more effective acne
treatment with less irritation to the skin. In addition, ProActiv
has powerful acne-fighting medicine in every step for a
comprehensive, dual- therapy solution that combines the most
effective FDA acne-fighting ingredients to unplug pores and help
prevent new breakouts from forming. Finally, because acne is a lot
more than just blemishes and breakouts, ProActiv has been
formulated with advanced skincare ingredients to deliver solutions
to many of the biggest problems of acne-prone skin, including
uneven tone, unwanted pigmentation, excess oil and shine, redness
and blotchiness, large-looking pores and a dull complexion.
Slide 22
A.4.a. Distribution review Current supply chain members and
roles 22 Producer Producer Producer Wholesaler Retailer Retailer
Consumer Consumer Consumer Using direct channels ProActiv sells
directly to the consumer Using indirect channels ProActiv uses
different to bring its product to the final buyers.
Slide 23
A.4.b. Distribution Review Value delivery network analysis 23
The multichannel distributions has been a success with more than 5
million active customers and annual sales of about 800 million
dollars world wide. The companys multichannel distribution consists
of infomercials, home shopping television, specialty beauty
retailer, company-owned boutiques, salon spas, and online
shopping.
Slide 24
A.4.c. Distribution Review Current type of distribution
strategy 24 ProActiv uses the intermediaries of direct marketing
and selling to distribute their products. ProActiv is exclusively
distributed because you cannot purchase it from stores. It can only
be purchased online, over the phone, mall kiosk or from a vending
machine. ProActiv products are not on the same shelves in the
stores which prevents consumers from comparing them side-by-side,
which gives it distinctiveness from its competitors. The vending
machines are strategically located in the larger (mostly
international) airports and malls. The location within the airport
is after the security check points. This can be an advantage
because travelers are not checked for the amount of fluid on their
person but a disadvantage is that a person trying to purchase
ProActiv and doesnt have a flight will not be able to access the
products. However, it is unlikely for someone to pay for parking at
an airport just to purchase ProActiv. For more people to have
access to ProActiv products, the vending machines can be
advantageously placed in some of the less prominent shopping malls
and smaller airports (Lucas, 2009). The focal point to make changes
in the distribution marketing strategy should increase the male
market base and share and are dependent on the locations that
ProActiv is marketed and the images that it portrays as the face of
the company. The ProActiv advertisement images will incorporate
more male models and clients to give the product a more masculine
appeal. The website currently only displays pictures of females.
The advertisements will be seen in more male-dominated periodicals.
The free newspapers, Wall Street Journal, business journals, mens
fitness, sports, and car magazines, as well as billboards on and
around public transportation increases the chances of more men
seeing the product. ProActiv should switch advertising commercials
from the time slots of show like Glee to NBA basketball games and
NFL football games. Images of professional male athletes will keep
the mens attention. ProActiv experimented with selling its products
to a general-merchandise retailer through the Costco warehouse
club. The distribution channel is different. The way it works it
that there is a sample size kit in the display in Costco, and then
you are given a code to redeem the rest of the 120 day supply kit
online. There are no extra charges once going through the online
site because the- shipping was included with the original purchase
amount.
Slide 25
Title Slide no need for additional content 25 Part B SWOT
Analysis
Slide 26
B.1. SWOT microenvironments 26 This SWOT analysis provides an
assessment of ProActivs strengths, weaknesses, opportunities, and
threats to ProActiv expanding its market share to males. The
strengths and weaknesses are internal to the company and the
opportunities and threats are external to the company. Strengths
The strengths are that ProActiv is a famous brand name that is
recognized worldwide for the effectiveness of its acne treatment
and skin care products. It is manufactured by the reputable strong
product line of Guthy-Renker. Guthy- Renker is internationally
recognized and manufactures products in 68 countries. ProActiv has
a strong financial position because its sales were $830 million
last year. ProActiv has selective market coverage for distribution
of their product and has a variety of promotion and advertising
methods. They sell their products through vending machines and
kiosks in airports and malls in additional to the internet. They
advertise through direct mail, posters, signs, infomercials (30
minute), commercials (30 seconds,1 minute, and 2 minutes), and ads
in mainly teenager and womens magazines (future plans to expand to
top three mens magazines). ProActiv pays millions of dollars in
celebrity advertisements which gains the trust of consumers when
they assume that the celebrity is constantly using the product to
produce the flawless skin that they see them with while they are on
television or in movies. ProActiv also offers a 24/7 support line
available by phone, online or live chat for purchasing and advice
in using their product. Weaknesses The weaknesses are that ProActiv
is not found in stores. Their product lines are limited in the
number/ variety of products that they offer. If a consumer does not
use it properly and follow the steps accurately, it hinders the
effectiveness of the product. Most men do not want to take the time
to do three different steps when they are washing their faces.
ProActiv has some reviews that their customer service is not good
when consumers are trying to cancel the automatic delivery of its
product. It also has a tarnished reputation for the process it
takes to get its money back guarantee refunded to the customer.
Most of ProActivs ads and promotions are geared towards women and
do not leverage the other market available. There are no men
pictured on their website and they currently only advertise in
young ladies, teen, and womens magazines. ProActiv is also priced
higher than the majority of its competitors and are rarely ever
discounted
Slide 27
B.2. SWOT macroenvironments 27 Opportunities The opportunities
that ProActiv has are that it can increase its global positioning.
Its manufacturer Guthy-Renker operates in 68 countries which gives
ProActiv the capability to be offered in the same amount with its
manufacturer that already has established its brand within those
countries. ProActiv can expand its customer base by focusing on men
and teenagers more. ProActiv doesnt currently advertise in any mens
magazines. Advertising in the top three mens magazines along with
incorporating more men models on their website and infomercials,
will likely increase their market share. It currently advertises in
teen magazines that are mostly young adult teenagers. It can draw
in 12-17 year old children who want clearer skin to improve their
image and make them more appealing to the opposite sex. ProActiv
can bundle their products to make it a more attractive package.
ProActivs manufacturer, Guthy-Renker offers sunblock lotion and
multivitamins that assists in controlling the variables that cause
acne. ProActiv should start selling the 3-step solution in packages
with the sunblock lotion and/ or multivitamins to enhance their
original product solution. Since ProActiv has integrated vending
machines into its distribution channels, placing the vending
machines in premium hotels and smaller airports may improve sales
because it makes the product more accessible to consumers that were
rushed in the airport and dont have the time to go to the local
mall. Threats Intense competition is one of the many threats that
ProActiv faces. There are several skin care products that are made
for men on the market under popular companys licensing like:
Johnson & Johnson- Neutrogena Mens Skin and Clean and Clear
lines, Natures Cure, Menscience, Clinique, Anthony Logistics for
Men, Nivea for Men, aMENity, and SkinCeuticals. Most of the
competition is moderately priced in comparison to ProActiv. With
the economy still recovering, consumers may be more tempted to
purchase one of the many cheaper products instead of ProActiv. Some
of the competitors have fewer steps to achieve a clear complexion.
ProActiv has a three step process while most others only have a one
or two step process. It makes it easier and quicker to clean your
face. Although ProActiv has a customer support hotline, other
competitors offer a true personalized experience like Clinique. The
consumer can do into a department store and have the Clinique
representative evaluate their skin and assist them in selecting
which products would suit them best.
Slide 28
This concludes Part 1 28 Be sure to go back and develop your
Table of Contents Be sure to edit your work, follow the tips for
effective Power Point Presentations Be sure to include your
endnotes and bibliography Check your work against the grading
rubric Upload your Part 1 to your assignment folder by the due date
listed in the course schedule. Remember your analysis so that you
can make recommendations in part 2 grounded in the current
situation and how it can be improved.
Slide 29
Sources 29 Sources Corporation, G.-R. (2014). ProActiv.
Retrieved from ProActiv Solutions: http://www.ProActiv.com/
Enderson, D. (2013). How Safe is ProActiv? Retrieved from eHow
health: http://www.ehow.com/facts_5859825_safe-ProActiv_.html
Espinoza, G. (2010, July 15). People Magazine. Saving Face, pp.
1-2. Retrieved June 25, 2014, from
http://www.people.com/people/article/0,,20137526,00.html Glen.
(2010, July 18). ProActiv Dishonest Marketing Strategy. Retrieved
June 12, 2014, from Acne Research:
http://www.acneresearch.org/ProActiv-dishonest-marketing-strategy/
Goodlett, E. (2013). Information on ProActiv. Retrieved June 12,
2014, from eHow style:
http://www.ehow.com/about_6623105_information-ProActiv.html