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11.2 - Case Study Example

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It was important for Rodan and Kathy to take these decisions because; a product’s early life cycle is what determines its success in the market. Dr. Rodan’s and Dr. Kathy’s…
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CASE 11.2
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CASE 11.2 Proactiv: How three critical marketing decisions shaped a new venture’s future? Proactiv shaped its brand by undertaking three critical marketing decisions in its early life. It was important for Rodan and Kathy to take these decisions because; a product’s early life cycle is what determines its success in the market. Dr. Rodan’s and Dr. Kathy’s experience with acne patients showed that there were more people in the market with dire need for an acne solution than research had stipulated. Acne being a sensitive condition most people would rather have a product that prevents it rather than cure which was the case in the market before proactive. It is therefore evident that any acne patient who comes across proactiv and gets to see the results is more than thankful for the product.
Using infomercials was the best decision for the marketing of proactiv for various reasons as Dr. Rodan and Dr. Kathy came to understand. First, Acne was an embarrassing issue therefore selling the product openly would not produce positive results, as patient turnout would be very low. Second, people need to be educated on how to treat their acne something that could not just work in a 30-60 second advert. Thirdly, infomercial audience was a good target as it consisted of women between their 20s to their 40s who would do anything to get rid of the acne problem therefore providing a good market segment. Through infomercials, the product has the opportunity to air testimonials from people who have experienced positive results.
It is clear that Rodan and Kathy were ready to throw in the towel after unsuccessfully seeking for investment capital with no success. The deal with Guthy-Renker was their key to success and if it had not happened then proactive would have had very low chances of existing in the market today. Infomercials were a better choice for Proactiv than print and media advertising because it was necessary to educate people on the product rather than just advertise (Agree and Martin). Infomercials offered more time to make this possible as compared to advertising through media and print where not many people would pay attention and most probably would assume it not to work as the ones already in the market.
Proactiv’s positioning strategy has made it to be a success in the market as these strategies were able to distinguish it from the other products that were already in the market. Categorizing their product under skin care product rather than acne products enabled them to tap into a more attractive and larger market share. Coming up with the name Proactiv also played a major role for the product as customers were not just looking for an attractive name in the market but rather something, that would address their problem (Nickika). “Proactiv” coined from “proactive” an opposite of “reactive” was the solution and it generated more positive reactions from the market. The use of infomercials was one of the best decisions for proactiv. It created recognition and understanding in the market through educating potential clients and testimonies, which sparked a greater market to seek the product leading to its success.
Proactiv’s core product is seeks to market itself in the skin care market in which there is a lot of demand. The actual product, which is acne treatment, tends to have a lower demand in the market because of it being a rather sensitive subject. The actual product is what indirectly leads to the high market share. More people are buying it because of its ability to cure acne rather than as a skin care product. Therefore, the actual products characteristics have been able to make its spread in the market niche that was really looking for a solution to their problems.
References
Agree, Tom and Brett A.S. Martin. ""Planned or Impulse Purchases? How to Create Effective Infomercials"." Journal of Advertising Research (2001): 35-42. Print.
Nickika. Real stories: Finally something that really works! 15 December 2012. web. 3 March 2013. Read More
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