Proactiv Solution

9 Pages   |   1,439 Words
PROACTIV
 
Amarnath
 
Contents
Introduction. 2
Proactive competitors. 2
Proactive target market. 4
Teenagers and Young people Target Market (12-24 years). 4
Adulthood (25 years and above). 5
Evaluation of the two markets. 5
Bibliography. 8
 

Introduction

Proactiv Solution has been conceived by Dr. Kathy Fields and Dr. Katie Rodan.  It is made to keep in consideration with different types of skin for different consumers including those that have facial hair or very sensitive skin. The product was born and developed out of the personal experience of both, Dr. Rodan and Dr. Fields. Both themselves suffered form acne issues, which helped them drive careers in dermatology.  Both wanted to help patients who were going through the same problems .Proactive entered the market for the first time in 1995 (My Acne Treatment Reveiw, 2011).
Today, Proactiv is sold under the Guthy-Renker company via the internet and through phone orders. All Proactiv products are regulated under the Food and Drug Administration’s guidelines. Better Business Bureau has given Proactiv a grade of B with the reason for the grade given as “BBB do not have sufficient background information on this business.” Even with this grade of Proactiv, the BBB website lists that no complaints have been filed against Proactive Company during the last 36 months (Acnetorium, 2011).

Instead of curing acne “pimple by pimple,” Proactiv acne treatment is needed to use consistently applied over a long period of time. Proactiv does not only aim to cure acne. It aims to maintain clear skin for the consumers. Representatives of the company say that acne may return if you stop using Proactiv (Proactiv, 2011).
 

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Proactive competitors

Lots of acne products are flooded in the market. Proactiv is not the only product satisfying the consumer needs. Competitors include Acne Free, Neutrogena Acne, Acnomel Acne Cream, Acne Zeno, Clear Skin Regimen, Exposed skin care and so on. The table below shows top ten rated acne products.
 
Top 10 Rated Acne Products
  Rank Product Name User Rating  
1 Exposed  
2 Clear Pores  
3 Dermology  
4 Derma Cleanse  
5 Murad  
6 Acnezine  
7 Pronexin  
8 AcneFree  
9 Oxycerin  
10 Proactiv  
             
(Acne Treatment Reviews, 2011).
Proactiv Solutions, however, is focusing hard to increase its market and satisfy the needs of consumers. This multi-step program is advertised by today’s hottest celebrities, including Jessica Simpson, Alicia Keys, Vanessa Williams, Jennifer Berry and Sean “Diddy’ Combs. This is one way to of the effectiveness of the Proactiv Solutions system to reach to its customers (Proactiv, 2011).
The system itself consists of a cleaner, toner, and lotion that works to clean, protects, and restores the quality of your skin. Depending on your skin’s needs, Proactive Solutions may be the perfect treatment option.

Proactive target market

Organizations selling in the market must realize that they can not sell their products and appeal to all consumers in the market; especially in the same way. Markets have different buyers who differ in various ways. They may differ with respect to their buying attitudes and buying practices, their wants, resources, and locations. Target marketing is a way that helps sellers to find their marketing opportunities efficiently. Sellers can produce the right product for each of the target market and adjust prices,  the distribution channels and advertising to out reach the target market efficiently (Kotler, Brown, & Armstrong, 2001).
Proactive operates and aims to target an international chain of audience. Thus, it also needs to define its target markets, as it cannot serve everyone. It can chose a target group by size of customer, type of customer, need for service. Within the target group, it can identify the more profitable customers, and also can discourage less profitable customers by requiring larger orders or add surcharge to smaller ones and nonmembers.
Table below links age group and percentage of people in that age who have acne:
Age Percentage
12 - 24 years 73 - 85%
25 - 34 years of age 6 - 8%
over 35 years of age 2 - 4%
 
(Dermaxime , 2011)

Teenagers and Young people Target Market (12-24 years)

Skin problem, most commonly known as acne is found mainly in teenagers and young people in their 20´s. they are a soft target of acne mainly because they experience major hormonal changes in their bodies at this age.  Eight out of ten people in this age bracket face acne problems. Acne is considered to be a normal condition of puberty in this age group (Sheppard, 2011). Women are generally affected at a younger age, with peak of acne coming for most of them between the ages of 17 and 18, while for men, they get their peak at 19 and 20 (Ray, 2011). Acne often leads to serious depression amongst teenagers. Even among kids, mental distress is strongly associated with the acne on their face, irrespective of their lifestyle and diet (Cloud, 2009).

Adulthood (25 years and above)

 It is a misconception that acne occurs only in teenage or is solely the condition of adolescence. “Adult Acne” applies to anyone who has acne over 25 years of age. There are many reasons for acne at this age. Stress, poor hygiene, imbalance in hormones and drug reaction are a few of them (Live Strong, 2011).
Acne affects 25% of all adult males and around and 50% of adult women at some point of time in their adult lives. People develop unpleasant acne in their late 20s, 30s, 40sand beyond that (Kern, 2011). There appears to be an increasing trend in post-adolescent acne. Recent epidemiological studies show that the disease is lasting longer and is requiring treatment well into the mid forties (Knaggs HE, 2004).

Evaluation of the two markets

Proactive product is suitable for men, women, teens and adults of all skin types. However, this product is more effective for teenagers and young people who experience breakouts. The market for the teens and young between the age brackets of 12-24 years is a wide one. The biggest advantage it will give to Proactiv is that it will have a great hence to increase its costumer base, particularly among youngsters. The market for adults in narrow as compared to the youngsters as a greater proportion of youngsters faces acne than adults. There is more profitability in selling between the age group of 12- 24 years, as they face the problem more than people in any other age.

Proactive products, itself, are at an advantage due to the ingredients they use. For Teens and young people products with the active ingredient salicylic acid are valuable which helps to clear out the pores. It also helps prevent the formation of new pore clogs. Moreover, benzoyl peroxide found in proactive products, which can effectively treat mild to moderate acne. Salicylic acid and benzoyl peroxide are the best ingredients that clear the skin and cures acne for teenagers and young people. So, in this sense, Proactiv products are best acne products.
However, the biggest disadvantage that Proactiv faces is the large scale of competition as mentioned above. Moreover, since it sells acne products, the price elasticity of demand for it is elastic. Little change in the price of the product can have a greater percentage change effect on the quantity of Proactiv products.
 (Biz Development, 2008)
D3 will be the shape of the demand curve for Proactiv products. If the price of the product increases, the consumers will be less ready to buy the product.
Cross elasticity of demand is also positive, that means an increase in the price of Proactiv goods will increase the demand of goods for its competitors. This reflects the degree of competition in the industry in which it operates (LaFrance, 1986).
 

Bibliography

Biz Development. (2008). Retrieved from Price Elasticity: http://www.biz-development.com/Finance/7.4.PriceElasticity.htm
Acne Treatment Reviews. (2011). Retrieved from http://www.acnetreatment-reviews.com/
Acnetorium. (2011). Retrieved from Proactiv Solution – Celebrity Endorsed, But What Are The Facts?: http://www.acnetorium.com/proactiv/
Dermaxime . (2011). Retrieved from Age groups affected by acne and pimples and acne information: http://www.dermaxime.com/acne-age.htm
Live Strong. (2011). Retrieved from Causes of Acne in Middle Age Men: http://www.livestrong.com/article/118793-causes-acne-middle-age-men/
My Acne Treatment Reveiw. (2011). Retrieved from Proactive Reviews Agree: http://www.myacnetreatmentreview.com/proactiv-solution/
Proactiv. (2011). Retrieved from http://www.proactiv.com/
Cloud, J. (2009). Time Health. Retrieved from Teen Acne and Depression: Can Mood Worsen Skin?: http://www.time.com/time/health/article/0,8599,1924464,00.html
Kern, D. W. (2011). Ace.org. Retrieved from Adult acne: http://www.acne.org/adult-acne.html
Knaggs HE, W. E. (2004). Post-adolescent acne. International Journal of Cosmetic Science.
Kotler, Brown, & Armstrong. (2001). Marketing. Sydney: Pearson Education Australia.
LaFrance, J. T. (1986). The Structure of Constant Elasticity Demand Models. American Journal of Agricultural Economics.
Ray, S. (2011). Atlantic Drugs. Retrieved from Teens with acne may face psychological problems: http://www.atlanticdrugs.com/news/teens-acne-problems-396.html
Sheppard, J. (2011). Healthy Child. Retrieved from Teen Acne Natural, Holistic Treatment: http://www.healthychild.com/first-aid/teen-acne-natural-holistic-treatment/

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