Successful Marketing Strategy Accomplished a Legend -Proactiv

1563 Words Nov 15th, 2010 7 Pages
MKTG 4999
Sufeng Tian
9/13/2010
Successful marketing strategy accomplished a legend
Proactiv
About twenty years ago in 1989, two dermatologists, Dr. Katie Rodan and Dr. Kathy Fields came up this idea with a special cream made mainly from benzyl peroxide to meet the needs of teens, women and men about their special beauty concern of acne. They launched the product and started to merchant their products with Guthy-Renker.LLC, one of the largest and most respected direct marketing companies in the world. By 2010, Proactiv has boasts 5 million customers with total revenue of $850 million a year worldwide and has been recognized with 27 coveted awards and honors from the beauty and health industry. Other companies also had the experiences
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It is highly recognized in the market especially among teenagers. Traditional acne products are low price range and kind of old fashioned in terms of designation and package, which catches lower income and function oriented customers. Since the main ingredients are not a secret, other popular cosmetic brands can also develop similar products. L’Oreal Launched “Acne Response” new Adult Acne Product, treats acne with gentle formula of 1% salicylic acid and 2.55% benzoyl peroxide, retail Price of $24.99 vs. $39.99 for Proactiv, which soon caught big market share and attracted some of the loose proactive customers. New producers claim that it is the ingredient which matters, not the expensive celebrity commercials. With proper marketing strategy, it won’t be hard for them to share cups from Proactiv. Other competition came from Natural skin care products. Some biological cosmetic products with aloe vera, green tea, passion flower, or Gotu kola are claimed to work well to cure acne and skin bacteria. They are natural and green with less side effect and damage to skin. However, not every company can afford the heavy input in advertising. As the first modern acne prevention and treatment product shown in the market, Proactiv will still lead the market and enjoy the competitive advantage for years.
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