Proactiv

Proactiv
Industry Consumer Packaged Goods
Founded Palm Desert, California (January 1, 1995)
Founder Katie Rodan, M.D.
Kathy Fields, M.D.
Area served
 Worldwide
Revenue $850 million (2010)
Parent Guthy-Renker
Website

proactiv.com

proactiv.in

Proactiv is a brand of acne treatment and skin-care products distributed by direct marketing company Guthy-Renker. Developed by Drs. Katie Rodan and Kathy Fields in 1995, Proactiv is a three-part acne treatment kit that is sold on a subscription basis. It includes a cleanser, toner and treatment that contain benzoyl peroxide and glycolic acid as their active ingredients. It is also sold in other varieties such as a Gentle Formula, Extra Strength and Proactiv+. Face masks, body washes and other skin-care products are also sold under the Proactiv name. Although a clinical study has found that Proactiv reduces comedones, inflamed lesions, and facial oiliness, an 80-person Consumer Reports study concluded that Proactiv and cheaper drugstore products were equally effective.

Celebrity endorsements play a significant role in Proactiv's marketing strategy. Many music artists, actors and other celebrities became paid spokesmodels for Proactiv, which spends $200 million a year air-time for commercials. In 2012, some of its commercials were banned in the UK after a consumer filed a complaint that the celebrity endorsers were not likely using the product's UK formulation.

Origins

Proactiv was created by two dermatologists, Katie Rodan and Kathy Fields, who met during a summer job at a cardiovascular research lab in Los Angeles[1] in 1984; both attended Stanford University School of Medicine.[2] After graduation they started their own practices, before deciding to work together to create a preventative treatment for acne.[1] In 1989 the two dermatologists hired a chemist[1] and began developing Proactiv out of Rodan's kitchen, using $60,000 in personal funds.[2] They brainstormed business ideas with executives and market researchers who were invited to dinner parties at Rodan's house.[3][4] Once developed, the product was rejected by several distributors, before Guthy-Renker agreed to market it in 1995.[2]

Products

A Proactiv acne treatment kit

Proactiv's primary product is a three-part acne treatment kit that includes a cleanser, toner, and treatment.[5][6][7] The kit's only active ingredient,[8] benzoyl peroxide, is a common compound used for acne treatment that kills acne-causing bacteria, Propionibacterium acnes, dries out whiteheads and has anti-inflammation properties. The active ingredient can also cause skin irritation, sensitivity, or allergic reactions and discolors fabrics.[9] The Proactiv cleanser and treatment each contain a 2.5 percent concentration,[10][11] which can make users more comfortable using it daily when compared to most products that contain a 10 percent concentration.[12][13] There is also an "Extra Strength" version with a 7 percent concentration of benzoyl peroxide[10] and a "Gentle Formula" with a 2 percent concentration of salicylic acid.[14] The toner contains witch hazel, which reduces facial oil, and glycolic acid,[11][15] which is a popular ingredient in chemical peels.[16] The kit is sold on a subscription basis. After the first 30 days, customers are automatically billed for a three-month supply every three months, until the subscription is cancelled.[17]

There is also a Proactiv+ version that does not contain parabens and is intended to also act as a moisturizer.[18] Other products in the Proactiv line have different formulations and active ingredients. A Proactiv moisturizer uses octinoxate (7.5%) and zinc oxide (3%), while a Proactiv-brand anti-dandruff shampoo uses a 1% concentration of zinc pyrithione.[19]

Guthy-Renker markets and distributes Proactiv on behalf of its founders.[20][21] As of 2007, worldwide sales of Proactiv were $850 million annually, 70 percent of which were in the US.[11] The product line is responsible for about half of Guthy-Renker's revenue.[22][23] Proactiv can be purchased outside of retail stores, to avoid the potential embarrassment of publicly shopping for acne treatment products.[9] As of 2010, 60 percent of Proactiv orders were placed online.[24] It is also sold through a toll-free telephone number, in mall outlets,[21] in vending machines[25] and in certain boutiques.[1]

A physician writing in Salon noted that Proactiv uses the same active ingredient as cheaper generic store drugs, but that its three-step system made it easier for teens to be diligent.[26] A test by Consumer Reports with 80 volunteers found that the Proactiv system and less expensive drugstore products were equally effective.[17][27] According to a 2011 review in Consumer Reports, the three-part Proactiv system costs about $20 per month, while individual drugstore products cost about $5.[27] Consumer reviews of Proactiv in online forums are mixed.[28]

Marketing

Each year about $12 to $15 million is spent on celebrity endorsements of Proactiv[24] and $200 million on commercial air-time.[29] Proactiv favors using an "instantly recognizeable celebrity"[24] and says music artists have been the most effective celebrity spokesmodels.[30]

Its first infomercials used celebrity endorser Judith Light.[31] The New York Times said its early infomercials were "fast-talking" and "hard-selling." An announcer repeatedly said "Call Now" and offered faster shipping if the order was placed within three minutes.[32] In 2005, the infocommercials showed before and after images of Proactiv users, including a mix of consumers and celebrities. They showed "scientific-looking diagrams" and had an introduction to the two dermatologists that founded Proactiv. The commercials promoted pimples as a significant social concern.[28] Lindsay Lohan became a celebrity endorser in 2006.[33]

A Proactiv vending machine at John F. Kennedy International Airport

Proactiv began airing two-minute advertisements[21] and in 2007 installed 100 automated vending machine kiosks for Proactiv in Atlanta, Las Vegas, and Laguna Hills.[34] As 30-minute infomercials became less popular in 2008, sales of Proactiv stalled.[29] Additionally, new entrants to the market created more competition from 2008 to 2010.[35]

In 2010, Proactiv signed celebrity endorsement contracts with music artists Katy Perry, actor Jenna Fischer,[35] Justin Bieber[36] and tennis player Caroline Wozniacki.[30][37] The product's packaging was modified[35] and it started airing commercials on network television. Its TV ads aired during shows like American Idol, Glee and The View using the theme "Be Proactiv." They included close-up before and after shots of celebrities' faces, with slogans like “I’m no pushover. I’m Proactiv” spoken by Avril Lavigne, who was signed as a celebrity endorser that year.[32][35]

Guthy-Renker expanded into Web, social and mobile marketing. As of 2010, Proactiv had 1.5 million views on its YouTube channel, 41,000 Facebook fans, and 8,700 Twitter followers.[29] In 2011 Proactiv was one of nine companies that pulled advertising from the MTV show Skins,[38] after the Parents Television Council called for an investigation into whether the show violated child pornography laws.[39] In December 2011 Proactiv signed a celebrity endorsement agreement with Naya Rivera from the TV show Glee[40] and in August 2012 it signed Kaley Cuoco from the show The Big Bang Theory.[41]

In June 2012, the Advertising Standards Authority (ASA) banned some of Proactiv's celebrity-endorsed advertising in the UK, after a UK woman filed a complaint that the advertisements were misleading.[42] She said the celebrities were likely to have used Proactiv's American brand, which contains an active ingredient not present in the UK version.[43] The ASA noted the advertisements were targeted at a UK audience and that the UK Proactiv products had a different active ingredient (salicylic acid) than the US version (benzoyl peroxide).[43] The ASA said that signed statements by the celebrities said that they used the UK version of Proactiv for a few weeks, one-to-three years prior, but the advertisements gave the appearance that they continued to benefit from the UK-formulation of the product.[44][45]

References

  1. ↑ 1.0 1.1 1.2 1.3 Barringer, Bruce R.; Ireland, R. Duane. (2010). Entrepreneurship : successfully launching new venture. Upper Saddle River, N.J.: Prentice Hall. ISBN 0-13-608353-6.
  2. ↑ 2.0 2.1 2.2 Espinoza, Galina (July 15, 2002). "Saving Face". People. Retrieved January 4, 2012.
  3. ↑ Bruce R. Barringer (December 23, 2008). The Truth About Starting a Business. FT Press. p. 26. ISBN 978-0-13-714450-1.
  4. ↑ Bruce R. Barringer; R. Duane Ireland (23 May 2008). What's Stopping You?: Shatter the 9 Most Common Myths Keeping You from Starting Your Own Business. FT Press. pp. 138–. ISBN 978-0-13-244457-6. Retrieved 4 January 2013.
  5. ↑ Kabak, Joanne (January 30, 2003). "Acne Treatment Helps Some, Not All". Newsday. Retrieved October 14, 2013.
  6. ↑ Josh Kaufman (30 December 2010). The Personal MBA: Master the Art of Business. Penguin. pp. 196–. ISBN 978-1-101-44608-9. Retrieved 4 January 2013.
  7. ↑ Hinson, Tamara (February 16, 2012). "Proactiv skincare has arrived in the UK – but is it worth your money?". The Beauty Files (Yahoo!). Retrieved January 4, 2012.
  8. ↑ Burkhart, Craig G.; Burkhart, Craig N. (2007). "Treatment of acne vulgaris without antibiotics: tertiary amine?benzoyl peroxide combination vs. benzoyl peroxide alone (Proactiv Solution?)". International Journal of Dermatology 46 (1): 89–93. doi:10.1111/j.1365-4632.2007.03081.x. ISSN 0011-9059.
  9. ↑ 9.0 9.1 Jessica Wu, MD (1 February 2011). Feed Your Face: Younger, Smoother Skin and a Beautiful Body in 28 Delicious Days. Macmillan. pp. 70–. ISBN 978-0-312-63077-5. Retrieved 4 January 2013.
  10. ↑ 10.0 10.1 FIREMAN, S., TOLEDANO, O., NEIMANN, K., LOBODA, N. and DAYAN, N. (2011), A look at emerging delivery systems for topical drug products. Dermatologic Therapy, 24: 477–488. doi: 10.1111/j.1529-8019.2012.01464.x
  11. ↑ 11.0 11.1 11.2 Singer, Natasha (October 18, 2007). "Why Should Kids Have All the Acne?". The New York Times. Retrieved January 4, 2012.
  12. ↑ Athavaley, Anjali (June 1, 2011). "Fighting Pimples and Wrinkles at the Same Time". Retrieved February 8, 2013.
  13. ↑ Lydia Preston (1 November 2007). Breaking Out: A Woman's Guide to Coping with Acne at Any Age. Touchstone. pp. 209–. ISBN 978-1-4165-8308-0.
  14. ↑ Kraft, John (April 19, 2011), Management of acne, Canadian Medical Association Journal
  15. ↑ Singer, Natasha (October 19, 2007). "The lucrative business of pimples; Proactiv ad campaign transforms way consumers think about acne". LIFE. pp. D2.
  16. ↑ Ditre, C. M. (2000), Glycolic acid peels. Dermatologic Therapy, 13: 165–172. doi: 10.1046/j.1529-8019.2000.00024.x
  17. ↑ 17.0 17.1 Romero, Ric (November 7, 2011). "Which acne treatment works best, costs less?". ABC7. Retrieved February 8, 2013.
  18. ↑ Mychaskiw, Marianne. "Proactiv Launches Proactiv+ Line, More Hydrating Formula : InStyle.com What's Right Now". InStyle. Retrieved 2 August 2013.
  19. ↑ List of Proactiv products and their ingredients, National Institutes of Health
  20. ↑ Casserly, Meghan (November 30, 2010). "Proactiv's Active Ingredient: Celebrity". Forbes. Retrieved January 4, 2012.
  21. ↑ 21.0 21.1 21.2 Steinberg, BrianView (April 18, 2007), "Marketing Success Of Proactiv Leads To New Directions", The Wall Street Journal: B.3C
  22. ↑ Arndorfer, J. B. (2005). Guthy-Renker gives the infomercial street cred. Advertising Age, 76(18), 6.
  23. ↑ "As Seen on TV". Success Magazine. December 9, 2012. Retrieved January 23, 2013.
  24. ↑ 24.0 24.1 24.2 Netherby, Jennifer (August 20, 2010). "Justin Bieber Joins Proactiv's Zit-Geist". Billboard. Retrieved January 4, 2012.
  25. ↑ Rosenbloom, Stephanie (May 25, 2010). "The New Touch-Face of Vending Machines". The New York Times. Retrieved January 4, 2012.
  26. ↑ Parikh, Rahul (February 28, 2011). "Proactiv’s celebrity shell game". Salon. Retrieved January 4, 2012.
  27. ↑ 27.0 27.1 Review of Acne Treatments, Consumer Reports, November 2011, retrieved February 8, 2013
  28. ↑ 28.0 28.1 Walker, Rob (June 12, 2005). "The Celebrity Solution". The New York Times. Retrieved January 4, 2012.
  29. ↑ 29.0 29.1 29.2 Rose, Lacey (November 3, 2010). "Shill Shocked". Forbes. Retrieved January 24, 2013.
  30. ↑ 30.0 30.1 Netherby, Jennifer (August 28, 2010). "From Katy Perry to Justin Bieber, Proactiv Breaks out Musicians as Spokesmodels". Billboard.
  31. ↑ Buckland, Jason (June 19, 2011). "Best-selling infomercial products: Proactiv". MSN. Retrieved January 4, 2012.
  32. ↑ 32.0 32.1 Elliott, Stuart (May 4, 2010). "Trying to Move Up From a Fast-Talking, Buy-Now Approach". The New York Times. Retrieved January 4, 2012.
  33. ↑ "Lindsay Lohan on Clear Skin and Real Breasts". The Hollywood Gossip. July 11, 2006. Retrieved January 5, 2012.
  34. ↑ Wasserman, Todd (May 22, 2006). "Rise of the Machines: Proactiv Tests Robots". Brandweek. pp. Vol. 47, Issue 21.
  35. ↑ 35.0 35.1 35.2 35.3 Brown, Rachel (January 13, 2010). "Perry Fischer, Lavigne Tapped For Proactiv". Vol. 199, Issue 8 (Women's Wear Daily).
  36. ↑ Everett, Cristina (August 10, 2010). "Justin Bieber signs on as new acne-free face of Proactiv Solution". Daily News. Retrieved January 4, 2012.
  37. ↑ Gold, Grace (November 23, 2010). "Caroline Wozniacki Is New Face of Proactiv". The Stylelist. Retrieved January 4, 2012.
  38. ↑ "Proactiv Latest Advertiser to Pull Out of MTV's Skins (EXCLUSIVE)". The Hollywood Reporter. February 1, 2011. Retrieved January 4, 2012.
  39. ↑ Grossberg, Josh (February 4, 2011). "What Controversy? MTV's Skins Still Getting Clearasil Treatment". Retrieved February 15, 2013.
  40. ↑ Shira, Dahvi (December 21, 2011). "Glee Star Naya Rivera Is New Face of Proactiv". People Magazine. Retrieved January 5, 2012.
  41. ↑ Finlayson, Ariana (August 8, 2012). "Exclusive: Kaley Cuoco Is the New Face of Proactiv". Retrieved January 5, 2012.
  42. ↑ Michaels, Wendy (July 18, 2012). "Katy Perry and Justin Bieber Proactiv Ads Banned in UK". LimeLife. Retrieved February 8, 2013.
  43. ↑ 43.0 43.1 Lacey, Martha (July 17, 2012). "Spot of bother: Ads for 'miracle' clear skin cream starring Katy Perry and Justin Bieber banned in UK for being misleading". Daily Mail. Retrieved June 26, 2013.
  44. ↑ Sweney, Mark (July 18, 2012), "Katy Perry and Justin Bieber zit ad campaign banned", The Guardian, retrieved January 4, 2012
  45. ↑ (2012, July 18). Acne treatment adverts banned. Daily Mail. p. 30.