In 1995, two dermatologists, Dr. Katie Rodan and Dr. Kathy Fields, developed what they believed was a medical breakthrough in fighting acne. Their mission: to help millions of people rid themselves of acne and acnerelated problems. They named their product Proactiv Solutions. This name was chosen because the product could heal existing blemishes and proactively help prevent new ones from forming.
Today, Proactiv is the number one selling acne product in the United States, even though it’s not available in most stores. It’s sold primarily through infomercials, the company’s Web site, a subscription service called the “Proactiv Solution Clear Skin Club,”
and in select upscale boutiques and kiosks. The way Proactiv reached the point it currently occupies is an interesting story. Early in its life, Proactiv was shaped by three critical marketing decisions, from which the company has not wavered, even to this day. This case recounts these decisions and discusses how the decisions shaped this entrepreneurial venture’s future.

How It Started
Katie Rodan and Kathy Fields met while they were working summer jobs at a cardiovascular research lab in Los Angeles. The lab was developing a drug to treat post–heart attack patients. Both Rodan and Fields enjoyed the exciting pace of the work as well as the camaraderie they shared with the lab’s researchers and doctors. After earning their college degrees, they both went to medical school and became dermatologists.
They stayed in touch and often shared with one another how surprised they were at the number of acne patients they were seeing. At the time, the medical research said that only 3 percent of the adult population had acne, but Rodan and Fields became convinced that the number was higher. They were each seeing acne patients on a daily basis, and they weren’t just seeing teenagers.
They were seeing women in their 20s, 30s, 40s, and even in their 50s who were suffering from acne and acne-related problems.
Rodan and Fields decided to form a partnership to investigate the acne issue further. They started by talking to their patients, asking them a wide range of acne-related questions. What they found was that the vast majority of their patients hated the acne products on the market. The most common complaints were that the products were very drying and they were very irritating. Worst of all, patients told Rodan and Fields, the available products did not work. At this point, the two physicians started thinking there might be an opportunity for them to create a better product.
Rodan and Fields spent the next couple of years thoroughly investigating the acne products on the market. After testing many of the products on their patients, they made what they believed was a shocking discovery. All of the products on the market were designed to spot-treat a pimple—none were designed to stop the pimple from forming in the first place. This just didn’t make sense to the two dermatologists—from both a practical and a medical standpoint. By the time you see a pimple, whatever treatment you administer, it’s too little too late. In their judgment, not taking steps to prevent acne from developing was akin to not brushing your teeth and going to the dentist to fill cavities. Why not brush your teeth and floss and try to prevent the cavities from developing in the first place?
This revelation motivated Rodan and Fields to start working on a product of their own—one that would be more proactive in preventing acne and acne-related problems. They hired a chemist, and the three worked together for another couple of years. Finally, they had a product they were happy with and that seemed to work and to satisfy their patients.

Discussion Questions
1. How has Proactiv gone about establishing its brand?
To what degree do you believe Proactiv is important in its customers’ lives?
2. Discuss the things that Rodan and Fields learned, prior to meeting Guthy-Renker, that persuaded them that infomercials were the best way to sell Proactiv. If Proactiv hadn’t developed infomercials in partnership with Guthy-Renker, do you think Proactiv would be in existence today? Describe why infomercials were a better choice than print or media advertising for Proactiv when the company was first being introduced.
3. Describe Proactiv’s positioning strategy. To what extent did the three critical marketing decisions discussed in the case shape the evolution of Proactiv’s positioning strategy?
4. What is the difference between Proactiv’s core product and its actual product? Describe its actual product and your assessment of whether the actual product provides an attractive mix of characteristics.

Application Questions
1. In your judgment, why doesn’t Proactiv sell through mainline retail stores, like Target and Nordstrom, along with its Web site, subscription service, kiosks, and upscale boutiques? Make your answer as thoughtful and substantive as possible.
2. Use materials included in Chapter 1 to identify the characteristics of successful entrepreneurs you see in Katie Rodan and Kathy Fields. To what extent do you believe these characteristics have contributed to Proactiv’s success?