SWOT microenvironments
SWOT microenvironments
This SWOT analysis provides an assessment of ProActiv’s strengths, weaknesses, opportunities, and threats to ProActiv expanding its market share to males. The strengths and weaknesses are internal to the company and the opportunities and threats are external to the company.
Strengths
The strengths are that ProActiv is a famous brand name that is recognized worldwide for the effectiveness of its acne treatment and skin care products. It is manufactured by the reputable strong product line of Guthy-Renker. Guthy-Renker is internationally recognized and manufactures products in 68 countries. ProActiv has a strong financial position because its sales were $830 million last year. ProActiv has selective market coverage for distribution of their product and has a variety of promotion and advertising methods. They sell their products through vending machines and kiosks in airports and malls in additional to the internet. They advertise through direct mail, posters, signs, infomercials (30 minute), commercials (30 seconds,1 minute, and 2 minutes), and ads in mainly teenager and women’s magazines (future plans to expand to top three men’s magazines). ProActiv pays millions of dollars in celebrity advertisements which gains the trust of consumers when they assume that the celebrity is constantly using the product to produce the flawless skin that they see them with while they are on television or in movies. ProActiv also offers a 24/7 support line available by phone, online or live chat for purchasing and advice in using their product.
Weaknesses
The weaknesses are that ProActiv is not found in stores. Their product lines are limited in the number/ variety of products that they offer. If a consumer does not use it properly and follow the steps accurately, it hinders the effectiveness of the product. Most men do not want to take the time to do three different steps when they are washing their faces. ProActiv has some reviews that their customer service is not good when consumers are trying to cancel the automatic delivery of its product. It also has a tarnished reputation for the process it takes to get its money back guarantee refunded to the customer. Most of ProActiv’s ads and promotions are geared towards women and do not leverage the other market available. There are no men pictured on their website and they currently only advertise in young ladies, teen, and women’s magazines. ProActiv is also priced higher than the majority of its competitors and are rarely ever discounted
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B.2. SWOT macroenvironments
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Opportunities
The opportunities that ProActiv has are that it can increase its global positioning. Its manufacturer Guthy-Renker operates in 68 countries which gives ProActiv the capability to be offered in the same amount with its manufacturer that already has established its brand within those countries. ProActiv can expand its customer base by focusing on men and teenagers more. ProActiv doesn’t currently advertise in any men’s magazines. Advertising in the top three men’s magazines along with incorporating more men models on their website and infomercials, will likely increase their market share. It currently advertises in teen magazines that are mostly young adult teenagers. It can draw in 12-17 year old children who want clearer skin to improve their image and make them more appealing to the opposite sex. ProActiv can bundle their products to make it a more attractive package. ProActiv’s manufacturer, Guthy-Renker offers sunblock lotion and multivitamins that assists in controlling the variables that cause acne. ProActiv should start selling the 3-step solution in packages with the sunblock lotion and/ or multivitamins to enhance their original product solution. Since ProActiv has integrated vending machines into its distribution channels, placing the vending machines in premium hotels and smaller airports may improve sales because it makes the product more accessible to consumers that were rushed in the airport and don’t have the time to go to the local mall.
Threats
Intense competition is one of the many threats that ProActiv faces. There are several skin care products that are made “for men” on the market under popular company’s licensing like: Johnson & Johnson- Neutrogena Men’s Skin and Clean and Clear lines, Nature’s Cure, Menscience, Clinique, Anthony Logistics for Men, Nivea for Men, aMENity, and SkinCeuticals. Most of the competition is moderately priced in comparison to ProActiv. With the economy still recovering, consumers may be more tempted to purchase one of the many cheaper products instead of ProActiv. Some of the competitors have fewer steps to achieve a clear complexion. ProActiv has a three step process while most others only have a one or two step process. It makes it easier and quicker to clean your face. Although ProActiv has a customer support hotline, other competitors offer a true personalized experience like Clinique. The consumer can do into a department store and have the Clinique representative evaluate their skin and assist them in selecting which products would suit them best.
