Clearasil CaseIn 2006. the stealing skin care trade name Clearasil® . along with its parent company Boots Healthcare International ( BHI ) . was purchased by Reckitt Benckiser. Inc. Since the acquisition. Reckitt Benckiser has faced considerable challenges in increasing Clearasil’s market portion and turning the Clearasil trade name — presently the # 4 Young Skin Care ( YSC ) trade name in the U. S. The direction squad at Reckitt Benckiser has charged the Brand Team to reassess Clearasil’s full trade name construction and better public presentation with the end of go uping to the # 3 place ( catching Clean & A ; Clear® ) in the following five old ages.
The Brand Team’s attending is focused on Clearasil’s mark consumers and positioning – constituents that were identified early on as most ambitious and critical to Clearasil’s hereafter success. However. to explicate the winning schemes needed to acquire to a # 3 portion place. the Brand Team understands there are three cardinal issues that need farther polish and direction alliance: Who should be Clearasil’s core consumer mark traveling frontward? What optimal/ownable placement can defy altering market conditions and take Clearasil to # 3 market portion topographic point in the following five old ages?
How to convey the “new” Clearasil trade name placement to life through a few cardinal go-to-market schemes?
BRAND HISTORYIn the early 1950’s. U. S. seller Ivan Combe developed Clearasil after speaking to adolescents and druggists about the demand for an acne pick that worked. He asked chemists to make a expression that dried up acne and covered defects with a flesh-tinted pick. The pick was named Clearasil to capitalise on every teenager’s dream of holding clear tegument. The first Clearasil merchandises – a saloon soap and a medicated unction in a tubing – were launched in the U. S. in 1959. In 1961. Combe sold Clearasil to The Vick Chemical Company. which subsequently became RichardsonVicks. The Clearasil trade name grew steadily through the 60’s and 70’s. establishing across Europe. Canada and Japan. New medicated washes were added to the line and by 1982. Clearasilwas the market leader in the U. S. . Japan and Germany.
Proctor & A ; Gamble acquired Clearasil in 1985 for $ 1. 24 billion. Under the Proctor & A ; Gamble term of office. Clearasil sustained its leading place as the # 1 trade name in acne intervention. and expanded the trade name in over 70 states.
During the early 90’s. Proctor & A ; Gamble strategized to turn the trade name with a broadened range of merchandise offerings for its adolescent mark. In stead of more treatment-focused merchandises. Clearasil introduced a new scope of acne bar merchandises that acted against blocked pores. bacterium development. and extra oil production. This scope included a face wash. double action tablets. medicated moisturizer. and a ready to hand pen applier that delivered powerful medicine straight onto a hickey without impacting over-drying the environing country. However. during the mid-to-late 90’s. Clearasil gross revenues declined due to a planate market and the entryway of Neutrogena. a new mega trade name into the YSC class. In 2000. Proctor & A ; Gamble put 50-year-old Clearasil on the block for sale. While profitable. Clearasil accounted for merely 2 % of Proctor & A ; Gamble’s beauty attention division gross revenues. and executives at Proctor & A ; Gamble decided to concentrate resources on a scope of their top-tier beauty trade names alternatively. BHI acquired Clearasil that twelvemonth for about $ 340 million. In 2006. BHI was purchased by Reckitt Benckiser and now Clearasil is a portion of the RB portfolio.
PRODUCT PORTFOLIO. TARGET CONSUMERS & A ; POSITIONING EVOLUTION BHI acquired Clearasil with 12 merchandises on the market. They reportedly spent ?50M globally positioning Clearasil as a adolescent trade name ( harmonizing to PR release from Brand Republic dated September 10. 2002 ) . One planetary ad run used wit to back up this repositioning. with a teenage male child falling off his skateboard in forepart of a group of adolescent misss. The ticket read. “Clearasil can’t aid you with some embarrassments. but it can assist undertake the three chief causes of musca volitanss. ” In 2003. Clearasil added the Total Control platform to make outside the adolescent demographic and take purpose at 18-24 year-old females. Designed to keep clear tegument and tackle skin care jobs on a day-to-day footing. these seven new merchandises. including Foaming Cleansing Cloths and a Daily Mattifying Moisturizer. featured more sophisticated packaging. a refined Clearasil logo that streamlined the arc form. and lighter blue background.
To offer consumers a maximal strength premium line. Clearasil introduced the Ultra platform in January 2004. Promising clearer tegument in three yearss with a money back guaranteed if non satisfied. Clearasil Ultra was introduced with two new intervention picks available in both the traditional tinted format. and a vanishing format that blends into tegument.
BHI continually looked for chances to spread out the Clearasil franchise. This clip. Clearasil targeted 18-24 year-old males to tap into the turning men’s preparing market and retain adolescent males as they grew older. In July 2004. BHI introduced the Clearasil for Men line which consisted of a organic structure wash. an stimulating face wash. a shave gel and shave balm. All merchandises contained acne-prevention belongingss ( e. g. salicylic acid ) to bind back to Clearasil’s heritage as an efficacious acne tegument attention trade name.
Entire Control was discontinued in 2005 due to hapless gross revenues public presentation. To replace it. two new lines. Clearasil Daily Oil Control ( OC ) with green tea and Mentha piperita. and Clearasil Daily Blackhead Control ( BHC ) with natural sea salt. were launched in January 2006 right before Reckitt Benckiser took over BHI in February. 2006 ) . New colour strategies were besides introduced for Oil Control ( in Green ) & A ; Blackhead Control ( in Purple ) to pull more females. By the clip Reckitt Benckiser took over Clearasil. the Clearasil portfolio was reduced to four sub-lines: base line ( packaged in Blue ) . Ultra. Oil Control & A ; Blackhead Control. At that occasion. Clearasil’s base line merchandises were besides repositioned under the streamer. Daily Cleanse. Clearasil leveraged usage of the term “daily” across the Cleanse. Oil Control and Blackhead Control merchandise platforms to spread the feeling that Clearasilmerchandises were excessively rough for day-to-day usage.
In 2007. Reckitt Benckiser updated Clearasil’s expression and feel. The base line artworks were changed to a darker. more outstanding blue. and basal line name was changed from “Clearasil Daily Cleanse” to “Clearasil Deep Cleanse” . In the same twelvemonth. Clearasil launched under the base line – Clearasil Deep Cleansing Scrub. and under the Ultra line – Ultra Acne System Solutions ( a kit regimen ) and Ultra Acne Clearing Gel Wash.
In 2008. Reckitt Benckiser repositioned Clearasil’s base line by renaming it Clearasil StayClear. presenting three new merchandises in the line — Skin Perfecting Wash. Daily Facial Scrub. Oil Free Gel Wash – . every bit good as new expressions. Son. artworks and packaging for bing merchandises. This marks the 3rd new base line merchandise name and packaging artworks in three old ages. The repositioning of Clearasil StayClear. and its ticket “Clearer Skin. All Day. Every Day. ” were intended to link with consumers seeking a merchandise to keep healthy looking tegument and prevent jailbreaks. Clearasil Ultra besides revised its claim from “Clearer Skin in 3 Days” to “Starts Working Instantly. ” to aline with consumers who want to cover with jailbreaks right when they begin to come up. The new packaging besides reflects this proposition with cues designed to appeal to both sexes. skewing somewhat more male. Due to hapless gross revenues public presentation. Clearasil Blackhead Control and Oil Control were discontinued as of 2nd one-fourth 2008. At present. Clearasil’s merchandise portfolio is streamlined to merely the StayClear ( basal line ) & A ; Ultra two platforms ( see Exhibit 4 ) .
Selling Communication
Historically. teens have ever been Clearasil’s mark consumer. In 1957. Clearasil made publicizing history as the 2nd trade name to patronize the popular teenage dance and music Television show American Bandstand with the “Jet-a-way Sweepstakes. ” a competition promising to whisk 15 male childs and 15 misss on a two-week cross-country escapade. Some 20. 000 second bests would have record albums incorporating the most popular paths of the twenty-four hours. When American Bandstand host Dick Clark claimed Clearasil would. “drink up oil. aid dry defects. and assist you to look better. ” teens responded in droves. gross revenues skyrocketed. and Clearasil rapidly ascended to take the class in acne intervention. In 2004 the executives at BHI realized that more than half of teens spent a considerable sum of clip online ( harmonizing to Pew/Internet & A ; American Life Project ) . and launched an on-line snowboard simulation gamethat used geo-targeting and content direction tools that allowed participants to see a specific version of the game based on their location.
In 2005 and 2006. the nucleus trade name message “Clearasil gives clear tegument for the of import minutes in life” focused more on mundane scenarios. and matching ads depicted teens in transitional minutes. such as a first interview. or an older brother giving tegument attention advice to his younger brother. In 2007. “Clearasil gives clear tegument for the of import minutes in life” gave manner to a more spirited. inspirational communicating “Clearasil May Cause Confidence. ” which conveyed the message. “Clearasil gives you clear skin so you have the assurance to do a bold. irreverent. unthinkable move. ”
Focused every bit on males and females aged 11-24. the thought was to overhaul the trade name with an expandible construct that would appeal to both younger and older users. and stretch across marks and merchandises without miming cliches frequently employed by the competition. Three edgier Television musca volitanss were developed under the “May Cause Confidence” run that took a more dare. playful attack in promoting the trade name message beyond a generic merchandise benefit. to concentrate on the terminal benefit of assurance. The musca volitanss stood apart from the typical smile. all-American attack employed by the major competition. and succeeded in bring forthing considerable media bombilation. Unfortunately. this run did non drive important in-market gross revenues lifts.
The “May Cause Confidence” run continued in 2008 with two musca volitanss back uping the launch of new StayClear merchandises. One depicted a immature female who was so confident because of her clear. smooth and soft tegument. she greeted her friends and aliens with a cheek hang-up. A new topographic point for Clearasil Ultra besides aired in the 2nd half of 2008 ( all “May Cause Confidence” musca volitanss are included in the booklet ) .
The selling support behind the “May Cause Confidence” run consists of chiefly Television. trade name website update and market entry trying given its limited budget degree ( Reckitt Benckiser direction decided to recover selling spend on Print antecedently employed by BHI ) . While Clearasil chief competition focused on appealing to consumers through incorporate 360 gradeselling.
THE YOUNG SKIN CARE MARKETThe Young Skin Care ( YSC ) class is comprised chiefly five merchandise sections: Washes ( 40 % of class portion ) . Scrubs ( 22 % ) . Treatments ( 14 % ) . Pads ( 10 % ) and Kits ( 10 % ) . Neutrogena has leading places in all four sections. except Kits. where Acne Free® holds the figure one topographic point.
The entire U. S. YSC market in 2008 is estimated at $ 1. 13 billion ( estimation based on Nielsen scanning and panel informations ) in retail gross revenues ( including Proactiv® ) . The class is fragmented withThe YSC market is expected to go more competitory with expansive new concern theoretical accounts. new section entries and assorted trade names that attempt to carve out a market niche through assorted merchandise placements.
Proactiv centres around a three-step system of merchandises. appealing to 16-35 twelvemonth old males and females who suffer from terrible acne. Neutrogena’s scheme is to have the skin doctor recommendation with both acne and general tegument attention merchandises for females aged 14-40. Attracted by Proactiv’s moneymaking direct-to-consumer theoretical account. Neutrogena launched skiniD TM in May 2008 as the first individualized acne solution system to straight vie with Proactiv. Clean & A ; Clear is tightly focused on younger females aged 12-24. Their place as a “girl’s best friend” promises “beautiful tegument that’s clean & A ; clear and under control. ” Clearasil’s accent has changed over the old ages. It started out with teen-focused intervention merely merchandise portfolio. and today offers a broad scope of merchandises both for rapid pimple intervention and for mundane bar. providing to teens aged 11-17 and immature grownups aged 18-24 ( see Exhibit 2 ) . Clearasil is the lone trade name in the U. S. that beginnings its gross revenues every bit from male and female.
CONSUMER ATTITUDE AND USAGEA Use and Attitude survey conducted in September 2006 uncovered the cardinal points below: Skin conditionsPimples/zits are the most common tegument status experienced by consumers. chiefly immature people aged 11 – 17. Oily skin and comedos are more likely to be experienced by 18 – 24 year-olds.The cardinal demands driving use of skincare merchandises among teens ( 11-17 ) are effectual acne merchandises that demonstrate velocity. Young grownups ( 18-24 ) are more likely to widen to daily usage merchandises – hence increased usage occasions.
The relationship between degree of concern. frequence and badness of skin status is complexo Severity correlates with frequence – enduring often counts as terrible O Concern. nevertheless. does non correlate with either badness or frequence By the critical age of 15. half of the entire consumers have entered the facial tegument attention market.
Treatment vs. PreventionThere is grounds to back up market cleavage on the footing of intervention vs. bar. nevertheless about half of the market seek to BOTH dainty and prevent tegument conditions as the aim of the facial tegument attention government. These are the people most involved in the market.
There is no grounds of a bar / intervention spectrum as consumers are more disquieted about their skin status – negotiators are non needfully more ‘active’ than preventers. Preventers. about a one-fourth of the market. seek to keep. deep cleanse. and command their tegument. They are more likely to see milder tegument conditions and less often. Negotiators besides account for about a one-fourth of the market. They experience more terrible tegument conditions more often and take to “get rid of” and “zap” hickeies. Consumers Psychographic Sections
In YSC market. consumers typically fall into two psychographic sections – people who tend to hold higher anxiousness about jailbreaks and people who are likely to hold lower anxiousness.Higher anxiousness consumers seek immediateness & A ; maxim efficaciousness. When they get a hickey. they want to acquire rid of it as fast as they can.Lower anxiousness consumers believe day-to-day skin care is the manner to avoid hickeies. They want the merchandise to be efficacious but non drying out their tegument.
In-market Gross saless DriversEfficacy and quality are cardinal drivers in the YSC market. Consumers are looking for trusted trade names “that truly work” and are “most effectual at covering with pimples” . Trade names suited for mundane usage. are soft on tegument. and that work all twenty-four hours long are besides driving consumer purchase picks.
In 2008. Clearasil once more scored highest on entire trade name consciousness. In footings of Brand Strength. Clearasil is perceived to be a trade name for teens with peculiar equity in hickey and intervention. In world. nevertheless. harmonizing to TNS Usage Panel ( 2007 ) . while Clearasil still leads adolescent males in trade name portion of class usage occasions. Neutrogena leads in adolescent females ( see Exhibit 7 ) . The most recent Brand Equity Tracker ( stoping Jun 2008 ) confirmed that affinity. trust and modernness are more of import to consumers. and are countries that Clearasil should concentrate on ( see Exhibit 8 ) .
Compared to StayClear. Ultra is associated with stronger properties. but both Ultra and StayClear are basically Clearasil and as such positioned closer to each other than to rivals ( Therefore far. the Clearasil squad has been seeking to aim Ultra for higher anxiousness consumers and StayClear for lower anxiousness 1s. The attempts have yet met any important success ) .Both StayClear and Ultra users seek to ‘control pimples’ as a chief aim of their facial tegument attention government. Ultra users are more likely to ‘fight’ . ‘get rid of’ and ‘zap’ hickeies through their tegument attention merchandises.
