Clearasil Case

In 2006, the stealth skincare brand 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 Clearasils market share and growing the Clearasil
brand -- currently the #4 Young Skin Care (YSC) brand in the U.S. The management team at Reckitt
Benckiser has charged the Brand Team to reevaluate Clearasils entire brand structure and improve
performance with the goal of ascending to the #3 position (overtaking Clean & Clear) in the next five
years.
The Brand Teams attention is focused on Clearasils target consumers and positioning components
that were identified early on as most challenging and critical to Clearasils future success. However,
to formulate the winning strategies needed to get to a #3 share position, the Brand Team understands
there are three fundamental issues that need further refinement and management alignment:
Who should be Clearasils core consumer target moving forward?
What optimal/ownable positioning can withstand changing market conditions and take
Clearasil to #3 market share spot in the next five years?
How to bring the new Clearasil brand positioning to life through a few key go-to-market
strategies?

BRAND HISTORY
In the early 1950s, U.S. marketer Ivan Combe developed Clearasil after talking to teenagers and
pharmacists about the need for an acne cream that worked. He asked chemists to create a
formula that dried up acne and covered blemishes with a flesh-tinted cream. The cream was
named Clearasil to capitalize on every teenager's dream of having clear skin. The first Clearasil
products a bar soap and a medicated ointment in a tube - were launched in the U.S. in 1959.
In 1961, Combe sold Clearasil to The Vick Chemical Company, which later became RichardsonVicks. The Clearasil brand grew steadily through the 60's and 70's, launching across Europe,
Canada and Japan. New medicated washes were added to the line and by 1982, Clearasil was
the market leader in the U.S., Japan and Germany.
Proctor & Gamble acquired Clearasil in 1985 for $1.24 billion. Under the Proctor & Gamble
tenure, Clearasil sustained its leadership position as the #1 brand in acne treatment, and
expanded the brand in over 70 countries.
During the early 90s, Proctor & Gamble strategized to grow the brand with a broadened scope of
product offerings for its teen target. In lieu of more treatment-focused products, Clearasil
introduced a new range of acne prevention products that acted against blocked pores, bacteria
development, and excess oil production. This range included a face wash, dual action pads,
medicated moisturizer, and a handy pen applicator that delivered powerful medication directly
onto a pimple without affecting over-drying the surrounding area.
However, during the mid-to-late 90s, Clearasil sales declined due to a flattened market and the
entrance of Neutrogena, a new mega brand into the YSC category.
In 2000, Proctor & Gamble put 50-year-old Clearasil on the block for sale. While profitable,
Clearasil accounted for only 2% of Proctor & Gambles beauty care division sales, and executives
at Proctor & Gamble decided to focus resources on a range of their top-tier beauty brands
instead. BHI acquired Clearasil that year for approximately $340 million.
In 2006, BHI was purchased by Reckitt Benckiser and now Clearasil is a part of the RB portfolio.

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CONFIDENTIAL
1961

Market Leader in US, Japan

& Germany

1985

Acquired by Proctor &

Gamble

1992
Mid-Late 90s

Sales/Share declined due to

a flattened market &
Neutrogenas entry into
Young Skin Care Category

2000

Boots bought Clearasil from

Proctor & Gamble

2006

Reckitt Benckiser
acquired BHI

Exhibit 1 Brand History Overview

1982
Broadened scope of product
offering, launched a Face
Wash, Dual-Action Pads,
Medicated Moisturize and a
handy Pen Applicator

Sold to The Richard sonVicks

1960-1970s

Launched internationally
Medicated Washes were
added to the line

Acquisitions
Divestitures;

1959

Clearasil Acne Treatment

Cream & Bar Soap
introduced nationally

1950

Product
Launches:

Clearasil Products
Invented

PRODUCT PORTFOLIO, TARGET CONSUMERS & POSITIONING EVOLUTION

BHI acquired Clearasil with twelve products on the market. They reportedly spent 50M globally
positioning Clearasil as a teen brand (according to PR release from Brand Republic dated September
10, 2002). One global ad campaign used humor to support this repositioning, with a teenage boy
falling off his skateboard in front of a group of teenage girls. The tag read, "Clearasil can't help you
with some embarrassments, but it can help tackle the three main causes of spots.
In 2003, Clearasil added the Total Control platform to reach outside the teen demographic and take
aim at 18-24 year-old females. Designed to maintain clear skin and tackle skincare problems on a
daily basis, these seven new products, including Foaming Cleansing Cloths and a Daily Mattifying
Moisturizer, featured more sophisticated packaging, a refined Clearasil logo that streamlined the arc
shape, and lighter blue background.
To offer consumers a maximum strength premium line, Clearasil introduced the Ultra platform in
January 2004. Promising clearer skin in three days with a money back guaranteed if not satisfied,
Clearasil Ultra was introduced with two new treatment creams available in both the traditional tinted
format, and a vanishing format that blends into skin.
BHI continually looked for opportunities to expand the Clearasil franchise. This time, Clearasil
targeted 18-24 year-old males to tap into the growing mens grooming market and retain teen males
as they grew older. In July 2004, BHI introduced the Clearasil for Men line which consisted of a body
wash, an energizing face wash, a shave gel and shave balm. All products contained acne-prevention
properties (e.g. salicylic acid) to tie back to Clearasils heritage as an efficacious acne skin care
brand.
Total Control was discontinued in 2005 due to poor sales performance. To replace it, two new lines,
Clearasil Daily Oil Control (OC) with green tea and peppermint, 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 color schemes were also introduced for Oil Control (in Green) &
Blackhead Control (in Purple) to attract more females. By the time Reckitt Benckiser took over
Clearasil, the Clearasil portfolio was reduced to four sub-lines: base line (packaged in Blue), Ultra, Oil
Control & Blackhead Control. At that juncture, Clearasils base line products were also repositioned
under the banner, Daily Cleanse. Clearasil leveraged use of the term daily across the Cleanse, Oil
Control and Blackhead Control product platforms to diffuse the impression that Clearasil products
were too harsh for daily use.
In 2007, Reckitt Benckiser updated Clearasils look and feel. The base line graphics were changed to
a darker, more prominent blue, and base line name was changed from Clearasil Daily Cleanse to
Clearasil Deep Cleanse. In the same year, 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 Clearasils base line by renaming it Clearasil StayClear,
introducing three new products in the line -- Skin Perfecting Wash, Daily Facial Scrub, Oil Free Gel
Wash --, as well as new formulas, logos, graphics and packaging for existing products. This marks the
third new base line product name and packaging graphics in three years. The repositioning of
Clearasil StayClear, and its tag Clearer Skin, All Day, Every Day, were intended to connect with
consumers seeking a product to maintain healthy looking skin and prevent breakouts. Clearasil Ultra
also revised its claim from Clearer Skin in 3 Days to Starts Working Instantly, to align with
consumers who want to deal with breakouts right when they begin to surface. The new packaging
also reflects this proposition with cues designed to appeal to both sexes, skewing slightly more male.
Due to poor sales performance, Clearasil Blackhead Control and Oil Control were discontinued as of
second quarter 2008. At present, Clearasils product portfolio is streamlined to only the StayClear
(base line) & Ultra two platforms (see Exhibit 4).

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CONFIDENTIAL
Expanded target to include 1824 females; Expanded
Positioning to include Daily
Maintenance

Launched Ultra Platform

Jan 2004

Strongest efficacy claim in the

market (Clearer skin in 3 days w/
Money back guarantee

Launched Mens Line

Jul 2004

Expanded Target to include

18-24 males

Total Control discontinued

2005
2008

Launched 2 Wash Products & 1 Daily Facial

Scrub under StayClear; Discontinued
Blackhead Control & Oil Control; Updated
the packaging again for both Ultra &
StayClear

2007

Launched Deep Cleansing Scrub under

Base Line; Launched Ultra Kit & Ultra Gel
Wash; Updated entire line packaging

2006

Launched Daily Oil Control & Daily

Blackheads Control. Lighter packaging
applied to Base Line, Oil Control &
Blackhead Control

Daily name leveraged across

Base Line, Oil Control &
Blackhead Control to diffuse
Clearasil inherited harsh image

Daily name changed to Deep

Cleanse to reemphasize
efficacy

Base Line renamed as

StayClear positioned as
Clearer Skin All Day Every Day
added Starts working instantly
to Ultra line

Exhibit 2 Target consumers, positioning & packaging evolution

2003

Target Consumers
Positioning

2002

Product Launches
Packaging Changes
Launched Total Control w/
Lighter Blue Packaging

Target Consumers: Teens

Positioning: Treatment
focused

Exhibit 3 Clearasil base line packaging graphics evolution

2002

2006
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2007

2008

Exhibit 4 Current product portfolio

Ultra Starts working instantly
WASHES
Retail Price: $8.49

StayClear Clearer Skin All Day Every Day

WASHES
$4.99

DAILY FACE WASH

ACNE CLEARING GEL WASH

SCRUBS
Retail Price: $8.49

DAILY FACE WASH

DAILY FACE WASH

SENSITIVE

SKIN PERFECTING
WASH

OIL FREE GEL WASH

SCRUBS
$4.99

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DEEP CLEANSING SCRUBDAILY FACIAL SCRUB

ACNE CLEARING SCRUB

TREATMENT
CREAMS
Retail Price: $9.49

TREATMENT
CREAMS
$5.99
VANISHING ACNE
TREATMENT CREAM

PADS/WIPES
Retail Price: $8.49

TINTED ACNE
TREATMENT CREAM

VANISHING ACTION
TREATMENT CREAM

TINTED ACNE
ADULT ACNE
TREATMENT CREAM TREATMENT CREAM

PADS/WIPES
$4.99

DEEP PORE CLEANSING PADS

KITS
Retail Price: $19.99

ACNE SOLUTION SYSTEM

PORE CLEANSING PADS

ACNE FIGHTING
CLEANSING WIPES

MARKETING COMMUNICATION
Historically, teens have always been Clearasils target consumer. In 1957, Clearasil made advertising
history as the second brand to sponsor the popular teenage dance and music TV show American
Bandstand with the Jet-a-way Sweepstakes, a contest promising to whisk 15 boys and 15 girls on a
two-week cross-country adventure. Some 20,000 runner-ups would receive record albums containing
the most popular tracks of the day. When American Bandstand host Dick Clark claimed Clearasil
would, drink up oil, help dry blemishes, and help you to look better, teens responded in droves, sales
skyrocketed, and Clearasil quickly ascended to lead the category in acne treatment.
In 2004 the executives at BHI realized that more than half of teens spent a considerable amount of
time online (according to Pew/Internet & American Life Project), and launched an online snowboard
simulation game that used geo-targeting and content management tools that allowed players to see a
specific version of the game based on their location.
In 2005 and 2006, the core brand message Clearasil gives clear skin for the important moments in
life focused more on everyday scenarios, and corresponding ads depicted teens in transitional
moments, such as a first interview, or an older brother giving skin care advice to his younger brother.
In 2007, Clearasil gives clear skin for the important moments in life gave way to a more spirited,
inspirational communication Clearasil May Cause Confidence, which conveyed the message,
Clearasil gives you clear skin so you have the confidence to make a bold, irreverent, unthinkable
move. Focused equally on males and females aged 11-24, the idea was to modernize the brand with
an expandable concept that would appeal to both younger and older users, and stretch across targets
and products without mimicking clichs often employed by the competition. Three edgier TV spots
were developed under the May Cause Confidence campaign that took a more daring, playful
approach in elevating the brand message beyond a generic product benefit, to focus on the end
benefit of confidence. The spots stood apart from the typical smiling, all-American approach employed
by the major competition, and succeeded in generating considerable media buzz. Unfortunately, this
campaign did not drive significant in-market sales lifts.
The May Cause Confidence campaign continued in 2008 with two spots supporting the launch of
new StayClear products. One depicted a young female who was so confident because of her clear,
smooth and soft skin, she greeted her friends and strangers with a cheek rub. A new spot for Clearasil
Ultra also aired in the second half of 2008 (all May Cause Confidence spots are included in the
folder).
The marketing support behind the May Cause Confidence campaign consists of primarily TV, brand
website update and market entry sampling given its limited budget level (Reckitt Benckiser
management decided to retrieve marketing spend on Print previously employed by BHI). While
Clearasil main competition focused on appealing to consumers through integrated 360 degree
marketing.

THE YOUNG SKIN CARE MARKET

The Young Skin Care (YSC) category is comprised mainly five product segments: Washes (40%
of category share), Scrubs (22%), Treatments (14%), Pads (10%) and Kits (10%). Neutrogena
has leadership positions in all four segments, except Kits, where Acne Free holds the number
one spot.
The total U.S. YSC market in 2008 is estimated at $1.13 billion (estimate based on Nielsen
scanning and panel data) in retail sales (including Proactiv). The category is fragmented with

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one direct-to-consumer brand Proactiv (22% dollar share), and mainly eight national retail
brands - Johnson & Johnsons Neutrogena (23% dollar share), Clean & Clear (16%), Clearasil
(8%), Bior (4%), Acne Free (3.5%), Noxzema (3%), Oxy (2.6%) and Stridex (1.5%). The
category has not expanded since Proactiv launched in 1994. In 2008, chiefly driven by
Neutrogenas break-through innovation, the WaveTM & Clean & Clears Blackhead EraserTM, the
category again grew to 3.5% (growth estimate based on Nielsen scanning and panel data).

Exhibit 5 The Young Skin Care Market

Clearasil
8%

All Other
16%

Stridex
2%
Noxzema
3%

Neutrogena
22%

Oxy
3%

Acne Free
4%
Biore
4%

Clean & Clear

16%

Proactiv
22%

The YSC market is expected to become more competitive with expansive new business models,
new segment entries and various brands that attempt to carve out a market niche through various
product positionings.
Proactiv centers around a three-step system of products, appealing to 16-35 year old males and
females who suffer from severe acne. Neutrogenas strategy is to own the dermatologist
recommendation with both acne and general skin care products for females aged 14-40. Attracted
by Proactivs lucrative direct-to-consumer model, Neutrogena launched skiniD TM in May 2008 as
the first personalized acne solution system to directly compete with Proactiv. Clean & Clear is
tightly focused on younger females aged 12-24. Their position as a girls best friend promises
beautiful skin thats clean & clear and under control.
Clearasils emphasis has changed over the years. It started out with teen-focused treatment only
product portfolio, and today offers a wide range of products both for rapid pimple treatment and
for everyday prevention, catering to teens aged 11-17 and young adults aged 18-24 (see Exhibit
2). Clearasil is the only brand in the U.S. that sources its sales equally from male and female
consumers. Exhibit 6 summarizes current competitive positionings and advertising expenditures.

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Exhibit 6 - Young skin care target consumers, positionings, and 2007 media share of voice (SOV)
Estimated media
share of voice
(% of TTL Category GRPs)

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Brand

Parent Company

Target Consumers

Positioning/strategy

Clearasil

Reckitt Benckiser Inc.

Male/Female, 11-24

Ultra Starts working instantly; StayClear for Clearer Skin All

Day Every Day

9%
36%

Neutrogena

Johnson & Johnson

Female, 14-40

Dermatologist recommended, acne & general skin

TM
care/skiniD to compete w/ Proactiv directly

Proactiv

Guthy-Renker Corporation

Male/Female, 16-35

For severe acne problems promising speed-to-action and

efficacy/Direct-to-consumers

20%

Clean & Clear

Johnson & Johnson

Female, 12-24

Clean & clear and under control

14%

Biore

Kao

Female, 12-24

Fresh/beautiful skin expert promising clear, perfect pores

12%

Noxzema

Alberto-Culver

Female, 18-34

Skin smarts and cleanser confidence

1%

Oxy

Mentholatum

Male, 11-17

Treatment focus/media mainly targeting at Mom

(purchaser/shopper)

1%

Stridex

Blistex Inc.

Male, 11-17

Treatment focus behind Pads

1%

CONSUMER ATTITUDE AND USAGE

A Usage and Attitude study conducted in September 2006 uncovered the key points below:
Skin conditions
Pimples/zits are the most common skin condition experienced by consumers, primarily
young people aged 11 17. Oily skin and blackheads are more likely to be experienced by
18 24 year-olds.
The key needs driving usage of skincare products among teens (11-17) are effective acne
products that demonstrate speed. Young adults (18-24) are more likely to extend to daily
use products hence increased usage occasions.
The relationship between level of concern, frequency and severity of skin condition is
complex
o Severity correlates with frequency suffering frequently counts as severe
o Concern, however, does not correlate with either severity or frequency
By the critical age of 15, half of the total consumers have entered the facial skin care
market.

Exhibit 7 Skin conditions experienced by age

88
81

Pimples/ zits

69
45
47

Incidence of suffering from

pimples, zits and acne is
higher among the younger age
groups. Older respondents
claim to suffer from oily skin.

59
61

Oily skin
52

11to15 (179)

50
57
57

Blackheads

16-24 (282)
25-34 (220)
35+ (354)

34
53
48

Whiteheads

56
32
33

11-24 (416)

45

Acne

Pimples 84%

33
17

Oily Skin 54%

Blackheads 50%
Whiteheads 40%

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Exhibit 8 Key consumer needs by age

11-17 years old

18+ yrs old

Help get rid of acne related problems

Are suitable for everyday use

Are experts in pimple care

Brands that really work

Most effective at dealing with pimples

Brands I trust

Brands that really work

High quality brands

High quality brands

Are good value for money

Work all day long

Work faster than other brands

Work faster than other brands

Work all day long

Help me feel better about myself

Are gentle on my skin

Brands I trust

Are modern and up to date

Are modern and up to date

Offer the package forms I like to use

Brands for me

Brands for me

Offer the package forms I like to use

Are pleasant to use

Are good value for money

Make me feel refreshed

Are pleasant to use

Are premium brands worth paying a bit more for

Make me feel refreshed

The right fragrances for me

The right fragrances for me

Are premium brands worth paying a bit more for

Treatment vs. Prevention

There is evidence to support market segmentation on the basis of treatment vs.
prevention, however approximately half of the market seek to BOTH treat and prevent skin
conditions as the objective of the facial skin care regime. These are the people most
involved in the market.
There is no evidence of a prevention / treatment spectrum as consumers are more worried
about their skin condition treaters are not necessarily more active than preventers.
Preventers, about a quarter of the market, seek to maintain, deep cleanse, and control
their skin. They are more likely to experience milder skin conditions and less frequently.
Treaters also account for about a quarter of the market. They experience more severe skin
conditions more frequently and aim to get rid of and zap pimples.
Consumers Psychographic Segments
In YSC market, consumers typically fall into two psychographic segments people who
tend to have higher anxiety about breakouts and people who are likely to have lower
anxiety.
Higher anxiety consumers seek immediacy & maxim efficacy. When they get a pimple,
they want to get rid of it as fast as they can.
Lower anxiety consumers believe daily skin maintenance is the way to avoid pimples. They
want the product to be efficacious but not drying out their skin.

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In-market Sales Drivers

Efficacy and quality are key drivers in the YSC market. Consumers are looking for trusted
brands that really work and are most effective at dealing with pimples.
Brands suitable for everyday use, are gentle on skin, and that work all day long are also
driving consumer purchase choices.
In 2008, Clearasil again scored highest on total brand awareness. In terms of Brand Strength,
Clearasil is perceived to be a brand for teens with particular equity in pimple and treatment. In
reality, however, according to TNS Usage Panel (2007), while Clearasil still leads teen males in
brand share of category usage occasions, Neutrogena leads in teen females (see Exhibit 7). The
most recent Brand Equity Tracker (ending Jun 2008) confirmed that affinity, trust and modernity
are more important to consumers, and are areas that Clearasil should focus on (see Exhibit 8).

CONFIDENTIAL

Exhibit 9 Brand share of category by gender

Brand Share of Category Usage - Males
7.0%

Brand Share of Category Usage - Females

12.0%

6.5%

11.0%
9.8%

6.0%

10.0%

9.2%

CONFIDENTIAL

4.9%
5.0%
4.0%

4.4%

8.0%

3.5%

3.3%

3.0%

8.1%
4.2%

4.2%

6.7%

7.6%
6.1%

6.0%

2.4%

2.2%
4.0%

2.0%

2.8%
2.3%

2.0%

1.0%
0.0%

0.0%
Clearasil

Clean & Clear

13 to 17

18 to 24

Neutrogena
25 to 34

Clearasil

Clean & Clear

13 to 17

18 to 24

Neutrogena
25 to 34

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CONFIDENTIAL
Driver score

Emotional
Functional
Absolute score for
Clearasil

50%
100%

40%
80%

30%
60%

20%
40%

10%
20%

0%
0%

Brand score

Exhibit 10 Attributes influence on brand strength

Attribute's Influence on brand strength

Category attribute
range

Key Needs:
Urgent treatment
Prevention of Pimples/Blackheads
Clearer Skin

Higher Efficacy (more harsh)

Consumer
Bias:
Proactiv
Young teens
High anxiety adults

CONFIDENTIAL

Product Bias:
Treatment Creams
Kits
Scrubs/Washes
Pads

Clearasil
Ultra

Consumer dynamic: majority tend to

move towards lower anxiety as get
older, and primary need becomes
prevention more than treatment as
anxiety (and spot incidence) drops.

Oxy
Clearasil
StayClear
Lower
Anxiety

Clean
& Clear

Higher
Anxiety

Key Needs:
Clear/healthy skin
Daily cleansing (remove dirt, oil)
Gentle on skin
Prevention of pimples/Blackheads

Lower Efficacy
(less harsh)

Consumer Bias:
F16+
Low anxiety adults

Neutrogena

Product Bias:
Washes
Toners
Scrubs
Pads

StayClear vs. Ultra

Compared to StayClear, Ultra is associated with stronger attributes, but both Ultra and
StayClear are fundamentally Clearasil and as such positioned closer to each other than to
competitors (Thus far, the Clearasil team has been trying to target Ultra for higher anxiety
consumers and StayClear for lower anxiety ones. The efforts have yet met any significant
success).
Both StayClear and Ultra users seek to control pimples as a main objective of their facial
skin care regime. Ultra users are more likely to fight, get rid of and zap pimples through
their skin care products.

Exhibit 11 Young skin care market perceptual map

CONCLUSION
The Clearasil Brand Team has to decide:
Who should be Clearasils core consumer target Teens (11-17) only, Young Adults (18-24)
only or both Teens and Young Adults? Aside from what is best from strategic standpoint, there
is marketing spending considerations that bore on this decision. Clearasil will not have same
level of marketing support as its main competitions namely Neutrogena, Proactiv and Clean &
Clear in the near future.
What positioning is optimal/ownable and could take Clearasil to #3 market share spot as the
market continues to evolve in the next five years.
How to bring this new Clearasil brand positioning to life through a few key go-to-market
strategies.
If your team were the Clearasil Brand Team, what would be your answers to above challenges?

_______________________________________________________________________________________________________________
TM
Clean & Clear, Neutrogena, Acne Free, Proactiv, Bior, Noxzema, Oxy, Stridex, Neutrogena Wave , Clean & Clear
TM
TM
Blackhead Eraser ,skiniD are registered trademarks of their respective owners.

CONFIDENTIAL