Drs. Rodan and Fields met as dermatology residents at Stanford more than 20 years ago. Rodan + Fields Dermatologists is actually their second business venture together. The two women are the co-creators of Proactiv® Solution, one of the most successful skincare brands in the United States.
When Drs. Rodan and Fields went to pitch Proactiv to companies, executives were impressed. However, as Allan Kurtzman, then President and COO of Neutrogena, explained to them, Proactiv wasn’t going to work on a mass-market shelf. He told them “you can’t put a $40 regimen next to a $6.95 spot treatment and have it sell.” He also told them they needed a way to communicate and connect with their audience, and suggested an infomercial format.
That turned out to be brilliant advice. Through infomercials, the women were able to come into people’s homes and explain the brand, appealing on an intellectual and an emotional level. Proactiv quickly became a top-selling acne treatment that has won numerous awards in the beauty industry by following that marketing strategy.
From House Call to Wakeup Call
Drs. Rodan and Fields began Rodan + Fields Dermatologists because they felt this approach to skincare should be extended beyond acne to treat other common skin conditions. They launched the line in department stores because they believed the products could best be explained to customers one-on-one. Stores were delighted with Rodan + Fields’ numbers. However, the doctors weren’t seeing the kind of adoption they believed the products merited.
“The doctors were finding that the majority of people who were coming in for the product weren’t coming in because of anything the department store did,” explains Rodan + Fields President and General Manager Lori Bush. “It was word-of-mouth that was sending people in for the products. The doctors began to believe that there was much more potential if they could break out from behind the glass counter.”
In 2006, a PR initiative demonstrated that direct sales could be the perfect vehicle for the company. So Rodan + Fields held a “House Call” event in a Southern California home. Attendees were thrilled to have a better understanding of the products. They liked the brand’s message so much that many wanted to become more personally involved.
Then a local television affiliate ran a piece on the House Call. “The phones lit up at the station,” says Bush. “But callers weren’t merely interested in where they could buy the products. They wanted to know how they could hold one of these events. They were asking, ‘How can I get involved?’ ”
Dr. Rodan acknowledges that the company was reaching out to attendees in a way that crossed the usual seller-buyer boundaries. “People loved the product and philosophy so much that they wanted to be part of the team,” she says. “Because of this passion and enthusiasm, our customers literally pulled us out of department stores and into the direct selling business.”
The doctors approached Estee Lauder about transforming Rodan + Fields into a direct marketing company. Estee Lauder was interested in the idea, but ultimately determined that they didn’t have the infrastructure to allow the brand to realize its fullest potential. So Estee Lauder sold ownership rights back to Drs. Rodan and Fields while retaining a vested interest in the brand.
In 2008, Rodan + Fields became the first prestigious skincare brand to exit retail and enter the direct sales market.
