Competition for Online Razor Business


Dollar Shave Club has carved out a nice market niche with its funny videos, low cost products, and strong brand recognition. The company has done quite well, building from zero to a multi-million dollar company. In one year, it has gone from advertising only via viral videos to an estimated $10 million brand advertising campaign on ESPN’s Rose Bowl. But Dollar Shave Club is no longer the only game in town online for razor sales.

Enter a new upstart: 800Razors. The company has an exclusive e-commerce deal for razors featuring Schick blades and projects it can capture 10% of the market in the next 10 years. While its current revenue is estimated at $1 million, there is definitely a market worth fighting for: annual sales are more than $1.8 billion in offline sales of razor cartridges. (Gillette controls 81% of the U.S. razor cartridge business; Schick has 17%.)

Which shave do you prefer? Compare the two companies and decide which approach and product line will win.

Group Activities and Discussion Questions:

  1. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  2. Review 800razors products and Web site (  Compare this with Dollar Shave Club (
  3. What other products and companies are competitors? Place those on the positioning map.
  4. Divide students into teams and have each team develop a positioning map for this product.
  5. Have each team draw their map on the board.
  6. Debrief exercise.

Source:  Ad Age Daily, 1/6/14

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