Tag Archives: branding

Schick Buys Harry’s for $1.37 Billion

The shaving industry is cut-throat (no pun intended) with fierce rivalries between Schick, Gillette, Unilever, and P&G. A few years ago, Unilever bought Dollar Shave Club for more than $1 billion. The deal gave Unilever access to a new market of online consumers for men’s grooming products. Last year, Procter & Gamble bought Walker & Co. which markets Bevel, a shaving brand focused on black consumers.

Not to be left behind, Schick has now announced a similar type of deal, buying shaving company Harry’s for $1.37 billion. Harry’s has roughly 2.6% of the men’s shaving industry, with Schick at 10% and Dollar Shave Club at 8.5%.

Harry’s differs from Dollar Shave Club as it has retailers such as Target and Walmart stocking its products on their shelves in addition to online sales. Harry’s also launched Flamingo as a new women’s grooming brand.

Dollar Shave Club and Harry’s built a direct-to-consumer business model which has been enthusiastically embraced by shoppers. Prices are lower, and connections are more easily built between the brands and the shoppers.

Where do you buy shaving products?

Group Activities and Discussion Questions:

  1. Poll students: Where do they buy razors and grooming products? Approximately how much do they spend each month on these?
  2. Discuss competition: what are the direct competitors for this product? Indirect competitors?
  3. View Schick’s Web site: https://www.schick.com/
  4. View Harry’s Web site: https://www.harrys.com/en/us
  5. View Flamingo’s Web site: https://www.shopflamingo.com
  6. View Bevel’s Web site: https://getbevel.com/
  7. Divide students into teams. Have each team analyze the one of the shaving Web sites.
  8. What are the points of difference? Key messages? Target market?

Source: Associated Press. Schick owner buys Harry’s in new shaving war alliance. (9 May 2019).

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P&G Introduces New Detergent ‘Swatches’

Tide Pods were a revolution when they launched in 2012 and have since spawned a new look for many detergent and soaps as pods took over the laundry room. But what’s next? Could P&G top the Tide Pod craze? Perhaps. And the answer may be in producing a new product line without using a key ingredient – water.

The innovative products are not in the old soap and detergent forms; instead, they come in small swatches that look like fabric, but foam when water is added during washing and cleaning. The new product form substantially reduces the size and weight of detergents, making them lighter and smaller to package, ship, and store. There are eight types: hand soap, face wash, body wash, shampoo, conditioner, laundry detergent, surface cleaner, and toilet cleaner.

Think about it. Instead of carrying home (or shipping) a gallon of detergent that can weight upwards of eight pounds, the new product can be carried home in a small box that weighs ounces, and is packaged in biodegradable boxes. This new size would allow P&G to sell direct to consumers. Pricing is higher than standard products though. A box of 60 body wash swatches are $19, while laundry detergent costs $29 for 30 swatches (compared to 81-pack of Tide Pods at $19).

One remaining topic is how to brand and name the new product line. It is currently being called EC30. P&G is still considering whether to create a new brand, or use another well-known P&G product name.

What is your opinion of the new product line?

Group Activities and Discussion Questions:

  1. Discuss the importance of clearly defining a target market.
  2. Show the IndieGoGo campaign that P&G used for proof of concept: https://www.indiegogo.com/projects/ds3-next-generation-cleaning-for-body-and-home#/
  3. A video of the product can be found at https://youtu.be/ToPjozrz6ME
  4. The product can also be found on Web site: https://ds3clean.com/
  5. For this product, what is the target market? Include demographics, psychographics, behaviors, values, attitudes, etc. (Note: Can the product be sold to organizations also?)
  6. Based on the target market profile, what makes this product unique for these customers?
  7. Poll students: How should P&G brand/name the new product line?

Source: Terlep, S. (22 April 2019). Forget Tide Pods. P&G bets water-free soap ‘swatches’ are the future. Wall Street Journal.

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Happy 60th Birthday, Barbie!

Happy 60th birthday to Barbie!

Launched at the New York Toy Fair at a price of $3.00 way back in 1959, today’s Barbie dolls have taken new shapes, sizes, colors, and careers into their stride. While Barbie has often been criticized, the original vision for Barbie – to encourage girls to think about their futures – still holds today. The doll’s original figure (tall, busty, Caucasian) is also still around, but it has also been broadened and diversified to fit today’s girls and society.

Today’s Barbie dolls include four different body types, seven skin tones, 22 eye colors, 24 hairstyles, and an extensive wardrobe of clothes, accessories, houses, and cars. Barbie has had dozens of careers. She is not only a fashionista, she embraces careers such as actress, politicians, doctors, athletes,  artists, journalists, mountaineers, activists, astronauts, teachers, and more. There simply is no limit to what Barbie – and girls – can accomplish. Barbie is equally at home in a robotics lab as she is on a farm.

And now Barbie is also taking on gender gap in The Dream Gap Project. Beginning at age five, many girls develop limiting beliefs about themselves and what they can accomplish. By age seven, girls are more likely to think that boys are smarter than girls. Barbie is taking this on by showing role model dolls who illustrate what is possible.

What do you want to be when you grow up?

Group Activities and Discussion Questions:

  1. Discuss the product life cycle.
  2. Where does Barbie fit in the life cycle?
  3. How does the toy remain relevant?
  4. Show video of Barbie history: https://youtu.be/DXFVaYTI3uQ
  5. Show Barbie Web site: https://barbie.mattel.com/en-us/about/role-models.html?icid=home_body-2_module_role-models_p1
  6. Show the Dream Gap Project site: https://barbie.mattel.com/en-us/about/dream-gap.html
  7. Divide students into team. What else can Mattel do with Barbie?

Source: Klara, R. (25 February 2019). Here’s how much Barbie has changed since her debut almost 60 years ago.

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