Tag Archives: Dollar Shave Club

New Products for Dollar Shave Club

Shave

It’s been a while since we have written about Dollar Shave Club (DSC) and the company has been far from quiet. The online company made its name using viral videos and a cheeky sense of humor to start a low-cost razor subscription service. The young company has impressive numbers – 1.1 million subscribers, $7.2 million/month in sales, $65 million in revenue last year, and an estimated 10% market share in the U.S. razor blade business. Not bad at all.

Although DSC started by selling only razors, it soon added wipes and shave cream to its product line. The newest addition is a line of men’s hair care products called “Boogie’s.” The product line even has a “hairantee” that offers a full replacement with a different styling product if it doesn’t meet the customer’s needs. While DSC made its name selling low-cost razors, the new product line is at or above the prices of comparable hair care products. It remains to be seen if the convenience and subscription model will work for the new product lines as well as they worked for razor blades.

Group Activities and Discussion Questions:

  1. Show Dollar Shave Club’s Web site: https://www.dollarshaveclub.com/
  2. View the latest videos:

http://youtu.be/Pui78pskx24

http://youtu.be/JbsJPO-ZreM

http://youtu.be/PWPkZH_UicU

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Which strategy is DSC now using? Why? Is this an effective strategy for DSC?
  3. Divide students into teams. Have each team select one of the four different strategies and explain how that strategy could be used for DSC.

Source: Ad Age Daily, other news sources

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Competition for Online Razor Business

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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 (www.800razors.com).  Compare this with Dollar Shave Club (www.dollarshaveclub.com).
  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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Dollar Shave Club Adds New Product Line

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By now, many male (and female) consumers are familiar with the popular viral video for Dollar Shave Club. The humorous video has more than 10 million hits and has helped the company build a subscriber base of roughly 200,000 men who receive a new shipment of razors each month from Dollar Shave Club.

But how does an online company known for a single product line add to its success? It starts by examining the needs and wants of the target market. And, in the case of Dollar Shave Club, it sticks with a category and market it knows – personal hygiene and men.

The company surveyed 1,000 men and found that 51% of respondents admit to using wet wipes regularly, and 16% use the wipes instead of using toilet paper. Men seldom talk about using the product and 24% actually hide them in the bathroom. The survey also found that 23% of the men discreetly buy the products – and buy online. With the new product line – wet toilet wipes – Dollar Shave Club’s stated goal is to “own the bathroom and be the easiest place for men to buy the things they use every day.”

It’s a sizeable market to enter – toilet paper sales are $8.4 billion annually, which is a much larger category than the $3.6 billion annual market for razors and blades. However, for all it’s size, within the toilet paper industry, wet wipes are a niche product adopted mainly by women and children.

Enter Dollar Shave Club’s product, One Wipe Charlies. For a $4 monthly subscription addition, a package of 40 wipes can now be delivered – discretely – each month.

Group Activities and Discussion Questions:

  1. Bring up Dollar Shave Club’s Web site: www.dollarshaveclub.com
  2. Show the original video.
  3. Next, show the new video for One Wipe Charlies: https://www.dollarshaveclub.com/one-wipe-charlies
  4. Discuss the video: key message, target market, effectiveness, etc.
  5. Discuss the marketing strategy that the company uses.
  6. Using the product/market grid, discuss which strategy the company is using with the wet wipes.
  7. Divide students into teams. Have each team brainstorm on additional products that could be sold to the company’s customers.

Source:  Brandchannel.com, 6/7/13

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