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Dollar Shave Club
By Josh Kern, Valerie Dominguez, Chris Phelps and Monique Yniguez
AgendaBackgroundProductMarket AnalysisFinancial StrategyConclusion
Background 1 (Valerie)ABOUT US
HOW AND WHY DOLLAR SHAVE CLUB WAS BORN
Like most good ideas, The Dollar Shave Club started with two guys who were pissed off about something and decided to do something
about it…
● Over-marketed to
● Why do we need all of this fancy stuff
● Inconvenient
● Leading razor manufacturer
Background 2 (Monique)
The OpportunityStatistics93% of women have not heard of Dollar Shave Club85% of women would be willing to try a different brand
Market Trends (Josh)
● High Prices● Laser Removal
● Increasing Gas Prices
The ProductThree women razors
Market Need (Josh)
● Lack of competition
● Set the industry prices
Gillette~ $8.34 billion in net sales
(2011)
control 70% of blades and razor market
control 40% of women electric shavers
Market Segment (Chris)The Dollar Shave Club should target the following market segments:
● City Strivers● College Students● ATM Nation● Loan Rangers● Generation Wi-Fi● City Startups● Bohemian Mix (Nielson).
Market Growth (Josh)
Hair Removal Industry ~ Expected to grow to $33.3 billion by 2015
(Global Industry Analysts, Inc., 2010)
2011- sales increased 5%
earnings increased 10%
Market Size ~ 100,000,000 women in the US
94% of women prefer razors (Ferrell & Hartline, 2011)
Target Market (Valerie)
Geographics
● California
● Suburban Areas
● Large CollegeCampuses in Southern California
Demographics
● Women
● Caucasian, Latino, and MIx
● College Students
● Single Moms
● Large Cities
● Income between $0-$10,000
● Income between $40,000-$60,000
Who are we going to target?
Women ages 18-49. We will be targeting all the Generation X customers. The Dollar Shave Club will also be targeting Millennials, over the age of 18. Since 91% of Millennials are on the web we will be targeting them since we will be offering our products and advertising over the internet.
Behavioral Factors/Psychographics
● Use razors
● Wear shorts, skirts, dresses..
● Lead busy lives
● Have children
● No brand loyalty
● Open to online subscriptions
Marketing Objective
● Awareness
● Affordability
● Convenience
Value Proposition (Chris)● Anyone who buys razors, is
pinched for time, and is tired of paying too much for a product as simple as a razor can benefit from The Dollar Shave Club.
● The Dollar Shave Club manufactures the razors themselves.
Product Position (Chris)
● "More for Less"
● More convenient
● Same Quality as competitors
The Competitionwhoever is doing competition check out this vid!!!>>>>-chris
http://youtu.be/YL8KsV8aPq0
Marketing Mix
Pricing
There are 3 price levels for the male segment and the female segment providing a razor for each segment that is
affordable. These are: the Humble Twin/ the Silky Twin which costs 1$ plus s&h.The 4x/The lover’s Blade: 6$ s&h
included. Lastly, the Executive/the VIP: 9$ s&h included.
The starting price level is based on the name of the company. Then after the dollar razor, the price increases as the
the next two levels are fancier razors with more add-ons like strips of aloe, added blades, and more grip to the razor,
which increase the price.
These are all affordable razors and relate to our target market because our positioning is more for less; this allows the
customer to get more value for a lower price. Currently, the prices for these razors are below the prices of Gillette and
Schick prices (Gillette). The shipping costs are low for the dollar razor and come with the other two razors. This allows
for the customer to actually be getting the value they paid for.
Marketing Mix (cont.)
Distribution
Dollar shave club will create close distribution channels with suppliers and intermediaries to keep prices low for
customers this makes sure they maintain prices and this adds to customer value.
Distribution channels:
(ADD CHART HERE)
Marketing CommunicationsThe marketing communication mix was determined by the fact that Dollar Shave Club has no tangible store, it is an online subscription, therefore there needs to be enough marketing and online presence to get the word out about the company and its products. We will use extensive social media and Internet marketing to gain awareness and a following of new customers. Next, we will distribute print ads and magazine ads as well as some T.V commercial spots to inform people about the company. The Dollar Shave Club will host marketing events and advertising events on college campuses to encourage them to sign up. This mix will target our customers online and offline.
Marketing Organization(valerie)
Monique please put my marketing organization flow chart here:
Marketing CommunicationOur primary research was held in an online survey, which 98 respondents participated and answered a total of 15
questions. Our team emailed the survey to family and friends. In addition, we also posted the online survey on social
medians for friends and acquaintances to engage in. The responses of our survey were submitted between March 07,
2013 and March 12, 2013.
Our secondary research was gathered by searching online from the Procter & Gamble annual reports, the Gillette
website, journal articles from Factiva and newspaper articles. We have also analyzed market trends of current razor
companies.Future marketing research will include following existing trends in the razor industry. We will be researching successful segments of consumers. We will analyze the geographic locations of our current customers and possibly connect warmer climates to increased razor blade sales. We will research the effective demographics and bring our focus to these segments.
Financial Plan● Fixed Cost
-Inhouse web designer ($60,000)-Graphic Designer ($40,000)-Domain Name ($2,000 yr.)-Director of marketing ($70,000)
● Variable Costs-Commercials ($225,000)-Banner Ads ($10,200)-Street Teams ($20,000)-Magazine Advertisements
($1,000,000)
Financial Plan● Revenue from the
mens product line is
● 3 years to pay off our marketing budget for female line.
Conclusion
DSC links
http://www.razorpedia.com/1/post/2013/04/dollar-shave-club-business-update.html
http://www.dollarshaveclub.com/about-us
Kotler, Phillip, and Gary Armstrong. Principles of Marketing. 13. New Jersey: Pearson, 2012.
