Transcript Final Presentation

Agenda
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Background
Product
Market Analysis
Financial Strategy
Conclusion
Background
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
VIDEO
Dollar Shave Club Video
Opportunity
Statistics
• 93% of women have not heard of Dollar Shave Club
• 85% of women would be willing to try a different brand
Market Trends
• High Prices
• Laser Removal
• Increasing Gas
Prices
Product
Three Women’s
Razors
Product
Market Need
• Lack of competition
• Gillette~ $8.34 billion
in net sales (2011)
• Set the industry
prices
• Control 70% of
blades and razor
market
• control 40% of
women electric
Market Segment
The Dollar Shave Club should
target the following market
segments:
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City Strivers
College Students
ATM Nation
Loan Rangers
Generation Wi-Fi
City Startups
Bohemian Mix
(Nielson)
Market Growth
• Hair Removal
Industry
• Expected to grow
to $33.3 billion by
2015
• 2011- sales
increased 5%
• earnings increased
10%
• Market Size
• 100,000,000
women in the US
• 94% of women
prefer razors
Target Market
Who are we going to target?
• Women ages 18-49
• We will be targeting all the
Generation X customers.
• Millennials, over the age of
18.
• 91% of Millennials are on the
web— we will be targeting
them since we will be
offering our products and
advertising over the internet.
Target Market: Geographics
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California
Suburban Areas
Large College
Campuses in
Southern
California
• Close to main
location in Santa
Monica
Target Market: Demographics
• Women
• Caucasian, Latino, and
Mix
• College Students
• Single Moms
• Large Cities
• Income between $0$10,000
• Income between
$40,000-$60,000
Target Market: Psychographics
• Use razors
• Wear shorts, skirts,
dresses..
• Lead busy lives
• Have children
• No brand loyalty
• Open to online
subscriptions
Marketing Objective
• Awareness
• Affordability
• Convenience
Value Proposition
• Who benefits?
• Anyone who buys
razors, is pinched for
time, and is tired of
paying too much for
a simple product.
• The Dollar Shave
Club manufactures
the razors
themselves.
Product Position
• "More for Less”
• More convenient
• Same Quality as
competitors
Competition
• P& G:
Gillette/Venus
• Schick
• Bic
• Remington
• Braun
• Laser Hair removal
• Spa and salons that
offer waxing
Competition
• P& G:
Gillette/Venus
• Schick
• Bic
• Remington
• Braun
• Laser Hair removal
• Spa and salons that
offer waxing
SWOT
Strengths
Weaknesses
• Create relationships with
intermediaries keeps customer
price low
• Unique, affordable service
• Operating costs are low because
few employees are needed since it
is an online service
• new company; therefore it does not
have a loyal customer base or
brand recognition, like Gillette, our
top competitor
• Currently, they only market to males
Opportunities
Threats
• Opportunities that favor The Dollar
Shave Club’s success include
culture, fashion, and weather.
• Culture: since 1920’s in American
culture it is customary to shave
• Fashion: shorts, skirts, dresses, short
sleeves
• Weather=hot weather less clothing
• Foreign trade agreements with China
and South Korea allow for low
manufacturing costs
• competitors of other razor brands
starting price wars
• If Gillette decided to offer subscription
similar to The Dollar Shave Club
Marketing Mix: Pricing
• 3 similar price levels
– Humble Twin/ the Silky Twin 1$
– The 4x/The lover’s Blade: 6$
s&h included
– Executive/the VIP: 9$ s&h
included.
• More add ons- increase price
• relate to our target market
because our positioning is more
for less
• customer to get more value for a
lower price
Marketing Mix: Promotion
• MONIQUE
Marketing Mix: Promotion
• Extensive social media
and Internet marketing to
gain awareness
• Print ads and magazine
ads
• T.V commercial spots to
inform people about the
company
• Viral YouTube videos
• Host promotional events
on college campuses to
encourage them to sign
up
Marketing Mix: Place
Close distribution channels with suppliers
and intermediaries keep prices low
Marketing Organization
Director of
Marketing
Webmaster
Graphic
Designer
Street
Team
Social
Media
Intern
Marketing Communication
Primary research survey:
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98 respondents participated and answered a total of 15
questions.
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responses of our survey were submitted between
March 07, 2013 and March 12, 2013.
Secondary research
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Searching online, the Procter & Gamble annual
reports, the Gillette website, journal articles from
Factiva and newspaper articles.
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Future marketing research includes following existing
trends in the razor industry.
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Continue to research successful segments of
consumers.
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Analyze the geographic locations of current customers
and connect warmer climates to increased razor blade
sales.
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Research the effective demographics and bring our
focus to these segments.
Financial Plan
Fixed Cost
• In-house 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
men’s product line is
3 years to pay off our
marketing budget for
female line.
Conclusion
Conclusion
References
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.
http://www.census.gov/newsroom/releases/archives/2010_census/cb11-cn147.html
http://www.gillettevenus.com/en-US/products/collection/embrace/
http://www.claritas.com/MyBestSegments/Default.jsp?ID=37&id1=2000&id2=39
http://www.womenyoushouldknow.net/pit-stop-a-quick-history-of-women-shaving/
http://www.statisticbrain.com/shaving-statistics/
http://www.dollarshaveclub.com
http://annualreport.pg.com/annualreport2012/files/PG_2012_AnnualReport.pdf