Dollar Shave Club Marketing Plan
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Dollar Shave Club Marketing Plan
List of Figures and Tables .................................................................................................................... 3
Executive Summary ............................................................................................................................... 4
Market Analysis Section- Part 1 ................................................................................................... 6
Situation Analysis ................................................................................................................................... 6
Market Summary..................................................................................................................................... 6
Geographics ............................................................................................................................................... 7
Demographics .......................................................................................................................................... 7
Behaviors/ Psychographics ................................................................................................................ 8
Market Needs ......................................................................................................................................... 10
Market Trends ....................................................................................................................................... 10
Market Growth ...................................................................................................................................... 11
SWOT Analysis ...................................................................................................................................... 11
Competition ............................................................................................................................................ 13
Keys to Success ..................................................................................................................................... 15
Critical Issues......................................................................................................................................... 15
Marketing Strategy Section– Part 2 ......................................................................................... 15
Marketing Strategy .............................................................................................................................. 15
Value Proposition ................................................................................................................................ 16
Mission ..................................................................................................................................................... 16
Marketing Objective ............................................................................................................................ 16
Financial Objective .............................................................................................................................. 17
Target Markets ...................................................................................................................................... 17
Positioning .............................................................................................................................................. 17
Strategies ................................................................................................................................................. 17
Marketing Mix ....................................................................................................................................... 18
Marketing Research ............................................................................................................................ 19
Financials ................................................................................................................................................ 19
Break-Even Analysis ........................................................................................................................... 19
Sales Forecast ........................................................................................................................................ 20
Expense Forecast ................................................................................................................................. 21
Controls ................................................................................................................................................... 22
Implementation .................................................................................................................................... 22
Marketing Organization .................................................................................................................... 23
Contingency Planning ........................................................................................................................ 24
References .............................................................................................................................................. 26
Appendix 1: CSUMB Market Survey- March 10, 2013 ........................................................... 29
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Dollar Shave Club Marketing Plan
Table 1: Competitor's 4P's ................................................................................................................ 13
Figure 1: Distribution Channels ..................................................................................................... 18
Figure 2: Break Even Analysis ........................................................................................................ 20
Table 2: Sales Forecasts..................................................................................................................... 21
Table 3: Magazine Advertisements ............................................................................................... 21
Figure 3: Marketing Organization Flow Chart .......................................................................... 23
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Dollar Shave Club Marketing Plan
The Dollar Shave Club will gain part of the women’s market share for razor sales in the
United States, by offering quality and convenience, but at a much lower rate compared to its competitors. It will achieve this by offering a monthly subscription of razors, created specifically for women, which will be conveniently delivered to their homes. The Dollar
Shave Club has created a strong tie to a manufacturer that produces quality razors at an extremely discounted rate for its men’s line. The same manufacturer will be used for its new women’s line.
The target market for The Dollar Shave Club women’s line will be those between the ages of 18-49. These women typically make their own financial decisions and have a computer or phone at their disposal to sign up for The Dollar Shave Club. Primary data, obtained by an online survey of a combination of 97 men and women, showed that more than 80% of women surveyed were open to trying a different brand of razor. Of that 80% of women over 50% were open to signing up for The Dollar Shave Club (M. Yniguez,
Survey, March 10, 2013).
The current competitors in the market sell their products in retail outlets or online stores for a much higher price than what The Dollar Shave Club will offer. Gillette owns the largest market share for women’s razors (Procter and Gamble, 2013).The Dollar Shave
Club has an advantage over Gillette; it can offer the same quality product at a much lower cost and have it delivered, without the frustrations of going to the store to purchase razors.
This allows customers to have the ability to choose different options that are available. In addition to addressing the advantages Dollar Shave Club has over its competitors, there is also the necessity to understand the competitor and learn from their marketing strategies and successes, as well as weaknesses and failures. This is essential in case the company is faced with similar issues.
Currently in the market there are limited providers of razors. This is an opportunity for
Dollar Shave Club to fill. Dollar Shave Club currently markets its product line for males, but by introducing a new product line this will open up an entire market that is available.
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Dollar Shave Club Marketing Plan
Our product offering is a new line of three different razors, priced differently based on features for women. The result Dollar Shave Club hopes to achieve with its new women’s product line is to provide a quality and efficient razor subscription delivered to the customer’s door each month.
The Dollar Shave Club plans on carefully implementing a marketing strategy to cater to each of the segments accordingly. This will involve choosing a suitable marketing mix.
This includes determining the price, distribution and marketing Communications.
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Dollar Shave Club Marketing Plan
Market Analysis Section- Part 1
In the current marketplace many consumers go to supermarkets to buy razors even though there is a much better alternative. The most notable market leader, Gillette, manufactures their razors, and then sells their products to supermarkets. The reseller such as Target or Wal-Mart marks up prices for consumers.
The consumer problem is the void in the market for a convenient way to purchase quality razors when needed. Razors are one of the most regular purchases consumers make (The
Dollar Shave, 2013). The prices of brand name razors range from 15$ to 20$ to refill.
This is expensive and there are few alternatives. Gillette holds over 75% of the global blades and razors market (Procter and Gamble, 2013).
The Dollar Shave Club manufactures the same quality razor and ships it right to the customer’s door allowing the consumer to pay less for the same product sold in stores.
This club has identified a niche in the razor market and shortened the supply chain of its competitors. In order to enter the full marketplace they have to extend their product line to broaden their target audience.
Currently, The Dollar Shave Club is missing an opportunity by not targeting women with its advertisements or products. Their top competitor, Gillette offers the “Venus” product line. If The Dollar Shave Club intends on taking advantage of this opportunity, it needs to make it possible for women to order products on The Dollar Shave Club’s website.
Gillette, the market leader, caters to 94% of women that prefer shaving by offering the
“Venus” line (Ferrell & Hartline, 2011). The Dollar Shave Club needs to extend their product line to offer female razors in order to expand their male dominated target audience. They must do this in order to compete with the market leader, Gillette, a company that generated $8.34 billion of the $13 billion dollar razor industry Dan, K.
(McDonald, 2012).
Many other razor companies such as Schick cater to women by offering different styles of razors such as “Schick Hydro.” Until The Dollar Shave Club caters to women, other
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Dollar Shave Club Marketing Plan companies in the industry will continue to have the competitive advantage in the female razor market, giving other companies the overall advantage in the razor industry.
The Dollar Shave Club has the chance to build its revenue and gain a competitive advantage over Gillette if it can manufacture and deliver the same quality but for a lower price to women. In order to expand as a company and introduce new female products,
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).
Warmer Climates
People are likely to shave and use razors if they live in warmer climates because they would be more likely to wear swimwear and clothing such as shorts and tank tops.
California
Our marketing campaign will start in California because we are focusing on a state with a diverse population and a warm climate. Additionally, we want to start marketing in
California because people in other states look to California for the next leading trends.
Suburban Areas
Focusing on suburban areas will help us reach women who lead busy lives trying to run their households and raising children.
Large College Campuses in Southern California
College Campuses that are located in Southern California have large student bodies that are usually comfortable with technology and purchasing monthly subscriptions (M.
Yniguez, Survey, March 10, 2013). Most students enjoy being outside in the sun and going to the beach which typically means shaving more. Also students don’t always have a vehicle accessible to them to go to the local department store to purchase razors.
Women
Women make up a large part of the razor market, with 58% of women using a razor as a hair removal device, and have enormous buying power ( Shaving Statistics, 2012) .
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Dollar Shave Club Marketing Plan
Currently The Dollar Shave Club is only targeting male consumers and losing out on a large part of the market. We will continue to pursue the male market but also expand to appeal to females.
Caucasian, Latino, and Mix
California's top two ethnicities are Caucasian and Latino (Humes, Jones, & Ramierz,
2011) . We will try to reach these two ethnicities foremost because they make up such a large part of the population.
Full time employees
Typically people with full time jobs lead such busy lives that they would be more willing to join a monthly subscription to make their lives easier.
College Students
College Students tend to pass on information quickly about their likes and dislikes. This would allow The Dollar Shave Club to be marketed by their peers.
Single Moms
Single Moms tend to lead very busy lives. They try to juggle numerous responsibilities and having one less thing to worry about would make their lives much easier.
Large Cities
Of the people we surveyed those living in larger cities were more willing to try a new brand of razor and sign up for a mail subscription (M. Yniguez, Survey, March 10, 2013).
Renters
Renters were more likely to be open to trying a new razor brand based on the income levels surveyed (M, Yniguez, Survey, March 10, 2013).
Annual Income Level of $0-$10,000
In our survey we found that those individuals who were in this income bracket were more likely to try a more cost affordable brand of razor (M, Yniguez, Survey, March 10, 2013).
Annual Income Level of $40,000-$60,000
Our survey led us to the conclusion that people who were in this bracket of income were open to online subscriptions and were not as brand loyal. They were looking for savings but also wanted quality (M, Yniguez, Survey, March 10, 2013).
Use razors as their primary hair removal device
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Dollar Shave Club Marketing Plan
We will focus our efforts only on those who use razors as their hair removal choice.
Wear shorts/skirts/dresses/tank tops
Those who wear this type of clothing are more likely to use razors as their hair removal choice.
Lead busy lives
We want to target those who have busy lives because the subscription would help them eliminate the need to buy razors at the store.
Have children
Those with children more than likely do not have the time to run to the store every few weeks to buy razors or it might be an inconvenience. They are more likely to be open to a monthly subscription (M. Yniguez, Survey, March 10, 2013).
Don’t have brand loyalty with razors
Those without brand loyalty will be open minded about trying another brand that offers the same quality.
Looking for a bargain
Those looking for a bargain will gladly sign up for The Dollar Shave Club because they offer quality products at a bargain price.
Open to new trends such as monthly subscriptions
People who already have monthly subscriptions and enjoy them will be more likely to sign up for The Dollar Shave Club.
Interested in appearing well groomed by society standards
Since society has put such an importance on being well groomed, this will be the need that The Dollar Shave Club can help fulfill.
Read magazines such as Cosmopolitan, Seventeen, Glamour, Maxim, Family Circle,
Readers Digest, and Shape
We want to target women that put grooming on the top of their lists. We also want to target moms at home.
Have online banking
On the Nielsen website those who are in the income ranges we are targeting were most likely to have online banking ("2011 P$YCLE Segmentation," 2011).
Early Adopters
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Dollar Shave Club Marketing Plan
Those who are first to jump on the bandwagon will be the first to sign up for The Dollar
Shave Club.
Early Majority
Following the Early Adopters will be the Early Majority who typically wait for a bit until something has been out on the market a while.
There is a great need for another competitor in the industry. Procter and Gamble is currently the market leader, controlling approximately 70% market share of blades and razors with the Gillette Company (McDonald, 2012). Procter and Gamble currently own
40% of market share of women with their Braun, electric epilators. Net sales of Procter and Gamble’s grooming division for 2012 was $8.34 billion. The hair removal industry is being firmly controlled by Procter and Gamble, providing them with the ability to set the market price of products.
The Dollar Shave Club is offering another option for female customers. One hundred million women over the age of 13, in the United States, remove hair in some fashion.
Ninety four percent of the women say they prefer to shave with a razor blade (Ferrell &
Hartline, 2011). The Dollar Shave Club will give these potential customers a more affordable option. In drug stores and grocery stores, there are only two or three brand options to choose from, primarily Gillette brands.
 High prices
 Laser removal
 Increasing gas prices
Three variables are important within the marketplace: high products prices, increased popularity of laser hair removal, and increasing gas prices. The most important trend occurring in the marketplace is high prices associated with quality razors. Many women are spending more than 20 dollars a month on razor blades. The industry is being controlled by a single company, allowing them to set the price of industry products.
Laser hair removal is becoming more popular among women. Many women hate to continue shaving with razors or electric shavers. Thus, these women decide to permanently remove leg and arm hair with laser hair removal treatments. According to
American Society for Aesthetic Plastic Surgery, in 2010, nearly 1 million laser hair
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Dollar Shave Club Marketing Plan removal treatments were performed (American Society for Aesthetic Plastic Surgery,
2011).
Increasing gas prices will continue to increase the overall cost of purchasing razor blades at the store. According to Gas Buddy, gas prices have been unstable but are steadily rising (Gas Buddy, 2013). Companies, primarily Procter and Gamble, need to deliver their product to stores. Consequently, increased gas prices will increase delivery costs of products. In addition, it will also be costly for consumers to drive to the store in order to purchase razors.
The hair removal industry is naturally growing. Industry sales are continuing to grow at a small rate (Global Industry Analysts, Inc., 2010). The market for shaving products is expected to grow to 33.3 billion dollars globally, by 2015 (Global Industry Analysts, Inc.,
2010). “Technological innovations, expected new product launches, enhanced focus on women’s shaving products, and a regain in demand for high-end disposable products upon economic recovery are expected to fuel market growth” (Global Industry Analysts,
Inc., 2010).The market trends are currently affecting the growth of the hair removal industry.
Net sales and net earnings of our competition are constantly expanding. The previous two years have shown an increase of both sales and earnings of the Gillette brand. Sales of the
Gillette brand increased 5% in 2012 and earnings increased 10% (Procter and Gamble,
2013). The increases are small percentages, yet make up hundreds of millions in sales and earnings.
The market has a large window of opportunity for new competitors. The hair removal industry currently lacks competition in the marketplace. The market is shifting towards more competition, with Axe recently entering the hair removal market. An increased competition will lead to more affordable prices. The Dollar Shave Club with be leading the way with the most affordable prices of any company.
This SWOT analysis will demonstrate the strengths, weaknesses, opportunities, and threats of Dollar Shave Club.
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Dollar Shave Club Marketing Plan
Strengths
The Dollar Shave Club currently manufactures designs and ships the razors, allowing
Dollar Shave Club to sell razors at a reduced price (Glazer 2013). The razors are high quality and affordable, which benefits the customer. The Dollar Shave Club offers a unique subscription service for our product that is not available otherwise, by using social media including YouTube, Twitter, Facebook and its website; it has gained popularity and a loyal customer base. This multi-media approach is less expensive than printing ads, and other traditional mass marketing efforts by doing everything in-house. Operating costs are low because few employees are needed since it is an online service. As our company grows we can hire more employees as necessary (Glazer 2013).
Weaknesses
The Dollar Shave Club is a 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, even though women make up more than half of the population. Also, customer relations are not emphasized on the website which may portray a company that is not customer oriented ("The Dollar Shave," 2013).
Opportunities
The opportunities that favor The Dollar Shave Club’s success include culture, fashion, and weather. Especially since our target market is to begin to sell to women. Women began shaving initially in the 1920’s when fashion took a turn and women began wearing dresses and lower cut hemlines as well as sleeveless attire. It has become customary in
American culture to shave all offending body hair (WSK, 2011). This makes razors a product that is bought often. Weather is a factor because we are going to introduce our product initially on the west coast and areas that are primarily warmer throughout the year, meaning women will shave more often if they are wearing dresses and shorts.
Threats
Foreign trade agreements with China and South Korea give The Dollar Shave Club the ability to produce their products affordably (Forbes, 2013). However, if these agreements went sour it could leave The Dollar Shave Club without a supplier of quality discount razors.
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Dollar Shave Club Marketing Plan
Another potential threat would be competitors of other razor brands starting price wars by pricing their products extremely low, or offering similar services and hair removal products. Companies that currently have market share have had time to gain revenues, which allows them to gain more market influence than The Dollar Shave Club. Example:
If Gillette decided to enter the online subscription segment that The Dollar Shave Club is in, they would have more money to spend on advertising and could offer a wider variety of products. Since there are no barriers to entry, Gillette could gain competitive advantage over The Dollar Shave Club.
The competition for The Dollar Shave Club includes the other razor brands that offer the same product, as well as alternative forms of hair removal products. Other brands that offer razors include: Gillette, Schick, Bic.
Alternative forms of hair removal include: going to a barber to get shaved, electric razors , epilators, waxing, laser hair removal, and depilatories such as Nair.
Table 1: Competitor's 4P's
Product (Type of hair removal)
Place (Available at
Target, Wal-Mart)
Price (1-5 cartridges) Promotion
Razor:
Gillette, Schick, Bic
Electric Razor:
Remington, Braun,
Phillips
Epilators
Panasonic, Remington
Depilatories (Nair)
Local
Local
Local
Local
$9-22
$60-200
Gillette: major marketing campaigns.
Agreements with stores, store fronts Ads:
Television, Magazines
Market “An incredibly close shave.”
Higher scale magazine promotions
Remington: “How the World gets Ready.”
Braun: “Built to Perform”
$60-$150
$4-6$
Higher scale magazine promotions
Remington: “How the World gets Ready.”
Braun: “Built to Perform”
“Leaves your skin smooth days longer than shaving”
Consultation Online ads, local ads Laser hair removal service
Local specific locations: salons, spas, clinics
Waxing (Salons) service
Local specific locations: salons
$20-60 each time
(Target, 2013)(Wal-Mart, 2013)(Amazon, 2013)
Local promotions for coupons
At home waxing
Top competitors all have a common marketing strategy. Not only are they all outlining
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Dollar Shave Club Marketing Plan their product’s performance, but they are also avoiding promoting the actual product.
Instead, they are focusing on marketing the result and benefit of their products. Gillette markets a smooth clean, kissable face. This isn’t the product, but the result and benefit of using the product. This is using the psychological factor, that if a man is clean-shaven he will be more appealing and attractive.
The Dollar Shave Club provides a service as well as quality razors. This is unique to the razor market, allowing them to be differentiated from its competitors. Offering additional products with the razor, like shaving cream or moisturizer will allow the company to compete with key competitors in this aspect.
Dollar Shave Club offers a monthly subscription for razors. This is separated into three price categories; the least expensive razor is priced at $1 plus shipping and handling. The first month the customer is shipped a razor blade handle with refill cartridges. In the following months, the customer is a shipped replacement cartridge. Customers can upgrade or switch to a lower price category at any point and may stop the service at any time without penalty.
The Humble Twin

5 refills per month

2 stainless-steel blades

Aloe Vera strip Moisturizes the skin

A shallow pivot head contours the face

Reliable
The 4x/ The Lover’s Blade

4 Refills per month

A gentle shave in a single stroke

4-Stainless-steel blades

Aloe Vera strip Moisturizes the skin

Wide, open-back for fast, easy rinse

Full 90-degree pivot head
The Executive

4 Refills per month

6 stainless-steel blades

Aloe, Vitamin E, and Lavender Lubricating Strip Moisturizes and calms sensitive skin
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Dollar Shave Club Marketing Plan

Wide-Rubber Guard Bar with wave fins bring the hair up to shave deep

Full 90-degree pivot head
For future success in the razor market the need for shaving must not diminish. Other methods of hair removal such as laser hair removal or trends like “No Shave November” hinder the likelihood of consumers purchasing razors from The Dollar Shave Club. In order to be successful The Dollar Shave Club will have to monitor and adapt to these changes in the environment.
Above all the key to future success is targeting women by offering a female product line and informing through effective advertising. In 2010, there were 96.7 males for every
100 females in the United States ("2010 census shows," 2011). This means The Dollar
Shave Club is not reaching over 50% of the potential market. For future success, this is a key issue that must be addressed.
Dollar Shave Club will face critical issues essential to moving forward and expanding the company. One issue is competitors’ influence in the marketplace. If Gillette decided to create a similar service for mailing razors, this would be a threat, because they have much more brand recognition and market share.
If expanding the company is an option and there needs to be secondary Manufacturing facilities built in another location, personnel will need to be hired and they must have agreements with intermediaries to keep up with the demand. This includes their razor suppliers, mailing services, and their website maintenance crew.
Also, if agreements with suppliers are cut off, this can impede business and halt production making it difficult for the company to carry on.
Marketing Strategy Section – Part 2
The value the Dollar Shave Club can bring by offering a female product line is convenience. Dollar Shave Club already offers convenient razor delivery at a low price to men. Adding a female product line will allow this company to broaden their targeted audience.
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Dollar Shave Club Marketing Plan
This new product line targeted towards females will offer female products with quality comparable to competitors at a lower cost in a far more convenient fashion. All of these products will be integrated into the company’s website making them easily accessible to the targeted audience. The Dollar Shave Club will be able to offer a significantly lower price than competitors because they have a shorter supply chain with fewer intermediaries, which will save the end user money. Also, the Dollar Shave Club will continue to be responsive to consumer demands and maintain excellent customer service throughout its expansion. Another strategy Dollar Shave Club will use is to expand its digital marketing channels on television and social media.
The Marketing strategy will be implemented by continuing the comical style of advertising which has already drawn almost 10 million viewers to their promotional video, “Our razors aren’t good, ourazors are f***ing great!”("The Dollar Shave,"
2013).
For 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 service The Dollar Shave Club provides.
Unlike industry leaders such as Gillette, The Dollar Shave Club gets its razors from a manufacturer at such discounted prices that its savings is passed down to the subscribers.
Our mission is to deliver outstanding, quality razors at the beginning of every month, for only a few dollars.
The marketing objective of The Dollar Shave Club is to bring awareness to the company.
Many hair removal consumers don’t have a variety of options. The Dollar Shave Club has already targeted the male segment and assembled a solid customer base.
We are attempting to acquire a new segment of customers; women. Of the women who partook in the survey, over 93% of the women have never heard of Dollar Shave Club and over 85% of the women would be willing to try a different brand of razor (). These numbers are astonishing, if we can inform all these women of The Dollar Shave Club products, many of them would be willing to subscribe to our monthly delivery.
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Dollar Shave Club Marketing Plan
A priority for the company was to break-even. Once that is accomplished, our next mission is to continue to grow and increase profits. Dollar Shave Club is focused on being innovative in the marketplace. We strive to stay ahead of our competitors. We will continue to concentrate on meeting our forecasted sales goals.
The Dollar Shave Club will be primarily targeting women aged 18-49. Despite accounting for 75% of the nation’s assets, Dollar Shave Club is not targeting baby boomers as target customers (Kotler, 2012). Baby boomers are welcome to use our services if they wish. Baby Boomers will hear by word-of-mouth through our current customers and will be exposed to our magazine advertisements as well. We are working to acquire the greatest number of subscribers as possible. Baby boomers will not be specifically targeted, but not ignored because each subscription will boost revenue equally; Dollar Shave Club needs to target segments with the most interest in our product. We will be targeting all the Generation X customers. Dollar Shave Club will also be targeting Millennials, over the age of 18. We will be advertising mainly over the
Internet and a study shows that 91% of Millennials are on the web (Kotler, 2012).
The Dollar Shave Club will be positioning products in a “More for less” category.
Competitors have set the market price and they offer their products for a higher price.
Dollar Shave Club offers our products at an affordable price. The prices of our service will be fixed and minimal for consumers.
The marketing strategy of The Dollar Shave Club is focused on the convenience of monthly subscriptions as well as the amount that the customer would save compared to buying brand name razors. Keeping prices low is only possible with good relationships with our suppliers and the efficiency of our distribution channels. The target market consists of males and women ages 18- 49 that want convenient and reliable blades. The
Dollar Shave Club will not only provide convenient, reliable blades, but offer them at a discounted rate. The target market is made up of people that are busy and lead hectic lives. These include college students, single moms and busy professionals. The Dollar shave Club adds convenience, because it is a subscription and is delivered straight to the
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Dollar Shave Club Marketing Plan customer’s door. The place part of our mix will ensure that the company keeps the website and online store updated and innovative to ensure customer satisfaction. Lastly, promotion will include all of the advertising strategies both online, print and college campus events. All of these promotional strategies will help gain brand recognition and new subscribers.
Pricing
There are three 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. Our women’s line is priced the same as the men’s razors.
The starting price level is based on the name of the company. Then after the dollar razor, the price increases as the next two levels are 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, 2013).
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.
Distribution
The Dollar Shave Club has close distribution channels with suppliers and intermediaries to keep prices low for customers, which allows the company to maintain prices and this adds to customer value.
Figure 1: Distribution Channels
Marketing Communications
The marketing communication mix was determined by the fact that The Dollar Shave
Club has no tangible store since it is an online subscription. This means there needs to be
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Dollar Shave Club Marketing Plan 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 gain a following of new customers. Next, we will distribute print ads and magazine ads as well as 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.
This marketing mix targets our customers because The Dollar Shave Club targets males and females differently, in different advertising areas. Our marketing mix was specifically designed to make sure that each of our target markets are covered in our marketing campaigns.
Our primary research was held in an online survey, which 97 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 to our survey were submitted between March
10, 2013 and April 1, 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 and researching successful segments of consumers. We will also analyze the geographic locations of our current customers and possibly connect warmer climates to increased razor blade sales. Lastly we will research the effective demographics and bring our focus to these segments.
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Dollar Shave Club Marketing Plan
Figure 2: Break Even Analysis
The Dollar Shave Club has already broken even. The company is established and has been building profits. In addition, the company has not taken into consideration their production and shipping costs of the product. The Dollar Shave Club has provided a majority of their focus on the fixed and variable marketing costs. The forecast provided will be evaluated after the conclusion of the marketing campaign, and modified for current trends in the marketplace.
In the first quarter The Dollar Shave club expects to sell over 17,000 units of each new product. It is expected that the cheapest, most basic razor will sell the most and that our most expensive razor will sell the least. Since the products are new, rapid growth per quarter is expected in the first year yielding over $1,300,000 in sales. For the second year it is predicted that sales will not increase as rapidly but will still experience a 12% growth from year one, sales equaling over $1,500,000. In the third year it is forecasted that growth will continue and increase 15% from the second year, a total 27% from the first year. Total products sold in the third year would be 371,391 with sales reaching over
$1,750,000. These sales will satisfy our marketing budget and yield profits. Therefore, these forecasts might be used as a quota but should be readjusted after the first quarter for a more accurate number.
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Dollar Shave Club Marketing Plan
Table 2: Sales Forecasts
Year 1
"The Silky Twin"
Cat 1 units sold
Sale price @ unit
Cat 1 TOTAL
"The Lovely Blade"
Cat 2 units sold
Sale price @ unit
Cat 2 TOTAL
Women’s Line Sales Forecasts
The Dollar Shave Club
Quarterly Sales Forecast
Q1 Q2 Q3 Q4
26000
$ 1.00
$ 26,000.00
28340
$ 1.00
$ 28,340.00
30891 33671
Annual Totals
118902
$ 1.00 $ 1.00 $ 1.00
$30,891.00 $33,671.00 $ 118,902.00
20000
$ 6.00
$120,000.00
21800
$ 6.00
$130,800.00
23762 26139 91701
$ 6.00 $ 6.00 $ 6.00
$142,572.00 $156,834.00 $ 550,206.00
"The V.I.P"
Cat 3 units sold
Sale price @ unit
Cat 3 TOTAL
17000
$ 9.00
$153,000.00
Monthly Totals: All Categories $299,000.00
18530
$ 9.00
$ 166,770.00
$ 325,910.00
20198 22016 77744
$ 9.00 $ 9.00 $ 9.00
$181,782.00 $198,144.00 $ 699,696.00
$355,245.00 $388,649.00 $1,368,804.00
Year 2-3 Annual Sales
Annual # 2014 & 2015 Units Sold Sales Growth
Year 2 322,949 $1,533,060.48 12%
Year 3 371,391 $1,763,019.55 15%
*Note Segment only includes the women’s line *
Dollar Shave Club will have many marketing expenses, annually. The company has created multiple fixed and variable marketing expenses, which are listed below.
Fixed marketing costs-

Website Developer (in house)- $60,000

Graphic Designer- $40,000

Domain Name annual fee - $2,000

Director of Marketing- 70,000 + bonuses
Variable marketing costs-

Commercial Advertisements- $225,000

Banner Ads - $10,200

Facebook side ads- $5,000

Street Teams- (college orientation) - $20,000
Table 3: Magazine Advertisements
Magazine
GQ
Cosmo
Glamour
Description
(3) ½ pg. Ads
(1) Full pg. Ad
(3) ½ pg. Ads
Price per Ad
$102,871
$289,110
$150,151
Total Price
$308,613
$289,110
$450,453
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Dollar Shave Club Marketing Plan
In order to measure the success of our new campaign that targets women, we will keep track of all sales by monitoring each new subscription and phone ordered subscription done by females. Since there are no other outlets to purchase a monthly subscription to
The Dollar Shave Club it will be relatively easy to keep track of. We will also continue to track new male subscribers, as we want to keep our already established customer base and make sure that we do not lose any because of our new campaign to target women.
The Dollar Shave Club will begin by conducting initial research and surveys, regarding the popularity of women razors in the marketplace. The company will continue the implementation process by acquiring our female-friendly products from our distribution manufacturer. Our three new blades will be the focus of our new marketing campaign.
Our main priority is to create awareness of our product. We will begin the marketing campaigns by introducing The Dollar Shave Club to College Campuses. The goal would be to attract students, who recently moved out on their own by introducing the products during orientation. Students, who have no form of transportation, will be more willing to subscribe for the program.
We will be advertising our program with commercials and magazines articles over popular women television networks and publication companies. We will also advertise on social media and invest additional resources into Facebook side ads. We will create banner ads for women interested in fashion and beauty blogs, in order to raise additional awareness to our target market.
At the conclusion of our marketing campaign it is important for us to analyze the results of our initial marketing campaign. The advertising projects which were successful will need additional resources, in order to boost the successful advertisements.
Unsuccessful advertisement will be discontinued, leaving a larger marketing budget for the successful advertisements. The Dollar Shave Club will also implement new advertisement strategies in order to follow current market trends in the hair removal industry.
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Dollar Shave Club Marketing Plan
Figure 3: Marketing Organization Flow Chart
Director of
Marketing
Webmaster
Graphic
Designer
Street
Team
Social
Media
Intern
Director of Marketing and sales will be in charge of implementing new ideas and making sure that our team is on track to meet deadlines. They will also be in charge of researching new trends and promoting public awareness through press releases. Other job responsibilities include buying commercial air time, magazine ads, banner ads, and
Facebook ads; these are just a few of the everyday functions that our Director of
Marketing will do.
The Webmaster will be in charge of development and upkeep of The Dollar Shave Club’s webpage. They will also be in charge of all of the coding and making sure the website is functioning correctly for customers to purchase subscriptions. Lastly our Webmaster will be in charge of working with the graphic designer to ensure that the look and feel of the website is in line with The Dollar Shave Club's brand.
The Graphic Designer will be in charge of all of the visual aspects of the website from ads to the look and feel of the website. They are also in charge of working with the
Webmaster to ensure that all of the design is cohesive on the website and all other marketing avenues, such as magazine print ads.
The Street Team will be our brand ambassadors. They will represent The Dollar Shave
Club across major college campuses during events. They will have booths in which they attract students by offering freebies and having contests. Job duties will also include selling subscriptions and creating brand awareness.
Lastly the Social Media Intern will be in charge of keeping up The Dollar Shave Club’s
Facebook, Twitter, and google+badge profiles. They will engage with our current and
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Dollar Shave Club Marketing Plan potential customers by spreading awareness about our brand and creating an outlet for a conversational relationship with consumers.
Difficulties and risks that we foresee:
One issue is competitor’s influence in the marketplace. For example: if Gillette decides to create a similar service for mailing razors, this might be a threat, because Gillette has much more brand recognition and market share.
Gillette would have to lower their prices to compete with the Dollar Shave Club, which would essentially go against their company’s mission. If Gillette chooses to do so Dollar Shave Club will expand the marketing to make sure new customers are always being sought out. In addition to this, the company will continue to offer razors and additional products. The customers that are already loyal will continue purchasing from Dollar Shave Club.
If we need to, we can always push efforts to new segments or expand our marketing campaign at college campuses because this is a market that is changing every year. New students are admitted and are newly living away from home. In addition, our magazine and Internet ad presence can be widened as we have more funds to do so. At the moment the plan is to advertise in a few top magazines, but expanding this would make more people see the advertisements. Examples include Family Circle and sports magazines as an expansion.
If expanding the company is an option then there needs to be a secondary facility built in another location, personnel will also need to be hired. New agreements and contracts with suppliers and intermediaries need to be redrawn to keep up with the demand. This includes razor suppliers, mailing service, and the website maintenance crew.
The way the company would deal with the growth is to build another facility possibly on the east coast of the United States or in the northeast to make shipping to the east coast and possibly Canada, feasible in a timely manner. New intermediaries might need to be sought, as well as new personnel to run the warehouse. Internet and Website maintenance can be done from one location as is it possible to work from anywhere because of the accessibility of the Internet.
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Dollar Shave Club Marketing Plan
Also if agreements with suppliers are cut off, this can impede on business and halt production, which would not allow the company to function as usual. The Dollar Shave
Club will have to re-examine and make agreements with other intermediaries, possibly without the customer’s knowledge so it doesn't affect price or distribution.
Worst Case scenario(s):
China/India trade relations (war, foreign affairs) the worst case would be that there is a war, trade agreement issues or negative foreign relations between the US and the countries that supply our goods. This would mean that the company would need to acquire another factory to produce the razors at the same price that we need to keep prices low and quality high.
Another worst case scenario is: the warehouse being damaged by a natural disaster. The first thing would be plan out how much time we need until the next shipping of product and if it affects people’s subscriptions, The company would then take planned steps to figure out how subscriptions would be handled in a timely manner. The company would have to work with our intermediaries and suppliers and possibly rent a facility that is temporary to deal with inventory store incoming shipments from our manufacturer.
In these worst case scenarios, communication with the customers is essential. We will notify the customer by email and mail and make sure that they know their razors are on the way. To curb customer dissatisfaction, Dollar Shave Club can send either samples of shaving cream and or samples of other products that are offered as gifts to ensure customer satisfaction. Sometimes all the customer wants is to be heard and apologized to, so The Dollar Shave Club will ensure that dissatisfied customers are addressed quickly and apologetically.
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Dollar Shave Club Marketing Plan
American Society for Aesthetic Plastic Surgery. (2011, August 05). Laser Hair Removal
Increasing in Popularity. Retrieved from: http://www.surgery.org/consumers/plastic-surgery-news-briefs/laser-hair- removal-increasing-popularity-1034878
Braun. (2013). Retrieved 03 09, 2013, from Braun: http://www.braun.com/us/seriesshavers.html
Colao, J. (2012, April 03). Dollar Shave Club: Breaking The Razor Blade Monopoly .
Retrieved 03 05, 2013, from Forbes : http://www.forbes.com/sites/jjcolao/2012/04/03/dollar-shave-club-breaking-therazor-blade-monopoly/2/
Dan, K. (Reporter). (2013). Dollar Shave Club Shakes up Industry . [Web Video].
Retrieved from http://live.wsj.com/video/dollar-shave-shakes-up-razorindustry/E4DB6C3A-BC23-4F64-998F-8FB3DA60F906.html
Hibu Business . (n.d.). Retrieved April 15, 2013, from Hibu Business: http://business.hibu.com/products/banner-advertising/#?cam=ppc-ao1-gog-ppcc003-g001-internet_banner_advertising-ph-m000-txt
Ferrell, O. C., & Hartline, M. D. (2011). Marketing Strategy . (5th ed., p. pg. 396). Mason,
OH: Nelson Education. Retrieved from: http://books.google.com/books?id=Lt12ggizMhIC&pg=PA396&lpg=PA396&dq
=women sales razor blade percentages&source=bl&ots=3K7z5dXT5D&sig=k05fMKiMADIe1R27PDoePR dZFkc&hl=en&sa=X&ei=lao-
UcKnG7OMyAHmj4GoDQ&sqi=2&ved=0CFgQ6AEwBA
Gas Buddy. (2013). Historical gas prices.
Retrieved from: http://gasbuddy.com/gb_retail_price_chart.aspx
Gillette. (2013). Products . Retrieved from: http://www.gillette.com
Gillette Venus. (2013). Products. Retrieved from: http://www.gillettevenus.com/en-
US/products/collection/embrace/
Glazer, E. (2012, April 12). A David and Gillette Story Technology and a Viral Video Are
Arming the Tiny Dollar Shave Club for Battle in the Razor Wars . Retrieved 10
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Dollar Shave Club Marketing Plan
2013, 03, from The Wall Street Journal: http://online.wsj.com/article/SB1000142405270230362400457733810378993414
4.html
Global Industry Analysts, Inc. (2010, August 10). Shaving products: A global strategic business report. Retrieved from: http://www.prweb.com/releases/shaving_products/razors_blades_creams/prweb43
65034.htm
Humes, K., Jones, N. A., & Ramierz, R. R. (2011, March 6). Overview of Race and
Hispanic Origin:2010 Census Briefs . (U. S. Bureau, Producer) Retrieved from :
Census.gov: http://www.census.gov/prod/cen2010/briefs/c2010br-02.pdf
Kotler, Phillip, and Gary Armstrong. Principles of Marketing. 13. New Jersey: Pearson,
2012.
McDonald, R. (2012, August 08). The proctor & gamble company annual report.
Retrieved from: http://annualreport.pg.com/annualreport2012/files/PG_2012_Form_10k.pdf
Procter and Gamble. Annual Report: P&G2012 Annual Report. Procter and
Gamble, 2012.
Grooming . Retrieved April 1, 2013. Retrieved from: http://annualreport.pg.com/annualreport2012/files/PG_2012_AnnualReport.pdf
The Dollar Shave Club. (2013). Retrieved from: http://www.dollarshaveclub.com/?utm_source=google&utm_campaign=branded
&utm_medium=search&utm_content=officialsitejoin&gclid=CPzP9Pyc_bUCFV
SVMgodtmIABg
Remington "Women's Hair Care and Hair Removal." Remington Products . N.p., n.d.
Web. 02 Apr. 2013.
Shaving Statistics . (2012, 08 18). Retrieved from Statistic Brain:
http://www.statisticbrain.com/shaving-statistics/
U.S. Census Bureau, (2011). 2010 census shows nation's population is aging.
Retrieved from: http://www.census.gov/newsroom/releases/archives/2010_census/cb11cn147.html
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Dollar Shave Club Marketing Plan
WYSK. (2011, November 08). Pit Stop: A Quick History of Women & Shaving .
Retrieved April 20, 2013, from Women You Should Know: http://www.womenyoushouldknow.net/pit-stop-a-quick-history-of-womenshaving/
2011 P$YCLE Segmentation System . (2011). Retrieved from: http://www.claritas.com/MyBestSegments/Default.jsp?ID=37&id1=2000&id2=39
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Dollar Shave Club Marketing Plan
Where do you live?
Small city
Medium Sized City
Large City
Rural Area
What is your age range?
18-24
25-31
32-38
39-45
46-52
53-59
60-66
67-73
74+
What is your income level?
0-10,000
10,000- 20,000
20,000- 40,000
40,000-60,000
60,000-80,000
80,000+
What is your Gender?
male
female
Other:
What is your main form of transportation to the store?
walking
bicycle
bus
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Dollar Shave Club Marketing Plan
car
Other:
Do you use any type of hair removal products?
yes
no
If you use hair removal products, what type do you use?
razor
Nair
electric razor
Other:
Answer the following questions if you use non electric razors: what brand razor do you use?
Gillette
Shick
Venus
Bic
Other:
Would you be willing to try a different brand? Explain your answer.
How often do you purchase razors?
every 2 weeks
every month
every few months
I don’t purchase razors
What locations do you purchase razors?
Walmart
target
Costco
dollar tree
Other:
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Dollar Shave Club Marketing Plan
How often do you purchase shaving cream?
Once a month
Once every few months
Once a year
I don’t use shaving cream
Would you use your significant others’ razor?
yes
no
Other:
Have you ever heard of Dollar shave club?
yes
no
Dollar shave club is a monthly mailing service that sends you a 5 pack of razors monthly for one dollar per month. Would you be interested in trying this service?
Answer yes or no and explain your answer.
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