Dollar Shave Club PowerPoint

advertisement

Dollar Shave

Club

By Josh Kern, Valerie Dominguez, Chris

Phelps and Monique Yniguez

Background

Product

Market Analysis

Financial Strategy

Conclusion

Agenda

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 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 (Josh)

High Prices

Laser Removal

Increasing Gas Prices

The Product

Three 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)

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.

● Geographics

California

Suburban Areas

Large College

Campuses 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

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 Competition

whoever 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 Communications

The 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 Communication

Our 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-businessupdate.html

http://www.dollarshaveclub.com/about-us

Kotler, Phillip, and Gary Armstrong. Principles of Marketing. 13. New Jersey: Pearson, 2012.

Download