Agenda Background Product Market Analysis Financial Strategy Conclusion

Agenda • • • 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 yo : n tio p i r c s sub ytime. y l th it an n o M end can u

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: • • 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 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 • • 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

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 4 x/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 You. Tube 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: • 98 respondents participated answered a total of 15 questions. • responses of our survey were submitted between March 07, 2013 and March 12, 2013. Secondary research • Searching online, the Procter & Gamble annual reports, the Gillette website, journal articles from Factiva and newspaper articles. • Future marketing research includes following existing trends in the razor industry. • Continue to research successful segments of consumers. • Analyze the geographic locations of current customers and connect warmer climates to increased razor blade sales. • 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)

Financial Plan Revenue from the men’s product line is 3 years to pay off our marketing budget for female line.

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/cb 11 -cn 147. html http: //www. gillettevenus. com/en-US/products/collection/embrace/ http: //www. claritas. com/My. Best. Segments/Default. jsp? ID=37&id 1=2000&id 2=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/annualreport 2012/files/PG_2012_Annual. Report. pdf