ASSIGNMENT: This case illustrates how a Millennial transformed a large, traditional, and somewhat "boring" industry. This project was designed so you can apply the knowledge you have gained throughout the Brand, Customer, Product, and Communications modules. The assignment is to critique the meteoric rise and sale of Dollar Shave Club and how it disrupted an industry of long-standing giants.

You are expected to read the case background and do some external web research to sufficiently answer the questions below under "Assignment Deliverables" and develop a compelling document.

Background: Dollar Shave Club

Dollar Shave Club was founded by Mark Levine and Michael Dubin in 2011. The two met at a party and shared a common frustration with the cost of razor blades. The company launched its website in 2012 and thanks to a long-form commercial on YouTube (1 minute and 33 seconds) that went viral, the company would go on to become the David to Gillette's Goliath.

From 2012 to 2016, Dollar Shave Club (and its competitor Harry's, which started a year later) grabbed 15% of the US razor blade market from Gillette who had 70% of the market. What's more, Gillette, Schick, and others owned a market that was largely unchanged for more than 100 years. Dollar Shave Club disrupted the industry in several ways and in just five years was acquired by Unilever for $1 billion.

The company broke considerable new ground with its approach to razor sales: a direct-to-consumer model starting at just a dollar. The subscription model included different tiers but the value proposition was the same top quality razor blades for a fraction of the price of those at retail stores. The DSC plans ranged from $4 per month for five razors and two blades per razor to six blades and four razors for $10 per month. In addition to razors and blades, the company introduced several men's items including shave butter, wipes, and moisturizer.

Dollar Shave Club procured its razor blades from a South Korean manufacturer and in turn sold them to customers through an eCommerce website. A dramatic departure from the typical manufacturing stance of developing manufacturing and distribution systems. What's more, the company utilized YouTube and its website to deliver witty and comedic messaging for a younger audience. Again, a pioneering effort in advertising and marketing communication, particularly, in an industry known for conservative advertising through traditional channels like broadcast television.

The now famous viral video that put Dollar Shave Club on the map featured Dubin delivering a well-written script replete with the f-word, which exemplified a new kind of razor company with a radical way of doing business and an in-your-face message. Even the video production was done differently than the industry standard it was shot in one day for $4,500.00.

Dollar Shave Club found a way to sell razors and blades for a fraction of the cost of its retail competitors. It also captured an unmet need in an otherwise stodgy, conservative industry making it much more convenient for consumers to procure razors and blades by having them delivered to their home. And finally, DSC upped the ante by delivering resonant messaging to their target market through their preferred medium video.

Background: Dollar Shave Club Videos

Razors: (1:33)

https://www.youtube.com/watch?v=ZUG9qYTJMsI

Podcast: (4:06)

https://www.youtube.com/watch?v=sNTb_O51bAc

CEO News Interview: (2:35)

https://www.youtube.com/watch?v=3WjriDkVIbw

Overview/History Mini-Documentary: (4:35)

https://www.youtube.com/watch?v=CCftynWsEuQ&list=PLN-kjkjkOMe778N5ahRhI3XBJYHDQjSIU&index=4

Case Questions to Ponder

• What contributed to Dollar Shave Club's success?

• This case seems to emphasize each of the 4 P's. Do you agree? Why or why not?

• How much of it was about the product?

• How important was the messaging?

• Think about the time period was this a factor? If so, why or why not?

• What are the characteristics of DSC's primary target market?

• Razors and razor blades were traditionally "retail" products why did DSC's model work?

Assignment Deliverables Complete one of the following.

• MS Word document (2 pages maximum: double-spaced 12-point Times New Roman font, 1" margins all around) that includes:
  • Situationanalysis background, trends, environment, etc.

• Valueproposition what was DSC's value proposition?
• Keyinsights why was DSC so successful? Be specific.
• Otheroutcomes consider the product, target market, time period, etc. what are some other potential outcomes that DSC could have experienced? Be specific.

Sources

https://en.wikipedia.org/wiki/Dollar_Shave_Club

https://www.nytimes.com/2020/01/23/business/Billion-Dollar-Brands.html

https://www.inc.com/diana-ransom/dollar-shave-club-michael-dubin-omnichannel-direct-to-consumer-branding.html