Marketing Strategy – The Dollar Shave Club

The Dollar Shave Club is a really innovative concept. It is a great example of how to hit at a monopoly and get around a distribution channel.

The ad has over 4 million hits on youtube.com and counting.

Key lessons from the DSC (Dollar Shave Club).

1. New channel to consumer. It is able to break in to a market long dominated by the big boys, e.g Gillette and Schick. It achieves this via distribution online – direct to the consumer.

2. Innovative marketing. The use of a youtube video and social media has increased awareness of the DSC very rapidly at a relatively low cost. The advantage of social media sharing is that it normally comes from a trusted source which we are likelier to listen to.

3. Understand the consumer. The DSC ad shows that it really understands the consumer. Shaving is a daily affair. It is also something that people rarely see – as such a expensive or designer razor is unlikely to excite the consumer. It has shaped its business model on the average lazy guy by offering convenience and a decent product.

4. Segment your customer. While it’s called the Dollar Shave Club, the price goes up to USD9/month. With 3 types of razors, it is able to hit the various types of consumer and hopefully retain them.

These lessons are applicable for any new business trying to enter a business dominated by a monopoly.

 

 

 

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