Tuesday, January 28, 2014

Dollar Shave Club Taking Sales from Bigger Named Brands Through Viral Videos

We have all seen how handheld razors have changed over the years. I remember when the 3rd, 4th and 5th blades were added to razors. Companies tout their added benefits, like aloe strips and even a vibration mode to get the closest possible shave, to sway buyers. Using big name actors in advertising and naming razors like “Mach-3” and “Fusion ProGlide” are tactics used to entice men to think their razor is the best. But what happens when men like the look of not shaving? This is a big trend for young men in developed countries. Gillette and Schick’s handheld razor sales have nose-dived in this last year. Bloomberg BusinessWeek credits hipsters — whom thrive off of the unshaven, just rolled-out-of-bed look — with starting this trend.

Dollar Shave Club has started to carve out a little piece of the market with their witty ad campaigns, explaining how their service works and what you’ll receive. The idea is that you spend as little as a single dollar a month plus shipping and receive quality, sharp razor blades on your doorstep. With the price difference, it seems hard not to give it a try. So while big name brands are struggling to sell product, this company is actually gaining market share.



This company sells exclusively to men, showcasing three kinds of razors, shaving butter and personal wipes. That’s it! Three possible products shipped to your door. This small company is using viral videos to reach their market — men college age to probably late 30s — whom already spend a lot of time online looking at humorous videos. This ad actually markets to the audience that Gillette and Schick are losing. Also this audience is used to buying online and enjoying the convenience of receiving products at their doorstep. By having a monthly subscription, the Dollar Shave Club keeps their customer base.  I think this is a smart way to advertising, while keeping production costs low for a start up company.

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