Agenda

2. Agenda • Background • Product • Market Analysis • Financial Strategy • Conclusion

3. 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

4. VIDEO Dollar Shave Club Video

5. Opportunity Statistics • 93% of women have not heard of Dollar Shave Club • 85% of women would be willing to try a different brand

6. Market Trends • High Prices • Laser Removal • Increasing Gas Prices

7. Product Three Women’s Razors

8. Product Monthly subscription: you can end it anytime.

9. 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 shavers

10. 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)

11. Market Growth • Hair Removal Industry • Expected to grow to $33.3 billion by 2015 • 2011- sales increased 5% • earnings increased 10% • Market Size • 100,000,000 women in the US • 94% of women prefer razors

12. 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.

13. Target Market: Geographics • California • Suburban Areas • Large College • Campuses in Southern California • Close to main location in Santa Monica

14. 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

15. Target Market: Psychographics • Use razors • Wear shorts, skirts, dresses.. • Lead busy lives • Have children • No brand loyalty • Open to online subscriptions

16. Marketing Objective • Awareness • Affordability • Convenience $ $ $

17. 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.

18. Product Position • "More for Less” • More convenient • Same Quality as competitors

19. Competition • P& G: Gillette/Venus • Schick • Bic • Remington • Braun • Laser Hair removal • Spa and salons that offer waxing

20. Competition • P& G: Gillette/Venus • Schick • Bic • Remington • Braun • Laser Hair removal • Spa and salons that offer waxing

21. SWOT

22. Marketing Mix: Pricing • 3 similar price levels • Humble Twin/ the Silky Twin 1$ • The 4x/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

23. Marketing Mix: Promotion • MONIQUE

24. 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 YouTube videos • Host promotional events on college campuses to encourage them to sign up

25. Marketing Mix: Place Close distribution channels with suppliers and intermediaries keep prices low

26. Marketing Organization Director ofMarketing Social Media Intern Graphic Designer Street Team Webmaster

27. Marketing Communication Primary research survey: • 98 respondents participated and 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.

28. 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 ($1,000,000)

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

30. Conclusion

31. Conclusion

32. 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/cb11-cn147.html http://www.gillettevenus.com/en-US/products/collection/embrace/ http://www.claritas.com/MyBestSegments/Default.jsp?ID=37&id1=2000&id2=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/annualreport2012/files/PG_2012_AnnualReport.pdf