It’s officially “Movember” and the start of that month when strange outcroppings pop up on the upper lip of males, all for a good cause – raising awareness for cancer research. It can be a tough road for some follicle challenged guys, and even tougher for the partners of those blessed with abundant facial growth abilities. The only thing for certain is the likelihood (lets hope!) of most of these moustaches achieving only temporary status, and a big shave being planned at the end of the month.
What better way to prepare for the day, then to find the ultimate and cheap way to take it off, and keep it off throughout the year. Dollar Shave Club is a very cool business model. Click here for a 1-minute video about them that will leave you laughing and pondering – why didn’t I think of that! www.dollarshaveclub.com
Dollar Shave has challenged the entire accepted business model for this category. Razors are obviously sourced inexpensively and then sold on mass at ridiculously low prices as a monthly supply. They’re purchased online and distributed by mail. Promotion uses an irreverent online viral social media campaign that is funny, totally shareable, cheeky, and tips its hat to American patriotism. They’ve recently ventured into strategic TV and radio buys to get further reach into their target market (which for all those doubters out there thinking those media vehicles are dying, take note). They’ve only been in business for just short of a year, but the positioning and marketing behind the idea is brilliant. Monthly razor purchases are packaged in 3 categories ($1, $6, $9 US) – just like a cell phone plan, graphically simple and easy to understand. Pricing in Canada starts at $3.50/mo and $4/mo in Australia. The order button isn’t the classic “order now” it’s simply “DO IT” which totally appeals to their target market keeping it simple and fun. They’ve successfully leveraged the skepticism around high prices razors and are tapping into the inauthentic approach of the big guys: Gillette, Schick and Bic who seem only to be able to grab market share from each other by adding another blade or giving it a pivoting handle or vibrating head and charging a mint for it. Considering the men’s shaving category is worth $13 billion, I’d say this upstart is onto something. And ladies – there’s a closet market here for you too. Do you really need to pay $12 for that 5-blade razor to have it in pink?
What do you think? Is this a great idea? What other category is ripe for David attacking the Goliath?