1.Resolution Proposal Andr Campino | Antonia Radi | Cleide Azevedo | Miguel Sade | Soraia Vale

2. 1. What is DSC doing to the big players that have been in the marketfor ages? 3. We are doomed!!!I am challenging the big players by offering a subscription model where customers would pay a lower price for razors with equivalent quality! This is a Blue Ocean approach into a Red Ocean Market. 4. 2. Given the information on DSC and the market, develop a Dynamic SWOT analysis for the company. 5. Strengths The DSCs razors combine quality and affordability in the same product; The virality of their first video has given them a lot of online popularity and loyalty from their members;Their online approach (based on Youtube videos and social media pages) is less expensive than traditional mass marketing efforts and it allows them to reach more people all around the world; The use of an online point of sale allows lowering operating costs. Their website is very intuitive and user-friendly. The subscription process only has 4 steps and a live chat for any doubts. You can upgrade, downgrade or cancel your membership at anytime.Weaknesses High dependency on the trade agreements with China and South Korea. If something went wrong, DSC would be without a supplier and out of business;DSC doesnt accept Paypal, which is widely regarded as one of the safest online payment methods; Primarily focused on the male audience, as Dollar Shave Club does not currently offer any product for the female segment; The lack of offline presence may lead elder men to not acknowledge the existence of their value proposition. 6. OpportunitiesThreatsThe demand for e-commerce is increasing as people prefer to buy things from the comfort of their homes;The existence of strong and well established companies in the mens razor industry for centuries makes the battle for market share look impossible to new entrants;The global financial crisis has made the consumers more sensible about prices and consequently, looking to buy cheaper products or better value for money; The womens razor blades market as they are also faced with a shaving necessity; Nowadays, men are using grooming products more regularly as they are starting to care more about the way they look.Private labels have achieved further penetration in both North America and Western Europe; Electric shaving is being seen as a better option to wet shaving; Men are shaving less as the stubbly and unshaven look is seen as the norm, and due to this fact the industry has been affected. 7. Dynamic SWOT Analysis Strengths & Opportunities The DSCs razors combine quality and affordability in the same product, in addition acquired low operating costs is possible to provide to the market what costumers, actually want, that means buy cheaper products or better value for money, additionally, men grooming industry is increasing, as an advice it may be the opportunity to DSC to expand its ranges of product; Their online approach (based on Youtube videos and social media pages) allows them to reach more people all around the world, and since the demand e-commerce is increasing, this communication strategy may be more enforced in order to obtain online popularity and loyalty from their membersStrengths & Threats The existence of strong and well established companies in the mens razor industry enforce the DSC lack of offline presence; Furthermore the alternatives of shaving are being seen as the affected the Dollar Shave Club business, thus, as referred before to minimize this impact, the DSC should invest more on their products offering more options and also invest on female industry. 8. Dynamic SWOT Analysis Weaknesses & Opportunities DSC should diversify the modes of payment, since the demand for e-commerce is increasing, accepting Paypal method, can be the key to earn more profit, and this fact may allow more costumers;DSC should invest in women grooming, once women still faced the necessity of shaving themselves, although women groomings market may present more barriers to the new entrants, consumers are more attended to the online approach, in addition, they primate better value for money; To minimize the lack of offline presence, Dollar Shave Club, should invest more in communication, enforcing the brand awareness.Weaknesses & Threats The existence of strong and well established companies in the mens razor industry, is negative factor in this industry, as the DSC is considered a new entrant in this market, but, seeing their potential on generating buzz online, and the fact that people become more adapted to the e-Commerce phenomenon, this may be the key element to the online approach, promoting the brand, since the main competitors do not practice this type of strategy; Seeing what market is missing and what are the new trends in mens grooming, for example, electric shaving is being seen as a better option to wet shaving, DSC must invest on expanding its ranges products, based on its strength of having low operating costs. 9. 3. How do you define DSC segmentation, target and positioning? a. Position DSC in a Perceptual Mapagainst Gilette and Schick. 10. GeographicDemographicSegmentationCriteriaAgeTarget From 18 to 50 years old Generations X and YGender MaleIncome Low and medium incomesRegion U.S.A., Canada or AustraliaUrban Metropolitan and urban areas with a higher density of population 11. CriteriaTargetLifestyle PsycographicSegmentation Men that value their time and energy to do the things they love. They can be found in online social communities, where they socialize and exchange information and opinions. They also like good quality products in general but that dont like to shop and pay high prices, so they are not willing to spend money without a good reasonPersonality Modern, part of online communities, critical and sure of what he needs. Likes to share information and to be always updatedMotives A man that is always trying to improve his life and that is not afraid to experience new things. He knows what he wants and what to do to achieve itAttributes Likes to have the power of information in his hands and to make good choices. Doesnt want to make much effort in getting what he needs 12. CriteriaTargetBenefit expectations BehavioralSegmentation Enjoys taking care of himself and to look good. He intends to have good and reliable razor blades at a fair and cheaper price and without the trouble of having to go to a shopping mall to get it.Brand Loyalty He likes to experiment, but he knows what he wants and what his best for him, remaining with the brand that most fulfill his needsVolume usage End usage Price sensivity Men that only need one good razor blade per week Uses razor blades in all kind of occasions independent of the seasons. A man that likes to have a clean and good look A man who wants to save money 13. PositioningIDENTIFICATIONDIFFERENTIATIONDollar Shave Club positions its products in a Dollar Shave Club is a player in the shaving more for less category. Consumers pay a fair market, being the razor blades its biggest sector. price for what they need.Golden Triangle of Positioning Consumers Expectations Reliable and quality products Save Time and Money To look goodPositioning of competing products Higher prices Global Brands Mass media promotionPotencial trumps of the product Cheap and fair prices Delivery each month 14. 4. Reflect about DSC positioning and strategy. Where should they go next? Give practical examples, using the Ansoff Matrix to justify your choice. 15. Hey Alejandro !! Where should we go next ??MikeI think we should make an Ansoff Matrix first 16. Ansoff Matrix Market PenetrationProduct DevelopmentProduct Portfolio ExpansionMarket DevelopmentDollar Shave Club for ladies Euro Shave ClubDiversification 17. 5. DSC entered the wipes market, with the launch of butt wipes for men. Discuss the advantages anddisadvantages of this new product in DSC portfolio. 18. Advantages With a significantly portion of their customers tryingDisadvantages Launching a product that doesnt belong to DSCs core business may result in a failure;One Wipe Charlies, it will definitely result in a growth of DSC's sales/revenues; Possible loss of the focus with shaving related products;Introducing One Wipe Charlies may result in theretention of new clients; significantly cheaper;Investing in a new product will result in an increase of DSC's levels of awareness;Buttwipes are a non-essential good; Toilet paper isButtwipes popularity is still yet to be provedThe launch of this product will help Dollar Shave Club(according to a DSC study only 16% of men useunderstand if they really can bet on other bathroombuttwipes instead of toilet paper).products that are not related with shaving. 19. 6. Do you think that DSC can be considered as a tribal brand? Justifyyour answer. 20. YES !TRIBAL BRAND a brand that is able to gather a network of people who are linked by a shared belief. Not only are those people consumers, as they are also believers and promoters of the brand.Perceived brand authenticityCostumers got the insight about the main message: Shaving should be simple.. Men realized that they do not really need such advanced tools only to shave themselves in their daily life;Experiences felt through interaction with the brand There is an active interaction between the DSC and its consumers, improved by the social media tools;Collective sense of belonging within a group Members feel the main message of the Brand, thinking that the DSC really perceived what is missing in the market, and what men really want: cheaper 21. 7. Which is the variable (or variables) of the Marketing-Mix that you believe ismore important for Dollar Shave Club? 22. Distributio . 23. Thank you for your attention!