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Dollar Shave Club

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Gillette is recognized nationally for it's reputable success in the razor and blade industry, but online competitors' are slowly entering the market. In a society where convenience, immediate results, and impatience is typical, the online industry is rapidly expanding. Consumers were once skeptical about entering personal information, such as credit card and address, due to high risks of identity theft; however, the implementation of safety regulations and encrypted websites, are reassuring and have boosted retail sales. The Dollar Shave Club has entered the shaving industry and Gillette management is concerned about the low prices advertised and the potential loss of consumers. Utilizing the four basic elements of marketing, following is a basic plan that could be utilized to sell Gillette's razors and blades via an online subscription model. …show more content…

The online subscription model would describe the benefits of purchasing a Gillette subscription, which details the specifications of the product, statistical data which displays proven results, and the benefits of joining a company that has developed several razor models (Winzar, 1992, pgs.259-264) . Next, with the pricing strategy, I would not introduce the product at a lower cost than the competitor, primarily because of the unknown quality of their product. If they are selling mediocre products at a fraction of the cost, consumers will assume that Gillette is introducing a product that is not of its original brand, which is known to be a quality commodity. The pricing objective of market demand, would prove beneficial to an online subscription model, as prices are determined based on customers expectations, which is a situational based approach (Ferrell & Hartline,

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