Case Study: Marketing Strategy Comparison
- Updated: 02/12/2024
- Published: 01/04/2024
- 15 minutes read
Case Study:
Marketing Strategy Comparison
- Updated: 02/12/2024
- Published: 01/04/2024
- 15 minutes read
Dollar Shave Club vs Gillete - How Copy Makes a Brand Stand Out
Today, we are comparing two seemingly identical companies – Dollar Shave Club vs Gillette. Both companies are well-renowned for their solid products in men’s care. But just 10 years ago, that wasn’t the case. Gillette was a leader with over 100 years long history and 80% market participation. However, everything changed back in 2011 when Dollar Shave Club was founded.
So, what was the main problem that was a core reason for creating a Dollar Shave Club with a $25,000 investment? The razors were too expensive, with low or no focus on clients. DSC detected the problem and created a business model to deliver quality and affordable razors every month focused on fun purchasing.
In this case study, we will analyze how, through copywriting, DSC had an entirely different understanding of their ideal customer, and it worked! Before we dig into their advertising models, in the next paragraph, we will discuss both companies, their beginnings, and their results.
Dollar Shave Club vs Gillette: at a Glance
Founded by entrepreneurs Mark Levine and Michael Dubin in 2011. Their model was from the beginning direct to consumer (D2C). They started to grow fast and soon became a threat to Gillette. In 2015, they were sued by Gillette for a billion-dollar due to the patented technology. However, the lawsuit was later dismissed, and soon after that, in 2016, they were acquired by Unilever for $1 billion in cash. They have around 5 million subscribers, and currently, they control less than 50% of the market, with a prediction they will soon pass Gillette.
Gillette is one of the largest mass consumer brands and a company with high repeat business thanks to its ‘closed’ blade system (the blades only work with its own razors). King C. Gillette founded the Gillette Company in 1901 as a safety razor manufacturer. In January 2005, Procter & Gamble announced plans to merge with the Gillette Company, and soon they became part of them. For a century they were controlled by around 90%, until 2011 when Dollar Shave Club was founded. Currently, they control around 50% of the market and are trying to be back as a leader.
How did a start-up company, in less than 9 years, manage to overcome gigantic Gillette?
Subscription model
From the beginning of their business, DSC offered a subscription model as known as Razor-as-a-service. Back in 2011, the subscription model of doing business in the razor market did not exist. Facing the problem men have Dollar Shave Club created a modified business model that will put customers in the spotlight – treat them as a family.
Dubin realized that most people would come once, buy their supplies, and disappear – he wanted to create a loyal customer. So, they decided to test a subscription model to address an important metric known as customer acquisition cost or “CAC.
DSC knew their targeted group was frustrated with purchasing expensive razors sporadically. They came up with a unique business model where they delivered quality and affordable razors every month. By creating them as a part of the group with the slogan “Join the club”, they praised them and created extra value for them by combining product and customer care. By offering a razor at a reasonable price to people, with a focus on differences of the people around the world they created a movement.
What exactly did they offer?
There are three basic subscription options:
The
Humble Twin
5 Cartridges per Month
A great basic shaver, for guys who dig simplicity & precision
2 stainless-steel blades
Aloe Vera strip moisturizes the skin
The
4X
4 Cartridges per Month
The last razor you’ll ever need; a gentle shave in a single stroke
4 Stainless-steel blades
Wide, open-back for fast, easy rinse
The
Executive
3 Cartridges per Month
The final frontier; it’s like a personal assistant for your face
6 stainless-steel blades
Aloe, Vitamin E, and Lavender Lubricating Strip
- New subscribers get a free handle in their first shipment,
- Discounts to team members
- Members are free to change their subscription specifics or cancel the membership at any time
Gillette’s response
Gillette was very calm when DSC started its campaigns and rise overall. They were almost sure that nothing could rock their position, thus they continued to present their razors the same way with little or no changes. For a century, their razors have been a synonym for quality – and quality comes with a price. The price was $20 per month, and since they did not have competitors, they were focusing on mass sales, ignoring other forms of innovation but product – new dimensions, new colors.
However, the customers demanded more value, they wanted the quality and focus on their needs combined, not just a product.
Upon seeing DSC’s subscription-based business model, they launched Gillette Club. For $5 a month, they will deliver to your home all your shaving requirements. Gillette’s proposal has been formulated via an agreement with local online mass consumer retailers (i.e. currently in Spain, with Ulabox) who are responsible for the delivery of Gillette Club’s shaving products to the home. Gillette’s idea is to respond in the US and to use this model to out-maneuver Dollar Shave Club’s international expansion plans.
They offered 3 subscription options:
Similar to DSC you may say? It was, but the prices were higher and it did not create any impact on increasing the sales.
“Already seen”, “Copy-cats!” were just some of the comments. 6 years later, they offered almost the same packages DSC has.
So how does DSC manage to create so strong brand image that even Gillette tried to copy?
In this part of the case study, we will analyze how, through storytelling, DSC had an entirely different understanding of their ideal customer, and it worked! So, let’s dive into it in the next chapter.
Our Blades Are F***ing Great
In 2012, DSC published a video that boost their business, but let’s see what storytelling they had to attract more customers.
The video that rocket them was under the campaign “Our Blades Are F***ing Great”
The video campaign only last 1:34, but that was enough to explain why they are better than the competition.
So let’s dig into understanding the video.
The main character is the founder himself. In 2011, having a founder as the main character wasn’t common. This video is primarily different due to that. The founder himself is directly talking to you – eye contact.
Throughout the whole video, his eyes are on you, he never turns his head while explaining what they are doing and offering directly. It seems like you are in the same room, and he is having a pitch. This commercial tone is humorous while addressing the problem and giving the solution.
Now, we will explain the copy from the ad and how you get all the information you need in the first 10 seconds; in the remaining 83 seconds, you get the background. He is talking directly to normal people, not celebrities, not athletes but people. He is telling a story that people can relate to – by creating emotions.
In the first 6 seconds, he repeats the company’s website 2 times, so the audience can remember it: “Hi, I’m Mike, founder of DollarShaveClub.com. What is DollarShaveClub.com?
He communicates the main value in the first 10 seconds: “For $1 a month, we send high-quality razors right to your door.” After that, he packs a punch(line): “Are our blades good? No. Our blades are f***ing great.”
Then, he continues to share the characteristics of the razors with the comparison that they are so soft even toddlers could use them. A bit of humor in storytelling creates emotions, and it’s funny to the audience who are glued to the screen.
Continuing with the video he even slams competitors by saying “And do you like spending 20 a month on brand name razors? He then points out that $19 of $20, which was the cost of the Gillette razor, goes to Roger Federer since at that time Gillette took Federer as a brand ambassador. Observing the whole video, Mark was directly speaking to regular everyday people – he was promoting razors to all people, not just athletes as was the case with Gillette.
Continuing with the video, he mentions he even hired people, so they can provide for their own families. He spoke the message that they are essentially a small company thus they offer more intimate customer relationships.
The video ends in a humorous manner when he gives a solution for saving a lot on razors and mentions once again his website.
And what was the audience’s reaction?
They were having so many orders in 48 hours – approx. 30 thousand of them – that they were out of stock.
Roger Federer
On the other hand, for decades Gillette has been telling a different story and its campaigns are focusing on people who are in norms of world standards perfect, successful, and limited. They were starting successful people as role models.
In the next paragraph, we will discuss their advertising video that came out in 2012th. Let’s dig into their copy and storytelling a bit more.
The video starts with a man doing his morning routine – shaving. The narrator then starts storytelling as a person who is behind – not directly talking to a customer. The commercial praises people who are prepared and ready, in this case before the match. The concept of the commercial is praising people who do not leave anything to chance, and who are powerful and successful. As you can see differences are many, but that kind of storytelling they had for decades. The crucial moment for them was the campaign that was most talked about in 2019 when they aired the campaign “We Believe: The Best Men Can Be | Gillette”.
What happened in 2019 that flipped the market dominance?
Written below we will analyze changes if any, both companies have made in their copy 7 years after the above videos were aired.
"Dad Bod"
DSC continues with its strategy of praising regular people with imperfect bodies. That was the case in 2019 as well, with the campaign “Dad Bod” that was aired on the 4th of June.
The campaign praises man’s body, more weight, less weight, elderly, young, etc. They are all dads, and even if they do not have perfect body measures – they are valued. Their slogan for this campaign is “Whatever your bod, welcome to the club!”. Dollar Shave Club was able to retain its original brand positioning of “fun”, “no-BS”, “relatable”, and “unapologetically truthful” company. And they keep consistently cultivating these brand associations even though they are now part of Unilever.
We Believe: The Best Men Can Be
Seeing the massive success of advertising DSC had, in 2019 Gillette used a new approach in its storytelling, and a video under the name “We Believe: The Best Men Can Be” aired in January.
The video, directed by Kim Gehrig, includes news headlines about the #MeToo movement and encourages men to treat women with respect and to intervene when someone isn’t a good role model.
Till January 2022, this video was watched more than 37 million times and still is a topic people speak about. This number is impressive, I must say, so what went wrong?
Before we get to the public’s reaction, firstly we will summarize the plot.
Today, in the 21st century we see social problems everywhere, and Gillette wanted to address them with this campaign. Their slogan was “We Believe: The Best Men Can Be” and follows problems people face.
In the first 5 seconds of the video, they were focusing on sexual harassment, and MeToo movement, and masculinity. The plot continues by bringing to the surface social media mobbing, boys are facing. The next scene shows a mother who hugs a child, who is based on the scenario bullied. If we take a closer look, they represented a woman, a mother as a protector – they are praising her. The story continues with scenes of women’s harassment – representation of the women as an object and men as a predator. They are again turning back to boys who are fighting with the slogan “ Boys will be boys”, then there is a turnover. By the end of the video, there are scenes of others explaining the behavior is wrong and should be changed. The video ends with the slogan “ Because the boys watching today will be the men of tomorrow.” Gillette concludes it by calling for and showing images of men holding other men accountable and emphasizing that the boys of today will be the men of tomorrow.
Public Reaction
The public was split, some were praising the commercial, and others were calling for a boycott. Here are some:
Why was the public upset?
Gillette’s ad plays on the feeling that men want to be better but don’t know -how. Also, the video is stereotyping men – all they do is fight, barbecue, and harass women.
People were leaving comments that they are not toxic, they are good human beings, and their friends are good men as well.
One thing is certain, in the last couple of years, this ad is one of the most talked about. It might be their goal as well.
According to P&G CFO Jon Moeller, it didn’t as he told CNN Business.
But is this true?
We will use their public reports to see results after the ad with a note that the 2019 numbers are for the 2019 fiscal year, which started on Jul 1, 2018, and ended on Jun 30, 2019. Since the ad only happened mid-FY 2019, in January, its impact was only felt for roughly 1/2 of the fiscal year. This means that the actual impact over a whole year, says FY2020, might actually be twice as big: 10 p.p. and roughly 15% relative decline.
Here is a graphic of the relative yearly change of their market share percentage over the years:
The result of the ad was buzz score plummeted from 5.8 to -3.4 in a week after the campaign aired.
While they were facing backlash, angry public and trying to save their image, DSC answered the public in its own manner – through humor:
The whole idea they had addressing the social problems was good, but its result wasn’t.
What would we do?
We would instead empower and praise men, not generalize. Our focus would also be on empowering women in different ways—not just presenting them as objects. What do I mean by that?
- Creating scenes of men who are good husbands, fathers, brothers, and friends and not bringing out bad characteristics.
- Make the same price for women’s and men’s razors – hypocritical indeed when they are discouraging sexism in the video, but charging razors 20% higher for women
- Empower women by donating to shelters and creating a movement
Dollar Shave Club's Marketing Success: Innovating Copywriting and Customer Focus
In this case study, we set out to explore how Dollar Shave Club managed to take away a large chunk of the market from Gillette over the years. DSC’s campaign was an instant success; their tone was unseen in their respective industry, and the way they communicated with their ideal customer helped them to establish a strong presence. We believe the reason why DSC was able to compete with a giant like Gillette was because of their innovative marketing approach, more precisely to copywriting and advertising. Through this comparison, we wanted to make sure that with innovation and creativity, understanding the customer, and molding a fit for them (backed by a good quality product), a newcomer was able to seize an established player’s considerable market share. And there lies the power of sound, well-crafted copy. No matter how big you are, if you do not understand your customers’ needs, you can quickly lose your lead in the market. Thus this case study is focused on startups, who are beginning with their business and have giants as competitors. Pay attention to customers’ needs, modify brand strategy, relate to your customers through copy, answer their needs, and it will surely rocket you to the top.