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Authors:
Published by:
Amity Research Centers (2017)
Length:
11 pages
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Abstract

Dollar Shave Club (DSC), the monthly subscription business model, launched in 2012, was a social marketing as well as an entrepreneurial success. Its 'low-price, direct-sales model' disrupted the industry's move to 'high-tech, costly razors', which were sold through traditional retailers. The Founder, Michael Dubin's guerrilla YouTube marketing campaign with 'its schlocky, slapstick brand of humor' also became a viral success. In 2016, the DSC was bought by Unilever for USD1 billion in a move to enter the rapidly growing online market. Unilever, had in the past been adopting the traditional model of selling through retailers. With the emergence of e-Commerce and players such as the DSC, customers could buy directly from the manufacturers, thus eliminating the need for a third party. With this acquisition, Unilever hopes to gain insights into this emerging business model and adopt it for its own products. Experts believed that the move created a milestone in this industry and would change the traditional model of selling. How the companies involved, reap the rewards of this innovative business model remained to be seen. This case has been featured on our website, click to view the article.

Topics

Dollar Shave Club; Unilever; P&G; Gillette; Gillette Shave Club; Business model; Sales; Retailers; Distribution; e-Commerce; Subscription based model; Consumer behaviour; Competition; Mergers & acquisitions
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2016

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