Michael Dubin, founder and CEO of DSC, identified three major reasons for Gillete’s failure.
First, Gillette over-exploited the razor blade model and earned more profits from blades, which made the customer unhappy.to know about razor blade model and GilletteCheck out this video,
Video Courtesy: Youtube
Second, Gillete went on making high-quality razors that had negligible effect on the shaving experience.
To run advertisements for big sportspeople like Messi and Roger Federer, the company spent 750 million dollars in one year on advertisements. Michael identified the pain points of the customer segment and learned that the customers do not want highly efficient razors. He created a YouTube video ad, and within 2 days, he got millions of subscribers to the DSCC model of the razor at a dollar per month.Watch it here,
Video Courtesy: Dollar Shave ClubThe idea of DSC went super viral, and many people were so happy about the experience of using DSC that they spread the word about it.
The ads for DSC were humorous and delightful. To strengthen their relationship, they even send gift cards to customers.The company got acquired by Uniliver for $1 billion in just 4 years.
