Why invest in Video Marketing? Ask The Dollar Shave Company

Who would like to invest in a boring product, whose CEO has no management experience, and a company, which has no customers? No one would even think to invest in a thing that already owns dominance by 70% market shares by another company. It may look like the worst deal ever offered to you, but if you know that Dollar Shave Club (DSC) got purchased by Unilever for $1 billion, you start thinking otherwise. If you would have invested in this company, you would have been a part of the jackpot.

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You must be gawping over how would Dollar Shave Company’s Founder Michael Dubin pull this off. How was he able to sell all the products in one single day? How he makes use of his talents as his key to success?

In this article, you will get the answers to all the above questions; analyze the keys to his success and how to make your own business thrive by Michael Dubin’s methods.

Related Article: Adele – An Academy winner & Marketing wizard teaches you marketing.

How the story of the Dollar Shave Club (DSC) began?

 

After his graduation, Michael Dubin thought to move to New York from a small town in Pennsylvania. While moving to New York, he had no job and no plans for what to do. He made living by doing odd jobs and have an aspiration to do comedy. He was also looking for opportunities to get success in comedy.

One day, at a party, during a casual conversation, his father’s friend, Mark Levine, told him about his warehouse filled with 250,000 razors that he acquired from South Korea and asked him if he has any ideas to sell them.

One would have no idea or may just back off from any ideas, but Michael knew he can do it! As a common man, it was always a frowning moment, whenever he went to the grocery store or pharmacy, to buy them.

Why? Because not only they charged $20 for four to five razors, but they were also shelved behind the checkout counter. If you wish to buy that expensive razor, you can’t take it out yourself. You need to ask the salesperson to unlock the rack and give it to you. He always wondered why these razors are so expensive.

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When he got the business opportunity to sell cheap razors, the thought that came into his was to create a subscription, where the customers will get blades automatically at their doorsteps, every month, at a reasonable price – The Dollar Shave Company.

And this is how the story of Dollar Shave Club begins.

The idea that came out of Michael Dubin ‘no-management experienced’ brain:

 

When he started Dollar Shave Club, the main challenge was to compete with big brands like Gillette and Schick, which already dominated the market with more than 70% shares. By his passion for improv comedy, the experience of producing marketing videos, and the motive to tap into potential customers’ emotions, he decided to create a funny launch video. The video was completely irrelevant, which makes it perfect for young men. In the video, Michael was asked if the razors are good, to which he replies, “No, they are *beep*ing great!”

And as he intended it to be, the video went viral. The 250,000 razors which were stuck in Mark’s warehouse were sold out within one day.

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The value of the proposition that was created by the video was so strong that all those potential customers who missed the first batch of razors checked into the waiting list to grab them as soon as they are available. The power of video marketing was powerfully displayed in the case of Dollar Shave Club.

Video marketing always adds up the personal touch in the business. It engages the audience to an extent that they can easily relate to the product you are selling. There are no set rules laid down as to how the videos should be projected in the market because the trends and the audience preferences keep changing constantly.

Did you understand what was his key to gain success in just one day? Let us know about it.

Keys to the Successful Membership of Dollar Shave Club

What were the three things that DSC got right?

1. They gave the audience, their whales, a compelling value proposition. It provided them with both tangible and emotional benefits. Videos have the benefit of connecting the emotional chords through the visual appeal.

• Their product pyramid was established in a way that may increase the lifetime value of the audience.

• They were more focused on the user experience and treated all club members equally.

–        Compelling Value Proposition

You may think that the $1 cost and doorstep delivery of these razors are the prime reason why Dollar Shave Club became successful. Yes, but there is more than just pricing and convenience that made Dollar Shave Club win the competitive race.

When was the last time you had fun being part of the many purchasers? Dollar Shave Club made being a whale, their audience, their club members fun. They knew what their target audience is, and by that, they choose how to do their video marketing.

Their target audience was young males, and they made their branding that way. As mentioned, Michael forte was being a comic. Thus, making funny videos with immature product names became his prime way of marketing the product.

Video marketing is the main attraction in the current scenario. People pay thousands of dollars over their video marketing, but they seldom focus on the content. The humor and the irrelevant stories were a perfect fit for DSC’s target, and they achieved it in the best manner.

It is not always about having a huge budget or spending tons of money in the production of the video but establishing quality content. Content backed up with the right hint of engagement and audience interaction works its magic on the audience without even pushing it hard.

While video marketing, you need to see that you are putting up tangible points while also targeting the audience’s emotions. It should make them feel more confident and appreciated using your product while feeling welcomed.

Related Article: Successful Corporate Film – A 2022 Guide To Video Marketing

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–        Strong Product Pyramid

How much will a company earn by selling a $1 razor? Selling those $1 razors wasn’t their actual plan. It was only to create a customer base, an entry-level offering. Dollar Shave Club then moved their $1 members to progressively higher prices and margins.

DSC has a $5 introductory kit, which has four razors, a handle, and shaving butter. If the customer likes this intro kit, they then get into their full-size restock box. This box ships automatically every three months.

DSC also expanded its stock from just shaving products to shower and oral care items too.

–        Hassle-Free User Experience

Michael wanted the user experience of purchasing from Dollar Shave Club hassle-free, and that is why they invested in a website, that is level 100 of user-friendly. You can get a box for yourself delivered to your doorstep in just two clicks! They also keep optimizing their website so that a visitor can become a member too.

It was a big challenge for Dollar Shave Club to stand in competition with big brands like Gillette. But with a perfect video marketing strategy, they made the impossible possible. They came like an underdog but did not portray themselves as on. Creating the right vision in the customer’s eye will put your brand on a pedestal of relatability.

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 It was too much hard work and dedication, but that paid off with a 1 billion dollar exit! Their videos were getting interacted with because they understood their audience. If you follow these points, you can become successful too.

This is what a good corporate marketing video can do to your company if done right. The idea, the concept, and the engagement of the videos for each brands are subjective, but following a few basic techniques and keeping the content authentic, interesting and original will work in your interest.

If you are thinking of building your empire, contact us- Realm Studios. We love to build films.