In 2011, the company Dollar Shave Club was launched. It had an impact on the male grooming business in ways that had not been seen in decades. For years, Gillette, which Procter & Gamble purchased in 2005, dominated the industry. Gillette was founded over one hundred years ago and paved the way for the safety razor business as men moved away from the often scary straight razor blade to one with a handle in which individual blades could be inserted and removed when dull. Dollar Shave Club, on the other hand, with its quirky ads and reliance on social media, has caused Gillette to take notice. Dollar Shave Club became a market disrupter when it revolutionized how men buy razors. Using a subscription model, the company mails razors to consumers for a monthly fee that varies between $1 and $9, depending on the level the consumer chooses.67 Male grooming is an activity that is not particularly noteworthy, but men spend billions of dollars each year on razors, shaving creams and gels, after-shave lotions, and facial hair trimmers. The design of the razor has remained basically unchanged in the century it has existed. But how men buy their grooming tools has changed. Before, consumers went to a store, purchased a razor, used it until it was no longer sharp, and then acquired another. When disposable blades entered the market, it made shaving even more convenient because users did not have to remove a blade from the handle and insert a new one—when the blade becomes dull on a disposable razor, the entire item, including the handle, is thrown away. Assess Gillette’s plan for using a texting model to compete with Dollar Shave Club’s subscription model. How was Gillette’s move an effective strategic plan?

1. Would you characterize Gillette’s new texting model with Gillette on Demand a standing plan or a single use plan? Why?

2. If Dollar Shave Club also introduces a texting model, how should Gillette revise its plans?