Authenticity in Advertising: How Dollar Shave Club is Winning the Millennial Market

"We're living in what I like to call the 'Thank You Economy,' because only the companies that can figure out how to mind their manners in a very old-fashioned way - and do it authentically - are going to have a prayer of competing." -Gary Vaynerchuk, The Thank You Economy

This advertisement convinced me to buy its product in less than 5 days:

I am 23 years old and female. I officially fit into the "millennial generation," but with a bit of a sentimental nod towards my predecessors, Generation X. I consider myself a feminist, and I do not like when companies try to sell me hot pink razors named after female goddesses with commercials featuring Victoria Secret models. In fact, I really hate it.

The key to this advertisement and my decision to buy was one word: authenticity. This advertisement spoke to me, directly to me, appealing to me visually, psychologically, and in a medium where I (regrettably) spend an exorbitant amount of time - Facebook. While social media marketing is seen as "the way of the future" for targeting millennial buyers, simply placing an advertisement on a medium frequented by the millennial generation and targeting with Facebook's algorithms is not enough to win new millennial buyers. There is an extra effort that needs to go into this advertising to make the message feel authentic to its buyers, and in my opinion, Dollar Shave Club is (so far) winning the millennial market much more effectively than its competition.

In case you were unaware, there is currently an advertising war going on in the shaving razor industry. The players: the "old" brands and large company players (Proctor & Gamble, owner of Gillette) and Energizer Holdings (owner of the Bic brand) versus newcomers like Dollar Shave Club who are trying to shift consumer expectations about how, where and when they buy their razors. At this point, there is no question that Dollar Shave Club was able to disrupt the market, enlisting 12,000 new customers in the first two days its e-doors were open. The big brands are starting to feel the heat, and attempting to reach out to consumers that may have been alienated by past marketing failures - not just their failures in advertising, but also failures in product placement and quality. But at this point, is it too little, too late?

Compare these three shaving razor commercials, each produced 2014-2015, from Dollar Shave Club, Gillette, and Idea Village:

[Dollar Shave Club, 2014]

In its 2014 commercial, Dollar Shave Club puts itself directly into the mind of the consumer and forces the consumer to question why they buy razors they way they do. Then, Dollar Shave Club adds a dab of the absurd into the recipe. The end result is a commercial that delivers the type of ironic humor that millennials (and even Generation X-ers) crave, and an exaggerated humorous situation everyone that has difficultly buying a razor can relate to.

[Gillette Shave Club, 2015]

Gillette, on the other hand, attempts to follow the same recipe as Dollar Shave Club, but the result is found wanting, to say the least. This television advertisement simply comes off flat and not funny. It seems that a sales guys busting into your bathroom while you are shaving just is not as hilarious as it used to be (and, honestly, it was never funny or absurd to millennials to begin with). Gillette's lacking key ingredient? Authenticity. 

[Idea Village, 2014]

And then, there is the Microtouch "Tough Blades" sold by Idea Village, who markets themselves as the "As Seen on TV Leaders." They also are attempting to capitalize on this "advertising war" against the big brands in shaving razors. Idea Village, on the other hand, seems to have decided to forgo all efforts of selling authentically. The advertisement's goal is to get you to "buy now!" I mean, if these razors are good enough for Brett Farve, they are obviously good enough for you. The advertisement follows the cliche infomercial model of success, with celebrity endorsement as an added bonus.

This advertisement obviously does not target millennials. This commercial, compared to the others, gives a great contrast to the new versus old advertising models. The older generations, the Baby Boomers and the Silent Generation, still respond to this kind of advertising, and it will continue to be around as long as it continues to work. But any millennial viewing this advertisement would simply not take it seriously; this is the advertising of the past, the advertising that causes our grandparents to spend our entire inheritance during late night television.

While the message is a key part of the advertising war, it is not the only component that weighs into the minds of consumers as they make their buying decision. In this case, while I am not usually a proponent of the traditional 4 P's as a marketing model, comparing the three companies in these four different areas very much elucidates the key differences between the brands' marketing strategies.

The pricing model for each brand is very different. For the Idea Village's "tough blades" you're paying on an "annual basis" ($19.99+ $7.99 = $27.98). This model would technically amount to $2.3 a month. Compare this to its competitors, Dollar Shave Club offers three price steps: $1/ month, $6/ month and $9/ month, plus free shipping and start off razor. Gillete's plan runs from $3.50-$4.90/ month, plus free shipping and a discount on a razor. The quality of the "Tough Blade" seems obviously less well-made than it's competitors, and it's advertising model seems to lean towards a large amount of one time buyers (hence the annual cost), compared to the other shave clubs, which are based on keeping you as a monthly customer. In this way, it makes sense that Dollar Shave Club chose to be authentic in its advertising messages - without brand loyalty from its customers, its business model would not succeed.

As Dollar Shave Club exemplifies, authenticity is the key to advertising of the future because it fosters brand loyalty. In the age of open information, advertising is no longer a one way street. If customers do not like your message, or your product when it arrives, they will tell not just you - they will tell everyone on their Facebook page, all of their Twitter followers, and they may leave you a couple of reviews on Amazon, Yelp, etc. Advertising authentically, in many ways, is no longer optional for brands who are looking to not just convert customers, but maintain a steady stream of monthly repeat purchases.

Can the big brands still fight the newcomers like Dollar Shave Club? Absolutely. But to fight this type of advertising, the marketing strategy needs to be long term, and, of course, authentic to the brand's core customers. Advertising authentically can look like many different things to many different people. Copying the competition's advertising strategy is not authentic, and this seems to be Gillette and P&G's main tactic has been so far. In my opinion, if there is one thing that millennials will buy into, more than humor, it is the authenticity of being "Made in the USA." Unlike Dollar Shave Club and other competitors, Proctor & Gamble and Energizer Holdings manufacture their blades domestically. This could be a huge authentic selling point for their advertising. Why are they not using it to their advantage?

There is certainly no ready-made formula for targeting millennials, but many lessons can be learned from Dollar Shave Club and it's founder and CEO Michael Dubin. In the age of digital marketing, the conversation is no longer a one-way street; successful marketers will know how to use not only digital platforms, but create messages that are authentic and conversations that are rewarding to gain and retain the next generation of buyers. I hope that you will follow this advertising battle with me as it unfolds, and as an informed consumer, consider how a brand's authenticity (or inauthenticity) plays into your buying decisions.