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Research Outline

Prepared for Cameron G. | Delivered February 25, 2020

DTC Marketing

Goals

To learn about DTC Marketing and the DTC space by

Identifying trends on the DTC space
Identifying key drivers of trends or growth in the DTC space
Learning about the outlook for the DTC space and DTC brands
Identifying key DTC marketing agencies and DTC companies/brands
Successful marketing strategies used by DTC marketing agencies and DTC companies/btands

Early Findings

  • One trend in the DTC space is increased blending online and offline brands. Examples of this trend include the movement of previously only DTC brands like Harry's, Casper, and Native Deodorant into traditional retailers like Target, Mattress Firm, Walmart, and Meijer. This blending brings attention to the products, making them significantly more visible to the public and more easily available to consumers who aren't regular online shoppers and brings attention to retailers by bringing in consumers who have bought the products DTC in the past but are willing to buy them in a store as well. When Harry's razors first started selling at Target, Target discovered that many consumers were familiar with the brand but had not tried it because they were not interested in buying them online.
  • Harry's began selling its razors and other personal care products online in 2013. In 2016, they started selling their products in Target in 2016. Other DTC brands sold at Target include Quip, Casper, Native Deodorant, Beautycounter, and Oar & Alps.
  • Many DTC brands, such as Harry's and Quip, rely on subscription services. Some of these brands are structuring their retail sales to supplement and increase the number of subscriptions they sell. Quip, for example, has an arrangement with Target where only its electric toothbrushes are sold in stores. Replacement brush heads, which can be ordered to be delivered automatically, are only available through a Quip subscription. Upon purchasing a toothbrush at Target, consumers receive a code that allows them to register their toothbrush online and purchase a subscription for replacement brush heads.
  • As online channels get more crowded, the number of DTC products that will expand into retail stores is expected to increase.
  • Retailers are looking for ways to innovate and bring in new customers. Partnering with trendy DTC brands is one way they can accomplish that.
Summary of the Findings Relevant to the Facts
  • During our first hour of research we were able to provide one trend in the DTC space that is influencing not only DTC brands but traditional retailers as well. We were also able to do preliminary research to make sure the rest of the required information is available.