LetsShave: Selecting A Product-Centric Versus Promotion-Centric Strategy

Changing socio-economic trends led to the emergence of the men’s grooming segment in India. With the rise of e-commerce, the progression of social media, and growing awareness among men towards their personal grooming, a number of start-ups emerged in a category once dominated only by established players like Gillette. One such start-up was LetsShave, which was founded by Sidharth Oberoi in 2015 and catered to men’s shaving and grooming needs by offering products online only.<br><br/>Since its inception, LetsShave had maintained a product-centric approach to growth with a focus on high-quality products at affordable prices. This helped LetsShave gain a strong foothold in the market, growing at a sustained rate of 40 per cent per year with a loyal clientele and healthy rate of repeat sales. Other start-ups had adopted aggressive advertising and promotion strategies and were growing at a much faster pace than LetsShave. By continuing with its existing product-centric strategy, LetsShave might not be able to achieve its stated revenue target of US$10 million by the end of 2023. Oberoi had to quickly decide whether to continue with the company’s current approach or change course towards pursuing an aggressive marketing strategy to boost its top line.

This case is designed for use in undergraduate- and graduate-level courses on new venture creation and strategy, with an emphasis on growth strategies, strategic management, and competitive strategies. The case focuses on the competitive strategies of start-up companies and explores the differences between product-centric and promotion-centric approaches. After working through the case and assignment questions, students will be able to do the following:<ul><li>Develop a deeper understanding of changing context and how it creates new opportunities in a sector dominated by large and established players.</li><li>Develop knowledge of a large and diverse market like India and the need for the right mix of distribution channels for broader reach and faster growth.</li><li>Understand the payoffs of adopting a product-centric versus a promotion-centric competitive strategy by start-ups.</li><li>Understand the trade-off between smaller revenue and a higher founder stake versus higher revenue and a lower founder stake.</li><li>Understand the need for start-ups to shift gears and move to the next stage of growth.</li></ul>

• grooming
• product-centric approach
• competitive strategy
• growth