IdeaVillage's Boger: Increased competition poses big — but addressable — challenges

How can brick and mortar compete with online shave clubs? Ron Boger, president and COO of IdeaVillage, shared the importance of dual merchandising locations with DSN.



DSN: What are the biggest challenges your company faces in the shaving marketplace, and how are you handling them?



Ron Boger: The biggest challenge is the increase of competitors, not only on the retail shelves, but also the addition of the online shave clubs. What’s more, it appears that all players in the shaving market are significantly increasing their advertising spending and promotional activity in a move to acquire new customers.



IdeaVillage is aggressively facing the competition with new TV commercials, increased media spend and a ramping up our FSI coupon schedule. Our retail partners are supporting the MicroTouch brand with increased off-shelf promotions to maximize the sales opportunities.



DSN: How should retailers merchandise the category for greatest return? In the case of “As Seen on TV” products in shaving, should they be featured on the shelves with other As Seen offerings or in shaving, and why?



Boger: In terms of dollars, IdeaVillage currently has the No. 1 razor SKU in the drug store segment. Our initial placement was in either the shave or As Seen on TV department, depending on the specific needs of the individual retailer. However, we are now on a path to have the Micro Touch ToughBlade featured simultaneously in both departments with a [new lower price option of a] $10 retail SKU. It is the same great quality product, with six months of shaving. We expect great consumer trial with the new attractive price point.



We have discovered that having placement in both departments does not dilute sales. Instead, it actually generates incremental revenues.



DSN: What's on your new product "hot list?"



Boger: We are looking forward to introducing new, innovative, highly-advertised shavers and trimmers in the next 90 days. We are very proud of the fact that the MicroTouch brand of trimmers and shavers will continue to rank at the top of Nielsen reports.