Renova Toilet Paper: Avant-Garde Marketing in a Commoditized Category Harvard Case Solution & Analysis

Renova Toilet Paper: Avant-Garde Marketing in a Commoditized Category Case Solution

Analysis

A Suitable target customer segment and its attractiveness

Launch of Renova black as a new and separate product line would be more effective and efficient because then the rest of the product lines would not be overlapping each other and customers would be able to differentiate amongst the product line and purchase according to their likes and preferences.

Launching a limited edition of Renova black toilet paper as an image builder is not an effective option because previously some manufacturers and retailers have tried to improve the aesthetics of toilet paper by launching limited editions of decorative toilet paper rolls printed with special events such as Christmas or valentine’s day graphics have never been successful in the market, no matter they are available in the market all the time but no significant sale has been generated by these limited edition toilet papers.
Renova already has a strong brand image and brand awareness in its home market, according to studies conducted for the purpose of measuring awareness in the market of Portugal, Renova had double figures in 2005 which was 87% as compared to other brands. Moreover, they were well ahead of L’Oreal and competing with brands such as Sony and Danone in terms of awareness.
Therefore, if Renova applies the same strategy of launching a limited edition, then it would not be anwise decision as competitors have already failed to capture the market of limited edition toilet paper and a negative word of mouth has been spread by customers as well for coloured toilet papers as it has environmental concerns attached.This issue could be resolved by the use of heavy advertisement strategies which could be an informative advertisement portraying that there is no harm in using coloured toilet papers however, this was not effectively done by the producers and they could not change the negative word of mouth spread by customers.(de Sousa et al.,2010)

TARGET CUSTOMER SEGMENT:

Basically the most important attributes that are taken into account by customers before making a purchase decision for toilet papers are 60% focused on price, 30% quality, 8% the brand and 2% the format. With respect to quality the three most important features are softness, strength and absorbency. 55% of consumers said that they check the price first before making a purchase decision, whereas 35% claimed that they did not emphasize on price before making a purchase decision. Similarly the Portugal market showed an attractive 16% growth rate in premium brands between the years 2003 to 2005.
Renova is an innovation oriented company in the toilet paper industry, toilet papers are usually perceived by customers as conservative and a dull product which is why they don’t compare offerings of several producers rather they just pick a pack as it fulfils the basic need of cleaning.

Primary consumers for the black toilet paper can comprise of luxury hotels and clubs therefore,one of the major target segments can be luxury hotels and clubs. The reason behind targeting these luxury hotels and clubs is that black toilet paper gives a sense of luxury as the colour black reflects executive class and the top level income groups and people coming in luxury hotels and clubs are usually of high living standards and would be attracted towards the black toilet paper according to their social class. Having black toilet paper in a bathroom would represent luxury and give a strong brand image of Renova black toilet paper that it is something new and innovative and gives a picture that it is a premium product which is unique as no other competitor offers a product like Renova black toilet paper.....................

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