KPI Criteria Strategy 3 Strategy 4 Strategy 5

Risk Med Low High

Potential Return Med Less High
Innovativeness Med Med Med
Potential of Learning Curves High Med Med
Degree of Differentiation Med-Low Med High
Potential to attract local vs global
market Does not matter
Attractiveness same same same
Price.

Currently Renova uses a Product line pricing strategy based on cost differences for each type of toilet
paper and customer perception of the value. We propose not to change this pricing strategy as Renova
continues to establish perceived value differences that support the price differences. Furthermore for
the black toilet paper, a value-added pricing strategy is the right thing to do. The paper should not only
be perceived as just a colored toilet paper but with added value as well. Relatively speaking than the
black toilet paper is much like a Bentley with cars, a luxury good. However, bear in mind that you want
black toilet paper to be a fully-fledged new product line, available for purchase to the biggest number. If
prices are too low, customer’s perceived value of the product is too low while a too high price hinders
market penetration.

We think a price of €1 per roll is able to deliver more customer perceived value. While it’s also an easy
counting measure, the high pricqe clearly reflects the products image of being a luxury good.

Product.

Core product

There will be made no changes in the core product. The black toilet paper remains fur sanitary use and /
or craft projects.

Actual product.

As described in the internal analysis the actual product of Renova consists of the reputation and the
features of the product. While black toilet paper itself would sound like an unusual thing to do, it’s
consistent with the company’s reputation as being unusual itself. We suggest designing a toilet paper
that has all the features of the already excisting toilet papers out there and more. For example it will be
extra soft, fragranced, stylish design and finally it’s black. Such a product alone can be the Ferrari under
the toilet papers. To boost the perceived value of the paper even more you can even offer special gift
packs, using stylish packaging and / or wrapping services to make people understand this unique toilet
paper can serve as a gift as well

Augmented product

The augmented product of Renova is described in the internal analysis. In addition to what Renova
already offers we suggest with the black toilet paper line to provide an abundance of information online
about the new product, as people will be curious about the unusual product and will most likely search
for it online.

Place

We pay high attention to our target group and where they are located. Besides on usual shelve/rack
spaces in supermarkets, where you find you regular toilet paper buyers, you can contact the gift
shoppers as well. We suggest having stylish showcase-like Renova kiosks at shopping malls where you
have the advantage of good visibility, the customer can directly see/feel the quality of the paper and
staff can give information wrap up gifts etc. Since Renova is the first to offer the black toilet paper
products they have to deal with the adaption cycle. The early adopters are most likely to be found in the
big cities like New York, since they will be on the lookout for innovative products. Besides selling B-to-C,
B-to-B is also possible. It’s likely that visionary companies in the hospitality branch would want to try
Renova’s black toilet paper. It’s those unique elements of a hotel or restaurant that go viral in the public.
It’s also possible to have special Renova vending machines, for instance at big retail furniture stores like
IKEA. It’s the irony of buying toilet paper from a vending machine which makes it cool.

Concept of vending machine for Renova @ IKEA

Personnel.

Currently, as described in the internal analysis, Renova has around 600 employees. This needs to change
in order for them to grow. First of all they need to recruit salesmen that are capable of designing good
looking kiosks and explaining why black toilet paper is the new white toilet paper. One kiosk should
always have at least two employees, so customers will never or hardly ever have to wait before they get
served.

Promotion.

Perhaps the most important part of the introduction of black toilet paper is its promotion. As described
in the internal analysis, Renova promoted each line of toilet paper products through a series of
advertisement campaigns. It will do that again with another advertisement campaign focusing entirely
on the black toilet paper.

It’s incredibly important that the black color of the toilet paper will not question its quality or its value.
Therefore the advertisement campaign will go in two stages: the first stage is to familiarize the public
with the new toilet paper, explaining why it has high value, that it is not harmful for the environment or
yourself etc. This can be achieved by plain advertisements on radio, TV, and of course on the internet. In
the second stage there will be a TV-commercial to raise awareness and popularity of the new brand. An
idea for this commercial; a fairly long TV movie-like commercial where you see athletic ninja’s in an
action scene, fighting, climbing etc. Why the ninja’s? Because the favorite color of a ninja is black. They
have everything in black – so once they arrive home after a day’s work, they use Renova’s black toilet
paper. The popularity of YouTube’s sensation Ask-a-ninja (a comedian / ninja who answers each week a
set of questions) can be used to cover this same idea. The stylish kiosks in shopping malls will serve as
promotion as well.

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[ 1 ]. www.renovaonline.net/news/?cat=19

[ 2 ]. http://pauldotcom.com/2009/01/