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Renova Case Analysis

Renova is a private-owned Portuguese company which manufactures disposable tissues and

other hygienic products using the brand name “Renova”. There are other giant companies which

control tissue products in Portugal. Such companies include Sonae Distribucao, Grupo Jeronimo

as well as Auchan Group. When compared to the above mentioned manufacturing companies,

Renova is a small organization which is simply struggling to cope up with the stiff competition

from its competitors. Renova industry delivers high quality products that allows it achieve

marketing bottom line goals. The company prefers customer-oriented marketing to product-

oriented marketing since it allows them to not only develop the product, but also push it to the

market.

Analysis of Impediments

According to the company’s customers, price of the tissue forms an important an important

attribute in the market assist. In fact, the ability of Renova to increase the image and the

awareness of their brands is the reason for their successful positioning and product care in the

market. Majority of the clients find the price to be an essential characteristic of toilet paper.

However, Renova’s market share in the world market of Disposable Paper Products Industry

(Including Hygiene Products) is less than 1%, which means they are not seen as a threatening
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competitor in the global market by other brands. In the Western Europe market Renova’s market

share is really small as well, just 1%. Renova is focused on the Portuguese market and has a 17%

market share, which makes them the third biggest brand after P&G and the private labels as a

whole. Equally important, quality and brand largely contributes to positive market trend of

Renova’s products.

Analysis of Objectives

Although tissue marketing is extremely competitive in Portugal, however, Renova is trying to

introduce black tissue paper which will see the company increase its’ market share. Notably, the

firm is focusing much on quality than price to enable them remain unbeaten in the competitive

market. Arguably, most of the company’s revenue is generated from black tissue paper. In fact,

the increase in sales of the said tissue is the company’s project to increase the revenue. However,

the differentiation methods of this black tissue are the key determinants of the company’s ability

to critical analyze and understand its’ target consumers. As earlier mentioned, the company

considers using customer oriented techniques in their marketing strategy to understand better

most of their target consumers. The table below shows the products portfolio of Renova. Renova

offers a wide variety of products. Furthermore the company has a long tradition and therefore has

a lot of experience as well as loyal customers. Renova cares about its consumers and maintains

its customer base through interactive and creative fidelity programs Financial performance

Products Percentage
Black Tissue 52%
Tissues 8%
Rolls 20%
Napkins 17%
Others 3%
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Sales

Black Tissue
Tissues
Rolls
Napkins
Others

The Company’s Key Issues

The main issue with Renova Company is the stiff competition from other big companies in

Portugal such as Grupo Jeronimo, Auchan Group and other industries manufacturing tissue

papers and other hygienic products. Although the company has a strong brand name, however,

the industry is still a small business enterprise hence struggling with the stiff competition from

those other big industries in tissue market. Renova targets a very wide customer base. Since

toilet paper is a commodity that every human needs daily and basically for a lifetime, males and

females from 0-99 are Renova’s target market.

On the contrary, Renova is a tissue producer offering all generations’ diversified items, unique

designs and colored papers additionally to their notorious quality product “regular toilet paper”.

Hereby the company satisfies not only consumers’ basic needs but also add a little more

exclusivity and individuality to their products.

Solution Analysis and Outline of Recommendations

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The brand position of Renova industry is imperative owing to the fact that their products

especially the black tissues are new to the market. To increase the market share and cop up with

the stiff competition, the company should employ in store marketing strategies like rewarding the

customers. Also, the organization should consider improving the popularity and the appearance

of its brands to promote sales. The company should also offer educative information to its clients

about the brands to increase their brand’s popularity. Such information educate the customer on

different available products hence increasing sales.

Rationale

The rationale for Renova choosing brand statement is to provide basic understanding of the

company’s products. This understanding plays a critical role in brand marketing as well as in the

selection of the positioning statement. The rationale for customer oriented marketing strategy is

to provide a persuasive tactic to attract more potential customers. Renova has however,

employed the most effective brand marketing strategies as well as differentiation techniques that

sustain them in the competitive market. Resultantly, they have become innovative which is the

reason why the key players differentiate products. The company has unique advertising

campaigns which will make it enjoy highest brand awareness in Portuguese market. For this

reason, their products are receiving customer’s positive feedback hence increasing the sales.