Renova Toilet Paper Analysis

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 price 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...