Renova has established itself as a global organization in the disposable paper industry with about 600 workers and posting sales of 104 million euros in 2005 specially within Portuguese, Spanish, French and central European markets. As a global market, the tissue one is dominated by strong companies as Procter and Gamble and Kimberly-Clark, two giants big enough to destroy any intention to survive unless Renova is able to overcome with a differentiation strategy.
My analysis indicates that success lies in Renova’s ability to raise awareness and image of the Renova brand by successfully positioning its new black toilet paper as a unique personal care product for youth consumers from higher social classes. The major …show more content…
It might be argued that the greatest impediment to Renova’s goal is the growing share of private labels and its points of difference: private labels offer a better quality/price ratio. However, attempting to render a competitor’s point-of-difference a point of parity, would serve to only dilute the Renova black and its own point-of-difference.” It would be detrimental for Renova to address this impediment by assimilating private labels points-of-difference since Renova is a brand leader.
To overcome the impediment set forth in this discussion, instead of positioning Renova black against other toilet papers, it should be positioned as a personal care product and using its black color to provide it with a distinctive positioning and becoming Renova black not only a unique product but also a symbol for those consumers who seek for the best products to take care of their body.
This solution is derived from the following positioning statement: “For younger consumers from higher social classes who care about their image