Case: Renova Toilet Paper: Avant Garde Marketing in a Commoditized World (Insead 510-077-1)

Questions:

1. Analyze the toilet paper category from the end consumer’s viewpoint. How do people choose what toilet paper to buy? What is the role of brands and why are private labels so successful?

2. Analyze the structure of the toilet paper market. Who are the biggest competitors? What is the role of retailers? What are the trends in this category that will effect structure 5 years from the time of the case?

3. Analyze the Renova company. Does it have any unique capabilities? How strong is the Renova brand?

4. Develop a chart comparing each of the five strategic directions mentioned in the case: 1) increased price competition; 2) private label manufacturing; 3) continued technological innovations; 4) launching a black toilet paper as a limited PR coup; 5 )launching black toilet paper as a fully-fledged line extension. In the chart, answer the following questions: a) What are the pros and cons of each option; b) Which option would you recommend be chosen by Renova? What are the implications of your recommended option on Renova’s existing portfolio?