The Analysis of Renova Company - Research Paper Example

The Analysis of Renova Company Executive Summary Renova is a Company that produces consumption goods such as toilet papers, napkins, facials, handkerchiefs, wet wipes, writing, and printing papers, as well as kitchen rolls. The Renova Company became successful in 2005 after a massive increase in profits that resulted from the huge sales of the company’s toilet papers. This success enabled the company to employ more workers who were posted to the company’s industrial units in Portugal and other commercial branches in Spain, Belgium, France, and Luxembourg. Richter stated that the sale of toilet paper by the Renova Company earns it more profits because it accounts for almost half of the sales(130). The Renova toilet papers became increasingly popular when Portugal was incorporated in the European Union in the year 1986, which enabled the company to gain a regional expansion as the integration made it easier for Portuguese to establish branches in other parts of Europe. Richter noted that advertising the company’s toilet papers using nude male models and the use of couples stripping and engaging in the playful games that were sexual, resulted in the decline of sale of Renova toilet papers in countries like France and Spain since the adverts were banned because they were focused on compassion and love rather than the Company’s products. This marketing blunder posed a danger to the company and it resulted in the decline of the company market share in the regional market. This marketing blunder further made the company vulnerable to the stiff competition from other companies dealing in similar products such as Procter and Gamble, Georgia-Pacific and Kimberly-Clark. The recommendations required to make the company increase their sales in their home country and other countries include producing goods of high quality that are sold at affordable prices and using appropriate methods such as advertising and sales promotions to ensure that customers in various markets are aware of the products in the market. High quality products that have unique colors and textures will make Renova Company to have a sustainable competitive advantage over other companies in the market of similar products. Recommendations The main goal for Renova Company is to communicate appropriate and effective marketing messages that will erode the previous bad image that resulted from poor marketing campaigns that included the use of nude photos and the playful sexual games from couples. This process will take a period of two months where the company will work on creating a good image of the company hence making the countries that had banned their adverts to accept working with them again. The second marketing goal is to wade off competition from other Companies such as Procter and Gamble, Georgia-pacific and Kimberly-Clark by improving their products and coming up with better strategies to get more revenues, which will be done in a period of one year. The possible timeframe for achieving these two goals is as follows; Goal Possible timeframe for achieving the goal Improving the company’s image Two months Becoming competitive One year The marketing strategy required for Renova Company to achieve these goals is to place itself as superior Company in the industry by focusing on manufacturing products that are of high quality with different fragrances to attract customers. The products should be environmentally friendly to ensure that their surrounding is clean and on the right side of the law. The Renova Company should devise marketing messages that are culturally sensitive to the viewers so that they can be allowed to advertise in other countries like Spain and France where they were previously banned (Richter, 137). The action plan The action plan will involve implementing an appropriate marketing mix that can enable the company to achieve its listed marketing goals. Product Renova Toilet Paper Company should come up with products that are of high quality to ensure customer loyalty to the company and always prefer the company’s brand. The products of the company, such as toilet papers, pocket tissues, and facials should additionally be manufactured in a manner that is environmentally friendly so that they can be appealing to the increasing number of eco-sensitive consumers. Promotion Renova Company needs to promote the products using cultural sensitive advertisements on different media such as televisions, newspapers, and radios. The company needs to offer buy-one-get-one-free offers and introduce customer loyalty schemes that will enable customers buy the products even if there are other products on the shelves in the shops. The marketers of the products at Renova Company should research on images and presentations that are friendly to all customers including children to attract more customers. The male and female models used in the advertisements should display the importance and the unique nature of the products at Renova Company by displaying the uniqueness of the company’s products such as the unique texture, color, and even size that places it at a more advantageous position than competitors products. Price Renova Company needs to sell the toilet papers and other products at affordable rates to attract many customers and to generate more sales. Reducing the prices for the toilet papers will put the Company ahead of their competitors. Lastly, the company needs to introduce the use of coupons and price discounts to boost their sales in various countries. Price discounts will enable customers to buy the products in bulk hence making more sales and profits in the process. The use of coupons will enable the company to reach more customers by making it easy for them to introduce new products to customers and hence creating more markets for Renova Company (Richter, 150-151). Place Renova Company should ensure that they use the right distribution channels to facilitate the products to reach the consumers in various places. The Company should distribute the toilet papers across various markets in order to ensure that the products are readily available for all prospective consumers. The company needs to make it possible for its customers to purchase products online so that they can make it possible for individuals who cannot travel to the shops due to their busy schedules to make purchases of the products. Benefits of the recommended solutions The benefits of using marketing messages that are culturally sensitive is that the Renova Company will be able to advertise their products in various countries and the places where the company’s adverts were banned will be able to lift this ban and in turn more customers will purchase their products. The use of images that are culturally sensitive will create a positive image for the company hence increasing its revenue through the improved sales of the products. The process of Renova Company improving the quality of their products, selling at affordable prices, offering sales promotions and distributing their products at various places will facilitate a sustainable competitive advantage over its rivals in the market. Work cited Richter, Tobias. International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-Markets. Berlin: Logos, 2012. Print. Read More