Toilet paper in Portugal

Toilet paper in Portugal

Competitive landscape

The toilet paper industry contains large, small, and medium-scale competitors that provide increased competition to firms operating in the industry. The industry is divided into premium labels, private labels, and economy labels. In Portugal, the toilet paper industry has experienced growth, with a significant portion being attributed to the growth of the private label. The private labels have had the fastest growth based on the strategy that they have employed. Private labels have experienced growth based on their understanding of quality and pricing ration, which means that people get the highest quality for the right prices, which makes the commodity affordable to different people. Premium products have been associated with increased purchase as people have more income. The increase in income has led to premium labels experiencing higher growth and purchases which have been beneficial as people are concentrating on branding and the quality rather than on the price of the products. The economic brand has faced the least growth as though people concentrate on the price, a majority will factor in the quality and the price of the commodity.

The changes in the industry have meant that companies have to improve upon the quality of the tissue paper that they are offering and fairly pricing them to ensure that they can maintain growth. Renova is faced with the uphill tasks of ensuring that they are improving upon the quality and the pricing of the commodity. With the company facing pressures from retailers, it will have to reconsider the target market and the marketing strategy that it will utilize, which will be meant to attract more consumers while lowering the costs of the tissue papers to ensure that they remain active in the market.

Consumer’s mindset

The consumer’s mindset when purchasing toilet paper differs based on multiple variables. Consumers will, in 60% of the time, consider the price of toilet paper when they are choosing the brand. Consumers will thus walk into a retail store and compare the prices, and in this case, they will go with the lowest priced toilet paper that is of high quality. Consumers that analyse the price will settle for economic brands and private labels of toilet paper. Consumers will then, in 30% of the time, consider the quality of the toilet paper, which influences their decision to buy. Through this analysis, consumers will, in most cases, purchase premium and private labels. 8% of the population only considers the brand of the product while the other 2% consider the format of the tissue paper and that of the retailer in arranging the products in the store.

Brand equity

Renova’s marketing campaign is based on the fact that the marketing strategy will lead to the brand being rated higher in the market and gaining consumer and market awareness. The company will have an exponential positive brand equity growth which will help the company to increase its sales and its position in the market. Changing the dynamics of the company orientation and wellbeing product meant that it was associated with wellness and self-care, which meant that it was perceived to be of higher quality and, as a result, would successfully compete with private labels and in the process increasing the brand equity of the company.

Marketing strategy

The retailers in the toilet paper industry hold a lot of control and power, and they constantly affect the manufacturers of toilet paper. To ensure that the company is growing, the company should consider concise partnering up with the retailers, which will lead to the products being offered at low prices and the retailers continually offering discounts on the larger stocked toilet rolls, which will lead to higher sales. Renova, as a result, will offer the retailers branded toilet papers and reduce the purchasing costs, which means that it will be cheaper and will be strategically positioned in the retail stores.