Order Description
Now you get into the body of the case study.
1. Describe Renova’s target segment(s) and positioning (if needed, refer back to ‘What is Strategy’ by Porter and ‘Break free from the product life cycle’ by Moon)
2. Using the framework suggested for this type of case in Ellet, discuss the pros and cons of each of the five options. Specifically, for option 1 (price reduction), do a break even calculation for a price reduction of 10%: how much does Renova need to sell more (volume) to make up for the decrease in price of 10%? For these break even calculations, use the cost per roll as shown in exhibit 3, and keep the retailer margin and COGS (cost of goods sold) as mentioned on page 7 stable in absolute terms as there is no reason to expect retailer margins/COGS to change as a result of a sales price change.
3. Make a recommendation for one of the strategic options. Formulate short- (3 months) and long (3 years) term objectives that go along with this strategic option.
