Disposable tissue and hygiene -‐ $26 bln industry o Disposable tissue -‐ $13 bln , (market growth 2.4%) § Tolitet paper: $7.6 bln § Kitchen towels and rolls : $ 2.6 bln § Facial and pocket tissues: $1.6 bln § Table napkins: $1.3 bln o Hygiene products -‐ $13 bln Renova’s share of western European market: <1% Sales of disposable tissue paper category: 220 mln euro (2005) o Toilet paper: 135mln euro o Table napkins: 37.2 mln euro o Kitchen rolls: 35mln euro o Facial tissues: 12.8 mln euro Renova market share disposable tissue category : 35% (17% if take into acct hygiene products) o Toilet paper: 34% o Table napkins: 37.6% o Kitchen rolls: 29% o Facial tissues: 29.5% Growth rates: o Toilet paper: 1.5% per year Private labels and Renova each have about 1/3 of market share. Renova brands shares: o Renova Super: 25% market share o Renova Progress: 5% o Other: <2% Toilet paper rolls prices: bw 0.10-‐0.70 euro Toilet paper packages: 12 or 24 packs, pack of 6 common, sometimes 48. Important attributes of toilet paper (Portugal): o Price (60%) – 55% check price before buying, 35% do not, o Quality (30%)-‐ softness, strength, absorbency o Brand (8%) o Format (2%) Rapid growth for private labels (16%, 12% vs 3% in economy brands) Retailers typically carry 3-‐4 paper brands, increase price gap bw national brands and private labels Renova was the first manufacturer to introduce paper rolls impregnated with lotions and balms Decorative toilet paper rolls never had significant sales o Health concerns (dye added) Production capacity: 100, 000 tonns per year Renova spent 1.5 millin per campaing to associate Renova with wellbeing o Ads progressively less functional and more symbolic
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Brand awareness: 87%, in particular among younger consumers from higher social classes. o Prestige brand: 7.5/10 o
