3R Case Study

Introduction

Resene was established in Wellington garage in New Zealand 65 years ago. Resene believes
product innovation has been the key to its success:

 Water-based paint
 Removing lead from its decorative paint products in the late 1960’s
 1996: Certified by the New Zealand Government’s Environmental Choice program,
for its efforts to minimize adverse impacts of its paint on the environment.

In 2013 the Global Product Stewardship Council reported that 18,000

tonnes (in other words 20 million litres) of paint require disposal
every year. To combat this problem, Australian and New Zealand
ministers decided to develop a stewardship scheme. However, a
solu on to this problem had already been implemented in New
Zealand by a company called Resene. Resene, competes in the paint
market through its promises of being environmentally ethical and
friendly. Through the help of the 3R group they were able to start 3
services- Paintwise, for recycling paint. Paintcrete, to turn paint into
usuable concrete and Agrecovery to help farmers dispose of plas c

Background

Question 1

How has product innovation contributed to Resene’s market position as the leading
environmental paint brand in New Zealand?

Discuusion Question 1

Innovation

Innovation: the process by which ideas get transformed into new offerings, including
products, services, processes, and branding concepts (Grewel 272).

Why do firms innovate?

1. To respond to changing customer needs

2. To prevent a decline in sales due to market saturation

3. To diversify their risk and respond to short product life cycles.

Setbacks
Setbacks

 2003: A second paint brand gained the same Environmental Choice certification
 Corporate Social Responsibility: Customers had leftover paint cans that they were
unable to recycle

Solutions

Solutions to Maintaining their title of New Zealand’s most environmentally responsible

paint brand:

 Networking with entrepreneurs Graeme Norton and Bruce Emerson

 The two developed Resene PaintWise to collect unwanted paint
 Development of a special kind of concrete called PaintCrete made of leftover paint

The Ansoff Matrix: determines growth strategy

1. Sell existing products to existing markets: market penetration

2.Sell existing products to new markets: market development

3. Sell new products to existing markets: product development

4. Sell new products to new markets: diversification

Analysis of Resene: Innovation and the Ansoff Matrix

Which growth strategy did Resene use and why?

Firms must:

1. Continuously pursue innovation.

2. Manage risk through diversity

3. Seek to create value for their customers

4. Become 'Ethical Champions' (Jenkins 241).