This Study Resource Was: Rohvi Case Study Write Up Draft

Rohvi Case Study Write Up Draft
Katherine Boggs, Non Charoenwattananon, Maya Krasovsky, Tate Robinson, John Deering
1. What problems are customers trying to solve or what “job” are they trying to
accomplish? What benefits are they seeking in the product? Does the product solve the
problem?
Problems Statement: For the users, Whiffen noted that many shoppers face issues with limited
closet space being a hindrance to their ability to enjoy shopping; especially with seasonal items
of clothing and quickly changing fashion trends, new purchases were able to be worn only a few
times before being stored away or sold second hand (Page 4). For the clothing retailers, the
user-experience with customer returns is lackluster; there exists no off-the-shelf solutions to
track and aid in the offering of resale opportunities (Page 9), and offering 20% off coupons as
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compensation for users were often costly and ineffective.
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Solutions & Benefits: By reaching out to customers 3-6 months after their purchase to ask if they
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would like to participate in the buyback program which allows the user to ship in their returned
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purchases at no additional cost in return for store credit to spend next time they’re there, Rohvi is
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able to create value for the user in the form of discounts for their unwanted garments. They are
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also able to create value for the retailers by building a more positive interpersonal relationship
between the user, offering to manage the customer’s return experience, and retaining more
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customers by offering them a better shopping experience - an area that often lacks resources to
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take care of.

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Solution Evaluation: Overall, the campaign was successful, with data-backed results that the
Rohvi program costs less than a standard 20% off coupon compensations and performed better
overall (Page 8). Furthermore, the brands were able to get valuable feedback from their
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customers from both those who loved it (the item became their go-to) and those who didn’t
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(wishing they knew about this buyback program sooner), which they would’ve never gotten
otherwise. Although the value creation and capture seems to be evident, Rohvi did run into
issues with their ability to sell this model to larger fashion retailers who are hesitant to be the
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first mover. Their resistance to innovation revolved around the uncertainty of investments and a
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lack of overall data to support their needs.
2. How do companies create and capture value using their platforms?

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Rohvi creates value for customers by:
● Implementing the “Purchase Mistakes” program that allows partial credit on returns -
which helps reduce buyer’s remorse. This also goes hand in hand with the way clients can
try different types of clothing and experiment more than they would have previously,
with the opportunity for on-trend and new clothes to be repurchased.
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● Allows the customer to declutter their wardrobe and become more organized, while
maintaining a larger clothing collection (of clothes they are more fond of and aren’t
simply too lazy to get rid of)
● Creating savings for customers while appealing to the cyclical nature of consumer
preferences regarding fashion.
They also create value for clothing distributors by:
● Giving the retailers a “spot” in the customers closet because of the repurchase/purchase
cycle. This also increases brand loyalty because of the partial store credit policy
● Integrating data tracking for performance through Rohvi’s partner connection and ability
to reroute items, which takes away the stress of dealing with the logistics of those returns
(done through Rohvi’s partner connections and ability to direct clothes to return
repositories). This also connects retail processes with evolving client practices to the
circular model of consumption
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● Making the customer more satisfied overall because of more opportunities to return,
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buyback, and repurchase clothes
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On the other hand, Rohvi captures value:
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● Through the reselling of returned items, whether the stores want the return items or
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donate them, rohvi used non-local platforms to capture resale prices - they verify the
receipts of the items/store credit issued, while dealing with all the returns.
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● They also capture value from clothing clients through the subscription-based model.
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There is an Annual fee of $49.99 for customers, which is collected immediately upon
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sign-up or from the first-item that is returned for credit from the store
● The initial pilot with smaller retailers also captured value through a small upfront fee, and
after proven results, additional payments
● Consumer analytics - data gathered in terms of engagement with marketing materials,
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repurchasing habits.
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3. Write positioning statements for the products. Write one statement for retailers and
another for clothing customers for Rohvi. Write one statement for box purchases and
another statement for the sample manufacturers for Birchbox. Use the template below
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from the course materials.
Positioning Statement Template:
To whom (target market or segment):
Relative to (frame of reference – competition or substitutes):
What is “point-of-difference” (customer value proposition):
For clothing customers:
To: clothing customers who want to get rid of old clothes or clothes they don’t like
anymore, remove the stress of cluttered closets, relieve the worry of purchasing mistakes, and
allow customers to experiment with new trends
Relative to: online resale and fashion rental services
Point of difference: Rohvi offers an easy means of improving one’s closet by trading-in
old or unwanted items for store credit to buy fashionable new ones at your favorite stores.
For retailers:
To: Retailers of any size in need of integration with a resale-model, who want to improve
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customer satisfaction and ensure repeated purchases.
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Relative to: direct resale through coupons or donation-based resale
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Point of difference: Rohvi offers buyback services to improve the cycle of clothes sold
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off resale. This supports a circular model of consumption while taking on the logistical hassle of
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handling returned items. Furthermore, it improves customer’s loyalty through the act of
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repurchases, increases customer satisfaction by mitigating buyer’s remorse, and heightens
customer retention/spending through closing/renewing the fashion sale cycle
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4. Use Roger’s 5 Factors to identify potential barriers to adopting the product that need to
be addressed and briefly describe what tactics will be used to address these barriers.
Relative Advantage: High. No other companies have created a product that allows customers to
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buy clothing from retailers and return them for credit after use. Rohvi encourages shoppers to
more frequently adjust their wardrobe, while also helping retailers hold on to customers because
the returns are done for store credit rather than cash.
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Compatibility: Low. Retailers have little to no experience in resale, and often do not realize it is
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a need. Rohvi’s platform is not consistent with retailers knowledge and experience, creating a
barrier in adopting the product. On the customer side, customers have experience with resale but
typically on a different platform, as opposed to the original purchase channel.
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Complexity: Moderate. While Rohvi is certainly easier to use with the B2B model than the
B2C model, it still involves thoughtful messaging, timing, and pricing on behalf of retailers. Due
to the risks associated with doing these incorrectly, many retailers may be hesitant to adopt
Rohvi.
Trialability: High. While there is a potential risk regarding the effects of using Rohvi on
retailers’ brand image, Rohvi charges a low upfront fee and charges based on results, meaning
brands can try the platform out for a limited period of time with very little risk. And even if they
do not benefit significantly from the Rohvi return program, they also receive data analysis on
their user base as a part of the trial.
Observability: Low. Since clothes that are being returned are kept in customers’ closets, it is not
very observable if they return the items. On the retailers’ side, there is low observability for other
retailers to see Rohvi in use, so this would not be the best way to influence adoption.
Tactics to address barriers of low compatibility and observability:

Compatibility: Rohvi should market to customers who have used platforms such as Poshmark
and Stitch Fix, because the Rohvi concept of mailing used clothing would be more compatible
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with those previous experiences. On the retailers’ side, Rohvi should market to retailers such as
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H&M and Pategonia who have other types of used clothing returns, as returning items is
compatible with their experiences. Also highlighting the similarities between the Rohvi process
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and the normal returns process would help both potential customers and retailers view Rohvi as
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more compatible with their existing experiences and understanding of shopping.
Observability: Launch a social media campaign where people post their use of Rohvi (such as
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after making a return and purchasing a new item at a discount) on Instagram or Facebook with a
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hashtag or tagging Rohvi would help address observability issues because it would allow others
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to see Rohvi in use.

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5. Identify the marketing input behavioral objectives for the product. This will need to be
done for customers on both sides of the platforms. Consider:
A. Are there customer experience cycle bottlenecks related to the product that will need to
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be addressed?
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There is a bottleneck for both customers and retailers around need recognition for the
Rohvi service, as many shoppers will simply leave unused clothes in their closet rather
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than seek out a reselling solution, and retailers have historically not sought out product
buyback options and may not immediately recognize the benefits of such a program. For
customers, there is a bottleneck around product awareness, as many may not check their
email to see the Rohvi offer and the program is otherwise not very observable. Finally,
there is a bottleneck before purchase for retailers, as retailers have been hesitant to
partner with Rohvi due to low compatibility and the risks with brand image.
B. How are customers involved with the product? (Uninvolved, vs. ego involved vs.
utilitarian involvement) Will this need to be managed to grow product sales?
Currently, customers are ego involved, as they are planning to use the Rohvi product and
are innovators/change agents in doing so. Retailers who are early adopters would also be
ego-involved, but in order to scale to the desired extent, Rohvi would need to be
marketed to utilitarian users as well by highlighting objective performance measures and
benefits. Little success would be found with uninvolved customers, as they would not
care enough to use Rohvi and would likely just leave the clothes in their closet.
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C. Describe the roles customers play interacting with the product. Can this be improved?
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(see slide 16 from the Marketing Metrics and Marketing Mix Intro lecture deck)
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Retailers are rational organizations, and therefore would typically be conservative, frugal,
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pragmatic, and risk-averse in their self-perception. A large reason why they are this way
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is fear of tarnishing brand image and suffering financial loss. In terms of authority, many
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retailers seem to be hesitant to be the first to adopt Rohvi, so they would be classified as
followers disinterested in change. There is potential to improve here to encourage
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retailers to be innovators and adopt Rohvi instead of waiting for other brands to do so
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first.
The customers themselves are also likely frugal and risk averse, but might have more
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change tolerance and a more idealist brand demeanor. For many early adopters of Rohvi,
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they may consider themselves fashionistas who enjoy the shopping experience, but are
engaging in more sustainable shopping practices, rather than having the luxury of just
buying new items as they please. Current customers seem to have more potential to be
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innovators in leading use of Rohvi, and would be change agents, because they are more
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early adopters of the platform. It would be key to also appeal to currently disinterested
customers in order to expand Rohvi’s user base. Additionally, once more people use
Rohvi, it would be easier to target more frugal or risk averse consumers by showing them
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that others have been able to save money through the buyback program.
6. Identify and describe a complementary product extension or brand extension for the new
product. Why should the company pursue this opportunity? Make sure you address potential
cannibalization and commoditization risks as well as potential complementary value. Does the
new product change the utility (value) or function of the product?
Ultimately, Rohvi wants to target larger retailers in order to spur its growth. Since retailers want
to “do things on their own time”, Rohvi should offer different tiers of time of return, for example
2 months, 4 months, 6 months and 12 months, each with different commission fees for Rohvi.
Retailers could implement a staggered approach as they saw fit and send out the staggered email
on their chosen timeline. The complementary value of the staggered approach would offset
cannibalization because larger retailers have a higher quantity of clothing - expanding the market
share that Rohvi captures. The lower price of the clothing, and the commission, would then be
offset by the quantity. Additionally, smaller retailers would not feel unjustly targeted since they
receive the benefit of Rohvi’s data analytics. The utility of Rohvi would remain unaffected.
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Then, to help with retailers’ brand imaging, Rohvi could create a website “Rohvi Tracked” so
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that both retailers and consumers can see where their returned clothing items go. This would
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appeal particularly to more environmentally-aware consumers, and help retailers cultivate a more
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sustainable brand image—something that has proven increasingly important recently with the
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new rising trend of environmental-conscious fashion and movement away from fast fashion as
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customers are more inclined towards brands that align themselves with a ‘green’ image. Both
retailers and consumers could track how much clothing waste they prevented each time they
make a return or reroute a return to a repository rather than simply throwing clothing away.
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Retailers, with the help of Rohvi Tracked, could then advertise this success within their
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marketing strategy, improving their brand image for recent consumer trends and driving more
future success. This would be a subscription service for retailers, and they would pursue this
opportunity because it would allow them to promote an environmentally friendly brand image
that is backed by the data Rohvi Tracked collects. Rohvi would not have to worry about
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cannibalization or commoditization with this brand extension, as it would have no negative

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impact on the existing platform and actually may even help draw more people to the original
standard platform.
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Rohvi could also offer a “bulk” model to larger retailers. Such a model would mark a departure
from partnering with brands to identify products that customers could want to resell, given the
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large quantity of clothes consumers buy from retailers. The model would encourage retailers to
pursue buybacks of a bulk of clothing, seasonal in nature. This would be in line with the lower
cost of production for items of clothing and their interchangeability. A bulk model would not
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change the function/utility of Rohvi, as it is in line with a B2B buyback model. Combining this
with Rohvi Tracked would result in larger-scale environmental impact that consumers deem
desirable in a clothing brand.
Adding these extensions would boost flexibility and brand imaging for retails, as well as
flexibility for consumers, thus helping attract more customers to Rohvi.
7. Develop a Concept Statement for the new position/product using the template from class
for the new position/product. (See slides 13 to 17 in the Promotions and Pricing lecture deck.)
1. Headline: Introducing Rohvi Tracked!

2. Sub-Headline: Embody brand sustainability strategically.
3. Problem Set-Up: What happens with the unwanted clothing returns? Can we leverage these to
both do social good and boost the social acceptance of the retail brand to
environmentally-conscious customers?
4. Product Description:
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With Rohvi Tracked® we track and trace your returns after it leaves our hands. Whether they
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are being donated, repurposed, or recycled, Rohvi takes care of all the hassle. In return, we offer
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you numbers, data, and statistics to help boost your brand’s green image.
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By projecting a greener and more sustainable branding through partnering with local
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charities and non-profits surrounding environmental causes, we will help you generate buzz
around the social good you do to encourage more environmentally conscious customers to shop
with you more!
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5. Reassurances: We leverage data to create a brand strategy that allows you to utilize Rohvi
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Tracked® in your marketing.

6. Tagline: Reuse Recycle Returns!
7. Visual of the Product: Example of brand website that pitches the Rohvi Tracked® (scroll
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down)
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8. Identify 2 tactics for improving value capture. (See slides 40 to 46 in the Promotions and
Pricing lecture deck). Beyond price, often these value capture tactics involve changing the
business model, product, or channel. What marketing tactical changes will need to be made for
each of these value capture tactics?
To improve value capture, Rohvi could change their segment by encouraging

self-segmented fencing. Since they cannot segment around customer WTP directly, Rohvi could
offer higher cashback for items that are from luxury stores, or from bundles of items that are
returned all together at once. This way, people who shop for multiple items at once, people who
shop at Rohvi-partnered stores, or people who shop at high end stores would be able to go back
and continue to spend money. These individuals may identify themselves as WTP and then spend
more money at these stores because they have a “discount.” Since margins are higher with these
types of shoppers, a larger discount may not inhibit earnings for the stores from generating large
revenue. This discount would allow customer segments to create their own identity. Stores will
continue to have small margins on discounted low end items, but may improve revenue due to
increased repeated purchases and purchasing of higher end items with better margins due to the
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slightly increased discount. Secondly, Rohvi could implement a form of internal budgeting for
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their clients.
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Bundling may also be an effective tactic for Rohvi to use. Changing the bundle of
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features that are offered to specific segments can often allow companies to maximize profit
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margins across segments. Rohvi could decrease the amount they offer to customers who only sell
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back one piece at a time. Customers who sell multiple items of high value back to Rohvi at once
will receive greater value for each of their pieces. This way, businesses and customers are
incentivised to sell many products back to Rohvi. This would help Rohvi increase their inventory
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quickly, and then offer a larger selection of clothing to their consumers. While the margins on
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items may be smaller to begin with, an increase in products may appeal to a larger customer
base. Ultimately, Rohvi would increase their market share, and incentivise more high-end
clothing brands to do business through them. This model does not have to stay in place forever
either. Once Rohvi has captured greater market share and greater value, they may switch back to
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another model.
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Rohvi Case Study Write Up Draft

take care of.

lack of overall data to support their needs.

2. How do companies create and capture value using their platforms?

Rohvi creates value for customers by:

They also create value for clothing distributors by:

from the course materials.

Positioning Statement Template:

To whom (target market or segment):

Relative to (frame of reference – competition or substitutes):

For clothing customers:

Relative to: online resale and fashion rental services

Tactics to address barriers of low compatibility and observability:

to see Rohvi in use.

cannibalization or commoditization with this brand extension, as it would have no negative

1. Headline: Introducing Rohvi Tracked!

Tracked® in your marketing.

To improve value capture, Rohvi could change their segment by encouraging

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