RENOIR JIGSAW PUZZLE, INC.: MAKING PUZZLES MORE THAN JUST PUZZLES

Abstract

This case describes the marketing strategy and business model of Renoir Inc., a premium jigsaw puzzle retailer which offers high-quality art puzzles and customized framing services. By taking advantage of the IKEA effect associated with puzzles, Renoir sets premium prices, establishes a group of loyal customers, and appropriates better profits. Students are expected to understand the theoretical mechanisms underpinning Renoir’s strategy and be able to apply that knowledge to assess the magnitude of the two challenges Renoir encountered during the COVID pandemic: (1) demand decline due to the economic lockdowns, and (2) supply shortage from the premium European puzzle makers. Based on the information provided, students should be able to propose feasible solutions.