...Management Target in Canada I. Executive Summary In this report I will talk about the American retailer; “Target” failed attempt to conquer the Canadian market. I will first give a detailed introduction of the company and what were the circumstances of such event. I will then describe the different problems the company encountered during their stay in Canada. I will briefly showcase the different guidelines that Target should have used going into this international market. Afterwards I will give my market research of the retailer’s market in Canada to then give a new marketing plan that Target should have followed in order to succeed internationally. I will end by a brief conclusion of the case and give my personal opinion on the subject. II. Introduction Target, the US supermarket founded in 1962, decided to expand into the international market in 2013. It only seemed like the logical next step for the 3rd biggest supermarket in America. After 50 years, they had conquered the American market with their great customer service and products and it was now time for the world to experience the Target culture. The timing was perfect, as the previous year, the Canadian supermarket Zeller had gone out of business. This meant their 220 retail stores in Canada were for sale. It was the perfect opportunity for Target to finally expand beyond the US. Canada was a considered an easy step into the foreign market, as there was a similar culture to Minnesota, where Target had started...
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...Key Factors that affected Target’s Canadian Supply Chain Target opened its first store in Canada 2 years ago and expected itself to be a giant business unit in this country but unfortunately failed to make it. There are numerous factors for its failure and one of them is dysfunctional supply chain system which put it into the jeopardy where it had to shut down its 133 stores across the region. Following are some key factors which led Target to leave the Canadian Market. 1) Target had 3 distribution centers across the Canada which proved to be insufficient for ensuring the shelves of its stores fully stocked up. This might be because of the vast distance they had to cover and the number of stores they had to support. For the two centers the furthest store is about 850 miles away and for the third, the furthest is 1640 miles away. Inability to keep up with the demand of the customers and insufficient delivery of supplies to the stores made it difficult for Target to survive in Canada. 2) In Canada, Target had outsourced its supply chain operations to a third party logistics firm called Eleven Points Logistics and also outsourced food distribution to Sobeys. So all these expenses cost it a lot as a result it had to set the prices higher. So, offering products at higher prices is another factor which made Target to close down its operations. 3) The third factor which affected Target’s supply chain is Canada’s vast geography. Its supply chain covered a span of 7,082...
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...Target Canada proved to be unprofitable and financial unsustainable, ultimately resulting in the need to close all of the 133 retail locations spread throughout the various regions of Canada. This strategic decision/grand scale project is a paragon of a true failed venture, a point further accentuated by Target’s CEO, Brian Cornell, when he opined “we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021”. From the inception of this foreign expansion project, the strategic management team of Target believed the misconception that the same pricing level experienced in the domestic markets, namely the US, would be carried over to the Canadian retail locations, a primary competitive advantage. This pricing advantage experienced in the United States was the primary lure of Canadian consumer to such locations. Company executives failed to realize the presence of a commoditized product within its industry in Canada and was not adequately prepared to employ a pure cost leader strategy. Although the Target brand had built a strong reputation and intrinsic value within the United States it provided no meaning and symbolism for the Canadian consumers. Consumers were simply comparing Target Canada to the other local retail chains based on the pricing, which Target...
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...Marketing Plan for Canada Emily Bosela, Paul Emig, Stephanie Fazio, Kara Stiger Executive Summary Udderly Smooth has been in business for 30 years located in Salem, Ohio. Udderly Smooth is ready to take their product internationally starting with Canada. Udderly Smooth wants to target the active consumers who enjoy the outdoors and individuals who suffer from skin conditions. The SWOT analysis contains the strength, weaknesses, opportunities, and threats for our product to enter the market. Starting out Udderly Smooth will have a slow start to introduce the product and focusing on advertising costs. There will be very little product adaptation, but there will be some minor adjustments that may help their product sell quickly Udderly Smooth plans on using print advertising and local events to get our product out there. For distribution, Udderly Smooth plans on starting out in the homeland of Salem, Ohio. The best method for transporting Udderly Smooth to Canada would be by truck or by plane. Luckily, there is no modification to packaging necessary. This marketing plan will explain why Udderly Smooth is perfect for the Canadian market. It will breakdown every aspect step by step from promoting, distributing, pricing, and selling. Udderly Smooth is targeting a great market with a lot of potential for a lot of sales growth. Canada has a lot of opportunity for Udderly Smooth to be a successful wealthy company. A family owned and operated corporation, Redex Industries has...
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...Professor Elana Cooperberg Comm 223/ Section Q Due Date: April 16, 2013 TABLE OF CONTENTS Identification of a New Product 3 Identification of Two Sources of Inspiration. 3 Description of the Product. 4 Explanation of the Product’s Success. 4 Macro-environmental Impact 5 Demographic Environment. 5 Economic Environment. 6 Natural Environment. 6 Technological Environment. 7 Political Environment. 7 Cultural Environment. 8 Segmenting, Targeting and Positioning 9 Identification of Two Potential Markets for the product. 9 Selection of the Target Market. 9 Value proposition. 10 Differentiation. 11 Unique selling proposition. 11 Explanation of our logo… 11 Secondary Data & Sales Potential 13 Secondary Data… 13 Sales Potential… 14 Marketing Mix 15 Appendix 20 References 27 IDENTIFICATION OF THE NEW PRODUCT Identified below are two sources that were used in classifying our product: 1. www.thefancy.com This website shows technology and new products as soon as they are put into the market. It also contains concept pictures and ideas that are not yet in production. The pictures are user submitted so there is a very large population of people contributing...
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...Freedom in 1982 while Canadians value cultural diversity, people wanted a definition of being Canadian that included different origins Canada was the first country in the world to establish an official multicultural policy, a lot of countries followed striked suspicion and viewed with...
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...Diversity in Canada August 23, 2011 Abstract In this paper I will be looking at diversity in Canada and how the term of diversity is used to refer to cultural differences, how it applies to all the qualities that make people different. Diversity is shown in mutual respect and appreciation of the similarities and differences such as age, culture, education, ethnicity, experience, gender, race, religion, and sexual orientation. An environment where diversity is respected is on whereas individuals, and members of teams, can effectively apply all talents, skills and experiences. Demographic characteristics are the background characteristics that help what a person becomes. Ethnicity reflects the cultural experiences and feelings of a particular group but does not exclude the possibility that individuals within that group have the capacity to learn cultural behaviors of other groups. Diversity in Canada Canada is the second largest country and it is located in the Western Hemisphere. Diversity is important to a country because with a diverse environment people can benefit and learn from each others ideas. As more immigrants go to Canada the more diverse the country becomes. Canadians express a sense of unity and they are open to accepting other individual’s culture. This research paper is on the diversity in Canada and will be answer with the following questions: What is the key diversity concerns for Canada? Which groups are dominant and non-dominant? What are the participation...
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...Part II: Environmental Analysis (Target Country) Student Names: Aqeela Romer, Carleen Etienne, Christina Williams, Tenniel Cartwright and Chelsi Fowler Course: MKTG 412-0116 Instructor: Michael Rolle Affiliation: The College of The Bahamas Date of Submission: March 10, 2016 Canada’s Cultural life According to “International Marketing,” ‘culture is an integrated system of learnt behavior patterns that are distinguishing characteristics of the members of any given society.” Canada’s culture originated from Europe, especially Britain and France. Canadians are relatively a broadminded, civil and very community-oriented people. Although they are individualistic in terms of their basic cultural traits, they nevertheless place a great deal of emphasis on the individual's responsibility to the community. This is seen as giving balance and a good quality of life. They’re also very protective of their constituent identity and encourage their people to stay true to it. Canada also has a low context which means most of its information is explicitly contained in the words. Furthermore, Canada’s government is made up of constitutional monarchy that is also a parliamentary democracy and a federation. A multitude of languages are spoken in Canada. According to the 2006 census, English and French are the preferred language of 67.1% and 21.5% of the population, respectively. Canada also has five widely-spoken non-official...
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...Case Study #1: Canada in the Global Business Environment Canada: A trading nation? You are preparing for a top-level meeting between the Minister of International Trade, the Minister of Foreign Affairs, and senior business executives representing several multinational corporations as well as a large group of small- and medium-size enterprises. The objective of the meeting is to discuss Canada’s strategy in responding to the changing global business environment. Expectations are high since everyone wishes to move beyond political pronouncements and joint statements, to specific strategies and actions. The Trade Canada Summit is raising expectations and all are committed to motivating a call to action across major stakeholders engaged in international commerce. While Canadians like to refer to the country as a “trading nation”—partly because of history and partly because of the large impact of trade on the Canadian economy today, leading practitioners and senior officials recognize several truths: • Canadian trade is highly concentrated in import/export activities with the United States • Certain industry sectors such as automotive and resource-based businesses account for a disproportionately large amount of Canada’s trade • Intra-company trade—transfers of resources between affiliated companies—is an important part of Canada’s “export” business The hard reality being confronted, and one which serves as a critical backdrop for this meeting, is the realization that...
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...Secondary Market Research to Support a New Product Innovation The Product The Energy Bar is a mountable wall unit for households that enables them to track their energy usage by providing numbers for electric, heat, and water consumption. The Energy Bar provides a visual to let you know how much you are using, how much you should be using, and how much you could be saving! It also compares your usage for the current month to that of the month prior to help homeowners improve the energy efficiency of their homes, while also saving money. As you see the numbers go up and down, you will intuitively know where you can reduce your consumption and utilities costs, and act on it immediately. Place it near your alarm system and it becomes easy to check before you, and the rest of your family, leave the house. This way, no unnecessary lights will be left on, heat will be kept to a minimum when you are away from the home, and no faucets will be left running by accident. This unique device addresses the energy shortages and water management problems that we should all be concerned about. Install an Energy Bar to ensure your future and your wallet! The Evidence In a poll conducted by Ipsos for Procter and Gamble, respondents chose “saving money” (64%) and “preserving resources” (56%) as the most important reasons for taking environmentally-friendly measures. When reporting the reasons that prevented people from leading a more environmentally-friendly lifestyle...
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...Dolan Jiang Case 19 Questions: Looking at these two articles and other supporting material, discuss how Target's failure in Canada can be described as an Information Systems problem. Give examples, and suggest how better solutions might have helped. I think that Target’s failure in Canada describing as an Information Systems problem is the lack of data collection (Research), data process (Analysis), and decision making according to the refreshing data. For example, in the article “Missing the mark: Five reasons why Target failed in Canada” by Tamsin McMahon, the empty shelves problem is caused by the lack of inventory control and data of their products update lately. They did not do the research about the difference of Canadian people’s demands from the demand of the U.S. people. And also, they did not update their product frequently. The shortages of information system make Target lose control of their business. Similar to the other problems, such as the shopping habits of Canadians, high prices, intense competition and no online presence, all the problems are caused by the lack of information system. They did not collect data of their customers’ demand, process the data to help guard their decision making and update data frequently to keep competitive advantages. To help Target solve their dilemma, I have 6 suggestions: 1. Make certain of their targeted customers 2. Collect the data of their customers’ demand 3. According to the data of their customers preference, design...
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...Canadians’ perception of beauty is based on a skinny figure but rather having a healthy body. Instead of emphasizing the concept of “skinny is beautiful” they are now focusing on the concept of “strong is beautiful”. The notion of being able to pursue and achieve fitness goals is beginning to influence perception of beauty in today’s generation. Canada ranked 14th in the world’s largest obese population and the province of Ontario is where most numbers of obesity rate in the country. With a population of 13.6 million, the rates in Ontario are just above the national average, increasing to almost 29 per cent from almost 24 per cent in 2009. A study of regions across Ontario by the Institute for Clinical and Evaluative Sciences (ICES) found that death rates in areas with the highest concentration of quick-service restaurants were twice as high as those in places with fewer outlets, while heart attack hospitalization rates were about 1½ times higher. Ontario doctors are seeing an increasing number of patients of all ages whose obesity is harming their health, or will likely do so in the future. About 15 per cent of women and 17 per cent of men are considered obese, based on their self-reported height and weight. However, when researchers actually measured and weighed Canadians, they found that more than 1 in 4 adults - 25.4 per cent - were actually obese. Obesity can lead to diseases like diabetes, cancer and heart disease, and costs Ontario’s health care system $4.5 billion...
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...1: There are more than 12 000 veterinarians in Canada. Canada has approximately 3000 veterinary practices: large or/and small animal practices. The majority of veterinarian practice in the provinces: Ontario, Quebec, Alberta, and British Columbia. (Promote and distribution to veterinarians because they are the target market) 2: Ted Henderson has $40,000 + $10,000 = $50,000 to self-invest. 3: The prices offered by manufacturers in China range from $3.44 to $3.60 per boot. The order from the company with the lowest price has to be a minimum of 6000 boots. The main problem is that Ted Henderson needs to put together a marketing plan in order for him and his friend, Brett Welch, to make a decision on whether to proceed with the business of...
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...Canada: A trading nation? You are preparing for a top-level meeting between the Minister of International Trade, the Minister of Foreign Affairs, and senior business executives representing several multinational corporations as well as a large group of small- and medium-size enterprises. The objective of the meeting is to discuss Canada’s strategy in responding to the changing global business environment. Expectations are high since everyone wishes to move beyond political pronouncements and joint statements, to specific strategies and actions. The Trade Canada Summit is raising expectations and all are committed to motivating a call to action across major stakeholders engaged in international commerce. While Canadians like to refer to the country as a “trading nation”—partly because of history and partly because of the large impact of trade on the Canadian economy today, leading practitioners and senior officials recognize several truths: Your role Canadian trade is highly concentrated in import/export activities with the United States Certain industry sectors such as automotive and resource-based businesses account for a disproportionately large amount of Canada’s trade Intra-company trade—transfers of resources between affiliated companies—is an important part of Canada’s “export” business The hard reality being confronted, and one which serves as a critical backdrop for this meeting, is the realization that by current standards, Canada does NOT qualify...
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...When thinking of Canada, poverty seldom comes to the forefront of the mind. Indeed, the United Nation’s annual Human Development Report—which ranks countries by quality of living conditions—designated Canada as tenth place out of nearly two hundred countries (2016). However, this does not mean that poverty is not a problem—it simply indicates that Canada fares better in comparison to most other countries. More extreme forms of absolute poverty—referring to the lack of basic needs such as food, shelter, and water—may be absent or minimal, but relative poverty still exists as a serious issue, as it reveals the disparities between various incomes of citizens. In essence, while an entire population may see a rise in their incomes due to their society...
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