Marketing Assignment #1 - Canadian Tire Case Study PDF

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Case Study for Canadian Tire and their marketing strategy, positioning strategy, customer values, buyer decision process, image differentiation,...

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MKT 819 – Introduction to Marketing C23

Assignment #1 - Canadian Tire

For: Rav Bhathal

By: Lisa Long Student I.D. 400161438

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1. Buyer Decision Process With Canadian Tire (CTC) brands spanning products and services from automotive, electrical supplies, to household items like appliances, cleaning supplies, as well as lawn and garden supplies, or sporting goods, it is possible that buyers could recognize a need or multiple needs that Canadian Tire could provide a product or service for. Once the need is recognized and the consumer starts to obtain information about their need and evaluate the alternatives, they will find that Canadian Tire prides itself on being designed for Canadian life, they offer rewards to their loyal customers, and have 1,700 locations offering convenience and outstanding customer service.

We all know that living in Canada means finding the right product or service that will fit the demand of our extreme seasonal climates. Canadian Tire has a marketing campaign that is solely focused on just that. I feel as though being marketed as the home-grown company that can offer products built to withstand the test of time gives Canadian Tire an advantage over their competition. Canadian Tire is known for supporting local communities, just recently the Canadian Tire in Belleville, Ontario donated One hundred Thousand Dollars to the Belleville General Hospital as a part of their Be Well campaign. Canadian Tire Jumpstart Charity is a national charitable organization that promotes sports and physical activities among children. The great part of the Jumpstart Charity is that all money donated to this charity stays within the community that the donation was made. They help children in your very own community get into organized sports by paying registration fees or purchasing sporting equipment. Jumpstart has also been working with the Toronto Housing Corporation within low-income communities and has transformed eight communities across the GTA adding health centres and athletic courts to promote health and exercise.

Rewards programs alone can often influence a customers’ buying decision. Canadian Tire has a rewards program called Triangle. Triangle has replaced the good old Canadian Tire money we all remember growing up, and its great. They have made it easier for their customers to collect and spend points on anything they want within their brands. Customers can collect points at any Canadian Tire store, Canadian Tire gas station, Husky gas station, SportChek and Marks Clothing store. On top of offering points, their customers also have the flexibility of no-receipt returns. If you swipe your rewards card at the time of purchase, then there is no need to hang on to those paper receipts.

Brand recognition is another way that Canadian Tire influences consumers to shop with them. We have all heard of Mastercraft, and Mastercraft Maximum products over the years. I believe they have made a great name for themselves by backing their products with

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an amazing warranty program. Most Mastercraft products offer lifetime warranties, they always promote products free from defect, and even have 90-day satisfaction guarantee to make sure your item is what you like. This is great news for professionals and DIYers alike. Other brands like WindRiver Clothing have a reputation of great quality for Canadian climates. They offer casual and work apparel making their commitment to be the best products that stand up to the wear and tear of everyday life. With fantastic warranties and refund policies, even if the customer is unsatisfied with their purchase, I feel the level of customer service provided by Canadian Tire would result in a satisfied customer.

2. Needs, Wants, and Demands According to Armstrong (2020) “Consumers’ needs and wants are fulfilled through market offerings – some combination of products, services, information, or experiences offered to a market to satisfy a need or want.” (pg.7) Canadian Tire demonstrates that it understands its customers through many different avenues. In 1994 they brought in Business Intelligence and are analyzing data from retail stores POS data to examine the product sold and maintain the customer demand. In an interview with Susan O’Brian, Chief Brand and Customer Officer for CTC, (2019) she states that “Triangle Rewards was developed to attract new customers, increase engagement and relevance, and create more loyal lifetime customers. It is enabling us to do this because it provides such rich data, informing a single view of our customers and their needs, wants and preferences.” This has further developed their long-term relationships.

People want particular brands, products, or services that satisfy their needs. Canadian Tire has a great reputation for quality products and services that you can not find anywhere else. Mentioning again their Mastercraft brand, it has been a household name for many years and is only available at Canadian Tire. Motomaster was created in 1933, this brand was created for Canadians. It is built to withstand Canadian roads year-round and has proven to be reliable for many car owners. Other brands like Helly Hansen, a leading global brand in sportswear and workwear based in Oslo, Norway, can be found at SportChek. Denver Hayes, Dakota and WindRiver are a few brands you can only find at Marks.

In this digital age, Canadian Tire is also online. The Triangle Rewards program has an app that allows you to view your rewards, and recent purchases. You can also shop online, they offer in-store pick up as well as delivery which assists in meeting the demand of their

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customers. With these being offered by their competitors, like Walmart, moving towards the demands of the digital age are a must to stay competitive.

3. Differentiation, Image Differentiation, and Positioning Strategy First class brands and market leading merchandising strategies differentiates Canadian Tire from its peers. Although retailers like Home Depot and Walmart would be in direct competition with Canadian Tire, CTC offers a more for the same value proposition attracting and maintaining its customer relationships. CTC Gas+ stations and Marks are amongst the largest independent gasoline and leading apparel and footwear brand retailers in Canada. Canadian Tire has also acquired Party City, Canada’s #1 party supply and celebration destination, SportChek, PartSource, Atmosphere, National Sports, ProHockey Life, Sports Experts, Canadian Tire Financial and CT Reit. They have multiple targeted segments. When it comes to differentiation and positioning, Canadian Tire has chosen its three brands, Canadian Tire Gas and Retail, Marks, and Sport Check as its focus to serve the needs, wants and preferences of its target markets. Walmart offers many things that Canadian Tire offers, however, the quality of those products and services have less-than-optimal performance. Professional level tools with expert advice are not something you will be able to find at your local Walmart store. When comparing the quality of clothing offered by Marks, like the Denver Hayes or Wind River brands to the clothing found at Walmart, the George line, the difference is noticeable. However, the target demographic is also noticeably different. Walmart targets families, their George line ranges from infants to seniors. WindRiver and Denver Hayes are targeting the young professionals and adults alike with there comfortable casual and professional apparel. Seasonal items, such as gardening supplies would be on par with each other, and the quality of outdoor furnishings would offer a little more quality with a little higher price tag coming from Canadian Tire. Home Depot is another competitor to Canadian Tire. The average DIYer would be able to find comparable tools and supplies at both locations but Home Depot offers product in bulk as well to target the professional contractors and Canadian Tire does not. Seasonal items would also be on par with each other. When consumers choose between these two competing locations, I believe it would come down to the loyalty program that Canadian Tire has to offer their customers. Home Depot as well as Walmart do not offer customer loyalty programs, and I believe that the customer experience is lost without it. Canadian Tire markets itself for the Canadians in Canada through all its brands, and community programs. The US based moguls, Walmart, and Home Depot cannot compete at all.

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4. Customer Value and Customer Perceived Value Canadian Tire creates customer value by using their POS data to ensure their locations have the stock that is in demand for their customers. By creating a system that ensures inventory levels are meeting the needs of their customers they are in turn creating value for their customers. Not only do they stock items in demand, but CTC also offer those items at a fair price and offer customer service that exceeds the needs of their customers. In the store they display the weekly flyers with aisle numbers on the items to help customers navigate the store and find the items they would like to purchase. The customer can also view to-the-minute inventory, including aisle numbers, online prior to going to the store to make sure they are not making a trip to the store only to be disappointed. They can also check if it the stock is at a different location, depending on how much they need or want the item. Customers also have a perceived value when purchasing any of the Mastercraft tools or Mastercraft Maximum tools based on the warrantee that is offered. When a company can back their products with a warranty that satisfies the consumers’ wants, they create customer value and keep their customers engaged. Motomaster has been Canadian Tires automotive brand for centuries, most retail locations also have a garage attached to the retail store. When getting your car serviced at Canadian Tire you are guaranteed quality product being put into your vehicle and always receive an automated call back after appointments for you, as a customer, to provide feedback on your experience. If you desire, you can leave a message for a manager to call back and address any concerns you may have had over your visit. This is another way the Canadian Tire engages their customer and provides value to their visit. Triangle Rewards is their biggest investment when talking about creating customer value. The loyalty program gives personalized offers and discounts at more than just the Canadian Tire retail store. This is also a great way to promote the other marketed segments under the CTC Umbrella. Through the triangle app, they offer their customers bonus days, spend-and-get events, as well as contests exclusive to those who have the Triangle app. Leaving their customers feeling like they are in a VIP club full of bonuses tailored to their specific needs.

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REFERENCES Company information. (n.d.). Retrieved March 07, 2021, from https://www.marks.com/en/helpdesk/company-information/about-marks.html Cameron, A. (2021, March 05). Canadian tire Belleville owners make major donation TO BGHF CAMPAIGN. Retrieved March 07, 2021, from https://www.quintenews.com/2021/03/05/256967/ Madell, I. (2020, February 18). Interview with Susan O'BRIEN: How Canadian Tire stays as CANADA'S Strongest retail brand. Retrieved March 07, 2021, from https://level5strategy.com/canadian-tire-retains-title-canadas-strongest-retail-brandinterview-susan-obrian-svp-marketing-canadian-tire/ Purdue Writing Lab. (n.d.). General format // Purdue Writing lab. Retrieved March 07, 2021, from https://owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_gui de/general_format.html Consumer brands DIVISION. (n.d.). Retrieved March 07, 2021, from https://corp.canadiantire.ca/English/about-us/consumer-brands-division/default.aspx About us. (n.d.). Retrieved March 07, 2021, from https://corp.canadiantire.ca/English/aboutus/default.aspx Armstrong, G., Kotler, P., Trifts, V., & Dolansky, E. (2020). Marketing: An introduction 7th Edition. Harlow: Pearson....