eek 6

Applicable VLOs for This Weeks Case Study

6. Analyze a marketing situation and develop appropriate advertising recommendations and sales promotion.

Brief Introduction to This Weeks Case Study

A recent trend increased the demand for Made in Canada goods and services, Linda is eager to capitalize on this opportunity. Linda the general manager of THE TENDER TOUCH corporation, is thinking about increasing the amount of Made in Canada goods in his store from 20% to 50%, she will use the CREST framework to ensure, she is making the right decision.

This Weeks Detailed Case Study Information

THE TENDER TOUCH Corporation has numerous stores, and it cares for clients. The company carries out surveys to make sure clients are happy with what they are getting. It is an integral part of the companys strategic vision to cater for clients needs. Some board members consider this strategy a waste of money and time, but other board members believe that surveying is an essential part of doing business. Linda believes that surveys are important, and she takes surveys findings seriously, when she builds the companys strategic vision.

Recent surveys showed that clients are leaning towards Made in Canada products, and Linda is eager to capitalize on this opportunity. Linda knows that Made in Canada goods are not cheap, and thus stocking a lot of these goods could undermine competitiveness, but she believes clients are willing to pay a premium for a product which is made in Canada. Poor environmental policies in other countries, and the lack of ethics in other countries, caused clients to shy away from imported goods. Some clients stated that they are willing to pay extra, just to make sure that products are coming from sustainable, environmentally friendly companies.

Linda is aware that a lot of the products in THE TENDER TOUCH company stores, are not manufactured using sound environmental policies, because a lot of the countries manufacturing these products lack the proper legislation to take care of the environment. She was always a big supporter of Made in Canada products, but the fierce competition in the market place, left her no choice other than buying imported products. So, she sat down and analyzed the situation using the crest frame work, which is below.

CREST

Key Points

Competitive

The market place is highly competitive, from brick and mortar retail outlets, online retailers, and wholesalers.

Wholesalers recently started selling products to retail clients directly, thus skipping the middle man. Which lead to a lot of acquisitions, for example: Walmart acquired Sams Club a major wholesaler to overcome this issue.

Made in Canada products are 20-30% more expensive than other products.

Made in Canada products are usually sold by specialty stores.

Uncompetitive Made in Canada products are considered a niche market.

Regulatory

The government supports companies selling Made in Canada products.

Tax breaks for selling Made in Canada products.

Its expected that the government will impose stringent regulation on unethically produced imported goods and services.

Economic

The Economy is growing steadily.

Consumer spending is increasing.

Interest rates are expected to increase gradually over the coming years.

Housing market remains overvalued.

Durable consumer goods sales are increasing. Non-durable consumer goods sales are also increasing.

Social, Environmental and Demographic

Made in Canada products are gaining popularity.

The Canadian consumer is generally demands higher quality products, and better service.

Consumers are moving away from goods which are polluting the environment.

Sustainable Eco-friendly products are preferred by consumers.

Ethnic diversity is increasing rapidly.

Aging population.

Retirees are expected to increase in numbers over the coming years.

Increased life expectancy.

Technological

A lot of companies are starting to use artificial intelligence as a part of their marketing and promotion strategy.

Smart products are capturing a higher share of the market.

Double digit growth in e-commerce.

THE TENDER TOUCH company is mid-sized corporation which is located in Ontario. The company operates through a small network of stores throughout southern Ontario.

Deliverables, Format and Marking Scheme for This Weeks Case Study

Your task is:

1% analyze and comment on the current market situation.

1% based on your analysis recommend the best course of action, in regard to the Made in Canada products and identify the unique selling proposition.

3% develop an appropriate advertising and sales promotion strategy for Made in Canada products.

Note: You can use data from external sources, and you can assume any required information in order to solve this case. Clearly state your assumptions in your submissions. Summarize your findings in a two-page Microsoft Word Documen