International Marketing Assignment

By: Ambuj Rai Roll no.: 2010014

Country Notebook of Canada

The Country NotebookA Guide for Developing a Marketing Plan

The Country Notebook Outline (Click here for more information about the Country Notebook.) I. Cultural Analysis II. Economic Analysis III. Market Audit and Competitive Market Analysis IV. Preliminary Marketing Plan

I. Cultural Analysis writing guide

Guideline I. Introduction writing guide

Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. Spanning over 9.9 million square kilometres, Canada is the world's second-largest country by total area, and its common border with the United States is the longest land border in the world. Canada is a federal state that is governed as a parliamentary democracy and a constitutional monarchy with Queen Elizabeth II as its head of state. It is a bilingual nation with both English and French as official languages at the federal level. One of the world's most highly-developed countries, Canada has a diversified economy that is reliant upon its abundant natural resources and upon trade particularly with the United States, with which Canada has had along and complex relationship.

II.

Brief discussion of the countrys relevant history writing guide

III.

Geographical setting writing guide

Canada occupies a major northern portion of North America, sharing the land borders with the contiguous United States to the south and the US state of Alaska to the northwest.

A. Location writing guide Canada stretches from the Atlantic Ocean in the east to the Pacific Ocean in the west; to the north lies the Arctic Ocean. By total area (including its waters), Canada is the second-largest country in the world, after Russia. By land area alone, Canada ranks fourth.

B. Climate writing guide Average winter and summer high temperatures across Canada vary from region to region. Winters can be harsh in many parts of the country, particularly in the interior and Prairie provinces, which experience a continental climate, where daily average temperatures are near 15 C (5 F), but can drop below 40 C(40 F) with severe wind chills. In noncoastal regions, snow can cover the ground for almost six months of the year, while in parts of the north snow can persist year-round. Coastal British Columbia has a temperate climate, with a mild and rainy winter. On the east and west coasts, average high temperatures are generally in the low 20s C (70s F), while between the coasts, the average summer high temperature ranges from 25 to 30 C (77 to 86 F), with temperatures in some interior locations occasionally exceeding 40 C (104 F). C. Topography writing guide The country lies between latitudes 41 and 84N, and longitudes 52 and 141W. Since 1925, Canada has claimed the portion of the Arctic between 60and 141W longitude. Canada is home to the world's northernmost settlement, Canadian Forces Station Alert, on the northern tip of Ellesmere Island latitude 82.5N which lies 817 kilometres (508 mi) from the North Pole. Much of the Canadian Arctic is covered by ice and permafrost. Canada has the longest coastline in the world, with a total length of 202,080 kilometres (125,570 mi), additionally, its border with the United States is the world's longest land border, stretching over 8,890 kilometres (5,520 mi).

IV.

Social institutions writing guide

A. Family writing guide

1. The nuclear family

Canada's statistics is based on couple families, with or without children, and lone-parent families.

2. The extended family The Canadian generally dont follow the concept of extended family 3. Dynamics of the family a. Parental roles The Canadian is based on concept of couple family, with or without children ,and lone parents

b. Marriage and courtship Most people follow the culture of marriage

4. Female/male roles (changing or static?)

Female are taking more and more parts in various fields in the country

B. Education writing guide Education in Canada is for the most part provided publicly, funded and overseen by federal, provincial, and local governments. Education is within provincial jurisdiction and the curriculum is overseen by the province. Education in Canada is generally divided into primary education, followed by secondary education and post-secondary. Within the provinces under the ministry of education, there are district school boards administering the educational programs. Education is compulsory up to the age of 16 in every province in Canada, except for Manitoba, Ontario and New Brunswick, where the compulsory age is 18. 1. The role of education in society Elementary, secondary, and post-secondary education in Canada is a provincial responsibility and there are many variations between the provinces. Some educational fields are supported at various 4

levels by federal departments. The Department of Indian and Northern Affairs Canada is responsible for the education of First Nations. Vocational training can be subsidized by the Learning branch of Human Resources and Skills Development Canada (a federal department). a. Primary education (quality, levels of development, etc.) Starting at grade one, at age six or seven, there is universal publicly funded access up to grade twelve (or equivalent). Dependent on the province the age of mandatory entry is at 47 years. Children are required to attend school until the age of sixteen (eighteen in Ontario and New Brunswick). Primary education and secondary education combined are sometimes referred to as K-12 (Kindergarten through Grade 12). It should be noted that this structure can vary from school to school, and from province to province). Education is compulsory up to the age of 16 in every province in Canada, except for Ontario and New Brunswick (where the compulsory ages are 18). Students may continue to attend high school until the ages of 19 to 21 (the cut-off age for high school varies between province). Those 19 and over may attend adult school. Also if high schoolers are expelled or suspended for a period of time over 2 months or so they could attend night school at the high school. b. Secondary education (quality, levels of development, etc.) Secondary education in Quebec continues to Grade 11 (Secondary V), and is typically followed by college, a two year pre-university (university for Quebecers is three years, except Engineering), or three year vocational program taken after high school. (see Education in Quebec). c. Higher education (quality, levels of development, etc.) Nearly all post-secondary institutions in Canada have the authority to grant academic credentials (i.e., diplomas or degrees). Generally speaking, universities grant degrees (e.g., bachelor's, master's or doctorate degrees) while colleges, which typically offer vocationally-oriented programs, grant diplomas and certificates. However, some colleges offer applied arts degrees that lead to or are equivalent to degrees from a university. Private career colleges are overseen by legislative acts for each province, For example in British Columbia training providers will be registered and accredited with the (PCTIA) Private Career Training Institutions Agency regulated under the Private Career Training Institutions Act (SBC 2003) Each province with their own correlating agency. Unlike the United States, there is no "accreditation body" that oversees the universities in Canada. Universities in Canada have degree-granting authority via an Act or Ministerial Consent from the Ministry of Education of the particular province. In most cases, bachelor's degree programs in Quebec are three years instead of the usual four; however, in many cases, students attending a university in Quebec that did not graduate from college must complete an additional year of coursework. When Ontario had five years of high school, a three-year bachelor's degree was common, but these degrees are being phased out in favour of the four-year degree. 2. Literacy rates About one out of ten Canadians does not have a high school diploma one in seven has a university 5

degree the adult population that is without a high school diploma is a combination of both immigrant and Canadian-born. In many places, publicly-funded high school courses are offered to the adult population. The ratio of high school graduates versus non diploma-holders is changing rapidly, partly due to changes in the labour market that require people to have a high school diploma and, in many cases, a university degree. C. Political system writing guide The politics of Canada function within a framework of parliamentary democracy and a federal system of parliamentary government with strong democratic traditions. Canada is a constitutional monarchy, in which the Monarch is head of state. 1. Political structure The country has a multi-party system in which many of its legislative practices derive from the unwritten conventions of and precedents set by Great Britain's Westminster Parliament. However, Canada has evolved variations: party discipline in Canada is stronger than in the United Kingdom and more parliamentary votes are considered motions of confidence, which tends to diminish the role of non-Cabinet Members of Parliament (MPs).

2. Political parties The two dominant political parties in Canada have historically been the Liberal Party of Canada and Conservative Party of Canada (or its predecessors), and as of the 2011 election the social-democratic New Democratic Party (NDP) has risen to prominence. Smaller parties like the Quebec nationalist Bloc Qubcois and the Green Party of Canada can exert their own influence over the political process.

3. Stability of government The monarchy is hereditary. The Governor General is appointed by the monarch on the advice of the Prime Minister for a non-specific term, though it is traditionally approximately five years.

4. Special taxes These are special taxes taken up by the Government

5. Role of local government Local government makes all the rules and regulation in Canada D. Legal system writing guide The court system of Canada is made up of many courts differing in levels of legal superiority and separated by jurisdiction. Some of the courts are federal in nature while others are provincial or territorial. The Canadian constitution gives the federal government the exclusive right to legislate criminal law while the provinces have exclusive control over civil law. The provinces have jurisdiction over the administration of justice in their territory. Almost all cases, whether criminal or civil, start in provincial courts and may be eventually appealed to higher level courts. The quite small system of federal courts only hear cases concerned with matters which are under exclusive federal control, such as federal taxation, federal administrative agencies, intellectual property and certain aspects of national security. The federal government appoints and pays for both the judges of the federal courts and the judges of the superior-level court of each province. The provincial governments are responsible for appointing judges of the lower provincial courts. 1. Organization of the judiciary system Canada's court system is a four-level hierarchy as shown below from highest to lowest in terms of legal authority. Each court is bound by the rulings of the courts above them; however, they are not bound by the rulings of other courts at the same level in the hierarchy. The Canadian system has y y y Provincial Courts Superior Courts Supreme Court of Canada 2. Code, common, socialist, or Islamic-law country? writing guide The country generally follow the common code but they follow the culture of Christianity 3. Participation in patents, trademarks, and other conventions writing guide

4. Marketing Laws writing guide

E. Social organizations writing guide An informal network of non-profit community organizations across Canada. The work of social planning organizations (also referred to as Social Planning Councils) focuses on a range of community development and social justice issues. 1. Group behavior The general purpose of social planning organizations is to help build and strengthen community Social planning organizations may undertake a variety of activities, including: y Conducting social research y Policy analysis and development y Planning, convening and collaborating y Community mobilization, and y Advocacy 2. Social classes These generally consists of people from all class and high class, medium and low class people

3. Clubs, other organizations

4. Race, ethnicity, and subcultures These consists of people of different race and ethnicity and culture

F. Business customs and practices writing guide

V.

Religion and aesthetics writing guide

Religion is a collection of cultural systems, belief systems, and worldviews that establishes symbols 8

that relate humanity to spirituality and, sometimes, to moral values

A. Religion and other belief systems

1. Orthodox doctrines and structures

2. Relationship with the people

3. Which religions are prominent?

4. Membership of each religion

5. Any powerful or influential cults?

B. Aesthetics writing guide

1. Visual arts (fine arts, plastics, graphics, public art, colors, etc.) writing guide The various types of aesthetics in Canada are : 9

y y y

Spa education Hair styling education the popularity of cosmetic medical treatments

2. Drama, ballet, and other performing arts writing guide

3. Folklore and relevant symbols writing guide

VI.

Living conditions writing guide

A. Diet and nutrition writing guide

1. Meat and vegetable consumption rates

2. Typical meals

3. Malnutrition rates

4. Foods available

10

B. Housing writing guide Public housing in Canada is a federal, provincial, or local program designed to provide subsidized assistance for low-income and poor people. Increasingly provided in a variety of settings, public housing used to be one or more blocks of low-rise and/or high-rise housing operated by a government agency. 1. Types of housing available The type of Housing available in Canada Apartments Rooming house Semi-detached or duplex Singe-room occupancy Detached 2. Do most people own or rent? Canadians take care of their houses and gardens. Most Canadians want to eventually buy a home. When Canadians grow older, they often sell their houses and use the money from the sale to buy an apartment. Canadians do not expect people to visit without invitation.

3. Do most people live in one-family dwellings or with other families?

C. Clothing

1. National dress Canada does not have a traditional or national dress as such. In the northern regions, or frankly anywhere it gets cold, Canadians wear parkas, long john's (an undergarment, basically long underwear), tuques (woolen caps), scarves, ear muffs, and various jackets that can be made with down lining or leather 2. Types of clothing worn at work 11

Inuit and other Native Indians have their own highly developed traditional wear that is made of leather skins and furs. Some Canadians own moccasins for use as slippers or around the yard outdoor wear. In the summer most anything goes, Canadians just want to stay cool as it can get quite hot. Stereotypically, Canadians are associated with plaid jackets, or "lumberjack shirts" which are in fact used in the country and by hunters and in more remote regions whose inhabitants are more concerned with staying alive and warm than being fashionable. Traditional clothing includes socks, leggings, ojibwa shirts, trousers, moccasins or boots, gloves, mittens, and parkas.

D. Recreation, sports, and other leisure activities writing guide

1. Types available and in demand

2. Percentage of income spent on such activities

E. Social security writing guide The Old Age Security pension is a taxable monthly social security payment available to most Canadians 65 years of age or older. As of July, 2011, the basic amount is C$533.70 per month. At tax time, recipients with 2010 incomes over C$67,668 must pay back a portion of their Old Age Security at a rate of 15% of net income. This is often referred to as a clawback. The OAS pension is fully clawed back for people with incomes over C$110,038. Canada has social security agreements with a number of countries. These agreements may allow a person who has lived in Canada and another country (for example, the U.S.), to count years spent in the other country to qualify for the OAS pension. F. Health care Health care in Canada is delivered through a publicly-funded health care system, which is mostly free at the point of use and has most services provided by private entities. It is guided by the provisions of the Canada Health Act. The government assures the quality of care through federal standards. Canada's provincially-based Medicare systems are cost-effective partly because of their administrative 12

simplicity. Private insurance is only a minimal part of the overall health care system. Competitive practices such as advertising are kept to a minimum, thus maximizing the percentage of revenues that go directly towards care. A health card is issued by the Provincial Ministry of Health to each individual who enrolls for the program and everyone receives the same level of care.There is no need for a variety of plans because virtually all essential basic care is covered, including maternity and infertility problems. Health coverage is not affected by loss or change of jobs, as long as premiums are up to date, and there are no lifetime limits or exclusions for pre-existing conditions. Pharmaceutical medications are covered by public funds for the elderly or indigent, or through employment-based private insurance. Drug prices are negotiated with suppliers by the federal government to control costs. Family physicians are chosen by individuals. If a patient wishes to see a specialist or is counseled to see a specialist, a referral can be made by a GP. Preventive care and early detection are considered important and yearly checkups are encouraged. Early detection not only extends life expectancy and quality of life, but cuts down overall costs. VII. Language writing guide

A. Official language(s) writing guide English and French are recognized by the Constitution of Canada as "official languages." This means that all laws of the federal government are enacted in both English and French and that federal government services must be available in both languages. B. Spoken versus written language(s) A multitude of languages are used in Canada. According to the 2006 census, English and French are the mother tongues of 58.8% and 23.2% of Canadians respectively. New Brunswick is the only Canadian province that has both English and French as its official languages. Quebec's official language is French. English and French are recognized by the Constitution of Canada as "official languages." This means that all laws of the federal government are enacted in both English and French and that federal government services must be available in both languages.

C. Dialects writing guide

VIII. Executive summary writing guide 13

IX.

Sources of information The Sources of information is Internet.

X.

Appendixes

II. Economic Analysis writing guide

Guideline I. Introduction

Canada has the tenth largest economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Cooperation and Development (OECD) and Group of Eight (G8). As with other developed nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. Canada also has a sizable manufacturing sector, centered in Central Canada, with the automobile industry especially important. II. Population writing guide

The historical growth of Canada's population is complex and has been influenced by several factors, such as indigenous populations, expansion of territory, and human migration. Being a New world country, Canada has been predisposed to be a very open society with regards to immigration, which has been the most important factor in its historical population growth. A. Total writing guide Canadians make up 0.5% of the world's total population .Canada's current annual population growth rate is 1.238%, or a daily increase of 1,137 individuals. Natural growth accounts for an annual increase of 137,626 persons, at a yearly rate of 0.413%. 1. Growth rates

14

Canada's current annual population growth rate is 1.238%, or a daily increase of 1,137 individuals. 2. Number of live births In 2009, the total population of Canada is 33,894,000 persons

B. Distribution of population writing guide The country's largest self-reported ethnic origin is Canadian (accounting for 32% of the population), followed by English (21%), French(15.8%), Scottish (15.1%), Irish (13.9%), German (10.2%), Italian (4.6%), Chinese (4.3%), First Nations (4.0%), Ukrainian (3.9%), and Dutch (3.3%).The leading emigrating countries to Canada were China, Philippines and India. By 2031, one in three Canadians could belong to a visible minority group 1. Age The mandatory school age ranges between 57 to 1618 years, contributing to an adult literacy rate of 99%. In 2002, 43% of Canadians aged 25 to 64 possessed a post-secondary education; for those aged 25 to 34, the rate of post-secondary education reached 51%. 2. Sex The population consists of both Male & Female 3. Geographic areas (urban, suburban, and rural density and concentration) The majority of Canadians (approximately 80%) live in urban areas concentrated in the Quebec City Windsor Corridor, the BC Lower Mainland, and the CalgaryEdmonton Corridor in Alberta. In common with many other developed countries, Canada is experiencing a demographic shift towards an older population, with more retirees and fewer people of working age. 4. Migration rates and patterns

15

III.

Economic statistics and activity writing guide

Canada has the tenth largest economy in the world (measured in US dollars at market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for Economic Cooperation and Development (OECD) and Group of Eight (G8). As with other developed nations, the Canadian economy is dominated by the service industry, which employs about three quarters of Canadians.[9] Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. Canada also has a sizable manufacturing sector, centered in Central Canada, with the automobile industry especially important. A. Gross national product (GNP or GDP)

1. Total Canada has the GDP of $1.758 trillion in the year 2011 2. Rate of growth (real GNP or GDP) Canada has the GDP growth rate of 2.4% in the year 2011

B. Personal income per capita writing guide The per capita income of Canada is around $ 40,300 C. Average family income Families had median market income of $74,900. Senior families, those in which the major income earner was aged 65 or over, earned $35,500 in median market income, compared with $82,500 for all other families. Unattached individuals had $31,300 in median market income. D. Distribution of wealth

16

1. Income classes The country consist of people from middle class and people from higher class 2. Proportion of the population in each class

3. Is the distribution distorted?

E. Minerals and resources writing guide Natural Resources Canada (NRCan) works to ensure the responsible development of Canada's natural resources, including energy, forests, minerals and metals. NRCan also uses its expertise in earth sciences to build and maintain an up-to-date knowledge base of our landmass and resources."To promote internal collaboration, NRCan has implemented a departmental wide wiki based on Media Wiki. Natural Resources Canada also collaborates F. Surface transportation writing guide

1. Modes The various modes of Transports available in Canada are Airports Seaports Railway Road transportation 2. Availability There are all types of Transportation medium present in Canada such as rail , roads , airways, seaports 3. Usage rates

17

The rail and road transportation are among the highest used Transportation Network in Canada 4. Ports

G. Communication systems writing guide

1. Types Canada has excellent communications. Canada has one of the world's highest levels of universal telephone service. Canadian communication systems include satellite communications, national data networks, optical fibre networks, cellular telephony, cable TV, and virtually universal Internet access. 2. Availability Communications have always played a large role in Canadian affairs and the subject of continuous study and government support. Since the creation of Canada's domestic satellite system, telecommunications has been front and centre in the nation's scientific and industrial policies. In fact, it is the current policy of the Government of Canada to make Canada the most connected country in the world. 3. Usage rates Canada had the world's first commercial telephone system and North America's first mobile telecommunications system. JANET, the first commercial meteor-burst communication system was Canadian. Canada had the Western world's first domestic satellite communications system. Canada had the world's first nation-wide digital data network. Canada has the world's largest contiguous cellular telephone network. Canadians have greater access to cable television service than the people of any other nation. Canada now has nation-wide fibre optic links.

H. Working conditions writing guide

1. Employer-employee relations

18

The Canada follows a better Employer- employee relationship 2. Employee participation Employees take participation in all activities in Canada. The government has provided them with the right to form a Union, Except those of the government employees. As a Canadian employee, you are protected by very strict employment laws that govern work hours, minimum wages and working conditions. 3. Salaries and benefits The average salary in Canada depends on what kind of job you are doing and what level of qualifications you have obtained. The average salary for a degree holder in Canada is approximately $55,000. The average working hours are between 35 to 40 hours a week with the majority of work being conducted between Monday to Friday During the first few years with most Canadian employers, you will be allowed 10 Holiday days a year and thereafter 15 to 20 holiday days. . I. Principal industries

1. What proportion of the GNP does each industry contribute?

2. Ratio of private to publicly owned industries In Canada, state-owned corporations often use the style Crown corporation, indicating that an organization is established by law, owned by the sovereign, and overseen by parliament and the Cabinet. Former crown corporations before their privatization include Air Canada, St. Lawrence Seaway Authority, and Petro-Canada. Crown Corporations also exist at the provincial level in Canada. Saskatchewan has maintained the largest number of crown corporations, including Sask Energy, Sask Power, SaskTel, SaskWater, and Saskatchewan Government Insurance. Crown corporations of British Columbia include BC Hydro, BC Ferries, and the British Columbia Lottery Corporation. Privatization, or the selling of crown corporations to private interests, is very common throughout Canada. Petro-Canada, Canadian National Railway, and Air Canada are examples 19

of former federal crown corporations that have been privatized. At the provincial level, privatized former crown corporations include Alberta Government Telephones (which merged with privately owned BC Tel to form Telus), BCRIC, Manitoba Telecom Services, and Potash Corporation of Saskatchewan which retained its name and has become the world's largest producer of potash. J. Foreign investment writing guide

1. Opportunities? When considering business expansion or new North American investment opportunities, Canada should be top of mind as your investment destination of choice. The amount for the year 2010 is 299 million dollars 2. Which industries? Aerospace: Ag-biotech Automotive: Bio-Products: Business Services: Chemicals: Digital Media Games: K. International trade statistics writing guide

1. Major exports

y y y y y

Petroleum products 64 billion $ Passenger vehicles (cars & Vans) 37 billion $ Car parts & accessories 16 Billion $ Aluminum products 8 billion $ Lumber 7 billion $

a. Dollar value The exchange rate for Canadian dollar is 1.021 b. Trends

20

Real gdp was unchanged in october,falling short of market forcast for 0.1% increase.Unseasonable weathe accounted for 1.5% output in utilities output with demand for eletricity and natural gas decreasing 2. Major imports

a. Dollar value

b. Trends

3. Balance-of-payments situation

a. Surplus or deficit? There is a negative value of -50,864 b. Recent trends The balance of payment is negative as total receipt is 547141 and the total payment is 598005

4. Exchange rates writing guide The exchange rate is conversion of Canadian dollars using the current day's exchange rates. a. Single or multiple exchange rates? Replaces the C-6 index as the Bank's new measure of the value of the Canadian dollar vis-a-vis the currencies of its most important trading partners. b. Current rate of exchange

L. Trade restrictions writing guide 21

1. Embargoes Certain organizations and individuals are subject to trade sanctions, embargoes and other restrictions under U.S. law. Embargoed or Otherwise Restricted Destinations, Organizations, or Individuals are: 2. Quotas Office of Foreign Assets Control OFAC Targeted Sanctions Countries and Territories Countries with restricted entities on the EAR Entity Chart

3. Import taxes Canadian import duties is the amount of tax or tariff paid while importing goods into Canada. The Canada Border Services Agency collects the tariff on all imported goods. According to the North American Free Trade Agreement, there is no duty to be paid if the goods are for personal use and "the goods are marked as made in the United States, Canada or Mexico, or the goods are not marked or labelled to indicate that they were made anywhere other than in the United States, Canada or Mexico. Canadians also have to pay the federal goods and services tax and in most provinces provincial sales tax on the imported goods. 4. Tariffs The Customs Tariff is based on the World Customs Organization's (WCO) Harmonized Commodity Description and Coding System (HS). The CBSA also offers advance rulings for tariff classification which provide binding, written advice as to the classification of a product. 5. Licensing There are various restrictions provided by the government for which licensing is essential

22

M. Extent of economic activity not included in cash income activities writing guide

1. Countertrades A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, (in New York City any convenience store is referred to as a bodega), is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and wire transfer services. They differ from general stores and village shops in that they are not in a rural location, and are used as a convenient supplement to the main shopping rather than being the main store. a. Products generally offered for countertrading The most common type of foods offered in convenience stores are breakfast sandwiches and other breakfast food Some stores have a delicatessen counter, offering custom-made sandwiches and baguettes. Others have racks offering fresh delivered or baked doughnuts from local doughnut shops. Some stores have a self-service microwave oven for heating purchased food.

b. Types of countertrades requested (i.e., barter, counterpurchase, etc.)

2. Foreign aid received writing guide By the mid-1980s, Canadian federal and provincial government funding of NGO work amounted to between $200 and $250 million (or 10-12% of total foreign aid), with at least an equivalent amount raised from private sources. At the same time, there has been a tremendous expansion in the number of NGOs - now about 250, including not only the traditional voluntary aid agencies but also colleges and universities, co-operatives, professional associations, and unions. N. Labor force

1. Size

23

The Canadian lab our force is 18.53 million in 2010 2. Unemployment rates The Unemployment rate of Canada is 7.2 % in 2011 O. Inflation rates writing guide The Inflation rate of Canada is 1.6% in 2010 The inflation rate year over year was 2.8936% (compared to 2.8961% for the previous month). Inflation from October 2011 to November 2011 was 0.0828% IV. Developments in science and technology

A. Current technology available (computers, machinery, tools, etc.)

The first houses in Canada were constructed at Port Royal on the Annapolis River in what is now Nova Scotia in 1605. The new arrivals also brought new eating habits. Meat from animals such as cows, sheep, chickens and pigs was common as were new types of fruits and vegetables. These items were eaten fresh but could be stored for later consumption if salted, pickled or frozen. Grain was ground to flour at the local grist mill and baked in the home oven with yeast to make bread. Hopps, grain and fruit were fermented to make beer, hard alcohol and wine. Meals were served on pewter or china plates and eaten with a metal knife, fork and spoon. The places were set on a simple wooden table with wooden chairs often made by the man of the house. Musical instruments did much to enliven the colonial life. In the well known documents The Jesuit Relations, there is reference to the playing of the fiddle in 1645 and the organ (music) in 1661. Quebec City boasted of Canada's first piano in 1784. B. Percentage of GNP invested in research and development

C. Technological skills of the labor force and general population writing guide The population of Canada is more towards the technology development 24

V.

Channels of distribution (macro analysis) writing guide

Retail trade is the sale of goods or services to consumers for personal or household use. Consumer spending through the retail trade accounts for 60% of the Gross Domestic Product of Canada and employs over one million people. Statistics Canada recognizes some 206 300 retail outlets in Canada, primarily shops, car dealers, supermarkets and department stores, but the number does not include street vendors, farmers' markets, roadside stands or the growing A. Retailers writing guide

1. Number of retailers There are 2 broad categories of retail-trade organization: retail chains, which operate 4 or more stores in the same kind of business under the same ownership, and independent retailers operating 1 to 3 stores. By Statistics Canada definition, all department stores are chains, and chains dominate variety stores , family shoe stores and general merchandise stores. There is, however, an increasing proportion of independent retailers operating under franchises. These franchising arrangements allow the independents to gain the economies of scale in buying and marketing power that have traditionally been the strength of the chains 2. Typical size of retail outlets The size of retail outlets in Canada depend upon the decision of the retailers 3. Customary markup for various classes of goods

4. Methods of operation (cash/credit) The retail store works on the basis of cash as well as credit policy 5. Scale of operation (large/small) Over 95% of national sales by garages, used car dealers, motor vehicle dealers and florists are made by independent retailers. There is, however, an increasing proportion of independent retailers operating under franchises. These franchising arrangements allow the independents to gain the economies of scale in buying and marketing power that have traditionally been the strength of the chains. Some of the largest corporations in Canada are retail chains 25

6. Role of chain stores, department stores, and specialty shops The franchising arrangements allow the independents to gain the economies of scale in buying and marketing power that have traditionally been the strength of the chains. Some of the largest corporations in Canada are retail chains. By 1991 it was estimated that the 1106 chains in the country controlled about 38 650 stores accounting for over 40% of all retail sales. The largest chains (100 or more stores) account for almost one half of the chain stores in the country, and for 50.1% of the chain store sales. Most of the largest chain organizations are headquartered in either Toronto or Montral. Department stores are huge emporiums selling a wide variety of goods.. Statistics Canada distinguishes major ("traditional") department stores from junior department stores, the latter selling the same wide range of goods as major department stores, but are popularly described as discount operations. The junior department category does not include all discount operations. Of the 312 major department stores in Canada in 1994, 188 (60%) are in the 10 largest metropolitan areas. Traditional department stores in the 1980s were experiencing a loss in market share to discount operations who offered lower prices and more flexible financing for such items as furniture and appliances, and to specialty retailers who offered better quality service. The Specialty Store consists of stores dealing with one kind of products only. B. Wholesale middlemen writing guide

1. Number and size The number of Wholesaler in the Supply Chain varies from one chain to the other 2. Customary markup for various classes of goods

3. Method of operation (cash/credit) The retail store works on the basis of cash as well as credit policy C. Import/export agents

26

Import/Export agents are the person who provide the export and the import function in Canada

D. Warehousing

International Storage & Warehouses provides users with information on companies in the field of expertise in warehousing and storing in Canada. Various products are stored in various locations in Canada in different warehouses.

E. Penetration of urban and rural markets writing guide The majority of Canadians (approximately 80%) live in urban areas concentrated in the Quebec City Windsor Corridor, the BC Lower Mainland, and the CalgaryEdmonton Corridor in Alberta. In common with many other developed countries, Canada is experiencing a demographic shift towards an older population, with more retirees and fewer people of working age.

VI.

Media writing guide

A. Availability of media writing guide Canada has a well-developed media sector, but its cultural output particularly in English films, television shows, and magazines is often overshadowed by imports from the United States. Television, magazines, and newspapers are primarily for-profit corporations based on advertising, subscription, and other sales-related revenues. In the broadcasting sector, Canada has a government-funded broadcaster, the Canadian Broadcasting Corporation/Socit Radio-Canada, which operates radio and TV networks in English and French. As well, some provincial governments offer their own public educational TV broadcast services as well, such as Ontario's TV Ontario and Quebec's Tl-Qubec. Given Canada's small market and its position next to the dominant producer of feature films, the Canadian film industry receives substantial assistance from the government. In the 2000s, about half of the budget of a typical Canadian film came from various federal and provincial government sources. B. Costs

27

1. Television The Canadian television broadcasting industry is split between public and private ownership. Canada currently has 130 originating television stations, which broadcast on 1,456 transmitters across the country, on both the VHF and UHF bands. In addition to the public Canadian Broadcasting Corporation/Socit Radio-Canada, which operates both English and French television networks, there are four major private TV networks. CTV and Global broadcast in English, and are available throughout the country. Digital television is an emerging technology in Canada. 2. Radio Canada is served by almost 2000 radio stations, on both the AM and FM bands. As of 2010, the five largest major commercial radio broadcast groups in Canada are; Astral Media, Newcap Broadcasting, Rogers Communications, Corus Entertainment, and Bell Media. However, many smaller broadcasters operate radio stations as well. In recent years, a notable trend in Canadian radio has been the gradual abandonment of the AM band, with many AM stations applying for and receiving authorization from the CRTC to convert to the FM band. In some Canadian cities, in fact, the AM band is now either nearly or entirely vacant.

3. Print Almost all Canadian cities are served by at least one daily newspaper, along with community and neighborhood weeklies. In large cities which have more than one daily newspaper, usually at least one daily is a tabloid format. Bilingual cities like Montreal and Ottawa have important papers in both French and English. Canada currently has two major "national" newspapers, The Globe and Mail and the National Post. Le Devoir, though not widely read outside Quebec, is the French-language counterpart to the national newspapers.

4. Other media (cinema, outdoor, etc.) Most of Canada's film (and television) industry produces output geared towards mainstream North American audiences, with Alliance Atlantis and Lions Gate Entertainment in particular enjoying significant successes in recent years. Canada also produces films of a characteristically "Canadian" nature, and of all Canadian cultural industries, this segment of the film industry has the hardest time escaping the shadow of its (North) American counterpart. However, there is an established network of film festivals which also provide important marketing and audience opportunities for Canadian films. In addition to Toronto's film festival, the smaller Vancouver International Film Festival features films from around the world, and festivals in Montreal, Quebec and Greater Sudbury, Ontarioamong other citiesare also important opportunities for Canadian filmmakers to gain exposure among more 28

populist film audiences.

C. Agency assistance

D. Coverage of various media The Various types of media coverages are : y Television broadcasting y Cable television y Radio broadcasting y Newspapers y Motion pictures y Publishing y Magazines E. Percentage of population reached by each of the media

VII..

Sources of information Information is basically collected from the Internet

VIII. Appendixes

III. Market Audit and Competitive Market Analysis writing guide

Guideline I. Introduction writing guide

The Market Audit & Competitive Market Analysis tells whether the country is good for doing trade or for implementation of more foreign projects 29

II.

The product writing guide

A. Evaluate the product as an innovation as it is perceived by the intended market writing guide

1. Relative advantage writing guide Building a Strong Economy for Canadians . This plan will achieve a higher standard of living and better quality of life for Canadians as the world economy continues to transform. It is based on the core belief that Canada can be a world leader today and for future generations. The five Canadian advantages are: Tax Advantage Fiscal Advantage Entrepreneurial Advantage Knowledge Advantage Infrastructure Advantage: 2. Compatibility writing guide The market of Canada is very Compatible 3. Complexity writing guide There is no much complexity in the market as various products are sold in the market 4. Trialability writing guide

5. Observability writing guide The market of Canada is not changing very frequently but mostly depends upon the present condition

30

B. Major problems and resistances to product acceptance based on the preceding evaluation writing guide

III.

The market writing guide

A. Describe the market(s) in which the product is to be sold

1. Geographical region(s) The Quebec City Windsor Corridor, situated in Southern Quebec and Southern Ontario along the Great Lakes and the St. Lawrence River are the region where the product is to be sold 2. Forms of transportation and communication available in that (those) region(s) All types of transportation medium and Communication mediums are available in these regions 3. Consumer buying habits writing guide

a. Product-use patterns Products are used by the consumers according to the various instructions which are mentioned on the product b. Product feature preferences There are no product feature preferences are required in the country c. Shopping habits According to the study, E-commerce is going strong in Canada as Canadians are going online to shop 31

and research products. For companies willing to adapt their retail strategies and market their products through a variety of channels, including stores, catalogues and secure online environments, there are a wealth of opportunities 4. Distribution of the product writing guide

a. Typical retail outlets There are various retail outlets present in the country such as chain stores, specialty stores, franchising store concept b. Product sales by other middlemen Generally products are sold out by other mediums such as wholesalers, retailers, etc 5. Advertising and promotion writing guide

a. Advertising media usually used to reach your target market(s) There are various of advertising media used in the country such as radio, T.V., Newspaper, etc b. Sales promotions customarily used (sampling, coupons, etc.)

6. Pricing strategy

a. Customary markups

The price paid up by the manufacturer which is essential b. Types of discounts available There are various types of discount available to the manufacturers or to the wholesaler and retailers by the government of Canada 32

B. Compare and contrast your product and the competitions product(s) writing guide

1. Competitors product(s) writing guide

a. Brand name The name of the brand of the Competitor in Canada is Rite-Aid b. Features They are generally chain store and provide products at various location according to the need of the customers c. Package They generally use the various packaging materials which is used in packaging of the product such as plastics, silver foils ,etc 2. Competitors prices Competitors charges high price for the products as compared to the Discount Pharmaceuticals 3. Competitors promotion and advertising methods Competitor uses various methods of promotion or advertising such as radio, T.V, Newspapers, etc 4. Competitors distribution channels Competitors use various distribution channels such as chain stores, franchising, etc C. Market size writing guide

33

1. Estimated industry sales for the planning year The expected Industry sale for the country is around $72000 2. Estimated sales for your company for the planning year The expected sale of the company is around $60000 D. Government participation in the marketplace

1. Agencies that can help you

2. Regulations you must follow

IV.

Sources of information Information is collected by Internet

V.

Appendixes

IV. Preliminary Marketing Plan writing guide

Guideline 34

I.

The marketing plan

A. Marketing objectives writing guide

1. Target market(s) (specific description of the market) The Discount Pharmacy will have different strategies for the two different groups.The walk-in customers will be targeted through advertisements in the local paper, "TheOregonian." The advertisements will raise visibility for The Discount Pharmacy and their discountedprices. As the price of medication continues to skyrocket, The Discount Pharmacy will appeal tolocal people as a way to try to contain these rising costs. The mail order customers will be targeted through an advertising campaign in magazines and newsletters that have an older (over 55) crowd that regularly needs medication and knows in advance what their needs are. 2. Expected sales Expected Sale of Pharmaceuitical company is $72,494 3. Profit expectations Profit expectation of Pharma company is about 4% per year

4. Market penetration and coverage The profile for The Discount Pharmacy's customer consists of the following geographic,demographic, and behavior factors: Male and female. A larger percentage of people will be over 50. Many of the people are members of the AARP. Economically conscious of good deals. More than one medication at any one time. Are on a prescription that is a continual cycle, not ending once the malady is corrected. Know what they need and do not require extra services that some Pharmacists provide. B. Product adaptation or modification writing guide

35

1. Core component The Core Component is the drugs which are used by the Pharmaceutical Company 2. Packaging component The Packaging Component used by the Pharmaceutical Company is plastic rappers made up of silver foils 3. Support services component The Discount Pharmacy is a brick and mortar and mail order pharmacy that sells prescription medication at lower prices than other pharmacies. The Discount Pharmacy is able to gain economies of scale by selling larger quantities of drugs with less labor required per order. As more and more Americans are on a continuous prescription to medicine, this trend will lend itself to rapid growth as customers can mail order larger quantities of drugs that they will need over time. The Discount Pharmacy takes order on mail services C. Promotion mix

1. Advertising

a. Objectives The main objective of Discount Store is to provide the customers with the medical products at a lower cost b. Media mix The media mix used by the Discount store is mail order service, through which the various orders for Drugs is made in Canada c. Message To provide the people of Canada with the pharmaceutical products at lower cost 36

d. Costs Cost of the products is generally lower as compared to other pharma products in Canada 2. Sales promotions

a. Objectives The main objective of Sales promotion of Discount Pharmaceutical in Canada is to provide customers with pharma products at lower cost b. Coupons There is no coupons system available as most of the orders in Discount Pharmaceuticals is done by mail order service c. Premiums

d. Costs The cost incurred in Sales Promotion of Discount Pharmaceuticals is less as most of the sale is done on online via- mail services 3. Personal selling There is no personal selling done as most of the orders are fulfilled after the orders are received through mail 4. Other promotional methods The other promotional methods used are : y Through Advertising Media y Through Radio D. Distribution: From origin to destination writing guide

37

1. Port selection

a. Origin port Since most of the products of Discount Pharmacy are ordered on net, so they use a distribution centre where every product is kept and provided to the customer after receiving their order on mail b. Destination port The End Customer is the one who is considered to be as the final destination or destination port 2. Mode selection: Advantages/disadvantages of each mode

a. Railroads The Products used in Discount Pharmaceuticals are ordered through mail and then they are provided to the end customer at different locations according to their requirement . Railroads covers a large of area and sending products through this medium is cheapest. b. Air carriers Air carrier is also one of the important medium of transportation for the Discount Pharmaceuticals as they provide to products in quick span of time to customers in different locations. This is one of the expensive method used for transportation of products c. Ocean carriers This method is also one of the cheapest methods used. But most products which are used in Discount Pharmaceuticals are taken as well as transported to different parts of the country d. Motor carriers In this case, the products are transported through the different parts of the country which are near by. 3. Packing

38

a. Marking and labeling regulations The labeling regulations used by the Discount Pharmaceutical is that the composition of the salts as well as the manufacturing date of the product along with the expiry dates must be mentioned on the back of the products b. Containerization The products should be placed in air tight packing so the products do not damage or becomes wastage before final consumption. Products are also packed in order to undergo better transportation. c. Costs Some amount of total budget for marketing used up in packaging of the product 4. Documentation required

a. Bill of lading Bill of Lading consists of bill of material which are part of Discount Pharmaceutical products b. Dock receipt This consists of receipt which is collected when products are dispatched through sea medium c. Air bill This consists of the receipt of material when product is dispatched through the air medium d. Commercial invoice This consists of receipt of material when products are dispatched through the medium of road transportation e. Pro forma invoice This consist of detail description of products which are present in the Discount Pharmaceutical f. Shippers export declaration This consists of declaration made by the exporter while dispatching of goods by the sea medium 39

g. Statement of origin

h. Special documentation These are special documents which are required for transporting of Products through different medium 5. Insurance claims These consist of insuring the products which are transferred through various medium to different customers through different parts of the country so that if there is any damage in the product, the product owner is provided with the required amount in future so that he does not faces loss in the future

6. Freight forwarder writing guide This contains all information regarding sending the product through courier service

E. Channels of distribution (micro analysis) writing guide

1. Retailers

a. Type and number of retail stores There are 2 broad categories of retail-trade organization: retail chains, which operate 4 or more stores in the same kind of business under the same ownership, and independent retailers operating 1 to 3 stores. By Statistics Canada definition, all department stores are chains, and chains dominate variety stores, family shoe stores and general merchandise stores. There is, however, an increasing proportion of independent retailers operating under franchises. The size of retail outlets in Canada depend upon the decision of the retailers 40

b. Retail markups for products in each type of retail store

c. Methods of operation for each type (cash/credit) The retail store works on the basis of cash as well as credit policy d. Scale of operation for each type (small/large) Over 95% of national sales by garages, used car dealers, motor vehicle dealers and florists are made by independent retailers. There is, however, an increasing proportion of independent retailers operating under franchises. These franchising arrangements allow the independents to gain the economies of scale in buying and marketing power that have traditionally been the strength of the chains. Some of the largest corporations in Canada are retail chains

2. Wholesale middlemen

a. Type and number of wholesale middlemen The number of Wholesaler in the Supply Chain varies from one chain to the other b. Markup for class of products by each type

c. Methods of operation for each type (cash/credit) The retail store works on the basis of cash as well as credit policy d. Scale of operation (small/large) Scale of operation of wholesaler is large as the products are required at various destination of the country 3. Import/export agents

41

Import/Export agents are the person who provide the export and the import function of various products in Canada 4. Warehousing

a. Type The Warehousing are used at different locations within the country to provide the products at different locations at minimum cost and at less amount of time b. Location Different locations are selected for warehousing of products within the country F. Price determination writing guide

1. Cost of the shipment of goods These are the costs involved for transporting of products(goods) through the sea medium to various parts of the country

2. Transportation costs These consist of the cost of Transporting of Products at various locations in the country through the various mediums

3. Handling expenses

a. Pier charges 42

These consists of Charges of the product taken up by the persons or the Piers such as labor charges b. Wharfage fees

c. Loading and unloading charges These consists of the charges of the product taken for loading and unloading of the products at various locations 4. Insurance costs These consists of Cost of products which is given to the insurance company in order to prevent any loss to the buyer through failure of the product

5. Customs duties These are the taxes taken up by the government in order to provide products at ship port of that country

6. Import taxes and value-added tax These are the taxes paid up by the manufacturer on import of his products to other country

7. Wholesale and retail markups and discounts These are the discount given to wholesalers on the products ,if they purchase the products at large quantity from the manufacturer 8. Companys gross margins These consist of the profit which company is expected to gain after paying all the taxes and expenditure

43

9. Retail price It is the price which is offered to the customer by the wholesaler or the retailer of the product

G. Terms of sale

1. EX works, FOB, FAS, C&F, CIF These are the terms which are used when products are dispatched from the manufacturer to buyer of the products through various mediums

2. Advantages/disadvantages of each

H. Methods of payment writing guide

1. Cash in advance These consists of payment of cash to the wholesaler by the buyer before the product is actually made available to the buyer

2. Open accounts These consists of opening an accounts between the wholesaler and the buyer for transaction of goods between them

44

3. Consignment sales These consists of report of sales of different products at the wholesale or the retailer

4. Sight, time, or date drafts

5. Letters of credit These consists of letter which is given for making payment in future and providing the products without making payment of the product

II.

Pro forma financial statements and budgets

A. Marketing budget

1. Selling expense These consist of costs incurred for Selling of products within the country

2. Advertising/promotion expense These consists of cost involved in advertising of products within the country

45

3. Distribution expense These consists of costs involved in distributing of products at various destination within the country

4. Product cost These consists of cost involved in manufacturing and distributing of products in various parts of the country

5. Other costs These includes of other expenses involve in promoting of product in various part of the country

B. Pro forma annual profit and loss statement (first year and fifth year)

III.

Resource requirements

A. Finances These are the budget required for producing of the product within the country and providing them to the various parts

B. Personnel These are the cost and time incurred by a person in developing and distributing of products in various parts of the country

46

C. Production capacity These are the capacity of the manufacturer to produce products at various quantity and in required amount of time with the effective use of available resources

IV.

Sources of information Sources of Information is Internet

V.

Appendixes writing guide

47