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{Part 2_ Brand Audit:Fonds de

8olidarit FTO

By: AdiI Berrada, Louis Biret, Karen PoIsky, YuIiya Misyurova, Irina MaIinovskaya

MRKT 438-002: Brand Management
Prof. Fabienne Cyrus Fall 2011

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Lxecut|ve Summary
The objective oI this brand audit is to proIile and analyze the Fonds de Solidarite
FTQ brand equity, by studying the brand origin and history, conducting a brand
inventory, and through primary research using a sample oI members oI the general
population, members oI the brand`s target market, and members oI the company itselI.
The Iindings oI this report lead to the conclusion that brand equity is high in terms
oI the brand elements used as well as the marketing strategies used. The brand elements,
used by the brand are all high in value with respect to the criteria used to choose valuable
brand elements. Additionally, the Fonds de Solidarite FTQ brand mantra, promises,
values, and mission are all meaningIul and recognizable as well, giving the brand
additional brand equity. The marketing strategy has been developed in recent years and
the brand has been making continual investments in its communications and promotions,
leading to increased brand awareness.
However, the Iindings oI the primary research conducted has shown that the
Fonds de Solidarite FTQ`s brand associations are being negatively impacting the brand
image in the minds oI consumers. This is largely due to the secondary associations
related to the Fonds de Solidarite FTQ`s relation to the FTQ union, as well as its relation
to various scandals and negative current events such as strikes and corruption, leading to
negative brand associations Ior the brand itselI.
This audit Iinds that although the brand equity is high among the brand elements
and other non-tangible aspects oI the brand, the negative associations attached to the
brand have lead to conIlicting perceptions amongst the brand`s target market.

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Table of Contents
EXECUTIVE SUMMARY ........................................................................................... 2
BRAND OVERVIEW ................................................................................................... 5
HISTORY ...................................................................................................................... 5
ABOUT THE FONDS DE SOLIDARITE FTQ ....................................................................... 5
INDUSTRY OVERVIEW .................................................................................................. 6
BRAND INVENTORY ................................................................................................. 7
BRAND HIERARCHY ..................................................................................................... 7
Business-to-Business. Investment ............................................................................ 7
Business-to-Consumers. Shareholders ..................................................................... 8
BRAND IDEOLOGY ........................................................................................................ 9
Brand Mantra .......................................................................................................... 9
Brand Mission ......................................................................................................... 9
Brand Jalue .......................................................................................................... 10
BRAND ELEMENTS ..................................................................................................... 10
Brand Name .......................................................................................................... 10
URL....................................................................................................................... 11
Logos & Symbols ................................................................................................... 11
Characters ............................................................................................................ 12
Slogans .................................................................................................................. 13
POINTS-OF-DIFFERENCE/POINTS-OF PARITY ............................................................... 14
Points-of-Difference .............................................................................................. 14
Points-of-Parity ..................................................................................................... 15
BRAND EXTENSIONS .................................................................................................. 16
SECONDARY ASSOCIATIONS ....................................................................................... 16
MARKETING STRATEGY.............................................................................................. 16
Product ................................................................................................................. 16
Price ..................................................................................................................... 17
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Promotion ............................................................................................................. 18
Place & Distribution ............................................................................................. 19
BRAND EXPLORATORY ......................................................................................... 19
METHODOLOGY FOR PRIMARY RESEARCH .................................................................. 19
"uantitative........................................................................................................... 19
"ualitative ............................................................................................................ 20
PRIMARY RESEARCH ANALYSIS .................................................................................. 20
"uantitative........................................................................................................... 20
"ualitative ............................................................................................................ 20
Strength oI Associations .................................................................................... 21
Favourability oI Associations ............................................................................ 21
Uniqueness ........................................................................................................ 22
Brand Knowledge .............................................................................................. 23
Loyalty & Intentions .......................................................................................... 23
PRIMARY CONCLUSIONS OF BRAND AUDIT ................................................... 24
APPENDIX .................................................................................................................. 25
APPENDIX 1 BRAND HIERARCHY.............................................................................. 25
APPENDIX 2 CORE BRAND VALUES .......................................................................... 26
APPENDIX 3 MENTAL MAP ...................................................................................... 27
PART 1: BRAND AUDIT IDEA ................................................................................ 28
BIBLIOGRAPHY ....................................................................................................... 30



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rand Cverv|ew
n|story

In order to properly understand the brand that is the Fonds de Solidarite FTQ, it is
important to Iirst understand the brand`s parent organization the Federation des
Travailleurs du Quebec, or FTQ. The FTQ is a union created in 1957 to represent and
deIend the rights oI Quebec workers. The FTQ is comprised oI over 600,000 members,
representing many diIIerent industries in Quebec, including insurance, automobile, and
government, among others, although the FTQ is particularly active within Quebec`s
construction industry. During the crisis oI 1981 in Quebec, the FTQ decided to
implement a new way to protect and create jobs within the province, a decision which led
to the creation oI an investment Iund that aimed to sustain the economy through investing
in the region. Thirty years later, this Iund still holds it`s original name: the Fonds de
Solidarite FTQ.
About the Ionds de So||dar|t I1

The Fonds de Solidarite FTQ aims to stimulate the Quebec economy by creating
investments in private, small-to-medium sized Iirms. Similar to other Iinancial
institutions, the Fonds conducts leverage buy-outs, and other Iinancing activities, such as
debt Iinancing and loans, to assist partner companies in their corporate growth.
The Fonds, currently valued at over $8 billion, has over 575,000 shareholders
who beneIit Irom their interactions with the Iund by preparing Ior their retirement. In
Iact, the shares acquired by individuals Iall into the category oI the Registered Retirement
Savings Plan (RRSP), which promotes savings growth in order to adequately prepare Ior
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retirement. The mechanism oI their investment is as Iollows: by buying shares oI the
Iund, individuals are able to enjoy tax beneIits related to their RRSP, in addition to the
return on investment derived Irom the perIormance oI the Iund itselI. When the company
sells shares to the individuals, the Iund is able to use the money collected to make
investments in various Iirms, which then translates into returns Ior the Iund, which are
then used to reimburse the shareholders when they retire. Due to this constant cycle, it is
particularly important Ior the Iund to appear attractive to the Quebec population so that
they are able to continue and maintain their operations.
ndustry Cverv|ew

Another crucial element to the understanding the Fonds de Solidarite FTQ
operations and brand is the examination oI the external Iactors which create the
environment in which the Iund operates, including the demographics oI the market, as
well as the economic and socio-cultural environment in which the Iund operates. The
demographics oI the Quebec population lead to challenges Ior the brand, in that the
population is aging. The baby-generation is now retiring en masse, causing a strain on the
Iund. The economic environment also causes problems Ior the Iund, in that when the
mortgage-subprime-crisis occurred, Iunds were not in good shape. As a result, the image
oI investment Iunds such as the Fonds de Solidarite FTQ was damaged, and their return
on investment decreased accordingly. Additionally, the socio-cultural environment in
which the Iund operates has also taken a toll on the Fonds de Solidarite FTQ`s image.
The continuously occurring scandals surrounding the FTQ unions substantially impact
the Iund`s image. Although the day-to-day activities are not directly linked with the day-
to-day activities oI the FTQ union, the clear and consistent relationship between the FTQ
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and the Fund, displayed in their name and in their brand values, causes the associations oI
the FTQ to have a large eIIect on the associations implied by the Iund. In the mind oI the
Quebec population, the target market Ior the Iund`s activities, any activities resulting in a
change in the associations Ior either the FTQ or the Fund will reIlect on the other,
regardless oI the situation and regardless oI whether the change in the associations are
positive or negative.
Despite these challenges, however, there are positive aspects oI the environment
in which the Iund operates. The Fonds de Solidarite FTQ is without a doubt in a legally
advantageous position. Both the Iederal and Quebec provincial governments have
promoted to the RRSP, by promising tax beneIits in exchange Ior the provision Ior
retirement by individuals, and this is something which the Iund has capitalized on.
rand nventory
rand n|erarchy
As shown in Appendix 1, the activities oI the 'Fonds de Solidarite FTQ are Iall
into two distinct, yet closely related categories: their business-to-business activities in
terms oI investments, and their business-to-consumer activities in terms oI shareholder
activities.
us|nesstous|ness nvestment

In the sense that the ultimate goal oI the Iund is the supporting oI private Iirms
through investments, it is important the Fonds de Solidarite FTQ is able to establish and
maintain positive relationships with the companies and industries within the region. In
order to accomplish this, they must create strong brand equity in order to be considered as
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a potential partner Ior Iirms that are looking to raise a given amount oI capital. In Iact, as
a result oI the landscape oI companies in Quebec being relatively small, any attractive
opportunities that arise are coveted by all the venture capitalists in the region. ThereIore,
in order to be perceived as the most attractive option when compared with their
competitors, it is crucial that the Iund is able to have a substantial return on investment.
us|nesstoConsumers Shareho|ders

OI course, as shown in the liIe cycle oI shares in Appendix 1, beIore any
investments can be made in Iirms, Iunds must be gathered Iirst. This is a primary reason
why the Fonds de Solidarite FTQ heavily promotes their retirement savings plans, or
RRSPs, to potential and current shareholders. These plans consist oI selling shares in the
Iund to individuals, which will then be bought back by the company once the shareholder
has reached the age oI retirement. ThereIore, it is essential Ior the Iund to successIully
persuade their target market that they are the best option Ior preparing Ior their
retirement, and that the individual will receive a substantial return that will at least equal
to similar retirement plans oIIered by the Iund`s competitors.
However, this has proved to be challenging, especially over recent years. As
mentioned previously, the aging population oI the target market is one oI the greatest
challenges Iaced by the FSFTQ. The baby-boomer generation, who were once the
principal market Ior the Iund`s RRSP plans are now reaching the age oI retirement and
are cashing in on their savings at an increasing rate. As a result, the Iund has had to
manage the increased outgoing Iunds, despite a decrease in incoming Iunds, requiring the
Iund to begin targeting a much younger market. UnIortunately, due to the poor reputation
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oI the Iund amongst the population oI Quebec, especially among younger generations,
accomplishing this task has proved to be quite challenging Ior the Iund.
rand deo|ogy
rand Mantra
The Fonds de Solidarite FTQ uses 'Driving the Local Economy as their main
brand mantra, as well as the main slogan, which will be discussed Iurther in the report.
This sentence conveys the essential components oI the brand. The usage oI the word
'driving conveys the brand Iunction, in that the Iund is a driver, a positive Iorce that
propelling something Iorwards. The presence oI the word 'economy in the phrase acts
as the descriptive modiIier in the brand mantra. It describes the brand Iunction, by clearly
stating what it is that the Iund is propelling Iorwards the Iund is not just a driver, but
also a driver oI the economy. The emotional modiIier is presented in the word 'local,
because it is not just any economy that is being driven by the Iund, but the speciIic, local,
Quebec economy.
rand M|ss|on
This ideology is Iurther described in the brand`s Iour-part mission statement.
First, they create, maintain, and protect jobs. This is undeniably inherent in the brand
because not only are they investing in the economy, but by investing in Iirms within
Quebec they provide services and support Ior Iirms and workers, thus creating new jobs
while maintaining current jobs as well. The second part oI the mission statement is to
educate workers. The Iund accomplishes this by promoting and encouraging economic
education amongst workers and Iirms, which in turn allows them to become a positive
inIluence on the economic development oI Quebec. The third point oI the mission
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statement is to develop the Quebec economy by choosing investments that beneIit both
workers and companies. The Iourth and Iinal part oI the Fonds de Solidarite FTQ mission
is to help workers prepare Ior retirement. Through encouraging awareness among
workers` oI the necessity to save and plan Ior their Iuture retirements, the Iund is able to
accomplish this.
rand Va|ue
At the core oI the Fonds de Solidarite FTQ ideology lays Iour values:
competence, teamwork, respect, and integrity. The value the Iund places on Competence
is shown by the way in which the Iund consistently challenges their employees to
consistently perIorm their duties, as well as keeping their knowledge and skills that relate
to their role`s up to date. By promoting the belieI that joint eIIorts leave to greater
achievements due to mutual assistance and the sharing oI knowledge, the Iund is able to
consistently reinIorce the value that they place on teamwork. In order to build the long
and trusting relationships with shareholders and businesses alike, the Iund places a high
value on respect between employees as well as clients. Finally, the Iund promotes a strict
disciplinal and ethical standard amongst all employees, due to the high regard that is
giving to integrity within the Iirm and in it`s dealings with clients.
rand L|ements
rand Name
The brand name, The Fonds de Solidarite FTQ, is composed oI three parts, each
reIerring to the main components oI the origins and activities oI the institution. The word
'Fonds reIers to the main activity oI the brand, the investment in private Iirms.
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UnIortunately, consumers tend to perceive the Iinancial activities as unethical. ThereIore,
the use oI the word 'Solidarite (solidarity) reIutes this negative association by
suggesting a moral and social side to the business. Nevertheless, this too also is
accompanied with negative eIIects. In Iact, it is really hard to convincingly combine
socially responsible activities with a high return on investment in the mind oI consumers.
Some consumers might perceive the positive side oI the business while others would be
tempted to think that this combination is impossible. When an individual is looking to
prepare Ior a retirement, helping the region to develop may not be their primary concern.
Finally, the last part oI the brand name, FTQ, reminds the consumer oI institution`s origin
and history. This is where the major diIIerence between the Iund and their main
competitor, Fondaction, reside. While the Iund directly reIerences the union that they are
a satellite company oI, their competitor makes no reIerence whatsoever to the union that
they originate Irom, avoiding any negative associations that would accompany the union
in the mind`s oI consumers.
D
The Fonds de Solidarite FTQ`s URL, www.IondsItq.com, is easy to remember Ior
consumers, which is important as it is the main point oI contact between the brand and
it`s market. Using a very easy-to-use interIace, the site provides detailed inIormation
about the brand and it`s history, its operations, as well as giving inIormation on how
consumers can begin to work with the Iund.
ogos Symbo|s
The logo uses cieative anu oiiginal visual effects, combining the lettei 'F',
ielating in the fiist lettei of 'Fonus' anu an aiiow pointing upwaiu iight, which
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suggests giowth. The blue coloi of the logo makes the Fonus ue Soliuaiit FTQ anu
its investment plans appeai as a calm, fiienuly anu secuie choice foi investments. In
fact, the logo is veiy effective foi many othei ieasons, cleaily shown when one
consiueis the six ciiteiia foi choosing bianu elements. In teims of memoiability, the
logo is memoiable because of its cieative anu oiiginal visual effect. Also, this aiiow
makes the logo veiy meaningful since it peifectly ieflects the natuie of the company
as an investment funu, as well as iepiesenting the giowing ietuins. Thiiu, it's
fiienuly coloi anu its smait visual effect combines to make the logo quite
aesthetically pleasing, which in tuin makes it veiy likeable. Noieovei, the logo coulu
be associateu to any investment funu of the Fonus ue Soliuaiit FTQ, making it eosily
tronsferoble if a categoiy extension was to occui. Fuitheimoie, the visual effect of
the logo anu its foims aie veiy simple, making it auaptable to potential changes in
consumei anu maiket values. Finally, although the logo seems simple anu easy to
iepiouuce, its lettei 'F' being slightly uiffeient fiom the usual anu the upwaiu
oiienteu aiiow makes it unique anu insepaiable fiom the Fonus ue Soliuaiit FTQ
anu the RRSP investment plan. This, when combineu with the fact that the company
holus patents on the uesign, gives the logo legal piotection, anu theiefoie cannot be
useu by any othei investment funu oi company with similai activities.
Characters
The characters used on the website Ior the Fonds de Solidarite FTQ, and in their
advertising help to build key associations Ior the brand. Generally, the characters used are
both male and Iemales who appear to be in around thirty years old. The characters used
appeal to all part`s oI the brand`s target market, in that they are oI either gender, young
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enough to appeal to a younger market, yet appear mature enough to appeal to an older
market, and are dressed in varying degrees oI Iormality, in that some are wearing suits
while others are dressed in more casual attire. In addition, the pictures are displayed in
black and white, giving the characters a classic, almost timeless, air oI simplicity.
Young people are used in order to convince the population that retirement has to be
planned early and that this is not an option that is viable only Ior older people, but Ior
younger generations as well. Their eyes are looking upward on most oI the pictures in
order to suggest their ambition and preparation Ior the Iuture. Also, by convincing young
people to start saving as early as possible, the Fonds aims to build a loyalty toward their
plan, which they will in turn retain beneIits Irom, in terms oI increased contributions in
the long-term.
S|ogans
The Fonds de Solidarite FTQ uses various slogans on their website and in their
advertising. Their main slogan, 'Driving Our Economy, represents the brand`s mission,
easily communicating to consumers what the brand means. Also, by using the word 'our
in their slogan, it gives a sense oI connection between the brand and the Quebec
population. Generally displayed at an angle, and similar to the arrow used in the logo, the
words are pointed upwards, again giving positive associations Ior the investment Iund.
Theie is also a cleai tienu piesenteu in the way the woius aie uisplayeu. Foi
example, with the catchphiase of two woius 'Pensei REER', which means "think
RRSP". Beie, the woius "pensei" anu "REER" aie peipenuiculaily oiienteu anu
inteisect at the same lettei "e", which iesults in the same lettei foi the seconu 'e' of
'pensei' anu the fiist 'e' of 'REER'. This is a veiy effective mannei to ieinfoice this
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aspect of unity that not only exists between the woius but between theii meanings
as well. Associating the Fiench woiu "think" to "REER" by combining them
physically makes the stiong ielation that choosing the REER is a smait choice It is a
choice you think long about befoie making it, which not only stiengthens the image
of the REER as a goou investment option, but the fact that even woius unite to make
one also ieinfoices the stiong image of soliuaiity that peisists conceining the FTQ.
Theie aie many othei examples of slogans shaiing one lettei foi two inteisecting
woius as we can see on the FTQ's website, such as 'Cotisei mon REER' (contiibute
to my REER) oi as "financei mon piojet" (finance my pioject). In the lattei, theie is
no shaieu lettei but the woius aie still wiitten peipenuiculaily, following the same
geneial theme. Noieovei, these slogans aie wiitten using the same blue coloi as the
logo coloi, which gives the website a moie coheient appeaiance oveiall. Bowevei,
othei colois aie sometimes useu, such as yellow oi black to giab attention on
specific woius oi letteis. This technique is employeu especially often on the letteis
that link two woius as was pieviously uesciibeu.
9o|ntsofD|fference]9o|ntsof 9ar|ty
9o|ntsofD|fference

With regards to the competition, there are many diIIerent options Ior individuals
looking to invest in a retirement savings plan in Quebec. However, we can say that the
major competitors oI the FTQ`s RRSP are the Fondaction CSN and the public Caisse de
Dept et Placement du Quebec. The Fondaction has a point oI diIIerence in that it has a
40 tax credit that makes it stand out in comparison to the 30 oIIered by the Fond`s
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RRSP. Another point oI diIIerence exists between the Fond and the Caisse de Dept et
Placement du Quebec, due to the competitors` considerable size and total assets, which
were oI CAD$ 151.7 billion, according to their website, in December 2010. In
comparison, the Fonds de Solidarite FTQ only has net assets oI CAD$ 8.2 billion as oI
May 31, 2011.
However, there are various points oI diIIerence that exist in the Fond`s Iavour, the
Iirst being that unike it`s competitor, the Fond did not lose $CAD 50 billion as did the
Caisse de dept et placement du Quebec. Also, the Fond has had a ROI oI approximately
7.9 Ior the last two years, which, in comparison to it`s competitors, is a very high.
Another point oI diIIerence exists in that the Fonds de Solidarite FTQ were the Iirst to
create a pension plan oI this kind in Quebec. Finally, the main point oI diIIerence that is
held by the Fonds is that in comparison to its competitors is their FTQ website, user-
Iriendly and making the investment look easy, simple and trustworthy. One other
interesting point oI diIIerence to note is that while the Fonds de Solidarite FTQ utilizes
Iinancial and economic education programs Ior consumers, their main competitor,
Fondaction does not have any similar programs in place.
9o|ntsof9ar|ty

Although the Fonds was the Iirst to develop a RRSP in the way that it did, the
Fondaction CSN has developed a point oI parity with the brand with regards to the
structure oI their pension plan, in that it was developed to imitate the structure oI the
Fond`s RRSP. Another point oI parity that exists between the Fond and the Fondaction is
that the mission statements and goals are quite similar in that they both work to aid
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worker`s in the saving Ior retirement and aiding the regional economy through
investments.
rand Lxtens|ons
There are currently no brand extensions associated with the Fonds de Solidarite
FTQ, however iI the opportunity Ior a brand extension ever arose, it could be easily taken
advantage oI, due to the Iund`s choices in terms oI the brand elements used, in that that
they are quite easily transIerable and adaptable.
Secondary Assoc|at|ons
Although the Fonds de Solidarite FTQ draws reIerences to the FTQ in many
aspects oI the brand, this is also detrimental as the brand suIIers as result. The very poor
reputation held by the FTQ due to its involvement in many diIIerent worker strikes over
the years has leIt the brand with negative correlations in the mind`s oI many Quebecois.
Also, due to the Iact that the FTQ is viewed as a syndicate deIending workers` rights,
many potential clients are unable to view the Fonds de Solidarite FTQ as a logical choice
Ior their investments and savings plans.
Market|ng Strategy
9roduct
The main product oIIered to individuals by the Iund is shares oI the company, which Iall
into the category Ior the Registered Retirement Saving Plan (RRSP). Since the product
proposed by the FSFTQ is not exactly tangible, it can be hard to apply all the dimensions
needed in order to evaluate it. However, it is possible, and necessary, to conduct a deeper
analysis oI the product in order to assess the perceived quality by the customers.
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The perIormance oI the Iund is irregular depending on the years and on the state oI the
economy. As a result, customers can`t really be sure about what to expect which lowers
the perceived value oI the brand. Nevertheless, the Ieatures oI the brand compensate Ior
this irregularity. In Iact, the tax credits provide customers with an exemption that will
invariably increase the value oI the service. Moreover, the serviceability oI the brand
certainly enhances the perceived value oI the service. This is shown in many ways, Ior
example, customers have the possibility to allocate a portion oI their salary prior to
receiving it to buy shares oI FSFTQ. Again, because oI the nature oI the product, the
reliability and conIormance oI quality cannot be consistent over the years, and can`t be
guaranteed by the Iund or by their competitor, making it less important in the evaluation
oI the product.
9r|ce
Through Iinancial beneIits to shareholders the Fonds de Solidarite FTQ adopts a
value-based pricing strategy oI sorts, because by buying shares or entering into Iinancing
plans with the Iund, consumers receive certain beneIits. There are two tax beneIits
available to holders oI a Fonds RRSP, that can save anywhere Irom 58 to 78. The
Iirst beneIit is a 30 tax credit, 15 on Quebec provincial taxes and 15 on Iederal
taxes. The second beneIit is a tax deduction granted to all RRSP holders, which
depending on the consumer`s tax rate can save the consumer 30 to 48. The price level
Ior this product is not really a matter oI concern, because individuals can allocate the
amount they want into their RRSP, regardless oI the share price. As a result, it is the
return on investment that is the variable most is important Ior the shareholders. However,
the Iact that share price oI the FSFTQ is way above the one oI Fondaction, $25.92 vs.
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$9.57, respectively, could be interpreted as a sign that there is more potential Ior growth
Ior the FSFTQ`s competition.
9romot|on
The Fonds de Solidarite FTQ uses traditional promotion methods, such as
advertising and direct mail, as well as other non-traditional promotional methods. A large
component oI the company`s promotion comes Irom their public relations and publicity.
By using publicity methods like press releases, conIerences and shareholder meetings,
and public relations methods like annual reports and lobbying, the company is able to
promote and protect the image oI the Iund. The Iund also uses interactive marketing
communications as part oI their promotion, using social networks and their website to
promote the brand. Their presence on Facebook and Twitter, gives the Iund a direct
channel oI communication with their clients. Their recognizable URL and their easy to
use website helps promote the Iund by providing current and prospective clients with
easy to access inIormation. They also use personal selling at the Iield oIIices and in their
campaigns, as well as sales promotion, targeted at both businesses and consumers.
The FSFTQ is very active in their promotional activities, constantly increasing the
budget which is allocated to marketing. For example, in 2010 alone, the budget allocated
to marketing was increased by 50. The brand was able to increase awareness through a
mass customization campaign involving activities such as the sending oI a personalized
brochure to every single shareholder, a campaign which was conducted by Xerox. The
local marketing Iirm Marketel also conducted another huge marketing campaign on the
Iund`s behalI.

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9|ace D|str|but|on
The Fonds de Solidarite FTQ uses their website as a main point oI interaction
with their customers, through user`s online accounts ando an employer extranet where
they can manage their investments in the Iund. The Iund also has various Iield oIIices
around Quebec. The Fonds de Solidarite FTQ is comprised oI a network oI Iunds
between 87 local Iunds, 16 regional Iunds, and the head oIIice. The local Iunds provide
Iinancing oI up to $100,000 through local development centres, the regional Iunds can
provide investments oI up to $2 million into business in the region, and the head oIIice is
responsible Ior investment requests Ior over $2 million. Clients can also interact with the
company through email, as well as a phone call service to help answer any questions or
manage the client`s services.
The distribution methods used by the company are really accessible and easy to use
Ior individuals wanting to buy shares, in that they can approach their employer and ask to
have the share costs deducted directly Irom their pay cheques. Alternatively, individuals
can use the website, email services, or phone services as well as the Iund`s Iield oIIices to
purchase and manage shares or their RRSP Iunds.
rand Lxp|oratory
Methodo|ogy for 9r|mary esearch
uant|tat|ve
For our quantitative research, we used surveys oI a random sampling oI the Quebec
population on the street, as well as the Statistics Canada website to gather inIormation.
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ua||tat|ve
For our qualitative research, we used in depth interviews with one member oI the
Quebec work Iorce, one owner oI a company in the Quebec construction industry, and
one employee oI the FSTQ.
9r|mary esearch Ana|ys|s
uant|tat|ve
Through our interviews oI diIIerent segments oI the population, we tested the
awareness oI people about the Fonds de Solidarite FTQ. First, we realized that in our
sample, only very Iew people, were able to recall the FSFTQ shares as an alternative Ior a
retirement plan. In Iact, when asked how they prepare Ior their Iutures, people Iirst
thought about the plans oIIered by commercial banks.
However, once shown the logo oI the Iund, the recognition is deIinitely higher.
All the persons interviewed have recognized the logo. But again, the distinction between
the union and the Iund was sometimes unclear. In Iact, some oI the responses we received
were designating the logo as the FTQ logo.
ua||tat|ve

8rond lmoqe
Despite the increased budget allocation Ior advertising and communication by
50, the marketing programs have Iailed to eIIectively build a good brand image Ior the
Fonds de Solidarite FTQ, in that the message communicated to the target market is oIten
jeopardized by the Iund`s actions which are oIten perceived as being inconsistent wuth
the message being communicated in the Iund`s promotions.
21
renq of 4ssocioions
Due to the current events, such as scandals and strikes which have been recently
occurring in Montreal regarding the FSFTQ, the strength oI the associations made with
the FTQ in the consumers` minds are much stronger than usual. UnIortunately we
observed that the strongest associations are not toward the RRSP. In Iact, when asked,
one oI the interviewees claimed that the best moment Ior people to go see the Fund is
when they need help to go on strike. We then asked him to explain what the mission oI
the FSFTQ is according to him, and he responded perIectly by sayinng that they aimed to
drive the economy Iorward while providing a return on investment to shareholders, who
are workers. This shows how strong the negative associations in the consumer mind are,
in that even when people are aware about what the Iund is supposed to be doing, these
associations will be inevitably mixed with the associations created by the union activities.
lovourobi/i of 4ssocioions
The Iavourability oI the associations is generally only mediocre and there are
many reasons why this is occurring. Many people are not convinced oI the eIIectiveness
oI the Iirm as a whole, such that the contribution oI the Iund to the economy oI the region
is not clear to all people. In Iact, the way the jobs are created is still ambiguous in the
minds oI many consumers. As a result oI certain rumours about how the FSFTQ has
pressured companies to employ workers, the population sometimes perceive all these
numbers as nothing more than a baseless marketing tool. ThereIore, some members oI the
population Ieel like there is a lack oI transparency in the brand`s operations. This is also
the case when considering the return on investment. Unlike the FSFTQ`s competitor,
Fondaction, the Fonds include the tax credit on the return on investment that is stated to
22
the public, which many people Iind to be misleading on the part oI the Iund.
Moreover, looking at the aspect oI relevance oI the brand, the positive eIIect oI the Iund
on the economy is not relevant to everyone. Although some people take pride in helping
the province, many members oI the population do not Iind the issue to be immediately
relevant to themselves. When thinking about their retirement, their primary concerns tend
directed toward their beneIits, not the beneIits oI the province. Additionally, the
believability is very low. Since the Iund has been involved in scandals involving
unethical practices, such as the Iund`s support oI Tony Acurso, a man who is well-known
Ior his Iraudulent actions, people Iind it diIIicult to believe all the promises made by the
Iund. Some interviewees who Iirst thought about corruption and scandal when
recognizing the Fund were able to conIirm this interpretation.
Dniqueness
Finally, we can Iairly state that even iI their selling proposition is really rare
compared to traditional VC`s and pension Iunds, they are not unique. In Iact, Fondaction
has the exact same mission statement and values, which makes them less unique.
However, the emphasis placed on the social aspect oI the brand`s mission can have
various eIIects on the brand image., and can help to diIIerentiate the brand Irom
competitors. The mission oI the FSTQ as an investment Iund is quite distinctive Irom
those oI it`s competitors in that associating a social aspect to the Iinancial world is not
common in the industry. However, this is somehow contradictory with the service they
are promoting to the public, and is not necessarily relevant to everyone. Despite this, by
adding a social aspect to the brand, the Iund is able to create a unique selling proposition
23
when compared with competitors through non-product related attributes, giving the brand
a competitive advantage in this area.
8rond know/edqe

The brand knowledge regarding the product-related beneIits is very low. In Iact,
many people don`t understand how buying these shares will beneIit them. ConIusions
still exist in the consumers` minds, who think that the only purpose Ior which people
should use the brand, is to go on strike, even iI they are aware oI the mission oI the Fonds
de Solidarite. However, people seem to know more about the non product-related beneIits.
In Iact, the knowledge about the union is considerably higher. With regards to the
Iunctional beneIits, the knowledge is still under the expectations oI the Iund. In Iact, most
people don`t know about the Ilexibility provided by the Iund Ior cashing-out, even iI it is
a source oI concern Ior people who most oI the time are reluctant because they don` want
to have a plan that is too rigid. On the contrary, the symbolic beneIits are well known by
the general public in that the mission oI the Iund is socially meaningIul and is attractive
to the Quebec population.
Loo/ lnenions

The loyalty towards the brand diIIers greatly depending on the diIIerent segments
oI the population. Workers who are unionized with the FTQ tend to have a strong loyalty,
and have a Ieeling oI membership within a community. Their belieIs about the
eIIectiveness oI the Iund are stronger, which undoubtedly also motivates them to
contribute to the brand. However, one really relevant interview with a current employee
at the Funds, who claimed that she has no intentions to buy any shares oI the company
she is working Ior, also proved that there are also people who think completely
24
diIIerently. Also, many people declared that they don`t want to associate themselves to
a unionized Iund. This wide array oI opinions about the brand clearly shows the contrast
oI intentions depending on the segment oI the market that is being studied.

9r|mary Conc|us|ons of rand Aud|t



AIter analyzing all the aspects oI the brand, we can conIidently state that
their brand equity is quite low and that their reputation could deIinitely be
improved. In Iact, the secondary association with the union, which is established
in most oI the consumers` minds is really strong, in that most oI the persons don`t
make the distinction between the union and the Iund. As a result, the Fonds de
Solidarite is sometimes perceived as an unethical organization. In addition to that,
the recurring strikes and scandals are dissuading the population to associate
themselves to such a company. There is also a lack oI transparency regarding the
activities, which lowers the incentive to become a shareholder. The contribution oI
the Iund to the economy is not obvious to everyone, and people want to stay apart
Irom activities that are related to the union.Finally, the perIormance in terms oI
returns has been criticized a lot since it is not signiIicantly higher than their
competitor. Keeping all oI this in mind, it is crucial Ior the Fonds de Solidarite
to start building a stronger brand equity Ior the Iund in order to overcome the
current challenges oI increases in retirement among the baby boomer generation.


25
Append|x
Append|x 1 rand n|erarchy




FTQ
Fonds de Solidarit FTQ
B2B
Investment
(B2C)
Shareholders Savings Funds
Retirement Funds
Home Buying
Plans
26
Append|x 2 Core rand Va|ues


Fonds de
Solidarit FTQ
Fund
Large
Amount oI
Money
Social
Orientation
Business
Integrity
People
Innovation
Development
Healthy
Economy
Quebecoise
27
Append|x 3 Menta| Map




Fonds de
Solidarit FTQ
People
WelIare
Healthy Economy
Quebec
Advantageous
Shared Property
Integrity
Innovation
Mutual Help
Business
Development
Social Help
Education
Pension Plan
Syndicate
Government
28
9art 1 rand Aud|t dea

Historical Background:
The 'Fonds de Solidarite FTQ is a development capital Iund that has been created in
June 1983. The idea oI creating such a Iund emerged Irom the FTQ; Quebec`s largest
central labour body aIter the region went through a recession during the beginning oI the
1980`s.
The main goal oI the company is to stimulate the economy Irom Quebec by creating jobs
through investments in private Iirms. Meanwhile, the investment Iund also aims to
provide workers with a plan oI savings Ior their retirement. In Iact, when buying shares
oI the company, individuals get some tax beneIits in addition to the return on investment
derived Irom the perIormance oI the company.
Moreover, the added value the Iund oIIers is a Iree education Ior the workers oI their
partners. In Iact, the company is providing training in diIIerent Iields in order to make the
labour more eIIicient and more skilled.
The Target Market:
Many departments that invest in many diIIerent industries compose the Fund. From
Aeronautic to agriculture, all spheres oI activity are beneIiting Irom investments oI the
FSTQ.
In our case, we decided to analyze the current situation oI the IT department. Their
targeted market are small and medium-sized businesses that are looking to raise some
capital in order to pursue their corporate growth.
Challenges the Brand is Facing:
Even though each department is supposed to be an independent entity, some department`s
perIormances are jeopardized by the activities and reputation oI the others. In Iact, the IT
29
department is suIIering Irom the bad reputation that is associated to the Union. ThereIore,
companies perceive the FSTQ as the last resort instead oI seeing it as a partner oI choice.
What strategy can the IT department adopt in order to change the way corporations Irom
Quebec consider them?
SWOT ANALYSIS





Aging population
Independent VC's
Union
construction
More
independence
Change reputation
Bad reputation
Limited
geographic
location (Quebec)
Mission limits
opportunities
Lots oI Iunds
Backed by the
government
Presence in all
industries
Strengths Weaknesses
Threats Opportunities
30
|b||ography

"15 Interesting Investment, Personal Finance and Retirement Statistics
|Canadian|." Canadian Savings, Retirement, Investment Related, Financial
Confidence Statistics For 2010. InvestingThesis.com, 2010-2011. Web. 13 Oct.
2011. http://www.investingthesis.com/analysis-insights/15-interesting-
investment-personal-Iinance-and-retirement-statistics-canadian/~.
"About Us." Headquarters - Fonds Siege Social. Fonds De Solidarite FTQ, 2011. Web.
15 Oct. 2011. http://www.IondsItq.com/en/FondsSiegeSocial.aspx~.
"About Us." Local Funds. Fonds De Solidarite FTQ, 2011. Web. 15 Oct. 2011.
http://www.IondsItq.com/en/FondsLocaux.aspx~.
"About Us." Real Estate Fund. Fonds De Solidarite FTQ, 2011. Web. 15 Oct. 2011.
http://www.IondsItq.com/en/FondsImmobilier.aspx~.
"About Us." Regional Funds. Fonds De Solidarite FTQ, 2011. Web. 15 Oct. 2011.
http://www.IondsItq.com/en/FondsRegionaux.aspx~.
Accueil - Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 11 Oct. 2011.
http://www.IondsItq.com/~.
"Contact Us." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 12 Oct.
2011. http://www.IondsItq.com/en/InIormations/Contactez-nous.aspx~.
"Economic Education." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web.
12 Oct. 2011.
http://www.IondsItq.com/en/A20propos/Formation20economique.aspx~.
"Ethics." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 16 Oct. 2011.
http://www.IondsItq.com/en/A20propos/Ethique.aspx~.
"Financial Data." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 16
Oct. 2011.
http://www.IondsItq.com/en/A20propos/Donnees20Iinancieres.aspx~.
31
"Get 30 in Tax Credits!" Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011.
Web. 13 Oct. 2011. http://www.IondsItq.com/en/30PourcentCreditImpot.aspx~.
Girard, Michael. "Le Rendement Magique Du Fonds FTQ." LaPresseAffaires.
Cyberpresse.ca, 6 July 2011. Web. 12 Oct. 2011.
http://lapresseaIIaires.cyberpresse.ca/opinions/chroniques/michel-
girard/201107/06/01-4415375-le-rendement-magique-du-Ionds-Itq.php~.
"Governance." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 16 Oct.
2011. http://www.IondsItq.com/en/A20propos/Gouvernance.aspx~.
"L'impt Sur Le Revenu... En ChiIIres." Statistics Canada. Government oI Canada, 26
Apr. 2010. Web. 11 Oct. 2011.
http://www42.statcan.gc.ca/smr08/2010/smr081412010-Ira.htm~.
"Our History." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 11 Oct.
2011. http://www.IondsItq.com/en/A20propos/Notre20histoire.aspx~.
Owner oI Construction Company, Architect, and Landscaper. "Focus Group." Personal
interview. 25 Sept. 2011.
All interviewees were Quebec residents, but wished to remain anonymous.
"Payroll Deduction." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 13
Oct. 2011. http://www.IondsItq.com/en/RetenueSalaire.aspx~.
Perrier, Marie-Noel. "Primary Research." Telephone interview. 14 Oct. 2011.
Interviewee is an employee oI the Fonds de Solidarite FTQ
"Retirement." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 15 Oct.
2011. http://www.IondsItq.com/en/RetraiteImmediate.aspx~.
Shareholder Services. Annual Report 2010. Rep. Fonds De Solidarite FTQ, 2010. Web.
13 Oct. 2011. http://www.myvirtualpaper.com/doc/Ionds-de-solidarite-
Itq/raIonds2010an/2010093003/#116~.
32
"Statistiques." Fondaction, Le Fonds De Travailleurs De La CSN Pour Lepargne-
retraite Et Le Developpement De Lemploi. Fondaction, 31 May 2011. Web. 13
Oct. 2011. http://www.Iondaction.com/?cat32~.
Tazi, Younes. "Primary Research." E-mail interview. 14 Oct. 2011.
Interviewee is a 32-year-old male and Quebec resident.
"Types oI Financing." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web.
12 Oct. 2011.
http://www.IondsItq.com/en/InvestissementTypesFinancement.aspx~.
"Unique Advantages." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web.
14 Oct. 2011.
http://www.IondsItq.com/en/InvestissementAvantagesDistinctiIs.aspx~.
"Who We Are." Fonds De Solidarite FT". Fonds De Solidarite FTQ, 2011. Web. 14 Oct.
2011. http://www.IondsItq.com/en/A20propos/Qui20sommes-nous.aspx~.

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