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“Canadian Tire takes on Giant Target”

“Canadian Tire takes on Giant Target”. Kristen Greene ( 200903075) Molly MacDonald (201006408) Shyla MacPhee ( 200905390 ) Ryan Smith ( 200905179) JD Snook ( 200905698). BSAD 432:22 Bobbi Morrison April 5 th , 2013. Canadian tire plan. ISSUE

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“Canadian Tire takes on Giant Target”

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  1. “Canadian Tire takes on Giant Target” Kristen Greene (200903075) Molly MacDonald(201006408) ShylaMacPhee (200905390) Ryan Smith (200905179) JD Snook (200905698) BSAD 432:22 Bobbi Morrison April 5th, 2013

  2. Canadian tire plan ISSUE • TARGET opening 220 Canadian locations in 2013/2014 IMPLEMENTATION • Canadian Tire attempting to reposition themselves in the market as they become under threat, we will analyze their repositioning through use of: • Target Market • Strategy Mix • Positioning • Initiatives • Implications to strategy mix • Conclusion

  3. Canadian tire’sTarget market • Canadian Tire has a large target market • Canadian tire is a retailer with a differentiated marketing strategy All stores owned by Canadian Tire, but all focusing on a different target market • They target: living, fixing, playing, automotive, sports, financial services and apparel • “A family of companies” • FGL Sports (Sport Chek, etc.), Mark’s Work Warehouse, Part Source, Gas bar, Financial Services and Canadian Tire Retail

  4. Target market cont’d • Canadian Tire Automotive segment • Targets men drivers • FGL Sports • Sport enthusiasts of all skill levels • Eighty per cent of our customers are under 45 • Mark’s • Largest retailer of men’s apparel and footwear in Canada • Financial Services • Complement the retail businesses across the Family of Companies • Canadian Tire Mastercard • Canadian Tire Retail • Focused oneveryday jobs and joys of customers

  5. Overall Targets Future target market • With new smaller stores opening potential target market is the impulse shopper, time-pressed consumerslooking for convenience, faster shopping and more browsers, women and younger consumers

  6. Strategic Mix: Product Categorizing the products: Living! Fixing! Playing! Driving! • Wide array of products • New trend, new strategy • ‘Mini’ Big-Box • Outdoor recreation • Standalone Specialty Chains

  7. Strategic mix: pricing • Maintains a competitive pricing strategy • Focuses on everyday price competitiveness. • PRICE MATCH GUARANTEE – “We'll not only match any competitor's price, we'll beat it by giving you an additional 10% of the lower price in Canadian Tire 'Money’” • Future success and benefit

  8. Position in the marketplace Price Canadian Tire competitive position: • Main Competition –Indirect • All-purpose store (do-it-yourself) • Gradually moved away from auto-parts/specialists • New Entrants – Target • Why is Target a threat? • Dealing with Competitive Saturation Quality Sears Walmart Canadian Tire Target The Bay

  9. Position Continued • Perception of the Consumer • Difficult to move away from “Warehouse image” • LOCATION- • Retail outlet • Planned shopping centre • Unplanned business district • Attracting “extremist” Customers • New Specialty Stores: Emphasis on Quality

  10. Changing Initiatives • Focus on smaller versions of their stores in city/ urban centers • Position themselves away from new entrants/ competitors (Target) • Pilot separate chain of outdoor recreation stores and other specialty chains

  11. Initiatives and the Target Market • Differentiated marketing strategy • Smaller stores will target the impulse shopper, time-pressed consumer who are looking for convenience and faster shopping • Changing some of the controllable factors

  12. ASSESSING FIT OF INITIATIVE

  13. Implications for NewStrategy mix • The new implications are relevant due to the: • Changes in consumer behavior • Increased pressure from competition • More specific product categories Strategic Objectives • Strengthen core retail • Align all business units to reinforce the core • Build a high-performing organization • Create new platforms for growth

  14. Conclusion • Pros outweigh cons • Change in market is essential with new competition • Timing and approach valid • With the change able to better achieve future aspirations (ie: 5-year financial plan, reach out to new target market and conduct objectives to increase future sales)

  15. Questions?

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