Kristen Greene ( ) Molly MacDonald ( ) Shyla MacPhee ( ) Ryan Smith ( ) JD Snook ( ) “CANADIAN TIRE TAKES ON GIANT TARGET” BSAD 432:22 Bobbi Morrison April 5 th, 2013

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 CANADIAN TIRE PLAN

 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 CANADIAN TIRE’S TARGET MARKET

 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 on everyday jobs and joys of customers TARGET MARKET CONT’D

Future target market   With new smaller stores opening potential target market is the impulse shopper, time-pressed consumers looking for convenience, faster shopping and more browsers, women and younger consumers OVERALL TARGETS

Categorizing the products: Living! Fixing! Playing! Driving!  Wide array of products  New trend, new strategy  ‘Mini’ Big-Box  Outdoor recreation  Standalone Specialty Chains STRATEGIC MIX: PRODUCT

 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 STRATEGIC MIX: PRICING

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 POSITION IN THE MARKETPLACE Price Quality Sears Walmart Canadian Tire Target The Bay

 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 POSITION CONTINUED

 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 CHANGING INITIATIVES

 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 INITIATIVES AND THE TARGET MARKET

PROSCONS - Opportunity to position themselves in a market they feel they are under-served -Position themselves away from big competitors such as Target -Attract more browsers and impulse shoppers -Smaller stores have been more productive -A top retailer in Canada (#4) - Pressure to pump up sales -Other retailers/ competitors are moving in the same direction (ie. Wal-Mart) -Higher rents (50-60% higher) -New competitors (Home Hardware, True Value, and other independent retailers) ASSESSING FIT OF INITIATIVE

 The new implications are relevant due to the:  Changes in consumer behavior  Increased pressure from competition  More specific product categories IMPLICATIONS FOR NEW STRATEGY MIX Strategic Objectives  Strengthen core retail  Align all business units to reinforce the core  Build a high-performing organization  Create new platforms for growth

 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) CONCLUSION

QUESTIONS?