Maximize Sales in Canada's
Regions
Richard Vinson, USCS,
Canada
Summary Although many U.S.
companies have made
arrangements for what should
be a national distribution
system in Canada, this may not
always be the case. Often,
products are combined in a
multi-line, cross-sector
offering by national wholesale
chains as commonly seen in
general industrial products,
hardware, domestic consumables
and similar. The alternative,
a regional selling force based
on local representation in
each of Canada's five regions,
may provide a new opportunity
to truly improve the bottom
line on exports headed north.
The question which needs to be
addressed by U.S. suppliers is
whether or not they are
receiving the best selling
force available in Canada to
maximize market potential.
Beyond Ontario Since at
least 50 percent of Canada's
commercial activity is
centered in Ontario and
Quebec, there may be a
reluctance by U.S. firms to
look further a field for
suitable representation. This
is especially true if 'rights
to distribute' agreements are
made with any of Canada's
national distributors (with
centrally based head offices)
which have sales outlets in
most provinces. However, those
sales outlets may be taking a
passive role in promoting
individual product lines,
relying solely on the chain's
reputation as a "general
supply house" while
waiting for the customers to
knock on the door or pick up
the latest catalog.
Case Study In a recent Gold
Key service, our client was
surprised to learn that his
product line was receiving
virtually no marketing in
British Columbia, Alberta, and
across Canada's Atlantic
provinces. The line was being
sold to end-users and
wholesalers via a Toronto,
Ontario distributor and one
national chain. In each case,
the products were showing no
sales growth, receiving
minimal promotional attention,
and market share was less than
five percent of the national
total of C$54 million. The
Canadian wholesalers were
relying only on brand name
recognition and appeared
satisfied with sales volumes
via catalog and counter sales.
On visiting the three regions,
our U.S. client discovered
significant untapped market
potential with local agents,
distributors, wholesalers and
manufacturers'
representatives, all willing
to take on the line and
promote it to their existing
and new clients on a regional
basis.
In addition to normal
consumption, business activity
in the regions outside of
central Canada may offer
enticing new markets as a
result of niche industry
operations, major projects,
unique consumer demand, marine
activity, oil/gas exploration,
and a host of other
specialized situations which
may apply to a particular
product. The willingness of
local firms to represent new
products is another
consideration in favor of a
regional sales strategy in
Canada.
The Geography Canada's
western and eastern provinces
are large areas demanding a
serious commitment by local
firms to adequately represent
their companies. For example,
Canada's Atlantic provinces
represent an area almost the
size of France and the
distance from Toronto to
Halifax is equal to that of
Chicago to Boston; Toronto to
Vancouver approximates
traveling from Detroit to
Seattle. St. John's,
Newfoundland, Canada's most
eastern province, is over an
hour by air from Halifax, Nova
Scotia. To address this
diversity, the U.S. Commercial
Service in Canada has divided
Canada into five regions:
British Columbia; the Prairie
provinces of Alberta,
Saskatchewan and Manitoba;
Ontario; Quebec; and the
Atlantic provinces of
Newfoundland, Nova Scotia,
Prince Edward Island and New
Brunswick. Servicing these
regions from a single, central
location in Canada is an
expensive process - another
reason for having regional
representation where
warranted.
For all products? Whether
or not a new look at Canada
will be required is dependent
on...
a) ...the sales potential
in each of five regions;
b) ...how the product line
is currently being sold;
c) ...the location of
end-users.
Each product grouping
should be analyzed based on
current sales balanced against
best available, total market
size information. Where large
spreads appear, the methods
used to sell and represent may
be one of the keys to
improving sales. From our
experience, the U.S. products
which may require a new, more
regional marketing approach
are those presently listed
with non-exclusive, national
distributors or
representatives carrying
numerous other product lines,
all competing for catalog
space and the attention of
sales staff, buyers and
end-users.
Increase Market Share Via
the U.S. Commercial Service To
assist with a realistic look
at the regional market
potential in Canada, the U.S.
Commercial Service is well
positioned to make a
difference. With offices
(below) in all five regions,
we have a wealth of local
experience to bring to the
table in favor of our U.S.
clients. We have good access
to agents, distributors,
wholesalers, and end-users in
all provinces. This, combined
with our world renowned
one-on-one, Gold Key
appointment service and
customized market research can
provide our U.S. clients with
new opportunities and maximum
penetration across the entire
nation. To learn more about
our products and services and
how you can increase your
sales to Canada, contact any
of our regional offices in
Canada at the following
telephone numbers:
For more information on the
contents of this report,
please contact Richard Vinson,
Commercial Specialist,
CSHalifax, Tel. (902) 429-2482
x102; Fax (902) 429-7690;
Email richard.vinson@mail.doc.gov
- Region I – The Atlantic
Provinces
- 1969 Upper Water Street,
Suite 904, Halifax, Nova
Scotia B3J 3R7
- Tel: (902) 429-2482, Fax:
(902) 429-7690, E-mail: halifax.office.box@mail.doc.gov
-
- Region II – The Province
of Quebec
- P.O. Box 65, Station
Desjardins, Montreal, Quebec
H5B 1G1
- Tel: (514) 398-0673, Fax:
(524) 398-0711, E-mail: montreal.office.box@mail.doc.gov
-
- Region III – The Province
of Ontario and the territory
of Nunavut
- 490 Sussex Drive, Ottawa,
Ontario K2N 1G8
- Tel: (613) 688-5217, Fax:
(613) 238-5999, E-mail: ottawa.office.box@mail.doc.gov
- 480 University Avenue,
Suite 602, Toronto, Ontario
M5G 1V2
- Tel: (416) 595-5412, Fax:
(416) 595-5419, E-mail: toronto.office.box@mail.doc.gov
-
- Region IV – The Prairie
Provinces and the Northwest
Territories
- 1000, 615 Macleod Trail
S.E., Calgary, Alberta, T2G
4T8
- Tel: (403) 265-2116, Fax:
(403) 266-4743, E-mail: calgary.office.box@mail.doc.gov
-
- Region V – The Province
of British Columbia and Yukon
Territory
- 1095 West Pender Street,
Vancouver, British Columbia
V6E 2M6
- Tel: (604) 685-3382, Fax:
(604) 687-6095, E-mail: vancouver.office.box@mail.doc.gov
We want to know about your
successes and how our efforts
best assist U.S. companies. If
this report alerts you to a
commercial opportunity in
Canada, which you subsequently
pursue successfully, please
let us know! Think Canada
First!
A good place to look for
other Canada related
information are out companion
guides on ExportMichigan.com:
General Marketing
Information:
Marketing Computer and
Telecommunications Related
Products
Documentation and Customs
Requirements
Date Updated: March 27, 2007
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