This week I thought I would steal a page from www.marketingandsalesuniversity.com and talk about writing good ad copy. I have seen it over the years that companies spend lots of money on marketing only to wonder why their advertising is having little or no impact. Its important for advertisers to consider how to write good ad copy.
With the advent of social media, a lot of people don't think they need to know the basics of writing good copy. For those who still want to know, here are five essential components to writing great advertising copy.
There are 5 major components to good advertising copy: (The order of these is essential to success)
• Command Attention
• Showcase Benefits of Products/Services
• Prove the Benefits
• Persuade People to Embrace the Benefits
• Call to Action
Advertising is sales in print. So, you need to think about the unique benefits your products/services offer and showcase that in a persuasive way. You need to emphasize results, not features.
Let’s take a minute to talk about each of these components:
1. Command Attention: This is usually accomplished with the headline. You need an attention-getter that makes people want to know more about your products/services. The best headlines give a vivid portrayal of the benefits or show how a problem can be avoided with your products/services. The headline is the advertisement for the advertisement.
2. Showcase Benefits: You have to showcase the benefits of your products and services and, more importantly, show how they will solve or prevent a problem. They need to know what’s in it for them. Include useful, factual and clear information to show precisely what the benefits are and how they are going to help the customer.
3. Offer Proof: This is where you prove what the advertisement is offering. You need to establish you have a method to deliver. Consider information that establishes credibility and past performance.
4. Persuade: You need to add compelling reasons for your potential customers to purchase your products/services. Use a hard sell approach and create scarcity. This will enact your potential customers to feel like they have to act now. Which leads into the last component.
5. Call to Action: You need to compel your potential customers to DO something. They need to check out your site, sign up for your newsletter, purchase your products, contact you about services…something. Offer a freebie-a booklet, sample, product, bonus, demo, consult, limited time price…the list goes on. There are lots of ways to get potential customers excited about ordering and help them feel like they are getting an amazing deal.
Good advertisements include all of these components and are not complete without any of them. You can sit down and think through any one of these components, then figure out how to best place them together for the most effectiveness. We can help you with this too.
For more information on this and to get more marketing advice than you ever wanted to know, check out www.marketingandsalesuniversity.com. or contact me at the email address below.
Kensel Tracy is the Marketing Coach at The Corporate Coachworkz Inc. located in Chelsea, Quebec. If you are interested in getting more marketing advice or just need a coach to help build your business contact Kensel today at kenselt@sympatico.ca
Friday, September 23, 2011
Do You Have A Unique Selling Proposition?
If I were your prospective customer, why should I do business with you above any and all other options? Why would I be an absolute fool to buy what you sell from anyone else but you? That answer should be clearly articulated in the form of your USP.
What you need to know…
A USP is the single, most distinct and important benefit a business owner provides to their clients that's different from their competition. It's absolutely critical to not only create an effective and highly compelling USP, but to use it in every piece of marketing you develop, and in every form of communication you use with your clients and prospects.
Why you need to know this…
Your USP, working in tandem with your elevator pitch, creates a huge competitive edge for your business. Developed properly, it will separate your business from your competition, eliminate them in the minds of your prospects and have them saying to themselves that they would be fools to do business with anyone else but you.
For example, most business owners place the name of their business at the top of their business card. That's the worst thing you can put there. No one cares who you are or what you do. They only care about the benefits your product or service offers to them.
Instead of a jeweler's business card saying "John's Jewelers," what if it said this…
Discounted Diamonds - Unmatched Quality, Untouchable Price, Unbeatable Guarantee
In just a few words, would you feel like an absolute fool if you bought a diamond from anyone else but this jeweler? That's the power of a well-designed USP.
The cost to you if you fail to act…
Do you have a Unique Selling Proposition?
Do you use it in every piece of marketing you create?
Do you have it prominently displayed on your business card?
If you don't, you're losing market share, a massive amount of potential revenue and the opportunity to dominate your market.
Sunday, September 4, 2011
Anti-Socia Media Looks Like Its Arrived and Here to Stay
A couple of days ago a number of things happened to me that has led me to believe that the new social media revolution should actually be called the anti-social media revolution and here's why.
As I walk down any street, I see almost every second person plugged in, buds in their ears and cell phone cranking out emails oblivious to the world around them,the weather or the people next to them. I see people on bicycles with buds in, cutting in and out of traffic and not paying attention to anything.
I sit in a restaurant and hear people talking on the phone, like they are the only one in restaurant, so much so that I actually have to lean over and say, please shut up we are tying to have a conversation here.
I see people communicating on their Facebook page, just talking about them. What about everyone else. I hear from the plugged in generation that if your not on Gmail you out of touch and Twitter is something you need to do if you want to build your personal profile. The issue is what is behind the profile.
I have had discussions with many opinionated, self absorbed and selfish individuals who do not know how to communicate and get frustrated when they need to sit still for a few minutes in a meeting without the habit of picking up their phone or sending an email.
I have had breakfast meetings where the person I am talking with has had to be told to turn that " thing " off so we can chat. I have seen people ignore their work, deadlines and everything else so that they can up date their profile, send Twitter messages and everything else but ignore what is important.
I see stressed out, arrogant, uncommunicative people walking through me in airports, retail stores and shopping centres glued to their phone and nothing else. I see people on the street corner on sunny day glued to their phone as they barge through others who are just in the way. So this is the new social media huh!
In reality, social media may be about getting online and yes texting your friends, emails and phone calls, however in my mind, the world on a common level is getting less friendly,less engaged and less social and on a personal level people pretty much send emails to break relationships dates or ignore paying bills.
I call this new trend " anti-social media", Anti-social media is where the real world does not matter. All that matters is being online. I recently played golf with a couple that could not wait til the game was over on a Sunday morning so they could both check their Blackberry's and took ten minutes to answer emails and such before we could have breakfast.
Social media may be a good thing, however this anti social media thing its going to get worse and the anti-social behaviour will also come with it. I am pretty tired of have a face to face meeting with someone who answers his mobile and talks for 10 minutes about B.S. while I am waiting for an answer or in the middle of an important discussion. I am tired of presenting information at meeting while staring at some fool who is sitting there checking or sending email and not listening to a word I am saying. A a recent breakfast meeting one persons phone rang four times and each time she picked it up for conversation. I finally had to say shut that thing off so we can finish our meeting. She squirmed and shook and twisted and turned for the next half an hour because she had to talk with someone without being armed with a cell phone.
So the next time you hear somebody yelling at someone on their cell phone or being ignored in retail store by someone just checking their email take stock, it could be you.
As I walk down any street, I see almost every second person plugged in, buds in their ears and cell phone cranking out emails oblivious to the world around them,the weather or the people next to them. I see people on bicycles with buds in, cutting in and out of traffic and not paying attention to anything.
I sit in a restaurant and hear people talking on the phone, like they are the only one in restaurant, so much so that I actually have to lean over and say, please shut up we are tying to have a conversation here.
I see people communicating on their Facebook page, just talking about them. What about everyone else. I hear from the plugged in generation that if your not on Gmail you out of touch and Twitter is something you need to do if you want to build your personal profile. The issue is what is behind the profile.
I have had discussions with many opinionated, self absorbed and selfish individuals who do not know how to communicate and get frustrated when they need to sit still for a few minutes in a meeting without the habit of picking up their phone or sending an email.
I have had breakfast meetings where the person I am talking with has had to be told to turn that " thing " off so we can chat. I have seen people ignore their work, deadlines and everything else so that they can up date their profile, send Twitter messages and everything else but ignore what is important.
I see stressed out, arrogant, uncommunicative people walking through me in airports, retail stores and shopping centres glued to their phone and nothing else. I see people on the street corner on sunny day glued to their phone as they barge through others who are just in the way. So this is the new social media huh!
In reality, social media may be about getting online and yes texting your friends, emails and phone calls, however in my mind, the world on a common level is getting less friendly,less engaged and less social and on a personal level people pretty much send emails to break relationships dates or ignore paying bills.
I call this new trend " anti-social media", Anti-social media is where the real world does not matter. All that matters is being online. I recently played golf with a couple that could not wait til the game was over on a Sunday morning so they could both check their Blackberry's and took ten minutes to answer emails and such before we could have breakfast.
Social media may be a good thing, however this anti social media thing its going to get worse and the anti-social behaviour will also come with it. I am pretty tired of have a face to face meeting with someone who answers his mobile and talks for 10 minutes about B.S. while I am waiting for an answer or in the middle of an important discussion. I am tired of presenting information at meeting while staring at some fool who is sitting there checking or sending email and not listening to a word I am saying. A a recent breakfast meeting one persons phone rang four times and each time she picked it up for conversation. I finally had to say shut that thing off so we can finish our meeting. She squirmed and shook and twisted and turned for the next half an hour because she had to talk with someone without being armed with a cell phone.
So the next time you hear somebody yelling at someone on their cell phone or being ignored in retail store by someone just checking their email take stock, it could be you.
Thursday, September 1, 2011
Referral Marketing and Online Marketing are Growing Leaps and Bounds
As a business and marketing coach you are always reinventing the way you do business. Such is the case with my new website www.marketingandsalesuniversity.com and Stratejis Marketing Solutions.
As a marketing coach clients were always asking for more of something. More business, more time, more revenues. Its important for business owners to continue to reinvent their business even if they think they are on the right track.
Today's consumer has no brand loyalty and its important for a biz owner to understand what it takes to continue to build and market. The younger generation thinks that social media is going to be the next big saving grace for marketing. However its important to consider some of the traditional things you once did in marketing to continue move projects forward.
For example networking is all about building relationships. That's why we are rolling Business Over Breakfast clubs out all across Canada and the United States, to build relationships.
www.marketingandsalesuniversity.com was set up as a simple way for small business owners to get more information for less than $1200 per year. A simple process with a wealth of knowledge. Gives the small business owner an opportunity to grow and prosper on their own terms as well as pick up pointers that they can discuss with their coach or internally to get the ball rolling. Nobody wants to pay huge marketing fees just to get an education in marketing with limited returns.
Stratejis Marketing Solutions is my pet project. Having run a marketing company for a number of years I wanted to get back in the war and develop a few projects as a creative outlet for me personally and my clients. Nothing I like better than discussing creative concepts, graphic design, advertising and marketing and then implementing programs like having a marketing company now provides services to clients that want more. They want to design the ultimate ad, direct mail, website, learn more about social marketing and then having a dedicated approach to executing a program or a strategy.
On many of these projects I have partnered with my good friend Jason Harper his up and coming visual communications shop called Strongevine Visual Communications located in Ottawa. Jason's view is that marketing is a visual medium and that websites, brochures, logo designs and great business cards are still the basis of every company's marketing strategy and I agree with him.
So remember, when someone comes up to you and your company and thinks that you should have a new Twitter Account and Facebook page yada yada, you need more social media, agree with them and add it to your marketing inventory.
Get online and get social, but also insure that your image and what you are saying to customers is also up date and as matter fact focus in more on knowing who your customers are. Make sure all your marketing and communications tools are all up to date and all are entirely flexible so that you gather all the customers you need.
Remember customers are still about having relationships and getting referrals from people that know, trust and believe in you.
A business club like www.bobclubs.com, marketing efforts and social media combined will help you grow your business and will help it grow and prosper over time all the time.
As a marketing coach clients were always asking for more of something. More business, more time, more revenues. Its important for business owners to continue to reinvent their business even if they think they are on the right track.
Today's consumer has no brand loyalty and its important for a biz owner to understand what it takes to continue to build and market. The younger generation thinks that social media is going to be the next big saving grace for marketing. However its important to consider some of the traditional things you once did in marketing to continue move projects forward.
For example networking is all about building relationships. That's why we are rolling Business Over Breakfast clubs out all across Canada and the United States, to build relationships.
www.marketingandsalesuniversity.com was set up as a simple way for small business owners to get more information for less than $1200 per year. A simple process with a wealth of knowledge. Gives the small business owner an opportunity to grow and prosper on their own terms as well as pick up pointers that they can discuss with their coach or internally to get the ball rolling. Nobody wants to pay huge marketing fees just to get an education in marketing with limited returns.
Stratejis Marketing Solutions is my pet project. Having run a marketing company for a number of years I wanted to get back in the war and develop a few projects as a creative outlet for me personally and my clients. Nothing I like better than discussing creative concepts, graphic design, advertising and marketing and then implementing programs like having a marketing company now provides services to clients that want more. They want to design the ultimate ad, direct mail, website, learn more about social marketing and then having a dedicated approach to executing a program or a strategy.
On many of these projects I have partnered with my good friend Jason Harper his up and coming visual communications shop called Strongevine Visual Communications located in Ottawa. Jason's view is that marketing is a visual medium and that websites, brochures, logo designs and great business cards are still the basis of every company's marketing strategy and I agree with him.
So remember, when someone comes up to you and your company and thinks that you should have a new Twitter Account and Facebook page yada yada, you need more social media, agree with them and add it to your marketing inventory.
Get online and get social, but also insure that your image and what you are saying to customers is also up date and as matter fact focus in more on knowing who your customers are. Make sure all your marketing and communications tools are all up to date and all are entirely flexible so that you gather all the customers you need.
Remember customers are still about having relationships and getting referrals from people that know, trust and believe in you.
A business club like www.bobclubs.com, marketing efforts and social media combined will help you grow your business and will help it grow and prosper over time all the time.
Monday, August 22, 2011
Canada is A Great Place to Open and Own a Business
This week’s article I thought I would talk about Canada and why it’s a great place to invest or to open up a business. With all the blood on the tracks in the great U.S. of A I thought I would brag a little about your neighbour to the north and discuss why Canada is doing well in spite of issues facing other countries throughout the world.
Here are the top 8 reasons why it makes sense to invest in Canada.
1. First of all Canada has a people advantage. Canada is a nation of intelligent, educated workers, ranking #2 in the OECD in higher education achievement.
2. The next is the business environment advantage: The Economic Intelligence Unit has rated Canada the #1 place to do business in the G7 for the next five years.
3. The economic advantage puts Canada as better placed than many countries to weather the global financial turbulence and worldwide recession
4. This one could be debatable since there are some better tax advantages in other countries. Canada however offers businesses low tax rates, boasting the lowest payroll taxes among the G7 countries.
5. The NAFTA Advantage advantage gives investors access to more than 450 million consumers and a combined GDP of US$ 17.1 trillion (PPP basis).
6. If you are considering doing business in Asia the Asia-Pacific Gateway and Corridor Initiative (APGCI): takes advantage of Canada’s strategic location as the crossroads between the North American marketplace and the booming economies of Asia.
7. The transportation advantage gives Canada a sophisticated infrastructure and a highly developed transportation network.
8. Last of all the main reason we are all here in the first place is the life style advantage which gives Canada world-class universities, a universally acclaimed health care system, clean, friendly cities and spectacular scenery make Canada a great place to invest, work, live and raise a family.
There you have it, a simple and effective reason to invest in Canada. If you are thinking of opening a business, looking for good investment or want to move to stable democracy Canada for my money is the place to start hands down. Hope this helps you think about great places to live and invest.
Kensel Tracy is The Marketing Coach with the Corporate Coachworkz Inc. a business coaching company located in Chelsea Quebec, and Ottawa Ontario. He is also the President of Business Over Breakfast Clubs opening up in every city throughout North America.
Monday, July 25, 2011
Twiiter Helps Small Business Grow and Prosper
Canada it is said is one of the most connected countries in the world and in spite of paying some of the highest rates for internet and mobile phone, social networking is continuing to grow. If you run a business and have an online presence, chances are you have heard about the potential value that Twitter can have as a business tool.
The usefulness of Twitter and other social media for promotion, marketing, interacting with customers and building relationships has been promoted by a number of social media pundits and business professionals in a wide variety of industries. However social media has proven to be much more difficult for small business people to get a hold of and building an active presence on Twitter can me more difficult than expected. With and estimated 200 million tweets a day being sent simply sending off tweets won’t prove very useful nor will starting a twitter account and letting it lay dormant.
So in order to take advantage of what Twitter has to offer it requires having a strategy.
Here are some quick tips on how to start, build and maintain and active and effective Twitter persona for your business.
First step is to understand why you want to start a Twitter account for your business. It is important to have specific goals in mind when creating any channel and ensure they goals are reflected as you setup your profile for you and your business. It’s also important to understand how you will achieve these goals. For example if you are trying to find new customers, make sure what you will say and to whom to attract people to find you on Twitter, subscribe to your messages and eventually visit your store, website or blog.
Twitter takes some understanding to use it effectively. It’s important to understand that Twitter is pull technology and not a push approach to promoting. Traditionally you needed to force people to read your messages by buying some form of media or sending bulk emails to prospects. On Twitter, people need to follow you or opt in to read your messages therefore you need to make sure you saying something that is relevant or interesting to people vs. trying to achieve your goals.
Nobody is going to read a feed full of advertising. This media is called social media for reason as it puts the audience as part of the conversation. Most good case studies show that the most effective use of social media are those in which creative topics are created that are of interest to your potential audience. It’s therefore important to create creative ways to respond, reach out and respond to other individual messages too.
First of all, remember that Social Media can be used for more than just marketing. The key to any marketing program is understanding your customer, their likes, dislikes and interests. Once you have this profile, ensure that your Twitter messages are following these interests (for example, if you own a unique restaurant, tweet about food, preparation, recipes and equipment). Again, Twitter is an opt-in channel, so make sure what you say is something that your customer would want to read out of interest. Be as conversational as you can. In the restaurant example above, ask people what types of food they like and how they cook. Watch for the tweets of people you follow, and when they tweet about food, don't hesitate to reach out and share your thoughts in a friendly way.
Also, understand that tools are rarely effective in isolation. Mention Twitter in conversations, and link to it from your website. Perhaps even mention it in your other marketing materials.
Twitter can be a very effective marketing tool but needs to be used correctly. The key is get the conversation going, build credibility with your business approach or business focus, give information to your audience they want to read and be a source of inspiration and knowledge which will give you an advantage and help you build followers. Also look for key influencers in your industry and follow them on Twitter.
There following may also be your customer then you have a good chance of participating in a conversation with a variety of people that may also be interested in what it is you are saying. Remember, quality information, valuable knowledge, unique and key learning will help you grow your Twitter reputation and help others seek you out and develop a better understanding of what it is you do and what it is you have to offer.
Kensel Tracy is the Marketing Coach, Senior Partner for the Corporate Coachworkz and Managing Director of Stratejis, Results Based Marketing Solutions. He is also the President of Business over Breakfast Clubs in North America now opening up in every city in North America.
The usefulness of Twitter and other social media for promotion, marketing, interacting with customers and building relationships has been promoted by a number of social media pundits and business professionals in a wide variety of industries. However social media has proven to be much more difficult for small business people to get a hold of and building an active presence on Twitter can me more difficult than expected. With and estimated 200 million tweets a day being sent simply sending off tweets won’t prove very useful nor will starting a twitter account and letting it lay dormant.
So in order to take advantage of what Twitter has to offer it requires having a strategy.
Here are some quick tips on how to start, build and maintain and active and effective Twitter persona for your business.
First step is to understand why you want to start a Twitter account for your business. It is important to have specific goals in mind when creating any channel and ensure they goals are reflected as you setup your profile for you and your business. It’s also important to understand how you will achieve these goals. For example if you are trying to find new customers, make sure what you will say and to whom to attract people to find you on Twitter, subscribe to your messages and eventually visit your store, website or blog.
Twitter takes some understanding to use it effectively. It’s important to understand that Twitter is pull technology and not a push approach to promoting. Traditionally you needed to force people to read your messages by buying some form of media or sending bulk emails to prospects. On Twitter, people need to follow you or opt in to read your messages therefore you need to make sure you saying something that is relevant or interesting to people vs. trying to achieve your goals.
Nobody is going to read a feed full of advertising. This media is called social media for reason as it puts the audience as part of the conversation. Most good case studies show that the most effective use of social media are those in which creative topics are created that are of interest to your potential audience. It’s therefore important to create creative ways to respond, reach out and respond to other individual messages too.
First of all, remember that Social Media can be used for more than just marketing. The key to any marketing program is understanding your customer, their likes, dislikes and interests. Once you have this profile, ensure that your Twitter messages are following these interests (for example, if you own a unique restaurant, tweet about food, preparation, recipes and equipment). Again, Twitter is an opt-in channel, so make sure what you say is something that your customer would want to read out of interest. Be as conversational as you can. In the restaurant example above, ask people what types of food they like and how they cook. Watch for the tweets of people you follow, and when they tweet about food, don't hesitate to reach out and share your thoughts in a friendly way.
Also, understand that tools are rarely effective in isolation. Mention Twitter in conversations, and link to it from your website. Perhaps even mention it in your other marketing materials.
Twitter can be a very effective marketing tool but needs to be used correctly. The key is get the conversation going, build credibility with your business approach or business focus, give information to your audience they want to read and be a source of inspiration and knowledge which will give you an advantage and help you build followers. Also look for key influencers in your industry and follow them on Twitter.
There following may also be your customer then you have a good chance of participating in a conversation with a variety of people that may also be interested in what it is you are saying. Remember, quality information, valuable knowledge, unique and key learning will help you grow your Twitter reputation and help others seek you out and develop a better understanding of what it is you do and what it is you have to offer.
Kensel Tracy is the Marketing Coach, Senior Partner for the Corporate Coachworkz and Managing Director of Stratejis, Results Based Marketing Solutions. He is also the President of Business over Breakfast Clubs in North America now opening up in every city in North America.
Saturday, June 25, 2011
American Companies Invading Canada in Force, Who's Next?
Over the past few articles I have been explaining how Canada’s robust economy has been driving businesses in Canada and with our production tied to the high price of oil Canada becomes a place for business to thrive and prosper. Many brands are now expanding into Canada, the American brands that once seemed so exotic to Canadian shoppers have expanded north. Victoria's Secret and Crate and Barrel have opened flagship stores in Canadian malls in recent years.
In January, TJX Cos., which owns the discount clothing store Marshalls, and Tanger both announced northern expansion plans as well analysts predict that J. Crew, Macy's, Nordstrom, Kohl's and JC Penny are also on their way into Canada.
So the Canadian economy and the fact that 35 million new consumers are already attracted to American brands offers a unique expansion market for most American retailers. The biggest change however is with Target Stores. Target announced its purchase of 220 Zellers stores in a $1.8-billion deal with the American owner of the Hudson's Bay Co.
Target, which entices thousands of shoppers across the border, will finally cross the border itself. And Target's just the beginning. Like the War of 1812, the date of the last American invasion of Canada, a new invasion is happening only this time it’s an American retail invasion.
As U.S. retailers search for markets outside of their own stagnant economies, many set their sights on Canada. And that may mean trouble for home grown retailers. "Twenty years ago there were 20 U.S. retailers up here," says Toronto-based retail consultant Wendy Evans. "Today there are, soon to be, over 200." Canada is now in the midst of "a really big wave" of U.S. companies moving in, says Evans, and it should be enough to worry major Canadian retailers, such as Canadian Tire and Loblaw’s. "There is going to be a lot more competition," Evans says. "There are nine or 10 U.S. retailers right now that have announced plans to enter this market, or are actively looking. That's a lot." Evans predicts that 70% of the Canadian retail landscape will be foreign controlled by 2015, up from the about 50% that is foreign controlled today.
Many of the retailers now crossing the border have possibly contemplated the move for years, but it appears were finally pressed into action by the weak U.S. economy. Limited American opportunities in the medium term mean Canadian retailers will likely see competition increase steadily over the next five years, as their American counterparts turn to globalization for growth.
There was no real incentive for retailers to look beyond America's borders when its economy was thriving. The entire population of Canada is roughly the same as the population of California, points out retail consultant John C. Williams. While it makes sense for American companies to consider a Canadian move, a lot of U.S. companies, including Target, have been expanding in the States first.
The first proliferation of U.S. retailers really took off after NAFTA in 1994. That was the year Wal-Mart acquired 122 Woolco stores from Woolworth Canada, allowing it to open dozens of stores at once, in much the same manner Target is planning with its Zellers acquisition. The purchase allowed the company to move forward with its plans for international expansion, says Target spokesperson Amy Reilly."The timing is really about the excitement about this opportunity, which will allow us to open a meaningful number of stores in Canada," she says.
So it seems as if Canada is a viable market for American companies. Tim Horton’s the Canadian coffee icon is the reverse, with the Canadian market well saturated with its iconic brand of coffee and donut stores, their expansion is expected state-side over the next few years.
So it’s only a matter of time, Canadian shoppers interested in the unique American brand won’t have to make the trip across the border, fire up the internet or purchase online. Soon be a nice big American branded retail outlet will soon be found in your home town, just wonder who is going to be next?
Kensel Tracy is the Marketing Coach with the Corproate Coachworkz Inc., strategic advisors in the areas of marketing, leadership and business transformations.
In January, TJX Cos., which owns the discount clothing store Marshalls, and Tanger both announced northern expansion plans as well analysts predict that J. Crew, Macy's, Nordstrom, Kohl's and JC Penny are also on their way into Canada.
So the Canadian economy and the fact that 35 million new consumers are already attracted to American brands offers a unique expansion market for most American retailers. The biggest change however is with Target Stores. Target announced its purchase of 220 Zellers stores in a $1.8-billion deal with the American owner of the Hudson's Bay Co.
Target, which entices thousands of shoppers across the border, will finally cross the border itself. And Target's just the beginning. Like the War of 1812, the date of the last American invasion of Canada, a new invasion is happening only this time it’s an American retail invasion.
As U.S. retailers search for markets outside of their own stagnant economies, many set their sights on Canada. And that may mean trouble for home grown retailers. "Twenty years ago there were 20 U.S. retailers up here," says Toronto-based retail consultant Wendy Evans. "Today there are, soon to be, over 200." Canada is now in the midst of "a really big wave" of U.S. companies moving in, says Evans, and it should be enough to worry major Canadian retailers, such as Canadian Tire and Loblaw’s. "There is going to be a lot more competition," Evans says. "There are nine or 10 U.S. retailers right now that have announced plans to enter this market, or are actively looking. That's a lot." Evans predicts that 70% of the Canadian retail landscape will be foreign controlled by 2015, up from the about 50% that is foreign controlled today.
Many of the retailers now crossing the border have possibly contemplated the move for years, but it appears were finally pressed into action by the weak U.S. economy. Limited American opportunities in the medium term mean Canadian retailers will likely see competition increase steadily over the next five years, as their American counterparts turn to globalization for growth.
There was no real incentive for retailers to look beyond America's borders when its economy was thriving. The entire population of Canada is roughly the same as the population of California, points out retail consultant John C. Williams. While it makes sense for American companies to consider a Canadian move, a lot of U.S. companies, including Target, have been expanding in the States first.
The first proliferation of U.S. retailers really took off after NAFTA in 1994. That was the year Wal-Mart acquired 122 Woolco stores from Woolworth Canada, allowing it to open dozens of stores at once, in much the same manner Target is planning with its Zellers acquisition. The purchase allowed the company to move forward with its plans for international expansion, says Target spokesperson Amy Reilly."The timing is really about the excitement about this opportunity, which will allow us to open a meaningful number of stores in Canada," she says.
So it seems as if Canada is a viable market for American companies. Tim Horton’s the Canadian coffee icon is the reverse, with the Canadian market well saturated with its iconic brand of coffee and donut stores, their expansion is expected state-side over the next few years.
So it’s only a matter of time, Canadian shoppers interested in the unique American brand won’t have to make the trip across the border, fire up the internet or purchase online. Soon be a nice big American branded retail outlet will soon be found in your home town, just wonder who is going to be next?
Kensel Tracy is the Marketing Coach with the Corproate Coachworkz Inc., strategic advisors in the areas of marketing, leadership and business transformations.
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