The New Luxury in Canada
Having a sister who married a Canadian, I can tell you that the standard of living there is good. Canadians, benefiting from their robust economy, can afford to buy premium products and services - the "new luxury". To meet the needs of these consumers, new luxury marketing strategies must innovatively incorporate three levels of a ladder of benefits: 1) superior quality, 2) functional performance, and 3) an emotional benefit which affects and engages the consumer. This consumer-driven, global economy the "trading up" phenomenon - was created and is driven by social and economic demand factors below.
Consumer Income - what consumers CAN buy:
Increased discretionary income has influenced what consumers can buy.
Increased number of women working outside the home increases total household income
A rise in numbers of affluent households.
An increasing number of married couples without children, single working females, and empty nester Boomers who are willing and able to spend
Consumer Taste - what consumers WANT to buy:
Consumer tastes are shaped by their knowledge, culture, and personality.
Consumers are more educated, knowledgeable and discerning about items they purchase
Consumers are sophisticated; they enjoy unconventional and conversation-seeking experiences and have the expectation that things they want are available to them.
Household structures have changed so that convenience items, though at a premium price, are wanted/needed to allow for highly-valued family time
Women have become more influential as primary purchase decision-makers.
Consumer needs for status, class, exclusivity demand premium products and services
Consumers wish to spend time and money on things that are meaningful to them such as personal relationships, self-improvement, adventure vacations, and their individual styles.
Globalization of business and trade has expanded volume and variety of premium products giving consumers more choices and has fine-tuned their taste for foreign imports.
Competition's product and price:
Companies must know their economic climate - be aware of what the competition is doing and retain a competitive advantage by thinking outside the box. Consumers of New Luxury goods embrace entrepreneurship and specialty items.
Companies must have high performance - stay ahead of the growth of substitutes by supporting resources for research and development for new, improved products and updates.
Companies must gain and retain consumer loyalty - understanding their customer's motivation and behavior to provide real value to the 4 Ps of marketing.
Price:
Continued demand for low cost alternatives; "trading down" allows for more consumer income to be used for "trading up"
Because premium products and services are affordable to the middle-market consumer, they also can sell in much higher volumes than high ticket super-premium products, and thus have greater potential for continued growth.
To meet the company focus of being the industry leader in R&D, there must be a commitment by management to stay ahead of the curve in technology for R&D.
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
One of the problems Canada faces in establishing its brand identity is proximity to the USA. Moreover, Canada is not recognized yet as an economy fired by information technology, fuelled by telecommunications, and fortified by the fifth largest aerospace industry in the world. Brand Canada has a weak image in Japan. A recent survey in Japan revealed that Canada was perceived as a dull and “ stodgy” country, with only 3% of respondents indicating that Canada was a source of high technology. (Marketing 495).
Since the day Canada was created the standards of living have been constantly changing. There have been ups and downs in Canadian Standard of Living, but in my opinion, the system we have today is nearly perfect. Although I believe that no one will ever create a perfect system, mainly because of the differences in opinions. Not a single country in the world has the standard of living that in my opinions is ideal. We can look at other countries such as: Russia, Holland, or China. Although these countries have better standards of living then Canadians in some areas like: education, clothing, health system, etc. Each of them has disadvantages like: Russia has poor economy, Holland has high taxes, and China is overpopulated. I believe that current Canadian Standard of living creates a line higher then medium in the World Standard of Living.
To better understand the advertising industry in Canada we need to look at some facts. The communication lines in Canada are expanding daily. These communication vehicles are how advertising is spread. The more Canada strives to be evident in the communication lines, the less influence the United States can have on the Canadian industry. There are 18.5 million telephone lines and 3 million cellular phones in use. There are 32.3 million radios in Canada and there are 535 AM stations and 53 FM stations. As of 1997 there was 80 television broadcast stations (with over 100 repeater stations) and 21.5 million televisions. In 1999 there was an estimated 750 Internet service providers (CASI). There are 120 daily newspapers, 108 are in English and the other 12 are in French (Pang). There are also seventy-five ethnic weekly papers published (Pang). Communication is part of the second largest service industry in Canada. With such a large country and such few people Canada relies on strong communication to tie people together. Canada was the first country to launch a communications satellite and has been in the forefront of developing communications technology. With more and more changes in technology, the government, and the economy Canada can communicate to all citizens in many ways, keeping the communication lines tight.
Commercial products have been around since the beginning of time. Manufacturing millions of products such as Ketchup for consumers to use daily. One might argue that buying house hold items can be such a hassle even for consumers who barely have time to get ready for work, let alone clean after themselves. The need for more items influences consumers to evolve from prehistoric cave dwellers into item entrepreneurs through introducing multiple platforms to spread news about a product, appealing visually for customers to go buy it, and demonstrating why traditional ways of doing things helps improve modern cultures to expand newer ideas for buyers to sell or buy as they please.
Superior customer value: strategies for winning and retaining customers (3rd ed.). Boca Raton, FL: CRC Press.
The type of product is another factor as consumers tend to require fewer choices for commodity good and more choices for luxurious goods.
Consumer offerings are essential products that are available in the consumers’ market. However, not all these offerings are part of the consumers’ need at a particular time. In this brief piece of writing, readers will understand the consumer offerings that relate to their needs and when. Similarly, readers will learn the difference in these offerings and probably the products the author has patronized with a vivid example. At the end of the paper, readers should feel free to consult the references that aided the writing.
...on in today's market, but in order to remain competitive they must find a way to distinguish themselves from these competitors.
For instance, Harley Davidson may be forced to change their marketing strategy due to the entrance of a new competitor into the market. Second, Harley Davidson has to learn new skills and technologies quickly. For example, technologies are changing rapidly, so it is crucial for Harley Davidson’s business plan to change or alter in order to keep up with innovation. Third, this organization has to effectively leverage its core competencies while competing with its competitors. This is, Flexibility is required for Harley Davidson to learn how to use primary value-chain activities and support functions in the way that allow the organization to produce their products at a lower cost with differentiated features compare to their competitors in the market
Consumers make choices every day that affect the economy we live in, and in return these choices impact one’s personal finances. Take for instance, buying clothing at retail establishment that is trending,
Strive to earn customers’ long-term loyalty by working to deliver more than promised, being honest and fair to provide exceptional personalized service that creates a pleasing business experience.
While researchers can determine consumer behavior quite easily, it is almost impossible to get accurate and reliable data on why people buy what they do. How in the world can we figure out why consumers make the decisions in purchases they make, when we can only predict motives? Well, everything tends to be linked to a psychological trait that can help define the behavior of consumers.
Loyalty customers gain the more cost advantage and benefit, this resist competitors very hard to match. Promoted cost bind to loyal customers to sustainable growing.