International Trade
- Canadian Online Banking
- Ontario Beer Distribution Channels
- Canadian Internet Ads Boom
- Canadian Food Exports Profit
- Canada Imports More Alcohol
- Illegal Firearm Movie Imports
- Regional Trade Agreements
- Global Marketing Defined
- International Marketing Class
- Respecting Middle Eastern Visitors
Posted by
Daniel Workman
Daniel Workman
Canadians rank first in online banking according to global Internet survey for 37 countries.
Worldwide Internet information consultant Comscore Media Metrix revealed that 67.1% of Canadians did their banking online in April 2008, far ahead of the United Kingdom (49.5%) and the United States (44.4%).
Comscore president Brent Bernie notes that the world-class Canadian banking system is so developed and competition is so fierce that Canadian banks must meet the needs of consumers online to grow their banking business.
In fact, online banking in Canada is a must for even the largest bank's survival over the longer term.
Royal Bank Financial's website had 4.6 million visitors in April 2008 (down 2% from April 2007), the most of any Canadian bank. A close second, TD Canada Trust had 4.5 million online customers (up 2%).
The study shows an ongoing re-engineering of how Canadians do business. While bricks-and-mortar banking services are still important, the future of Canadian marketing and business transactions clearly lies on the Web.
This is even more true of international trade. A click of a mouse button will soon become the most common method to source products and sell merchandise from around the world.
Comscore president Brent Bernie notes that the world-class Canadian banking system is so developed and competition is so fierce that Canadian banks must meet the needs of consumers online to grow their banking business.
In fact, online banking in Canada is a must for even the largest bank's survival over the longer term.
Royal Bank Financial's website had 4.6 million visitors in April 2008 (down 2% from April 2007), the most of any Canadian bank. A close second, TD Canada Trust had 4.5 million online customers (up 2%).
The study shows an ongoing re-engineering of how Canadians do business. While bricks-and-mortar banking services are still important, the future of Canadian marketing and business transactions clearly lies on the Web.
This is even more true of international trade. A click of a mouse button will soon become the most common method to source products and sell merchandise from around the world.
Ontario Beer Distribution Channels
Posted by
Daniel Workman
Daniel Workman
Smaller Canadian brewers have little chance promoting their brews when faced with leading global brands.
Several years back, Brick Brewery Company had a chance to own a part of the Beer Store, one of the premier retail channels for selling suds to Ontario drinkers. Brick declined, partially because no dividend payment was part of the deal.
Now a small brewer like Brick is having great difficulty getting their products on the shelves of one of Canada's largest chain of beer stores.
Instead, the 3 large multinationals that own the Beer Store dominate the ad space and shelf space. Those huge companies are:
Looking around and only seeing poster-sized ads for the huge beer brands and only those beers on the shelf, a small independent brewer like Brick has no chance.
In international trade, distribution channels are sometimes more important than the product itself.
Now a small brewer like Brick is having great difficulty getting their products on the shelves of one of Canada's largest chain of beer stores.
Instead, the 3 large multinationals that own the Beer Store dominate the ad space and shelf space. Those huge companies are:
- Labatt's owned by InBev, the world's largest beer company by volume
- Molson Coors
- Sappolo out of Japan.
Looking around and only seeing poster-sized ads for the huge beer brands and only those beers on the shelf, a small independent brewer like Brick has no chance.
In international trade, distribution channels are sometimes more important than the product itself.
Posted by
Daniel Workman
Daniel Workman
In Canada, Web-based marketing continues to grow faster than any other segment.
Being an online Feature Writer at Suite101.com isn't a quick way to get rich. But it is encouraging to see that Internet marketing is enjoying healthy sales increases as more people around the world get connected to the Web.
According to PriceWaterhouseCooper (PwC), Web-based advertising in Canada will soar 21.1% compounded annually to $3.4 billion in 4 years. Toronto Star Business reporter Rita Trichur recently quoted PwC director Jerry Brown as identifying the following 3 fastest-growing drivers for online marketing:
Still, the older generation age 50 and over will still demand the older forms of media to which they become accustomed.
Hopefully, more young and old Web researchers will find their way to our International Trade articles to find immediate answers to the questions for which they want answers.
According to PriceWaterhouseCooper (PwC), Web-based advertising in Canada will soar 21.1% compounded annually to $3.4 billion in 4 years. Toronto Star Business reporter Rita Trichur recently quoted PwC director Jerry Brown as identifying the following 3 fastest-growing drivers for online marketing:
- Keyword searches
- Classified advertising
- Online video advertising (full-motion video ads shown on the Internet).
Still, the older generation age 50 and over will still demand the older forms of media to which they become accustomed.
Hopefully, more young and old Web researchers will find their way to our International Trade articles to find immediate answers to the questions for which they want answers.
Posted by
Daniel Workman
Daniel Workman
Countries around the world are hungry for more Canadian food exports while Canadians pay moderately more for imported food.
Paul Waldie of Toronto's Globe and Mail points out that 80% of Canadian wheat is exported. So far this year wheat prices have increased by 50%, a trend that benefits Canada as one of the world's leading wheat producing countries.
Revenues from Canadian agricultural exports continue to hit all-time highs on the way to a record US$11-billion trade surplus this year.
At the same time, Canadians have experienced price increases for food imports, but not as high as those experienced in other countries.
Statistics Canada reports that Canadians paid an average of just 1.2% more for food during the 12 months ending April 30. That rise is 5 times lower than food price increases in America and 6 times lower than in Europe.
The world's most heavily populated country China has experienced a 22% increase in food prices.
So while Canadians are paying about 10% more for cereals and breads due to higher grain prices, cereals and breads represent just 12% of total Canadian food purchases. More meats, fruits and vegetables show up on Canadian food bills, and prices for those products have fallen. Why? Because a strong Canadian dollar has reduced imported vegetable costs by 13% and imported fruit prices by 4%. About 40% of vegetables and fruits that Canadians consume are imported.
Oil comprises only 5% of food prices, so any energy cost pressures are expected to be moderate.
Besides, Canadians are in the enviable position of being able to substitute different foods like potatoes should rice prices multiply. Populations in other countries depend on rice to survive, and therefore suffer the most as Canada's food exports continue to profit.
Revenues from Canadian agricultural exports continue to hit all-time highs on the way to a record US$11-billion trade surplus this year.
At the same time, Canadians have experienced price increases for food imports, but not as high as those experienced in other countries.
Statistics Canada reports that Canadians paid an average of just 1.2% more for food during the 12 months ending April 30. That rise is 5 times lower than food price increases in America and 6 times lower than in Europe.
The world's most heavily populated country China has experienced a 22% increase in food prices.
So while Canadians are paying about 10% more for cereals and breads due to higher grain prices, cereals and breads represent just 12% of total Canadian food purchases. More meats, fruits and vegetables show up on Canadian food bills, and prices for those products have fallen. Why? Because a strong Canadian dollar has reduced imported vegetable costs by 13% and imported fruit prices by 4%. About 40% of vegetables and fruits that Canadians consume are imported.
Oil comprises only 5% of food prices, so any energy cost pressures are expected to be moderate.
Besides, Canadians are in the enviable position of being able to substitute different foods like potatoes should rice prices multiply. Populations in other countries depend on rice to survive, and therefore suffer the most as Canada's food exports continue to profit.
Posted by
Daniel Workman
Daniel Workman
Statistics Canada reports that in 2007 imports generated 75% of red wine sales, 60% for white wine, 30% for spirits and 11.4% for beer.
Last year, Canadians drank US$18 billion worth of beer, wine and spirits. That amounts to a 4.9% gain over 2006.
Canadian beer drinking continues to slow, although sales of imported brands did grow faster than Canadian-made brews last year. Overall, Canadian purchases of beer rose 2% in 2007 - the slowest of any alcoholic beverage category. Imported beers now represent 11.4% of Canadian beer sales, twice the Canadian beer market share 10 years ago.
Wine sales to Canadians moved ahead 9.5%. Red wines now account for 61% of Canadian sales. Wine imports dominate 75% of Canadian red wine and 60% of white wine sales, respectively.
Statistics Canada also revealed that sales of spirits rose 5.8% in 2007. Up 10%, vodka was the fastest-growing spirit last year. While imported spirits garner less than 30% of the Canadian spirits market, foreign spirit brands are growing their sales faster than Canadian-made products. Whisky, scotch and bourbon remain the most popular hard liquors in Canada.
So why do imported alcoholic beverages led Canadian alcohol sales? We should consider the following trends.
Canadian beer drinking continues to slow, although sales of imported brands did grow faster than Canadian-made brews last year. Overall, Canadian purchases of beer rose 2% in 2007 - the slowest of any alcoholic beverage category. Imported beers now represent 11.4% of Canadian beer sales, twice the Canadian beer market share 10 years ago.
Wine sales to Canadians moved ahead 9.5%. Red wines now account for 61% of Canadian sales. Wine imports dominate 75% of Canadian red wine and 60% of white wine sales, respectively.
Statistics Canada also revealed that sales of spirits rose 5.8% in 2007. Up 10%, vodka was the fastest-growing spirit last year. While imported spirits garner less than 30% of the Canadian spirits market, foreign spirit brands are growing their sales faster than Canadian-made products. Whisky, scotch and bourbon remain the most popular hard liquors in Canada.
So why do imported alcoholic beverages led Canadian alcohol sales? We should consider the following trends.
- A compelling trend towards drinking more red wine in Canada, particularly more expensive brands of imported red wine
- A 1.5% population increase in Canadians over age 15
- More sales of premium alcohol combined with a 0.9% rise in alcoholic beverage prices
- Overall, Canadians spent 3.1% more on alcohol last year.
Posted by
Daniel Workman
Daniel Workman
Thanks to a loophole in Canada's international trade laws, Canadian movie production companies import guns act as middlemen for international gun dealers.
According to Jim Bronskill of the Canadian Press, a British Columbian firm licensed to import guns for use on movie sets was charged for illegally distributing submachine guns to local criminals.
A year later in 2007, police traced two assault rifles used in a January 2007 shootout in British Columbia. A west-coast company with a movie import licence was responsible for bringing those weapons into Canada.
Movie production companies can legally buy guns in bulk internationally. They then import those weapons into Canada for use on their movie sets. The loophole in the law is the loosely defined deadline for registering imported guns, vaguely worded as "as soon as practical".
The result is that imported guns are never registered. Instead, gun dealers ignore the registration process and keep the weapons. The movie company simply says that they no longer have the guns.
Meanwhile, gun dealers sell the firearms to criminals on the black market.
How do you catch these international trade criminals when they never have to register the imports that they are accused of selling? Absent proof that they ever handled the products after delivery to the movie producer, the gun dealers simply point the finger at the movie production company or disappear after making their tidy profits.
The next time you're staring down the barrel of a legally imported but illegally distributed gun, ask yourself how effective Canada's "as soon as practical" gun registration legal wording is. And I'm not talking about watching an action movie on the big screen.
A year later in 2007, police traced two assault rifles used in a January 2007 shootout in British Columbia. A west-coast company with a movie import licence was responsible for bringing those weapons into Canada.
Movie production companies can legally buy guns in bulk internationally. They then import those weapons into Canada for use on their movie sets. The loophole in the law is the loosely defined deadline for registering imported guns, vaguely worded as "as soon as practical".
The result is that imported guns are never registered. Instead, gun dealers ignore the registration process and keep the weapons. The movie company simply says that they no longer have the guns.
Meanwhile, gun dealers sell the firearms to criminals on the black market.
How do you catch these international trade criminals when they never have to register the imports that they are accused of selling? Absent proof that they ever handled the products after delivery to the movie producer, the gun dealers simply point the finger at the movie production company or disappear after making their tidy profits.
The next time you're staring down the barrel of a legally imported but illegally distributed gun, ask yourself how effective Canada's "as soon as practical" gun registration legal wording is. And I'm not talking about watching an action movie on the big screen.
Posted by
Daniel Workman
Daniel Workman
Free trade areas, customs unions, common markets and economic unions are preferential trade agreements to stimulate commerce among closely located countries.
North American Free Trade Agreement (NAFTA) established a free trade agreement in which Canada, the United States and Mexico promote economic growth through reduced tariffs, expanded trade and investment. NAFTA has no common external tariffs.
Latin American countries (Caribbean, Central and South America) have four preferential trade agreements:
Comprised of Argentina, Brazil, Paraguay and Uruguay, the Common Market of the South (Mercosur) is a customs union that impose common external tariffs of up to 20%. Chile and Bolivia are associate Mercosur members.
Caribbean Community and Common Market (CARICOM) is an economic union with a common currency. Seventeen member nations include Bahamas, Bermuda and Jamaica.
Asia-Pacific includes 23 countries and 56% of the world's population.
Newly Industrializing Economies feature strong export-driven economies sometimes called the 4 Tigers of Asia, namely South Korea, Taiwan, Singapore and Hong Kong.
Association of Southeast Asian Nations (ASEAN) includes Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Cambodia, Laos and Burma.
The European Union is the most successful economic union, with harmonized national laws and regulations.
Central European Free Trade Association (CEFTA) teams Hungary with Poland and Czechoslovakia. These countries cooperate in areas including:
Africa has 53 nations and three regional agreements:
Latin American countries (Caribbean, Central and South America) have four preferential trade agreements:
- Central American Integration System
- Andean Community
- Common Market of the South
- Caribbean Community and Common Market.
Comprised of Argentina, Brazil, Paraguay and Uruguay, the Common Market of the South (Mercosur) is a customs union that impose common external tariffs of up to 20%. Chile and Bolivia are associate Mercosur members.
Caribbean Community and Common Market (CARICOM) is an economic union with a common currency. Seventeen member nations include Bahamas, Bermuda and Jamaica.
Asia-Pacific includes 23 countries and 56% of the world's population.
Newly Industrializing Economies feature strong export-driven economies sometimes called the 4 Tigers of Asia, namely South Korea, Taiwan, Singapore and Hong Kong.
Association of Southeast Asian Nations (ASEAN) includes Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, Cambodia, Laos and Burma.
The European Union is the most successful economic union, with harmonized national laws and regulations.
Central European Free Trade Association (CEFTA) teams Hungary with Poland and Czechoslovakia. These countries cooperate in areas including:
- Infrastructure and telecommunications
- Sub-regional projects
- Inter-enterprise cooperation
- Tourism and retail trade.
Africa has 53 nations and three regional agreements:
- Economic Community of West African States
- East African Cooperation
- South African Development Community.
Posted by
Daniel Workman
Daniel Workman
Why is global marketing often referred to as without boundaries, and how do international sales strategies differ from regular marketing?
The standard definition of marketing is the process of planning and executing the conception pricing, promotion and distribution of ideas, goods and services. This creates exchanges that satisfy individual and organizational goals.
Global marketing focuses on market opportunities and threats around the world. The scope of activities shifts to markets outside an organization's home country. For an example, see our recent article on Bombardier's international sales.
So why would a successful company like Bombardier look to global markets?
First, the multinational benefits from access to new markets like fast-growing China, India and Russia. Generally less-expensive resources also become available.
But perhaps more important is the inescapable fact that company survival depends on global marketing. Otherwise, competitors that access lower-cost resources in foreign lands will drive a strictly domestic company out of business.
The standard tools in global marketing remain the same: product, price, place and promotion. However, e-commerce and the internet are in prime position to communicate multinational products and services via the worldwide web.
Global marketing focuses on market opportunities and threats around the world. The scope of activities shifts to markets outside an organization's home country. For an example, see our recent article on Bombardier's international sales.
So why would a successful company like Bombardier look to global markets?
First, the multinational benefits from access to new markets like fast-growing China, India and Russia. Generally less-expensive resources also become available.
But perhaps more important is the inescapable fact that company survival depends on global marketing. Otherwise, competitors that access lower-cost resources in foreign lands will drive a strictly domestic company out of business.
The standard tools in global marketing remain the same: product, price, place and promotion. However, e-commerce and the internet are in prime position to communicate multinational products and services via the worldwide web.
Posted by
Daniel Workman
Daniel Workman
Our instructor speaks English, French and German. He is passionate about teaching us the facts, statistics and entrepreneurial opportunities of international marketing.
In our first three classes, instructor Anthony Pauk shared insights that he gained as an international deal maker for large multinationals like Montreal-based Bombardier.
Rule number one to successful marketing is to take an idea already in existence and make it more successful. Of course, reengineering require critical thinking skills combined with creative insights.
Audience Analysis
But you also have to understand the audience, particularly its needs and wants. For example, most cultures view aluminium pans as an improvement over heavy cast-iron pans. However, Germans will not buy aluminium cooking utensils because they associate heaviness with durability and functionality.
Focus groups are so important early in the product planning cycle.
Goal of Marketing
Marketing communicates a vision to customers and employees. International marketing messages have a much broader scope to communicate.
Most marketing efforts focus on value, which equals benefits divided by price. Price can involve money, but some people don't consider that time and effort applied towards a product also is part of its price. For example, buying a cat also requires the new owner to spend time and effort grooming, feeding and cleaning.
Hardest Marketing Challenge
Our instructor remarked that the hardest challenge that marketing poses is that marketers have to:
International Marketing Tips
Rule number one to successful marketing is to take an idea already in existence and make it more successful. Of course, reengineering require critical thinking skills combined with creative insights.
Audience Analysis
But you also have to understand the audience, particularly its needs and wants. For example, most cultures view aluminium pans as an improvement over heavy cast-iron pans. However, Germans will not buy aluminium cooking utensils because they associate heaviness with durability and functionality.
Focus groups are so important early in the product planning cycle.
Goal of Marketing
Marketing communicates a vision to customers and employees. International marketing messages have a much broader scope to communicate.
Most marketing efforts focus on value, which equals benefits divided by price. Price can involve money, but some people don't consider that time and effort applied towards a product also is part of its price. For example, buying a cat also requires the new owner to spend time and effort grooming, feeding and cleaning.
Hardest Marketing Challenge
Our instructor remarked that the hardest challenge that marketing poses is that marketers have to:
- Put themselves in the shoes of the audience
- Think the way the audience thinks
- Figure out what the audience wants.
International Marketing Tips
- Companies must focus their efforts on core competencies. That's why a world-leading multinational like Nestlé focuses strictly on its food and beverage lines of business.
- Since 80% of marketing results come from 20% of sales prospects, the most effort must be applied to those countries that maximize value for marketing dollars spent.
Respecting Middle Eastern Visitors
Posted by
Daniel Workman
Daniel Workman
This past weekend I put my international trade skills to work facilitating medical experts from the United Arab Emirates, Kuwait, Qatar, Lebanon, Jordan and Bahrain.
For my latest special events gig, I escorted a team of 16 doctors and surgeons visiting from the Near East and Gulf region. This included medical professionals from the United Arab Emirates (UAE), Kuwait, Qatar, Lebanon, Jordan and Bahrain. Our guests stayed at the Toronto Hilton at the southeast corner of Richmond Street and University Avenue.
International trade researcher that I am, my journey started with googling cultural behaviours. For example, in the UAE politeness and respect to the elders are generally expected. For me, that's a good thing. I also learned that respect towards the women is mandatory etiquette.
Above all, I had to control my usually creative side that might be construed as an insult to Muslim customs or beliefs. In the UAE, you can get fined and sent to jail for swearing.
I also learned that our guests from Kuwait frown on impatience, something that I work hard on. Kuwaitis often interrupt their meetings for their religious prayers, while handshaking is the ideal method of greeting in this very religious country. Sure enough, during our Saturday dinner three guests excused themselves to pray on mats in the parking lot outside the restaurant. And the men often shook my hand firmly.
I'm not sure that I scored 100% on a test of Arabic manners. When the head doctor asked me how to pronounce the name of our Italian restaurant (Joe Badali's), I phonetically broke it down to sound like "BAD ALLEYS". To which the doctor nudged me and said that he'd like to visit the "bad alleys" later.
So it looks like there are some similarities in international cultures. At least for the men.
International trade researcher that I am, my journey started with googling cultural behaviours. For example, in the UAE politeness and respect to the elders are generally expected. For me, that's a good thing. I also learned that respect towards the women is mandatory etiquette.
Above all, I had to control my usually creative side that might be construed as an insult to Muslim customs or beliefs. In the UAE, you can get fined and sent to jail for swearing.
I also learned that our guests from Kuwait frown on impatience, something that I work hard on. Kuwaitis often interrupt their meetings for their religious prayers, while handshaking is the ideal method of greeting in this very religious country. Sure enough, during our Saturday dinner three guests excused themselves to pray on mats in the parking lot outside the restaurant. And the men often shook my hand firmly.
I'm not sure that I scored 100% on a test of Arabic manners. When the head doctor asked me how to pronounce the name of our Italian restaurant (Joe Badali's), I phonetically broke it down to sound like "BAD ALLEYS". To which the doctor nudged me and said that he'd like to visit the "bad alleys" later.
So it looks like there are some similarities in international cultures. At least for the men.
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