Canadian Tire Retail 1 - INDIVIDUAL Case Analysis Template (2)

BUSM35436 Business Cases Canadian Tire Retail 1 – Individual Case Analysis Template Student Name: Najma Sadiq Adan Student ID: 991610973 Due Date: May 31 st 2023 Class #: By submitting this document, I confirm that it’s contents reflect only given case information and my original work, and that I am aware of and follow Sheridan’s Academic Integrity Policy. Case Synopsis: Canadian Tire operates in an omni-channel environment striving to provide their customers with a seamless shopping experience whether in-store or on-line. Visually, merchandising is incredibly important to the shopping. Customers need to be able to walk down an aisle and find what they are looking for. But just as importantly, Canadian Tire wants customers to be inspired or surprised by almost every aisle that they walk down. In a digital space, that type of shopping experience is just as important. Customers need to be able to find the product and have the same level of inspiration and discovery as their in-store experience. Canadian Tire must determine how best to replicate the in-store shopping experience using both still and video formats in a digital space to satisfy both e-commerce and electronic catalogues while presenting over one hundred and twenty thousand different products. Note: Omni-channel is  a multichannel approach to sales   that integrates the different methods of shopping available to customers and seeks to provide a seamless shopping experience, whether shopping online from a desktop or mobile device, by telephone, or in a brick-and-mortar store. Decision Maker : Allan Macdonald, President of Canadian Tire’s Retail Operation Problem Statement : How can Canadian Tire replicate the in-store shopping experience, in a cost effective manner to satisfy both e-commerce and electronic catalogues in both still and video formats? Decision Criteria/Goals:  On-line experience must replicate in-store level of inspiration and discovery for both e- commerce and electronic catalogues.  Online presentation must include both still and video presentation formats.  Recommendation must be cost effective. A. Business Case Segmentation – 20 Marks A1: Background segmentation - considering the decision maker, problem statement and goals, segment relevant business case facts using specific headings . Present relevant facts only, no analysis (5 marks): Background Segmentation :  Allan Macdonald is the chief operating officer of Canadian Tire. The company operates in the consumer retail industry, focusing on wholesale and retail trade, with headquarters in Toronto. 1 ALL SUBMISSIONS ARE TURNITIN ENABLED

BUSM35436 Business Cases Canadian Tire Retail 1 – Individual Case Analysis Template It is a public corporation with over 10,000 employees and annual revenue exceeding $25 million. A2: Why is this problem important ? (2 marks)  The shopping experience both in-store and online holds significant importance for retail.  Customers need to easily find products in both physical and digital spaces  Online shoppers require the same level of enthusiasm and inspiration as in store shoppers.  Enhancing the customer experience can lead to increased sales. A3: How urgent is the problem? (2 marks)  While not extremely urgent, the problem should be addressed within a year. A4: What timelines must the decision maker’s recommendations work within? (2 marks)  A six month timeline is reasonable to develop and execute a plan. A5: Who are the key people and/or groups that you need to consider in solving the problem? (2 marks)  Canadian Tire.  The marketing team  The financing team  Customer services  Consumers  Designers A6: Rank order any constraints or considerations that may limit the range of solutions i.e. cost, timeline? (2 marks) 1. Budget and time constraints 2. Managing customer expectations 3. Targeting specific customers [Not everyone has a car or house] 4. Catalogue design A7: Identify and rank order the KEY ISSUES that must be addressed to meet the Decision Maker’s goals. (5 marks) 1. Time and cost of digitalizing all products 2. Government laws 2 ALL SUBMISSIONS ARE TURNITIN ENABLED

BUSM35436 Business Cases Canadian Tire Retail 1 – Individual Case Analysis Template 1. The brand is capable of effectively reaching its target audience. 2. There is potential for expansion and meeting the diverse needs of customers (2) SWOT Analysis – Canadian Tire Retail Experience : Analysis : Strengths  Loyal customer base  Diverse range of products and services including automobile, financial, clothing, hardware and houseware  Canadian Tire Money Loyalty Program Weaknesses  Taking customers for granted  Failure to adapt to changing demographics and immigration trends Opportunities  Leveraging the position as Canada's leading retailer Threats  Customers unfamiliar with the Canadian Tire experience  Competition in the hardware sector. Conclusions (Rank Order): 1. Canadian Tire primarily focuses on its traditional consumer base, which consists of homeowners, car owners and hockey enthusiasts Implications (Rank Order): 1. The brand should consider the changing demographics in Canada, including different cultures and the increasing number of women (3) Target Group Analysis : Analysis : Customers who have grown up with Canadian Tire or the primary customer base. They typically own a car or house and enjoy seasonal activities representing loyal customers. The target customer group is different, including individuals in urban areas with greater integration and less traditional ties. Canadian Tire. They may not have houses, lawns or cars and have not grown up with the Canadian Tire experience. 4 ALL SUBMISSIONS ARE TURNITIN ENABLED

BUSM35436 Business Cases Canadian Tire Retail 1 – Individual Case Analysis Template Conclusions (Rank Order): 1. The target customers are ones who have grown up on Canadian Tire. Implications (Rank Order): 1. The messaging and brand positioning need to be adjusted based on the specific needs and preferences of customers in rural, suburban, and urban areas. (4) Competitive Analysis : Analysis : Canadian Tire competes in the big box retail industry and also competes with specialty stores in various sectors such as sports, fishing, hockey, hardware, automobile clothing and financial services. Conclusions (Rank Order): 1. Canadian Tire faces competition from big box retailers like Walmart 2. The brand also competes with specialty stores like Home Depot Implications (Rank Order): 1. Canadian Tire needs to offer a wide range of products to compete with large corporations, while also ensuring that each department and division can effectively compete with specialty retailers in their respective sectors. C. Alternative Solutions: Six alternatives are presented in the video case. Based on your case analysis, you may add additional alternatives if desired. 1. Not using photography or video on the website for the majority of the products and avoiding the costs in that case. There is an argument that it only adds value in certain areas. 2. Shoot it all internally to make sure that there is a consistent look and feel. 3. Select certain products that are very relevant to our customers or are high value in terms of revenue and profitability and represent a portion of the catalogue online and have the rest with text description. 4. Provide hypertext links to the manufacturer website and use their catalogue. 5. Ask vendors to submit both video and photography on our behalf. 6. Have consumers submit photography video on behalf of the organization. 5 ALL SUBMISSIONS ARE TURNITIN ENABLED

BUSM35436 Business Cases Canadian Tire Retail 1 – Individual Case Analysis Template  Allows customers to view and purchase high demand products  Text descriptions may not capture customers attention effectively Most likely outcome:  Cost savings for the company, but inconsistency may result in lost revenue for products with lower profitability On a scale of 1 to 10, how likely is this alternative to meet the stated Case Solution Goals? 4 Alternative 4: Provide hypertext links to the manufacturer website and use their catalogue. Pros:  Time saving for the company  Cost effective approach  Direct access for customers to the source Cons:  Navigating manufacturer websites may be challenging  Lack of control over product display descriptions and quality  Manufacturers may offer products not available at Canadian Tire Most likely outcome:  Canadian Tire will have limited control over the shopping experience, potentially leading customers to shop directly on manufacturers websites. On a scale of 1 to 10, how likely is this alternative to meet the stated Case Solution Goals? 4 Alternative 5: Ask vendors to submit both video and photography on our behalf. Pros:  cost savings  Minimal time investment for the company  Direct content from the source Cons:  Copyright concerns  Potential variations in picture quality and product descriptions Most likely outcome:  Picture and description quality may be inconsistent or subpar, leading to an unsatisfactory shopping experience. On a scale of 1 to 10, how likely is this alternative to meet the stated Case Solution Goals? 4 Alternative 6: Have consumers submit photography video on behalf of the organization. Pros:  interactive experience with customers  Cost effective solution  Acts as a marketing campaign. Cons:  Copyright concerns  Varying picture quality and product descriptions  Not all customers will participate, potentially resulting in an incomplete catalog Most likely outcome:  Customers can showcase their product usage, but the overall shopping experience may be lacking consistency in visually appealing pictures. 7 ALL SUBMISSIONS ARE TURNITIN ENABLED

BUSM35436 Business Cases Canadian Tire Retail 1 – Individual Case Analysis Template On a scale of 1 to 10, how likely is this alternative to meet the stated Case Solution Goals? 4 Alternative 7 (restate alternative): Pros:  Cons:  Most likely outcome:  On a scale of 1 to 10, how likely is this alternative to meet the stated Case Solution Goals? E. Recommendation – 20 Marks E1: Clearly state the alternative solution that you (as decision maker) plan to implement to meet the Decision Criteria/Goals. (5 marks)  Shoot all product visuals internally to maintain a consistent look and feel. Additionally, involve customers in the process by encouraging them to share pictures of their purchased products. E2: Present and defend the rationale for selecting your recommended solution, referring back to your Analysis of Alternatives and Decision Maker Goals - use this section to convince the reader why you chose each recommended solution. (10 marks)  The other alternatives are not optimal as they neglect the objective of incorporating pictures and videos in the catalogue, thereby failing to showcase all the products offered by Canadian Tire. By opting to shoot internally, a more consistent brand experience can be achieved across all platforms. Ensuring customers have a satisfying shopping experience while enabling the company to showcase its entire product range. This approach ensures accessibility to all products irrespective of their profitability. E3: Present any important assumptions and/or external references you made beyond the information provided within the case . (5 marks)  Canadian Tire continues to hold the top position as a leading retail store in Canada  Competitors have a stronger online presence  Not all of Canadian tires rewards programs were mentioned F. Implementation Plan – 10 Marks 8 ALL SUBMISSIONS ARE TURNITIN ENABLED