Canadian Tire is planning to make a market into Japan, which located in the continent of Asia. There are many similarities between Japan and Canada. First, both nations pride themselves on their politeness, this is reflected in their massive respect in law and order. Second, Culture from both countries is also heavily influenced by American pop culture. However, some of the challenges exist. One of the significant difference is that the language, Japanese always as the first language In Japan, while English and French be the official languages in Canada. Also, the education systems are different, for example, High schools in Japan require passing an entrance exam to attend, but the education in Canada does not need. 2. Prepare a PEST Analysis of the new market. PForm of government Political structureConflict with nature sourceCurrent statusEGDP sizeUnemployment rateTaxBusiness investmentSCulture & ReligionEducation LanguageMedical system TInternetMobile phoneAutomationRoad constructionPolitical Forces: 1. Form of government: Japan is the system of constitutional monarchy, but the Emperor is only a ceremonial figurehead and his powers are very limited. 2. Political structure: Japan is the most developed country in Asia. Meiji rulers accepted the concept of a free market economy and adopted British and North American forms of free-enterprise capitalism. 3. Conflict with nature resource: Japan has serious argument with Russia, South Korea, China, and Taiwan which disputes for resources, such as natural gas, oils, and further marine resources. 4. Current status: Japan is a member state of the United Nations and a non-permanent member of the Security Council. Also as an economic power, Japan is a major donor in international aid and development. Economic Forces: 1. GDP size: The decline in Japan’s population makes it crucial to measure GDP and growth relative to the number of workers, it can be seen between 2012 and 2016 in Japan ( 6.203 trillion USD and 4.884 trillion USD respectively) 2. Unemployment rate: Japan’s unemployment rate is on the rise (5%). This is a low number compared to other countries but as for the Japanese that it is a serious issue. 3. Tax: Corporation tax in Japan is 25.5% but is getting lower due to Abenomics. In addition, Foreign companies in Japan: only for income generated in Japan. 4. Business investment: Setting up a business is straightforward and no any additional conditions for foreigners. The government encourages entrepreneurs to invest in Japan which makes a policy to appeal foreigners is the lower cost of setting up a business. Social Forces: 1. Culture & Religion: Japanese combine elements of various religion, and Japan gives full freedom of religious which allowing minority religions such as Christianity, Islam and Sikhism and so on. 2. Education: Japan’s education system played a primary part in Japan’s recovery and rapid economic growth. Education is compulsory under the elementary levels. 3. Language: Japanese is the official language of Japan. All of the population from Japan need to speaks Japanese in their first language. 4. Medical system: The Health care system in Japan provides healthcare services, the patient only need to paid 30% of medical fee, and the rest of expense would be paid by the government. Also personal medical services is offered through a universal health care insurance system.Technologic Forces: 1. Internet: Japan had exceed 28 million broadband lines in place, making it the third largest broadband country in the world after the US and China. 2. Mobile phone: Japan’s telecommunications sector is one of the most active markets in the world. As the rising tendency in the development of the mobile system. 3. Automation: Most of the pattern are automated. For example, Hospitals, restaurants, offices, airports, factories and all the other facilities are highly efficient and rapid because of the use of high tech automated system. 4. Road construction: The main task of JH, it is committed to the construction and operation of toll highways nationwide, including expressways. JH has constructed 7,200 km of expressways and approximately 1,200,000 km of general roads, and is now constructing 2,100 km nationwide. 3. Prepare a SWOT Analysis.SVarious categoriesSelling gasoline Preferential policyOnline shoppingCar serviceWNot very famousLacking publicityThe pricesDistributionCultural diverseOFranchiseSale productsDifferent kinds of productAdvertisementTechnology TThe Home DepotServiceQuality of productsLabour costPriceStrengths: 1. Various categories: The Canadian tire offer a large range of goods that necessity for everyday life, includes clothing, petroleum and equipments. 2. Selling gasoline: The world’s first hard goods retailer to begin selling gasoline at their stores as a means of driving customer traffic. 3. Preferential policy: The company always provide some attractive promotional offers for customers. 4. Online shopping: The company offers products through the Canadian Tire website and make convenience for the customers. 5. Car service: The company offers a chain of automobile parts and professional automotive installers.Weaknesses: 1. Not very famous: Not known globally compared to some other brands. 2. Lacking publicly: The company have less advertisement in spreading. 3. The prices: Prices for their goods and services have gone up which leads to reduction in customers. 4. Distribution: The company only distributed in Canada. 5. Cultural diverse: The company have failed to establish new grounds with the now Culturally diverse country that Canada is.Opportunities: 1. Franchise: Increase company franchising which in order to enhance the company’s prestige. 2. Sale products: The income levels of many Japanese is on the rise. Higher income levels means many people will buy more retail products and services, impacting increased sales and profits. 3. Different kinds of products: Canadian Tire can exploit by diversifying the product to suit different demands for customers. 4. Advertisement: The company should tend to conduct propaganda about their own products and services, and get brand awareness. 5. Technology: Japanese culture is very technology centered. They really need some advanced technologies to support their operate.Threats: 1. The Home Depot: The Home Depot is the main threat for Canadian Tire, because they offer almost the same products with quality and perfect service. 2.Service: Many competing retail stores provide better services and customer satisfaction. 3. Quality of products: Some customers complain some quality of products. It is a alarm bell for checking the product quality. 4. Labour cost: Large labour cost in Japan makes the company need to pay more wages or add produce original prices to balance. 5. Price: Increasing costs of raw materials, which may potentially affect profit margins. 4. Based on your PEST and SWOT, what are the 2 main opportunities and 2 main threats present in the market?2 main opportunitiesJapan is a technology which allows for Canadian Tire to introduce new forms of technology in the home care department that the Japanese may not have been aware too. They are very old-fashioned when it comes to labor work and architecture, resulting in a perfect market for Canadian Tire to enter in to.Canadian Tire should exploit more products to satisfy different demands of customers in Japan. 2 main threatsJapan is located at the junction of the Asia-Europe Plate and the Pacific Plate, for example, the Pacific Rim Seismic Belt, with volcanoes and frequent earthquakes. As for the result, it may cause shop damaged and financial loss.Because the labor cost in Japan is very expensive, while the company needs to pay the higher fee for employ staffs and manufacturing cost compare with other countries to open the shops.Part B – Marketing Plan5. Describe what competitive advantage you will utilize? Explain how this compares to that of your competition. There are many competitive advantage in The Canadian Tire, the company offer a large range of goods that necessity for everyday life than another shops, such as clothing, petroleum and equipments. Also, it provide comprehensive car maintenance service and quality then develop brand loyalty brand from customers. 6. Describe your product’s positioning. How will you position it to be successful? Justify your choice. The Canadian Tire provides the variety of products and services for the jobs and joys of everyday life in Canada. By collecting the product in one place, it is easier for the customer to get everyday life things without searching other stores. In fact, many stores are only focusing on part of products, but not all of that. The consequence, the Canadian Tires provide more convenience ways and cheaper prices. Those reasons can support the position to be successful. 7. Describe your target customer using demographics, psychographics, geographics and behaviours. Try to be as detailed as possible. The target demographic is the average Japanese family. As for the price, the majority of people can afford. Japan currently has a decreasing trend in the population, which the population shrank by almost a million over the period of 2010–2015. The 2010 census shows 93.5%of the total Japanese population live in cities, the most population are concentration in Tokyo about 38.001 million. For the behavior, the brand quality and service expectations can be attracted to the Japanese customers. Consumers in Japan value brand information, service, delivery, packaging and advertising as important factors in assessing quality & in making purchase decisions and brand orientation is important as it conveys a message of social status and insurance of quality. 8. Marketing Mix – Product. Describe any product modifications that you feel are needed to make the product successful internationally. Justify your reasoning. The label of product: The product needs to make bilingual or more language on the label which in order to let people can understand the product who comes from different countries. The package of product: The product can change or add some special mascots or country culture in external packing in order to attract people in different places. The color of product: The color of produce should avoid using the elements of green and purpose, because the people from Japan thinks that purpose represents the sad tone and green represents the ominous things would be happened. 9. Marketing Mix – Price. What does the product sell for in Canada? What are the prices of competitors’ goods? The Canadian Tire Corporation is a canadian retail company which sells a wide range of automotive, hardware, sports and leisure, and home products. Also, some stores also sell toys and food products. The prices range of competitors’ goods are similar with The Canadian Tire. 10. Market Mix- Price. What price will you charge for your product in the market? Justify your reasoning. Describe any factors that affected your decision to charge the price that you did. To be successful business in Japan, the price must charge a premium above the normal prices than Canada. First, some of product components need to be sent by transportation, it need to expend a large money in the process. Second, the labor cost in Japan is very expensive, so it need to improve the price to balance. Third, the economy of Japan is a highly developed and market-oriented which it is the third-largest in the world by nominal GDP and the fourth-largest by purchasing power parity (PPP). The japanese can afford a high price in general. 11. Marketing Mix – Place. What “place” strategy will you use? Where will customers get your product? Explain. I prefer to use the decentralized strategy. Since the marketing strategy through establishing a manufacturing facility in another country or hires a sales force there and even licenses the brand to a local manufacturer instead of manufacturing and marketing all in one place. The method makes more convenience and easy for managing and operating the company. The customers can get products in the local stores or post from the company. 12. Marketing Mix – Place. What “place” strategy will you use? How will customers get your product? Describe your method of distribution. How will this impact your cost? Like I mentioned in question 11, I would like to choose the decentralized strategy. Establishing the facility in another country, the shipping cost is decreasing. Also, the import tariffs are disappeared. As the result, the cost can the corresponding reduction by these factors.13. Marketing Mix – Promotion. What “promotional” tools will you use? ExplainAdvertising: Through advertisement in magazines, trade journals and newspapers, radio and TV announcements and public billboards, in order to let more and more people get to know the company. Sales promotions: In-store demonstrations and price discount ( such as 50% off, buy one get one half) which to attract people visit the company. Direct marketing: Through telephone call that asks the receiver to take action, such as order the product, introduce to someone which to spread the market. 15. First, I choose the Japan night to be the background of the advertisement in order to attract more people’s eyes. Second, the telecrean shows ” Japan today” which represents that the Canadian Tire is staring business now. Third, I put the name of the company and translate into Japanese to let more people understand the store. Fourth, I post the privilege policy ( 30% off ) into advertisement which in order to attract the customers go to store to look around under the curiosity. I think that it can get the greatest effects in the market if I post it in public.