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Connect with Canada

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Learn why Direct Mail Marketing is a great way to connect with customers in Canada.

Learn why Direct Mail Marketing is a great way to connect with customers in Canada.

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  • 1. Agenda Canada and Canadians The Business Environment Canadian Direct Marketing Facts Canada Post Corporation
  • 2. Canada and Canadians Canada: The Land Canadians: The People Population Growth Immigration Trends Labor Market Income and Consumer Spending 3
  • 3. Nunavut Canada: 2nd Largest Country in the World Manitoba British Columbia Northwest Territories Yukon Territory Ontario Quebec Alberta Saskatchewan Nova Scotia Newfoundland and Labrador New Brunswick Prince Edward Island
  • 4. Pacific Standard Time Mountain Standard Time Central Standard Time Eastern Standard Time Atlantic Standard Time Newfoundland Standard Time Canada Spans 6 of the World’s 24 Time Zones
  • 5. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above January
  • 6. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above February
  • 7. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above March
  • 8. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above April
  • 9. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above May
  • 10. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above June
  • 11. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above July
  • 12. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above August
  • 13. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above September
  • 14. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above October
  • 15. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above November
  • 16. Canada Is Home to 5 Unique Climatic and Thermal Zones -40 and Below +30 and Above December
  • 17. Population Comparison: How Canada Measures Up to the US Canada United States 30.42 million 285.02 million
  • 18. Population Density Canada 5 people/sq. m. United States 48 people/sq. m. Statistics Canada US Census Bureau
  • 19. 75% of Canadians Live in 19 Areas of >100,000 20
  • 20. 80% of Canadians Live Within 60 Miles of the US Border 21
  • 21. 30% of Canadians Live in 3 Major Urban Centers… Statistics Canada Montreal QC 3.6 million Vancouver BC 2.1 million Toronto ON 5.1 million
  • 22. 30% of Canadians Live in 3 Major Urban Centers… Statistics Canada Montreal QC 3.6 million Vancouver BC 2.1 million Toronto ON 5.1 million Seattle WA 2.7 million Boston MA 4.5 million Miami FL 4.9 million
  • 23. Provincial and Regional Population Counts Territories 102,400 Prairies 4,411,300 British Columbia 4,146,600 Ontario 12,238,300 Quebec 7,487,200 Atlantic Provinces 2,344,000 Statistics Canada
  • 24. Population Distribution by Province and Region Territories 0.3% Prairies 16.8% British Columbia 13.1% Ontario 38.7% Quebec 23.7% Atlantic Provinces 7.4% Statistics Canada
  • 25. Home Language by Province and Region 90% 0.3% English French British Columbia Territories 88% 1.2% English French Atlantic Provinces 89% 8.6% English French 85% 2% English French Prairies 84% 3% English French Ontario Statistics Canada
  • 26. 23% of Canadians Speak French. The Majority of These People Live in Quebec. 90% 0.3% English French British Columbia Territories 88% 1.2% English French Atlantic Provinces 89% 8.6% English French 85% 2% English French Prairies 84% 3% English French Ontario Statistics Canada 10% 82% English French Quebec
  • 27. Average Family Size by Province and Region Territories 3.3 Ontario 2.7 Quebec 2.4 Atlantic Provinces 2.7 Statistics Canada British Columbia 2.5 Prairies 2.6
  • 28. 1950 1960 1970 1980 1990 2000 2004 33.8% 12.9% 7.1% 18.1% 15.3% Canada 13.6 million Canada 18.2 million Canada 21.5 million Canada 24.8 million Canada 28.0 million Canada 30.0 million Canada 32.5 million 0.92% National Population Growth Statistics Canada 18.5% 13.4% 11.4% 9.8% 14.6% USA 151.3 million USA 179.3 million USA 203.3 million USA 226.5 million USA 248.7 million USA 285.0 million USA 293.0 million 0.92%
  • 29. Provincial Population Growth Rate 1996–2001 Alberta B.C. Ontario Northwest Territories P.E.I. Yukon Territory Quebec Saskatchewan Manitoba Nova Scotia New Brunswick Newfoundland and Labrador 10.3% 4.9% 6.1% -5.8% 0.5% -6.8% 1.4% -1.1% 0.5% -0.1% -1.2% -7.0% Statistics Canada
  • 30. July 1, 1999 July 1, 2001 % change 0–14 years old 5,917,365 5,725,540 -3.8 15–24 4,121,648 4,009,140 -3.7 25–44 9,722,165 9,096,555 -6.5 45–64 6,939,496 7,287,305 +5.0 65+ 3,790,620 3,888,545 +2.5 Total 30,491,294 30,007,085 -2.6 Population by Age Group Statistics Canada
  • 31. Migration: Over 3,310,095 People Move Each Year in Canada Y2B 4E2 X1S 3J4 Statistics Canada
  • 32. Migration: Over 3,310,095 People Move Each Year in Canada Y2B 4E2 X1S 3J4 J7U 9E2 K8Y 2V5 Statistics Canada
  • 33. Canada Post Can Deliver Them to You at Their New Addresses Y2B 4E2 X1S 3J4 J7U 9E2 K8Y 2V5 K1H 8U3 S5K 7U2 Statistics Canada
  • 34. Canada Post Can Deliver Them to You at Their New Addresses Y2B 4E2 X1S 3J4 J7U 9E2 K8Y 2V5 K1H 8U3 S5K 7U2 E3B 6G2 A5R 6C3 Statistics Canada
  • 35. Canada Post Can Deliver Them to You at Their New Addresses Y2B 4E2 X1S 3J4 J7U 9E2 K8Y 2V5 K1H 8U3 S5K 7U2 E3B 6G2 A5R 6C3 Statistics Canada
  • 36. An Aging Population • The number of people aged 65 and over in Canada is forecast to increase by 100% in the next 25 years (1 in 5 Canadians will be 65+). • What kinds of products and services will they need? Can you meet those needs? – COMPARISON: The number of people in the US aged 65 or over is projected to increase by 80% during the same period. Statistics Canada US Census Bureau
  • 37. Age Profiles (%) Statistics Canada US Census Bureau Canada — Age Profiles United States — Age Profiles 2001 2006 2001 2006 2001 2006 2001 2006 2001 2006 2000 2006 2000 2006 2000 2006 2000 2006 2000 2006 Under 19 20–34 35–44 45–64 Over 65 Under 19 20–34 35–44 45–64 Over 65 21 20 17 29 13 24 26 16 12 22 25 20 28 12 26 16 20 13 25 15
  • 38. Educational Attainment 1999 1999 1999 1999 High School Post-Secondary High School Post-Secondary Education Education Education Education Statistics Canada US Census Bureau (Note: persons aged 15 or over) 89% 89% 51% 52% 89% 88% 47% 48% Female Male Female Male Female Male Female Male Canada United States
  • 39. Average Family Income British Columbia $64,821 Alberta $71,399 Saskatchewan $57,005 Manitoba $59,005 Ontario $73,849 Quebec $59,297 Newfoundland and Labrador $49,679 New Brunswick $52,704 Nova Scotia $54,786 P.E.I. $53,958 Statistics Canada Canadian National Average: $66,160 Northwest Territories $75,102 Nunavut $52,624 Yukon Territory $69,564
  • 40. Share of the Household Wallet ($ Annually) Food $6,684 Shelter $11,204 Household operation $2,783 Household furnishings $1,793 Clothing $2,450 Transportation $8,431 Health care $1,590 Personal care $829 Recreation $3,537 Reading material $285 Education $926 Tobacco and alcohol $1,478 Games of chance $313 Miscellaneous $901 Statistics Canada
  • 41. Summing It Up • 80% of Canadians live within 60 miles of the US border • 30% of Canadians live in three urban areas (Vancouver, Toronto and Montreal) • 23% of Canadians list French as their mother tongue (most of them live in the province of Quebec) • High average family income • Low unemployment
  • 42. Economic Background A Vibrant Market Retail Spending Use of Credit and Debit Cards Canadians and the Internet Business and the Internet in Canada 43
  • 43. Regulatory and Policy Framework FEDERAL PROVINCIAL PARLIAMENT LEGISLATIVE ASSEMBLIES Canada is a confederation of provinces and territories with a Parliamentary Democracy.
  • 44. Germany -0.1% Canada 1.8% Growth in GDP of the G7 Nations, 2002–2003 USA 2.9% France 0.1% Italy 0.3% United Kingdom 2.2% Japan 2.7% Statistics Canada
  • 45. Same Currency Denominations As in the US Canadian Denominations Quarter Dime Nickel Penny United States Denominations Quarter Dime Nickel Penny
  • 46. Canada: Where $10 Is More Than $10 • The strength of the US currency means that US$10 buys you approximately $13.50 worth of goods and services in Canada. Approximate rate of exchange — July 2004
  • 47. Annual Retail Sales of Over $277 Billion • Retail sales per capita Canada United States $10,024 $11,254
  • 48. Credit Cards • Over 50.4 million credit cards in circulation. Canadian Bankers Association
  • 49. The INTERAC™ Debit Card Payment System • Canadians are voracious debit card users. • INTERAC transactions increased by 190% from 1998–2003. • INTERAC has now surpassed cash as the preferred method of payment for Canadians. INTERAC Organization, 2001
  • 50. Canadians and the Internet Percentage of Households Online Household Internet Penetration Business and the Internet in Canada 51
  • 51. Percentage of Households Online • An estimated 18.6 million people, or 62% of those aged 15 and over, used the Internet in 2002. 1998 35.9% 1999 41.8% 2000 51.3% 2001 60.2% 2002 61.6% Statistics Canada
  • 52. Canada Is a Wired Nation, from Coast to Coast. Household Internet Penetration: 2000 British Columbia 56% Alberta 59% P.E.I. 51% Newfoundland and Labrador 45% Nova Scotia 52%Saskatchewan 47% Manitoba 50% Quebec 44% Ontario 54% New Brunswick 45% Statistics Canada
  • 53. Canada Is a Wired Nation, from Coast to Coast. Household Internet Penetration: 2002 • 71% of Internet households have at least one person who regularly uses the Internet from home a minimum of seven times a week. British Columbia 66% +10% Alberta 64% +5% Saskatchewan 58% +11% Manitoba 60% +11% Ontario 67% +13% Quebec 53% +9% P.E.I. 54% +3% New Brunswick 49% +4% Nova Scotia 58% +6% Newfoundland and Labrador 51% +6% Statistics Canada
  • 54. Business and the Internet in Canada: The Outlook Is Good • $19.1 billion in e-commerce customer orders in 2003.* • Up 40%, following a 27% jump in 2002.* • B2B accounted for 93% of Canadian e-commerce revenue in 2003. • 34% of Canadian enterprises had a Web site in 2003 — they accounted for 85% of all gross business income in Canada. * Canadian Bankers Association
  • 55. * emarketer, April 2004 ** International Data Corporation (IDC) March 2003 *** Statistics Canada 2003 Business and the Internet in Canada: The Outlook Is Good • 1 in 3* Canadian Internet users have purchased online. • 6.2 million online buyers in 2003.* • Forecast to reach 11.6 million by 2006.** • From 1999 to 2002 the number of Canadian households buying online increased from 800 thousand to 2.8 million.***
  • 56. Business and the Internet in Canada: The Outlook Is Good • 82% of Canadian online shoppers would prefer to buy from Canadian sites BUT nearly half of their purchases are from sites in the US or abroad. • Reasons why:* – better selection and price – more sites – higher quality goods and services • DIRECT MARKETERS TAKE NOTE: Canadians who purchase through mail order, telephone or catalogues are also MOST LIKELY to shop online.** * Deloitte & Touche and Angus Reid ** CANOE/Pllara Research
  • 57. Summing It Up • US$10 gets you approximately $13.50 in Canada.* • Canada is your largest trading partner already.* • More than 64% of Canadian households are wired.** • Forecast for 11.6 million Internet buyers by 2006.*** • Canadian online shoppers find US e-commerce Web sites offer better selection, price and quality. * Canadian Bankers Association ** emarketer, April 2004 *** International Data Corporation (IDC) March 2003
  • 58. Ad Spending and Sales Direct Marketing in Canada Sales Due to Direct Response Marketing Forecast Direct Mail Volumes Canadians Embrace Direct Marketing 59
  • 59. Share of Ad Spending and Sales • Share of Ad Spending • Sales by Major Market Business Segment 47.1% Business Segment 43.4% Consumer Segment 56.6% Consumer Segment 52.9%
  • 60. $8.1 $8.8 $3.8 $4.3 $9.4 $9.9 $12.9 $4.1 $4.4 $4.6 $6.2$4.7 $4.9 $5.2 $6.7 Historical Ad Spending by Major Market ($ Billions) 13 11 9 7 5 3 1 % Growth % Growth 1995–2000 2000–2005 Projected Total Consumer Business 1995 1999 2000 2001 2005 2.8% Total 2.9% Consumer 2.7% Business 6.6% Total 6.1% Consumer 7.2% Business
  • 61. $43.8 $46.9 $18.6 $25.2 $51.2 $55.3 $81.7 $19.9 $22.3 $24.4 $37.7$26.9 $28.9 $30.9 $44.1 Total Sales Due to Direct Response Advertising by Major Market ($ Billions) 85 75 65 55 45 35 25 15 5 % Growth % Growth 1995–2000 2000–2005 Projected Total Consumer Business 1995 1999 2000 2001 2005 3.2% Total 2.8% Consumer 3.7% Business 9.8% Total 8.8% Consumer 11.1% Business
  • 62. Total Canadian Ad Spending by Medium (millions of Canadian dollars) Medium 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Change Television 1,707 1,771 1,850 1,982 2,103 2,312 2,387 2,456 2,561 2,612 53% Daily Newspaper 1,863 1,832 1,900 1,960 2,304 2,379 2,428 2,581 2,501 2,510 35% Radio 722 741 748 792 856 930 965 1,015 1,063 1,094 52% General Magazines 339 327 316 318 347 451 460 514 541 558 64% Out-of-Home 104 121 142 165 177 219 243 263 281 273 162% Catalogue/Direct Mail 984 1,071 991 1,110 1,168 1,251 1,190 1,254 1,489 1,511 54% Internet – – – – 10 25 56 110 97 117 117% Yellow Pages 855 847 864 892 899 935 975 1,027 1,045 1,060 23% Miscellaneous 844 845 855 878 934 1,090 1,119 1,165 1,177 1,194 41% Total Advertising 7,418 7,556 7,666 8,097 8,798 9,591 9,822 10,384 10,755 10,928 47% Television: Statistics Canada, CRTC, TVB estimates; Daily Newspaper: CNA for Total, estimates for breakdown; Radio: Statistics Canada, CRTC; General Magazine: Magazines Canada (note: the method for estimating Magazine revenue changed starting with the 1998 figure); Outdoor: ACN; Direct Mail: Canada Post; Internet: IAB; Yellow Pages: TeleDirect; Miscellaneous: includes estimates for Community Newspaper, Trade & Other Print; Population: Statistics Canada Mid-Year Population by Year; Note: Some figures may differ from previous charts due to updating.
  • 63. Direct Mail 13.8% Television 23.9% Newspaper 22.9% Radio 10.0% Magazine 5.1% Internet 1.0% Out-of-Home 2.5% Yellow Pages 9.7% Other 10.9% Share of Ad Spending by Medium — 2000 Television: Statistics Canada, CRTC, TVB estimates; Daily Newspaper: CNA for Total, estimates for breakdown; Radio: Statistics Canada, CRTC; General Magazine: Magazines Canada (note: the method for estimating Magazine revenue changed starting with the 1998 figure); Outdoor: ACN; Direct Mail: Canada Post; Internet: IAB; Yellow Pages: TeleDirect; Miscellaneous: includes estimates for Community Newspaper, Trade & Other Print; Population: Statistics Canada Mid-Year Population by Year; Note: Some figures may differ from previous charts due to updating.
  • 64. How Canadians View Their Mail • Research reveals that Canadians like to receive mail.* • 84% of Canadians read all of their mail.** • Attention is given to 74% of direct mail.*** * Mark Lovell Focus Groups, 2000 ** PMB, 1999 *** CMA, 2000
  • 65. Canadians Embrace Direct Response Advertising • In Canada, total sales due to Direct Response Advertising are expected to increase to $81.7 billion over the next 5 years. • In 2000, sales generated specifically through addressed advertising mail totaled $16 billion. This is forecast to rise 63% to $26.2 billion in 2005.
  • 66. Canadians Embrace Direct Response Advertising • Canadians prefer to pay for goods in Canadian currency and like Canadian-oriented customer support. • Offers and promotional materials that address Canadian cultural issues and concerns are the most effective.
  • 67. Canadians Embrace Direct Response Advertising • Direct mail represents 34% of purchases from all direct initiatives.* • On average, Canadian response rates to direct marketing are 25% higher than those in the US.** * CMA ** Statistics Canada
  • 68. Direct Mail Saturation Rate in Canada • Addressed Admail volume in 2000: 1.38 billion • Number of Canadian Households: 11.3 million • Average number of pieces per week: 2.6 Calculation: (addressed admail volume ÷ number of households) ÷ 52 weeks
  • 69. Summing It Up • Current Direct Marketing market is valued at $16 billion. • Sales from all direct response advertising channels is projected to be $81 billion by 2005. • Canadian DM response rates tend to be 25% higher than in the US. • Canada is under-served in DM: Average only 2.6 addressed DM pieces per week.
  • 70. The Canadian Postal Code Solutions Based Around You Communications Marketing and Selling Shipping and Delivery Supply Chain Management 71
  • 71. Postal Code Anatomy
  • 72. Postal Code Anatomy Province
  • 73. Postal Code Anatomy City or Rural Designator
  • 74. Postal Code Anatomy Postal Station or County
  • 75. Postal Code Anatomy Local Delivery Unit or Town
  • 76. Slight Differences in Terminology USA Canada State Province CASS SERP SCF FSA Zip+4 LDU First Class Mail Lettermail Periodicals Publications Mail Standard Mail Admail DMM Postal Guide Carrier Route Letter Carrier Walk Zip Code Postal Code USPS Canada Post Corporation
  • 77. Solutions Based Around You • Canada Post offers innovative solutions to meet every business need.
  • 78. Communications • We can keep you connected with your customers across Canada. From physical and electronic services, to hybrid solutions combining elements of both, we offer a range of services to meet most communications needs.
  • 79. Marketing and Selling • Obtaining sales leads, increasing retail traffic, selling online — whatever your objectives, Canada Post has the services to help you reach them. For one-to-one marketing to targeted geographic or psychographic coverage, we can help you generate response.
  • 80. Shipping and Delivery • Across towns, the provinces or the country, regular speed or courier service, documents or packages, Canada Post provides a complete set of smart shipping services to get your deliveries there on-time and at the right price.
  • 81. Supply Chain Management • For order management and fulfillment, inbound and outbound transportation, reverse logistics and systems integration, Canada Post has the expertise and infrastructure to design and provide supply chain services to companies wishing to enter the Canadian marketplace without making large capital expenditures.
  • 82. Canada Post Borderfree • Canada Post Borderfree is a partnership between Canada Post Corporation and Borderfree Ltd. which provides US e-tailers and catalogers with solutions for turn-key international expansion. • Borderfree offers a full range of industry leading marketing, technology, logistics and financial solutions for US companies looking to expand their business without significant investments of time, resource or capital. • For more information on Canada Post Borderfree visit http://www.borderfree.com
  • 83. Canada Post’s Solutions at Work • Business Goal: Prospect for leads in Canada Strategy: • Use GeoPost+, Canada Post’s FREE psycho-demographic analysis tool, to identify neighborhoods that match your customer profile (i.e. Age, income, presence of children, and more) • Distribute lead generation mail piece to targeted neighbourhoods using Unaddressed Admail (postage rates as low as US$.06 each)
  • 84. Canada Post’s Solutions at Work Strategy: • Use Business Reply Mail at a Canadian address (PO Box) to return leads • Use the leads to send personalized direct mail pieces to prospects using Addressed Admail or AdCard for Addressed Admail • Use Business Reply Mail to facilitate orders
  • 85. Canada Post’s Solutions at Work Strategy: • Fulfill orders using a Canada Post Shipping & Delivery solution (e.g. Expedited Parcel, Priority Courier, Xpresspost, Purolator or Regular Parcel) • Manage product returns using Canada Post’s Merchandise Return Service (MRS)
  • 86. How Canada Post Can Help You Connect With Canadians Your Canada Post International Sales Team can: • Provide you with secondary demographic and socio-economic research data about Canadians – Statistics Canada – Print Measurement Bureau – AC Nielsen data – Primary research conducted by Canada Post — including case studies • Assist with Market Entry Plans • Offer a network of International Sales Managers
  • 87. How Canada Post Can Help You Connect With Canadians Our network of International Sales Managers will help you with suggestions on how to find Canadian-based business partners: • Mailing list brokers • Lettershops • Direct marketing agencies and consultants • Printers and other suppliers
  • 88. How Canada Post Can Help You Connect With Canadians Let us be your guides to navigating the waters: • Consumer protection regulations • Tax legislation • Customs procedures
  • 89. Conclusion Concluding Thoughts Contact Information 90
  • 90. Concluding Thoughts Most of Canada is within a 24-hour trucking distance of the US.
  • 91. Concluding Thoughts 80% of all Canadians live within 60 miles of the US border.
  • 92. Concluding Thoughts • Easy access. Close by. • Barrier-free geography. • And a friendly neighbor.
  • 93. Concluding Thoughts Canadian DM response rates tend to be 25% higher than those in the US.
  • 94. Concluding Thoughts Canadians enjoy dealing with American organizations.
  • 95. Concluding Thoughts One-third of Canadians can be reached in 3 major urban centers.
  • 96. Concluding Thoughts Price your product in Canadian currency and offer fulfillment and customer support services with a Canadian flavor.
  • 97. Concluding Thoughts Canada Post ships more products that have been ordered online than any other Canadian shipper.
  • 98. Concluding Thoughts Direct Marketing is THE most effective way to sell in Canada.
  • 99. Concluding Thoughts Canada Post. From any US organization to any customer in Canada.
  • 100. Connecting With Canadians For more information please call 1-877-617-7780 or your Canada Post Account Executive www.canadapost.ca 101